Document:

<PAGE>
INFORMATION DENOTED BY [*] HEREIN HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. THIS INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

                            SEVENTEENTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Seventeenth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of March 31, 2004 by First NLC Financial Services, LLC
and NLC Financial Services, LLC (collectively, the "Company"), and Washington
Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, promise
and agree as follows:

     1. Amendment. The Loan Agreement is amended and modified in the following
manner:

          (a) Commitment. Section 2.1(a) of the Loan Agreement is hereby amended
and restated in its entirety as follows:

          (a)  Subject to the terms and conditions of this Agreement and
               provided that no Default or Event of Default has occurred and is
               continuing, Lender agrees, from time to time, during the period
               from the date hereof to and including the Termination Date, to
               make Advances to Company, provided the sum of the total aggregate
               principal amount outstanding at any one time of all such Advances
               shall not exceed $56,000,000; provided, however, commencing March
               31, 2004 and continuing through and including May 31, 2004, the
               sum of the total aggregate principal amount outstanding at any
               one time of all such Advances shall not exceed $84,000,000. The
               obligation of Lender to make Advances hereunder up to such limit
               is hereinafter referred to as the "Commitment." Within the
               Commitment, Company may borrow, repay, and reborrow. All Advances
               under this Agreement shall constitute a single indebtedness, and
               all of the Collateral shall be security for the Note and for the
               performance of all the Obligations of Company to Lender.

<PAGE>

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b) Execution and delivery by Company of an Amended and Restated
Promissory Note in the original principal amount of $84,000,000 ("Note"); and

          (c) Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          (b) The execution and delivery by Company of this Amendment and the
Note and the performance of the transactions herein contemplated (i) are and
will be within such party's powers, (ii) have been authorized by all necessary
organizational action, and (iii) are not and will not be in contravention of any
order of any court or other agency of government, of law or any other indenture,
agreement or undertaking to which Company is a party or by which the property of
Company is bound, or be in conflict with, result in a breach of, or constitute
(with due notice and/or lapse of time) a default under any such indenture,
agreement or undertaking or result in the imposition of any lien, charge or
encumbrance of any nature on any of the properties of Company.

          (c) This Amendment, the Note and any assignment, instrument, document,
or agreement executed and delivered in connection herewith, will be valid,
binding, and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company RELEASES, RELINQUISHES
and forever DISCHARGES Lender, and its predecessors, successors, assigns,
shareholders, principals, parents, subsidiaries, agents, officers, directors,
employees, attorneys and representatives (collectively, the "Released Parties"),
of and from any and all claims, demands, actions and causes of action of any and
every

                                       2

<PAGE>

kind or character, whether known or unknown, present or future, which Company
has, or may have against Released Parties, arising out of or with respect to any
and all transactions relating to the Loan Agreement, the Note, and the other
Existing Loan Documents occurring prior to the date hereof, including any other
loss, expense and/or detriment, of any kind or character, growing out of or in
any way connected with or in any way resulting from the acts, actions or
omissions of the Released Parties, and including any loss, cost or damage in
connection with any breach of fiduciary duty, breach of any duty of fair
dealing, breach of competence, breach of funding commitment, undue influence,
duress, economic coercion, conflict of interest, negligence, bad faith,
malpractice, violations of the Racketeer Influence and Corrupt Organizations
Act, intentional or negligent infliction of emotional or mental distress,
tortious interference with corporate governments or prospective business
advantage, tortious interference with contractual relations, breach of contract,
deceptive trade practices, libel, slander, conspiracy, the charging, contracting
for, taking, reserving, collecting or receiving of interest in excess of the
highest lawful rate applicable to the Existing Loan Documents (i.e., usury), any
violations of federal or state law, any violations of federal or state banking
rules, laws or regulations, including, but not limited to, any violations of
Regulation B, Equal Credit Opportunity, bank tying act claims or any violation
of federal antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are ratified and confirmed and continue unchanged and in full force
and effect. All references to the Loan Agreement shall mean the Loan Agreement
as modified by this Amendment.

     7. Governing Law. This Amendment, and all matters arising out of or related
to this Amendment, shall be governed by, construed and enforced in accordance
with the laws of the State of Texas, excluding its conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                       3

<PAGE>

     Dated the date and year first written above.

COMPANY:                               FIRST NLC FINANCIAL SERVICES, LLC

                                       By: /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                       Name: Jeffrey M. Henschel
                                             -----------------------------------
                                       Title: President COO
                                              ----------------------------------

                                       NLC FINANCIAL SERVICES, LLC

                                       By: /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                       Name: Jeffrey M. Henschel
                                             -----------------------------------
                                       Title: President COO
                                              ----------------------------------

LENDER:                                WASHINGTON MUTUAL BANK, FA

                                       By: /s/ Dominic J. Aprile
                                           -------------------------------------
                                       Name: Dominic J. Aprile
                                             -----------------------------------
                                       Title: Vice President
                                              ----------------------------------

                   [SIGNATURE PAGE TO SEVENTEENTH AMENDMENT]

                                      S-1

<PAGE>

                             SIXTEENTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Sixteenth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of March 18, 2004 by First NLC Financial Services, LLC
and NLC Financial Services, LLC (collectively, the "Company"), and Washington
Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, promise
and agree as follows:

     1. Amendment. The Loan Agreement is amended and modified in the following
manner:

          (a) Commitment. Section 2.1(a) of the Loan Agreement is hereby amended
and restated in its entirety as follows:

          (a)  Subject to the terms and conditions of this Agreement and
               provided that no Default or Event of Default has occurred and is
               continuing, Lender agrees, from time to time, during the period
               from the date hereof to and including the Termination Date, to
               make Advances to Company, provided the sum of the total aggregate
               principal amount outstanding at any one time of all such Advances
               shall not exceed $56,000,000; provided, however, commencing March
               18, 2004 and continuing through and including March 25, 2004, the
               sum of the total aggregate principal amount outstanding at any
               one time of all such Advances shall not exceed $66,000,000. The
               obligation of Lender to make Advances hereunder up to such limit
               is hereinafter referred to as the "Commitment." Within the
               Commitment, Company may borrow, repay, and reborrow. All Advances
               under this Agreement shall constitute a single indebtedness, and
               all of the Collateral shall be security for the Note and for the
               performance of all the Obligations of Company to Lender.

<PAGE>

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b) Execution and delivery by Company of an Amended and Restated
Promissory Note in the original principal amount of $66,000,000 ("Note"); and

          (c) Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          (b) The execution and delivery by Company of this Amendment and the
Note and the performance of the transactions herein contemplated (i) are and
will be within such party's powers, (ii) have been authorized by all necessary
organizational action, and (iii) are not and will not be in contravention of any
order of any court or other agency of government, of law or any other indenture,
agreement or undertaking to which Company is a party or by which the property of
Company is bound, or be in conflict with, result in a breach of, or constitute
(with due notice and/or lapse of time) a default under any such indenture,
agreement or undertaking or result in the imposition of any lien, charge or
encumbrance of any nature on any of the properties of Company.

          (c) This Amendment, the Note and any assignment, instrument, document,
or agreement executed and delivered in connection herewith, will be valid,
binding, and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company RELEASES, RELINQUISHES
and forever DISCHARGES Lender, and its predecessors, successors, assigns,
shareholders, principals, parents, subsidiaries, agents, officers, directors,
employees, attorneys and representatives (collectively, the "Released Parties"),
of and from any and all claims, demands, actions and causes of action of any and
every

                                       2

<PAGE>

kind or character, whether known or unknown, present or future, which Company
has, or may have against Released Parties, arising out of or with respect to any
and all transactions relating to the Loan Agreement, the Note, and the other
Existing Loan Documents occurring prior to the date hereof, including any other
loss, expense and/or detriment, of any kind or character, growing out of or in
any way connected with or in any way resulting from the acts, actions or
omissions of the Released Parties, and including any loss, cost or damage in
connection with any breach of fiduciary duty, breach of any duty of fair
dealing, breach of competence, breach of funding commitment, undue influence,
duress, economic coercion, conflict of interest, negligence, bad faith,
malpractice, violations of the Racketeer Influence and Corrupt Organizations
Act, intentional or negligent infliction of emotional or mental distress,
tortious interference with corporate governments or prospective business
advantage, tortious interference with contractual relations, breach of contract,
deceptive trade practices, libel, slander, conspiracy, the charging, contracting
for, taking, reserving, collecting or receiving of interest in excess of the
highest lawful rate applicable to the Existing Loan Documents (i.e., usury), any
violations of federal or state law, any violations of federal or state banking
rules, laws or regulations, including, but not limited to, any violations of
Regulation B, Equal Credit Opportunity, bank tying act claims or any violation
of federal antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are ratified and confirmed and continue unchanged and in full force
and effect. All references to the Loan Agreement shall mean the Loan Agreement
as modified by this Amendment.

     7. Governing Law. This Amendment, and all matters arising out of or related
to this Amendment, shall be governed by, construed and enforced in accordance
with the laws of the State of Texas, excluding its conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                       3

<PAGE>

     Dated the date and year first written above

COMPANY:                                FIRST NLC FINANCIAL SERVICES, LLC

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: JEFFREY M. HENSCHEL
                                        Title: PRESIDENT COO

                                        NLC FINANCIAL SERVICES, LLC

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: JEFFREY M. HENSCHEL
                                        Title: PRESIDENT COO

LENDER:                                 WASHINGTON MUTUAL BANK, FA

                                        By: /s/ Dominic J. Aprile VP
                                            ------------------------------------
                                        Name: DOMINIC J. APRILE
                                        Title: VICE PRESIDENT

                     [SIGNATURE PAGE TO SIXTEENTH AMENDMENT]

                                       S-l

<PAGE>

                             FIFTEENTH AMENDMENT TO
                    WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Fifteenth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of February 17, 2004 by First NLC Financial Services,
LLC and NLC Financial Services, LLC (collectively, the "Company"), and
Washington Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, promise
and agree as follows:

     1. Amendment. The Loan Agreement is amended and modified in the following
manner:

          (a) Definitions. Section 1.1 of the Loan Agreement is amended to
include the following additional definition:

               "Financial Statements" shall mean the Financial Statements
               Company is obligated to deliver pursuant to Section 6.2 of this
               Agreement.

               "Interest Adjustment Date" shall mean for the purposes of Section
               2.4(d), that date which is the later of Lender's receipt of each
               of (i) Company's monthly and annual Financial Statements and (ii)
               Company's Officer's Certificate for each such period.

          (b) Commitment. Section 2.1 (a) of the Loan Agreement is hereby
amended and restated in its entirety as follows:

          (a)  Subject to the terms and conditions of this Agreement and
               provided that no Default or Event of Default has occurred and is
               continuing, Lender agrees, from time to time, during the period
               from the date hereof to and including the Termination Date, to
               make Advances to Company, provided the sum of the total aggregate
               principal amount outstanding at any one time of all such Advances
               shall not exceed

<PAGE>

               $56,000,000. The obligation of Lender to make Advances hereunder
               up to such limit is hereinafter referred to as the "Commitment."
               Within the Commitment, Company may borrow, repay, and reborrow.
               All Advances under this Agreement shall constitute a single
               indebtedness, and all of the Collateral shall be security for the
               Note and for the performance of all the Obligations of Company to
               Lender.

          (c) Second Mortgage Loans. Section 2.1 (b)(5) of the Loan Agreement is
hereby amended and restated in its entirety as follows:

               (5) The aggregate amount of Second Mortgage Loan Advances
               outstanding at any one time shall not exceed $10,000,000.

          (d) Financial Covenants. Section 7.5 and Section 7.6 of the Loan
Agreement is amended and restated in their entirety as follows:

               7.5 Indebtedness to Tangible Net Worth Ratio. Permit the ratio of
               Indebtedness to Tangible Net Worth of the Company (and its
               Subsidiaries, on a consolidated basis) to exceed 20.0 to 1 as of
               the end of each calendar moth.

               7.6 Minimum Adjusted Tangible Net Worth. Permit Adjusted Tangible
               Net Worth of the Company (and its Subsidiaries, on a consolidated
               basis) to be less than Twelve Million Dollars ($12,000,000),
               computed as of the end of each calendar month.

          (e) Interest. Section 2.4 of the Loan is amended to include the
following new Section 2.4(d) as follows:

          (d) On a monthly basis, the applicable interest rate of all
          Obligations shall be determined in accordance with the following
          matrix (no downward rate adjustment being permitted if on the Interest
          Adjustment Date an Event of Default or Default is outstanding):

          -----------------------------------------------------------------
          Indebtedness to Tangible Net
                   Worth Ratio                     Rate of Interest
          -----------------------------------------------------------------
          Equal to or less than 15.0 to 1  Interest Rate
          -----------------------------------------------------------------
          Greater than 15.0 to 1           Interest Rate + [*] basis points
          -----------------------------------------------------------------

          For purposes of the foregoing, (i) the ratio of Indebtedness to
          Tangible Net Worth will be determined by Lender on a monthly basis by
          reference to Company's Financial Statements and Officer's

                                        2

<PAGE>

          Certificates delivered pursuant to Section 6.2 herein; and (ii) if
          Company fails to timely deliver the applicable Officer's Certificates
          and Financial Statements to Lender in accordance with Section 6.2
          herein for any period, then at Lender's option, the rate of interest
          on the Obligations will be increased to the highest rate of interest
          pursuant to the above matrix, which rate of interest shall continue in
          effect until the Officer's Certificates and Financial Statements are
          delivered.

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b) Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          (b) The execution and delivery by Company of this Amendment and the
performance of the transactions herein contemplated (i) are and will be within
such party's powers, (ii) have been authorised by all necessary organizational
action, and (iii) are not and will not be in contravention of any order of any
court or other agency of government, of law or any other indenture, agreement or
undertaking to which Company is a party or by which the property of Company is
bound, or be in conflict with, result in a breach of, or constitute (with due
notice and/or lapse of time) a default under any such indenture, agreement or
undertaking or result in the imposition of any lien, charge or encumbrance of
any nature on any of the properties of Company.

          (c) This Amendment and any assignment, instrument, document, or
agreement executed and delivered in connection herewith, will be valid, binding,
and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced

                                        3

<PAGE>

by the Note according to the terms thereof. In consideration of the modification
of certain provisions of the Existing Loan Documents, all as herein provided,
and the other benefits received by Company hereunder, Company RELEASES,
RELINQUISHES and forever DISCHARGES Lender, and its predecessors, successors,
assigns, shareholders, principals, parents, subsidiaries, agents, officers,
directors, employees, attorneys and representatives (collectively, the "Released
Parties"), of and from any and all claims, demands, actions and causes of action
of any and every kind or character, whether known or unknown, present or future,
which Company has, or may have against Released Parties, arising out of or with
respect to any and all transactions relating to the Loan Agreement, the Note,
and the other Existing Loan Documents occurring prior to the date hereof,
including any other loss, expense and/or detriment, of any kind or character,
growing out of or in any way connected with or in any way resulting from the
acts, actions or omissions of the Released Parties, and including any loss, cost
or damage in connection with any breach of fiduciary duty, breach of any duty of
fair dealing, breach of competence, breach of funding commitment, undue
influence, duress, economic coercion, conflict of interest, negligence, bad
faith, malpractice, violations of the Racketeer Influence and Corrupt
Organizations Act, intentional or negligent infliction of emotional or mental
distress, tortious interference with corporate governments or prospective
business advantage, tortious interference with contractual relations, breach of
contract, deceptive trade practices, libel, slander, conspiracy, the charging,
contracting for, taking, reserving, collecting or receiving of interest in
excess of the highest lawful rate applicable to the Existing Loan Documents
(i.e., usury), any violations of federal or state law, any violations of federal
or state banking rules, laws or regulations, including, but not limited to, any
violations of Regulation B, Equal Credit Opportunity, bank tying act claims or
any violation of federal antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are ratified and confirmed and continue unchanged and in full force
and effect. All references to the Loan Agreement shall mean the Loan Agreement
as modified by this Amendment.

     7. Governing Law. This Amendment, and all matters arising out of or related
to this Amendment, shall be governed by, construed and enforced in accordance
with the laws of the State of Texas, excluding its conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                        4

<PAGE>

     Dated the date and year first written above.

COMPANY:                                FIRST NLC FINANCIAL SERVICES, INC.

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: JEFFREY M. HENSCHEL
                                        Title: PRESIDENT

                                        NLC FINANCIAL SERVICES, LLC

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: JEFFREY M. HENSCHEL
                                        Title: PRESIDENT

LENDER:                                 WASHINGTON MUTUAL BANK, FA

                                        By: /s/ Dominic J. Aprile VP
                                            ------------------------------------
                                        Name: DOMINIC J. APRILE
                                        Title: VICE PRESIDENT

                     [SIGNATURE PAGE TO FIFTEENTH AMENDMENT]

                                       S-1

<PAGE>

                             FOURTEENTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Fourteenth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of January 13, 2004 by First NLC Financial Services,
LLC and NLC Financial Services, LLC (collectively, the "Company"), and
Washington Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, promise
and agree as follows:

     1. Amendment. The Loan Agreement is amended and modified in the following
manner:

          (a) Commitment. Section 2.1 (a) of the Loan Agreement is hereby
amended and restated in its entirety as follows:

          (a) Subject to the terms and conditions of this Agreement and provided
          that no Default or Event of Default has occurred and is continuing,
          Lender agrees, from time to time, during the period from the date
          hereof to and including the Termination Date, to make Advances to
          Company, provided the sum of the total aggregate principal amount
          outstanding at any one time of all such Advances shall not exceed
          $40,000,000; provided, however, commencing January 13, 2004 and
          continuing through and including February 17, 2004, such amount shall
          not exceed $58,000,000. The obligation of Lender to make Advances
          hereunder up to such limit is hereinafter referred to as the
          "Commitment." Within the Commitment, Company may borrow, repay and
          reborrow. All Advances under this Agreement shall constitute a single
          indebtedness, and all of the Collateral shall be security for the Note
          and for the performance of all the Obligations of Company to Lender.

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and

<PAGE>

substance satisfactory to Lender and Lender's counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b) Delivery of an unanimous written consent from Company's member
authorizing the execution and delivery of this Amendment, and the transactions
contemplated hereunder; and

          (c) Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          (b) The execution and delivery by Company of this Amendment and the
performance of the transactions herein contemplated (i) are and will be within
such party's powers, (ii) have been authorized by all necessary organizational
action, and (iii) are not and will not be in contravention of any order of any
court or other agency of government, of law or any other indenture, agreement or
undertaking to which Company is a party or by which the property of Company is
bound, or be in conflict with, result in a breach of, or constitute (with due
notice and/or lapse of time) a default under any such indenture, agreement or
undertaking or result in the imposition of any lien, charge or encumbrance of
any nature on any of the properties of Company.

          (c) This Amendment and any assignment, instrument, document, or
agreement executed and delivered in connection herewith, will be valid, binding
and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company RELEASES, RELINQUISHES
and forever DISCHARGES Lender, and its predecessors, successors, assigns,
shareholders, principals, parents, subsidiaries, agents, officers, directors,
employees, attorneys and representatives (collectively, the "Released Parties"),
of and from any and all claims, demands, actions and causes of action of any and
every kind or character, whether known or unknown, present or future, which
Company has, or may have

                                       2

<PAGE>

against Released Parties, arising out of or with respect to any and all
transactions relating to the Loan Agreement, the Note, and the other Existing
Loan Documents occurring prior to the date hereof, including any other loss,
expense and/or detriment, of any kind or character, growing out of or in any way
connected with or in any way resulting from the acts, actions or omissions of
the Released Parties, and including any loss, cost or damage in connection with
any breach of fiduciary duty, breach of any duty of fair dealing, breach of
competence, breach of funding commitment, undue influence, duress, economic
coercion, conflict of interest, negligence, bad faith, malpractice, violations
of the Racketeer Influence and Corrupt Organizations Act, intentional or
negligent infliction of emotional or mental distress, tortious interference with
corporate governments or prospective business advantage, tortious interference
with contractual relations, breach of contract, deceptive trade practices,
libel, slander, conspiracy, the charging, contracting for, taking, reserving,
collecting or receiving of interest in excess of the highest lawful rate
applicable to the Existing Loan Documents (i.e., usury), any violations of
federal or state law, any violations of federal or state banking rules, laws or
regulations, including, but not limited to, any violations of Regulation B,
Equal Credit Opportunity, bank tying act claims or any violation of federal
antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are ratified and confirmed and continue unchanged and in full force
and effect. All references to the Loan Agreement shall mean the Loan Agreement
as modified by this Amendment.

     7. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                       3

<PAGE>

     Dated the date and year first written above.

COMPANY:                                    FIRST NLC FINANCIAL SERVICES, INC.

                                            By: /s/ Jeffrey M. Henschel
                                                --------------------------------
                                            Name: JEFFREY M. HENSCHEL
                                            Title: PRESIDENT

                                            NLC FINANCIAL SERVICES, LLC

                                            By: /s/ Jeffrey M. Henschel
                                                --------------------------------
                                            Name: JEFFREY M. HENSCHEL
                                            Title: PRESIDENT

LENDER:                                     WASHINGTON MUTUAL BANK, FA

                                            By: /s/ Dominic J. Aprile
                                                --------------------------------
                                            Name: DOMINIC J. APRILE
                                            Title: VICE PRESIDENT

                    [SIGNATURE PAGE TO THIRTEENTH AMENDMENT]

                                       S-l

<PAGE>

                             THIRTEENTH AMENDMENT TO
                    WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Thirteenth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of November 14, 2003 by First NLC Financial Services,
LLC and NLC Financial Services, LLC (collectively, the "Company"), and
Washington Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, promise
and agree as follows:

     1. Amendment. The Loan Agreement is amended and modified in the following
manner:

          (a) Commitment. Section 2.1 (a) of the Loan Agreement is hereby
amended and restated in its entirety as follows:

          (a) Subject to the terms and conditions of this Agreement and provided
          that no Default or Event of Default has occurred and is continuing,
          Lender agrees, from time to time, during the period from the date
          hereof to and including the Termination Date, to make Advances to
          Company, provided the sum of the total aggregate principal amount
          outstanding at any one time of all such Advances shall not exceed
          $40,000,000; provided, however, commencing November 14, 2003 and
          continuing through and including January 13, 2004, such amount shall
          not exceed $60,000,000. The obligation of Lender to make Advances
          hereunder up to such limit is hereinafter referred to as the
          "Commitment." Within the Commitment, Company may borrow, repay and
          reborrow. All Advances under this Agreement shall constitute a single
          indebtedness, and all of the Collateral shall be security for the Note
          and for the performance of all the Obligations of Company to Lender.

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion

<PAGE>

of the following conditions precedent (all agreements, documents and instruments
to be in form and substance satisfactory to Lender and Lender's counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b) Execution and delivery by Company of an amended and restated
Promissory Note in the original principal amount of $60,000,000 ("Note");

          (c) Delivery of an unanimous written consent from Company's member
authorizing the execution and delivery of this Amendment, the Note and the
transactions contemplated hereunder; and

          (d) Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          (b) The execution and delivery by Company of this Amendment and the
Note and the performance of the transactions herein contemplated (i) are and
will be within such party's powers, (ii) have been authorized by all necessary
organizational action, and (iii) are not and will not be in contravention of any
order of any court or other agency of government, of law or any other indenture,
agreement or undertaking to which Company is a party or by which the property of
Company is bound, or be in conflict with, result in a breach of, or constitute
(with due notice and/or lapse of time) a default under any such indenture,
agreement or undertaking or result in the imposition of any lien, charge or
encumbrance of any nature on any of the properties of Company.

          (c) This Amendment, the Note and any assignment, instrument, document,
or agreement executed and delivered in connection herewith, will be valid,
binding and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company RELEASES, RELINQUISHES
and forever DISCHARGES

                                       2

<PAGE>

Lender, and its predecessors, successors, assigns, shareholders, principals,
parents, subsidiaries, agents, officers, directors, employees, attorneys and
representatives (collectively, the "Released Parties"), of and from any and all
claims, demands, actions and causes of action of any and every kind or
character, whether known or unknown, present or future, which Company has, or
may have against Released Parties, arising out of or with respect to any and all
transactions relating to the Loan Agreement, the Note, and the other Existing
Loan Documents occurring prior to the date hereof, including any other loss,
expense and/or detriment, of any kind or character, growing out of or in any way
connected with or in any way resulting from the acts, actions or omissions of
the Released Parties, and including any loss, cost or damage in connection with
any breach of fiduciary duty, breach of any duty of fair dealing, breach of
competence, breach of funding commitment, undue influence, duress, economic
coercion, conflict of interest, negligence, bad faith, malpractice, violations
of the Racketeer Influence and Corrupt Organizations Act, intentional or
negligent infliction of emotional or mental distress, tortious interference with
corporate governments or prospective business advantage, tortious interference
with contractual relations, breach of contract, deceptive trade practices,
libel, slander, conspiracy, the charging, contracting for, taking, reserving,
collecting or receiving of interest in excess of the highest lawful rate
applicable to the Existing Loan Documents (i.e., usury), any violations of
federal or state law, any violations of federal or state banking rules, laws or
regulations, including, but not limited to, any violations of Regulation B,
Equal Credit Opportunity, bank tying act claims or any violation of federal
antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are ratified and confirmed and continue unchanged and in full force
and effect. All references to the Loan Agreement shall mean the Loan Agreement
as modified by this Amendment.

     7. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                       3

<PAGE>

     Dated the date and year first written above.

COMPANY:                                FIRST NLC FINANCIAL SERVICES, INC.

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: JEFFREY M. HENSCHEL
                                        Title: PRESIDENT

                                        NLC FINANCIAL SERVICES, LLC

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: JEFFREY M. HENSCHEL
                                        Title: PRESIDENT

LENDER:                                 WASHINGTON MUTUAL BANK, FA

                                        By: /s/ Dominic J. Aprile VP
                                            ------------------------------------
                                        Name: DOMINIC J. APRILE
                                        Title: VICE PRESIDENT

                    [SIGNATURE PAGE TO THIRTEENTH AMENDMENT]

                                      S-1

<PAGE>

                              TWELFTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Twelfth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of October 15, 2003 by First NLC Financial Services,
LLC and NLC Financial Services, LLC (collectively, the "Company"), and
Washington Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise
defined in this Amendment shall have the meanings respectively ascribed to
them in the Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, promise
and agree as follows:

     1. Amendment. The Loan Agreement is amended and modified in the following
manner:

          (a) Commitment. Section 2.1 (a) of the Loan Agreement is hereby
amended and restarted in its entirety as follows:

          (a) Subject to the terms and conditions of this Agreement and provided
          that no Default or Event of Default has occurred and is continuing,
          Lender agrees, from time to time, during the period from the date
          hereof to and including the Termination Date, to make Advances to
          Company, provided the sum of the total aggregate principal amount
          outstanding at any one time of all such Advances shall not exceed
          $40,000,000; provided, however, commencing October 15, 2003 and
          continuing through and including October 31, 2003, such amount shall
          not exceed $45,000,000. The obligation of Lender to make Advances
          hereunder up to such limit is hereinafter referred to as the
          "Commitment." Within the Commitment, Company may borrow, repay and
          reborrow. All Advances under this Agreement shall constitute a single
          indebtedness, and all of the Collateral shall be security for the Note
          and for the performance of all the Obligations of Company to Lender.

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion

<PAGE>

of the following conditions precedent (all agreements, documents and instruments
to be in form and substance satisfactory to Lender and Lender's counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b) Execution and delivery by Company of an amended and restated
Promissory Note in the original principal amount of $45,000,000 ("Note");

          (c) Delivery of an unanimous written consent from Company's member
authorizing the execution and delivery of this Amendment, the Note and the
transactions contemplated hereunder; and

          (d) Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          (b) The execution and delivery by Company of this Amendment and the
Note and the performance of the transactions herein contemplated (i) are and
will be within such party's powers, (ii) have been authorized by all necessary
organizational action, and (iii) are not and will not be in contravention of any
order of any court or other agency of government, of law or any other indenture,
agreement or undertaking to which Company is a party or by which the property of
Company is bound, or be in conflict with, result in a breach of, or constitute
(with due notice and or lapse of time) a default under any such indenture,
agreement or undertaking or result in the imposition of any lien, charge or
encumbrance of any nature on any of the properties of Company.

          (c) This Amendment, the Note and any assignment, instrument, document,
or agreement executed and delivered in connection herewith, will be valid,
binding and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by company hereunder, Company RELEASES, RELINQUISHES
and forever DISCHARGES

                                       2

<PAGE>

Lender, and its predecessors, successors, assigns, shareholders, principals,
parents, subsidiaries, agents, officers, directors, employees, attorneys and
representatives (collectively, the "Released Parties"), of and from any and all
claims, demands, actions and causes of action of any and every kind or
character, whether known or unknown, present or future, which Company has, or
may have against Released Parties, arising out of or with respect to any and all
transactions relating to the Loan Agreement, the Note, and the other Existing
Loan Documents occurring prior to the date hereof, including any other loss,
expense and/or detriment, of any kind or character, growing out of or in any
way connected with or in any way resulting from the acts, actions or omissions
of the Released Parties, and including any loss, cost or damage in connection
with any breach of fiduciary duty breach of any duty of fair dealing, breach of
competence, breach of funding commitment, undue influence, duress, economic
coercion, conflict of interest, negligence, bad faith, malpractice, violations
of the Racketeer Influence and Corrupt Organizations Act, intentional or
negligent infliction of emotional or mental distress, tortious interference with
corporate governments or prospective business advantage, tortious interference
with contractual relations, breach of contract, deceptive trade practices,
libel, slander, conspiracy, the charging, contracting for, taking, reserving,
collecting or receiving of interest in excess of the highest lawful rate
applicable to the Existing Loan Documents (i.e., usury), any violations of
federal or state law, any violations of federal or state banking rules, laws or
regulations, including, but not limited to, any violations of Regulation B,
Equal Credit Opportunity, bank tying act claims or any violation of federal
antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are ratified and confirmed and continue unchanged and in full force
and effect. All references to the Loan Agreement shall mean the Loan Agreement
as modified by this Amendment.

     7. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                       3

<PAGE>

     Dated the date and year first written above.

COMPANY:                                FIRST NLC FINANCIAL SERVICES, INC.

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: Jeffrey M. Henschel
                                        Title: Pres

                                        NCL FINANCIAL SERVICES, LLC

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: Jeffrey M. Henschel
                                        Title: Pres

LENDER:                                 WASHINGTON MUTUAL BANK, FA

                                        By: /s/ Andrew B [Illegible]
                                            ------------------------------------
                                        Name: ANDREW B [Illegible]
                                        Title: VICE PRESIDENT

                     [SIGNATURE PAGE TO TWELFTH AMENDMENT]

                                      S-l

<PAGE>

                              ELEVENTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Eleventh Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of July 31, 2003 by First NLC Financial Services, LLC
and NLC Financial Services, LLC (collectively, the "Company"), and Washington
Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, promise
and agree as follows:

     1. Amendment. The Loan Agreement is amended and modified in the following
manner:

          (a) Definitions. The following definitions contained in Section 1.1 of
the Loan Agreement are amended and restated in their entirety as follows:

          "Applicable Margin" shall mean [*] basis points for Aged Mortgage Loan
          Advances and Advances against Repurchased Mortgage Loans and [*] basis
          points for all other Advances.

          "Termination Date" shall mean August 1, 2004 or such earlier date upon
          which Lender's obligation to fund shall be terminated pursuant to the
          terms of this Agreement.

          (b) Wet Advance Sublimit. Section 2.1(b)(2) of the Loan Agreement is
amended and restated in its entirety as follows:

          (2) The aggregate amount of Wet Settlement Advances outstanding at any
          one time shall not exceed 35% of the Commitment.

          (c) Advances. Section 2.1(c) of the Loan Agreement is amended and
restated in its entirety as follows:

<PAGE>

          (c) No Advance shall exceed the following amounts applicable to the
          type of Collateral, determined as of the date the Collateral is
          pledged to Lender. No Advance shall exceed (i) except as provided
          below, an amount equal to [*] of the Collateral Value of such Mortgage
          Loan; (ii) with respect to Subprime Mortgage Loans, an amount equal to
          [*] of the Collateral Value of such Mortgage Loans; (iii) with respect
          to Second Mortgage Loans, an amount equal to [*] of the Collateral
          Value of such Mortgage Loans; (iv) with respect to Subwarehouse
          Mortgage Loans, an amount equal to [*] of the Collateral Value of such
          Subwarehouse Mortgage Loans until the earlier to occur of (X) the
          termination of the Commitment hereunder and (Y) April 30, 2000; and
          (v) with respect to Eligible Mortgage Loans subject to a Purchase
          Commitment from Lender or any of Lender's affiliates, the lesser of
          [*] of the Collateral Value of such Eligible Mortgage Loan or the
          amount set forth in the applicable Purchase Commitment.

          (d) Indebtedness to Tangible Net Worth Ratio. Section 7.5 of the Loan
Agreement is amended and restated in its entirely as follows:

          7.5 Indebtedness to Tangible Net Worth Ratio. Permit to ratio of
          Indebtedness to Tangible Net Worth of the Company (and its
          Subsidiaries, on a consolidated basis) to exceed: (i) 20.0 to 1 as of
          the end of each calendar through and including January 31, 2004 and
          (ii) 15.0 to 1 as of the end of each calendar with thereafter.

          (e) Minimum Adjusted Tangible Net Worth. Section 7.6 of the Loan
Agreement is amended and restated in its entirety as follows:

          7.6 Minimum Adjusted Tangible Net Worth. Commencing with the calendar
          month ending March 31, 2003, permit Adjusted Tangible Net Worth of the
          Company (and its Subsidiaries, on a consolidated basis) to be less
          than $10,400,000 as of the end of each calendar month.

          (f) Current Ratio. Company shall not permit the Current Ratio of
Company (and its Subsidiaries, on a consolidated basis) to be less than (i) 1.03
to 1 as of the end of each calendar month through and including September 30,
2003 and (ii) 1.05 to 1 as of the end of each calendar month thereafter. For
purpose hereof, (x) "Current Assets" means, with respect to any Person, those
assets set forth on the consolidated balance sheet of a Person prepared in
accordance with GAAP, as current assets, defined as those assets that are now
cash or will be by their terms or disposition be converted to cash within one
year of the date of calculation, (y) "Current Liabilities" means, with respect
to any Person, those liabilities set forth on the consolidated balance sheet of
a

                                       2

<PAGE>

Person prepared in accordance with GAAP, as current liabilities, defined as
those liabilities due upon demand or within one year from the date of
calculation, and (z) "Current Ratio" means, with respect to any Person, the sum
of the amounts set forth in the consolidated balance sheet of the Person,
prepared in accordance with GAAP, on the date of calculation as Current Assets
divided by the sum of the amounts set forth on such consolidated balance sheet
as Current Liabilities.

          (g) Limit on Distributions. The following is added to the end of
Section 7.8 of the Loan Agreement:

          and (b) the Company must retain at least 20% of its net earnings after
          all such dividends are paid.

          (h) Mortgage Loan Cap. Notwithstanding anything to the contrary
contained in the Loan Agreement and in addition to such requirements for Second
Mortgage Loans and Subprime Mortgage Loans, no Eligible Mortgage shall be in a
maximum amount of greater than $1,000,000.

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b) Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          (b) The execution and delivery by Company of this Amendment and the
performance of the transactions herein contemplated (i) are and will be within
such party's powers, (ii) have been authorized by all necessary organizational
action, and (iii) are not and will not be in contravention of any order of any
court or other agency of government, of law or any other indenture, agreement or
undertaking to which Company is a party or by which the property of Company is
bound, or be in conflict with, result in a breach of, or constitute (with due
notice and/or lapse of time) a default under any such indenture, agreement or
undertaking or result in the imposition of any lien, charge or encumbrance of
any nature on any of the properties of Company.

          (c) This Amendment and any assignment, instrument, document, or
agreement executed and delivered in connection herewith, will be valid, binding
and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

                                       3

<PAGE>

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company RELEASES, RELINQUISHES
and forever DISCHARGES Lender, and its predecessors, successors, assigns,
shareholders, principals, parents, subsidiaries, agents, officers, directors,
employees, attorneys and representatives (collectively, the "Released Parties"),
of and from any and all claims, demands, actions and causes of action of any and
every kind or character, whether known or unknown, present or future, which
Company has, or may have against Released Parties, arising out of or with
respect to any and all transactions relating to the Loan Agreement, the Note,
and the other Existing Loan Documents occurring prior to the date hereof,
including any other loss, expense and/or detriment, of any kind or character,
growing out of or in any way connected with or in any way resulting from the
acts, actions or omissions of the Released Parties, and including any loss, cost
or damage in connection with any breach of fiduciary duty, breach of any duty of
fair dealing, breach of competence, breach of funding commitment, undue
influence, duress, economic coercion, conflict of interest, negligence, bad
faith, malpractice, violations of the Racketeer Influence and Corrupt
Organizations Act, intentional or negligent infliction of emotional or mental
distress, tortious interference with corporate governments or prospective
business advantage, tortious interference with contractual relations, breach of
contract, deceptive trade practices, libel, slander, conspiracy, the charging,
contracting for, taking, reserving, collecting or receiving of interest in
excess of the highest lawful rate applicable to the Existing Loan Documents
(i.e., usury), any violations of federal or state law, any violations of federal
or state banking rules, laws or regulations, including, but not limited to, any
violations of Regulation B, Equal Credit Opportunity, bank tying act claims or
any violation of federal antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are ratified and confirmed and continue unchanged and in full force
and effect. All references to the Loan Agreement shall mean the Loan Agreement
as modified by this Amendment.

     7. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

                                       4

<PAGE>

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                        5

<PAGE>

     Dated the date and year first written above.

COMPANY:                                FIRST NLC FINANCIAL SERVICES, INC.

                                        By: /s/ Neal Henschel
                                            ------------------------------------
                                        Name: NEAL HENSCHEL
                                        Title: CEO

                                        NLC FINANCIAL SERVICES, LLC

                                        By: /s/ Neal Henschel
                                            ------------------------------------
                                        Name: NEAL HENSCHEL
                                        Title: CEO

LENDER:                                 WASHINGTON MUTUAL BANK, FA

                                        By: /s/ Darcey B Carter
                                            ------------------------------------
                                        Name: Darcey B Carter
                                        Title: Vice President

                     [SIGNATURE PAGE TO ELEVENTH AMENDMENT]

                                       S-1

<PAGE>

                               TENTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Tenth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of May 30, 2003 by First NLC Financial Services, LLC
and NLC Financial Services, LLC (collectively, the "Company"), and Washington
Mutual Bank, FA, successor by merger to Bank Unit ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby
promise and agree as follows:

     1. Amendment. The Loan Agreement is hereby amended and modified in the
following manner:

          (a) Termination Date. The definition of "Termination Date" contained
in Section 1.3 of the Loan Agreement is hereby amended and restated in its
entirety as follows:

          "Termination Date" shall mean July 31, 2003 or such earlier date upon
          which Lender's obligation to fund shall be terminated pursuant to the
          terms of this Agreement.

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b)Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

<PAGE>

          (b) The execution and delivery by Company of this Amendment and the
performance of the transactions herein contemplated (i) are and will be within
such party's powers, (ii) have been authorized by all necessary organizational
action, and (iii) are not and will not be in contravention of any order of any
court or other agency of government, of law or any other indenture, agreement or
undertaking to which Company is a party or by which the property of Company is
bound, or be in conflict with, result in a breach of, or constitute (with due
notice and/or lapse of time) a default under any such indenture, agreement or
undertaking or result in the imposition of any lien, charge or encumbrance of
any nature on any of the properties of Company.

          (c) This Amendment and any assignment, instrument, document, or
agreement executed and delivered in connection herewith, will be valid, binding
and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company hereby acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company hereby RELEASES,
RELINQUISHES and forever DISCHARGES Lender, and its predecessors, successors,
assigns, shareholders, principals, parents, subsidiaries, agents, officers,
directors, employees, attorneys and representatives (collectively, the "Released
Parties"), of and from any and all claims, demands, actions and causes of action
of any and every kind or character, whether known or unknown, present or future,
which Company has, or may have against Released Parties, arising out of or with
respect to any and all transactions relating to the Loan Agreement, the Note,
and the other Existing Loan Documents occurring prior to the date hereof,
including any other loss, expense and/or detriment, of any kind or character,
growing out of or in any way connected with or in any way resulting from the
acts, actions or omissions of the Released Parties, and including any loss, cost
or damage in connection with any of breach of fiduciary duty, breach of any duty
of fair dealing, breach of competence, breach of funding commitment, undue
influence, duress, economic coercion, conflict of interest, negligence, bad
faith, malpractice, violations of the Racketeer Influence and Corrupt
Organizations Act, intentional or negligent infliction of emotional or mental
distress, tortious interference with corporate governments or prospective
business advantage, tortious interference with contractual relations, breach of
contract, deceptive trade practices, libel, slander, conspiracy, the charging,
contracting for, taking, reserving, collecting or receiving of interest in
excess of the highest lawful rate applicable to the Existing Loan Documents
(i.e., usury), any violations of federal or state law, any violations of federal
or state banking rules, laws or regulations, including, but not limited to, any
of violations Regulation B, Equal Credit Opportunity, bank tying act claims or
any violation of federal an antitrust acts.

                                        2

<PAGE>

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are hereby ratified and confirmed and continue unchanged and in full
force and effect. All references to the Loan Agreement shall mean the Loan
Agreement as modified by this Amendment.

     7. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                        3

<PAGE>

     Dated the date and year first written above.

COMPANY:

                                        FIRST NLC FINANCIAL SERVICES, INC.

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: Jeffrey M. Henschel
                                        Title: PRESIDENT

                                        NLC FINANCIAL SERVICES, LLC

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: Jeffrey M. Henschel
                                        Title: PRESIDENT

LENDER:                                 WASHINGTON MUTUAL BANK, FA

                                        By:
                                            ------------------------------------
                                            Sonya S. Faivre, Vice President

                                      S-1

<PAGE>

                               NINTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Ninth Amendment to Warehousing Credit and Security Agreement:
("Amendment") is dated as of April 30, 2003 by First NLC Financial Services, LLC
and NLC Financial Services, LLC (collectively, the "Company"), and Washington
Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Certain Events of Default have occurred under the Loan Agreement.
Company has requested that Lender waive the Existing Defaults (as defined
below), and modify in certain respects the Loan Agreement, and Lender has agreed
to such waiver and modifications subject to the terms and conditions of this
Amendment.

     C. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby
promise and agree as follows:

     1. Amendment. The Loan Agreement is hereby amended and modified in the
following manner:

          (a) Minimum Adjusted Tangible Net Worth. Section 7.6 of the Loan
Agreement is hereby amended and restated in its entirety as follows:

          7.6 Minimum Adjusted Tangible Net Worth. Commencing with the calendar
          month ending March 31, 2003, permit Adjusted Tangible Net Worth of the
          Company (and its Subsidiaries, on a consolidated basis) to be less
          than $11,000,000 as of the end of each calendar month.

     2. Waiver of Existing Defaults. Company has informed Lender that Company
failed to comply with Section 7.6 of the Loan Agreement for the calendar months
ending January 31, 2003 and February 28, 2003. Each such failure to comply is an
Event of Default, and such failures are referred to collectively herein as,
"Existing Defaults." Upon satisfaction of the effectiveness conditions set forth
below, Lender shall be deemed to have waived the Existing Defaults, provided
that Lender's waiver shall not be deemed to be a waiver of any subsequent
violations of such covenant or a waiver of any other Events of Defaults which
may have occurred but are not specifically referred to herein. Nothing contained
herein shall obligate Lender to grant

<PAGE>

any future waiver of any Event of Default.

     3. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          (a) Execution and delivery by Company of this Amendment to Lender;

          (b) Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     4. Representations and Warranties. Company represents and warrants to
Lender that:

          (a) All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          (b) The execution and delivery by Company of this Amendment and the
performance of the transactions herein contemplated (i) are and will be within
such party's powers, (ii) have been authorized by all necessary organizational
action, and (iii) are not and will not be in contravention of any order of any
court or other agency of government, of law or any other indenture, agreement or
undertaking to which Company is a party or by which the property of Company is
bound, or be in conflict with, result in a breach of, or constitute (with due
notice and/or lapse of time) a default under any such indenture, agreement or
undertaking or result in the imposition of any lien, charge or encumbrance of
any nature on any of the properties of Company.

          (c) This Amendment and any assignment, instrument, document, or
agreement executed and delivered in connection herewith, will be valid, binding
and enforceable in accordance with its respective terms.

          (d) No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     5. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company hereby acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company hereby RELEASES,
RELINQUISHES and forever DISCHARGES Lender, and its predecessors, successors,
assigns, shareholders, principals, parents, subsidiaries, agents, officers,
directors, employees, attorneys and representatives (collectively, the "Released
Parties"), of and from any and all claims, demands, actions and causes of action
of any and every kind or character, whether known or unknown,

                                        2

<PAGE>

present or future, which Company has, or may have against Released Parties,
arising out of or with respect to any and all transactions relating to the Loan
Agreement, the Note, and the other Existing Loan Documents occurring prior to
the date hereof, including any other loss, expense and/or detriment, of any kind
or character, growing out of or in any way connected with or in any way
resulting from the acts, actions or omissions of the Released Parties, and
including any loss, cost or damage in connection with any breach of fiduciary
duty, breach of any duty of fair dealing, breach of competence, breach of
funding commitment, undue influence, duress, economic coercion, conflict of
interest, negligence, bad faith, malpractice, violations of the Racketeer
Influence and Corrupt Organizations Act, intentional or negligent infliction of
emotional or mental distress, tortious interference with corporate governments
or prospective business advantage, tortious interference with contractual
relations, breach of contract, deceptive trade practices, libel, slander,
conspiracy, the charging, contracting for, taking, reserving, collecting or
receiving of interest in excess of the highest lawful rate applicable to the
Existing Loan Documents (i.e., usury), any violations of federal or state law,
any violations of federal or state banking rules, laws or regulations,
including, but not limited to, any violations of Regulation B, Equal Credit
Opportunity, bank tying act claims or any violation of federal antitrust acts.

     6. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     7. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are hereby ratified and confirmed and continue unchanged and in full
force and effect. All references to the Loan Agreement shall mean the Loan
Agreement as modified by this Amendment.

     8. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     9. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                        3

<PAGE>

     Dated the date and year first written above.

COMPANY:                               FIRST NLC FINANCIAL SERVICES, INC.

                                       By: /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                       Name: JEFFREY M. HENSCHEL
                                       Title: PRESIDENT

                                       NCL FINANCIAL SERVICES, LLC

                                       By: /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                       Name: JEFFREY M. HENSCHEL
                                       Title: PRESIDENT

LENDER:                                WASHINGTON MUTUAL BANK, FA

                                       By: /s/ Sonya S. Faivre
                                           -------------------------------------
                                           Sonya S. Faivre, Vice President

                                       S-1

<PAGE>

                               EIGHTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Eighth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of November 1, 2002 by First NLC Financial Services,
LLC and NLC Financial Services, LLC (collectively, the "Company"), and
Washington Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby
promise and agree as follows:

     1. Amendment. The Loan Agreement is hereby amended and modified in the
following manner:

          a. Applicable Margin. The definition of "Applicable Margin" contained
in Section 1.1 of the Loan Agreement is hereby amended and restated in its
entirety as follows"

     "Applicable Margin" shall mean [*] basis points.

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          a. Execution and delivery by Company of this Amendment to Lender;

          b. Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          a. All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          b. The execution and delivery by Company of this Amendment and the
performance of the transactions herein contemplated (i) are and will be within
such party's powers,

<PAGE>

(ii) have been authorized by all necessary organizational action, and (iii) are
not and will not be in contravention of any order of any court or other agency
of government, of law or any other indenture, agreement or undertaking to which
Company is a party or by which the property of Company is bound, or be in
conflict with, result in a breach of, or constitute (with due notice and/or
lapse of time) a default under any such indenture, agreement or undertaking or
result in the imposition of any lien, charge or encumbrance of any nature on any
of the properties of Company.

          c. This Amendment and any assignment, instrument, document, or
agreement executed and delivered in connection herewith, will be valid, binding
and enforceable in accordance with its respective terms.

          d. No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the ' obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company hereby acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company hereby RELEASES,
RELINQUISHES and forever DISCHARGES Lender, and its predecessors, successors,
assigns, shareholders, principals, parents, subsidiaries, agents, officers,
directors, employees, attorneys and representatives (collectively, the "Released
Parties"), of and from any and all claims, demands, actions and causes of action
of any and every kind or character, whether known or unknown, present or future,
which Company has, or may have against Released Parties, arising out of or with
respect to any and all transactions relating to the Loan Agreement, the Note,
and the other Existing Loan Documents occurring prior to the date hereof,
including any other loss, expense and/or detriment, of any kind or character,
growing out of or in any way connected with or in any way resulting from the
acts, actions or omissions of the Released Parties, and including any loss, cost
or damage in connection with any breach of fiduciary duty, breach of any duty of
fair dealing, breach of competence, breach of funding commitment, undue
influence, duress, economic coercion, conflict of interest, negligence, bad
faith, malpractice, violations of the Racketeer Influence and Corrupt
Organizations Act, intentional or negligent infliction of emotional or mental
distress, tortious interference with corporate governments or prospective
business advantage, tortious interference with contractual relations, breach of
contract, deceptive trade practices, libel, slander, conspiracy, the charging,
contracting for, taking, reserving, collecting or receiving of interest in
excess of the highest lawful rate applicable to the Existing Loan Documents
(i.e., usury), any violations of federal or state law, any violations of federal
or state banking rules, laws or regulations, including, but not limited to, any
violations of Regulation B, Equal Credit Opportunity, bank tying act claims or
any violation of federal antitrust acts.

                                       2

<PAGE>

     5. Collateral. As security for the payment of die Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are hereby ratified and confirmed and continue unchanged and in full
force and effect. All references to the Loan Agreement shall mean the Loan
Agreement as modified by this Amendment.

     7. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                          SIGNATURES ON FOLLOWING PAGE

                                       3

<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
by their respective duly authorized officers as of the date first above written.

COMPANY:                                 FIRST NLC FINANCIAL SERVICES, LLC

                                         By: /s/ Jeffrey M. Henschel
                                             -----------------------------------
                                         Name: Jeffrey M. Henschel
                                         Title: Pres

                                         NLC FINANCIAL SERVICES, LLC

                                         By: /s/ Jeffrey M. Henschel
                                             -----------------------------------
                                         Name: Jeffrey M. Henschel
                                         Title: Pres

LENDER:                                  WASHINGTON MUTUAL BANK, FA

                                         By: /s/ Joseph Meehan
                                             -----------------------------------
                                         Name: Joseph Meehan
                                         Title: FVP

                                       4

<PAGE>

                              SEVENTH AMENDMENT TO
                    WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Seventh Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of June 20th, 2002 by First NLC Financial Services,
LLC and NLC Financial Services, LLC (collectively, the "Company"), and
Washington Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby
promise and agree as follows:

     1. Amendment. The Loan Agreement is hereby amended and modified in the
following manner:

          a. Termination Date. The definition of "Termination Date" contained in
Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety
as follows:

          'Termination Date" shall mean May 30, 2003 or such earlier date upon
          which Lender's obligation to fund shall be terminated pursuant to the
          terms of this Agreement.

          b. Repurchased Mortgage Loan. The following new definitions of
"Eligible Repurchased Mortgage Loan" and "Repurchased Mortgage Loan" are hereby
added to Section 1.1 of the Loan Agreement as follows:

          "Eligible Repurchased Mortgage Loan" means a Repurchased Mortgage Loan
          owned by Company that (a) is validly pledged to Lender, subject to no
          other Liens; (b) meets all the requirements set forth in the
          definition of an Eligible Mortgage Loan except for clauses (f), (g)
          and (i); (c) was included in Collateral as an Eligible Mortgage Loan
          prior to its pledge as an Eligible Repurchased Mortgage Loan; and (d)
          shall not have been included in Collateral as an Eligible Repurchased
          Mortgage Loan for more than an aggregate period of ninety (90) days.

<PAGE>

          "Repurchased Mortgage Loan" means a defaulted Mortgage Loan (a) that
          Company is obligated to purchase from an Investor pursuant to a
          Purchase Commitment between such Investor and Company or other
          contractual obligation owed by Company to such Investor for any reason
          other than fraud of Company or any other Person in the origination of
          such Mortgage Loan or any incurable violation of the Real Estate
          Settlement Procedures Act, Equal Credit Opportunity Act, the Federal
          Truth-in-Lending Act or any other applicable laws and regulations in
          the origination of such Mortgage Loans, and (b) for which foreclosure
          proceedings have not been completed.

          c. Commitment. Section 2.1 (a) of the Loan Agreement is hereby amended
          and restated in its entirety as follows:

          (a) Subject to the terms and conditions of this Agreement and provided
          that no Default or Event of Default has occurred and is continuing,
          Lender agrees, from time to time, during the period from the date
          hereof to and including the Termination Date, to make Advances to
          Company, provided the sum of the total aggregate principal amount
          outstanding at any one time of all such Advances shall not exceed
          $40,000,000. The obligation of Lender to make Advances hereunder up to
          such limit is hereinafter referred to as the "Commitment." Within the
          Commitment, Company may borrow, repay and reborrow. All Advances under
          this Agreement shall constitute a single indebtedness, and all of the
          Collateral shall be security for the Note and for the performance of
          all the Obligations of Company to Lender.

     2. Repurchased Mortgage Loans. Company may obtain an Advance against an
Eligible Repurchased Mortgage Loan subject to the satisfaction of the conditions
set forth in Sections 2.1 of the Standard Provisions, upon compliance with the
procedures set forth in the Loan Agreement, the Standard Provisions and in
Exhibit A attached hereto and made a part hereof. Requests for Advances against
Eligible Repurchased Mortgage Loans shall be initiated by Company by delivering
to Lender and its designee, by facsimile (with original to be sent immediately
thereafter by overnight mail) a completed and signed request for an Advance in
the form of Exhibit B attached hereto and a part hereof ("Repurchased Advance
Request"). Company shall provided to Lender in connection with a Repurchased
Advance Request all documents listed in the Repurchased Advance Request. In no
event shall the aggregate amount of Advances against Repurchased Mortgage Loans
outstanding at any one time exceed $500,000. Notwithstanding anything to the
contrary contained in the Loan Agreement or the Standard Provisions, the unpaid
amount of each Advance outstanding against Repurchased Mortgage Loans shall bear
interest from the date of such Advance until paid in full, at a rate of interest
equal to the lesser of (a) the Maximum Rate or (b) a floating rate of interest
which is equal to [*] basis points per annum over the Reference Rate. No Advance
against a Repurchased Mortgage Loan shall exceed an amount equal to [*]% of the
Collateral Value of such Mortgage Loan as of the date of such Advance. Company
shall be obligated to pay to Lender, without the necessity of prior demand or
notice from Lender, and Company authorizes Lender to charge the Funding Account,
if any, or any other accounts of Company (excluding any monies held by Company
in trust for third parties) in

                                        2

<PAGE>

Lender's possession for the amount of any outstanding Advance against a
Repurchased Mortgage Loan upon the expiration of ninety (90) days from the date
of any Advance for any Repurchased Mortgage Loan.

     3. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          a. Execution and delivery by Company and each Guarantor of this
Amendment to Lender;

          b. Execution and delivery by Company of an amended and restated
Promissory Note in the original principal amount of $40,000,000 ("Note");

          c. Delivery of an unanimous written consent from Company's member
authorizing the execution and delivery of this Amendment, the Note and the
transactions contemplated hereunder; and

          d. Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     4. Representations and Warranties. Company represents and warrants to
Lender that:

          a. All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          b. The execution and delivery by Company of this Amendment, the Note
and the performance by each of them of the transactions herein contemplated (i)
are and will be within such party's powers, (ii) have been authorized by all
necessary organizational action, and (iii) are not and will not be in
contravention of any order of any court or other agency of government, of law or
any other indenture, agreement or undertaking to which Company is a party or by
which the property of Company is bound, or be in conflict with, result in a
breach of, or constitute (with due notice and/or lapse of time) a default under
any such indenture, agreement or undertaking or result in the imposition of any
lien, charge or encumbrance of any nature on any of the properties of Company.

          c. This Amendment, Note and any assignment, instrument, document, or
agreement executed and delivered in connection herewith, will be valid, binding
and enforceable in accordance with its respective terms.

          d. No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     5. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan

                                        3

<PAGE>

Documents. Company hereby acknowledges, agrees, and represents that (a) there
are no claims or offsets against, or defenses or counterclaims to, the terms or
provisions of the Existing Loan Documents, and the other obligations created or
evidenced by the Existing Loan Documents; (b) Company has no claims, offsets,
defenses or counterclaims arising from any of Lender's acts or omissions with
respect to the Existing Loan Documents, or Lender's performance under the
Existing Loan Documents; and (c) Company promises to pay to the order of Lender
the indebtedness evidenced by the Note according to the terms thereof. In
consideration of the modification of certain provisions of the Existing Loan
Documents, all as herein provided, and the other benefits received by Company
hereunder, Company hereby RELEASES, RELINQUISHES and forever DISCHARGES Lender,
and its predecessors, successors, assigns, shareholders, principals, parents,
subsidiaries, agents, officers, directors, employees, attorneys and
representatives (collectively, the "Released Parties"), of and from any and all
claims, demands, actions and causes of action of any and every kind or
character, whether known or unknown, present or future, which Company has, or
may have against Released Parties, arising out of or with respect to any and all
transactions relating to the Loan Agreement, the Note, and the other Existing
Loan Documents occurring prior to the date hereof, including any other loss,
expense and/or detriment, of any kind or character, growing out of or in any way
connected with or in any way resulting from the acts, actions or omissions of
the Released Parties, and including any loss, cost or damage in connection with
any breach of fiduciary duty, breach of any duty of fair dealing, breach of
competence, breach of funding commitment, undue influence, duress, economic
coercion, conflict of interest, negligence, bad faith, malpractice, violations
of the Racketeer Influence and Corrupt Organizations Act, intentional or
negligent infliction of emotional or mental distress, tortious interference with
corporate governments or prospective business advantage, tortious interference
with contractual relations, breach of contract, deceptive trade practices,
libel, slander, conspiracy, the charging, contracting for, taking, reserving,
collecting or receiving of interest in excess of the highest lawful rate
applicable to the Existing Loan Documents (i.e., usury), any violations of
federal or state law, any violations of federal or state banking rules, laws or
regulations, including, but not limited to, any violations of Regulation B,
Equal Credit Opportunity, bank tying act claims or any violation of federal
antitrust acts.

     6. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     7. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are hereby ratified and confirmed and continue unchanged and in full
force and effect. All references to the Loan Agreement shall mean the Loan
Agreement as modified by this Amendment.

     8. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     9. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                                        4

<PAGE>

                            SIGNATURES ON FOLLOWING PAGE

                                        5

<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their respective duly authorized officers as of the date first above
written.

COMPANY:                                  FIRST NLC FINANCIAL SERVICES, LLC

                                          By: /s/ Jeffrey M. Henschel
                                              ----------------------------------
                                          Name: JEFFREY M. HENSCHEL
                                          Title: Exec Vice President

                                          NLC FINANCIAL SERVICES, LLC

                                          By: /s/ Jeffrey M. Henschel
                                              ----------------------------------
                                          Name: JEFFREY HENSCHEL
                                          Title: Exec Vice President

LENDER:                                   WASHINGTON MUTUAL BANK, FA

                                          By: /s/ Andrew Tauber
                                              ----------------------------------
                                          Name: ANDREW TAUBER
                                          Title: First Vice President

                                       6

<PAGE>

                                    EXHIBIT A

     PROCEDURES AND DOCUMENTATION FOR WAREHOUSING REPURCHASED MORTGAGE LOANS

          The following procedures and documentation requirements must be
observed in all respects by Company. All documents must be satisfactory to
Lender in its sole discretion. Terms used below, which are not otherwise
defined, shall have the meanings given them in the Loan Agreement.

          Prior to making an Advance against Eligible Repurchased Mortgage
Loans, Lender must receive the following:

          (1)  Original Request for Advance ("Exhibit "B").

          (2)  Original signed Mortgage Note, endorsed by Company in blank with
               corresponding interim endorsements, if applicable.

          (3)  Copy of the Mortgage certified by the escrow/title company or
               closing agent.

          (4)  Certified true copies of all interim assignments (recorded or
               sent for recordation) of the Mortgage.

          (5)  An Assignment of the Mortgage to Lender in recordable form but
               unrecorded.

          (6)  Copy of the Demand Letter from the Investor requiring the
               repurchase of the Repurchased Mortgage Loan and specifying the
               reasons therefor.

<PAGE>

                                    EXHIBIT B

                  ADVANCE REQUEST - REPURCHASED MORTGAGE LOANS

Mortgage Company:
                  ----------------------

Mortgagor:
           -----------------------------

Prepared by:
             ---------------------------

Address:
         -------------------------------

         -------------------------------

Note Amount:
             ---------------
Note Date:
           -----------------
Interest Rate:
               -------------
Investors:
           -----------------

Request Advance Amount:
                        ------------------

                                METHOD OF ADVANCE

( ) Wire Transfer (see attached instructions)

                             REQUIRED DOCUMENTATION
                (in addition to this Repurchase Advance Request)

Attached please find the following documents in connection with the above
request.

          .    Original Mortgage Note, endorsed in blank.
          .    Certified Copy of Mortgage.
          .    Recordable Assignment of Mortgage (in blank).
          .    All interim Assignments (if applicable).
          .    Demand Letter from Investor requiring repurchase of the
               Repurchased Mortgage Loan and specifying the reasons therefore.

     EXECUTED as of the         day of
                        -------        ----------------------, ----------

                                       ----------------------------------

                                           By:
                                               ---------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

<PAGE>

                               SIXTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Sixth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of September 28, 2001 by First NLC Financial Services,
LLC and NLC Financial Services, LLC (collectively, the "Company"), and
Washington Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby
promise and agree as follows:

     1. Amendment. The Loan Agreement is hereby amended and modified in the
following manner:

          a. Commitment. Section 2.1 (a) of the Loan Agreement is hereby amended
and restated in its entirety as follows:

          (a) Subject to the terms and conditions of this Agreement and provided
          that no Default or Event of Default has occurred and is continuing,
          Lender agrees, from time to time, during the period from the date
          hereof to and including the Termination Date, to make Advances to
          Company, provided the sum of the total aggregate principal amount
          outstanding at any one time of all such Advances shall not exceed
          TWENTY-FIVE MILLION AND NO/100 DOLLARS ($25,000,000); provided,
          however, for the period commencing August 1, 2001 and continuing
          through and including October 31, 2001, the total aggregate principal
          amount outstanding at any one time of all such Advances shall not
          exceed THIRTY FIVE MILLION AND NO/100 DOLLARS ($35,000,000). The
          obligation of Lender to make Advances hereunder up to such limit is
          hereinafter referred to as the "Commitment." Within the Commitment,
          Company may borrow, repay and reborrow. All Advances under this
          Agreement shall constitute a single indebtedness, and all of the
          Collateral shall be security for the Note and for the performance of
          all the Obligations of Company to Lender.

                                      -1-

<PAGE>

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          a. Execution and delivery by Company and each Guarantor of this
Amendment to Lender;

          b. Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

          a. All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          b. The execution and delivery by Company of this Amendment and the
performance by each of them of the transactions herein contemplated (i) are and
will be within such party's powers, (ii) have been authorized by all necessary
organizational action, and (iii) are not and will not be in contravention of any
order of any court or other agency of government, of law or any other indenture,
agreement or undertaking to which Company is a party or by which the property of
Company is bound, or be in conflict with, result in a breach of, or constitute
(with due notice and/or lapse of time) a default under any such indenture,
agreement or undertaking or result in the imposition of any lien, charge or
encumbrance of any nature on any of the properties of Company.

          c. This Amendment and any assignment, instrument, document, or
agreement executed and delivered in connection herewith, will be valid, binding
and enforceable in accordance with its respective terms.

          d. No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company hereby acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company hereby RELEASES,
RELINQUISHES and forever DISCHARGES Lender, and its predecessors, successors,
assigns, shareholders, principals, parents, subsidiaries, agents, officers,
directors, employees, attorneys and

                                       -2-

<PAGE>

representatives (collectively, the "Released Parties"), of and from any and all
claims, demands, actions and causes of action of any and every kind or
character, whether known or unknown, present or future, which Company has, or
may have against Released Parties, arising out of or with respect to any and all
transactions relating to the Loan Agreement, the Note, and the other Existing
Loan Documents occurring prior to the date hereof, including any other loss,
expense and/or detriment, of any kind or character, growing out of or in any way
connected with or in any way resulting from the acts, actions or omissions of
the Released Parties, and including any loss, cost or damage in connection with
any breach of fiduciary duty, breach of any duty of fair dealing, breach of
competence, breach of funding commitment, undue influence, duress, economic
coercion, conflict of interest, negligence, bad faith, malpractice, violations
of the Racketeer Influence and Corrupt Organizations Act, intentional or
negligent infliction of emotional or mental distress, tortious interference with
corporate governments or prospective business advantage, tortious interference
with contractual relations, breach of contract, deceptive trade practices,
libel, slander, conspiracy, the charging, contracting for, taking, reserving,
collecting or receiving of interest in excess of the highest lawful rate
applicable to the Existing Loan Documents (i.e., usury), any violations of
federal or state law, any violations of federal or state banking rules, laws or
regulations, including, but not limited to, any violations of Regulation B,
Equal Credit Opportunity, bank tying act claims or any violation of federal
antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are hereby ratified and confirmed and continue unchanged and in full
force and effect. All references to the Loan Agreement shall mean the Loan
Agreement as modified by this Amendment.

     7. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                          SIGNATURES ON FOLLOWING PAGE

                                   -3-

<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
by their respective duly authorized officers as of the date first above written.

COMPANY:                                FIRST NLC FINANCIAL SERVICES, LLC

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: JEFFREY M. HENSCHEL
                                        Title: EVP

                                        NLC FINANCIAL SERVICES, LLC

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                        Name: JEFFREY M. HENSCHEL
                                        Title: EVP

LENDER:                                 WASHINGTON MUTUAL BANK, FA

                                        By: /s/ Andrew F. Tauber
                                            ------------------------------------
                                            Andrew F. Tauber, Vice President -
                                            Director

                                      -4-

<PAGE>

---------------------------------------
BANK UNITED MBF LEGAL FILE
Customer: First NLC
Reviewed By ___       Date: 8/17/01
___ PSA AGRMNT        ___ INCORPORATION
[X] WAREHSE AGRMNT    ___ INSURANCE
__ UCC                _______________
__ GUARANTY
Other: 5th Amendment
---------------------------------------

                               FIFTH AMENDMENT TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     This Fifth Amendment to Warehousing Credit and Security Agreement
("Amendment") is dated as of August 1, 2001 by First NLC Financial Services, LLC
and NLC Financial Services, LLC (collectively, the "Company"), and Washington
Mutual Bank, FA, successor by merger to Bank United ("Lender").

                                   BACKGROUND

     A. Company and Lender are parties to a certain Warehousing Credit and
Security Agreement dated as of February 4, 2000 (as has been and may hereafter
be amended or modified from time to time, the "Loan Agreement") and related
agreements, instruments and documents (collectively, with the Loan Agreement,
the "Existing Loan Documents"). Capitalized terms used but not otherwise defined
in this Amendment shall have the meanings respectively ascribed to them in the
Loan Agreement.

     B. Company has requested that Lender amend the Loan Agreement in certain
respects, all on the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby
promise and agree as follows:

     1. Amendment. The Loan Agreement is hereby amended and modified in the
following manner:

          a. Commitment. Section 2.1 (a) of the Loan Agreement is hereby amended
and restated in its entirety as follows:

          (a) Subject to the terms and conditions of this Agreement and provided
          that no Default or Event of Default has occurred and is continuing,
          Lender agrees, from time to time, during the period from the date
          hereof to and including the Termination Date, to make Advances to
          Company, provided the sum of the total aggregate principal amount
          outstanding at any one time of all such Advances shall not exceed
          TWENTY-FIVE MILLION AND NO/100 DOLLARS ($25,000,000); provided,
          however, for the period commencing August 1, 2001 and continuing
          through and including September 15, 2001, the total aggregate
          principal amount outstanding at any one time of all such Advances
          shall not exceed THIRTY FIVE MILLION AND NO/100 DOLLARS ($35,000,000).
          The obligation of Lender to make Advances hereunder up to such limit
          is hereinafter referred to as the "Commitment." Within the Commitment,
          Company may borrow, repay and reborrow. All Advances under this

                                      -1-

<PAGE>

          Agreement shall constitute a single indebtedness, and all of the
          Collateral shall be security for the Note and for the performance of
          all the Obligations of Company to Lender.

          b. Advances. Section 2.1(c) of the Loan Agreement is hereby amended
and restated in its entirety as follows:

          (c) No Advance shall exceed the following amounts applicable to the
          type of Collateral, determined as of the date the Collateral is
          pledged to Lender. No Advance shall exceed: with respect to Subprime
          Mortgage Loans, an amount equal to [*] of the Collateral Value of such
          Mortgage Loans; with respect to Second Mortgage Loans, an amount equal
          to [*] of the Collateral Value of such Mortgage Loans; with respect to
          Subwarehouse Mortgage Loans, an amount equal to [*] of the Collateral
          Value of such Subwarehouse Mortgage Loans until the earlier to occur
          of (x) the termination of the Commitment hereunder and (y) April 30,
          2000; and with respect to Eligible Mortgage Loans subject to a
          Purchase Commitment from Lender or any of Lender's affiliates, the
          lesser of [*] of the Collateral Value of such Eligible Mortgage Loan
          or the amount set forth in the applicable Purchase Commitment.

     2. Effectiveness Conditions. This Amendment shall be effective upon the
completion of the following conditions precedent (all agreements, documents and
instruments to be in form and substance satisfactory to Lender and Lender's
counsel):

          a. Execution and delivery by Company and each Guarantor of this
Amendment to Lender;

          b. Execution and delivery by Company of an amended and restated
Promissory Note in the original principal amount of $35,000,000 ("Note");

          c. Delivery of an unanimous written consent from Company's member
authorizing the execution and delivery of this Amendment, the Note and the
transactions contemplated hereunder; and

          d. Execution and/or delivery of all other agreements, instruments and
documents requested by Lender to effectuate and implement the terms hereof and
the Existing Loan Documents.

     3. Representations and Warranties. Company represents and warrants to
Lender that:

                                      -2-

<PAGE>

          a. All warranties and representations made to Lender under the Loan
Agreement and the Existing Loan Documents are true and correct as to the date
hereof.

          b. The execution and delivery by Company of this Amendment, the Note
and the performance by each of them of the transactions herein contemplated (i)
are and will be within such party's powers, (ii) have been authorized by all
necessary organizational action, and (iii) are not and will not be in
contravention of any order of any court or other agency of government, of law or
any other indenture, agreement or undertaking to which Company is a party or by
which the property of Company is bound, or be in conflict with, result in a
breach of, or constitute (with due notice and/or lapse of time) a default under
any such indenture, agreement or undertaking or result in the imposition of any
lien, charge or encumbrance of any nature on any of the properties of Company.

          c. This Amendment, the Note and any assignment, instrument, document,
or agreement executed and delivered in connection herewith, will be valid,
binding and enforceable in accordance with its respective terms.

          d. No Event of Default or Default has occurred under the Loan
Agreement or any of the other Existing Loan Documents.

     4. Representations and Release of Claims. Except as otherwise specified
herein, the terms and provisions hereof shall in no manner impair, limit,
restrict or otherwise affect the obligations of Company, or any third party to
Lender as evidenced by the Existing Loan Documents. Company hereby acknowledges,
agrees, and represents that (a) there are no claims or offsets against, or
defenses or counterclaims to, the terms or provisions of the Existing Loan
Documents, and the other obligations created or evidenced by the Existing Loan
Documents; (b) Company has no claims, offsets, defenses or counterclaims arising
from any of Lender's acts or omissions with respect to the Existing Loan
Documents, or Lender's performance under the Existing Loan Documents; and (c)
Company promises to pay to the order of Lender the indebtedness evidenced by the
Note according to the terms thereof. In consideration of the modification of
certain provisions of the Existing Loan Documents, all as herein provided, and
the other benefits received by Company hereunder, Company hereby RELEASES,
RELINQUISHES and forever DISCHARGES Lender, and its predecessors, successors,
assigns, shareholders, principals, parents, subsidiaries, agents, officers,
directors, employees, attorneys and representatives (collectively, the "Released
Parties"), of and from any and all claims, demands, actions and causes of action
of any and every kind or character, whether known or unknown, present or future,
which Company has, or may have against Released Parties, arising out of or with
respect to any and all transactions relating to the Loan Agreement, the Note,
and the other Existing Loan Documents occurring prior to the date hereof,
including any other loss, expense and/or detriment, of any kind or character,
growing out of or in any way connected with or in any way resulting from the
acts, actions or omissions of the Released Parties, and including any loss, cost
or damage in connection with any breach of fiduciary duty, breach of any duty of
fair dealing, breach of competence, breach of funding commitment, undue
influence, duress, economic coercion, conflict of interest, negligence, bad
faith, malpractice, violations of the Racketeer Influence and Corrupt

                                      -3-

<PAGE>

Organizations Act, intentional or negligent infliction of emotional or mental
distress, tortious interference with corporate governments or prospective
business advantage, tortious interference with contractual relations, breach of
contract, deceptive trade practices, libel, slander, conspiracy, the charging,
contracting for, taking, reserving, collecting or receiving of interest in
excess of the highest lawful rate applicable to the Existing Loan Documents
(i.e., usury), any violations of federal or state law, any violations of federal
or state banking rules, laws or regulations, including, but not limited to, any
violations of Regulation B, Equal Credit Opportunity, bank tying act claims or
any violation of federal antitrust acts.

     5. Collateral. As security for the payment of the Company's Obligations
under the Loan Agreement, and satisfaction by Company of all covenants and
undertakings contained in the Loan Agreement and the Existing Loan Documents,
Company acknowledges Lender's prior security interest and lien in and to all of
the Collateral.

     6. Ratification of Existing Loan Documents. Except as expressly set forth
herein, all of the terms and conditions of the Loan Agreement and Existing Loan
Documents are hereby ratified and confirmed and continue unchanged and in full
force and effect. All references to the Loan Agreement shall mean the Loan
Agreement as modified by this Amendment.

     7. Governing Law. This Amendment shall be governed by, construed and
enforced in accordance with the laws of the State of Texas, excluding its
conflict of laws rules.

     8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts together shall constitute one and the same respective
agreement. Signature by facsimile shall also bind the parties hereto.

                          SIGNATURES ON FOLLOWING PAGE

                                      -4-

<PAGE>

     IN WITNESS  WHEREOF,  the parties have caused this Amendment to be executed
by their respective duly authorized officers as of the date first above written

COMPANY:                               FIRST NLC FINANCIAL SERVICES, LLC

                                       By: /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                       Name: JEFFREY M. HENSCHEL
                                       Title: Exec Vice Pres

                                       NLC FINANCIAL SERVICES, LLC

                                       By: /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                       Name: JEFFREY M. HENSCHEL
                                       Title: Exec Vice Pres

LENDER:                                WASHINGTON MUTUAL BANK, FA

                                       By: /s/ Sonya S. Faivre
                                           -------------------------------------
                                           Sonya S. Faivre
                                           Vice President

                                      -5-

<PAGE>

                                         ---------------------------------------
                                         BANK UNITED MBF LEGAL FILE
                                         Customer: __________________________
                                         Reviewed By: ___       Date: 6/12/01
                                         ___ PSA AGRMNT        ___ INCORPORATION
                                         ___ WAREHSE AGRMNT    ___ INSURANCE
                                         ___ UCC               ___ OPINION LTR
                                         ___ GUARANTY
                                         Other: _____________________________
                                         ---------------------------------------

                               AMENDMENT NO. 4 TO
                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     THIS AMENDMENT ("Amendment"), dated as of June 1, 2001, is by and among
FIRST NLC FINANCIAL SERVICES, LLC (f/k/a BANK NLC MORTGAGE LENDING, LLC) and NLC
FINANCIAL SERVICES, LLC, (collectively, the "Borrower") and WASHINGTON MUTUAL
BANK, FA, a federal association (as Lender).

                                   BACKGROUND

     A. The Borrower and Lender (f/k/a Bank United) are parties to that certain
Warehousing Credit and Security Agreement dated as of February 4, 2000 (as
amended from time to time, the "Agreement").

     B. The Borrower and Lender desire to amend the Agreement to extend the
Termination Date and to make certain other changes set forth herein.

     C. All capitalized terms used herein and not otherwise defined herein shall
have the meanings given to them in the Agreement.

     NOW, THEREFORE, the foregoing Background Section being incorporated by
reference, the parties hereto agree as follows:

     1. Section 1.1 is amended as follows with the replacement of the following
term:

          ""Termination Date" shall mean May 31, 2002."

     2. Section 2.1 (a) is amended in its entirety as follows:

          "Subject to the terms and conditions of this Agreement and provided
     that no Default or Event of Default has occurred and is continuing, the
     Lender agrees, from time to time during the period from the date hereof to
     and including the Termination Date, to make Advances to the Company,
     provided the sum of the total aggregate principal amount outstanding at any
     one time of all such Advances shall not exceed TWENTY FIVE MILLION DOLLARS
     ($25,000,000.00), provided that through and including July 31, 2001, such
     amount shall not exceed THIRTY-FIVE MILLION DOLLARS ($35,000,000.00). The
     obligation of the Lender to make Advances hereunder up to such limit is
     hereinafter referred to as the "Commitment." Within the Commitment, the
     Company may borrow, repay and reborrow. All Advances under this Agreement
     shall constitute a single indebtedness, and all of the Collateral shall be
     security for the Note and for the performance of all the Obligations of the
     Company to the Lender."

     3. Section 2.1 (c) is amended to add the following sentence:

     "No Advance with respect to a Mortgage Loan subject to a Purchase
Commitment shall exceed an amount equal to [*] of the Collateral Value of such
Mortgage

<PAGE>

Loan."

     4. Section 7.6 is amended in its entirety as follows:

          "7.6 Minimum Adjusted Tangible Net Worth. Permit Adjusted Tangible Net
     Worth of the Company (and its Subsidiaries, on a consolidated basis) to be
     less than (i) One Million, Five Hundred Thousand Dollars ($1,500,000.00)
     computed as of September 30, 2000, and October 31, 2000, (ii) One Million,
     Seven Hundred Fifty Thousand Dollars ($1,750,000.00) computed as of
     November 30, 2000, (iii) Two Million Dollars ($2,000,000.00) computed as of
     December 31, 2000, and as of the end of each calendar month thereafter
     through and including the date this Amendment becomes effective, and (iv)
     Three Million Six Hundred Thousand Dollars ($3,600,000.00) as of the date
     of this Amendment becomes effective and at the end of each calendar month
     thereafter. Beginning at the end of the calendar month following the month
     in which this Amendment becomes effective, the Minimum Adjusted Tangible
     Net Worth shall be increased by 50% of quarterly net income. Provided
     Lender maintains the covenants set forth in this Agreement and is otherwise
     not in Default, once the Adjusted Tangible Net Worth of the Company reaches
     Five Million Dollars ($5,000,000.00), Borrower shall be permitted to pay
     off the principal of the subordinated debt previously incurred by Borrower
     with the written approval of Lender."

     5. This Amendment shall only be effective upon Lender's receipt of the
following:

          a)   a copy of this Amendment No. 4 duly executed by the Borrower;

          b)   an original Amended and Restated Promissory Note (the "Note") in
               the form attached hereto as Exhibit A;

          c)   evidence acceptable to Lender in its sole discretion that the
               Borrower has taken all necessary corporate action to authorize
               the execution of this Amendment and any other document executed
               in connection herewith;

          d)   The Borrower shall have paid all fees, expenses and costs due to
               or advanced by Lender through the date hereof.

     6. The Borrower has advised Lender that Defaults have occurred under
Sections 7.5 and 7.6 of the Agreement for the period ending March 31, 2001 due
to Borrower's failure to comply with the financial covenants set forth therein
during such period. Upon the date on which this Amendment becomes effective,
Lender hereby waives the Borrower's Events of Default described in the foregoing
sentence (the "Existing Defaults"). The waiver of the Existing Defaults set
forth above is limited to the express terms thereof, and nothing herein shall be
deemed to be a waiver of by Lender of any other term, condition, representation
or covenant applicable to the Borrower under the Agreement (including but not
limited to any future occurrence similar to the Existing Defaults) or any of the
other agreements, documents or the covenants described therein. The waivers set
forth herein shall not constitute a waiver by the Lender of any other Event of
Default or noncompliance by Borrower, if any, under the Agreement, and shall not
be, and shall not be deemed to be, a course of action with respect thereto upon
which the Borrower may rely in the future, and the Borrower hereby expressly
waives any claim to such effect.

                                      -2-

<PAGE>

     7. The Borrower hereby ratifies and reaffirms the representations and
warranties set forth in Article V of the Agreement as being true and correct as
of the date hereof.

     8. The Borrower acknowledges, represents, warrants and agrees that (i) the
Borrower's Obligations to Lender and liens granted to secure such Obligations
are valid and perfected in accordance with applicable law; (ii) the Borrower's
Obligations to Lender are not subject to any setoff, defense, claim,
counterclaim, recoupment, or avoidance and/or subordination under the Bankruptcy
Code or otherwise; and (iii) the Borrower holds no claims against Lender, its
officers, agents, directors, representatives, attorneys, or any of their
respective heirs, successors and assigns (collectively, the "Lender Parties")
with respect to the Loan Documents. To the extent that the Borrower holds any
claims against one of more of the Lender Parties, arising under the Loan
Documents and extension of credit or administration thereof, collection of
amounts due thereunder, or any applications, discussions, as consideration for
Lender's undertakings under the Agreement or this Amendment, the Borrower hereby
unconditionally forever releases, discharges, and acquits the Lender Parties of
any and all claims, breaches of contract, debts, suits, demands, causes of
actions and actions of any type or notice which arose or are based on
occurrences or transactions which took place prior to the date of this
Amendment, whether known or unknown, contingent or liquidated, suspected or
unsuspected, at law or in equity, or based in contract or tort. The Borrower
acknowledges and represents that it has received the advice of counsel in
connection with this acknowledgment and release and has voluntarily entered into
this acknowledgement and release.

     9. Except as amended hereby, all of the terms and conditions of the
Agreement and the obligations of the Borrower under the Note are ratified and
confirmed, and the Agreement shall continue in full force and effect in
accordance with its terms.

     10. This Amendment may be executed in counterparts, all of which
counterparts, when taken together, will constitute the entire agreement.

                                      - 3 -

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the date set forth above.

                                        FIRST NLC FINANCIAL SERVICES, LLC

                                        By /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                        Its EVP

                                        NLC FINANCIAL SERVICES, LLC

                                        By /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                        Its EVP

                                        WASHINGTON MUTUAL BANK, FA

                                        By /s/ Illegible
                                           -------------------------------------
                                        Its Vice President

                                      - 4 -

<PAGE>

                                                                       EXHIBIT A

                      AMENDED AND RESTATED PROMISSORY NOTE

$35,000,000.00                   Houston, Texas                           , 2001
                                                             -------------

     FOR VALUE RECEIVED, the undersigned, FIRST NLC FINANCIAL SERVICES, LLC
(f/k/a BANC NLC MORTGAGE LENDING, LLC), a Florida limited liability company and
NLC FINANCIAL SERVICES, LLC, jointly and severally (herein called the
"Borrower"), hereby promises to pay to the order of WASHINGTON MUTUAL BANK, FA,
a federal association, (the "Lender" or, together with its successors and
assigns, the "Holder") whose principal place of business is 3200 Southwest
Freeway, Suite 2702, Houston, Texas 77027, ATTN: Mortgage Banker Finance, or at
such other place as the Holder may designate from time to time, the principal
sum of THIRTY-FIVE MILLION AND NO/100 DOLLARS ($35,000,000.00) or so much
thereof as may be outstanding from time to time pursuant to the Warehousing
Credit and Security Agreement (the "Agreement") dated as of February 4, 2000
between the Borrower and the Lender, as the same has been amended and
supplemented or may be amended or supplemented from time to time, and to pay
interest on said principal sum or such part thereof as shall remain unpaid from
time to time, from the date of each Advance until repaid in full, and all other
fees and charges due under the Agreement, at the rate and at the times set forth
in the Agreement. All payments hereunder shall be made in lawful money of the
United States and in immediately available funds.

     This Note is given to evidence an actual warehouse line of credit in the
above amount and is the Note referred to in the Agreement, and is entitled to
the benefits thereof. Reference is hereby made to the Agreement (which is
incorporated herein by reference as fully and with the same effect as if set
forth herein at length) for a description of the Collateral, required payments
of principal and interest on this Note, a statement of the covenants and
agreements, a statement of the rights and remedies and securities afforded
thereby and other matters contained therein. Capitalized terms used herein,
unless otherwise defined herein, shall have the meanings given them in the
Agreement.

     This Note is given in replacement of that certain February 4, 2000
promissory note executed by the Borrower in the original principal sum of
$25,000,000 (the "Prior Note") and as subsequently amended and restated. All
liens, security interests and assignments securing the Prior Note and any other
note under the Agreement are hereby ratified, confirmed, renewed, extended and
carried forward as security for the repayment of this Note, in addition to and
cumulative of all other security.

     The entire unpaid principal balance of this Note plus all accrued and
unpaid interest shall be due and payable in full on May 31, 2002 or such earlier
date set forth in the Agreement.

     This Note may be prepaid in whole or in part at any time without premium or
penalty.

                                      - 5 -

<PAGE>

     Should this Note be placed in the hands of attorneys for collection, the
Borrower agrees to pay, in addition to principal and interest, fees and charges
due under the Agreement, and all costs of collecting this Note, including
reasonable attorneys' fees and expenses.

     This Note shall be construed and enforced in accordance with the laws of
the State of Texas, without reference to its principles of conflicts of law, and
applicable federal laws of the United States of America.

     This Note is secured by all security agreements, collateral assignments,
deeds of trust and lien instruments executed by the Borrower in favor of Lender,
or executed by any other Person as security for this Note, including any
executed prior to, simultaneously with, or after the date of this Note and
including, without limitation, the Security Documents.

     The Borrower and any and each co-maker, guarantor, accommodation party,
endorser or other Person liable for the payment or collection of this Note
expressly waive notice, presentment, demand for payment, protest, notice of
protest and non-payment or dishonor, notice of acceleration, notice of intent to
accelerate, notice of intent to demand, bringing of suit, and diligence in
taking any action to collect amounts called for hereunder and in the handling of
Collateral at any time existing as security in connection herewith, and shall be
directly and primarily liable for the payment of all sums owing and to be owing
hereon, regardless of and without any notice, diligence, act or omission as or
with respect to the collection of any amount called for hereunder or in
connection with any Lien at any time had or existing as security for any amount
called for hereunder.

     It is the intention of the parties hereto to conform strictly to usury laws
applicable to the Lender. Accordingly, if the transactions contemplated hereby
would be usurious under applicable law (including the laws of the United States
of America and the State of Texas), then, in that event, notwithstanding
anything to the contrary herein or in the Agreement or in any other Loan
Document or agreement entered into in connection with or as security for this
Note, it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under law applicable to the Lender that is contracted for,
taken, reserved, charged, or received herein or under the Agreement or under any
of the other aforesaid Loan Documents or agreements or otherwise in connection
herewith shall under no circumstances exceed the maximum amount allowed by such
applicable law, and any excess shall be credited by the Lender on the principal
amount of the Obligations (or, if the principal amount of the Obligations shall
have been paid in full, refunded by the Lender to the Borrower, as required);
and (ii) in the event that the maturity of this Note is accelerated by reason of
an election of the required or permitted prepayment, then such consideration
that constitutes interest under law applicable to the Lender may never include
more than the maximum amount allowed by such applicable law, and excess
interest, if any, provided for in the Agreement or otherwise shall be canceled
automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited by the Lender on the principal amount of the
Obligations (or, if the principal amount of the Obligations shall have been paid
in full, refunded by the Lender to the Borrower, as required). Without limiting
the foregoing, all calculations of the rate of interest taken, reserved,
contracted for, charged, received or provided for under this Note or any of the
Loan Documents which are made for the purpose of determining whether the
interest rate exceeds the Maximum Rate shall be made, to the extent

                                      -6-

<PAGE>

allowed by law, by amortizing, prorating, allocating and spreading in equal
parts during the period of the full stated term of the loan evidenced hereby,
all interest at any time taken, reserved, contracted for, charged, received, or
provided for under this Note or any of the Loan Documents. To the extent that
the Section 303 of the Texas Finance Code is relevant for purposes of
determining the Maximum Rate, the Lender hereby elects to determine the
applicable rate ceiling under such statute by the weekly rate ceiling from time
to time in effect, subject to the Lender's right subsequently to change such
method in accordance with applicable law.

                                              FIRST NLC FINANCIAL SERVICES, LLC

                                              By:
                                                  ------------------------------
                                                  Name:
                                                  Title:

                                              NLC FINANCIAL SERVICES, LLC

                                              By:
                                                  ------------------------------
                                                  Name:
                                                  Title:

                                      -7-

<PAGE>

                                         ---------------------------------------
                                         BANK UNITED MBF LEGAL FILE
                                         Customer: __________________________
                                         Reviewed By: ___       Date: 2/2/01
                                         ___ PSA AGRMNT        ___ INCORPORATION
                                         ___ WAREHSE AGRMNT    ___ INSURANCE
                                         ___ UCC               ___ OPINION LTR
                                         ___ GUARANTY
                                                                 amendment#3
                                                                    _________
                                         Other: _____________________________
                                         ---------------------------------------

                                AMENDMENT NO. 3 TO
                        WAREHOUSING CREDIT AND SECURITY AGGREMENT

     THIS AMENDMENT ("Amendment"), dated as of February 2001 is by and among
FIRST NCL FINANCIAL SERVICES, LLC (f/k/a BANK NCL MORTGAGE LENDING, LLC) and
NCL FINANCIAL SERVICES, LLC, (collectively, the "Borrower") and BANK UNITED, a
federal savings bank (as Lender).

                                   BACKGROUND

     A. The Borrower and Lender are parties to that certain Warehousing Credit
and Security Agreement dated as of February 4, 2000 (as amended from time to
time, the "Agreement")

     B. The Borrower and Lender desire to amend the Agreement to extend the
Termination Date and re-establish the original size of the Commitment as set
forth herein.

     C. All capitalized terms used herein and not otherwise defined herein shall
have the meanings given to them in the Agreement.

     NOW, THEREFORE, the foregoing Background Section being incorporated by
reference, the parties hereto agree as follows:

     1. Section 2.1 (a) is amended in its entirety as follows:

          Subject to the terms and conditions of this Agreement and provided
     that no Default or Event of Default has occurred and is continuing, the
     Lenders agrees, from time to time during the period from the date hereof to
     and including the Termination Date, to make Advances to the Company,
     provided the sum of the total aggregate principal amount outstanding at any
     one of all such Advances shall not exceed TWENTY-FIVE MILLION AND NO/100
     DOLLARS ($25,000,000.00). The obligation of the Lender to make Advances
     hereunder up to such limit is herein after referred to as the "Commitment."
     Within the Commitment, the Company may borrow, repay and reborrow. All
     Advances under this Agreement shall constitute a single indebtedness, and
     all of the collateral shall be security for the Note and for the
     performance of all the Obligation of the Company to the Lender.

     2. Section 1.1, the definition of "Termination Date" is amended in its
entirely as follows:

          "Termination Date" shall mean April 30, 2001, or such earlier date
     upon which Lender's obligation to fund shall be terminated pursuant to the
     terms of this Agreement."

     3. This Amendment shall only be effective upon Lender's receipt of the
following:

<PAGE>

               a)   a copy of this Amendment No. 3 duly executed by the
                    Borrower;

               b)   an original Amended and Restated Promissory Note (the
                    "Note") in the form attached hereto as Exhibit A;

               c)   evidence acceptable to Lender in its sole discretion that
                    the Borrower has taken all necessary corporate action to
                    authorize the execution of this Amendment and any other
                    document executed in connection herewith;

               d)   The Borrower shall have paid all fees, expenses and costs
                    due to or advanced by Lender through the date hereof.

     4. The Borrower hereby ratifies and reaffirms the representations and
warranties set forth in Article V of the Agreement as being true and correct as
of the date hereof.

     5. The Borrower acknowledges, represents, warrants and agrees that (i) the
Borrower's Obligations to Lender and liens granted to secure such Obligations
are valid and perfected in accordance with applicable law; (ii) the Borrower's
Obligations to Lender are not subject to any setoff, defense, claim,
counterclaim, recoupment, or avoidance and/or subordination under the Bankruptcy
Code or otherwise; and (iii) the Borrower holds no claims against Bank United,
its officers, agents, directors, representatives, attorneys, or any of their
respective heirs, successors and assigns (collectively, the "Lender Parties")
with respect to the Loan Documents. To the extent that the Borrower holds any
claims against one of more of the Lender Parties, arising under the Loan
Documents and extension of credit or administration thereof, collection of
amounts due thereunder, or any applications, discussions, as consideration for
Lender's undertakings under the Agreement or this Amendment, the Borrower hereby
unconditionally forever releases, discharges, and acquits the Lender Parties of
any and all claims, breaches of contract, debts, suits, demands, causes of
actions and actions of any type or notice which arose or are based on
occurrences or transactions which took place prior to the date of this
Amendment, whether known or unknown, contingent or liquidated, suspected or
unsuspected, at law or in equity, or based in contract or tort. The Borrower
acknowledges and represents that it has received the advice of counsel in
connection with this acknowledgment and release and has voluntarily entered into
this acknowledgement and release.

     6. Except as amended hereby, all of the terms and conditions of the
Agreement and the obligations of the Borrower under the Note are ratified and
confirmed, and the Agreement shall continue in full force and effect in
accordance with its terms.

     7. This Amendment may be executed in counterparts, all of which
counterparts, when taken together, will constitute the entire agreement.

                                      - 2 -

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the date set forth above.

                                        FIRST NLC FINANCIAL SERVICES, LLC

                                        By /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                        Its Exec Vice Pres

                                        NLC FINANCIAL SERVICES, LLC

                                        By /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                        Its Exec Vice Pres

                                        BANK UNITED

                                        By /s/ Illegible
                                           -------------------------------------
                                        Its VP

                                      - 3 -

<PAGE>

                                                                       EXHIBIT A

                      AMENDED AND RESTATED PROMISSORY NOTE

$25,000,000.00            Houston, Texas          As first issued on February 4,
                                                  2000 and reissued on
                                                  February 1,2001

     FOR VALUE RECEIVED, the undersigned, FIRST NLC FINANCIAL SERVICES, LLC
(f/k/a BANC NLC MORTGAGE LENDING, LLC), a Florida limited liability company and
NLC FINANCIAL SERVICES, LLC, jointly and severally (herein called the
"Borrower"), hereby promises to pay to the order of BANK UNITED, a federal
savings bank (the "Lender" or, together with its successors and assigns, the
"Holder") whose principal place of business is 3200 Southwest Freeway, Suite
2702, Houston, Texas 77027, ATTN: Mortgage Banker Finance, or at such other
place as the Holder may designate from time to time, the principal sum of
TWENTY-FIVE MILLION AND NO/100 DOLLARS ($25,000,000.00) or so much thereof as
may be outstanding from time to time pursuant to the Warehousing Credit and
Security Agreement (the "Agreement") dated as of February 4, 2000 between the
Borrower and the Lender, as the same has been amended and supplemented or may be
amended or supplemented from time to time, and to pay interest on said principal
sum or such part thereof as shall remain unpaid from time to time, from the date
of each Advance until repaid in full, and all other fees and charges due under
the Agreement, at the rate and at the times set forth in the Agreement. All
payments hereunder shall be made in lawful money of the United States and in
immediately available funds.

     This Note is given to evidence an actual warehouse line of credit in the
above amount and is the Note referred to in the Agreement, and is entitled to
the benefits thereof. Reference is hereby made to the Agreement (which is
incorporated herein by reference as fully and with the same effect as if set
forth herein at length) for a description of the Collateral, required payments
of principal and interest on this Note, a statement of the covenants and
agreements, a statement of the rights and remedies and securities afforded
thereby and other matters contained therein. Capitalized terms used herein,
unless otherwise defined herein, shall have the meanings given them in the
Agreement.

     This Note is given in replacement of that certain February 4, 2000
promissory note executed by the Borrower in the original principal sum of
$25,000,000 (the "Prior Note"). All liens, security interests and assignments
securing the Prior Note and any other note under the Agreement are hereby
ratified, confirmed, renewed, extended and carried forward as security for the
repayment of this Note, in addition to and cumulative of all other security.

     The entire unpaid principal balance of this Note plus all accrued and
unpaid interest shall be due and payable in full on May 30, 2001 or such earlier
date set forth in the Agreement.

     This Note may be prepaid in whole or in part at any time without premium or
penalty.

                                      - 4 -

<PAGE>

     Should this Note be placed in the hands of attorneys for collection, the
Borrower agrees to pay, in addition to principal and interest, fees and charges
due under the Agreement, and all costs of collecting this Note, including
reasonable attorneys' fees and expenses.

     This Note shall be construed and enforced in accordance with the laws of
the State of Texas, without reference to its principles of conflicts of law, and
applicable federal laws of the United States of America.

     This Note is secured by all security agreements, collateral assignments,
deeds of trust and lien instruments executed by the Borrower in favor of Lender,
or executed by any other Person as security for this Note, including any
executed prior to, simultaneously with, or after the date of this Note and
including, without limitation, the Security Documents.

     The Borrower and any and each co-maker, guarantor, accommodation party,
endorser or other Person liable for the payment or collection of this Note
expressly waive notice, presentment, demand for payment, protest, notice of
protest and non-payment or dishonor, notice of acceleration, notice of intent to
accelerate, notice of intent to demand, bringing of suit, and diligence in
taking any action to collect amounts called for hereunder and in the handling of
Collateral at any time existing as security in connection herewith, and shall be
directly and primarily liable for the payment of all sums owing and to be owing
hereon, regardless of and without any notice, diligence, act or omission as or
with respect to the collection of any amount called for hereunder or in
connection with any Lien at any time had or existing as security for any amount
called for hereunder.

     It is the intention of the parties hereto to conform strictly to usury laws
applicable to the Lender. Accordingly, if the transactions contemplated hereby
would be usurious under applicable law (including the laws of the United States
of America and the State of Texas), then, in that event, notwithstanding
anything to the contrary herein or in the Agreement or in any other Loan
Document or agreement entered into in connection with or as security for this
Note, it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under law applicable to the Lender that is contracted for,
taken, reserved, charged, or received herein or under the Agreement or under any
of the other aforesaid Loan Documents or agreements or otherwise in connection
herewith shall under no circumstances exceed the maximum amount allowed by such
applicable law, and any excess shall be credited by the Lender on the principal
amount of the Obligations (or, if the principal amount of the Obligations shall
have been paid in full, refunded by the Lender to the Borrower, as required);
and (ii) in the event that the maturity of this Note is accelerated by reason of
an election of the required or permitted prepayment, then such consideration
that constitutes interest under law applicable to the Lender may never include
more than the maximum amount allowed by such applicable law, and excess
interest, if any, provided for in the Agreement or otherwise shall be canceled
automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited by the Lender on the principal amount of the
Obligations (or, if the principal amount of the Obligations shall have been paid
in full, refunded by the Lender to the Borrower, as required). Without limiting
the foregoing, all calculations of the rate of interest taken, reserved,
contracted for, charged, received or provided for under this Note or any of the
Loan Documents which are made for the purpose of determining whether the
interest rate exceeds the Maximum Rate shall be made, to the extent

                                       -5-

<PAGE>

allowed by law, by amortizing, prorating, allocating and spreading in equal
parts during the period of the full stated term of the loan evidenced hereby,
all interest at any time taken, reserved, contracted for, charged, received, or
provided for under this Note or any of the Loan Documents. To the extent that
the Section 303 of the Texas Finance Code is relevant for purposes of
determining the Maximum Rate, the Lender hereby elects to determine the
applicable rate ceiling under such statute by the weekly rate ceiling from time
to time in effect, subject to the Lender's right subsequently to change such
method in accordance with applicable law.

                                             FIRST NLC FINANCIAL SERVICES, LLC

                                             By: /s/ Jeffrey M. Henschel
                                                 -------------------------------
                                                 Name: Jeffrey M. Henschel
                                                 Title: Exec. Vice President

                                             NLC FINANCIAL SERVICES, LLC

                                             By: /s/ Jeffrey M. Henschel
                                                 -------------------------------
                                                 Name: Jeffrey M. Henschel
                                                 Title: Exec. Vice President

                                       -6-

<PAGE>

                                         ---------------------------------------
                                         BANK UNITED MBF LEGAL FILE
                                         Customer: ___________________________
                                         Reviewed By: ___       Date: 12/13/00
                                         ___ PSA AGRMNT        ___ INCORPORATION
                                         ___ WAREHSE AGRMNT    ___ INSURANCE
                                         ___ UCC               ___ OPINION LTR
                                         ___ GUARANTY
                                         Other: _____________________________
                                         ---------------------------------------

                               AMENDMENT NO. 2 TO
                 WAREHOUSING CREDIT AND SECURITY AGREEMENT

     THIS AMENDMENT ("Amendment"), dapted as of December 7, 2000, is by and
among FIRST NLC FINANCIAL SERVICES, LLC (f/k/a BANK NLC MORTGAGE LENDING, LLC)
and NLC FINANCIAL SERVICES, LLC, (collectively, the "Borrower") and BANK UNITED,
a federal savings bank (as Lender).

                                   BACKGROUND

     A. The Borrower and Lender are parties to that certain Warehousing Credit
and Security Arrangement dated as of February 4, 2000 (as amended by Amendment
Number 1 dated as of September 25, 2000 and as amended from time to time, the
"Agreement").

     B. The Borrower and Lender desire to amend the Agreement as set forth
herein.

     C. All capitalized terms used herein and not otherwise defined herein shall
have the meanings given to them in the Agreement.

     NOW, THEREFORE, the foregoing Background Section being incorporated by
reference, the parties hereto agree as follows:

     1. Section 2.1(a) is amended in its entirety as follows:

          Subject to the terms and conditions of this Agreement and provided
     that no Default or Event of Default has occured and is continuing, the
     Lender agrees, from time to time during the period from the date hereof to
     and including the Termination Date, to make Advances to the Company,
     provided the sum of the total aggregate principal amount outstanding at any
     one time of all such Advances shall not exceed THIRTY-FIVE MILLION AND
     NO/100 DOLLARS ($35,000,000.00). The obligation of the Lender to make
     Advance hereunder up to such limit is hereinafter referred to as the
     "Commitment." Within the Commitment, the Company may borrow, repay and
     reborrow. All Advances under this Agreement shall constitute a single
     indebtedness, and all of the Collateral shall be security for the Note and
     for the performance of all the Obligations of the Company to the Lender.

     2. Section 7.5 is amended in its entirety as follows:

          7.5 Indebtedness to Tangible Net Worth Ratio. Permit the ratio of
     Indebtedness to Tangible Net Worth of the Company (and its Subsidiaries, on
     a consolidated basis) to exceed: (i) 18:1 at September 30, 2000 and October
     31, 2000, (ii) 16:1 at November 30, 2000, and (iii) 15:1 at December 31,
     2000 and at the end of each calendar month thereafter.

     3. Section 7.6 is amended in its entirety as follows:

          7.6 Minimum Adjusted Tangible Net Worth. Permit Adjusted Tangible Net

<PAGE>

     Worth of the Company (and its Subsidiaries, on a consolidated basis) to be
     less than (i) One Million, Five Hundred Thousand Dollars ($1,500,000.00)
     computed as of September 30, 2000, and October 31, 2000, (ii) One Million,
     Seven Hundred Fifty Thousand Dollars ($1,750,000,000.00) computed as of
     November 30, 2000, (iii) Two Million Dollars ($2,000,000.00) computed as of
     December 31, 2000, and as of the end of each calendar month thereafter
     through and including May 31, 2000, and (iv) Two Million Two Hundred Fifty
     Thousand Dollars ($2,250,000.00) as of June 30, 2001 and at the end of each
     calendar month thereafter.

     4. The second sentence of Section 2.3 is amended in its entirety as
follows:

     "The term "Note" shall include all extensions, renewals and modifications
     of the Note, the Supplemental Note (as defined herein) and all
     substitutions therefor."

     5. This Amendment shall only be effective upon Lender's receipt of the
following:

          a)   a copy of this Amendment No. 2 duly executed by the Borrower;

          b)   an original Borrowers Supplemental Note (the "Supplemental Note")
               in the form attached hereto as Exhibit A;

          c)   evidence acceptable to Lender in its sole discretion that the
               Borrower has taken all necessary corporate action to authorize
               the execution of this Amendment and any other document executed
               in connection herewith;

          d)   The Borrower shall have paid all fees, expenses and costs due to
               or advanced by Lender through the date hereof.

     6. The Borrower hereby ratifies and reaffirms the representations and
warranties set forth in Article V of the Agreement as being true and correct as
of the date hereof.

     7. The Borrower acknowledges, represents, warrants and agrees that (i) the
Borrower's Obligations to Lender and liens granted to secure such Obligations
are valid and perfected in accordance with applicable law; (ii) the Borrower's
Obligations to Lender are not subject to any setoff, defense, claim,
counterclaim, recoupment, or avoidance and/or subordination under the Bankruptcy
Code or otherwise; and (iii) the Borrower holds no claims against Bank United,
its officers, agents, directors, representatives, attorneys, or any of their
respective heirs, successors and assigns (collectively, the "Lender Parties")
with respect to the Loan Documents. To the extent that the Borrower holds any
claims against one of more of the Lender Parties, arising under the Loan
Documents and extension of credit or administration thereof, collection of
amounts due thereunder, or any applications, discussions, as consideration for
Lender's undertakings under the Agreement or this Amendment, the Borrower hereby
unconditionally forever releases, discharges, and acquits the Lender Parties of
any and all claims, breaches of contract, debts, suits, demands, causes of
actions and actions of any type or notice which arose or are based on
occurrences or transactions which took place prior to the date of this
Amendment, whether known or unknown, contingent or liquidated, suspected or
unsuspected, at law or in equity, or based in contract or tort. The Borrower
acknowledges and represents that it

                                      -2-

<PAGE>

has received the advice of counsel in connection with this acknowledgment and
release and has voluntarily entered into this acknowledgement and release.

     8. Except as amended hereby, all of the terms and conditions of the
Agreement and the obligations of the Borrower under the Note are ratified and
confirmed, and the Agreement shall continue in full force and effect in
accordance with its terms.

     9. This Amendment may be executed in counterparts, all of which
counterparts, when taken together, will constitute the entire agreement.

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the date set forth above.

                                               FIRST NCL FINANCIAL SERVICES, LLC

                                               By /s/ Jeffrey M. Henschel
                                                  ------------------------------
                                               Its EVP

                                               NCL FINANCIAL SERVICES, LLC

                                               By /s/ Jeffrey M. Henschel
                                                  ------------------------------
                                               Its Illegible

                                               BANK UNITED

                                               By /s/ Illegible
                                                  ------------------------------
                                               Its Vice President - Director

                                      -3-

<PAGE>

                                                                       EXHIBIT A

                          SUPPLEMENTAL PROMISSORY NOTE

$10,000,000.00                  Houston, Texas            As of December  , 2000

     FOR VALUE RECEIVED, the undersigned, BANK NLC MORTGAGE LENDING, LLC, a
Florida limited liability company and NLC FINANCIAL SERVICES, LLC, jointly and
severally (herein called the "Borrower"), hereby promises to pay to the order of
BANK UNITED, a federal savings bank (the "Lender" or, together with its
successors and assigns, the "Holder") whose principal place of business is 3200
Southwest Freeway, Suite 2702, Houston, Texas 77027, ATTN: Mortgage Banker
Finance, or at such other place as the Holder may designate from time to time,
the principal sum of TEN MILLION AND NO/100 DOLLARS ($10,000,000.00) or so much
thereof as may be outstanding from time to time pursuant to the Warehousing
Credit and Security Agreement (the "Agreement") dated of even date herewith
between the Borrower and the Lender, as the same has been amended and
supplemented or may be amended or supplemented from time to time, and to pay
interest on said principal sum or such part thereof as shall remain unpaid from
time to time, from the date of each Advance until repaid in full, and all other
fees and charges due under the Agreement, at the rate and at the times set forth
in the Agreement. All payments hereunder shall be made in lawful money of the
United States and in immediately available funds.

     This Note is given to evidence an actual warehouse line of credit in the
above amount and is the Note referred to in the Agreement, and is entitled to
the benefits thereof. Reference is hereby made to the Agreement (which is
incorporated herein by reference as fully and with the same effect as if set
forth herein at length) for a description of the Collateral, required payments
of principal and interest on this Note, a statement of the covenants and
agreements, a statement of the rights and remedies and securities afforded
thereby and other matters contained therein. Capitalized terms used herein,
unless otherwise defined herein, shall have the meanings given them in the
Agreement.

     The entire unpaid principal balance of this Note plus all accrued and
unpaid interest shall be due and payable in full on January 31, 2001.

     This Note may be prepaid in whole or in part at any time without premium or
penalty.

     Should this Note be placed in the hands of attorneys for collection, the
Borrower agrees to pay, in addition to principal and interest, fees and charges
due under the Agreement, and all costs of collecting this Note, including
reasonable attorneys' fees and expenses.

     This Note shall be construed and enforced in accordance with the laws of
the State of Texas, without reference to its principles of conflicts of law, and
applicable federal laws of the United States of America.

                                       -4-

<PAGE>

     This Note is secured by all security agreements, collateral assignments,
deeds of trust and lien instruments executed by the Borrower in favor of Lender,
or executed by any other Person as security for this Note, including any
executed prior to, simultaneously with, or after the date of this Note and
including, without limitation, the Security Documents.

     The Borrower and any and each co-maker, guarantor, accommodation party,
endorser or other Person liable for the payment or collection of this Note
expressly waive notice, presentment, demand for payment, protest, notice of
protest and non-payment or dishonor, notice of acceleration, notice of intent to
accelerate, notice of intent to demand, bringing of suit, and diligence in
taking any action to collect amounts called for hereunder and in the handling of
Collateral at any time existing as security in connection herewith, and shall be
directly and primarily liable for the payment of all sums owing and to be owing
hereon, regardless of and without any notice, diligence, act or omission as or
with respect to the collection of any amount called for hereunder or in
connection with any Lien at any time had or existing as security for any amount
called for hereunder.

     It is the intention of the parties hereto to conform strictly to usury laws
applicable to the Lender. Accordingly, if the transactions contemplated hereby
would be usurious under applicable law (including the laws of the United States
of America and the State of Texas), then, in that event, notwithstanding
anything to the contrary herein or in the Agreement or in any other Loan
Document or agreement entered into in connection with or as security for this
Note; it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under law applicable to the Lender that is contracted for,
taken, reserved, charged, or received herein or under the Agreement or under any
of the other aforesaid Loan Documents or agreements or otherwise in connection
herewith shall under no circumstances exceed the maximum amount allowed by such
applicable law, and any excess shall be credited by the Lender on the principal
amount of the Obligations (or, if the principal amount of the Obligations shall
have been paid in full, refunded by the Lender to me Borrower, as required); and
(ii) in the event that the maturity of this Note is accelerated by reason of an
election of the required or permitted prepayment, then such consideration that
constitutes interest under law applicable to the Lender may never include more
than the maximum amount allowed by such applicable law, and excess interest, if
any, provided for in the Agreement or otherwise shall be canceled automatically
as of the date of such acceleration or prepayment and, if theretofore paid,
shall be credited by the Lender on the principal amount of the Obligations (or,
if the principal amount of the Obligations shall have been paid in full,
refunded by the Lender to the Borrower, as required). Without limiting the
foregoing, all calculations of the rate of interest taken, reserved, contracted
for, charged, received or provided for under this Note or any of the Loan
Documents which are made for the purpose of determining whether the interest
rate exceeds the Maximum Rate shall be made, to the extent allowed by law, by
amortizing, prorating, allocating and spreading in equal parts during the period
of the full stated term of the loan evidenced hereby, all interest at any time
taken, reserved, contracted for, charged, received, or provided for under this
Note or any of the Loan Documents. To the extent that the Section 303 of the
Texas Finance Code is relevant for

                                      -5-

<PAGE>

purposes of determining the Maximum Rate, the Lender hereby elects to determine
the applicable rate ceiling under such statute by the weekly rate ceiling from
time to time in effect, subject to the Lender's right subsequently to change
such method in accordance with applicable law.

                                             BANC NLC MORTGAGE LENDING, LLC

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             NLC FINANCIAL SERVICES, LLC

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                       -6-

<PAGE>

                                         ---------------------------------------
                                         BANK UNITED MBF LEGAL FILE
                                         Customer  Illegible
                                         Reviewed by: Illegible  Date: _________
                                         ____ PSA AGRMNT      ____ INCORPORATION
                                         ____ WAREHSE AGRMNT  ____ INSURANCE
                                         ____ UCC             ____ OPINION LTR
                                         ____ GUARANTY
                                         Other: Illegible
                                         ---------------------------------------

                               AMENDMENT NO. 1 TO
                    WAREHOUSING CREDIT AND SECURITY AGREEMENT

     THIS AMENDMENT ("Amendment"), dated as of September 25, 2000, is by and
among FIRST NLC FINANCIAL SERVICES, LLC (f/k/a BANK NLC MORTGAGE LENDING, LLC)
and NLC FINANCIAL SERVICES, LLC, (collectively, the "Borrower") and BANK
UNITED, a federal savings bank (as lender).

                                   BACKGROUND

     A. The Borrower and Lender are parties to that certain Warehousing Credit
and Security Agreement dated as of February 4, 2000 (as amended from time to
time, the "Agreement").

     B. The Borrower has failed to meet certain of the financial covenants as of
April 30, 2000 and has requested that Lender amend such financial covenants
under the Agreement from and after the date hereof.

     C. The Borrower and Lender desire to amend the Agreement as set forth
herein.

     D. All capitalized terms used herein and not otherwise defined herein shall
have the meanings given to them in the Agreement.

     NOW, THEREFORE, the foregoing Background Section being incorporated by
reference, the parties hereto agree as follows:

     1. Lender agrees to forebear in the exercise of its rights with respect to
Borrower's breach of Section 7.5 and 7.6 of the Agreement through and including
September 30, 2000.

     2. Section 7.5 is amended in its entirety as follows:

          7.5 Indebtedness to Tangible Net Worth Ration. Permit the ratio of
     Indebtedness to Tangible Net Worth of the Company (and its Subsidiaries, on
     a consolidated basis) to exceed: (i) 18:1 at September 30, 2000 and October
     31, 2000, (ii) 16:1 at November 30, 2000, and at the end of each calendar
     month thereafter though and including May 31, 2000, and (iii) 14:1 at June
     30, 2001 and at the end of each calendar month thereafter.

     3. Section 7.6 is amended in its entirety as follows:

          7.6 Minimum Adjusted Tangible Net worth. Permit Adjusted Tangible Net
     Worth of the Company (and its Subsidiaries, on a consolidated basis) to be
     less than (i) One Million, Five Hundred Thousand Dollars ($1,500,000.00)
     computed as of September 30, 2000, and October 31, 2000, (ii) One Million,
     Seven Hundred Fifty Thousand Dollars ($1,750,000.00) computed as of
     November 30, 2000 and at the end of each calendar month thereafter through
     and including May 31, 2001, and (iii) Two Million Two Hundred Fifty
     Thousand Dollars ($2,250,000.00) as of June 30, 2001 and at the end of each
     calendar month thereafter.

<PAGE>

     4. This Amendment shall only be effective upon Lender's receipt of the
following.

          a)   a copy of this Amendment No. 5 duly executed by the Borrower;

          b)   evidence acceptable to Lender in its sole discretion that the
               Borrower has taken all necessary corporate action to authorize
               the execution of this Amendment and any other document executed
               in connection herewith;

          c)   The Borrower shall have paid all fees, expenses and costs due to
               or advanced by Lender through the date hereof.

     5. The Borrower hereby ratifies and reaffirms the representations and
warranties set forth in Article V of the Agreement as being true and correct as
of the date hereof, except as caused by the circumstances described herein.

     6. The Borrower acknowledges and agrees that (i) the Borrower's Obligations
to Lender and liens granted to secure such Obligations are valid and perfected
in accordance with applicable law; (ii) the Borrower's Obligations to Lender are
not subject to any setoff, defense, claim, counterclaim, recoupment, or
avoidance and/or subordination under the Bankruptcy Code or otherwise; and (iii)
the Borrower holds no claims against Bank United, its officers, agents,
directors, representatives, attorneys, or any of their respective heirs,
successors and assigns (collectively, the "Lender Parties") with respect to the
Loan Documents. To the extent that the Borrower holds any claims against one of
more of the Lender Parties, arising under the Loan Documents and extension of
credit or administration thereof, collection of amounts due thereunder, or any
applications, discussions, as consideration for Lender's undertakings under the
Agreement or this Amendment, the Borrower hereby unconditionally forever
releases, discharges, and acquits the Lender Parties of any and all claims,
breaches of contract, debts, suits, demands, causes of actions and actions of
any type or notice which arose or are based on occurrences or transactions which
took place prior to the date of this Amendment, whether known or unknown,
contingent or liquidated, suspected or unsuspected, at law or in equity, or
based in contract or tort. The Borrower acknowledges and represents that it has
received the advice of counsel in connection with this acknowledgment and
release and has voluntarily entered into this acknowledgement and release.

     7. Except as amended hereby, all of the terms and conditions of the
Agreement and the obligations of the Borrower under the Note are ratified and
confirmed, and the Agreement shall continue in full force and effect in
accordance with its terms.

     8. This Amendment may be executed in counterparts, all of which
counterparts, when taken together, will constitute the entire agreement.

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the date set forth above.

                                        FIRST NLC FINANCIAL SERVICES, LLC

                                        By /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                        Its E.V.P.

                                        NLC FINANCIAL SERVICES LLC

                                        By /s/ Jeffrey M. Henschel
                                           -------------------------------------
                                        Its EVP

                                        BANK UNITED

                                        By /s/ Illegible
                                           -------------------------------------
                                        Its Director

<PAGE>

================================================================================

                   WAREHOUSING CREDIT AND SECURITY AGREEMENT
                         (SINGLE-FAMILY MORTGAGE LOANS)

                                     BETWEEN

                         BANC NLC MORTGAGE LENDING, LLC,
                      a Florida limited liability company

                                       and

                           NLC FINANCIAL SERVICES, LLC
                      a Delaware limited liability company

                                       AND

                                  BANK UNITED,
                             a federal savings bank

                          Dated as of            , 2000
                                      -----------

================================================================================

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
 1.   DEFINITIONS.............................................................1
        1.1   Defined Terms...................................................1
        1.2   Other Definitional Provisions..................................10
 2.   THE CREDIT.............................................................11
        2.1   The Commitment.................................................11
        2.2   Procedures for Obtaining Advances..............................12
        2.3   Note...........................................................13
        2.4   Interest.......................................................14
        2.5   Principal Payments.............................................14
        2.6   Expiration of Commitment.......................................16
        2.7   Method of Making Payments......................................16
        2.8   Non-Usage Fee..................................................17
        2.9   Miscellaneous Charges..........................................17
       2.10   Bailee.........................................................17
 3.   COLLATERAL.............................................................17
        3.1   Grant of Security Interest.....................................17
        3.2   Delivery of Collateral Documents...............................19
        3.3   Delivery of Additional Collateral or Mandatory
                 Prepayment..................................................19
        3.4   Right of Redemption from Pledge................................19
        3.5   Collection and Servicing Rights................................19
        3.6   Return or Release of Collateral at End of Commitment...........20
 4.   CONDITIONS PRECEDENT...................................................20
        4.1   Initial Advance................................................20
        4.2   Each Advance...................................................22
 5.   REPRESENTATIONS AND WARRANTIES.........................................23
        5.1   Organization; Good Standing; Subsidiaries......................23
        5.2   Authorization and Enforceability...............................23
        5.3   Financial Condition............................................23
        5.4   Litigation.....................................................24
        5.5   Compliance with Laws...........................................24

                                                                          Page i

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
        5.6   Regulation U...................................................24
        5.7   Investment Company Act.........................................24
        5.8   Agreements.....................................................24
        5.9   Title to Properties............................................25
       5.10   ERISA..........................................................25
       5.11   Eligibility....................................................25
       5.12   Special Representations Concerning Collateral..................25
       5.13   RICO...........................................................26
       5.14   Proper Names...................................................27
       5.15   Direct Benefit From Loans......................................27
       5.16   Loan Documents Do Not Violate Other Documents..................27
       5.17   Consents Not Required..........................................27
       5.18   Material Fact Representations..................................27
       5.19   Place of Business..............................................28
       5.20   Use of Proceeds; Business Loans................................28
       5.21   No Undisclosed Liabilities.....................................28
       5.22   Tax Returns and Payments.......................................28
       5.23   Subsidiaries...................................................28
       5.24   Holding Company................................................29
       5.25   Year 2000 Issue................................................29
6.    AFFIRMATIVE COVENANTS..................................................29
        6.1   Payment of Note................................................29
        6.2   Financial Statements and Other Reports.........................29
        6.3   Maintenance of Existence; Conduct of Business..................30
        6.4   Compliance with Applicable Laws................................30
        6.5   Inspection of Properties and Books.............................30
        6.6   Notice.........................................................31
        6.7   Payment of Indebtedness, Taxes, etc............................31
        6.8   Insurance......................................................32
        6.9   Closing Instructions...........................................32
       6.10   Other Loan Obligations.........................................32

                                                                         Page ii

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
       6.11   Use of Proceeds of Advances....................................32
       6.12   Special Affirmative Covenants Concerning Collateral............32
       6.13   Cure of Defects in Loan Documents..............................33
 7.   NEGATIVE COVENANTS.....................................................34
        7.1   Contingent Liabilities.........................................34
        7.2   Pledge of Mortgage Loans.......................................34
        7.3   Merger; Acquisitions...........................................34
        7.4   Loss of Eligibility............................................34
        7.5   Indebtedness to Tangible Net Worth Ratio.......................34
        7.6   Minimum Adjusted Tangible Net Worth............................34
        7.7   Transactions with Affiliates...................................34
        7.8   Limits on Distributions........................................35
        7.9   RICO...........................................................35
       7.10   No Loans or Investments Except Approved Investments............35
       7.11   Charter Documents and Business Termination.....................36
       7.12   Changes in Accounting Methods..................................36
       7.13   No Sales, Leases or Dispositions of Property...................36
       7.14   Changes in Business or Assets..................................36
       7.15   Changes in Office or Inventory Location........................36
       7.16   Special Negative Covenants Concerning Collateral...............36
       7.17   No Indebtedness................................................37
       7.18   Ownership of the Company.......................................38
       7.19   Material Adverse Change........................................38
 8.   DEFAULTS; REMEDIES.....................................................38
        8.1   Events of Default..............................................38
        8.2   Remedies.......................................................41
        8.3   Application of Proceeds........................................43
        8.4   Lender Appointed Attorney-in-Fact..............................44
        8.5   Right of Set-Off...............................................44
 9.   NOTICES................................................................45
10.   REIMBURSEMENT OF EXPENSES; INDEMNITY...................................45

                                                                        Page iii

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
11.   FINANCIAL INFORMATION..................................................46
12.   MISCELLANEOUS..........................................................47
       12.1   Terms Binding Upon Successors; Survival of
                 Representations.............................................47
       12.2   Assignment.....................................................47
       12.3   Amendments.....................................................47
       12.4   Governing Law..................................................47
       12.5   Participations.................................................47
       12.6   Relationship of the Parties....................................47
       12.7   Severability...................................................48
       12.8   Usury..........................................................48
       12.9   Consent to Jurisdiction........................................49
      12.10   Arbitration....................................................49
      12.11   ADDITIONAL INDEMNITY...........................................50
      12.12   No Waivers Except in Writing...................................51
      12.13   Waiver of Jury Trial...........................................51
      12.14   Multiple Counterparts..........................................51
      12.15   No Third Party Beneficiaries...................................51
      12.16   RELEASE OF LENDER LIABILITY....................................51
      12.17   Entire Agreement; Amendment....................................52
      12.18   NO ORAL AGREEMENTS.............................................52
EXHIBIT A....................................................................55
EXHIBIT B....................................................................58
EXHIBIT C....................................................................59
EXHIBIT D....................................................................62
EXHIBIT E....................................................................63
EXHIBIT F....................................................................65
ANNEX TO EXHIBIT F...........................................................66
EXHIBIT G....................................................................68
EXHIBIT H....................................................................69
EXHIBIT I....................................................................70
EXHIBIT J....................................................................71

                                                                         Page iv

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
EXHIBIT K....................................................................75
EXHIBIT L....................................................................77
EXHIBIT M....................................................................78
EXHIBIT N....................................................................81

                                                                          Page v

<PAGE>

                   WAREHOUSING CREDIT AND SECURITY AGREEMENT

     THIS WAREHOUSING CREDIT AND SECURITY AGREEMENT (this "Agreement"), is dated
as of                                                , 2000, by and between
      ------------------------------------- ---------
BANC NLC MORTGAGE LENDING, LLC ("Bank NLC"), a Florida limited liability company
and NLC FINANCIAL SERVICES LLC ("NLC Services"), a Delaware limited liability
company (collectively, the "Company"), having its principal office at 700 West
Hillsborough Boulevard, Deerfield Beach, Florida 33441, and BANK UNITED, a
federal savings bank (the "Lender"), having its principal office at 3200
Southwest Freeway, Suite 2700, Houston, Texas 77027.

     WHEREAS, the Company has requested the Lender to make certain loans to the
Company to finance the origination or purchase of Eligible Mortgage Loans (as
that term is herein defined) which loans are for the benefit of the Company;

     WHEREAS, the Lender is willing to make such loans as herein provided, upon
the terms, agreements and covenants and subject to the conditions hereinafter
set forth and in reliance on the representations and warranties herein made and
referred to; and

     WHEREAS, the Company and the Lender desire to set forth herein the terms
and conditions upon which the Lender shall provide warehouse financing to the
Company;

     NOW, THEREFORE, for good and valuable consideration, the amount and
sufficiency of which are hereby acknowledged by the parties hereto, to induce
the Lender to provide the warehouse financing facility to the Company and in
reliance of the representations and warranties made herein, the parties hereto
hereby agree as follows:

1.   DEFINITIONS.

     1.1 Defined Terms, Capitalized terms defined below or elsewhere in this
Agreement (including the exhibits hereto) shall have the following meanings:

          "Adjusted Tangible Net Worth" means Tangible Net Worth plus
     Subordinated Debt.

          "Advance" means a Subprime Mortgage Loan Advance, a Second Mortgage
     Loan Advance, a Subwarehouse Mortgage Loan Advance or an Aged Mortgage Loan
     Advance pursuant to Article 2 of this Agreement in respect of the closing,
     settlement, or acquisition of a Mortgage Loan or rehabilitation property,
     whether or not such disbursement is a Wet Settlement Advance.

          "Advance Request" has the meaning set forth in Section 2.2(a) hereof.

          "Affiliate" shall mean any Person controlling, controlled by or under
     common control with any other Person. For purposes of this definition
     "control" (including

<PAGE>

     "controlled by" and "under common control with") means the possession,
     directly or indirectly, of the power to direct or cause the direction of
     the management and policies of such Person, whether through the ownership
     of voting securities, by contract, or otherwise or owning or possessing the
     power to vote 10% or more of any class of voting securities of any Person.
     Without limiting the generality of the foregoing, for purposes of this
     Agreement, Company and each of its respective Subsidiaries shall be deemed
     to be Affiliates of one another.

          "Aged Mortgage Loan" means an Eligible Mortgage Loan that has been
     included in Collateral for a period of more than ninety (90) days.

          "Aged Mortgage Loan Advance" means any Advance with respect to an Aged
     Mortgage Loan.

          "Agreement" means this Warehousing Credit and Security Agreement
     (Single Family Mortgage Loans), either as originally executed or as it may
     from time to time be supplemented, modified or amended.

          "Applicable Law" shall mean the laws of the State of Texas and the
     United States of America in effect from time to time and applicable to the
     transactions between the Lender and the Company pursuant to this Agreement
     and the other Loan Documents whichever permits the charging and collection
     of the highest non-usurious rate of interest on such transactions. For
     purposes of determining Texas law with respect to the highest non-usurious
     rate of interest, the "weekly ceiling" as defined in Chapter 303 of the
     Texas Finance Code (the "Texas Finance Code"), as amended, shall be
     controlling.

          "Applicable Margin" means:

Type of Advance                   Applicable Margin
---------------                   -----------------
Subprime Mortgage Loan Advances   [*]% per annum

Second Mortgage Loans Advances    [*]% per annum

Subwarehouse Advances             [*]% per annum

Aged Mortgage Loan Advances       [*]% per annum

          "Approved Custodian" means a Person acceptable to the Lender from time
     to time in its sole discretion, who possesses Mortgage Loans that secure
     Mortgaged-backed Securities.

          "Bailee Letter" has the meaning set forth in Section 3.2 hereof.

                                        2

<PAGE>

          "Business Day" means any day excluding Saturday, Sunday and any day on
     which Lender is closed for business.

          "Capitalized Lease" shall mean any lease under which rental payments
     are required to be capitalized on a balance sheet of the lessee in
     accordance with GAAP.

          "Capitalized Rentals" shall mean the amount of aggregate rentals due
     and to become due under all Capitalized Leases under which the Company is a
     lessee that would be reflected as a liability on a balance sheet of the
     Company.

          "Change of Control" means

               (a) a sale of substantially all of either Company's assets,
          membership interests or other equity interests to any Person or
          related group of Persons; or

               (b) without the Lender's prior written consent, Neal Henschel and
          Jeffrey Henschel cease to be President and Executive Vice President,
          respectively.

         "Collateral" has the meaning set forth in Section 3.1 hereof.

          "Collateral Documents" means all of the documents and other items
     described on Exhibit C hereto and required to be delivered to the Lender in
     connection with an Advance.

          "Collateral Value" means

               (a) with respect to any Eligible Mortgage Loan, an amount equal
          to the least of (i) the actual out-of-pocket cost of such Mortgage
          Loan to the Company, i.e., the net amount actually funded against such
          Mortgage Loan or the net purchase price of such Mortgage Loan, (ii)
          the Par Value thereof, (iii) the amount which the Investor has
          committed to pay for such Mortgage Loan pursuant to a Purchase
          Commitment, or (iv) the Fair Market Value of such Mortgage Loan;

               (b) with respect to Collateral that is not described within (a),
          and that is pledged pursuant to Section 3.3 hereof, Collateral Value
          shall equal an amount established by Lender in its sole discretion;

               (c) with respect to Collateral that is not described in (a), or
          (b) the Collateral Value shall be equal to $0.00; and

               (d) notwithstanding the foregoing, with respect to Mortgage Loans
          that are in default in the payment of principal and interest or in the
          performance of any obligation under the Mortgage Note or the Mortgage
          evidencing or securing such

                                        3

<PAGE>

          Mortgage Loans for a period of sixty (60) days or more, the Collateral
          Value thereof shall equal $0.00.

          "Commitment" has the meaning set forth in Section 2.1 (a) hereof.

          "Company" has the meaning set forth in the first paragraph of this
          Agreement.

          "Default" means the occurrence of any event or existence of any
     condition which, but for the giving of notice, the lapse of time, or both,
     would constitute an Event of Default.

          "Default Rate" has the meaning set forth in Section 2.4(c) hereof.

          "Electronic Request" has the meaning set forth in Section 2.2(a)
     hereof.

          "Eligible Mortgage Loan" means a Subprime Mortgage Loan, a
     Subwarehouse Loan, a Second Mortgage Loan or an Aged Mortgage Loan which
     (a) has closed less than twenty-five (25) days prior to the date of the
     Advance made in connection with such Mortgage Loan, (b) is validly pledged
     to Lender and is not subject to any other Liens, (c) has not been pledged
     to any other lender, and (d) is not in default for more than sixty (60)
     days.

          "ERISA" means the Employee Retirement Income Security Act of 1974 and
     all rules and regulations promulgated thereunder, as amended from time to
     time and any successor statute.

          "Event of Default" means any of the conditions or events set forth in
     Section 8.1 hereof.

          "Fair Market Value" shall mean the market price of any Mortgage Loan
     as determined by Lender in its reasonable discretion.

          "FHLMC" means the Federal Home Loan Mortgage Corporation and any
     successor thereto.

          "FHLMC Guide" means the FHLMC Sellers' and Servicers' Guide, dated
     September 17, 1984, applicable bulletins, the applicable MIDANET Users
     Guide (or the MIDAPHONE User's Guide) and any particular purchase documents
     as defined in the Sellers' and Servicers' Guide, as revised prior to the
     date hereof.

          "FICA" means the Federal Insurance Contributions Act.

          "First Mortgage" means a mortgage or deed of trust which constitutes a
     first Lien on the property covered thereby.

                                        4

<PAGE>

          "FNMA" means the Federal National Mortgage Association and any
     successor thereto.

          "FNMA Guide" means the FNMA Servicing Guide dated June 30, 1990, as
     revised prior to the date hereof.

          "Funding Account" means the non-interest bearing demand checking
     account established with, maintained by, and pledged to Lender into which
     shall be deposited the proceeds of Advances, the proceeds from any sale of
     Collateral, and from which funds shall be disbursed for the acquisition of
     Mortgage Loans.

          "GAAP" means generally accepted accounting principles set forth in the
     opinions and pronouncements of the Accounting Principles Board and the
     American Institute of Certified Public Accountants and statements and
     pronouncements of the Financial Accounting Standards Board or in such other
     statements by such other entity as may be approved by a significant segment
     of the accounting profession, which are applicable to the circumstances as
     of the date of determination.

          "GNMA" means the Government National Mortgage Association and any
     successor thereto.

          "HUD" means the Department of Housing and Urban Development and any
     successor thereto.

          "Indebtedness" shall mean and include, without duplication, (1) all
     items which in accordance with GAAP, consistently applied, would be
     included on the liability side of a balance sheet on the date as of which
     Indebtedness is to be determined (excluding shareholders' equity), (2)
     Capitalized Rentals under any Capitalized Lease, (3) guaranties,
     endorsements and other contingent obligations in respect of, or any
     obligations to purchase or otherwise acquire, Indebtedness of others, and
     (4) indebtedness secured by any mortgage, pledge, security interest or
     other Lien existing on any property owned by the Person with respect to
     which indebtedness is being determined, whether or not the indebtedness
     secured thereby shall have been assumed.

          "Indemnified Liabilities" has the meaning set forth in Article 10
     hereof.

          "Interest Rate" means the Monthly Average LIBO Rate plus the
     Applicable Margin.

          "Interim Date" has the meaning set forth in Section 4.1(a)(5) hereof.

          "Internal Revenue Code" means the Internal Revenue Code of 1986, or
     any subsequent federal income tax law or laws, as any of the foregoing have
     been or may from time to time be amended.

                                        5

<PAGE>

          "Investor" means any of the Persons listed in Exhibit L hereto, or a
     financially responsible institution which is reasonably acceptable to
     Lender, in its sole discretion; provided that at any time by reasonable
     written notice to Company Lender may disapprove any Investor in its
     reasonable discretion, whether or not that Person is named as an Investor
     in this definition or in Exhibit L or has been previously approved as an
     Investor by Lender. Upon receipt of such notice, the Persons named in
     Lender's notice shall no longer be Investors from and after the date of the
     receipt of such notice.

          "Lender" has the meaning set forth in the first paragraph of this
     Agreement.

          "LIBO Rate" means a rate of interest equal to the London Interbank
     Offered Rate for U. S. dollar deposits as quoted by Telerate, Bloomberg or
     any other rate quoting service, selected by Lender in its sole discretion
     for an interest period of one month. In the event such rate ceases to be
     published, LIBO Rate shall mean a comparable rate of interest reasonably
     selected by Lender.

          "Lien" means any lien, mortgage, deed of trust, pledge, security
     interest, charge or encumbrance of any kind (including any conditional sale
     or other title retention agreement, any lease in the nature thereof, and
     any agreement to give any security interest).

          "Loan Documents" means this Agreement, the Note, and each other
     document, instrument or agreement executed by the Company or any other
     Person in connection herewith or therewith, as any of the same may be
     amended, restated, renewed or replaced from time to time.

          "Margin Stock" has the meaning assigned to that term in Regulations G
     and U of the Board of Governors of the Federal Reserve System as in effect
     from time to time.

          "Maximum Rate" shall mean the maximum lawful non-usurious rate of
     interest (if any) that, under Applicable Law, the Lender may charge the
     Company on the Advances from time to time. To the extent that the interest
     rate laws of the State of Texas are applicable and unless changed in
     accordance with law, the applicable rate ceiling shall be the weekly
     ceiling determined in accordance with the Texas Finance Code, as amended.

          "Monthly Average LIBO Rate" means the average of all LIBO Rates quoted
     during a given month. In the event (i) the Note is paid in full and the
     Commitment is terminated prior to a month end; or (ii) the initial Advance
     hereunder occurs on a date other than the first day of that month on which
     LIBO Rates are quoted, the Monthly Average LIBO Rate shall mean, in the
     case of clause (i), the average of all LIBO Rates quoted that month up to
     and including the last Business Day prior to such payment in full; or, in
     the case of clause (ii), the LIBO Rates quoted on the date of the initial
     Advance through the end of that month.

          "Mortgage" means a First Mortgage or Second Mortgage.

                                        6

<PAGE>

          "Mortgage Loan" means any loan evidenced by a Mortgage Note. A
     Mortgage Loan, unless otherwise expressly stated herein, means a
     Single-family Mortgage Loan.

          "Mortgage Note" means a note secured by a Mortgage.

          "Mortgage Note Amount" means, as of the date of determination, the
     then outstanding unpaid principal amount of a Mortgage Note.

          "Mortgaged Property" means the property, real, personal, tangible or
     intangible, securing a Mortgage Note.

          "Multiemployer Plan" means a "multiemployer plan" as defined in
     Section 4001(a)(3) of ERISA that is maintained for employees of the Company
     or a Subsidiary of the Company.

          "Net Investable Balances" means the average collected balances in
     non-interest bearing deposit accounts controlled or maintained by the
     Company in accounts at the Lender, less balances to support float, activity
     charges, reserve requirements, Federal Deposit Insurance Corporation
     insurance premiums and such other assessments as may be imposed by
     governmental authorities from time to time.

          "NLCI" means National Lending Center, Inc., a Florida corporation.

          "NLCI Agreement" means that certain Management and Funding Agreement
     by and between NLCI and Banc NLC whereby Banc NLC operates and manages
     NLCI.

          "Note" has the meaning set forth in Section 2.3 hereof.

          "Notices" has the meaning set forth in Article 9 hereof.

          "Obligations" shall mean any and all indebtedness, obligations and
     liabilities of the Company to the Lender (whether now existing or hereafter
     arising, voluntary or involuntary, whether or not jointly owed with others,
     direct or indirect, absolute or contingent, liquidated or unliquidated, and
     whether or not from time to time decreased or extinguished and later
     increased, created or incurred), arising out of or related to the Loan
     Documents, or any of them.

          "Officer's Certificate" means a certificate executed on behalf of the
     Company by its chief financial officer or its treasurer or by such other
     officer as may be designated herein, in form and substance satisfactory to
     Lender.

          "OTS" means the Office of Thrift Supervision.

                                        7

<PAGE>

          "Par Value" means, with respect to any Mortgage Loan, the unpaid
     principal balance of such Mortgage Loan, on the date of the Advance made
     against such Mortgage Loan.

          "Participant" has the meaning set forth in Section 12.5 hereof.

          "Person" means and includes natural persons, corporations, limited
     partnerships, general partnerships, joint stock companies, joint ventures,
     associations, companies, trusts, banks, trust companies, land trusts,
     business trusts or other organizations, whether or not legal entities, and
     federal and state governments and agencies or regulatory authorities and
     political subdivisions thereof.

          "Plans" has the meaning set forth in Section 5.10 hereof.

          "Pledged Mortgages" has the meaning set forth in Section 3.1 (a)
     hereof.

          "PMI" means any private mortgage insurance company which is reasonably
     acceptable to Lender, in its sole discretion; provided that at any time by
     reasonable written notice to Company, Lender may disapprove any PMI because
     it has determined in its reasonable discretion and for any reason that it
     is no longer comfortable with that Person being a PMI, whether or not that
     Person has been previously approved as a PMI by Lender. Upon receipt of
     such notice, the Persons named in Lender's notice shall no longer be PMIs
     from and after the date of receipt of such notice.

          "Purchase Commitment" means a written commitment, in form and
     substance satisfactory to the Lender, issued in favor of the Company by an
     Investor pursuant to which that Investor commits to purchase Mortgage
     Loans.

          "Redemption Amount" has the meaning set forth in Section 3.5 hereof.

          "RICO" means the Racketeer Influenced and Corrupt Organizations Act of
     1970, as amended.

          "Second Mortgage" means a mortgage or deed of trust which constitutes
     a second Lien on the property covered thereby.

          "Second Mortgage Loan" means a Single-family Mortgage Loan that (a)
     is, in the reasonable judgment of the Lender, consistent in all respects
     with traditional standards imposed by whole loan purchasers, relevant
     rating agencies and pool insurers for classification as "A" to "D" Mortgage
     Loans, (b) has a maximum amount that does not exceed Three Hundred Fifty
     Thousand Dollars ($350,000), (c) is secured by a Second Mortgage, (d) has a
     combined loan-to-collateral value ratio not greater than 100% (ratio based
     upon all loans secured by the Mortgaged Property), and (e) is not an
     "open-ended" line of credit.

                                        8

<PAGE>

          "Second Mortgage Loan Advance" means any Advance with respect to a
     Second Mortgage Loan.

          "Single-family Mortgage Loan" means a Mortgage Loan secured by a
     Mortgage covering improved real property containing one to four family
     residences.

          "Statement Date" has the meaning set forth in Section 4.1(a)(5)
     hereof.

          "Subordinated Debt" means, with respect to any Person, all
     Indebtedness of such Person, for borrowed money, which is, by its terms
     (which terms shall have been approved by the Lender) or by the terms of a
     subordination agreement, in form and substance satisfactory to the Lender,
     effectively subordinated in right of payment to all other present and
     future obligations and all indebtedness of such Person, of every kind and
     character, owed to the Lender.

          "Subprime Mortgage Loan" means a Single-family Mortgage Loan that (a)
     is, in the reasonable judgment of the Lender, consistent in all respects
     with traditional standards imposed by whole loan purchasers, relevant
     rating agencies and pool insurers for classification as "A" to "D" Mortgage
     Loans, (b) has a maximum loan amount that does not exceed Three Hundred
     Fifty Thousand Dollars ($350,000.00), (c) is secured by a First Mortgage,
     and (d) has a combined loan-to-collateral value ratio not greater than 100%
     (ratio to be based upon all loans secured by the Mortgaged Property).

          "Subprime Mortgage Loan Advance" means any Advance made with respect
     to Subprime Mortgage Loans.

          "Subsidiary" means any corporation, association or other business
     entity in which more than fifty percent (50%) of the total voting power or
     shares of stock entitled to vote in the election of directors, managers or
     trustees thereof is at the time owned or controlled, directly or
     indirectly, by any Person or one or more of the other Subsidiaries of that
     Person or a combination thereof.

          "Subwarehouse Mortgage Loan" means a Mortgage Loan which meets all of
     the requirements of an Eligible Loan and which is closed in the name of
     NLCI but assigned and delivered to Bane NLC within forty-eight (48) hours
     of funding.

          "Subwarehouse Mortgage Loan Advance" means any Advance made in respect
     of a Subwarehouse Mortgage Loan.

          "Tangible Net Worth" means, with respect to any Person at any date,
     the sum of the total shareholders' equity in such Person (including capital
     stock, additional paid-in capital, and retained earnings, but excluding
     treasury stock, if any), on a consolidated basis; less the aggregate book
     value of all intangible assets of such Person (as determined in accordance
     with GAAP), including without limitation, goodwill, trademarks, trade
     names, service marks, copyrights, patents, licenses, franchises, and
     Servicing Rights,

                                        9

<PAGE>

each to be determined in accordance with GAAP consistent with those applied in
the preparation of the financial statements referred to in Section 5.3 hereof;
provided that, for purposes of this Agreement, there shall be excluded from
total assets, advances or loans to shareholders, officers or Affiliates,
investments in Affiliates, assets pledged to secure any liabilities not included
in the Indebtedness of such Person and those other assets which would be deemed
by HUD to be non-acceptable in calculating adjusted net worth in accordance with
its requirements in the Audit Guide for Audit of Approved Non-Supervised
Mortgagees, as in effect as of such date.

     "Termination Date" shall mean January 31, 2001, or such earlier date upon
which Lender's obligation to fund shall be terminated pursuant to the terms of
this Agreement.

     "Texas Finance Code" is defined in the definition of "Applicable Law."

     "Tribunal" shall mean any court or governmental department, commission,
board, bureau, agency, or instrumentality of any state, commonwealth, nation,
territory, possession, county, parish, or municipality, whether now or hereafter
constituted and/or existing.

     "VA" means the Veterans Administration and any successor thereto.

     "Wet Settlement Advance" means a disbursement by the Lender under the
Commitment and pursuant to Section 2.2(a) of this Agreement, in respect of the
closing or settlement of an Eligible Mortgage Loan, in anticipation of and
pending subsequent delivery and examination of the Collateral Documents as
provided in Section II of Exhibit C, and may include a Subwarehouse Mortgage
Loan Advance.

     "Year 2000 Issue" means the failure of computer software, hardware, and
firmware systems and equipment containing embedded computer chips to properly
receive, transmit, process, manipulate, store, retrieve, re-transmit or in any
other way utilize data and information due to the occurrence of the year 2000 or
the inclusion of dates on or after January 1, 2000.

1.2  Other Definitional Provisions.

          (a) Accounting terms not otherwise defined herein shall have the
     meanings given the terms under GAAP.

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

                                       10

<PAGE>

2.   THE CREDIT.

     2.1  The Commitment.

               (a) Subject to the terms and conditions of this Agreement and
          provided no Default or Event of Default has occurred and is
          continuing, the Lender agrees, from time to time during the period
          from the date hereof to and including the Termination Date, to make
          Advances to the Company, provided the sum of the total aggregate
          principal amount outstanding at any one time of all such Advances
          shall not exceed TWENTY-FIVE MILLION AND NO/100 DOLLARS
          ($25,000,000.00). The obligation of the Lender to make Advances
          hereunder up to such limit is hereinafter referred to as the
          "Commitment." Within the Commitment, the Company may borrow, repay and
          reborrow. All Advances under this Agreement shall constitute a single
          indebtedness, and all of the Collateral shall be security for the Note
          and for the performance of all the Obligations of the Company to the
          Lender.

               (b) Advances shall be used by the Company solely for the purpose
          of funding the acquisition or origination of Eligible Mortgage Loans,
          as specified in the Advance Request and none other, and shall be made
          at the request of the Company in the manner hereinafter provided in
          Section 2.2, against the pledge of such Mortgage Loans and such other
          collateral as is set forth in Section 3.1 hereof as Collateral
          therefor. Advances shall also be subject to the following
          restrictions:

                    (1) No Advance shall be made against Mortgage Loans which
               are not Eligible Mortgage Loans.

                    (2) The aggregate amount of Wet Settlement Advances
               outstanding at any one time shall not exceed TEN MILLION AND
               NO/100 DOLLARS ($10,000,000.00).

                    (3) The aggregate amount of Subwarehouse Mortgage Loan
               Advances outstanding at any one time shall not exceed TWO MILLION
               FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($2,500,000.00).

                    (4) The aggregate amount of Aged Mortgage Loan Advances
               outstanding at any one time shall not exceed ONE MILLION AND
               NO/100 DOLLARS ($1,000,000.00)

                    (5) The aggregate amount of Second Mortgage Loan Advances
               outstanding at any one time shall not exceed Seven million
               Dollars ($7,000,000).

               (c) No Advance shall exceed the following amounts applicable to
          the type of Collateral, determined as of the date the Collateral is
          pledged to Lender.

                                       11

<PAGE>

          No Advance shall exceed: with respect to Subprime Mortgage Loans, an
          amount equal to [*] of the Collateral Value of such Mortgage Loan;
          with respect to Second Mortgage Loans, an amount equal to [*]% of the
          Collateral Value of such Mortgage Loan; and with respect to
          Subwarehouse Mortgage Loans an amount equal to [*]% of the Collateral
          Value of such Subwarehouse Mortgage Loan until the earlier to occur of
          (x) the termination of any Commitment hereunder and (y) April 30,
          2000.

     2.2  Procedures for Obtaining Advances.

               (a) The Company may obtain an Advance hereunder subject to the
          following:

                    (1) The Company may obtain an Advance hereunder, subject to
               the satisfaction of the conditions set forth in Sections 4.1 and
               4.2 hereof, upon compliance with the procedures set forth in this
               Section 2.2 and in Exhibit C attached hereto and made a part
               hereof. Requests for Advances shall be initiated by the Company
               (i) by delivering to the Lender and its designee, by telecopy
               (with original to be sent immediately thereafter by overnight
               mail) a completed and signed request for an Advance (an "Advance
               Request") in the form of Exhibit A attached hereto and made a
               part hereof, or (ii) by using the electronic data transmission
               service provided by the Lender and its licensor, MBMS
               Incorporated, to transmit to the Lender a request for Advance
               ("Electronic Request"), which shall include all information
               required by Exhibit A through the Warehouse Management System
               software provided by the Lender and its licensor, MBMS
               Incorporated. The Lender shall have the right, on not less than
               three (3) Business Days' prior notice to the Company, to modify
               the Advance Request, Electronic Request, or any exhibits hereto
               to conform to current legal requirements or Lender practices,
               and, as so modified, said Advance Request, Electronic Request or
               exhibits shall be deemed a part hereof. In consideration of the
               Lender permitting the Company to make Electronic Requests for
               Advances utilizing the Warehouse Management System software or
               Advance Requests by telecopy, the Company covenants and agrees to
               assume liability for and to protect, indemnify and save the
               Lender harmless from, any and all liabilities, obligations,
               damages, penalties, claims, causes of action, costs, charges and
               expenses, including attorneys' fees and expenses of employees,
               which may be imposed, incurred by or asserted against the Lender
               by reason of any loss, damage or claim howsoever arising or
               incurred because of, out of or in connection with (i) any action
               of the Lender pursuant to Electronic Requests or Advance Requests
               by telecopy, (ii) the breach of any provisions of this Agreement
               by the Company, (iii) the transfer of funds pursuant to such
               Electronic Requests or Advance Requests by telecopy, or (iv) the
               Lender's honoring or failing to honor any Electronic Request or

                                       12

<PAGE>

               Advance Request by telecopy for any reason or no reason
               whatsoever. The Lender is entitled to rely upon and act upon
               Electronic Requests or Advance Requests by telecopy, and the
               Company shall be unconditionally and absolutely estopped from
               denying (x) the authenticity and validity of any such transaction
               so acted upon by the Lender once the Lender has advanced funds
               and has deposited or transferred such funds as requested in any
               such Electronic Request or Advance Request by telecopy, and (y)
               the Company's liability and responsibility therefor.

                    (2) In the case of any Wet Settlement Advances, the Company
               shall follow the procedures and, at or prior to the Lender's
               making of such Wet Settlement Advance, shall deliver to the
               Lender or its designee the documents set forth in Section II of
               Exhibit C hereto. In case of Collateral financed through a Wet
               Settlement Advance, the Company shall cause all Collateral
               Documents to be delivered to the Lender or its designee within
               five (5) Business Days after the date of the Wet Settlement
               Advance relating thereto.

                    (3) Before funding, the Lender and its designee shall have a
               reasonable time to examine such Advance Request and the
               Collateral Documents to be delivered prior to such requested
               Advance, as set forth in the applicable Exhibit hereto, and may
               reject such of them as do not meet the requirements of this
               Agreement or of the related Purchase Commitment. The Advance
               Request and the Collateral Documents must be received by Lender
               no later than 2:00 p.m. Houston, Texas time in order for funding
               to occur the same day.

               (b) To make an Advance, the Lender shall credit the Funding
          Account upon compliance by the Company with the terms of this
          Agreement and shall upon the borrower's direction either issue a
          certified check for such Advance or arrange a wire transfer.

     2.3 Note. The Company's obligation to pay the principal of, and interest
on, all Advances made by the Lender shall be evidenced by a promissory note (the
"Note") of the Company dated as of the date hereof, in form of Exhibit hereto.
The term "Note" shall include all extensions, renewals and modifications of the
Note and all substitutions therefor. All terms and provisions of the Note are
hereby incorporated herein.

                                       13

<PAGE>

2.4  Interest.

          (a) The unpaid amount of each Advance shall bear interest from the
     date of such Advance until paid in full, at the applicable Interest Rate;
     provided, however, that portion of the unpaid Advances equal to the Net
     Investable Balances shall bear interest at a rate equal to the Applicable
     Margin.

          (b) Interest shall be computed on the basis of a 360-day year and
     applied to the actual number of days elapsed in each interest calculation
     period and shall be payable monthly in arrears, on the first day of each
     month, commencing with the first month following the date of this
     Agreement, and ending on the Termination Date.

          (c) Obligations not paid when due (whether at stated maturity, upon
     acceleration following the occurrence of an Event of Default or otherwise)
     shall bear interest, from the date due until paid in full, at a rate of
     interest ("Default Rate") at all times equal to the lesser of (i) four
     percent (4%) per annum over the Lender's prime rate; or (ii) the Maximum
     Rate, said interest to be payable on demand by the Lender.

2.5  Principal Payments.

          (a) The outstanding unpaid principal amount of all Advances shall be
     payable in full upon the Termination Date.

          (b) The Company shall have the right to prepay the outstanding
     Advances in whole or in part, from time to time, without premium or
     penalty.

          (c) The Company shall be obligated to pay to the Lender, without the
     necessity of prior demand or notice from the Lender (however Lender will
     give prompt notice following any such change), and the Company authorizes
     the Lender to charge the Funding Account or any other accounts of the
     Company (excluding any monies held by Company in trust for third parties)
     in Lender's possession for the amount of any outstanding Advance against a
     specific Mortgage Loan, upon the earliest occurrence of any of the
     following events:

               (1) The expiration of ninety (90) days from the date of any
          Advance for any Mortgage Loan (excluding Aged Mortgage Loans);

               (2) The expiration of thirty (30) days from the date the Mortgage
          Loan was delivered to an Investor for examination and purchase,
          without the purchase being made, or upon rejection of the Mortgage
          Loan as unsatisfactory by an Investor;

                                       14

<PAGE>

               (3) The expiration of five (5) Business Days from the date a Wet
          Settlement Advance was made without receipt of all Collateral
          Documents relating to such Mortgage Loan, or such Collateral
          Documents, upon examination by the Lender, are found not to be in
          compliance with the requirements of this Agreement or any related
          Purchase Commitment;

               (4) The expiration of two (2) Business Days from the date a
          Subwarehouse Mortgage Loan Advance was made without receipt of a copy
          of the Mortgage Note relating to such Subwarehouse Lender's Mortgage
          Loan and with all necessary endorsements, or upon review, such
          Mortgage Note and necessary endorsements are found not to be in
          compliance with the requirements of this Agreement or any related
          Purchase Commitment;

               (5) The expiration of ten (10) Business Days from the date a
          Collateral Document in connection with such Mortgage Loan was
          delivered to the Company for correction or completion, without being
          returned to the Lender, corrected or completed;

               (6) The Mortgage Loan is in default and such default continues
          for a period of sixty (60) days or more;

               (7) The expiration of three (3) Business Days after the date on
          which any related Purchase Commitment, if any, expires, is terminated
          or otherwise canceled or no longer in full force and effect and the
          specific Mortgage Loan was not delivered under the Purchase Commitment
          prior to such termination, expiration or cancellation; or

               (8) Upon sale of the Mortgage Loan.

     Upon receipt of such payment by the Lender, such Mortgage Loans shall be
considered to have been redeemed from pledge, and the Collateral Documents
relating thereto which have not been delivered to the Investor or the pool
custodian or pool trustee shall be released by the Lender to the Company.

          (d) With respect to Aged Mortgage Loans, the Company shall be
     obligated to pay to the Lender (and the Company authorizes the Lender to
     charge the Funding Account or any other accounts of the Company (excluding
     monies held by the Company in trust for third parties) in Lender's
     possession for the payment thereof) the principal payments in the amounts
     and on the dates specified below:

               (1) On the date a Pledged Mortgage becomes an Aged Mortgage Loan,
          a principal payment in an amount necessary to reduce the outstanding
          unpaid Advances made against such Aged Mortgage Loan to an amount
          equal to [*] of the Collateral Value of such Aged Mortgage Loan to the
          extent such Aged Mortgage Loan was

                                       15

<PAGE>

               originally a Subprime Mortgage Loan and [*] to the extent such
               Aged Mortgage Loan was a Second Mortgage Loan;

                    (2) On the date an Aged Mortgage Loan has been included in
               the Collateral for 121 days, a principal payment in an amount
               necessary to reduce the outstanding unpaid Advances made against
               such Aged Mortgage Loan to an amount equal to [*] of the
               Collateral Value of such Aged Mortgage Loan to the extent such
               Aged Mortgage Loan was originally a Subprime Mortgage Loan and
               [*] to the extent such Aged Mortgage Loan was a Second Mortgage
               Loan;

                    (3) On the date an Aged Mortgage Loan has been included in
               the Collateral for 151 days, a principal payment in an amount
               necessary to reduce the outstanding unpaid Advances made against
               such Aged Mortgage Loan to an amount equal to [*] of the
               Collateral Value of such Aged Mortgage Loan to the extent such
               Aged Mortgage Loan was originally a Subprime Mortgage Loan and
               [*] to the extent such Aged Mortgage Loan was originally a Second
               Mortgage Loan;

                    (4) On the date an Aged Mortgage Loan has been included in
               the Collateral for 181 days, an amount equal to the balance of
               the aggregate outstanding unpaid Advances against such Aged
               Mortgage Loan.

     2.6 Expiration of Commitment. Unless extended or terminated earlier as
permitted hereunder, the Commitment shall expire of its own term, and without
the necessity of action by the Lender, at the close of business on the
Termination Date. However, the remainder of this Agreement shall remain in full
force and effect until all amounts due on the Obligations have been paid in
full. The Lender has not made, and does not hereby make, any commitment to
renew, extend, rearrange or otherwise refinance the outstanding and unpaid
principal of the Note or accrued interest thereon. In the event, however, the
Lender from time to time renews, extends, rearranges, increases and/or otherwise
refinances any portion or all of any Obligation and any accrued interest thereon
at any time, such refinancing shall be evidenced by an appropriate promissory
note in form and substance satisfactory to the Lender and, unless otherwise
noted or modified at such time or times by the terms of such promissory note or
any agreements executed in connection therewith, any such promissory note or
notes and refinancing evidenced thereby shall be governed in all respects by the
terms of this Agreement.

     2.7 Method of Making Payments. Except as otherwise specifically provided
herein, all payments hereunder shall be made to the Lender not later than the
close of business (Houston time) on the date when due unless such date is a
non-Business Day, in which case, such payment shall be due on the first Business
Day thereafter, and shall be made in lawful money of the United States of
America in immediately available funds.

                                       16

<PAGE>

     2.8 Non-Usage Fee. At the end of each month during the term of this
Agreement (i.e., from its effective date through the Termination Date), the
Lender shall determine average usage of the Commitment by calculating the
arithmetic daily average of the outstanding balance of Advances in the preceding
month. The Lender shall then subtract the average usage (the "Used Portion")
from the Commitment (the result being called the "Unused Portion") and to the
extent that the Unused Portion exceeds fifty percent (50%) of the Commitment,
the Company shall pay in arrears (without duplication of payment), on or before
five (5) days after the Company's receipt of the Lender's bill for such monthly
period, a Non-Usage Fee equal to one quarter of one percent (0.25%) per annum of
such portion of the Unused Portion of the Commitment exceeds fifty (50%) of the
Commitment, as compensation to the Lender for its agreement to make the
Commitment available to the Company during that month and not as compensation
for the use, forbearance or detention of money (i.e., as a "true commitment fee"
under Texas law). Each calculation by the Lender of the amount of any Non-Usage
Fee shall be presumed conclusive and binding on the Company, absent manifest
error.

     2.9 Miscellaneous Charges. At the end of each month during the term of this
Agreement, the Company shall pay to the Lender in arrears on or before five (5)
days after the later of (a) the end of each calendar month or (b) the Company's
receipt of the Lender's bill for such monthly period, a transaction fee equal to
[*] and No/100 Dollars [*] per Pledged Mortgage held by Lender during such month
and for which Lender has not previously received a transaction fee, for the
handling and administration of Advances and Collateral. For the purposes hereof,
Company shall, at its sole cost and expense, pay all reasonable, out-of-pocket
miscellaneous charges and expenses incurred by the Lender in connection with the
handling and administration of Advances and Collateral, including, without
limitation, all charges for security delivery fees and charges for overnight
delivery of Collateral to Investors. Miscellaneous charges are due when
incurred, but shall not be delinquent if paid within five (5) days after receipt
of an invoice or an account analysis statement from the Lender.

     2.10 Bailee. Lender appoints Company, and Company shall act, as its bailee
to (i) hold in trust for Lender (A) the original recorded copy of the mortgage,
deed of trust, or trust deed securing each Pledged Mortgage, (B) a mortgagee
policy of title insurance (or binding unexpired and unconditional commitment to
issue such insurance if the policy has not yet been delivered to Company)
insuring the Company's perfected, first priority Lien created by that mortgage,
deed of trust, or trust deed, (C) the original insurance policies for each
Pledged Mortgage, and (D) all other original documents relating to each Pledged
Mortgage, including any promissory notes, any other loan documents, and
supporting documentation, surveys, settlement statements, closing instructions,
to the extent that any such documents are in the possession of the Company and
(ii) deliver to Lender any of the foregoing items immediately upon Lender's
request.

3. COLLATERAL.

     3.1 Grant of Security Interest. As security for the payment of the Note and
for the performance of all of the Company's Obligations hereunder, the Company
hereby assigns and transfers all right, title and interest in and to and grants
a security interest to the Lender in the following described property, whether
now owned or hereafter acquired (the "Collateral"):

                                       17

<PAGE>

               (a) All Mortgage Loans including all Mortgage Notes and Mortgages
          evidencing such Mortgage Loans in respect of which an Advance has been
          made by Lender, including without limitation all Mortgage Loans in
          respect of which Wet Settlement Advances have been made by the Lender,
          which from time to time are delivered or caused to be delivered to the
          Lender or its designee, come into the possession, custody or control
          of the Lender for the purpose of assignment or pledge (the "Pledged
          Mortgages").

               (b) All private mortgage insurance and all commitments issued by
          the FHA or VA to insure or guarantee any Mortgage Loans included in
          the Pledged Mortgages; all Purchase Commitments held by the Company
          covering the Pledged Mortgages and all proceeds resulting from the
          sale thereof to Investors pursuant thereto; all personal property,
          contract rights, servicing and servicing fees and income or other
          proceeds, amounts and payments payable to the Company as compensation
          or reimbursement, accounts and general intangibles of whatsoever kind
          relating to the Pledged Mortgages, and all other documents or
          instruments relating to the Pledged Mortgages, including, without
          limitation, any interest of the Company in any fire, casualty or
          hazard insurance policies and any awards made by any public body or
          decreed by any court of competent jurisdiction for a taking or for
          degradation of value in any eminent domain proceeding as the same
          relate to the Pledged Mortgages.

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

               (d) All now existing or hereafter acquired cash delivered to or
          otherwise in the possession of the Lender or its agent, bailee or
          custodian or designated on the books and records of the Company as
          assigned and pledged to the Lender.

               (e) All Chattel Paper, Instruments, General Intangibles,
          Certificated Securities, Uncertificated Securities and Investment
          Property, as those terms are defined in the Texas Uniform Commercial
          Code, arising from the foregoing Collateral.

               (f) All cash and non-cash proceeds of the foregoing Collateral,
          including all dividends, distributions and other rights in connection
          with, and all additions to, modifications of and replacements for, the
          foregoing Collateral, and all products and proceeds of the foregoing
          Collateral, together with whatever is receivable or received when the
          foregoing Collateral or proceeds thereof are sold, collected,
          exchanged or otherwise disposed of, whether such disposition is
          voluntary or involuntary, including, without limitation, all rights to
          payment with

                                       18

<PAGE>

          respect to any cause of action affecting or relating to the foregoing
          Collateral or proceeds thereof.

     3.2 Delivery of Collateral Documents. The Lender or its designee
exclusively shall deliver Pledged Mortgages to an Investor for its examination
and purchase. In such cases where the Lender must deliver documents to an
Investor, the Lender must receive signed shipping instructions (in the form of
Exhibit attached hereto), no later than 2:00 p.m. Houston, Texas time one (1)
Business Day prior to the expiration of the appended Purchase Commitment. If
shipping instructions are received by Lender before 2:00 p.m. Houston, Texas
time of any Business Day, Lender will ship the documents together with the
Bailee Letter (in form of Exhibit) to the Investor on the same Business Day,
otherwise Lender will ship the documents the next Business Day following receipt
of shipping instructions. The Lender may deliver any document relating to the
Collateral to the Company for correction or completion against a trust receipt
in the form of Exhibit attached hereto executed by the Company. The Company
hereby represents and warrants to and agrees with the Lender that any request by
the Company for release of the Collateral consisting of or relating to Mortgage
Loans to the Company shall be solely for the purposes of correcting clerical or
non-substantial documentation problems in preparation for returning such
Collateral to the Lender for ultimate sale or exchange and the aggregate
Collateral Value of the Collateral released to the Company pursuant to this
Section 3.2 will not exceed Five Hundred Thousand Dollars ($500,000.00) the
Company shall request such release in compliance with all of the terms and
conditions of such release set forth herein; and the Company will return to the
Lender such documentation released to the Company pursuant to this Section 3.2
within ten (10) Business Days after such delivery.

     3.3 Delivery of Additional Collateral or Mandatory Prepayment. At any time
that the aggregate Collateral Value of the Collateral then pledged hereunder is
less than the aggregate amount of the Advances then outstanding hereunder, the
Lender may request, and the Company shall within two (2) Business Days after
Notice by the Lender (a) deliver to the Lender or its designee for pledge
hereunder additional Mortgage Loans and/or cash, in aggregate amounts sufficient
to cover the difference between the Collateral Value of the Collateral pledged
and the aggregate amount of Advances outstanding hereunder, or (b) repay the
Advances in an amount sufficient to reduce the aggregate balance thereof
outstanding to an amount equal to or below the Collateral Value of the
Collateral pledged hereunder.

     3.4 Right of Redemption from Pledge. So long as no Event of Default has
occurred, the Company may redeem a Mortgage Loan, Mortgage-backed Security, by
notifying the Lender of its intention to redeem such Mortgage Loan,
Mortgage-backed Security, from pledge and by paying, or causing an Investor to
pay, to the Lender, for application to prepayment of the principal balance of
the Note, an amount (the "Redemption Amount") equal to the Collateral Value of
the Mortgage Loan, to be released as of the date of such application, but, in
the case of a Pledged Mortgage Loan, not less than the amount of the Advance
made with respect to or relating to such Mortgage Loan or Mortgage-backed
Security.

     3.5 Collection and Servicing Rights. So long as no Event of Default shall
have occurred and be continuing , the Company shall be entitled to service and
receive and collect directly all sums payable to the Company in respect of the
Collateral other than proceeds of any

                                       19

<PAGE>

Purchase Commitment or proceeds of the sale of any Collateral. Following the
occurrence and during the continuance of any Event of Default, the Lender or its
designee shall thereafter be entitled to service and receive and collect all
sums payable to the Company in respect of the Collateral, and in such case (a)
the Lender or its designee in its discretion may, in its own name or in the name
of the Company or otherwise, demand, sue for, collect or receive any money or
property at any time payable or receivable on account of or in exchange for any
of the Collateral, but shall be under no obligation to do so, (b) the Company
shall, if the Lender so requests, forthwith pay to the Lender at its principal
office all amounts thereafter received by the Company upon or in respect of any
of the Collateral, advising the Lender as to the source of such funds, and (c)
all amounts so received and collected by the Lender shall be held by it as part
of the Collateral.

     3.6 Return or Release of Collateral at End of Commitment. If (a) the
Commitment shall have expired or been terminated, and (b) no Advances, interest
or other Obligations evidenced by the Loan Documents or due under this Agreement
shall be outstanding and unpaid, the Lender shall deliver or release all
Collateral in its possession to the Company. The receipt of the Company for any
Collateral released or delivered to the Company pursuant to any provision of
this Agreement shall be a complete and full acquittance for the Collateral so
returned, and the Lender shall thereafter be discharged from any liability or
responsibility therefor.

4.   CONDITIONS PRECEDENT.

     4.1 Initial Advance. The obligation of the Lender to make the initial
Advance under this Agreement is subject to the satisfaction, in the sole
discretion of the Lender, on or before the date thereof, of the following
conditions precedent:

               (a) The Lender shall have received the following, all of which
          must be satisfactory in form and content to the Lender, in its sole
          discretion:

                    (1) The Loan Documents dated as of the date hereof duly
               executed by the Company;

                    (2) Certified copies of each Company's articles of formation
               and membership agreement and certificates of good standing dated
               no less recently than ninety (90) days prior to the date of this
               Agreement and a certification from the taxing authority of the
               state of formation stating that the Company is in good standing
               with said taxing authority;

                    (3) An original resolution of the members of each Company,
               certified as of the date of this Agreement by the Company's
               managing member, authorizing the execution, delivery and
               performance of this Agreement and the other Loan Documents, and
               all other instruments or documents to be delivered by the Company
               pursuant to this Agreement;

                    (4) A certificate (in the form of Exhibit J) of each
               Company's managing member as to the resolution of the members of
               each Company

                                       20

<PAGE>

               authorizing the execution, delivery and performance of this
               Agreement and the other Loan Documents and the incumbency and
               authenticity of the signatures of the officers of the Company
               executing this Agreement and the other Loan Documents and each
               Advance Request and all other instruments or documents to be
               delivered pursuant hereto (the Lender being entitled to rely
               thereon until a new such certificate has been furnished to the
               Lender);

                    (5) Consolidated Financial statements of the Company (and
               their Subsidiaries, on a consolidated basis) containing an
               audited balance sheet as of November 15, 1999 (the "Statement
               Date") and related statements of income, changes in partners'
               equity and cash flows for the period ended on the Statement Date,
               all prepared in accordance with GAAP applied on a basis
               consistent with prior periods and in the case of the statements
               as of the Statement Date, audited by independent certified public
               accountants of recognized standing acceptable to the Lender;

                    (6) A favorable written opinion of outside counsel to the
               Company, dated as of the date of this Agreement, to be in
               substantially the form of Exhibit M hereto, and addressed to the
               Lender;

                    (7) A tax, lien and judgment search of the appropriate
               public records for each Company, including a search of Uniform
               Commercial Code financing statements, which search shall not have
               disclosed the existence of any prior Lien on the Collateral other
               than in favor of the Lender or as permitted hereunder;

                    (8) Copies of the certificates, documents or other written
               instruments which evidence each Company's eligibility described
               in Section 5.11 hereof, all in form and substance satisfactory to
               the Lender;

                    (9) Copies of Bane NLC's errors and omissions insurance
               policy or mortgage impairment insurance policy and blanket bond
               coverage policy, all in form and content satisfactory to the
               Lender, showing compliance by the Company as of the date of this
               Agreement with the related provisions of Section 6.8 hereof and
               showing Lender as an additional loss payee on such policies;

                    (10) Executed financing statements in recordable form
               covering the Collateral and ready for filing in all jurisdictions
               required by the Lender;

                    (11) Evidence that the Funding Account has been established
               with the Lender.

                                       21

<PAGE>

     4.2 Each Advance. The obligation of the Lender to make the initial and each
subsequent Advance under this Agreement is subject to the satisfaction, in the
sole discretion of the Lender, as of the date of each such Advance, of the
following additional conditions precedent:

               (a) In connection with an Advance, the Company shall have
          delivered to the Lender the Advance Request or the Electronic Request,
          Collateral Documents, and documents required under and shall have
          satisfied the procedures set forth in Section 2.2 and Exhibit C,
          according to the type of Collateral to be financed through the
          requested Advance. All items delivered to the Lender or its designee
          shall be satisfactory to the Lender in form and content, and the
          Lender may reject such of them as do not meet the requirements of this
          Agreement or of any related Purchase Commitment.

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

               (c) The representations and warranties of the Company contained
          in Article 5 hereof shall be accurate and complete in all material
          respects as if made on and as of the date of each Advance.

               (d) The Company shall have performed all agreements to be
          performed by it hereunder and, as of the date of the Advance Request,
          and after giving effect to the requested Advance, there shall exist no
          Default or Event of Default hereunder.

               (e) The Company shall not have incurred any material liabilities,
          direct or contingent, except as approved by Lender pursuant to Section
          7.17, since the dates of the Company's most recent financial
          statements theretofore delivered to the Lender.

               (f) The Lender shall have received from counsel for the Company,
          if requested by the Lender in its sole discretion, an updated opinion,
          in form and substance satisfactory to the Lender, addressed to the
          Lender and dated as of the date of such Advance, covering such of the
          matters as the Lender may reasonably request.

               (g) Such additional documents, instruments, and information as
          Lender or its legal counsel may require.

     Acceptance of the proceeds of the requested Advance by the Company shall be
deemed a representation by the Company that all conditions set forth in this
Article 4 shall have been satisfied as of the date of such Advance.

                                       22

<PAGE>

5. REPRESENTATIONS AND WARRANTIES.

     The Company hereby represents and warrants to the Lender, as of the date of
this Agreement and (unless otherwise notified in writing by the Company and
Lender, in its sole discretion, approves in writing) as of the date of each
Advance Request and the making of each Advance, that:

     5.1 Organization; Good Standing; Subsidiaries. Each Company is a limited
liability company duly organized, validly existing and in good standing under
the laws of the jurisdiction of its formation, has the full legal power and
authority to own its property and to carry on its business as currently
conducted and is duly qualified as a foreign entity to do business and is in
good standing in each jurisdiction in which the transaction of its business
makes such qualification necessary, except in jurisdictions, if any, where a
failure to be in good standing has no material adverse effect on the business,
operations, assets or financial condition of the Company or any such Subsidiary.
For the purposes hereof, good standing shall include qualification for any and
all licenses and payment of any and all taxes required in the jurisdiction of
its formation and in each jurisdiction in which the Company transacts business.
The Company has no Subsidiaries except as set forth on Exhibit G hereto. Exhibit
G sets forth with respect to each such Subsidiary, its name, address, place of
incorporation or formation, each state in which it is qualified as a foreign
corporation or other entity, and the percentage ownership of the Company in such
Subsidiary.

     5.2 Authorization and Enforceability. Each Company has all requisite power
and authority to execute, deliver, create, issue, comply and perform this
Agreement, the Note and all other Loan Documents to which the Company is party
and to make the borrowings hereunder. The execution, delivery and performance by
the Company of this Agreement, the Note and all other Loan Documents to which
the Company is party and the making of the borrowings hereunder and thereunder,
have been duly and validly authorized by all necessary action on the part of the
Company (none of which actions has been modified or rescinded, and all of which
actions are in full force and effect) and do not and will not conflict with or
violate any provision of law or of the Articles of Formation of the Company,
conflict with or result in a breach of or constitute a default or require any
consent under any contracts to which Company is a party, or result in the
creation of any Lien upon any property or assets of the Company other than the
Lien on the Collateral granted hereunder, or result in or require the
acceleration of any Indebtedness of the Company pursuant to any agreement,
instrument or indenture to which the Company is a party or by which the Company
or its property may be bound or affected. This Agreement, the Note and all other
Loan Documents contemplated hereby or thereby constitute legal, valid, and
binding obligations of the Company, enforceable in accordance with their
respective terms, except as limited by bankruptcy, insolvency or other such laws
affecting the enforcement of creditors' rights generally.

     5.3 Financial Condition. The Consolidated balance sheet of the Company
provided to Lender pursuant to Section 4.1(a)(5) hereof (and if applicable, its
Subsidiaries, on a consolidating and consolidated basis) as at the Statement
Date, and the related statements of income, changes in partners' equity, and
cash flows for the fiscal year ended on the Statement Date, heretofore

                                       23

<PAGE>

furnished to the Lender, fairly present the financial condition of the Company
and its Subsidiaries as at the Statement Date and the Interim Date and the
results of its and their operations for the fiscal period ended on the Statement
Date and the Interim Date. The Company had, on the Statement Date and the
Interim Date, no known material liabilities, direct or indirect, fixed or
contingent, matured or unmatured, or liabilities for taxes, long-term leases or
unusual forward or long-term commitments not disclosed by, or reserved against
in, said balance sheet and related statements, and at the present time there are
no material unrealized or anticipated losses from any loans, advances or other
commitments of the Company except as heretofore disclosed to the Lender in
writing. Said financial statements were prepared in accordance with GAAP applied
on a consistent basis throughout the periods involved. Since the Statement Date,
there has been no material adverse change in the business, operations, assets or
financial condition of the Company or its Subsidiaries, nor is the Company aware
of any state of facts particular to the Company which (with or without notice or
lapse of time or both) would or could result in any such material adverse
change.

     5.4 Litigation. Except as disclosed on Exhibit H, there are no actions,
claims, suits or proceedings pending, or to the knowledge of the Company,
threatened or reasonably anticipated against or affecting the Company or any
Subsidiary of the Company in any court or before any arbitrator or before any
government commission, board, bureau or other administrative agency which, if
adversely determined, may reasonably be expected to result in any material and
adverse change in the business, operations, assets or financial condition of the
Company .

     5.5 Compliance with Laws. To the knowledge of Company, neither the Company
nor any Subsidiary of the Company is in violation of any provision of any law,
or of any judgment, award, rule, regulation, order, decree, writ or injunction
of any court or public regulatory body or authority which might have a material
adverse effect on the business, operations, assets or financial condition of the
Company or any of Company's Subsidiaries, as a whole.

     5.6 Regulation U. The Company is not engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock, and no part of the proceeds of any Advances
made hereunder will be used to purchase or carry any Margin Stock or to extend
credit to others for the purpose of purchasing or carrying any Margin Stock.

     5.7 Investment Company Act. Neither the Company nor any of its Subsidiaries
is an "investment company" or controlled by an "investment company" within the
meaning of the Investment Company Act of 1940, as amended.

     5.8 Agreements. Neither the Company nor any Subsidiary of the Company is a
party to any agreement, instrument or indenture, or subject to any restriction,
materially and adversely affecting its business, operations, assets or financial
condition, except as disclosed in the financial statements described in Section
5.3 hereof. The Company and each Subsidiary of the Company are not in default in
the performance, observance or fulfillment of any of the obligations, covenants
or conditions contained in any agreement, instrument, or indenture which

                                       24

<PAGE>

default could have a material adverse effect on the business, operations,
properties or financial condition of the Company as a whole. No holder of any
Indebtedness of the Company or of any of its Subsidiaries has given notice of
any alleged default thereunder or, if given, the same has been cured or will be
cured by Company within the cure period provided therein, and no liquidation or
dissolution of the Company or any of its Subsidiaries and no receivership,
insolvency, bankruptcy, reorganization or other similar proceedings relative to
the Company or any of its Subsidiaries or any of their respective properties is
pending, or to the knowledge of the Company, threatened.

     5.9 Title to Properties. The Company and each Subsidiary of the Company has
good, valid, insurable (in the case of real property) and marketable title to
all of its properties and assets (whether real or personal, tangible or
intangible) reflected on the financial statements described in Section 5.3
hereof, and all such properties and assets are free and clear of all Liens
except as disclosed in such financial statements and the Liens in favor of the
lenders set forth on Exhibit B hereto and not prohibited under this Agreement.

     5.10 ERISA. All plans ("Plans") of a type described in Section 3(3) of
EPISA in respect of which the Company or any Subsidiary of the Company is an
"Employer," as defined in Section 3(5) of ERISA, are in substantial compliance
with ERISA, and none of such Plans is insolvent or in reorganization, has an
accumulated or waived funding deficiency within the meaning of Section 412 of
the Internal Revenue Code, and neither the Company nor any Subsidiary of the
Company has incurred any material liability (including any material contingent
liability) to or on account of any such Plan pursuant to Sections 4062, 4063,
4064, 4201 or 4204 of ERISA; and no proceedings have been instituted to
terminate any such Plan, and no condition exists which presents a material risk
to the Company or a Subsidiary of the Company of incurring a liability to or on
account of any such Plan pursuant to any of the foregoing Sections of ERISA. No
Plan or trust forming a part thereof has been terminated since December 1, 1974.

     5.11 Eligibility. Each Company has all requisite power and authority and
all necessary licenses, permits, franchises and other authorizations to own and
operate its property and to carry on its business as now conducted. If approved
now or hereafter as a lender or seller/servicer for any one or more of the
governmental agencies as set forth below, the Company will remain at all times
approved and qualified and in good standing and meet all requirements applicable
to such status

     5.12 Special Representations Concerning Collateral. Each Company hereby
represents and warrants to the Lender, as of the date of this Agreement and as
of the date of each Advance, that:

               (a) With the exception of Subwarehouse Mortgage Loans prior to
          assignment by NLCI, the Company is the legal and equitable owner and
          holder, free and clear of all Liens (other than Liens granted
          hereunder), of the Pledged Mortgages. All Pledged Mortgages and
          Purchase Commitments have been duly authorized and validly granted or
          issued to the Company, and all of the foregoing items of Collateral
          comply with all of the requirements of this Agreement, and have been
          validly pledged or assigned to the Lender, subject to no other Liens.

                                       25

<PAGE>

               (b) The Company has, and will continue to have, the full right,
          power and authority to pledge the Collateral pledged and to be pledged
          by it hereunder.

               (c) Any Mortgage Loan and related documents included in the
          Pledged Mortgages (1) as of the date of the Advance Request for such
          Mortgage Loan, has been duly executed and delivered by the parties
          thereto at a closing held not more than sixty (60) days prior to such
          date; (2) has been made in compliance with all requirements of the
          Real Estate Settlement Procedures Act, Equal Credit Opportunity Act,
          the federal Truth-In-Lending Act and all other applicable laws and
          regulations; (3) is valid and enforceable in accordance with its
          terms, without defense or offset; (4) has not been modified or amended
          except in writing, which writing is part of the Collateral Documents,
          nor any requirements thereof waived; and (5) complies with the terms
          of this Agreement and, if applicable, with the related Purchase
          Commitment held by the Company. Each Mortgage Loan has been fully
          advanced in the face amount thereof and each Mortgage creates a Lien
          on the premises described therein.

               (d) No monetary default, nor, to the knowledge of the Company,
          any event which, with notice or lapse of time or both, would become a
          default, has occurred and is continuing under any Mortgage Loan
          included in the Pledged Mortgages; provided, however, that, with
          respect to Pledged Mortgages which have already been pledged as
          Collateral hereunder, if any such default or event has occurred, the
          Company will promptly notify the Lender and the same shall not have
          continued for more than sixty (60) days.

               (e) All fire and casualty policies covering Mortgaged Property
          encumbered by a Pledged Mortgage (1) name the Company and its
          successors and assigns as the insured under a standard mortgagee
          clause, (2) are and will continue to be in full force and effect, and
          (3) afford and will continue to afford insurance against fire and such
          other risks as are usually insured against in the broad form of
          extended coverage insurance from time to time available, as well as
          insurance against flood hazards if the same is required.

               (f) Pledged Mortgages encumbering Mortgaged Property located in a
          special flood hazard area designated as such by the Secretary of HUD
          are and shall continue to be covered by special flood insurance under
          the National Flood Insurance Program.

               (g) Each Pledged Mortgage is supported by an appraisal that meets
          the appraisal requirements of FNMA or FHLMC (in the case of
          residential Mortgaged Property), or the Office of Thrift Supervision
          for the type of Mortgaged Property securing that Pledged Mortgage.

     5.13 RICO. The Company is not in violation of any laws, statutes or
regulations, including, without limitation, RICO, which contain provisions which
could potentially override Lender's security interest in the Collateral.

                                       26

<PAGE>

     5.14 Proper Names. The Company does not operate in any jurisdiction under a
trade name, division, division name or name other than those names set forth on
Exhibit H attached hereto and all such names included on Exhibit H are utilized
by the Company only in the jurisdictions listed therein.

     5.15 Direct Benefit From Loans. The Company has received, or, upon the
execution and funding thereof, will receive (a) direct benefit from the making
and execution of this Agreement and the other Loan Documents to which it is a
party, and (b) fair and independent consideration for the entry into, and
performance of, this Agreement and the other Loan Documents to which it is a
party. Contemporaneously with the disbursements of each Advance by the Lender to
the Company, all such proceeds will be used to finance the origination or
purchase of Mortgage Loans.

     5.16 Loan Documents Do Not Violate Other Documents. Neither the execution
and delivery by the Company of this Agreement or any other Loan Document to
which it is a party nor the consummation of the transactions herein and therein
contemplated, nor the performance of, or compliance with, the terms and
provisions hereof and thereof, does or will contravene, breach or conflict with
any provision of either of its Articles of Formation, or any applicable law,
statute, rule or regulation or any judgment, decree, writ, injunction,
franchise, order or permit applicable to the Company or its assets or
properties, or does or will conflict or be inconsistent with, or does or will
result in any breach or default of, any of the terms, covenants, conditions or
provisions of, or constitute a default under, or result in the creation or
imposition of any Lien upon any of the property or assets of the Company
pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement,
or other instrument to which the Company is a party or by which the Company or
any of its property may be bound, the contravention, conflict, inconsistency,
breach or default of which will have a materially adverse effect on the
Company's condition, financial or otherwise, or affect its ability to perform,
promptly and fully, its obligations hereunder or under any of the other Loan
Documents.

     5.17 Consents Not Required. Except for those consents that have already
been obtained and delivered to Lender or required as a condition to any Advance
hereunder, no consent of any Person and no consent, license, permit, approval,
or authorization of, exemption by, or registration or declaration with, any
Tribunal is required in connection with the execution, delivery, performance,
validity, or enforceability of this Agreement or any of the Loan Documents by
the Company.

     5.18 Material Fact Representations. Neither the Loan Documents nor any
other agreement, document, certificate, or written statement furnished to the
Lender by or on behalf of the Company in connection with the transactions
contemplated in any of the Loan Documents contains any untrue statement of a
material adverse fact. There are no material adverse facts or conditions
relating to the making of the Commitment, any of the Collateral, and/or the
financial condition and business of the Company known to the Company which have
not been fully disclosed, in writing, to the Lender, it being understood that
this representation is made as of, and shall be limited to the date of this
Agreement. All writings heretofore or hereafter exhibited or delivered to the
Lender by or on behalf of the Company are and will be genuine and what they
purport to be.

                                       27

<PAGE>

     5.19 Place of Business. The principal place of business of the Company is
700 West Hillsborough Boulevard, Deerfield Beach, Florida 33441, and the chief
executive office of the Company and the office where it keeps its financial
books and records relating to its property and all contracts relating thereto
and all accounts arising therefrom is located at the address set forth for the
Company in Section 9 hereof.

     5.20 Use of Proceeds; Business Loans. The Company will use the proceeds of
the Advances made pursuant to the Commitment solely as follows, and for no other
purpose: finance the origination and purchase of Mortgage Loans. All loans
evidenced by the Note are and shall be "business loans", as such term is used in
the Depository Institutions Deregulation and Monetary Control Act of 1980, as
amended, and such loans are for business or commercial purposes and not
primarily for personal, family, household or agricultural use, as such terms are
used or defined in Texas Revised Civil Statutes, Texas Finance Code, Regulation
Z promulgated by the Board of Governors of the Federal Reserve System, and
Titles I and V of the Consumer Credit Protection Act. The provisions of the
Texas Finance Code which regulate revolving loans and revolving triparty
accounts) shall not apply to this Agreement.

     5.21 No Undisclosed Liabilities. Other than as permitted in Section 7.17
hereof, the Company does not have any liabilities or Indebtedness, direct or
contingent, except for liabilities or Indebtedness which, in the aggregate, do
not exceed Twenty-Five Thousand Dollars ($25,000.00).

     5.22 Tax Returns and Payments. All federal, state and local income, excise,
property and other tax returns required to be filed with respect to Company's
operations and those of its Subsidiaries in any jurisdiction have been filed on
or before the due date thereof (plus any applicable extensions); all such
returns are true and correct; all taxes, assessments, fees and other
governmental charges upon the Company, and Company's Subsidiaries and upon its
property, income or franchises, which are due and payable have been paid,
including, without limitation, all FICA payments and withholding taxes, if
appropriate, other than those which are being contested in good faith by
appropriate proceedings, diligently pursued and as to which the Company has
established adequate reserves determined in accordance with GAAP, consistently
applied. The amounts reserved, as a liability for income and other taxes
payable, in the financial statements described in Section 5.3 hereof are
sufficient for payment of all unpaid federal, state and local income, excise,
property and other taxes, whether or not disputed, of the Company and its
Subsidiaries, accrued for or applicable to the period and on the dates of such
financial statements and all years and periods prior thereto and for which the
Company, and Company's Subsidiaries may be liable in their own right or as
transferee of the assets of, or as successor to, any other Person.

     5.23 Subsidiaries. The Company has not issued, and does not have
outstanding, any warrants, options, rights or other obligations to issue or
purchase any of its partnership interests or other securities. The outstanding
partnership interests of the Company have been duly authorized and validly
issued and are fully paid and nonassessable. All of Company's Subsidiaries are
listed on Exhibit H, attached hereto.

                                       28

<PAGE>

     5.24 Holding Company. The Company is not a "holding company" or a
"subsidiary company" of a "holding company" within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

     5.25 Year 2000 Issue. The Company and its Subsidiaries have reviewed the
effect of the year 2000 Issue on the computer software, hardware, and firmware
systems and equipment containing embedded microchips owned or operated by or for
the Company and its Subsidiaries or used or relied upon in the conduct of their
business (including systems and equipment supplied by others or with which such
computer systems of the Company and its Subsidiaries interface). The Company and
its Subsidiaries have reviewed and determined that the costs to the Company and
its Subsidiaries of any reprogramming required as a result of the Year 2000
Issue to permit the proper functioning of such systems and equipment and the
proper processing of data, and the testing of such reprogramming, and of the
reasonably foreseeable consequences of the year 2000 Issue to the Company or any
of its Subsidiaries (including reprogramming errors and the failure of systems
or equipment supplied by others), are not reasonably expected to result in a
Default or Event of Default or to have a material adverse effect on the
business, assets, operations, prospects, or condition (financial or otherwise)
of the Company or its Subsidiaries.

6. AFFIRMATIVE COVENANTS.

     The Company hereby covenants and agrees that, so long as the Commitment is
outstanding or there remain any Obligations of the Company to be paid or
performed under this Agreement or under any other Loan Document, the Company
shall:

     6.1 Payment of Note. Punctually pay or cause to be paid the principal of,
interest on and all other amounts payable hereunder and under the Note in
accordance with the terms thereof.

     6.2 Financial Statements and Other Reports. Deliver to the Lender:

               (a) As soon as available and in any event within thirty (30) days
          after the end of each calendar month, statements of income and changes
          in partners' equity and cash flow of the Company and, if applicable,
          Company's Subsidiaries, on a consolidated and consolidating basis for
          the immediately preceding month, and related balance sheet as at the
          end of the immediately preceding month, all in reasonable detail,
          prepared in accordance with GAAP applied on a consistent basis, and
          certified as to the fairness of presentation by the president and
          chief financial officer of the Company, subject, however, to year-end
          audit adjustments.

               (b) As soon as available and in any event within ninety (90) days
          after the close of each fiscal year: statements of income, changes in
          partners' equity and cash flows of the Company, and, if applicable,
          Company's Subsidiaries, on a consolidated and consolidating basis for
          such year, the related balance sheet as at the end of such year
          (setting forth in comparative form the corresponding figures for the
          preceding fiscal year), all in reasonable detail, prepared in
          accordance with GAAP applied on a consistent basis throughout the
          periods involved, and

                                       29

<PAGE>

          accompanied by an opinion in form and substance satisfactory to the
          Lender and prepared by an accounting firm reasonably satisfactory to
          the Lender, or other independent certified public accountants of
          recognized standing selected by the Company and acceptable to the
          Lender, as to said financial statements and a certificate signed by
          the president and chief financial officer of the Company stating that
          said financial statements fairly present the financial condition and
          results of operations of the Company and, if applicable, Company's
          Subsidiaries as at the end of, and for, such year.

               (c) Together with each delivery of financial statements required
          in this Section 6.2, an Officer's Certificate in substantially the
          form of Exhibit F hereto.

               (d) Reports in respect of the Pledged Mortgages, in such detail
          and at such times as the Lender in its discretion may request at any
          time or from time to time, including, without limitation, a monthly
          pipeline report in form satisfactory to Lender, to be delivered with
          the monthly financial statements required in Section 6.2(a).

               (e) Copies of all regular or periodic financial and other
          reports, if any, which the Company shall file with the Securities and
          Exchange Commission or any governmental agency successor thereto and
          copies of any audits or forms filed with any other governmental
          entity.

               (f) From time to time, with reasonable promptness, such further
          information regarding the business, operations, properties or
          financial condition of the Company as the Lender may reasonably
          request.

     6.3 Maintenance of Existence; Conduct of Business. Preserve and maintain
its existence in good standing and all of its rights, privileges, licenses and
franchises necessary in the normal conduct of its business, including, without
limitation, its eligibility as lender, seller/servicer and issuer described
under Section 5.11 hereof, and, without the Lender's prior written consent, make
no material change in the nature or character of its business or engage in any
business in which it was not engaged, or which is not reasonably related to such
business, on the date of this Agreement.

     6.4 Compliance with Applicable Laws. Comply with the requirements of all
applicable laws, rules, regulations and orders of any governmental authority, a
breach of which could materially adversely affect its business, operations,
assets, or financial condition, except where contested in good faith and by
appropriate proceedings, and with sufficient reserves established therefor.

     6.5 Inspection of Properties and Books. Permit authorized representatives
of the Lender to (a) discuss the business, operations, assets and financial
condition of the Company and Company's Subsidiaries with their officers and
employees and to examine their books of account, records, reports and other
papers and make copies or extracts thereof, and (b) inspect all of the Company's
property and all related information and reports at Lender's expense, all at

                                       30

<PAGE>

such reasonable times as the Lender may request. The Company will provide its
accountants with a copy of this Agreement promptly after the execution hereof
and will instruct its accountants to answer candidly any and all questions that
the officers of the Lender or any authorized representatives of the Lender may
address to them in reference to the financial condition or affairs of the
Company and Company's Subsidiaries. The Company may have its representatives in
attendance at any meetings between the officers or other representatives of the
Lender and the Company accountants held in accordance with this authorization.

     6.6 Notice. Give prompt written notice to the Lender of (a) any action,
suit or proceeding instituted by or against the Company or any of its
Subsidiaries in any federal or state court or before any commission or other
regulatory body (federal, state or local, domestic or foreign) which action,
suit or proceeding has at issue in excess of Twenty-Five Thousand Dollars
($25,000.00) (except for normal collection and foreclosure proceedings initiated
by the Company in connection with a Mortgage Loan or any other mortgage loan),
or any such proceedings threatened against the Company, or any of Company's
Subsidiaries in writing containing the details thereof, (b) the filing,
recording or assessment of any federal, state or local tax Lien against it, or
any of its assets or any of its Subsidiaries, (c) the occurrence of any Event of
Default hereunder or the occurrence of any Default and continuation thereof for
five (5) days, (d) the suspension, revocation or termination of the Company's
eligibility, in any respect, as approved lender, seller/servicer or issuer as
described under Section 5.11 hereof, (e) the transfer, loss or termination of
any Servicing Contract to which the Company is a party, or which is held for the
benefit of the Company, and the reason for such transfer, loss or termination,
if known to the Company, and (f) any other action, event or condition of any
nature which may lead to or result in a material adverse effect upon the
business, operations, assets, or financial condition of the Company or Company's
Subsidiaries or which, with or without notice or lapse of time or both, would
constitute a default under any other agreement instrument or indenture to which
the Company is a party or to which the Company its properties or assets may be
subject.

     6.7 Payment of Indebtedness, Taxes, etc. Pay and perform all obligations
and Indebtedness of the Company, and cause to be paid and performed all
obligations and Indebtedness of its Subsidiaries in accordance with the terms
thereof and pay and discharge or cause to be paid and discharged all taxes,
assessments and governmental charges or levies imposed upon the Company or its
Subsidiaries, or upon their respective income, receipts or properties before the
same shall become past due, as well as all lawful claims for labor, materials
and supplies or otherwise which, if unpaid, might become a Lien or charge upon
such properties or any part thereof; provided, however, that the Company and its
Subsidiaries shall not be required to pay obligation, Indebtedness, taxes,
assessments or governmental charges or levies or claims for labor, materials or
supplies for which the Company or its Subsidiaries shall have obtained an
adequate bond or adequate insurance or which are being contested in good faith
and by proper proceedings which are being reasonably and diligently pursued if
such proceedings do not involve any likelihood of the sale, forfeiture or loss
of any such property or any interest therein while such proceedings are pending,
and provided further that book reserves adequate under generally accepted
accounting principles shall have been established with respect thereto

                                       31

<PAGE>

and provided further that the owing Person's title to, and its right to use, its
property is not materially adversely affected thereby.

     6.8 Insurance. Maintain (a) errors and omissions insurance or mortgage
impairment insurance and blanket bond coverage, with such companies and in such
amounts as satisfy prevailing requirements applicable to a qualified mortgage
originating institution, and (b) liability insurance and fire and other hazard
insurance on its properties, with responsible insurance companies approved by
the Lender, in such amounts and against such risks as is customarily carried by
similar businesses operating in the same vicinity; and (c) within thirty (30)
days after notice from the Lender, obtain such additional insurance as the
Lender shall reasonably require, all at the sole expense of the Company. Copies
of such policies shall be furnished to the Lender without charge upon obtaining
such coverage or any renewal of or modification to such coverage.

     6.9 Closing Instructions. Indemnify and hold the Lender harmless from and
against any loss, including reasonable attorneys' fees and costs, attributable
to the failure of a title insurance company, agent or attorney to comply with
the disbursement or instruction letter or letters of the Company or of the
Lender relating to any Mortgage Loan. The Lender shall have the right to
pre-approve the closing instructions of the Company to the title insurance
company, agent or attorney in any case where the Mortgage Loan to be created at
settlement is intended to be warehoused by the Company pursuant hereto.

     6.10 Other Loan Obligations. Perform all obligations under the terms of
each loan agreement, note, mortgage, security agreement or debt instrument by
which the Company is bound or to which any of its property is subject, and
promptly notify the Lender in writing of a declared default under or the
termination, cancellation, reduction or non-renewal of any of its other lines of
credit or financing agreements with any other lender. Exhibit B hereto is a true
and complete list of all such lines of credit or financing agreements as of the
date hereof.

     6.11 Use of Proceeds of Advances. Use the proceeds of each Advance solely
for the purpose of financing or purchasing Pledged Mortgages.

     6.12 Special Affirmative Covenants Concerning Collateral.

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

               (b) Service or cause to be serviced all Pledged Mortgages in
          accordance with the standard requirements of the issuers of Purchase
          Commitments covering the same, including without limitation taking all
          actions necessary to enforce the obligations of the obligors under
          such Mortgage Loans. The Company shall hold all escrow funds collected
          in respect of Pledged Mortgages in trust, without commingling the same
          with non-custodial funds, and apply the same for the purposes for
          which such funds were collected.

                                       32

<PAGE>

               (c) Execute and deliver to the Lender such Uniform Commercial
          Code financing statements with respect to the Collateral as the Lender
          may request. The Company shall also execute and deliver to the Lender
          such further instruments of sale, pledge or assignment or transfer,
          and such powers of attorney, as required by the Lender to secure the
          Collateral, and shall do and perform all matters and things necessary
          or desirable to be done or observed, for the purpose of effectively
          creating, maintaining and preserving the security and benefits
          intended to be afforded the Lender under this Agreement. The Lender
          shall have all the rights and remedies of a secured party under the
          Uniform Commercial Code of Texas, or any other applicable law, in
          addition to all rights provided for herein.

               (d) Notify the Lender within two (2) Business Days after receipt
          of notice from an Investor of any default under, or of the termination
          of, any Purchase Commitment relating to any Pledged Mortgage.

               (e) Promptly comply in all respects with the terms and conditions
          of all Purchase Commitments, and all extensions, renewals and
          modifications or substitutions thereof or thereto. The Company will
          cause to be delivered to the Investor the Pledged Mortgages to be sold
          under each Purchase Commitment not later than the expiration thereof.

               (f) Maintain, at its principal office or in a regional office
          approved by the Lender, or in the office of a computer service bureau
          engaged by the Company and approved by the Lender, and, upon request,
          shall make available to the Lender the originals, or copies in any
          case where the originals have been delivered to the Lender or to an
          Investor, of its Mortgage Notes and Mortgages included in Pledged
          Mortgages, Purchase Commitments, and all related Mortgage Loan
          documents and instruments, and all files, surveys, certificates,
          correspondence, appraisals, computer programs, tapes, discs, cards,
          accounting records and other information and data relating to the
          Collateral.

     6.13 Cure of Defects in Loan Documents. Promptly cure and cause to be
promptly cured any defects in the creation, issuance, execution and delivery of
this Agreement and the other Loan Documents; and upon request of the Lender and
at the Company's expense, the Company will promptly execute and deliver, and
cause to be executed and delivered, to the Lender or its designee, all such
additional documents, agreements and/or instruments in compliance with or in
accomplishment of the covenants and agreements of this Agreement and the other
Loan Documents, and/or to create, perfect, preserve, extend and/or maintain any
and all Liens created pursuant hereto or pursuant to any other Loan Document as
valid and perfected Liens (of a priority as set forth in this Agreement) in
favor of the Lender to secure the Obligations, all as reasonably requested from
time to time by the Lender.

                                       33

<PAGE>

7. NEGATIVE COVENANTS.

     The Company hereby covenants and agrees that, so long as the Commitment is
outstanding or there remain any Obligations of the Company to be paid or
performed under this Agreement or any other Loan Document, the Company shall
not, either directly or indirectly, without the prior written consent of the
Lender which shall not unreasonably be withheld:

     7.1 Contingent Liabilities. Assume, incur, create, guarantee, endorse, or
otherwise become or be liable for the obligation of any Person other than the
Company except by endorsement of negotiable instruments for deposit or
collection in the ordinary course of business and excluding the sale of Mortgage
Loans with recourse in the ordinary course of the company's business.

     7.2 Pledge of Mortgage Loans. Except for Mortgage Loans pledged to the
lenders described in Exhibit B (or replacements for such lenders), pledge or
grant a security interest in any existing or future Mortgage Loans acquired by
the Company other than to the Lender except as otherwise expressly permitted in
this Agreement; provided, however, that if no Default or Event of Default has
occurred and is continuing, servicing on individual Mortgage Loans may be sold
concurrently with and incidental to the sale of such Mortgage Loans (with
servicing released) in the ordinary course of the Company's business.

     7.3 Merger; Acquisitions. Liquidate, dissolve, consolidate or merge, or
acquire any substantial part of the assets of another, except for transactions
involving not more than Fifty Thousand Dollars ($50,000.000) each.

     7.4 Loss of Eligibility. Take any action that would cause the Company to
lose all or any part of its status as an eligible lender, seller/servicer and
issuer as described under Section 5.11 hereof.

     7.5 Indebtedness to Tangible Net Worth Ratio. Permit the ratio of
Indebtedness to Tangible Net Worth of the Company (and its Subsidiaries, on a
consolidated basis) to exceed 15:1 computed as of the end of each calendar
month.

     7.6 Minimum Adjusted Tangible Net Worth. Permit Adjusted Tangible Net Worth
of the Company (and its Subsidiaries, on a consolidated basis) to be less than
Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000.00), computed
as of the end of each calendar month.

     7.7 Transactions with Affiliates. Directly or indirectly (a) make any loan,
advance, extension of credit or capital contribution to any of its Affiliates,
(b) transfer, sell, pledge, assign or otherwise dispose of any of its assets to
or on behalf of such Affiliates, (c) merge or consolidate with or purchase or
acquire assets from such Affiliates, or (d) transfer, pledge, or assign or
otherwise pay management fees in excess of Ten Thousand Dollars ($10,000.00) per
annum to or on behalf of such Affiliates (other than Sun Mortgage Advisors, Inc.
under that certain Management Agreement by and between Sun Mortgage Advisors and
NLC Services dated November 11, 1999) and provided that prior to an after giving
effect to any such payment

                                       34

<PAGE>

to Sun Mortgage Advisors, no Event of Default exists, except for transactions
described in clauses (a) through (c) of this Section 7.7 involving not more than
Twenty-Five Thousand Dollars ($25,000.00) each.

     7.8 Limits on Distributions. Pay, make or declare or incur any liability to
pay, make or declare any dividend (excluding stock dividends) or other
distribution, direct or indirect, on or on account of any partnership interests
or any redemption or other acquisition, direct or indirect, of any of its
partnership interests or of any warrants, rights or other options to purchase
any partnership interests nor purchase, acquire, redeem or retire any
partnership interest or other ownership interest in itself whether now or
hereafter outstanding except that so long as no Default, Event of Default or
violation of Sections 7.5, and 7.6 hereof exists at such time, or would exist
immediately thereafter, the Company may declare and pay cash dividends to its
partners; provided, however, that (a) such cash dividends must be declared and
paid within 20 days after delivery to Lender of the financial statements
described in Section 6.2(a) hereof.

     7.9 RICO. Violate any laws, statutes or regulations, whether federal or
state, for which forfeiture of its properties is a potential penalty, including,
without limitations, RICO.

     7.10 No Loans or Investments Except Approved Investments. Without the prior
written consent of Lender, make or permit to remain outstanding any loans or
advances to, or investments in, any Person, except that the foregoing
restriction shall not apply to:

               (a) investments in marketable obligations maturing no later than
          one hundred eighty (180) days from the date of acquisition thereof by
          the Company and issued and fully guaranteed, directly, by the full
          faith and credit of the government of the United States of America or
          any agency thereof; and

               (b) investments in certificates of deposit maturing no later than
          one hundred eighty (180) days from the date of issuance thereof and
          issued by commercial banks in the United States and such banks rated
          by Moody's Investor Service, Inc. and receiving a rating of Prime-2 or
          higher on Moody's short term debt rating or rated by Standard & Poor's
          Corporation and receiving a rating of AA-/A1+ or higher on S&P's short
          term debt rating, or issued by Lender, it being acknowledged and
          agreed that the foregoing requirements shall pertain to certificates
          of deposit issued and/or received on a date on or after the date of
          this Agreement);

               (c) investments not to exceed Two Hundred Thousand Dollars
          ($200,000.00) in the aggregate; and

               (d) that certain certificate of deposit in the amount of note
          more than Three Hundred Thousand Dollars ($300,000) which is pledged
          as security for the Company's lease of its headquarters.

                                       35

<PAGE>

     7.11 Charter Documents and Business Termination.

               (a) Issue, sell or commit to issue or sell any shares of its
          partnership interests of any class, or other equity or investment
          security,

               (b) Amend or otherwise modify its Articles of Formation or
          otherwise change its partnership structure in any manner which will
          have a materially adverse effect on the Company's condition, financial
          or otherwise, or which will have a material adverse effect upon the
          Company's ability to perform, promptly and fully, its obligations
          hereunder or under any of the other Loan Documents, or

               (c) Take any action with a view toward its dissolution,
          liquidation or termination, or, in fact, dissolve, liquidate or
          terminate its existence.

     7.12 Changes in Accounting Methods. Make any change in its accounting
method as in effect on the date of this Agreement or change its fiscal year
ending date from December 31, unless such changes (a) are required for
conformity with generally accepted accounting principles and, in such event, the
Company will give prior written notice of each such change to the Lender or (b)
or if not so required, are in conformity with generally accepted accounting
principles and have the prior written approval of the Lender which approval
shall not be unreasonably withheld.

     7.13 No Sales, Leases or Dispositions of Property. Except in the ordinary
course of its business, the Company will not sell, lease, transfer or otherwise
dispose of all or any material portion or portions or integral part of its
properties or assets, whether now owned or hereafter acquired (whether in a
single transaction or in a series of transactions), or enter into any
arrangement, directly or indirectly, with any person, whereby it shall sell or
transfer any of its properties or assets, whether now owned or hereafter
acquired, and thereafter rent or lease as lessee such property or any part
thereof which it intends to use for substantially the same purpose or purposes
as the property sold or transferred.

     7.14 Changes in Business or Assets. Make any substantial change (a) in the
nature of its business as now conducted, or (b) in the use of its property as
now used and proposed to be used.

     7.15 Changes in Office or Inventory Location. Change the address and/or
location of its chief executive office or principal place of business or the
place where it keeps its books and records or its inventory to a location
outside the State of Florida, unless, prior to any such change, the Company
shall execute and cause to be executed such additional agreements and/or lien
instruments as the Lender may reasonably request to conform with the provisions
hereof and the transactions and perfected Liens in the Collateral contemplated
under this Agreement and the other Loan Documents.

     7.16 Special Negative Covenants Concerning Collateral.

                                       36

<PAGE>

               (a) The Company shall not amend or modify, or waive any of the
          terms and conditions of, or settle or compromise any claim in respect
          of, any Pledged Mortgages.

               (b) The Company shall not sell, assign, transfer or otherwise
          dispose of, or grant any option with respect to, or pledge or
          otherwise encumber (except pursuant to this Agreement or as permitted
          herein) any of the Collateral or any interest therein.

               (c) The Company shall not make any compromise, adjustment or
          settlement in respect of any of the Collateral or accept other than
          cash in payment or liquidation of the Collateral.

     7.17 No Indebtedness. Except for the Indebtedness described in Exhibit B
hereto, without the prior written consent of Lender, the Company will not incur,
create, assume or guarantee or in any manner become or be liable or permit to be
outstanding any Indebtedness (including obligations for the payment of rentals
other than provided for herein) nor guarantee any contract or other obligation,
and will not in any way become or be responsible for obligations of any Person,
whether by agreement to purchase the Indebtedness of any other Person or
agreement for the furnishing of funds to any other Person through the purchase
of goods, supplies or services (or by way of stock purchase, capital
contribution, advance or loan) for the purpose of paying or discharging the
Indebtedness of any other Person or otherwise, except that the foregoing
restrictions shall not apply to:

               (a) The Obligations.

               (b) Liabilities for taxes, assessments, governmental charges or
          levies which are not yet due and payable or which are being contested
          in good faith by appropriate proceedings diligently conducted if
          reserves adequate under generally accepted accounting principles have
          been established therefor.

               (c) Endorsements of negotiable instruments for collection in the
          ordinary course of business.

               (d) Indebtedness incurred in the ordinary course of business in
          connection with normal trade or business obligations which are payable
          within 90 days of the occurrence thereof, provided, however, that no
          Indebtedness shall be incurred by the Company to any Affiliate other
          than in the ordinary course of business and upon substantially the
          same or better terms as it could obtain in an arm's length transaction
          with a Person who is not an Affiliate.

               (e) Indebtedness of less than Fifty Thousand and No/100 Dollars
          ($50,000.00), in the aggregate, incurred in the ordinary course of
          business.

                                       37

<PAGE>

               (f) Indebtedness incurred in the ordinary course of business for
          the purpose of leasing office space or equipment to be used in the
          conduct of the business of the Company.

     7.18 Ownership of the Company. Permit any change in the legal or beneficial
ownership of any partnership interests, instruments convertible to same, or
other equity instruments, of either Company.

     7.19 Material Adverse Change. Cause or permit to occur any event which
will, in the Lender's reasonable discretion, have a material adverse effect on
the business or prospects of the Company, taken as a whole.

8. DEFAULTS; REMEDIES.

     8.1 Events of Default. The occurrence of any of the following conditions or
events shall be an event of default ("Event of Default"):

               (a) Failure to pay the principal of any Advance when due, whether
          at stated maturity, by acceleration, or otherwise; or failure to pay
          any installment of interest on any Advance or any other amount due
          under this Agreement within ten (10) days after the due date; or
          failure to pay, beyond any applicable grace period, the principal or
          interest on any other indebtedness due the Lender; or

               (b) Failure of the Company or any of its Subsidiaries to pay, or
          any default in the payment of any principal or interest on, any other
          Indebtedness or in the payment of any contingent obligation beyond any
          period of grace provided; or breach or default with respect to any
          other material term of any other Indebtedness of any loan agreement,
          mortgage, indenture or other agreement relating thereto, if the effect
          of such failure, default or breach is to cause the holder or holders
          thereof (or a trustee on behalf of such holder or holders) to cause,
          Indebtedness of the Company or its Subsidiaries in the aggregate
          amount of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00)
          or more to become due prior to its stated maturity (upon the giving or
          receiving of notice, lapse of time, both, or otherwise) or failure of
          the Company to comply with Section 6.11 hereof; or

               (c) Any of the Company's representations or warranties made or
          deemed made herein or in any other Loan Document, or in any statement
          or certificate at any time given by the Company in writing pursuant
          hereto or thereto shall be inaccurate or incomplete in any materially
          adverse respect on the date as of which made or deemed made; or

               (d) The Company shall default in the performance of or compliance
          with any term or covenant contained in this Agreement and such default
          shall not have been remedied or waived within thirty (30) days after
          receipt of notice from the Lender of such default other than those
          referred to above in Subsections 8.1(a), 8.1(b) or 8.1(c); or

                                       38

<PAGE>

               (e) (1) A court having jurisdiction shall enter a decree or order
          for relief in respect of the Company or any of Company's Subsidiaries
          in an involuntary case under any applicable bankruptcy, insolvency or
          other similar law now or hereafter in effect in respect of the Company
          or any of Company's Subsidiaries, which decree or order is not stayed;
          or a filing of an involuntary case under any applicable bankruptcy,
          insolvency or other similar law in respect of the Company or any of
          Company's Subsidiaries has occurred; or (2) any other similar relief
          shall be granted under any applicable federal or state law; or a
          decree or order of a court having jurisdiction for the appointment of
          a receiver, liquidator, sequestrator, trustee, custodian or other
          officer having similar powers over the Company or any of Company's
          Subsidiaries, or over all or a substantial part of their respective
          property, shall have been entered; or the involuntary appointment of
          an interim receiver, trustee or other custodian of the Company or any
          of Company's Subsidiaries, for all or a substantial part of their
          respective property; or the issuance of a warrant of attachment,
          execution or similar process against any substantial part of the
          property of the Company or any of Company's Subsidiaries, and the
          continuance of any such events in Subsections (1) and (2) above for
          sixty (60) days unless dismissed or discharged; or

               (f) The Company or any of Company's Subsidiaries shall have an
          order for relief entered with respect to it or commence a voluntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect, or shall consent to the entry of an order
          for relief in an involuntary case, or to the conversion to an
          involuntary case, under any such law, or shall consent to the
          appointment of or taking possession by a receiver, trustee or other
          custodian for all or a substantial part of its property; the making by
          the Company or any of Company's Subsidiaries of any assignment for the
          benefit of creditors; or the failure of the Company or any of
          Company's Subsidiaries, or the admission by any of them of its
          inability, to pay its debts as such debts become due; or

               (g) Any money judgment, writ or warrant of attachment, or similar
          process involving in any case an amount in excess of Fifty Thousand
          Dollars ($50,000.00) shall be entered or filed against the Company or
          any of its Subsidiaries or any of their respective assets and shall
          remain undischarged, unvacated, unbonded or unstayed for a period of
          thirty (30) days or in any event no later than five (5) days prior to
          the date of any proposed sale thereunder; or

               (h) Any order, judgment or decree shall be entered against the
          Company decreeing the dissolution or split up of the Company and such
          order shall remain undischarged or unstayed for a period in excess of
          twenty (20) days; or

               (i) Any Plan maintained by the Company or any of Company's
          Subsidiaries shall be terminated within the meaning of Title IV of
          ERISA or a trustee shall be appointed by an appropriate United States
          district court to administer any Plan, or the Pension Benefit Guaranty
          Corporation (or any successor thereto) shall institute proceedings to
          terminate any Plan or to appoint a

                                       39

<PAGE>

     trustee to administer any Plan if as of the date thereof the Company's or
     any Subsidiary's liability (after giving effect to the tax consequences
     thereof) to the Pension Benefit Guaranty Corporation (or any successor
     thereto) for unfunded guaranteed vested benefits under the Plan exceeds the
     then current value of assets accumulated in such Plan by more than Fifty
     Thousand Dollars ($50,000.00) (or in the case of a termination involving
     the Company or any of Company's Subsidiaries as a "substantial employer"
     (as defined in Section 4001(a)(2) of ERISA) the withdrawing employer's
     proportionate share of such excess shall exceed such amount); or

          (j) The Company or any of Company's Subsidiaries as employer under a
     Multiemployer Plan shall have made a complete or partial withdrawal from
     such Multiemployer Plan and the plan sponsor of such Multiemployer Plan
     shall have notified such withdrawing employer that such employer has
     incurred a withdrawal liability in an annual amount exceeding Fifty
     Thousand Dollars ($50,000.00); or

          (k) The Company shall purport to disavow its obligations hereunder or
     shall contest the validity or enforceability hereof, or the Lender's
     security interest on any portion of the Collateral shall become
     unenforceable or otherwise impaired; provided that, subject to the Lender's
     approval, no Event of Default shall occur as a result of such impairment if
     all Advances made against any such Collateral shall be paid in full within
     ten (10) days of the date of such impairment; or

          (1) The Company dissolves or terminates its existence, or discontinues
     its usual business; or

          (m) Any court shall find or rule, or the Company shall assert or
     claim, (i) that the Lender does not have a valid, perfected, enforceable
     Lien and security interest in the Collateral of the priority as represented
     in this Agreement or in any other Loan Document, or (ii) that this
     Agreement or any of the Loan Documents does not or will not constitute the
     legal, valid, binding and enforceable obligations of the party or parties
     (as applicable) thereto, or (iii) that any Person has a conflicting or
     adverse Lien, claim or right in, or with respect to, the Collateral and the
     Company is unable within 10 days to have such finding or ruling reversed or
     to have such adverse Lien, claim or right removed; or

          (n) The Company shall have concealed, removed, or permitted to be
     concealed or removed, any part of its property, with intent to hinder,
     delay or defraud its creditors or any of them, or made or suffered a
     transfer of any of its property which may be fraudulent under any
     bankruptcy, fraudulent conveyance or similar law; or shall have made any
     transfer of its property to or for the benefit of a creditor at a time when
     other creditors similarly situated have not been paid; or shall have
     suffered or permitted, while insolvent, any creditor to obtain a Lien upon
     any of its property through legal proceedings or distraint or other process
     which is not vacated within 60 days from the date thereof; or

                                       40

<PAGE>

          (o) There shall be a material adverse change in the financial
     condition, business or operations of the Company; or

          (p) A Change of Control occurs.

8.2 Remedies.

          (a) Upon the occurrence, and during the continuance, of any Event of
     Default described in Sections 8.1(e) or 8.1(f), the Commitment shall be
     terminated and all Obligations of the Company shall automatically become
     due and payable, without presentment for payment, demand, notice of
     non-payment, protest, notice of protest, notice of intent to accelerate,
     notice of acceleration, maturity, or any other notices or requirements of
     any kind of Lender to the Company or any other Person liable thereon or
     with respect thereto, all of which are hereby expressly waived by the
     Company.

          (b) Upon the occurrence, and during the continuance, of any Event of
     Default, other than those described in Sections 8.l(e) or 8.1(f), the
     Lender may, by written notice to the Company, terminate the Commitment
     and/or declare all Obligations of the Company to be immediately due and
     payable, whereupon the same shall forthwith become due and payable,
     together with all accrued and unpaid interest thereon, and the obligation
     of the Lender to make any Advances shall thereupon terminate.

          (c) Upon the occurrence, and during the continuance, of any Event of
     Default, the Lender may also do any of the following:

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

               (2) Notify all obligors in respect of the Collateral that the
          Collateral has been assigned to the Lender and that all payments
          thereon are to be made directly to the Lender or such other party as
          may be designated by the Lender; settle, compromise, or release, in
          whole or in part, any amounts owing on the Collateral, any such
          obligor or any Investor or any portion of the Collateral, on terms
          acceptable to the Lender; enforce payment and prosecute any action or
          proceeding with respect to any and all Collateral; and where any such
          Collateral is in default, foreclose on and enforce security interests
          in, such Collateral by any available judicial procedure or without
          judicial process and sell property acquired as a result of any such
          foreclosure.

               (3) Act, or contract with a third party to act, as servicer or
          subservicer of each item of Collateral requiring servicing and perform
          all

                                       41

<PAGE>

          obligations required in connection with Purchase Commitments, such
          third party's fees to be paid by the Company.

               (4) Require the Company to assemble the Collateral and/or books
          and records relating thereto and make such available to the Lender at
          a place to be designated by the Lender.

               (5) Enter onto property where any Collateral or books and records
          relating thereto are located and take possession thereof with or
          without judicial process.

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

               (7) Exercise all rights and remedies of a secured creditor under
          the Uniform Commercial Code of Texas or other applicable law,
          including, but not limited to, selling or otherwise disposing of the
          Collateral, or any part thereof, at one or more public or private
          sales, whether or not such Collateral is present at the place of sale,
          for cash or credit or future delivery, on such terms and in such
          manner as the Lender may determine, including, without limitation,
          sale pursuant to any applicable Purchase Commitment. If notice is
          required under such applicable law, the Lender will give the Company
          not less than ten (10) days' notice of any such public sale or of the
          date after which private sale may be held. The Company agrees that ten
          (10) days' notice shall be reasonable notice. The Lender may, without
          notice or publication, adjourn any public or private sale or cause the
          same to be adjourned from time to time by announcement at the time and
          place fixed for the sale, and such sale may be made at any time or
          place to which the same may be so adjourned. In case of any sale of
          all or any part of the Collateral on credit or for future delivery,
          the Collateral so sold may be retained by the Lender until the selling
          price is paid by the purchaser thereof, but the Lender shall not incur
          any liability in case of the failure of such purchaser to take up and
          pay for the Collateral so sold and, in case of any such failure, such
          Collateral may again be sold upon like notice. The Lender may,
          however, instead of exercising the power of sale herein conferred upon
          it, proceed by a suit or suits at law or in equity to collect all
          amounts due upon the Collateral or to foreclose the pledge and sell
          the Collateral or any portion thereof under a judgment or decree of a
          court or courts of competent jurisdiction, or both.

               (8) Proceed against the Company on the Note.

          (d) The Lender shall incur no liability as a result of the sale or
     other disposition of the Collateral, or any part thereof, at any public or
     private sale or disposition. The Company hereby waives (to the extent
     permitted by law) any claims it may have against the Lender arising by
     reason of the fact that the price at

                                       42

<PAGE>

          which the Collateral may have been sold at such private sale was less
          than the price which might have been obtained at a public sale or was
          less than the aggregate amount of the outstanding Advances and the
          unpaid interest accrued thereon, even if the Lender accepts the first
          offer received and does not offer the Collateral to more than one
          offeree and none of the actions described herein shall render Lender's
          disposition of the Collateral in such a manner as commercially
          unreasonable.

               (e) The Company specifically waives (to the extent permitted by
          law) any equity or right of redemption, all rights of redemption, stay
          or appraisal which the Company has or may have under any rule of law
          or statute now existing or hereafter adopted, and any right to require
          the Lender to (1) proceed against any Person, (2) proceed against or
          exhaust any of the Collateral or pursue its rights and remedies as
          against the Collateral in any particular order, or (3) pursue any
          other remedy in its power. The Lender shall not be required to take
          any steps necessary to preserve any rights of the Company against
          holders of mortgages prior in lien to the Lien of any Mortgage
          included in the Collateral or to preserve rights against prior
          parties.

               (f) The Lender may, but shall not be obligated to, advance any
          sums or do any act or thing necessary to uphold and enforce the Lien
          and priority of, or the security intended to be afforded by, any
          Mortgage included in the Collateral, including, without limitation,
          payment of delinquent taxes or assessments and insurance premiums. All
          advances, charges, costs and expenses, including reasonable attorneys'
          fees and disbursements, incurred or paid by the Lender in exercising
          any right, power or remedy conferred by this Agreement, or in the
          enforcement hereof, together with interest thereon, at the Default
          Rate, from the time of payment until repaid, shall become a part of
          the principal balance outstanding hereunder and under the Note.

               (g) No failure on the part of the Lender to exercise, and no
          delay in exercising, any right, power or remedy provided hereunder, at
          law or in equity shall operate as a waiver thereof; nor shall any
          single or partial exercise by the Lender of any right, power or remedy
          provided hereunder, at law or in equity preclude any other or further
          exercise thereof or the exercise of any other right, power or remedy.
          Without intending to limit the foregoing, all defenses based on the
          statute of limitations are hereby waived by the Company to the extent
          permitted by law. The remedies herein provided are cumulative and are
          not exclusive of any remedies provided at law or in equity.

     8.3 Application of Proceeds. The proceeds of any sale, disposition or other
enforcement of the Lender's security interest in all or any part of the
Collateral shall be applied by the Lender:

          First, to the payment of the costs and expenses of such sale or
     enforcement, including reasonable compensation to the Lender's agents and
     counsel, and all expenses,

                                       43

<PAGE>

     liabilities and advances made or incurred by or on behalf of the Lender in
     connection therewith;

          Second, to the payment of any other amounts due (other than principal
     and interest) under the Note or this Agreement;

          Third, to the payment of interest accrued and unpaid on the Note;

          Fourth, to the payment of the outstanding principal balance of the
     Note; and

          Finally, to the payment to the Company, or to its successors or
     assigns, or as a court of competent jurisdiction may direct, of any surplus
     then remaining from such proceeds.

     If the proceeds of any such sale, disposition or other enforcement are
insufficient to cover the costs and expenses of such sale, as aforesaid, and the
payment in full of all Obligations of the Company, the Company shall remain
liable for any deficiency.

     8.4 Lender Appointed Attorney-in-Fact. The Lender is hereby appointed the
attorney-in-fact of the Company, with full power of substitution, for the
purpose of carrying out the provisions hereof and taking any action and
executing any instruments which the Lender may deem necessary or advisable to
accomplish the purposes hereof, which appointment as attorney-in-fact is
irrevocable and coupled with an interest. Without limiting the generality of the
foregoing, the Lender shall have the right and power to give notices of its
security interest in the Collateral to any Person, either in the name of the
Company or in its own name, to endorse all Pledged Mortgages payable to the
order of the Company, to change or cause to be changed the book-entry
registration or name of subscriber or Investor on any Pledged Security, or to
receive, endorse and collect all checks made payable to the order of the Company
representing any payment on account of the principal of or interest on, or the
proceeds of sale of, any of the Pledged Mortgages and to give full discharge for
the same.

     8.5 Right of Set-Off. If there shall be an Event of Default under Section
8.1(a), or any other sums which may become payable hereunder when due, or in
the performance of any of its other Obligations under this Agreement, the
Lender, shall have the right, at any time and from time to time, without notice,
to set-off and to appropriate or apply any and all property or indebtedness of
any kind at any time held or owing by the Lender to or for the credit of the
account of the Company (excluding any monies held by the Company in trust for
third parties) against and on account of the Obligations, irrespective of
whether or not the Lender shall have made any demand hereunder and whether or
not said Obligations shall have matured; provided, however, that the Lender
shall not be allowed to set-off against funds in accounts with respect to which
(i) the Company is a trustee or an escrow agent in respect of bona fide third
parties other than Affiliates, and (ii) such trust or escrow arrangement was so
denominated at the time of the creation of such account.

                                       44

<PAGE>

9. NOTICES.

     All notices, demands, consents, requests and other communications required
or permitted to be given or made hereunder (collectively, "Notices") shall,
except as otherwise expressly provided hereunder, be in writing and shall be
delivered in person or mailed, first class, return receipt requested, postage
prepaid, or delivered by overnight courier, addressed to the respective parties
hereto at their respective addresses hereinafter set forth or, as to any such
party, at such other address as may be designated by it in a Notice to the
other. All Notices shall be conclusively deemed to have been properly given or
made when duly delivered, in person or by overnight courier, or if mailed on the
third Business Day after being deposited in the mails, addressed as follows:

          If to the Company:    NLC Financial Services, LLC
                                Banc NLC Mortgage Lending, LLC
                                700 West Hillsborough Boulevard
                                Deerfield Beach, FL 33441
                                Attn: Jeffrey Henschel
                                Fax No.: (954) 420-5470

          If to the Lender:     Bank United
                                Attn: Andrew Tauber, Vice President - Director
                                1401 Walnut Street
                                Suite 710
                                Philadelphia, PA 19102
                                Fax No.: (215) 972-5499

          with a copy to:       Bank United
                                Attn: Frank Hattemer
                                Managing Director, Mortgage Banker Financing
                                3200 Southwest Freeway, Suite 2702
                                Houston, Texas 77027
                                Fax No.: (713) 543-6022

          and:                  Bank United
                                Attn: Janet B. Groue
                                Associate General Counsel
                                3200 Southwest Freeway, Suite 2660
                                Houston, Texas 77027
                                Fax No.: (713) 543-6469

10. REIMBURSEMENT OF EXPENSES; INDEMNITY.

     The Company shall: (a) pay all reasonable out-of-pocket costs and expenses
of the Lender, including, without limitation, reasonable attorneys' and
auditor's fees, in connection with the preparation, negotiation, documentation,
enforcement and administration of this

                                       45

<PAGE>

Agreement, the Note, and other Loan Documents and the making and repayment of
the Advances and the payment of interest thereon; (b) pay, and hold the Lender
and any holder of the Note harmless from and against, any and all present and
future stamp, documentary and other similar taxes with respect to the foregoing
matters and save the Lender and the holder or holders of the Note harmless from
and against any and all liabilities with respect to or resulting from any delay
or omission to pay such taxes; (c) INDEMNIFY, PAY AND HOLD HARMLESS THE LENDER
AND ANY OF ITS OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS AND ANY SUBSEQUENT
HOLDER OF THE NOTE FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS,
LOSSES, DAMAGES, PENALTIES, JUDGMENTS, SUITS, COSTS, EXPENSES AND DISBURSEMENTS
OF ANY KIND WHATSOEVER (THE "INDEMNIFIED LIABILITIES") (INCLUDING, WITHOUT
LIMITATION, INDEMNIFIED LIABILITIES RESULTING, IN WHOLE OR IN PART, FROM
LENDER'S OWN NEGLIGENCE OR STRICT LIABILITY) WHICH MAY BE IMPOSED UPON, INCURRED
BY OR ASSERTED AGAINST THE LENDER OR SUCH HOLDER IN ANY WAY RELATING TO OR
ARISING OUT OF THIS AGREEMENT, THE NOTE, OR ANY OTHER LOAN DOCUMENT OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY TO THE EXTENT THAT ANY SUCH
INDEMNIFIED LIABILITIES RESULT (DIRECTLY OR INDIRECTLY) FROM ANY CLAIMS MADE, OR
ANY ACTIONS, SUITS OR PROCEEDINGS COMMENCED OR THREATENED, BY OR ON BEHALF OF
ANY CREDITOR (EXCLUDING THE LENDER AND THE HOLDER OR HOLDERS OF THE NOTE),
SECURITY HOLDER, SHAREHOLDER, CUSTOMER (INCLUDING, WITHOUT LIMITATION, ANY
PERSON HAVING ANY DEALINGS OF ANY KIND WITH THE COMPANY), TRUSTEE, DIRECTOR,
OFFICER, EMPLOYEE AND/OR AGENT OF THE COMPANY ACTING IN SUCH CAPACITY, THE
COMPANY OR ANY GOVERNMENTAL REGULATORY BODY OR AUTHORITY. THE FOREGOING
INDEMNITY SHALL NOT APPLY TO THE EXTENT THE INDEMNIFIED LIABILITIES RESULT FROM
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE LENDER OR LENDER'S OWN
VIOLATIONS OF REGULATIONS APPLICABLE TO IT. THE AGREEMENT OF THE COMPANY
CONTAINED IN THIS SUBSECTION (C) SHALL SURVIVE THE EXPIRATION OR TERMINATION OF
THIS AGREEMENT AND THE PAYMENT IN FULL OF THE NOTE. ATTORNEYS' FEES AND
DISBURSEMENTS INCURRED IN ENFORCING, OR ON APPEAL FROM, A JUDGMENT PURSUANT
HERETO SHALL BE RECOVERABLE SEPARATELY FROM AND IN ADDITION TO ANY OTHER AMOUNT
INCLUDED IN SUCH JUDGMENT, AND THIS CLAUSE IS INTENDED TO BE SEVERABLE FROM THE
OTHER PROVISIONS OF THIS AGREEMENT AND TO SURVIVE AND NOT BE MERGED INTO SUCH
JUDGMENT.

11. FINANCIAL INFORMATION.

     All financial statements and reports furnished to the Lender hereunder
shall be prepared in accordance with GAAP, applied on a basis consistent with
that applied in preparing the financial statements as at, and for the period
ended, the Statement Date (except to the extent otherwise required to conform to
good accounting practice).

                                       46

<PAGE>

12. MISCELLANEOUS.

     12.1 Terms Binding Upon Successors; Survival of Representations. The terms
and provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns. All
representations, warranties, covenants and agreements herein contained on the
part of the Company shall survive the making of any Advance and the execution of
the Note, and shall be effective so long as the Commitment is outstanding
hereunder or there remain any Obligations of the Company hereunder or under the
Note to be paid or performed.

     12.2 Assignment. This Agreement may not be assigned by the Company. The
Lender may assign, at any time, in whole or in part, its rights and delegate its
obligations under this Agreement and the other Loan Documents, along with the
Lender's security interest in any or all of the Collateral, and any assignee
thereof may enforce this Agreement and the other Loan Documents, and such
security interest.

     12.3 Amendments. Except as otherwise provided in this Agreement, this
Agreement may not be amended, modified or supplemented unless such amendment,
modification or supplement is set forth in a writing signed by the parties
hereto.

     12.4 Governing Law. This Agreement and the other Loan Documents shall be
governed by the laws of the State of Texas, without reference to its principles
of conflicts of laws.

     12.5 Participations. The Lender may at any time sell, assign or grant
participations in, or otherwise transfer to any other Person (a "Participant"),
all or part of the Obligations of the Company under this Agreement. The Company
authorizes the Lender to disclose to any prospective Participant and any
Participant any and all information in the Lender's possession concerning the
Company, this Agreement and the Collateral.

     12.6 Relationship of the Parties. This Agreement provides for the making of
Advances by the Lender, in its capacity as a lender, to the Company, in its
capacity as a borrower, and for the payment of interest, repayment of principal
by the Company to the Lender, and for the payment of certain fees by the Company
to the Lender. The relationship between the Lender and the Company is limited to
that of creditor/secured party, on the one hand, and debtor, on the other hand.
The provisions herein for compliance with financial covenants and delivery of
financial statements are intended solely for the benefit of the Lender to
protect its interests as lender in assuring payments of interest and repayment
of principal and payment of certain fees, and nothing contained in this
Agreement shall be construed as permitting or obligating the Lender to act as a
financial or business advisor or consultant to the Company, as permitting or
obligating the Lender to control the Company or to conduct the Company's
operations, as creating any fiduciary obligation on the part of the Lender to
the Company, or as creating any joint venture, agency, or other relationship
between the parties hereto other than as explicitly and specifically stated in
this Agreement. The Company acknowledges that it has had the opportunity to
obtain the advice of experienced counsel of its own choosing in connection with

                                       47

<PAGE>

the negotiation and execution of this Agreement and to obtain the advice of such
counsel with respect to all matters contained herein, including, without
limitation, the provision for waiver of trial by jury. The Company further
acknowledges that it is experienced with respect to financial and credit matters
and has made its own independent decisions to apply to the Lender for credit and
to execute and deliver this Agreement.

     12.7 Severability. If any provision of this Agreement shall be declared to
be illegal or unenforceable in any respect, such illegal or unenforceable
provision shall be and become absolutely null and void and of no force and
effect as though such provision were not in fact set forth herein, but all other
covenants, terms, conditions and provisions hereof shall nevertheless continue
to be valid and enforceable.

     12.8 Usury. It is the intent of Lender and the Company in the execution and
performance of this Agreement and the Note or any Loan Document to remain in
strict compliance with Applicable Law from time to time in effect. In
furtherance thereof, Lender and the Company stipulate and agree that none of the
terms and provisions contained in the Note, this Agreement or any Loan Document
shall ever be construed to create a contract to pay for the use, forbearance or
detention of money with interest at a rate or in an amount in excess of the
Maximum Rate or amount of interest permitted to be charged under Applicable Law.
For purposes of this Agreement, the Note and any other Loan Document, "interest"
shall include the aggregate of all charges which constitute interest under
Applicable Law that are contracted for, taken, charged, reserved, or received
under this Agreement, the Note or any other Loan Document. The Company shall
never be required to pay unearned interest or interest at a rate or in an amount
in excess of the Maximum Rate or amount of interest that may be lawfully charged
under Applicable Law, and the provisions of this paragraph shall control over
all other provisions of this Agreement and the Note or any Loan Document, which
may be in actual or apparent conflict herewith. If the Note is prepaid, or if
the maturity of the Note is accelerated for any reason, or if under any other
contingency the effective rate or amount of interest which would otherwise be
payable under the Note would exceed the Maximum Rate or amount of interest
Lender or any other holder of the Note is allowed by Applicable Law to charge,
contract for, take, reserve or receive, or in the event Lender or any holder of
the Note shall charge, contract for, take, reserve or receive monies that are
deemed to constitute interest which would, in the absence of this provision,
increase the effective rate or amount of interest payable under the Note to a
rate or amount in excess of that permitted to be charged, contracted for, taken,
reserved or received under Applicable Law then in effect, then the principal
amount of the Note or the amount of interest which would otherwise be payable
under the Note or both shall be reduced to the amount allowed under Applicable
Law as now or hereinafter construed by the courts having jurisdiction, and all
such moneys so charged, contracted for, taken, reserved or received that are
deemed to constitute interest in excess of the Maximum Rate or amount of
interest permitted by Applicable Law shall immediately be returned to or
credited to the account of the Company upon such determination. Lender and the
Company further stipulate and agree that, without limitation of the foregoing,
all calculations of the rate or amount of interest contracted for, charged,
taken, reserved or received under the Note which are made for the purpose of
determining whether such rate or amount exceeds the Maximum Rate, shall be made
to the extent not prohibited by Applicable Law, by amortizing, prorating,
allocating and spreading during the period of the full

                                       48

<PAGE>

stated term of the Note, all interest at any time contracted for, charged,
taken, reserved or received from the Company or otherwise by Lender or any other
holder of the Note.

     12.9 Consent to Jurisdiction. Subject to the provisions of Section 12.10 of
this Agreement, the Company hereby agrees that any action or proceeding under
this Agreement, the Note or any document delivered pursuant hereto may be
commenced against it in any court of competent jurisdiction within the State of
Texas, by service of process upon the Company by first class registered or
certified mail, return receipt requested, addressed to the Company at its
address last known to the Lender. The Company agrees that any such suit, action
or proceeding arising out of or relating to this Agreement or any other such
document may be instituted in Harris County, State District Court or in the
United States District Court for the District of Texas at the option of the
Lender; and the Company hereby waives any objection to the venue, or any claim
as to inconvenient forum, of any such suit, action or proceeding. Nothing herein
shall affect the right of the Lender to accomplish service of process in any
other manner permitted by law or to commence legal proceedings or otherwise
proceed against the Company in any other jurisdiction or court.

     12.10 Arbitration. To the maximum extent not prohibited by law, any
controversy, dispute or claim arising out of, in connection with, or relating to
the Commitment or the Loan Documents or any transaction provided for therein,
including but not limited to any claim based on or arising from an alleged tort
or an alleged breach of any agreement contained in any of the Loan Documents,
shall, at the request of any party to the Loan Documents (either before or after
the commencement of judicial proceedings), be settled by arbitration pursuant to
Title 9 of the United States Code, which the parties hereto acknowledge and
agree applies to the transaction involved herein, and in accordance with the
Commercial Arbitration Rules of the American Arbitration Association (the
"AAA"). If Title 9 of the United States Code is inapplicable to any such claim,
dispute or controversy for any reason, such arbitration shall be conducted
pursuant to the Texas General Arbitration Act and in accordance with the
Commercial Arbitration Rules of the AAA. In any such arbitration proceeding: (i)
all statutes of limitations which would otherwise be applicable shall apply; and
(ii) the proceeding shall be conducted in Houston, Texas, by a single
arbitrator, if the amount in controversy is One Million Dollars ($1,000,000.00)
or less, or by a panel of three arbitrators if the amount in controversy is over
One Million Dollars ($1,000,000.00). All arbitrators shall be selected by the
process of appointment from a panel pursuant to Section 13 of the AAA Commercial
Arbitration Rules and each arbitrator shall be either an active attorney, a
mortgage banker or retired judge with an AAA acknowledged expertise in the
subject matter of the controversy, dispute or claim. Any award rendered in any
such arbitration proceeding shall be final and binding, and judgment upon any
such award may be entered in any court having jurisdiction.

     If any party to any Loan Document files a proceeding in any court to
resolve any such controversy, dispute or claim, such action shall not constitute
a waiver of the right of such party or a bar to the right of any other party to
seek arbitration under the provisions of this Section of that or any other
claim, dispute or controversy, and the court shall, upon motion of any party to
the proceeding, direct that such controversy, dispute or claim be arbitrated in
accordance with this Section.

                                       49

<PAGE>

     Notwithstanding any of the foregoing, the parties hereto agree that no
arbitrator or panel of arbitrators shall possess or have the power to (i) assess
punitive damages, (ii) dissolve, rescind or reform (except that the arbitrator
may construe ambiguous terms) any Loan Document, (iii) enter judgment on the
debt, (iv) exercise equitable powers or issue or enter any equitable remedies
with respect to matters submitted to arbitration, or (v) allow discovery of
attorney/client privileged information. The Commercial Arbitration Rules of the
AAA are hereby modified to this extent for the purpose of arbitration of any
dispute, controversy or claim arising out of, in connection with, or relating to
the Loan or any Loan Document. The parties hereby further agree to waive, each
to the other, any claims for punitive damages and agree neither an arbitrator
nor any court shall have the power to assess such damages.

     No provision of, or the exercise of any rights under, this Section shall
limit or impair the right of any party to any Loan Document before, during or
after any arbitration proceeding to: (i) exercise self-help remedies such as
setoff or repossession; (ii) foreclose (judicially or otherwise) any Lien on or
security interest in any real or personal Collateral; or (iii) obtain emergency
relief from a court of competent jurisdiction to prevent the dissipation,
damage, destruction, transfer, hypothecation, pledging or concealment of assets
or of Collateral securing any Indebtedness, obligation or guaranty referenced in
any Loan Document. Such emergency relief may be in the nature of, but is not
limited to: pre-judgment attachments, garnishments, sequestrations, appointments
of receivers, or other emergency injunctive relief to preserve the status quo.

     12.11 ADDITIONAL INDEMNITY. IN ADDITION TO THE INDEMNITY PROVIDED IN
SECTION 10, THE COMPANY SHALL INDEMNIFY AND HOLD THE LENDER, ITS SUCCESSORS,
ASSIGNS, AGENTS, AND EMPLOYEES, HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS,
ACTIONS, SUITS, PROCEEDINGS, COSTS, EXPENSES, DAMAGES, FINES, PENALTIES, AND
LIABILITIES, INCLUDING, WITHOUT LIMITATION, ATTORNEYS' FEES AND COSTS, ARISING
OUT OF, CONNECTED WITH, OR RESULTING FROM (A) THE OPERATION OF THE COMPANY'S
BUSINESSES, (B) THE LENDER'S PRESERVATION OR ATTEMPTED PRESERVATION OF
COLLATERAL, AND (C) ANY FAILURE OF THE SECURITY INTERESTS AND LIENS IN THE
COLLATERAL GRANTED TO THE LENDER PURSUANT TO THIS AGREEMENT TO BE OR TO REMAIN
PERFECTED OR TO HAVE THE PRIORITY AS CONTEMPLATED THEREIN REGARDLESS OF WHETHER
THE CLAIM IS CAUSED BY OR ARISES OUT OF, IN WHOLE OR IN PART, THE NEGLIGENCE OF
THE LENDER OR MAY BE BASED ON THE STRICT LIABILITY OF THE LENDER. THIS INDEMNITY
SHALL NOT APPLY TO THE EXTENT THE SUBJECT OF THE INDEMNIFICATION IS CAUSED BY OR
ARISES OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE LENDER OR
LENDER'S VIOLATION OF REGULATIONS APPLICABLE TO IT. AT THE LENDER'S REQUEST, THE
COMPANY SHALL, AT ITS OWN COST AND EXPENSE, DEFEND OR CAUSE TO BE DEFENDED ANY
AND ALL SUCH ACTIONS OR SUITS THAT MAY BE BROUGHT AGAINST THE LENDER AND, IN ANY
EVENT, SHALL SATISFY, PAY, AND DISCHARGE ANY AND ALL JUDGMENTS, AWARDS,
PENALTIES, COSTS, AND FINES THAT MAY BE RECOVERED

                                       50

<PAGE>

AGAINST THE LENDER IN ANY SUCH ACTION, PLUS ALL ATTORNEYS' FEES AND COSTS
RELATED THERETO TO THE EXTENT PERMITTED BY APPLICABLE LAW; PROVIDED, HOWEVER,
THAT THE LENDER SHALL GIVE THE COMPANY (TO THE EXTENT THE LENDER SEEKS
INDEMNIFICATION THEREFOR FROM THE COMPANY UNDER THIS SECTION 12.11) WRITTEN
NOTICE OF ANY SUCH CLAIM, DEMAND, OR SUIT AFTER THE LENDER HAS RECEIVED WRITTEN
NOTICE THEREOF, AND THE LENDER SHALL NOT SETTLE ANY SUCH CLAIM, DEMAND, OR SUIT,
IF THE LENDER SEEKS INDEMNIFICATION THEREFOR FROM THE COMPANY, WITHOUT FIRST
GIVING NOTICE TO THE COMPANY OF THE LENDER'S DESIRE TO SETTLE AND OBTAINING THE
CONSENT OF THE COMPANY TO THE SAME, WHICH CONSENT THE COMPANY HEREBY AGREES NOT
TO UNREASONABLY WITHHOLD. ALL OBLIGATIONS OF THE COMPANY UNDER THIS SECTION
12.11 SHALL SURVIVE THE PAYMENT OF THE NOTE AND THE OBLIGATIONS.

     12.12 No Waivers Except in Writing. No failure or delay on the part of the
Lender in exercising any power or right hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. No notice to or demand on
the Company or any other Person in any case shall entitle the Company or such
other Person to any other or further notice or demand in similar or other
circumstances.

     12.13 Waiver of Jury Trial. Company hereby expressly waives any right to a
trial by jury in any action or legal proceeding arising out of or relating to
this Agreement or any other Loan Document for the transactions contemplated
hereby or thereby.

     12.14 Multiple Counterparts. This Agreement may be executed in any number
of counterparts, all of which, taken together, shall constitute one and the same
instrument.

     12.15 No Third Party Beneficiaries. This Agreement is for the sole and
exclusive benefit of the Company and Lender. This Agreement does not create, and
is not intended to create, any rights in favor of or enforceable by any other
Person. This Agreement may be amended or modified by the agreement of the
Company and Lender, without any requirement or necessity for notice to, or the
consent of or approval of any other Person.

     12 16 RELEASE OF LENDER LIABILITY. TO THE MAXIMUM EXTENT NOT PROHIBITED BY
LAW FROM TIME TO TIME IN EFFECT, THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY (AND AFTER IT HAS CONSULTED WITH ITS OWN ATTORNEY) IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT NO CLAIM MAY BE MADE BY THE COMPANY AGAINST THE
LENDER OR ANY OF ITS DIRECTORS, OFFICERS, EMPLOYEES, ATTORNEYS, ACCOUNTANTS,
AGENTS OR INSURERS, OR ANY OF ITS OR THEIR SUCCESSORS AND ASSIGNS, FOR ANY
SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES IN RESPECT OF ANY BREACH OR

                                       51

<PAGE>

WRONGFUL CONDUCT (WHETHER THE CLAIM IS BASED ON CONTRACT OR TORT OR DUTY IMPOSED
BY LAW) ARISING OUT OF, OR RELATED TO, THE TRANSACTIONS CONTEMPLATED BY ANY OF
THIS AGREEMENT, THE NOTE, OR ANY OTHER LOAN DOCUMENTS, OR ANY ACT, OMISSION, OR
EVENT OCCURRING IN CONNECTION HEREWITH OR THEREWITH. IN FURTHERANCE OF THE
FOREGOING, THE COMPANY HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE UPON ANY
CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR
SUSPECTED TO EXIST IN ITS FAVOR.

     12.17 Entire Agreement; Amendment. This Agreement, the Note, and the other
Loan Documents referred to herein embody the final, entire Agreement among the
parties hereto and supersede any and all prior commitments, agreements,
representations, and understandings, whether written or oral, relating to the
subject matter hereof. The provisions of this Agreement and the other Loan
Documents to which the Company is a party may be amended or waived only by an
instrument in writing signed by the parties hereto.

     12.18 NO ORAL AGREEMENTS. THE WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

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

                                             BANC NLC MORTGAGE LENDING, LLC

                                             By: /s/ Jeffrey M. Henschel
                                                 -------------------------------
                                             Name: Jeffrey M. Henschel
                                             Title: Executive Vice President

                                             NLC FINANCIAL SERVICES, LLC

                                             By: /s/ Neal Henschel
                                                 -------------------------------
                                             Name: Neal Henschel
                                             Title: President

                                       52

<PAGE>

                                             BANK UNITED

                                             By: /s/ Andrew Tauber
                                                 -------------------------------
                                             Name: ANDREW TAUBER
                                             Title: VP and Director

                                       53

<PAGE>

EXHIBITS:

A - Advance Request
B - Existing Company Indebtedness
C - Procedures and Documentation for Warehousing Single-family Mortgage Loans
D - Shipping Instructions
E - Trust Receipt
F - Officer's Certificate
G - Subsidiaries
H - Litigation
I - Trade Names
J - Secretary's Certificate
K - Bailee Letter
L - Investors
M - Legal Opinion
N - Note

                                       54

<PAGE>

                                    EXHIBIT A

[LOGO] Bank United

<TABLE>
<S>                                                                      <C>
                                   ADVANCE REQUEST FORM- SINGLE-FAMILY MORTGAGE LOANS

                                                      Loan Information

Mortgage Company:                                                        Loan Number:
                  ----------------------------------------------------                   -------------------------------
Mortgagor:                                                               Prepared By:
                  ----------------------------------------------------                   -------------------------------
Street Address:                                                          Warehouse Date:     /    /
                  ----------------------------------------------------                   ---- ---- ---------------------
City, State, Zip:                                                        SSN:            -        -
                  ----------------------------------------------------        --  --  --   --  --    --  --  --  --  --
Note Amount:      $                                                      Note Date:     /    /
                   -----------------------------------                              ---- ---- --------------------------
Advance Request:  $                                                      [ ] Wet   [ ] Regular (Dry)
                   -----------------------------------
Loan-Specific Take-out Commitment? [ ] Yes [ ] No                        Mortgage Loan Interest Rate:                   %
                                                                                                      ----------------
(If "Yes," Investor:                        . Expiration date:   /  /    . Take-out Price:                              %).
                     -----------------------                   -- -- ----                  -----------------------------
LTV of Mortgage Loan is:          % (If over 100%, FICO score:                  ).
                         ---------                             -----------------
Documentation is: [ ] Stated Doc   [ ] Full Doc
Loan Type (check all that apply): [ ] 1st lien   [ ] 2nd lien   [ ] FNMA/FHLMC   [ ] FHA/VA   [ ] Jumbo   [ ] Subprime

                                                Closing Agent Information

Closing Agent is: [ ] Title Company  [ ] Attorney
Name:                                                                    Phone: (          )            -
                  ----------------------------------------------------           ----------  ----------   --------------
Address:
                  ------------------------------------------------------------------------------------------------------

                                                    Method of Advance

[ ] Wire Transfer (instructions included)     [ ] Bank United Check                   [ ] Bank United Cashier's Check
    Wire Amount: $            .                   Check Amount: $            .            Check Amount: $           .
                  ------------ ---                               ------------ ---                        ----------- ---

[ ] Please debit the $                      .    difference from our account number            -        -
                      ---------------------- ---                                    --  --  --   --  --    --  --  --

                                                    Wire Instructions

Receiving Bank:                                          ABA Number:            -            -
                  ----------------------------------                 --  --  --   --  --  --   --  --  --
City:                                                    State:
                  ----------------------------------                     -----------------------------------------------
Account Name:                                            Account Number:
                  ----------------------------------                     -----------------------------------------------

                                                 Required Documentation

Wet Settlement Advance                                                   Regular (Dry) Advance
[ ] Completed Advance Request form                                       [ ] Completed Advance Request form
[ ] Copy of Purchase Commitment                                          [ ] Original Mortgage Note endorsed in
                                                                         blank
[ ] Insured Closing Letter from Title Company or                         [ ] Original Assignment of Mortgage in
                                                                         blank
    Closing Instructions from Company to Closing Agent                   [ ] Copy of Mortgage certified by the
                                                                         Closing Agent as a
[ ] If closing by check, a copy of the check                             true copy of the original sent for recording
We will deliver the following within 5 days:                             [ ] Copy of Purchase Commitment
[ ] Original Mortgage Note endorsed in blank                             [ ] Insured Closing Letter from Title
                                                                         Company or
[ ] Original Assignment of Mortgage in blank                                 Closing Instructions from Company to
                                                                         Closing Agent
[ ] Copy of Mortgage certified by the Closing Agent as a true copy of the original sent for recording.
</TABLE>

                                       55

<PAGE>

Subwarehouse Mortgage Loan Advance

We will deliver the following within 2 days:

[ ] Copy of Mortgage Note

[ ] all necessary endorsements

                                       56

<PAGE>

                                  BAILEE PLEDGE

     The Company creates and grants in favor and for the benefit of the Lender a
security interest in and to the Single-family Mortgage Loans listed above and
all instruments and documents described as Required Documentation above.

     The Company has given to
                              --------------------------------------------------
("Closing Agent") who has possession of such instruments and documents, notice
of the foregoing described security interest in favor of the Lender.

     The Company further agrees to deliver the documents described above to
Lender, immediately upon the request of the Lender (whether written or oral),
but in any event, on or before three (3) calendar days from the date hereof.

     The Company further agrees that this Agreement shall be binding upon and
inure to the benefit of the legal representatives, successors or assigns of the
Lender.

     The Company further agrees that all rights, interests, duties and
liabilities arising hereunder shall be determined according to the laws of the
State of Texas.

     Executed as of the                 day of                       ,         .
                        ---------------        ----------------------  --------

                                             BANC NLC MORTGAGE LENDING, LLC

                                             By:
                                                 -------------------------------
                                             Name:
                                                   -----------------------------
                                             Title:
                                                    ----------------------------

                                       57

<PAGE>

                                    EXHIBIT B

                    LIST OF EXISTING INDEBTEDNESS OF COMPANY

-----------------------------------------------------------------------
                                                       AVERAGE BALANCE
                TYPE OF     COMMITMENT                OUTSTANDING AS OF
LENDER         FINANCING      AMOUNT     COLLATERAL    JANUARY 28, 2000
-----------------------------------------------------------------------
IMC Mtg.       Warehouse   $ 5,000,000      Loans        1,560,399.57
-----------------------------------------------------------------------
Paine Webber   Warehouse   $15,000,000      Loans        5,334,698.77
-----------------------------------------------------------------------
Household      Warehouse   $25,000,000      Loans       24,773,867.55
Finance
-----------------------------------------------------------------------

-----------------------------------------------------------------------

                                       58

<PAGE>

                                    EXHIBIT C

                  PROCEDURES AND DOCUMENTATION FOR WAREHOUSING
                          SINGLE-FAMILY MORTGAGE LOANS

     The following procedures and documentation requirements must be observed in
all respects by the Company. All documents must be satisfactory to Lender in its
sole discretion. Terms used below, which are not otherwise defined, shall have
the meanings given them in the Warehousing Credit and Security Agreement, as
amended, modified or renewed from time to time.

I.   Prior to making an Advance that is not a Wet Settlement Advance, the Lender
     must receive the following:

     1)   Copy of settlement or funding check issued to, or signed wire transfer
          request directing funds to escrow/title company or closing agent.

     2)   If not an Electronic Request, Original Request for Advance against
          Single-Family Mortgage Loans (Exhibit A).

     3)   Original signed Mortgage Note, endorsed by the Company in blank with
          corresponding interim endorsements, if applicable.

     4)   Copy of the Mortgage certified true by the escrow/title company or
          closing agent.

     5)   Certified true copies of all interim assignments (recorded or sent for
          recordation) of the Mortgage.

     6)   An Assignment of the Mortgage to the Lender in recordable form but
          unrecorded.

     7)   Copy of specific Purchase Commitment, if any.

II.  Prior to making a Wet Settlement Advance or a Subwarehouse Advance, the
     Lender must receive the following:

     1)   Copy of settlement or funding check issued to, or signed wire transfer
          request directing funds to escrow/title company or closing agent.

     2)   If not an Electronic Request, Original Request for Advance against
          Single-Family Mortgage Loans (Exhibit A).

                                      -59-

<PAGE>

     3)   Copy of specific Purchase Commitment, if any.

     4)   A copy of the Company's final closing instructions to the title
          company or closing agent, noting Lender's security interest in the
          loan, as provided below:

          "You are hereby notified that Bank United, a federal savings bank (the
          "Lender") has a security interest in the promissory note, the deed of
          trust or mortgage, and all other supporting documents for the above
          referenced loan. Unless the Lender otherwise instructs you, all loan
          documents are to be returned to the undersigned company within
          twenty-four (24) hours after settlement."

The original Mortgage Note and other supporting documents described in Section I
must be received by the Lender within five (5) Business Days of the date of the
Wet Settlement Advance. A copy of the Subwarehouse Mortgage Note and all
necessary endorsements shall be received within two (2) Business Days of any
Subwarehouse Mortgage Loan Advance.

III. The Lender exclusively shall deliver Pledged Mortgages and all related loan
     documents and/or pool documents to Investor or Approved Custodian unless
     otherwise agreed in writing.

IV.  The following procedures are to be followed for deliveries of Pledged
     Mortgages to Investors:

     No later than 2:00 p.m. Houston, Texas time one (1) Business Day prior to
     the expiration date of the Purchase Commitment, the Lender must receive the
     following:

     1)   Signed or electronic shipping instructions for the delivery of the
          Pledged Mortgages including the following:

          a)   Name and address of the office of the Investor to which the loan
               documents are to be shipped and the preferred method of delivery;

          b)   Instructions for endorsement of the Mortgage Note;

          c)   Names of Mortgagor and Mortgage Note Amounts of Pledged Mortgages
               to be shipped; and

          d)   Number and expiration date of the Purchase Commitment.

                                      -60-

<PAGE>

          2)   All loan documents related to the Pledged Mortgages required for
               delivery to the Investor.

                                      -61-

<PAGE>

                                    EXHIBIT D

                   FORM OF SHIPPING REQUEST AND AUTHORIZATION
                              [Company Letterhead]

Date:
      -----------------------

BANK UNITED
[Address]

Attention:                                       Re: Commitment No.
           ---------------------------------                        ----------

This letter is to serve as authorization for you to endorse and ship Loan
Documents for the following loans:

Loan Number   Borrower Name   Note Amount
-----------   -------------   -----------

to the following address:

NAME:
ADDRESS:

ATTENTION:

Please endorse the notes as follows:

Please ship the Loan Documents either by                                   or by
                                         ---------------------------------
such other courier service we have specifically approved in writing. You are not
responsible for any delays in shipment or any other actions or inactions of the
courier. However, because the commitment expires on                    ,       ,
                                                    -------------------  ------
we ask that you deliver the Loan Documents to the courier no later than
                            ,       .
----------------------------  ------

Please have the courier bill us by using our account no.                       .
                                                         ----------------------
If you should have any questions, or should feel the need for additional
documentation, please do not hesitate to call                      .
                                              ---------------------

                                                  BANC NLC MORTGAGE LENDING, LLC

                                                  By:
                                                      --------------------------
                                                  Name:
                                                        ------------------------
                                                  Title:
                                                         -----------------------

                                      -62-

<PAGE>

                                    EXHIBIT E

                                  TRUST RECEIPT

Trust Receipt No.                                                   ,
                  ----------------------     -----------------------  ----------

     The undersigned, Banc NLC Mortgage Lending, LLC, a Florida limited
liability company (the "Company"), acknowledges receipt from Bank United, a
federal savings bank ("Lender"), pursuant to that certain Warehousing Credit and
Security Agreement (Single-Family Mortgage Loans) dated effective as of
                                 ,         , by and between the Company and
------------------------ --------  --------
Lender (the "Agreement"), of the following described property (the "Trust
Property"), possession of which is herewith entrusted to the Company for the
purposes set forth below:

Mortgage Loan No.                              Note Amount:
                  ------------------------                  --------------------
Obligor:
         ---------------------------------

Purpose: [Specify nature of clerical or other documentation problem to be
         corrected.]

     The Company hereby acknowledges that a security interest in the Trust
Property and in the proceeds of the Trust Property has been granted to the
Lender pursuant to the Agreement.

     In consideration of the delivery of the Trust Property by the Lender to the
Company, the Company hereby agrees to hold the Trust Property in trust for the
Lender as provided under and in accordance with all provisions of the Agreement
and to return the Trust Property to the Lender no later than the close of
business on the tenth day following the date hereof or, if such day is not a
Business Day, on the following Business Day. The Company further agrees that the
aggregate Collateral Value of Single-family Mortgage Loans with respect to which
notes or other documentation has been released under trust receipts, does not
exceed $500,000.00.

                                                  BANC NLC MORTGAGE LENDING, LLC

                                                  By:
                                                      --------------------------
                                                  Name:
                                                        ------------------------
                                                  Title:
                                                         -----------------------

                                      -63-

<PAGE>

Delivery to Company Acknowledged:

BANK UNITED

By:
   ---------------------------------
Name:
     --------------------------------
Title:
      -------------------------------

The undersigned acknowledges that the above-mentioned Trust Property has been
returned to the Lender on                           ,         .
                          --------------------------  --------

                                        BANK UNITED

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                      -64-

<PAGE>

                                    EXHIBIT F

                              OFFICER'S CERTIFICATE

COMPANY:           BANC NLC MORTGAGE LENDING, LLC
                   /NLC FINANCIAL SERVICES, LLC

LENDER:            BANK UNITED

DATE:
                   -------------
REPORTING PERIOD:                                ended                  ,
                   ------------------------------       ----------------  ------

     This certificate is delivered to Lender under the Warehousing Credit and
Security Agreement dated effective as of
                                                      , 2000, between Company
-------------------------------------------- ---------
and Lender (the "Agreement"), all the defined terms of which have the same
meanings when used herein.

     I hereby certify that: (a) I am, and at all times mentioned herein have
been, the duly elected, qualified, and acting officer of Company designated
below; (b) to the best of my knowledge, the Financial Statements of Company for
the period shown above (the "Reporting Period") and which accompany this
certificate were prepared in accordance with GAAP and present fairly the
financial condition of Company as of the end of the Reporting Period and the
results of its operations for the Reporting Period; (c) a review of the
Agreement and of the activities of the Company during the Reporting Period has
been made under my supervision with a view to determining Company's compliance
with the covenants, requirements, terms, and conditions of the Agreement, and
such review has not disclosed the existence during or at the end of the
Reporting Period (and I have no knowledge of the existence as of the date
hereof) of any Event of Default or Default, except as disclosed on the Annex
hereto (which specifies the nature and period of existence of each Event of
Default or Default, if any, and what action Company has taken, is taking, and
proposes to take with respect to each); (d) the calculations described on the
attached Annex evidence that the Company is in compliance with the requirements
of Sections 7.5 and 7.6 of the Agreement at the end of the Reporting Period (or
if Company is not in compliance, showing the extent of non-compliance and
specifying the period of non-compliance and what actions the Company proposes to
take with respect thereto; (e) the Company was, as of the end of the Reporting
Period, in compliance and good standing with any applicable FNMA, GNMA, FHLMC,
and HUD net worth requirements.

                                        BANC NLC MORTGAGE LENDING, LLC

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                      -65-

<PAGE>

                               ANNEX TO EXHIBIT F

COMPANY NAME:      BANC NLC MORTGAGE LENDING, LLC

REPORTING PERIOD:
                  -----------------------------------------

All financial calculations set forth herein are as of the Reporting Period.

(a)  TANGIBLE NET WORTH

     The Tangible Net Worth of the Company is:

     GAAP Net Worth:                                              $
                                                                   -------------

     Minus: Intangible Assets, including Capitalized Servicing
     Rights:                                                      $
                                                                   -------------

     Minus: Advances or loans to shareholders, officers or
     Affiliates                                                   $
                                                                   -------------

     Minus: Investments in Affiliates:                            $
                                                                   -------------

     Minus: Assets pledged to secure liabilities not included in
     Debt:                                                        $
                                                                   -------------

     Minus: Any other HUD nonacceptable assets:                   $
                                                                   -------------
     TANGIBLE NET WORTH:                      $
                                               -------------

(b)  ADJUSTED TANGIBLE NET WORTH

     The Adjusted Tangible Net Worth of the Company is:

     Tangible Net Worth (from above):                             $
                                                                   -------------

     Plus: Subordinated Debt                                      $
                                                                   -------------

     ADJUSTED TANGIBLE NET WORTH:                                 $
                                                                   -------------

     Minimum Adjusted Tangible Net Worth is $
                                             -------------

                                      -66-

<PAGE>

     Covenant Satisfied:                 Covenant Not Satisfied:
                        ----------------                        ----------------

(c)  DEBT OF THE COMPANY

Total Liabilities:                                                $
                                                                   -------------

DEBT:                                                             $
                                                                   -------------

(d)  DEBT TO ADJUSTED TANGIBLE NET WORTH

The ratio of Debt to Adjusted Tangible Net Worth is:                   to 1.
                                                     -----------------
Maximum Debt to Adjusted Tangible Net Worth Ratio is             :         .
                                                     ------------ ---------

Covenant Satisfied:                    Covenant Not Satisfied:
                    ------------------                         -----------------

(e)  DEFAULTS OR EVENTS OF DEFAULT (disclose nature and period of existence and
     action being taken in connection therewith; if none, state none)

                                      -67-

<PAGE>

                                    EXHIBIT G

                              LIST OF SUBSIDIARIES

--------------------------------------------------------------------
                                                WHERE
              ADDRESS OF         STATE OF     QUALIFIED    COMPANY'S
              PRINCIPAL       INCORPORATION    FOREIGN    PERCENTAGE
  NAME         OFFICE          OR FORMATION     CORP.      OWNERSHIP
--------------------------------------------------------------------
HKL, LLC   700 W. Hillsboro   DE              DE          100%
           Blvd., Deerfield
           Beach, FL 33441
--------------------------------------------------------------------

--------------------------------------------------------------------

                                      -68-

<PAGE>

                                    EXHIBIT H

                        DISCLOSURE OF PENDING LITIGATION

(Include the caption of the case, including styling, cause number, and court in
which it is pending, date filed, status of the proceedings, and description of
claims, counterclaims and damages asserted.)

               NONE.

                                      -69-

<PAGE>

                                    EXHIBIT I

                             TRADE NAMES OF COMPANY

       TRADE NAME                                        JURISDICTION USED

NLC Mortgage Lending, LLC                          GA, IL, MI, PA, NV, CO and UT

                                      -70-

<PAGE>

                                    EXHIBIT J

                                 RESOLUTIONS AND
                       INCUMBENCY CERTIFICATE OF OFFICERS
                              (BORROWING AUTHORITY)

     I, the undersigned, hereby certify that I am the Executive Vice President
of BANC NLC MORTGAGE LENDING, LLC, a limited liability company duly organized
and existing under the laws of the State of Florida (the "Company").

     I further certify that true and correct copies of the Articles of Formation
of the Company together with all amendments thereto are attached hereto as
Exhibits A and B, respectively, and that such certificate and agreement remain
unaltered and in full force and effect.

     I further certify that the following resolutions were duly adopted by the
Board of Managers of the Company at a meeting of the Board of Managers of the
Company, duly and legally called and held in accordance with the Articles of
Formation of the Company on the 31st day of January, 2000, at which meeting a
quorum was present and voting throughout, or (if the foregoing date was not
completed) pursuant to a written consent signed by all of the members of the
[Board of Directors] of the Company in accordance with the Articles of Formation
of the Company, and that such resolutions are now in full force and effect and
have not been amended, modified or revoked:

          "RESOLVED, that each of the following officers of this Company:

          Neal Henschel, President - Jeffrey Henschel, Executive Vice President

     acting alone without the joinder of any other officer, is hereby authorized
     in the name and on behalf of this Company (i) to borrow from and to
     otherwise incur liabilities to BANK UNITED ("Lender") from time to time, in
     such amounts, for such periods of time, at such rates of interest and
     payable in such manner as such officers may deem necessary or proper, and
     (ii) as evidence of such indebtedness so incurred, to execute and deliver
     to Lender such promissory notes, loan agreements and other instruments,
     documents and agreements, containing such terms and provisions as may be
     acceptable or agreeable to any one of such officers, such acceptance and
     agreement to be conclusively evidenced by the execution and delivery
     thereof by any one of such officers;

          FURTHER RESOLVED, that this Company grant to Lender a lien and/or
     security interest upon such assets of this Company as may be agreed upon
     between any one of the above named officers and Lender, as security for all
     present and future indebtedness, obligations and liabilities of this
     Company to Lender and that each of said officers, acting alone without the
     joinder of any other officer, is hereby authorized in the name and on
     behalf of this Company to execute and deliver such security agreements,
     deeds of trust and other

                                      -71-

<PAGE>

     instruments, documents and agreements as may be required by Lender in
     connection with each such grant of a lien and/or security interest and
     containing such terms and provisions as may be acceptable or agreeable to
     any one of such officers, such acceptance and agreement to be conclusively
     evidenced by the execution and delivery thereof by any one of such
     officers;

          FURTHER RESOLVED, that any one of the above named officers, acting
     alone without the joinder of any other officer, is hereby authorized in the
     name and on behalf of this Company to take such further action and to do
     all things that any one of such officers deems necessary in connection with
     any (i) increases, renewals, extensions, rearrangements, retirements or
     compromises of any indebtedness, obligations and liabilities owing to
     Lender from time to time by this Company, either directly or by assignment,
     and (ii) amendments to any of the provisions contained in any instruments,
     documents or agreements evidencing, securing, governing and/or pertaining
     to any indebtedness, obligations and liabilities owing to Lender by this
     Company from time to time;

          FURTHER RESOLVED, that any one of the above named officers, or any one
     of the following representatives of this Company:

          Neal Henschel, President - Jeffrey Henschel, Executive Vice President
          Lesley Hackett, Senior Vice President; and Ken Nahman, Vice President

     acting alone without the joinder of any other officer or representative, is
     hereby authorized in the name and on behalf of this Company to (i) make
     requests for advances under any credit facility that this Company may have
     with Lender from time to time, and (ii) do or cause to be done all such
     acts or things and to sign and deliver, or cause to be signed and
     delivered, all such instruments, documents, agreements and certificates
     (including without limitation, any and all notices and certificates
     required or permitted to be given or made to Lender under the terms of any
     of the instruments, documents or agreements executed on behalf of this
     Company in connection with these resolutions), as any and all of such
     officers or representatives may deem necessary, advisable or appropriate to
     effectuate and carry out the purposes and intent of the foregoing
     resolutions and to perform the obligations of this Company under all
     instruments, documents and agreements executed on behalf of this Company in
     connection with any indebtedness, obligations or liabilities incurred by
     this Company to Lender from time to time;

          FURTHER RESOLVED, that any one of the above named officers, acting
     alone without joinder of any other officer or representative is hereby
     authorized in the name and on behalf of this Company (i) to sell and
     transfer notes, securities and financial instruments of this Company to the
     Lender, from time to time, in such amounts and on such terms and conditions
     and in such manner as any one of such officers may deem necessary or proper
     and (ii) in connection therewith, to execute and deliver to the Lender a
     master repurchase agreement and such other documents and agreements
     containing such terms and provisions as may be

                                      -72-

<PAGE>

     acceptable or agreeable to any one of such officers, such acceptance and
     agreement to be conclusively evidenced by the execution and delivery
     thereof by any one of such officers;

          FURTHER RESOLVED, that all acts, transactions or agreements with
     Lender undertaken prior to the adoption of the foregoing resolutions by any
     one or more of the officers and/or representatives of this Company in its
     name and on its behalf in connection with the foregoing matters are hereby
     ratified, confirmed and adopted by this Company; and

          FURTHER RESOLVED, that each of the officers of this Company is hereby
     authorized and directed to certify these resolutions to Lender;

          FURTHER RESOLVED, the foregoing resolutions shall continue in full
     force and effect, and the Lender is authorized to rely upon the foregoing
     resolutions unless and until (i) countermanded by resolution of the [Board
     of Directors] of this Company, and (ii) a copy of such resolution, properly
     certified by an officer of this Company, has actually been received by
     Lender."

     I further certify that the foregoing resolutions do not conflict with the
Articles of Formation of the Company, or any amendments thereto.

     I further certify that neither the seal of the Company, nor the attestation
by the Secretary, Assistant Secretary or any other officer of the Company, is
necessary to make any instruments, documents or agreements executed by the
officers or representatives of this Company pursuant to the foregoing
resolutions, enforceable against the Company, unless such seal is affixed to, or
such attestation is provided on, such instruments, documents or agreements.

     I further certify that the officers of the Company set forth below have
been duly elected and qualified and as of the date hereof hold the specified
offices with the Company, that the signature set forth beside each officer's
name is the true signature of such officer, and that the signature set forth
beside the name of each of the representatives specified in the foregoing
resolutions is the true signature of such representative:

                                      -73-

<PAGE>

      TITLE                TYPED NAME              SIGNATURE

President                Neal Henschel
                                            -------------------------

Vice President        Jeffrey M. Henschel
                                            -------------------------

Treasurer                  Marc Leder
                                            -------------------------

Secretary                 Roger Krouse
                                            -------------------------

Assistant Secretary   Jeffrey M. Henschel
                                            -------------------------

     IN WITNESS WHEREOF, I hereunto subscribe my name this         day of
                                                           -------
            ,        .
------------  -------

                                            ------------------------------------

                                            ------------------------------------
                                            (Printed Name)

                                            ------------------------------------
                                            (Title)

                                      -74-

<PAGE>

                                    EXHIBIT K

                                  BAILEE LETTER

(Investor Name and Address)

     Re:  Purchase of Mortgage Loans from Banc NLC Mortgage Lending, LLC

Ladies and Gentlemen:

     Attached please find those Mortgage Loans listed separately on the attached
schedule, which Mortgage Loans are owned by Banc NLC Mortgage Lending, LLC, a
Florida limited liability company (the "Company") and are being delivered to you
for purchase.

     The Mortgage Loans comprise a portion of the Collateral under (and as the
term "Collateral" and capitalized terms not otherwise defined hereunder are
defined in) that certain Warehousing Credit and Security Agreement
(Single-family Mortgage Loans) ("Warehouse Agreement") dated effective as of
                          , 2000, by and between the Company and BANK UNITED, a
----------------- --------
federal savings bank ("Lender"). Each of the Mortgage Loans is subject to a
security interest in favor of Lender, which security interest shall be
automatically released upon our receipt of the full amount due to the Lender
under the Warehouse Agreement in connection with such Mortgage Loans (as set
forth on the schedule attached hereto) by wire transfer to the following
account:

          Bank United
          Houston, Texas
          ABA #313071904
          Credit:
                  -----------------
          Account:
                   -----------------------

     Until payment therefor is received, the aforesaid security interest therein
will remain in full force and effect, and you shall hold possession of such
Collateral and the documentation evidencing same as custodian, agent and bailee
for and on behalf of Lender. In the event any Mortgage Loan is unacceptable for
purchase, return the reject item directly to the undersigned at the address set
forth below. In no event shall any Mortgage Loan be returned or sales proceeds
remitted in full no later than thirty (30) days from the date hereof. If you are
unable to comply with the above instructions, please so advise the undersigned
immediately.

                                      -75-

<PAGE>

     NOTE: BY ACCEPTING THE MORTGAGE LOANS DELIVERED TO YOU WITH THIS LETTER,
YOU CONSENT TO BE THE CUSTODIAN, AGENT AND BAILEE FOR LENDER ON THE TERMS
DESCRIBED IN THIS LETTER. THE UNDERSIGNED REQUESTS THAT YOU ACKNOWLEDGE RECEIPT
OF THE ENCLOSED MORTGAGE LOANS AND THIS LETTER BY SIGNING AND RETURNING THE
ENCLOSED COPY OF THIS LETTER TO THE UNDERSIGNED AT THE FOLLOWING ADDRESS: 3200
Southwest Freeway, Houston, Texas 77027.

     HOWEVER, YOUR FAILURE TO DO SO DOES NOT NULLIFY SUCH CONSENT.

                                        Sincerely,

                                        BANK UNITED

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

IRREVOCABLY ACKNOWLEDGED
AND AGREED TO:

[INVESTOR]

By:
    -------------------------------
Name:
      -----------------------------
Title:
       ----------------------------

                                      -76-

<PAGE>

                                    EXHIBIT L

                                LIST OF INVESTORS

                                CURRENT INVESTORS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Investor Name                       Contact                         Address                   Phone
------------------------------------------------------------------------------------------------------
<S>                          <C>                       <C>                                 <C>
Impac Funding Corp.          Diane H. Keane            150 Second Avenue North, Ste 1170   813-822-249
                             Vice Pres. Eastern Reg.   St. Petersburg, FL 33701
------------------------------------------------------------------------------------------------------
Metropolitan Mortgage        Robert H. Lurer           4700 Biscayne Boulevard             305-438-070
                             Senior Vice President     Miami, FL 33137
------------------------------------------------------------------------------------------------------
Residential Funding Corp.    Steven Mangold            One Meridian Crossings, Suite 100   727-530-156
                             Marketing Director        Minneapolis, MN 55423
                             Consumer Fin. Acquis.
------------------------------------------------------------------------------------------------------
Assoc. Home Equity Sys.      Wally Sagesar             2516 Highway 35                     813-870-755
                             Vice President            Manasquan, NJ 08736
                             Wholesale Ops
------------------------------------------------------------------------------------------------------
Bank of America              Don Pippin                1518 Storington Avenue              813-655-764
(Equicredit)                 Account Executive         Brandon, FL 33511
                             Home Equity Servicing
                             Acquisitions
------------------------------------------------------------------------------------------------------
*Bank One Fin. Sys, Inc.     Robert F. Miller          1000 Atrium Way, Suite 102          800-347-173
                             Senior Vice President     Mt. Laurel, NJ 08054-0637
------------------------------------------------------------------------------------------------------
Chase Manhattan Mtg.         Frank J. Tafuno           300 Tice Blvd., 3d Floor North      201-307-317
                             National Sales Manager    WoodcliffLake, NJ 07675
------------------------------------------------------------------------------------------------------
*GE Capital Mtg. Sys, Inc.   Ray Robac                 Three Executive Campus              800-257-781
                             Account Executive         Cherry Hill, NJ 08002
------------------------------------------------------------------------------------------------------
*Household Financial Sys.    Rudy A. Orman             15310 Amberly Drive, Suite 250-32   800-840-667
                             Vice President            Tampa, FL 33647
                             Eastern Reg. Sales Dir.
------------------------------------------------------------------------------------------------------
Impac Funding Corporation    Diane H. Keane            150 Second Avenue North, Ste 1170   813-822-249
                             Vice Pres. Eastern Reg.   St. Petersburg, FL 33701
------------------------------------------------------------------------------------------------------
Metropolitan Mortgage        Robert H. Lurer           4700 Biscayne Boulevard             305-438-070
                             Senior Vice President     Miami, FL 33137
------------------------------------------------------------------------------------------------------
Provident Consumer Fin.      Ed Sullivan               309 Vine Street, 195ID              800-838-972
                             Bulk Acquis. Manager      Cincinnati, OH 45202
------------------------------------------------------------------------------------------------------
Residential Funding Corp.    Steven Mangold            One Meridian Crossings, Suite 100   727-530-156
                             Marketing Director        Minneapolis, MN 55423
                             Consumer Fin. Acquis.
------------------------------------------------------------------------------------------------------
Saxon Mortgage, Inc.         J. Kevin Berry            4880 Cox Road                       804-967-584
                             Jr. Acct. Manager         Glen Allen, VA 23060
------------------------------------------------------------------------------------------------------
</TABLE>

                                      -77-

<PAGE>

                                    EXHIBIT M

                                 OPINION LETTER

                                                         , 2000
                 ------------------------------- --------

Bank United
Southwest Freeway
Houston, Texas 77027

     Re: Warehousing Credit and Security Agreement (Single-Family Mortgage
         Loans)

Gentlemen:

     We have acted as special counsel for Banc NLC Mortgage Lending, LLC, a
Florida limited liability company (the "Company"), in connection with the
negotiation and execution of the following documents (collectively, the "Credit
Documents"):

     1.   the Warehousing Credit and Security Agreement (Single-Family Mortgage
          Loans) dated effective as of                                      ,
                                       ----------------------------- -------
          2000 (the "Loan Agreement"), between the Company and Bank United (the
          "Lender"); and

     2.   the Note dated effective as of                                       ,
                                         ------------------------------- ------
          2000 (the "Note"), executed and delivered by the Company.

     Unless otherwise provided herein, terms used herein which are defined in
the Credit Documents (including schedules and exhibits thereto) and not defined
herein shall have the meanings attributed thereto in the Credit Documents.

     I.   Basis of Opinion.

     As the basis for the conclusions expressed in this opinion letter, we have
examined, considered and relied upon the following:

          A. A copy of each of the Credit Documents executed by the Company;

          B. Recent Certificates of Existence and Good Standing of the Company
issued by the Secretary of State and Comptroller of the State of Florida;

          C. A copy of the Articles of Formation and amendments thereto of the
Company, in each case as certified to us by the Company Certificate;

          D. Such other documents and records as we have deemed relevant,
necessary or appropriate in connection with or as a basis for the opinions
hereafter set forth; and

                                      -78-

<PAGE>

          E. Such matters of law as we have considered necessary or appropriate
for the expression of the opinions contained herein.

     For the purposes of this opinion letter, the documents and information
referred to in this Section I are herein collectively referred to as the
"Documents".

     II.  Opinions.

     Based upon our examination and consideration of the foregoing Documents,
and subject to the comments, assumptions, exceptions, qualifications and
limitations set forth in Section III below, we are of the opinion that:

          A. The Company (i) is a limited liability company duly organized,
validly existing, and in good standing under the laws of the State of Florida,
(ii) has the full legal power and authority and all necessary licenses, permits,
franchises, and other authorizations to own and operate its property and assets
and to transact the business in which it is engaged, and (iii) is duly qualified
to transact business as a foreign limited liability company in each jurisdiction
where the nature of the business it transacts or the property it owns requires
such qualification or licensing except in such jurisdictions where the failure
to be in good standing or be licensed (as the case may be) would have no
material adverse effect on the Company.

          B. The Company has the requisite power to execute, deliver, and
perform the terms and provisions of each of the Credit Documents and has taken
all necessary action to authorize the execution, delivery, and performance by it
of each such Credit Document. The Company has duly executed each of the Credit
Documents, and each such Credit Document constitutes its legal, valid, and
binding obligation enforceable in accordance with its terms, except as the
enforceability of the rights and remedies of the Lender under each of the Credit
Documents may be limited by applicable bankruptcy, insolvency, reorganization or
other similar laws affecting the enforcement of creditors' rights generally and
by general equitable principles (regardless of whether the issue of
enforceability is considered in a proceeding in equity or at law) including
requirements of reasonableness and good faith in the exercise of rights and
remedies under the Credit Documents.

          C. Neither the execution, delivery, or performance by the Company of
the Credit Documents, nor compliance by it with the terms and provisions
thereof, (i) will contravene any law, statute, rule, or regulation; (ii) to the
best of our knowledge, will contravene any order, writ, injunction, or decree of
any court or governmental instrumentality; (iii) to the best of our knowledge,
will conflict or be inconsistent with or result in any breach of any of the
material terms, covenants, conditions, or provisions of, or constitute a default
under, or result in the creation or imposition of (or the obligation to create
or impose) any lien upon any of the property or assets of the Company pursuant
to the terms of any agreement of the Company; (iv) will violate any provision of
the Articles of Formation of the Company.

          D. No order, consent, approval, license, authorization or validation
of, or filing, recording or registration with, or exemption by, any governmental
or public body or

                                      -79-

<PAGE>

authority, or any subdivision thereof, is required to authorize, or is required
in connection with, (i) the execution, delivery and performance of any Credit
Document, or (ii) the legality, validity, binding effect or enforceability of
any such Credit Document.

          E. To the best of our knowledge, there are no actions, suits, or
proceedings pending or threatened (i) with respect to any Credit Document or
(ii) that could materially and adversely affect the business, operations,
property, assets, condition (financial or otherwise) or prospects of the
Company.

          F. The Company is not an "investment company" within the meaning of
the Investment Company Act of 1940, as amended.

          G. The Company is not a "holding company" or a "subsidiary company" of
a "holding company" within the meaning of the Public Utility Holding Company Act
of 1935, as amended.

          H. The execution and delivery of the Loan Agreement by the Borrower is
effective to create a valid and enforceable security interest in favor of the
Lender in the Collateral and the proceeds thereof.

          I. The Lender will have a valid and duly perfected security interest,
without further requirements for perfection, in (a) the Pledged Mortgages upon
the delivery thereof to the Lender and (b) the other Collateral described in the
Financing Statements to the extent that a security interest therein may be
perfected under Article 9 of the UCC solely by filing a financing statement with
the Secretary of State of Florida, which lien shall be superior to any other
interests therein.

     III. Comments, Assumptions, Limitation, Qualifications and Exceptions.

     The opinions expressed in Section II above are based upon, and subject to,
the further comments, assumptions, limitations, qualifications and exceptions
set forth below:

     [list]

                             Respectfully submitted,

                                      -80-

<PAGE>

                                    EXHIBIT N

                                 PROMISSORY NOTE

$25,000,000.00                  Houston, Texas      As of                 , 2000
                                                         -----------------

     FOR VALUE RECEIVED, the undersigned, BANC NLC MORTGAGE LENDING, LLC, a
Florida limited liability company (herein called the "Borrower," hereby promises
to pay to the order of BANK UNITED, a federal savings bank (the "Lender" or,
together with its successors and assigns, the "Holder") whose principal place of
business is 3200 Southwest Freeway, Suite 2000, Houston, Texas 77027, ATTN:
Mortgage Banker Finance, or at such other place as the Holder may designate from
time to time, the principal sum of TWENTY-FIVE MILLION AND NO/100 DOLLARS
($25,000,000.00) or so much thereof as may be outstanding from time to time
pursuant to the Warehousing Credit and Security Agreement (the "Agreement")
dated of even date herewith between the Borrower and the Lender, as the same has
been amended and supplemented or may be amended or supplemented from time to
time, and to pay interest on said principal sum or such part thereof as shall
remain unpaid from time to time, from the date of each Advance until repaid in
full, and all other fees and charges due under the Agreement, at the rate and at
the times set forth in the Agreement. All payments hereunder shall be made in
lawful money of the United States and in immediately available funds.

     This Note is given to evidence an actual warehouse line of credit in the
above amount and is the Note referred to in the Agreement, and is entitled to
the benefits thereof. Reference is hereby made to the Agreement (which is
incorporated herein by reference as fully and with the same effect as if set
forth herein at length) for a description of the Collateral, required payments
of principal and interest on this Note, a statement of the covenants and
agreements, a statement of the rights and remedies and securities afforded
thereby and other matters contained therein. Capitalized terms used herein,
unless otherwise defined herein, shall have the meanings given them in the
Agreement.

     The entire unpaid principal balance of this Note plus all accrued and
unpaid interest shall be due and payable in full on                      .
                                                    ---------------------

     This Note may be prepaid in whole or in part at any time without premium or
penalty.

     Should this Note be placed in the hands of attorneys for collection, the
Borrower agrees to pay, in addition to principal and interest, fees and charges
due under the Agreement, and all costs of collecting this Note, including
reasonable attorneys' fees and expenses.

     This Note shall be construed and enforced in accordance with the laws of
the State of Texas, without reference to its principles of conflicts of law, and
applicable federal laws of the United States of America.

                                      -81-

<PAGE>

     This Note is secured by all security agreements, collateral assignments,
deeds of trust and lien instruments executed by the Borrower in favor of Lender,
or executed by any other Person as security for this Note, including any
executed prior to, simultaneously with, or after the date of this Note and
including, without limitation, the Security Documents.

     The Borrower and any and each co-maker, guarantor, accommodation party,
endorser or other Person liable for the payment or collection of this Note
expressly waive notice, presentment, demand for payment, protest, notice of
protest and non-payment or dishonor, notice of acceleration, notice of intent to
accelerate, notice of intent to demand, bringing of suit, and diligence in
taking any action to collect amounts called for hereunder and in the handling of
Collateral at any time existing as security in connection herewith, and shall be
directly and primarily liable for the payment of all sums owing and to be owing
hereon, regardless of and without any notice, diligence, act or omission as or
with respect to the collection of any amount called for hereunder or in
connection with any Lien at any time had or existing as security for any amount
called for hereunder.

     It is the intention of the parties hereto to conform strictly to usury laws
applicable to the Lender. Accordingly, if the transactions contemplated hereby
would be usurious under applicable law (including the laws of the United States
of America and the State of Texas), then, in that event, notwithstanding
anything to the contrary herein or in the Agreement or in any other Loan
Document or agreement entered into in connection with or as security for this
Note, it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under law applicable to the Lender that is contracted for,
taken, reserved, charged, or received herein or under the Agreement or under any
of the other aforesaid Loan Documents or agreements or otherwise in connection
herewith shall under no circumstances exceed the maximum amount allowed by such
applicable law, and any excess shall be credited by the Lender on the principal
amount of the Obligations (or, if the principal amount of the Obligations shall
have been paid in full, refunded by the Lender to the Borrower, as required);
and (ii) in the event that the maturity of this Note is accelerated by reason of
an election of the required or permitted prepayment, then such consideration
that constitutes interest under law applicable to the Lender may never include
more than the maximum amount allowed by such applicable law, and excess
interest, if any, provided for in the Agreement or otherwise shall be canceled
automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited by the Lender on the principal amount of the
Obligations (or, if the principal amount of the Obligations shall have been paid
in full, refunded by the Lender to the Borrower, as required). Without limiting
the foregoing, all calculations of the rate of interest taken, reserved,
contracted for, charged, received or provided for under this Note or any of the
Loan Documents which are made for the purpose of determining whether the
interest rate exceeds the Maximum Rate shall be made, to the extent allowed by
law, by amortizing, prorating, allocating and spreading in equal parts during
the period of the full stated term of the loan evidenced hereby, all interest at
any time taken, reserved, contracted for, charged, received, or provided for
under this Note or any of the Loan Documents. To the extent that the Section 303
of the Texas Finance Code is relevant for purposes of determining the Maximum
Rate, the Lender hereby elects to determine the applicable rate ceiling under
such statute by the weekly rate ceiling from time to time in effect,

                                      -82-

<PAGE>

subject to the Lender's right subsequently to change such method in accordance
with applicable law.

                                        BANC NLC MORTGAGE LENDING, LLC

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      -83-<PAGE>

INFORMATION DENOTED BY [*] HEREIN HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. THIS INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 9
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 9, dated as of March 31, 2004 (this "Amendment"),
between CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer") and NLC,
INC. and FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                    RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001, as amended by Amendment No.
1, dated as of May 2, 2002, Amendment No. 2, dated as of September 3, 2002,
Amendment No. 3, dated as of December 19, 2002, Amendment No. 4, dated as of
March 31, 2003, Amendment No. 5, dated as of May 28, 2003, Amendment No. 6,
dated as of July 28, 2003, Amendment No. 7, dated as of January 2, 2004 and
Amendment No. 8, dated as of March 1, 2004 (the "Existing Repurchase Agreement";
as amended by this Amendment, the "Repurchase Agreement"). Capitalized terms
used but not otherwise defined herein shall have the meanings given to them in
the Existing Repurchase Agreement.

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

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

          SECTION 1. Increased Maximum Aggregate Purchase Price Period. For
purposes of this Amendment, this Section 1 will be effective only during the
Increased Maximum Aggregate Purchase Price Period.

          1.1 Section 2 of the Existing Repurchase Agreement is hereby
temporarily amended by adding the following defined terms, which amendment shall
be effective solely during the Increased Maximum Aggregate Purchase Price Period
(as defined below):

          "Increased Maximum Aggregate Purchase Price Period" shall mean the
period beginning on March 31, 2004 through and including July 27, 2004."

          1.2 Section 2 of the Existing Repurchase Agreement is hereby
temporarily amended by deleting the definition of "Maximum Aggregate Purchase
Price" in its entirety and replacing it with the following language, which
amendment shall be effective solely during the Increased Maximum Aggregate
Purchase Price Period:

          "Maximum Aggregate Purchase Price" means $125,000,000 (ONE HUNDRED
TWENTY FIVE MILLION DOLLARS).

                                      -1-

<PAGE>

          SECTION 2. Permanent Amendment; Definitions. Section 2 of the Existing
Repurchase Agreement is hereby amended by deleting the clause (xi) to the
definition of "Market Value" in its entirety and replacing it with the following
language:

          "(xi) when the Purchase Price for such Purchased Mortgage Loan is
added to other Purchased Mortgage Loans, the aggregate Purchase Price of all
Second Lien Mortgage Loans that are Purchased Mortgage Loans exceeds $10.0
million; or"

          SECTION 3. Permanent Amendment; Covenants. Section 14 of the Existing
Repurchase Agreement is hereby amended by deleting subclause (a) in its entirety
and replacing it with the following:

          "Adjusted Tangible Net Worth. First NLC shall maintain an Adjusted
Tangible Net Worth of at least $13 million."

          SECTION 4. Exhibits. Exhibit D to the Existing Repurchase Agreement is
hereby amended by deleting it in its entirety and replacing it with Exhibit A to
this Amendment.

          SECTION 5. Conditions Precedent. This Amendment shall become effective
on March 31, 2004 (the "Amendment Effective Date"), subject to the satisfaction
of the following conditions precedent:

          5.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory
to the Buyer in form and substance:

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller; and

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

          SECTION 6. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 7. 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 8. 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 9. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE

                                      -2-

<PAGE>

STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                                      -3-

<PAGE>

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

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

                                        By: /s/ Bruce S. Kaiserman
                                            ------------------------------------
                                            Name: Bruce S. Kaiserman
                                            Title: Vice President

Seller:                                 NLC, INC.,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name: Jeffrey M. Henschel
                                            Title: President and COO

Seller:                                 FIRST NLC FINANCIAL SERVICES, LLC,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name: Jeffrey M. Henschel
                                            Title: President and COO

<PAGE>

                          EXHIBIT A TO AMENDMENT NO. 8

                                                                       EXHIBIT D

                        OFFICER'S COMPLIANCE CERTIFICATE

          I,                      , do hereby certify that I am duly elected,
             ---------------------
qualified and authorized officer of First NLC Financial Services, LLC and NLC,
Inc. ("Sellers"). This Certificate is delivered to you in connection with
Section 17b of the Master Repurchase Agreement dated as of December 20, 2001,
among Sellers and Credit Suisse First Boston Mortgage Capital LLC (the
"Agreement"). I hereby certify that, as of the date of the financial statements
attached hereto and as of the date hereof, each Seller is and has been in
compliance with all the terms of the Agreement and, without limiting the
generality of the foregoing, I certify that:

          (a) Adjusted Tangible Net Worth. For each quarter commencing after
     March 31, 2004, First NLC has maintained an Adjusted Tangible Net Worth
     greater than $13 million. A detailed summary of the calculation of First
     NLC's actual Adjusted Tangible Net Worth is provided in Schedule 1 hereto.

          (b) Indebtedness to Adjusted Tangible Net Worth Ratio. For each
     quarter commencing after December 31, 2000, First NLC's ratio of
     consolidated Indebtedness to consolidated Adjusted Tangible Net Worth has
     not exceeded 20:1.

          (c) Maintenance of Profitability. First NLC has not permitted, for any
     Test Period, Net Income for such Test Period, before income taxes for such
     Test Period and distributions made during such Test Period, to be less than
     $1.00.

          (d) Insurance. Each Seller or its Affiliates, has maintained, for such
     Seller and its Subsidiaries, insurance coverage with respect to employee
     dishonesty, forgery or alteration, theft, disappearance and destruction,
     robbery and safe burglary, property (other than money and securities) and
     computer fraud or an aggregate amount of at least $              . The
                                                        --------------
     actual amount of such coverage is $              .
                                        --------------

          (e) Financial Statements. The financial statements attached hereto are
     accurate and complete, accurately reflect the financial condition of First
     NLC, and do not omit any material fact as of the date(s) thereof.

          (f) Documentation. Each Seller has performed the documentation
     procedures required by its operational guidelines with respect to
     endorsements and assignments, including the recordation of assignments, or
     has verified that such documentation procedures have been performed by a
     prior holder of such Mortgage Loan.

          (g) Compliance. Each Seller has observed or performed in all material
     respects all of its covenants and other agreements, and satisfied every
     condition, contained in the Agreement and the other Program Agreements to
     be observed, performed and satisfied by it. [If a covenant or other
     agreement or condition has not been

<PAGE>

complied with by a Seller, such Seller shall describe such lack of compliance
and provide the date of any related waiver thereof.]

          (h) Regulatory Action. Neither Seller is currently under investigation
or, to best of the related Seller's knowledge, no investigation by any federal,
state or local government agency is threatened. Neither Seller has been the
subject of any government investigation which has resulted in the voluntary or
involuntary suspension of a license, a cease and desist order, or such other
action as could adversely impact the related Seller's business. [If so, the
related Seller shall describe the situation in reasonable detail and describe
the action that such Seller has taken or proposes to take in connection
therewith.]

          (i) No Default. No Default or Event of Default has occurred or is
continuing. [If any Default or Event of Default has occurred and is continuing,
the related Seller shall describe the same in reasonable detail and describe the
action such Seller has taken or proposes to take with respect thereto, and if
such Default or Event of Default has been expressly waived by Buyer in writing,
such Seller shall describe the Default or Event of Default and provide the date
of the related waiver.]

          (j) Indebtedness. All Indebtedness (other than Indebtedness evidenced
by the Repurchase Agreement) of First NLC existing on the date hereof is listed
on Schedule 2 hereto.

          (k) Purchased Mortgage Loans. Attached hereto as Schedule 3 is a true
and correct list of all Mortgage Loans purchased by Buyer and held by Custodian
pending repurchase.

          (l) Originations. Attached hereto as Schedule 4 is a true and correct
summary of all Mortgage Loans originated by Buyer during the calendar quarter
ending on [DATE].

<PAGE>

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

                                        By:
                                            ------------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

<PAGE>

                 SCHEDULE 1 TO OFFICER'S COMPLIANCE CERTIFICATE

                       CALCULATIONS OF FINANCIAL COVENANTS
                         As of the quarter ended [Date]

--------------------------------------------------------------------------------
I.      Adjusted Tangible Net Worth
--------------------------------------------------------------------------------
1.      Net Worth (book)                                                $
--------------------------------------------------------------------------------
        Plus:
--------------------------------------------------------------------------------
2.      Subordinated Debt (maturity > CSFB line maturity)               $
--------------------------------------------------------------------------------
3.      1% of outstanding servicing portfolio balance                   $
--------------------------------------------------------------------------------

I.(a)    Total of items 1-3                                             $
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
        Less:
--------------------------------------------------------------------------------
4.      Capitalized servicing balance                                   $
--------------------------------------------------------------------------------
5.      Goodwill                                                        $
--------------------------------------------------------------------------------
6.      Receivables or advances due from shareholders,                  $
        affiliates, employees or related parties
--------------------------------------------------------------------------------
7.      Trademarks                                                      $
--------------------------------------------------------------------------------
8.      Capitalized organizational expenses                             $
--------------------------------------------------------------------------------
9.      Copyrights                                                      $
--------------------------------------------------------------------------------
10.     Tradenames                                                      $
--------------------------------------------------------------------------------
11.     Restricted Cash                                                 $
--------------------------------------------------------------------------------
12.     Deferred Charges                                                $
--------------------------------------------------------------------------------
13.     Prepaid assets                                                  $
--------------------------------------------------------------------------------
14.     Investments in related entities, partnerships                   $
--------------------------------------------------------------------------------
15.     Any other intangible assets                                     $
--------------------------------------------------------------------------------

I.(b)   Total of items 4-15                                             $
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
I.(c)   Actual Adjusted Tangible Net Worth (a minus b)                  $
--------------------------------------------------------------------------------
        Adjusted Tangible Net Worth Covenant                            $
--------------------------------------------------------------------------------
        Compliance?                                                     Yes/No
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
II.     Leverage Ratio
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
        Total Debt divided by Adjusted Tangible Net Worth - Actual      xx.x
--------------------------------------------------------------------------------
        Leverage Covenant                                               xx.x
--------------------------------------------------------------------------------
        Compliance?                                                     Yes/No
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

<PAGE>

                 SCHEDULE 2 TO OFFICER'S COMPLIANCE CERTIFICATE

                    INDEBTEDNESS as of
                                       -----------------------

--------------------------------------------------------------------------------
                                                             OUTSTANDING
           LENDER              TOTAL COMMITMENT             INDEBTEDNESS
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

<PAGE>

                 SCHEDULE 3 TO OFFICER'S COMPLIANCE CERTIFICATE

                            PURCHASED MORTGAGE LOANS

<PAGE>

                 SCHEDULE 4 TO OFFICER'S COMPLIANCE CERTIFICATE

                       OVERALL MORTGAGE LOAN ORIGINATIONS

--------------------------------------------------------------------------------
                                    TOTAL NUMBER OF          AGGREGATE PRINCIPAL
                                     MORTGAGE LOANS          BALANCE OF MORTGAGE
     MORTGAGE LOAN TYPE               ORIGINATED              LOANS ORIGINATED
--------------------------------------------------------------------------------
   Alt-A Mortgage Loans
--------------------------------------------------------------------------------
 Conforming Mortgage Loans
--------------------------------------------------------------------------------
   Jumbo Mortgage Loans
--------------------------------------------------------------------------------
Second Lien Mortgage Loans
--------------------------------------------------------------------------------
 Sub-Prime Mortgage Loans
--------------------------------------------------------------------------------

<PAGE>

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 8
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 8, dated as of March 1, 2004 (this "Amendment"), between
CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer") and NLC, INC. and
FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                    RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001, as amended by Amendment No.
1, dated as of May 2, 2002, Amendment No. 2, dated as of September 3, 2002,
Amendment No. 3, dated as of December 19, 2002, Amendment No. 4, dated as of
March 31, 2003, Amendment No. 5, dated as of May 28, 2003, Amendment No. 6,
dated as of July 28, 2003, and Amendment No. 7, dated as of January 2, 2004 (the
"Existing Repurchase Agreement"; as amended by this Amendment, the "Repurchase
Agreement"). Capitalized terms used but not otherwise defined herein shall have
the meanings given to them in the Existing Repurchase Agreement.

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

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

          SECTION 1. Definitions. Section 2 of the Existing Repurchase Agreement
is hereby amended by deleting the definition of "Maximum Aggregate Purchase
Price" in its entirety and replacing it with the following language:

          "Maximum Aggregate Purchase Price" means ONE HUNDRED MILLION DOLLARS
($100,000,000).

          SECTION 2. Covenants. Section 14 of the Existing Repurchase Agreement
is hereby amended by deleting subclause (a) in its entirety and replacing it
with the following:

          "Adjusted Tangible Net Worth. First NLC shall maintain an Adjusted
Tangible Net Worth of at least $11 million."

          SECTION 3. Exhibits. Exhibit D to the Existing Repurchase Agreement is
hereby amended by deleting it in its entirety and replacing it with Exhibit A to
this Amendment.

          SECTION 4. Conditions Precedent. This Amendment shall become effective
on March 1, 2004 (the "Amendment Effective Date"), subject to the satisfaction
of the following conditions precedent:

<PAGE>

          4.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory
to the Buyer in form and substance:

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller; and

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

          SECTION 5. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 6. 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 7. 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 8. Superseding Amendment. This Amendment shall supersede
Section 1 of Amendment No. 7 to the Existing Repurchase Agreement, dated as of
January 4, 2004, from and including the Amendment Effective Date.

          SECTION 9. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                           [SIGNATURE PAGE FOLLOWS]

                                        2

<PAGE>

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

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

                                        By: /s/ CRAIG ECKES
                                            ------------------------------------
                                            Name: CRAIG ECKES
                                            Title: VICE PRESIDENT

Seller:                                 NLC, INC.,
                                        as Seller

                                        By: /s/ JEFFREY M. HENSCHEL
                                            ------------------------------------
                                            Name: JEFFREY M. HENSCHEL
                                            Title: PRESIDENT COO

Seller:                                 FIRST NLC FINANCIAL SERVICES, LLC,
                                        as Seller

                                        By: /s/ JEFFREY M. HENSCHEL
                                            ------------------------------------
                                            Name: JEFFREY M. HENSCHEL
                                            Title: PRESIDENT COO

<PAGE>

                          EXHIBIT A TO AMENDMENT NO. 8

                                                                       EXHIBIT D

                        OFFICER'S COMPLIANCE CERTIFICATE

          I,                           , do hereby certify that I am duly
             --------------------------
elected, qualified and authorized officer of First NLC Financial Services, LLC
and NLC, Inc. ("Sellers"). This Certificate is delivered to you in connection
with Section 17b of the Master Repurchase Agreement dated as of December 20,
2001, among Sellers and Credit Suisse First Boston Mortgage Capital LLC (the
"Agreement"). I hereby certify that, as of the date of the financial statements
attached hereto and as of the date hereof, each Seller is and has been in
compliance with all the terms of the Agreement and, without limiting the
generality of the foregoing, I certify that:

               (a) Adjusted Tangible Net Worth. For each quarter commencing
          after December 31, 2000, First NLC has maintained an Adjusted Tangible
          Net Worth greater than $11 million. A detailed summary of the
          calculation of First NLC's actual Adjusted Tangible Net Worth is
          provided in Schedule 1 hereto.

               (b) Indebtedness to Adjusted Tangible Net Worth Ratio. For each
          quarter commencing after December 31, 2000, First NLC's ratio of
          consolidated Indebtedness to consolidated Adjusted Tangible Net Worth
          has not exceeded 20:1.

               (c) Maintenance of Profitability. First NLC has not permitted,
          for any Test Period, Net Income for such Test Period, before income
          taxes for such Test Period and distributions made during such Test
          Period, to be less than $1.00.

               (d) Insurance. Each Seller or is Affiliates, has maintained, for
          such Seller and its Subsidiaries, insurance coverage with respect to
          employee dishonesty, forgery or alteration, theft, disappearance and
          destruction, robbery and safe burglary, property (other than money and
          securities) and computer fraud or an aggregate amount of at least
          $              . The actual amount of such coverage is $             .
           --------------                                         -------------

               (e) Financial Statements. The financial statements attached
          hereto are accurate and complete, accurately reflect the financial
          condition of First NLC, and do no omit any material fact as of the
          date(s) there of.

               (f) Documentation. Each Seller has performed the documentation
          procedures required by its operational guidelines with respect to
          endorsements and assignments, including the recordation of
          assignments, or has verified that such documentation procedures have
          been performed by a prior holder of such Mortgage Loan.

               (g) Compliance. Each Seller has observed or performed in all
          material respects all of its covenants and other agreements, and
          satisfied every condition, contained in the Agreement and the other
          Program Agreements to be observed, performed and satisfied by it. [If
          a covenant or other agreement or condition has not been

<PAGE>

          complied with by a Seller, such Seller shall describe such lack
          of compliance and provide the date of any related waiver thereof.]

               (h) Regulatory Action. Neither Seller is currently under
          investigation or, to best of the related Seller's knowledge, no
          investigation by any federal, state or local government agency is
          threatened. Neither Seller has been the subject of any government
          investigation which has resulted in the voluntary or involuntary
          suspension of a license, a cease and desist order, or such other
          action as could adversely impact the related Seller's business. [If
          so, the related Seller shall describe the situation in reasonable
          detail and describe the action that such Seller has taken or proposes
          to take in connection therewith.]

               (i) No Default. No Default or Event of Default has occurred or is
          continuing. [If any Default or Event of Default has occurred and is
          continuing, the related Seller shall describe the same in reasonable
          detail and describe the action such Seller has taken or proposes to
          take with respect thereto, and if such Default or Event of Default has
          been expressly waived by Buyer in writing, such Seller shall describe
          the Default or Event of Default and provide the date of the related
          waiver.]

               (j) Indebtedness. All Indebtedness (other than Indebtedness
          evidenced by the Repurchase Agreement) of First NLC existing on the
          date hereof is listed on Schedule 2 hereto.

               (k) Purchased Mortgage Loans. Attached hereto as Schedule 3 is a
          true and correct list of all Mortgage Loans purchased by Buyer and
          held by Custodian pending repurchase.

               (l) Originations. Attached hereto as Schedule 4 is a true and
          correct summary of all Mortgage Loans originated by Buyer during the
          calendar quarter ending on [DATE].

<PAGE>

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

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                 SCHEDULE 1 TO OFFICER'S COMPLIANCE CERTIFICATE

                       CALCULATIONS OF FINANCIAL COVENANTS
                         As of the quarter ended [Date]

--------------------------------------------------------------------------------
I.      Adjusted Tangible Net Worth
--------------------------------------------------------------------------------
1.      Net Worth (book)                                             $
--------------------------------------------------------------------------------
        Plus:
--------------------------------------------------------------------------------
2.      Subordinated Debt (maturity > CSFB line maturity)            $
--------------------------------------------------------------------------------
3.      1% of outstanding servicing portfolio balance                $
--------------------------------------------------------------------------------

I.(a)   Total of items 1-3                                           $
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
        Less:
--------------------------------------------------------------------------------
4.      Capitalized servicing balance                                $
--------------------------------------------------------------------------------
5.      Goodwill                                                     $
--------------------------------------------------------------------------------
6.      Receivables or advances due from shareholders,
        affiliates, employees or related parties                     $
--------------------------------------------------------------------------------
7.      Trademarks                                                   $
--------------------------------------------------------------------------------
8.      Capitalized organizational expenses                          $
--------------------------------------------------------------------------------
9.      Copyrights                                                   $
--------------------------------------------------------------------------------
10.     Tradenames                                                   $
--------------------------------------------------------------------------------
11.     Restricted Cash                                              $
--------------------------------------------------------------------------------
12.     Deferred Charges                                             $
--------------------------------------------------------------------------------
13.     Prepaid assets                                               $
--------------------------------------------------------------------------------
14.     Investments in related entities, partnerships                $
--------------------------------------------------------------------------------
15.     Any other intangible assets                                  $
--------------------------------------------------------------------------------

I.(b)   Total of items 4-15                                          $
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
I.(c)   Actual Adjusted Tangible Net Worth (a minus b)               $
--------------------------------------------------------------------------------
        Adjusted Tangible Net Worth Covenant                         $
--------------------------------------------------------------------------------
        Compliance?                                                  Yes/No
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
II.     Leverage Ratio
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
        Total Debt divided by Adjusted Tangible Net Worth - Actual   XX.X
--------------------------------------------------------------------------------
        Leverage Covenant                                            xx.x
--------------------------------------------------------------------------------
        Compliance?                                                  Yes/No
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

<PAGE>

                 SCHEDULE 2 TO OFFICER'S COMPLIANCE CERTIFICATE

                  INDEBTEDNESS as of
                                     ------------------------

--------------------------------------------------------------------------------
                                                               OUTSTANDING
          LENDER                 TOTAL COMMITMENT             INDEBTEDNESS
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

<PAGE>

                 SCHEDULE 3 TO OFFICER'S COMPLIANCE CERTIFICATE

                            PURCHASED MORTGAGE LOANS

<PAGE>

                 SCHEDULE 4 TO OFFICER'S COMPLIANCE CERTIFICATE

                       OVERALL MORTGAGE LOAN ORIGINATIONS

--------------------------------------------------------------------------------
                                  TOTAL NUMBER OF        AGGREGATE PRINCIPAL
                                  MORTGAGE LOANS         BALANCE OF MORTGAGE
   MORTGAGE LOAN TYPE               ORIGINATED            LOANS ORIGINATED
--------------------------------------------------------------------------------
   Alt-A Mortgage Loans
--------------------------------------------------------------------------------
Conforming Mortgage Loans
--------------------------------------------------------------------------------
   Jumbo Mortgage Loans
--------------------------------------------------------------------------------
Second Lien Mortgage Loans
--------------------------------------------------------------------------------
 Sub-Prime Mortgage Loans
--------------------------------------------------------------------------------

<PAGE>

                                 AMENDMENT NO. 7
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 7, dated as of January 2, 2004 (this "Amendment"),
between CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer") and NLC,
INC. and FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                    RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001, as amended by Amendment No.
1, dated as of May 2, 2002, Amendment No. 2, dated as of September 3, 2002,
Amendment No. 3, dated as of December 19, 2002, Amendment No. 4, dated as of
March 31, 2003, Amendment No. 5, dated as of May 28, 2003 and Amendment No. 6,
dated as of July 28, 2003 (the "Existing Repurchase Agreement"; as amended by
this Amendment, the "Repurchase Agreement"). Capitalized terms used but not
otherwise defined herein shall have the meanings given to them in the Existing
Repurchase Agreement.

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

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

          SECTION 1. Temporary Amendments. For purposes of this Amendment, this
Section 1 will be effective only during the Increased Maximum Aggregate Purchase
Price Period (as defined below).

          1.1 Definitions.

          (a) Section 2 of the Existing Repurchase Agreement is hereby
     temporarily amended by adding the following definition in its proper
     alphabetical order, which amendment shall be effective solely during the
     Increased Maximum Aggregate Purchase Price Period:

          "Increased Aggregate Purchase Price" means TWENTY FIVE MILLION DOLLARS
($25,000,000).

          "Increased Maximum Aggregate Purchase Price Period" shall mean the
period beginning on January 2, 2004 through and including March 5, 2004.

          "Increased Purchase Price Mortgage Loan" means a Mortgage Loan which
is purchased with the proceeds of the Increased Aggregate Purchase Price. Any
Mortgage Loans subject to a Transaction will first be attributed to the Standard
Aggregate Purchase Price prior to any Mortgage Loans being attributed to the
Increased Aggregate Purchase Price. To the extent

<PAGE>

that funds are no longer available under the Standard Aggregate Purchase Price,
any further Mortgage Loans subject to a Transaction will be considered Increased
Purchase Price Mortgage Loans. For purposes of this Agreement, Mortgage Loans
will be allocated first to the Standard Aggregate Purchase Price and then the
Increased Aggregate Purchase Price based on the date on which such Mortgage Loan
becomes subject to this Agreement, commencing from the earliest date to the most
recent date.

          "Liquidity Reserve Amount" means the funds maintained by the Sellers
in the account set forth in Section 9 hereof solely for purposes of maintaining
the Liquidity Reserve Minimum pursuant to Section 3 hereof.

          "Liquidity Reserve Minimum" means, as of any date of determination,
the product of (a) 3.0% and (b) the positive difference, if any, of (A) the
aggregate Purchase Price for all Purchased Mortgage Loans subject to then
outstanding Transactions under this Agreement, less (B) $75,000,000.

          "Standard Aggregate Purchase Price" means SEVENTY FIVE MILLION DOLLARS
($75,000,000).

          (b) Section 2 of the Existing Repurchase Agreement is hereby
     temporarily amended by deleting the definition of "Maximum Aggregate
     Purchase Price" in its entirety and replacing it with the following
     language, which amendment shall be effective solely during the Increased
     Maximum Aggregate Purchase Price Period:

          "Maximum Aggregate Purchase Price" means ONE HUNDRED MILLION DOLLARS
($100,000,000).

          (c) Section 2 of the Existing Repurchase Agreement is hereby
     temporarily amended by deleting the definition of "Purchase Price" in its
     entirety and replacing it with the following language, which amendment
     shall be effective solely during the Increased Maximum Aggregate Purchase
     Price Period:

          "Purchase Price" means the price at which each Mortgage Loan is
transferred by a Seller to Buyer, which shall equal:

          (a) on the Purchase Date, in the case of Purchased Mortgage Loans
     other than One Hundred and Twenty Day Aged Mortgage Loans, One Hundred and
     Fifty Day Aged Mortgage Loans, Repurchased Mortgage Loans or Increased
     Purchase Price Mortgage Loans, the lesser of either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, the product of (1) the outstanding principal
          amount thereof as set forth in the Mortgage Loan Schedule and
          Exception Report multiplied by (2) the applicable Purchase Price
          Percentage for such Mortgage Loan or (y) in the case of CSFBMC
          Mortgage Loans, [*] as set forth in the Mortgage Loan Schedule and
          Exception Report, and

                                        2

<PAGE>

               (B) the product of (1) the Market Value of such Purchased
          Mortgage Loan multiplied by (2) the applicable Purchase Price
          Percentage for such Mortgage Loan; or

          (b) on the Purchase Date, in the case of Purchased Mortgage Loans
     which are One Hundred and Twenty Day Aged Mortgage Loans other than
     Repurchased Mortgage Loans, the lesser of either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, [*]% of the outstanding principal amount
          thereof as set forth in the Mortgage Loan Schedule and Exception
          Report or (y) in the case of CSFBMC Mortgage Loans, [*] as set forth
          in the Mortgage Loan Schedule and Exception Report, and

               (B) the product of (1) the Market Value of such Purchase Mortgage
          Loan multiplied by (2) the applicable Purchase Price Percentage for
          such Mortgage Loan; or

          (c) on the Purchase Date, in the case of Purchased Mortgage Loans
     which are One Hundred and Fifty Day Aged Mortgage Loans other than
     Repurchased Mortgage Loans, the lesser of either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, [*]% of the outstanding principal amount
          thereof as set forth in the Mortgage Loan Schedule and Exception
          Report or (y) in the case of CSFBMC Mortgage Loans, [*] as set forth
          in the Mortgage Loan Schedule and Exception Report, and

               (B) the product of (1) the Market Value of such Purchase Mortgage
          Loan multiplied by (2) the applicable Purchase Price Percentage for
          such Mortgage Loan;

          (d) on the Purchase Date, in the case of Purchased Mortgage Loans
     which are Repurchased Mortgage Loans, the lesser of (1) [*]% of the value
     reflected in the most recent BPO, (2) [*]% of the outstanding principal
     balance thereof as set forth in the related Mortgage Loan Schedule
     multiplied by the applicable Purchase Price Percentage or (3) [*]% of the
     Market Value of such Mortgage Loan; and

          (e) on the Purchase Date, in the case of Purchased Mortgage Loans
     which are Increased Purchase Price Mortgage Loans (other than One Hundred
     and Twenty Day Aged Mortgage Loans, One Hundred and Fifty Day Aged Mortgage
     Loans, Repurchased Mortgage Loans or Second Lien Mortgage Loans), the
     lesser of either: (x) the product of (1) the Market Value of such Purchased
     Mortgage Loan multiplied by (2) the applicable Purchase Price Percentage
     for such Increased Purchase Price Mortgage Loan or (y) the product of (1)
     the applicable Purchase Price Percentage of such Increased Purchase Price
     Mortgage Loan multiplied by (2) the outstanding principal amount thereof as
     set forth on the related Mortgage Loan Schedule;

                                        3

<PAGE>

          (f) after the Purchase Date, except where Buyer and a Seller agree
     otherwise, the amount determined under the preceding clauses (a), (b), (c),
     (d) or (e) decreased by the amount of any cash transferred by a Seller to
     Buyer pursuant to Section 4(c) hereof or applied to reduce the Sellers'
     obligations under clause (ii) of Section 4(b) hereof.

          (d) Section 2 of the Existing Repurchase Agreement is hereby
     temporarily amended by deleting the definition of "Purchase Price
     Percentage" in its entirety and replacing it with the following language,
     which amendment shall be effective solely during the Increased Maximum
     Aggregate Purchase Price Period:

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

          (a) [*]% with respect to Purchased Mortgage Loans that are One Hundred
     and Fifty Day Aged Mortgage Loans;

          (b) [*]% with respect to Purchased Mortgage Loans that are One Hundred
     and Twenty Day Aged Mortgage Loans;

          (c) [*]% with respect to Purchased Mortgage Loans that are Second Lien
     Mortgage Loans (other than Aged Loans);

          (d) [*]% with respect to Purchased Mortgage Loans that are Sub-Prime
     Mortgage Loans (other than Aged Loans and Second Lien Mortgage Loans);

          (e) [*]% with respect to Purchased Mortgage Loans that are Alt A
     Mortgage Loans (other than Aged Loans and Second Lien Mortgage Loans);

          (f) [*]% with respect to Purchased Mortgage Loans that are Conforming
     Mortgage Loans (other than Aged Loans and Second Lien Mortgage Loans);

          (g) [*]% with respect to Purchased Mortgage Loans that are Increased
     Purchase Price Mortgage Loans (other than Aged Loans and Second Lien
     Mortgage Loans); and

          (h) with respect to Purchased Mortgage Loans that are Exception
     Mortgage Loans, a percentage to be determined by Buyer in its sole
     discretion.

          1.2 Program; Initiation of Transactions. Section 3(e) of the Existing
Repurchase Agreement is hereby temporarily amended by adding the following
language after the first sentence thereof, which amendment shall be effective
solely during the Increased Maximum Aggregate Purchase Price Period:

          "Notwithstanding the foregoing, for each Mortgage Loan subject to a
Transaction, Buyer shall be entitled to subtract from the actual proceeds
remitted to Sellers, and is hereby instructed and authorized to deposit into the
account set forth in Section 9 hereof an amount equal to the excess if any, of
(i) the Liquidity Reserve Minimum, taking into account the Transaction to be
entered into, over (ii) the Liquidity Reserve Amount (the "Incremental

                                        4

<PAGE>

Liquidity Reserve Amount"); provided that, by written notice by the Sellers to
the Buyer, the Sellers may elect to apply any Incremental Liquidity Reserve
Amount deposited pursuant to this Section against the Purchase Price deemed to
be paid by Buyer to Sellers hereunder.

          The Sellers shall at all times maintain an amount equal to or greater
than the Liquidity Reserve Minimum in the account set forth in Section 9 hereof.
In the event that, at any time, the Liquidity Reserve Amount is less than the
Liquidity Reserve Minimum, Sellers shall remit funds to the account set forth in
Section 9 hereof within one Business Day such that the Liquidity Reserve Amount
is greater or equal to the Liquidity Reserve Minimum. Without limiting the
Buyer's rights under this Agreement, in the event that Sellers fail to pay any
amount due to the Buyer hereunder, the Buyer may, in its sole discretion,
withdraw funds on deposit in the account set forth in Section 9 hereof in order
to pay itself such amounts then due."

          SECTION 2. Permanent Amendment; Definitions.

          (a) Section 2 of the Existing Repurchase Agreement is hereby amended
     by deleting the definition of "Adjusted Tangible Net Worth" in its entirety
     and replacing it with the following language:

          "Adjusted Tangible Net Worth" means, for any Person, such Person's Net
Worth plus Subordinated Debt (provided that Subordinated Debt shall not be taken
into account to the extent that it would cause Adjusted Tangible Net Worth to be
comprised of greater than 25% Subordinated Debt), minus all intangible assets,
including capitalized servicing rights, goodwill, patents, trade names,
trademarks, copyrights, franchises, any organizational expenses, deferred
expenses, prepaid expenses, prepaid assets, receivables from shareholders,
Affiliates or employees, and any other asset as shown as an intangible asset on
the balance sheet of such Person on a consolidated basis as determined at a
particular date in accordance with GAAP.

          (b) Section 2 of the Existing Repurchase Agreement is hereby amended
     by inserting after the first sentence of the definition of "Exception
     Mortgage Loan" the following language:

          "Buyer's approval of a Mortgage Loan as an Exception Mortgage Loan
shall expire on the earlier of (a) the date set forth by the Buyer in the
written notice that such Mortgage Loan is approved as an Exception Mortgage Loan
(an "Exception Notice") or (b) the occurrence of any additional event, other
than that set forth in the Exception Notice, which would cause the Mortgage Loan
to become ineligible for purchase hereunder."

          (c) Section 2 of the Existing Repurchase Agreement is hereby amended
     by adding the following clause (xiv) at the end of the definition of
     "Market Value":

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

                                        5

<PAGE>

          SECTION 3. Conditions Precedent. This Amendment shall become effective
on January 2, 2004 (the "Amendment Effective Date"), subject to the satisfaction
of the following conditions precedent:

          3.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory
to the Buyer in form and substance:

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller; and

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

          SECTION 4. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 5. 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 6. Counterparts. This Amendment may be executed by each of the
parties hereto on any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument.

          SECTION 7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                                        6

<PAGE>

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

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

                                        By: /s/ Jeffrey S. Detwiler
                                            ------------------------------------
                                            Name: Jeffrey S. Detwiler
                                            Title: President

Seller:                                 NLC, INC.,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name:
                                            Title:

Seller:                                 FIRST NLC FINANCIAL SERVICES, LLC,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name:
                                            Title:

<PAGE>

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 6
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 6, dated as of July 28, 2003 (this "Amendment"), between
CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer") and NLC, INC.
and FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                    RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001, as amended by Amendment No.
1, dated as of May 2, 2002, Amendment No. 2, dated as of September 3, 2002,
Amendment No. 3, dated as of December 19, 2002, Amendment No. 4, dated as of
March 31, 2003 and Amendment No. 5, dated as of May 28, 2003 (the "Existing
Repurchase Agreement"; as amended by this Amendment, the "Repurchase
Agreement"). Capitalized terms used but not otherwise defined herein shall have
the meanings given to them in the Existing Repurchase Agreement.

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

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

          SECTION 1. Definitions. Section 2 of the Existing Repurchase Agreement
is hereby amended as follows:

          (a) Section 2 of the Existing Repurchase Agreement is hereby amended
by deleting the definition of "Adjusted Tangible Net Worth" in its entirety and
replacing it with the following language:

          ""Adjusted Tangible Net Worth" means, for any Person, such Person's
Net Worth plus 1% of the outstanding servicing portfolio balance of such Person
plus Subordinated Debt (provided that Subordinated Debt shall not be taken into
account to the extent that it would cause Adjusted Tangible Net Worth to be
comprised of greater than 25% Subordinated Debt), minus all intangible assets,
including capitalized servicing rights, goodwill, patents, tradenames,
trademarks, copyrights, franchises, any organizational expenses, deferred
expenses, prepaid expenses, prepaid assets, receivables from shareholders,
Affiliates or employees, and any other asset as shown as an intangible asset on
the balance sheet of such Person on a consolidated basis as determined at a
particular date in accordance with GAAP."

          (b) Section 2 of the Existing Repurchase Agreement is hereby amended
by deleting the definition of "Fairbanks" in its entirety.

                                       1

<PAGE>

          (c) Section 2 of the Existing Repurchase Agreement is hereby amended
by deleting the definition of "High Cost Mortgage Loan" in its entirety and
replacing it with the following language:

          ""High Cost Mortgage Loan" means a Mortgage Loan classified as (a) a
"high cost" loan under the Home Ownership and Equity Protection Act of 1994 or
(b) a "high cost," "threshold,' "covered," or "predatory" loan under any other
applicable state, federal or local law (or a similarly classified loan using
different terminology under a law imposing heightened regulatory scrutiny or
additional legal liability for residential mortgage loans having high interest
rates, points and/or fees)."

          (d) Section 2 of the Existing Repurchase Agreement is hereby amended
by deleting clauses (ix) and (xi) of the definition of "Market Value" in their
entirety and replacing them with the following language:

          "(ix) when the Purchase Price for such Purchased Mortgage Loan is
added to other Purchased Mortgage Loans, the aggregate Purchase Price of all One
Hundred and Twenty Day Aged Mortgage Loans exceeds $5.0 million;"

          "(xi) when the Purchase Price for such Purchased Mortgage Loan is
added to other Purchased Mortgage Loans, the aggregate Purchase Price of all
Second Lien Mortgage Loans that are Purchased Mortgage Loans exceeds $7.5
million; or"

          (e) Section 2 of the Existing Repurchase Agreement is hereby amended
by deleting the definition of "Maximum Aggregate Purchase Price" in its entirety
and replacing it with the following language:

          ""Maximum Aggregate Purchase Price" means SEVENTY FIVE MILLION DOLLARS
($75,000,000)."

          (f) Section 2 of the Existing Repurchase Agreement is hereby amended
     by deleting the definition of "Servicer" in its entirety and replacing it
     with the following language:

          ""Servicer" means either First NLC or any other servicer approved by
Buyer in its sole discretion."

          (g) Section 2 of the Existing Repurchase Agreement is hereby amended
     by deleting the definition of "Termination Date" in its entirety and
     replacing it with the following language:

          ""Termination Date" means the earlier of July 27, 2004 and (b) the
date of the occurrence and continuance of an Event of Default."

          SECTION 2. Covenants. Section 14 of the Existing Repurchase Agreement
is hereby amended by deleting subclause (a) in its entirety and replacing it
with the following:

                                       2

<PAGE>

          "Adjusted Tangible Net Worth. First NLC shall maintain an Adjusted
Tangible Net Worth of at least $10 million."

          SECTION 3. Margin Deficit. Section 6 of the Existing Repurchase
Agreement is hereby amended by adding the following subsection (c) thereto:

          "c. In the event that a Margin Deficit exists with respect to any
Purchased Mortgage Loan, Buyer may retain any funds received by it to which the
Seller would otherwise be entitled hereunder, which funds (i) shall be held by
Buyer against the related Margin Deficit and (ii) may be applied by Buyer
against any Purchased Mortgage Loan for which the related Margin Deficit
remains otherwise unsatisfied. Notwithstanding the foregoing, the Buyer retains
the right, in its sole discretion, to make a Margin Call in accordance with the
provisions of this Section 6."

          SECTION 4. Representations and Warranties. Section 13(a) of the
Existing Repurchase Agreement is hereby amended by adding the following
subclauses (25) and (26) at the end thereof:

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

          (26) Plan Assets. Seller is not an employee benefit plan as defined in
Section 3 of Title I of ERISA, or a plan described in Section 4975(e)(1) of the
Code, and the Purchased Mortgage Loans are not "plan assets" within the meaning
of 29 CFR (S)2510.3-101 in the Seller's hands."

          SECTION 5. Section 14 of the Existing Repurchase Agreement is hereby
amended by adding the following clause (cc) at the end thereof:

          "(cc) Plan Assets. Seller shall not be an employee benefit plan as
defined in Section 3 of Title I of ERISA, or a plan described in Section
4975(e)(l) of the Code and the Seller shall not use "plan assets" within the
meaning of 29 CFR (S)2510.3-101 to engage in this Repurchase Agreement or any
Transaction hereunder."

          SECTION 6. Section 15(g) of the Existing Master Repurchase Agreement
is hereby amended by deleting it in its entirety and replacing it with the
following:

          "(g) Breach of Financial Representation or Covenant or Obligation. A
breach by any Seller of any of the representations, warranties or covenants or
obligations set forth in Sections l3(a)(l), 13(a)(7), 13(a)(12), 13(a)(19),
13(a)(23), 14a, 14b, 14d, 14e, 14r, 14v, 14w, 14bb or 14cc of this Agreement."

          SECTION 7. Section 32 of the Existing Repurchase Agreement is hereby
amended by adding the following sentence at the end thereof:

                                       3

<PAGE>

          "Notwithstanding the foregoing or anything to the contrary contained
herein or in any other Program Agreement, the parties hereto may disclose to any
and all Persons, without limitation of any kind, the federal income tax
treatment of the Transactions, any fact relevant to understanding the federal
tax treatment of the Transactions, and all materials of any kind (including
opinions or other tax analyses) relating to such federal income tax treatment;
provided no Seller may disclose the name of or identifying information with
respect to Buyer or Agent or any pricing terms (including, without limitation,
the Pricing Rate, Purchase Price Percentage and Purchase Price) or other
nonpublic business or financial information (including any sublimits and
financial covenants) that is unrelated to the purported or claimed federal
income tax treatment of the Transactions and is not relevant to understanding
the purported or claimed federal income tax treatment of the Transactions,
without the prior written consent of the Buyer."

          SECTION 8. Schedules. Representation and Warranty (yy) in Schedule 1
of the Existing Repurchase Agreement is hereby amended by deleting it in its
entirety and replacing it with the following:

          "(yy) Predatory Lending Regulations; High Cost Loans. None of the
Mortgage Loans are classified as High Cost Mortgage Loans."

          SECTION 9. Exhibits. Exhibit D to the Existing Repurchase Agreement is
hereby amended by deleting it in its entirety and replacing it with Exhibit A to
this Amendment.

          SECTION 10. Conditions Precedent. This Amendment shall become
effective on July 28, 2003 (the "Amendment Effective Date"), subject to the
satisfaction of the following conditions precedent:

          10.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory
to the Buyer in form and substance:

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller; and

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

          SECTION 11. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 12. 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.

                                       4

<PAGE>

          SECTION 13. 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 14. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                                       5

<PAGE>

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

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

                                        By: /s/ Illegible
                                            ------------------------------------
                                            Name:
                                            Title: Managing Director

Seller:                                 NLC, INC.,
                                        as Seller

                                        By: /s/ Neal Henschel
                                            ------------------------------------
                                            Name: Neal Henschel
                                            Title: CEO

Seller:                                 FIRST NLC FINANCIAL SERVICES, LLC,
                                        as Seller

                                        By: /s/ Neal Henschel
                                            ------------------------------------
                                            Name: Neal Henschel
                                            Title: CEO

<PAGE>

                          EXHIBIT A TO AMENDMENT NO. 6

                                                                       EXHIBIT D

                        OFFICER'S COMPLIANCE CERTIFICATE

          I,                              , do hereby certify that I am duly
             -----------------------------
elected, qualified and authorized officer of First NLC Financial Services, LLC
and NLC, Inc. ("Sellers"). This Certificate is delivered to you in connection
with Section 17b of the Master Repurchase Agreement dated as of December 20,
2001, among Sellers and Credit Suisse First Boston Mortgage Capital LLC (the
"Agreement"). I hereby certify that, as of the date of the financial statements
attached hereto and as of the date hereof, each Seller is and has been in
compliance with all the terms of the Agreement and, without limiting the
generality of the foregoing, I certify that:

          (a) Adjusted Tangible Net Worth. For each quarter commencing after
     December 31, 2000, First NLC has maintained an Adjusted Tangible Net Worth
     greater than $10 million. A detailed summary of the calculation of First
     NLC's actual Adjusted Tangible Net Worth is provided in Schedule 1 hereto.

          (b) Indebtedness to Adjusted Tangible Net Worth Ratio. For each
     quarter commencing after December 31, 2000, First NLC's ratio of
     consolidated Indebtedness to consolidated Adjusted Tangible Net Worth has
     not exceeded 20:1.

          (c) Maintenance of Profitability. First NLC has not permitted, for any
     Test Period, Net Income for such Test Period, before income taxes for such
     Test Period and distributions made during such Test Period, to be less than
     $1.00.

          (d) Insurance. Each Seller or its Affiliates, has maintained, for such
     Seller and its Subsidiaries, insurance coverage with respect to employee
     dishonesty, forgery or alteration, theft, disappearance and destruction,
     robbery and safe burglary, property (other than money and securities) and
     computer fraud or an aggregate amount of at least $            . The actual
                                                        ------------
     amount of such coverage is $             .
                                 -------------

          (e) Financial Statements. The financial statements attached hereto are
     accurate and complete, accurately reflect the financial condition of First
     NLC, and do not omit any material fact as of the date(s) thereof.

          (f) Documentation. Each Seller has performed the documentation
     procedures required by its operational guidelines with respect to
     endorsements and assignments, including the recordation of assignments, or
     has verified that such documentation procedures have been performed by a
     prior holder of such Mortgage Loan.

          (g) Compliance. Each Seller has observed or performed in all material
     respects all of its covenants and other agreements, and satisfied every
     condition, contained in the Agreement and the other Program Agreements to
     be observed, performed and satisfied by it. [If a covenant or other
     agreement or condition has not been

                                    Ex. A-l

<PAGE>

     complied with by a Seller, such Seller shall describe such lack of
     compliance and provide the date of any related waiver thereof.]

          (h) Regulatory Action. Neither Seller is currently under investigation
     or, to best of the related Seller's knowledge, no investigation by any
     federal, state or local government agency is threatened. Neither Seller has
     been the subject of any government investigation which has resulted in the
     voluntary or involuntary suspension of a license, a cease and desist
     order, or such other action as could adversely impact the related Seller's
     business. [If so, the related Seller shall describe the situation in
     reasonable detail and describe the action that such Seller has taken or
     proposes to take in connection therewith.]

          (i) No Default. No Default or Event of Default has occurred or is
     continuing. [If any Default or Event of Default has occurred and is
     continuing, the related Seller shall describe the same in reasonable detail
     and describe the action such Seller has taken or proposes to take with
     respect thereto, and if such Default or Event of Default has been expressly
     waived by Buyer in writing, such Seller shall describe the Default or Event
     of Default and provide the date of the related waiver.]

          (j) Indebtedness. All Indebtedness (other than Indebtedness evidenced
     by the Repurchase Agreement) of First NLC existing on the date hereof is
     listed on Schedule 2 hereto.

          (k) Purchased Mortgage Loans. Attached hereto as Schedule 3 is a true
     and correct list of all Mortgage Loans purchased by Buyer and held by
     Custodian pending repurchase.

          (l) Originations. Attached hereto as Schedule 4 is a true and correct
     summary of all Mortgage Loans originated by Buyer during the calendar
     quarter ending on [DATE].

                                    Ex. A-2

<PAGE>

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

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                    Ex. A-3

<PAGE>

                 SCHEDULE 1 TO OFFICER'S COMPLIANCE CERTIFICATE

                       CALCULATIONS OF FINANCIAL COVENANTS
                         As of the quarter ended [Date]

--------------------------------------------------------------------------------
I.      Adjusted Tangible Net Worth
--------------------------------------------------------------------------------
1.      Net Worth (book)                                             $
--------------------------------------------------------------------------------
        Plus:
--------------------------------------------------------------------------------
2.      Subordinated Debt (maturity > CSFB line maturity)            $
--------------------------------------------------------------------------------
3.      1% of outstanding servicing portfolio balance                $
--------------------------------------------------------------------------------

I.(a)   Total of items 1-3                                           $
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
        Less:
--------------------------------------------------------------------------------
4.      Capitalized servicing balance                                $
--------------------------------------------------------------------------------
5.      Goodwill                                                     $
--------------------------------------------------------------------------------
6.      Receivables or advances due from shareholders,
        affiliates, employees or related parties                     $
--------------------------------------------------------------------------------
7.      Trademarks                                                   $
--------------------------------------------------------------------------------
8.      Capitalized organizational expenses                          $
--------------------------------------------------------------------------------
9.      Copyrights                                                   $
--------------------------------------------------------------------------------
10.     Tradenames                                                   $
--------------------------------------------------------------------------------
11.     Restricted Cash                                              $
--------------------------------------------------------------------------------
12.     Deferred Charges                                             $
--------------------------------------------------------------------------------
13.     Prepaid assets                                               $
--------------------------------------------------------------------------------
14.     Investments in related entities, partnerships                $
--------------------------------------------------------------------------------
15.     Any other intangible assets                                  $
--------------------------------------------------------------------------------

I.(b)   Total of items 4-15                                          $
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
I.(c)   Actual Adjusted Tangible Net Worth (a minus b)               $
--------------------------------------------------------------------------------
        Adjusted Tangible Net Worth Covenant                         $
--------------------------------------------------------------------------------
        Compliance?                                                  Yes/No
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
II.     Leverage Ratio
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
        Total Debt divided by Adjusted Tangible Net Worth - Actual   xx.x
--------------------------------------------------------------------------------
        Leverage Covenant                                            xx.x
--------------------------------------------------------------------------------
        Compliance?                                                  Yes/No
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                                     Ex. A-4

<PAGE>

                 SCHEDULE 2 TO OFFICER'S COMPLIANCE CERTIFICATE

                  INDEBTEDNESS as of
                                     ------------------------

--------------------------------------------------------------------------------
                                                               OUTSTANDING
          LENDER                 TOTAL COMMITMENT             INDEBTEDNESS
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                                     Ex. A-5

<PAGE>

                 SCHEDULE 3 TO OFFICER'S COMPLIANCE CERTIFICATE

                            PURCHASED MORTGAGE LOANS

                                     Ex. A-6

<PAGE>

                   SCHEDULE 4 TO OFFICER'S COMPLIANCE CERTIFICATE

                       OVERALL MORTGAGE LOAN ORIGINATIONS

--------------------------------------------------------------------------------
                                    TOTAL NUMBER OF          AGGREGATE PRINCIPAL
                                    MORTGAGE LOANS           BALANCE OF MORTGAGE
     MORTGAGE LOAN TYPE               ORIGINATED              LOANS ORIGINATED
--------------------------------------------------------------------------------
    Alt-A Mortgage Loans
--------------------------------------------------------------------------------
Conforming Mortgage Loans
--------------------------------------------------------------------------------
   Jumbo Mortgage Loans
--------------------------------------------------------------------------------
Second Lien Mortgage Loans
--------------------------------------------------------------------------------
 Sub-Prime Mortgage Loans
--------------------------------------------------------------------------------

                                    Ex. A-7

<PAGE>

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 5
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 5, dated as of May 28, 2003 (this "Amendment"), between
CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer") and NLC, INC. and
FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                       RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001, as amended by Amendment No.
1, dated as of May 2, 2002, Amendment No. 2, dated as of September 3, 2002,
Amendment No. 3, dated as of December 19, 2002 and Amendment No. 4, dated as of
March 31, 2003 (the "Existing Repurchase Agreement"; as amended by this
Amendment, the "Repurchase Agreement"). Capitalized terms used but not otherwise
defined herein shall have the meanings given to them in the Existing Repurchase
Agreement.

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

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

          SECTION 1. Increased Maximum Aggregate Purchase Price Period. For
purposes of this Amendment, this Section 1 will be effective only during the
Increased Maximum Aggregate Purchase Price Period.

          (a) Section 2 of the Existing Repurchase Agreement is hereby
temporarily amended by adding the following defined terms, which amendment shall
be effective solely during the Increased Maximum Aggregate Purchase Price Period
(as defined below):

          "Increased Maximum Aggregate Purchase Price Period" shall mean the
period beginning on May 28, 2003 through and including June 5, 2003."

          (b) Section 2 of the Existing Repurchase Agreement is hereby
     temporarily amended by deleting the definition of "Maximum Aggregate
     Purchase Price" in its entirety and replacing it with the following
     language, which amendment shall be effective solely during the Increased
     Maximum Aggregate Purchase Price Period:

          "Maximum Aggregate Purchase Price" means $60,000,000 (SIXTY MILLION
DOLLARS).

          SECTION 2. Conditions Precedent. This Amendment shall become effective
on May 28, 2003 (the "Amendment Effective Date"), subject to the satisfaction of
the following conditions precedent:

                                        1

<PAGE>

          2.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory
to the Buyer in form and substance:

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller; and

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

          SECTION 3. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 4. 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 5. Counterparts. This Amendment may be executed by each of the
parties hereto on any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument.

          SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                                       2

<PAGE>

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

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

                                        By: /s/ Illegible
                                            ------------------------------------
                                            Name:
                                            Title:

Seller:                                 NLC, INC.,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name:
                                            Title:

Seller:                                 FIRST NLC FINANCIAL SERVICES, LLC,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name:
                                            Title:

                                        1

<PAGE>

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 4
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 4, dated as of March 31, 2003 (this "Amendment"),
between CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer'") and NLC,
INC. and FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                    RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001, as amended by Amendment No.
1, dated as of May 2, 2002, Amendment No. 2, dated as of September 3, 2002 and
Amendment No. 3, dated as of December 19, 2002 (the "Existing Repurchase
Agreement"; as amended by this Amendment, the "Repurchase Agreement").
Capitalized terms used but not otherwise defined herein shall have the meanings
given to them in the Existing Repurchase Agreement.

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

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

          SECTION 1. Definitions. Section 2 of the Existing Repurchase Agreement
is hereby amended by deleting the definition of "Pricing Rate" and replacing it
with the following:

          "Pricing Rate" means LIBOR plus:

               (a) [*]% with respect to Transactions the subject of which are
          Conforming Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans, Wet-Ink Mortgage Loans or Repurchased Mortgage Loans);

               (b) [*]% with respect to Transactions the subject of which are
          Sub-Prime Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans, Wet-Ink Mortgage Loans or Repurchased Mortgage Loans);

               (c) [*]% with respect to Transactions the subject of which are
          Alt A Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans, Wet-Ink Mortgage Loans or Repurchased Mortgage Loans);

               (d) [*]% with respect to Transactions the subject of which are
          Second Lien Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage
          Loans or Repurchased Mortgage Loans); and

               (e) [*]% with respect to Transactions the subject of which are
          Wet-Ink Mortgage Loans;

                                        1

<PAGE>

               (f) [*]% with respect to Transactions the subject of which are
          Aged Loans (other than Repurchased Mortgage Loans);

               (g) [*]% with respect to Transactions the subject of which are
          Repurchased Mortgage Loans; and

               (h) the rate determined in the sole discretion of Buyer with
          respect to Transactions the subject of which are Exception Mortgage
          Loans.

          The Pricing Rate shall change in accordance with LIBOR, as provided in
Section 5(a); provided, that in the event the daily average aggregate Purchase
Price of all Purchased Mortgage Loans subject to Transactions hereunder exceeds
the Pricing Rate Reduction Threshold in a calendar month, the Pricing Rate for
all Transactions that exceed the Pricing Rate Reduction Threshold shall be
reduced by [*]% for such calendar month, which reduction shall be applied to the
weighted average Pricing Rate and shall be reflected in the Price Differential
due on the next succeeding Price Differential Payment Date.

          SECTION 2. Conditions Precedent. This Amendment shall become effective
on March 31, 2003 (the "Amendment Effective Date"), subject to the satisfaction
of the following conditions precedent:

          2.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory
to the Buyer in form and substance.

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller; and

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

          SECTION 3. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 4. 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 5. Counterparts. This Amendment may be executed by each of the
parties hereto on any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument.

          SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE

                                       2

<PAGE>

STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                                       3

<PAGE>

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

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

                                        By: /s/ Illegible
                                            ------------------------------------
                                            Name: Illegible
                                            Title: Managing Director

Seller:                                 NLC, INC.,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name: Jeffrey M. Henschel
                                            Title: President

Seller:                                 FIRST NLC FINANCIAL SERVICES, LLC,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name: Jeffrey M. Henschel
                                            Title: President

                                       4

<PAGE>

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 3
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 3, dated as of December 19, 2002 (this "Amendment"),
between CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer") and NLC,
INC. and FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                    RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001, as amended by Amendment No.
1, dated as of May 2, 2002 and Amendment No. 2, dated as of September 3, 2002
(the "Existing Repurchase Agreement"; as amended by this Amendment, the
"Repurchase Agreement"). Capitalized terms used but not otherwise defined herein
shall have the meanings given to them in the Existing Repurchase Agreement.

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

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

          SECTION 1. Definitions. Section 2 of the Existing Repurchase Agreement
is hereby amended as follows:

          (a) By inserting the following language at the beginning thereof:

          "All capitalized terms used herein but not defined shall have the
meanings set forth in the Custodial Agreement."

          (b) By deleting the definition of "Alt A Mortgage Loan" in its
     entirety and replacing it with the following:

          "Alt A Mortgage Loan" means a first lien Mortgage Loan originated in
accordance with the criteria established by Buyer for Alt A Mortgage Loans, and
which has a FICO score of at least 600.

          (c) By deleting the definition of "High Cost Mortgage Loan" in its
     entirety and replacing it with the following:

          "High Cost Mortgage Loan" means any Mortgage Loan classified as (a)
"high cost" loans under the Home Ownership and Equity Protection Act of 1994, as
amended or (b) "high cost," "threshold," "covered" or "predatory" loans under
any other applicable state, federal or local law.

                                       1

<PAGE>

          (d) By deleting the definition of "Market Value" in its entirety and
replacing it with the following:

          "Market Value" means, with respect to any Purchased Mortgage Loan as
of any date of determination, the whole-loan servicing released fair market
value of such Purchased Mortgage Loan on such date as determined by Buyer (or an
Affiliate thereof) in its sole discretion. Without limiting the generality of
the foregoing, each Seller acknowledges that (a) in the event that a Purchased
Mortgage Loan is not subject to a Take-out Commitment, Buyer may deem the Market
Value for such Mortgage Loan to be no greater than par and (b) the Market Value
of a Purchased Mortgage Loan may be reduced to zero by Buyer if:

               (i) a breach of a representation, warranty or covenant made by
          either Seller in this Agreement with respect to such Purchased
          Mortgage Loan has occurred and is continuing;

               (ii) such Purchased Mortgage Loan (other than a Repurchased
          Mortgage Loan) is a Non-Performing Mortgage Loan;

               (iii) such Purchased Mortgage Loan has been released from the
          possession of the Custodian under the Custodial Agreement (other than
          to a Takeout Investor pursuant to a Bailee Letter) for a period in
          excess of ten (10) calendar days;

               (iv) such Purchased Mortgage Loan has been released from the
          possession of the Custodian under the Custodial Agreement to a
          Take-out Investor pursuant to a Bailee Letter for a period in excess
          of 45 calendar days;

               (v) such Purchased Mortgage Loan has been subject to a
          Transaction hereunder for a period of greater than (a) 90 days for all
          Mortgage Loans other than Aged Loans or (b) 150 days with respect to
          each Aged Loan;

               (vi) such Purchased Mortgage Loan is a Repurchased Mortgage Loan
          which has been subject to a Transaction hereunder for a period of
          greater than 180 days;

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

               (viii) when the Purchase Price for such Purchased Mortgage Loan
          is added to other Purchased Mortgage Loans, the aggregate Purchase
          Price of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans
          exceeds 35% of the Maximum Aggregate Purchase Price;

               (ix) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all One Hundred and Twenty Day Aged Mortgage Loans exceeds $3.5
          million;

                                       2

<PAGE>

               (x) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all One Hundred and Fifty Day Aged Mortgage Loans exceeds $1.3
          million;

               (xi) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all Second Lien Mortgage Loans that are Purchased Mortgage Loans
          exceeds $5.0 million; or

               (xii) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all Repurchased Mortgage Loans that are Purchased Mortgage Loans
          exceeds $2.5 million; or

               (xiii) such Purchased Mortgage Loan is a Repurchased Mortgage
          Loan for which the Mortgaged Property has been foreclosed upon or has
          been converted to REO Property.

          (e) By deleting the definition of "Post Default Rate" in its entirety
     and replacing it with the following:

          "Post Default Rate" means an annual rate of interest equal to the
greater of (a) the Pricing Rate plus 3% or (b) the Mortgage Interest Rate.

          (f) By deleting the definition of "Pricing Rate Reduction Threshold"
     and replacing it with the following:

          "Pricing Rate Reduction Threshold" means 50% of the Maximum Aggregate
Purchase Price.

          (g) By deleting the definition of "Repurchased Mortgage Loans" and
     replacing it with the following:

          "Repurchased Mortgage Loan" means a Mortgage Loan (a) which is
repurchased by a Seller from DLJ Mortgage Capital, Inc. as a result of a breach
of representations and warranties under the agreed upon terms in which the
claimed breach is not a result of fraud or material misrepresentation of fact by
any party to the Mortgage Loan or consumer credit law violation, (b) where the
claimed breach is expressly identified to Buyer in writing and (c) which is
subject to a Transaction hereunder for no more than 180 days. In no event will a
Repurchased Mortgage Loan be subject to a Transaction hereunder as a
"Repurchased Mortgage Loan" if (i) there is a breach of representation and
warranty in respect of such Repurchased Mortgage Loan other than the breach
identified in writing to the Buyer pursuant to subclause (b) of this definition
or (ii) the related Mortgaged Property has been foreclosed upon or has been
converted to REO Property.

          (h) By deleting the definition of "Servicer" in its entirety and
     replacing it with the following:

                                        3

<PAGE>

          "Servicer" means either First NLC or Fairbanks, or any other servicer
approved by Buyer in its sole discretion.

          (i) By deleting the definition of "Termination Date" and replacing it
     with the following:

          "Termination Date" means the earlier of July 31, 2003 and (b) the date
of the occurrence and continuance of an Event of Default.

          (j) By inserting the following definitions in their proper
     alphabetical order:

          "E&O Insurance" means insurance coverage with respect to employee
errors, omissions, dishonesty, forgery or alteration, theft, disappearance and
destruction, robbery and safe burglary, property (other than money and
securities) and computer fraud in an aggregate amount acceptable to Fannie Mae
and Freddie Mac.

          "Fairbanks" means Fairbanks Capital Corp., a corporation organized and
existing under the laws of the State of Utah, or any successor in interest
thereto.

          SECTION 2. Remedies Upon Default. Section 16(d) of the Existing Master
Repurchase Agreement is hereby amended by adding the phrase "and liquidate all
Repurchase Assets" at the end of the third sentence thereof, and by adding the
following language at the end thereof:

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

          SECTION 3. Reports. Section 17(a) of the Existing Master Repurchase
Agreement is hereby amended by adding the following subclauses (8) and (9) at
the end thereof:

          "(8) as soon as available, and in any event within thirty (30) days of
receipt, copies of relevant portions of all final written Agency, FHA, VA,
Governmental Authority and investor audits, examinations, evaluations,
monitoring reviews and reports of its operations (including those prepared on a
contract basis) which provide for or relate to (i) material corrective action
required, (ii) material sanctions proposed, imposed or required, including
without limitation notices of defaults, notices of termination of approved
status, notices of imposition of supervisory agreements or interim servicing
agreements, and notices of probation, suspension, or non-renewal, or (iii)
"report cards," "grades" or other classifications of the quality of Sellers'
operations."

          "(9) as soon as reasonably possible, notice of any material change in
the existing Indebtedness of either Seller, including without limitation, any
default, renewal, non-renewal, termination, increase in available amount or
decrease in available amount related thereto."

                                        4

<PAGE>

          SECTION 4. Authorizations. The Existing Master Repurchase Agreement is
hereby amended by adding the following Section 37:

          "Authorizations. Any of the persons whose signatures and titles appear
on Schedule 2 are authorized, acting singly for either Seller or the Buyer, as
the case may be, under this Agreement."

          SECTION 5. Schedule 1: Representations and Warranties. The Existing
Master Repurchase Agreement is hereby amended by adding the following paragraph
prior to paragraph (a) of Schedule 1 to the Existing Master Repurchase
Agreement:

          "With respect to each Purchased Mortgage Loan, each Seller jointly and
severally represents and warrants to Buyer that each of the following
representations and warranties are true and correct, except with respect to any
Repurchased Mortgage Loan in which the claimed breach of the representation or
warranty is expressly identified to Buyer in writing pursuant to clause (b) of
the definition of Repurchased Mortgage Loan."

          SECTION 6. Schedule 2: Authorized Representatives. The Existing Master
Repurchase Agreement is hereby amended by adding Schedule 1 of this Amendment as
Schedule 2 to the Existing Master Repurchase Agreement.

          SECTION 7. Conditions Precedent. This Amendment shall become effective
on December 19, 2002 (the "Amendment Effective Date"), subject to the
satisfaction of the following conditions precedent:

          7.1 Delivered Documents. On the Amendment Effective Date, the
 Buyer shall have received the following documents, each of which shall be
 satisfactory to the Buyer in form and substance:

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller;

          (b) evidence that the Seller has added the Buyer as loss payee under
     the Sellers' E&O Insurance policies; and

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

          SECTION 8. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 9. 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.

                                        5

<PAGE>

          SECTION 10. 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 11. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                                        6

<PAGE>

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

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

                                        By: /s/ Illegible
                                            ------------------------------------
                                            Name:
                                            Title: Managing Director

Seller:                                 NLC, INC.,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name:
                                            Title:

Seller:                                 FIRST NLC FINANCIAL SERVICES, LLC,
                                        as Seller

                                        By: /s/ Jeffrey M. Henschel
                                            ------------------------------------
                                            Name:
                                            Title:

                                  Schedule 1-1

<PAGE>

                          SCHEDULE 1 TO AMENDMENT NO. 3

                                   SCHEDULE 2
                           AUTHORIZED REPRESENTATIVES

SELLER NOTICES

                                        Address:
Name:
Telephone:
Facsimile:

SELLER AUTHORIZATIONS

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

       Name                 Title               Signature
-------------------    --------------    -----------------------

JEFFREY M. HENSCHEL    PRESIDENT         /s/ JEFFREY M. HENSCHEL
                                         -----------------------

NEAL HENSCHEL          CHAIRMAN & CEO    /s/ NEAL HENSCHEL
                                         -----------------------

                                  Schedule 1-1

<PAGE>

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 2
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 2, dated as of September 3, 2002 (this "Amendment"),
between CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer") and NLC,
INC. and FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                    RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001, as amended by Amendment No.
1, dated as of May 2, 2002 (the "Existing Repurchase Agreement"; as amended by
this Amendment, the "Repurchase Agreement"). Capitalized terms used but not
otherwise defined herein shall have the meanings given to them in the Existing
Repurchase Agreement.

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

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

          SECTION 1. Definitions. Section 2 of the Existing Repurchase Agreement
is hereby amended as follows:

          (a) The definition of "Aged Loan" is hereby deleted in its entirety
and replaced with the following:

          "Aged Loan" means a One Hundred Twenty Day Aged Mortgage Loan other
than a Repurchased Mortgage Loan or a One Hundred Fifty Day Aged Mortgage Loan
other than a Repurchased Mortgage Loan, as applicable.

          (b) The definition of "Exception Mortgage Loan" is hereby amended by
adding the following language at the end of the first sentence thereof:

          (c) "; provided, however, that the Sellers shall pay to Buyer a fee of
$[*] with respect to any such approval of an Exception Mortgage Loan other than
a Wet-Ink Mortgage Loan and $[*] with respect to any such approval of an
Exception Mortgage Loan which is a Wet-Ink Mortgage Loan provided, that upon 30
day's notice to the Sellers, Buyer may change such Exception Mortgage Loan
approval fee."

          (d) The definition of "Maximum Aggregate Purchase Price" is hereby
deleted in its entirety and replaced with the following:

          ""Maximum Aggregate Purchase Price" means FIFTY MILLION DOLLARS
($50,000,000)."

                                        1

<PAGE>

          (e) The definition of "Market Value" is hereby amended by deleting it
in its entirety and replacing it with the following:

          "Market Value" means, with respect to any Purchased Mortgage Loan as
of any date of determination, the whole-loan servicing released fair market
value of such Purchased Mortgage Loan on such date as determined by Buyer (or an
Affiliate thereof) in its sole discretion. Without limiting the generality of
the foregoing, each Seller acknowledges that (a) in the event that a Purchased
Mortgage Loan is not subject to a Take-out Commitment, Buyer may deem the Market
Value for such Mortgage Loan to be no greater than par and (b) the Market Value
of a Purchased Mortgage Loan may be reduced to zero by Buyer if:

               (i) a breach of a representation, warranty or covenant made by
          either Seller in this Agreement with respect to such Purchased
          Mortgage Loan has occurred and is continuing;

               (ii) such Purchased Mortgage Loan is a Non-Performing Mortgage
          Loan;

               (iii) such Purchased Mortgage Loan has been released from the
          possession of the Custodian under the Custodial Agreement (other than
          to a Takeout Investor pursuant to a Bailee Letter) for a period in
          excess of ten (10) calendar days;

               (iv) such Purchased Mortgage Loan has been released from the
          possession of the Custodian under the Custodial Agreement to a
          Take-out Investor pursuant to a Bailee Letter for a period in excess
          of 45 calendar days;

               (v) such Purchased Mortgage Loan has been subject to a
          Transaction hereunder for a period of greater than (a) 90 days for all
          Mortgage Loans other than Aged Loans or (b) 150 days with respect to
          each Aged Loan;

               (vi) such Purchased Mortgage Loan is a Repurchased Mortgage Loan
          which has been subject to a Transaction hereunder for a period of
          greater than 180 days;

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

               (viii) when the Purchase Price for such Purchased Mortgage Loan
          is added to other Purchased Mortgage Loans, the aggregate Purchase
          Price of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans
          exceeds 35% of the Maximum Aggregate Purchase Price;

               (ix) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all One Hundred and Twenty Day Aged Mortgage Loans exceeds $3.5
          million;

                                        2

<PAGE>

               (x) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all One Hundred and Fifty Day Aged Mortgage Loans exceeds $1.3
          million;

               (xi) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all Second Lien Mortgage Loans that are Purchased Mortgage Loans
          exceeds $5.0 million; or

               (xii) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all Repurchased Mortgage Loans that are Purchased Mortgage Loans
          exceeds $2.5 million."

          (f) The definition of "Mortgage Loan" is hereby amended by inserting
the phrase "Repurchased Mortgage Loan," after "Sub-Prime Mortgage Loan," in the
first line thereof.

          (g) By deleting the definition of "Pricing Rate" in its entirety and
replacing it with the following:

          "Pricing Rate" means LIBOR plus:

               (a) [*]% with respect to Transactions the subject of which are
          Conforming Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans, Wet-Ink Mortgage Loans or Repurchased Mortgage Loans);

               (b) [*]% with respect to Transactions the subject of which are
          Sub-Prime Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans, Wet-Ink Mortgage Loans or Repurchased Mortgage Loans);

               (c) [*]% with respect to Transactions the subject of which are
          Alt A Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans, Wet-Ink Mortgage Loans or Repurchased Mortgage Loans);

               (d) [*]% with respect to Transactions the subject of which are
          Second Lien Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage
          Loans or Repurchased Mortgage Loans); and

               (e) [*]% with respect to Transactions the subject of which are
          Wet-Ink Mortgage Loans;

               (f) [*]% with respect to Transactions the subject of which are
          Aged Loans (other than Repurchased Mortgage Loans);

               (g) [*]% with respect to Transactions the subject of which are
          Repurchased Mortgage Loans; and

                                        3

<PAGE>

               (h) the rate determined in the sole discretion of Buyer with
          respect to Transactions the subject of which are Exception Mortgage
          Loans.

          The Pricing Rate shall change in accordance with LIBOR, as provided in
Section 5(a); provided, that in the event the daily average aggregate Purchase
Price of all Purchased Mortgage Loans subject to Transactions hereunder exceeds
the Pricing Rate Reduction Threshold in a calendar month, the Pricing Rate for
all Transactions that exceed the Pricing Rate Reduction Threshold shall be
reduced by [*]% for such calendar month, which reduction shall be applied to
the weighted average Pricing Rate and shall be reflected in the Price
Differential due on the next succeeding Price Differential Payment Date.

          (h) The definition of "Purchase Price" is hereby amended by deleting
     it in its entirety and replacing it with the following:

          "Purchase Price" means the price at which each Mortgage Loan is
transferred by a Seller to Buyer, which shall equal:

          (a) on the Purchase Date, in the case of Purchased Mortgage Loans
          other than One Hundred and Twenty Day Aged Mortgage Loans, One Hundred
          and Fifty Day Aged Mortgage Loans or Repurchased Mortgage Loans, the
          lesser of either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, the product of (1) the outstanding principal
          amount thereof as set forth in the Mortgage Loan Schedule and
          Exception Report multiplied by (2) the applicable Purchase Price
          Percentage for such Mortgage Loan or (y) in the case of CSFBMC
          Mortgage Loans, [*] as set forth in the Mortgage Loan Schedule and
          Exception Report, and

               (B) the product of (1) the Market Value of such Purchased
          Mortgage Loan multiplied by (2) the applicable Purchase Price
          Percentage for such Mortgage Loan; or

          (b) on the Purchase Date, in the case of Purchased Mortgage Loans
          which are One Hundred and Twenty Day Aged Mortgage Loans other than
          Repurchased Mortgage Loans, the lesser of either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, [*]% of the outstanding principal amount
          thereof as set forth in the Mortgage Loan Schedule and Exception
          Report or (y) in the case of CSFBMC Mortgage Loans, [*] as set forth
          in the Mortgage Loan Schedule and Exception Report, and

               (B) the product of (1) the Market Value of such Purchase Mortgage
          Loan multiplied by (2) the applicable Purchase Price Percentage for
          such Mortgage Loan; or

                                       4

<PAGE>

          (c) on the Purchase Date, in the case of Purchased Mortgage Loans
          which are One Hundred and Fifty Day Aged Mortgage Loans other than
          Repurchased Mortgage Loans, the lesser of either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, [*]% of the outstanding principal amount
          thereof as set forth in the Mortgage Loan Schedule and Exception
          Report or (y) in the case of CSFBMC Mortgage Loans, [*] as set forth
          in the Mortgage Loan Schedule and Exception Report, and

               (B) the product of (1) the Market Value of such Purchase Mortgage
          Loan multiplied by (2) the applicable Purchase Price Percentage for
          such Mortgage Loan; and

               (d) On the Purchase Date, in the case of Purchased Mortgage Loans
          which are Repurchased Mortgage Loans, the lesser of (1) [*]% of the
          value reflected in the most recent BPO, (2) [*]% of the outstanding
          principal balance thereof as set forth in the related Mortgage Loan
          Schedule multiplied by the applicable Purchase Price Percentage or (3)
          [*]% of the Market Value of such Mortgage Loan; and

               (e) after the Purchase Date, except where Buyer and a Seller
          agree otherwise, the amount determined under the preceding clauses
          (a), (b), (c) or (d) decreased by the amount of any cash transferred
          by a Seller to Buyer pursuant to Section 4(c) hereof or applied to
          reduce the Sellers' obligations under clause (ii) of Section 4(b)
          hereof.

          (i) By inserting the following definitions in their proper
          alphabetical order:

          "BPO" means an opinion of the fair market value of a Mortgaged
Property given by a licensed real estate agent or broker which generally
includes three comparable sales and three comparable listings.

          "Pricing Rate Reduction Threshold" means $25,000,000.

          "Repurchased Mortgage Loan" means a Mortgage Loan (a) which is
repurchased by a Seller from DLJ Mortgage Capital, Inc. as a result of a breach
of representations and warranties under the agreed upon terms in which the
claimed breach is not a result of fraud or material misrepresentation of fact by
any party to the Mortgage Loan or consumer credit law violation, (b) where the
claimed breach is expressly identified to Buyer in writing and (c) which is
subject to a Transaction hereunder for no more than 180 days. In no event will a
Repurchased Mortgage Loan be subject to a Transaction hereunder as a
"Repurchased Mortgage Loan" if there is a breach of representation and warranty
in respect of such Repurchased Mortgage Loan other than the breach identified in
writing to the Buyer pursuant to subclause (b) of this definition.

                                        5

<PAGE>

          SECTION 2. Program; Initiation of Transactions. Section 3 of the
Existing Master Repurchase Agreement is hereby amended by inserting the
following language at the end of subclause (b):

          SECTION 3. "In the event the Mortgage Loan Schedule provided by a
Seller contains erroneous computer data, is not formatted properly or the
computer fields are otherwise improperly aligned, Buyer shall provide written or
electronic notice to such Seller describing such error and Seller may either (i)
give Buyer written or electronic authority to correct the computer data,
reformat such Mortgage Loan Schedule or properly align the computer fields or
(ii) correct the computer data, reformat the Mortgage Loan Schedule or properly
align the computer fields itself and resubmit the Mortgage Loan Schedule as
required herein. In the event that a Seller gives Buyer authority to correct the
computer data, reformat the Mortgage Loan Schedule or properly align the
computer fields, such Seller shall pay $10 per change and any other direct
expenses incurred by Buyer; provided, that upon 30 day's notice to the Sellers,
Buyer may change such computer correction fee. The Sellers shall hold Buyer
harmless for such correction, reformatting or realigning, as applicable, except
as otherwise expressly provided herein."

          SECTION 4. Covenants. Section 14 of the Existing Repurchase Agreement
is hereby amended as follows:

          (a) By deleting subclause (a) in its entirety and replacing it with
     the following:

          "Adjusted Tangible Net Worth. First NLC shall maintain an Adjusted
Tangible Net Worth of at least $7.5 million."

          (b) By deleting subclause (w) in its entirety and replacing it with
     the following:

          "Indebtedness. Sellers shall not incur any additional material
Indebtedness in excess of $100,000 in the aggregate (other than (i) the Existing
Indebtedness in amounts not to exceed the amounts specified on Exhibit J hereto,
(ii) usual and customary accounts payable for a mortgage company and (iii)
equipment and office leases related to the business of the Sellers) without the
prior written consent of Buyer."

          SECTION 5. Conditions Precedent. This Amendment shall become effective
on September 3, 2002 (the "Amendment Effective Date"), subject to the
satisfaction of the following conditions precedent:

          5.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory
to the Buyer in form and substance:

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller;

                                        6

<PAGE>

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

          SECTION 6. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 7. 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 8. 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 9. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                                       7

<PAGE>

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 1
                         TO MASTER REPURCHASE AGREEMENT

          Amendment No. 1, dated as of May 2, 2002 (this "Amendment"), between
CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer") and NLC, INC. and
FIRST NLC FINANCIAL SERVICES, LLC (collectively, the "Sellers").

                                    RECITALS

          The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of December 20, 2001 (the "Existing Repurchase
Agreement"; as amended by this Amendment, the "Repurchase Agreement").
Capitalized terms used but not otherwise defined herein shall have the meanings
given to them in the Existing Repurchase Agreement.

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

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

          SECTION 1. Definitions.

          (a) Section 2 of the Existing Repurchase Agreement is hereby
temporarily amended by adding the following defined term, which amendment shall
be effective solely during the Increased Maximum Aggregate Purchase Price Period
(as defined below):

          ""Increased Maximum Aggregate Purchase Price Period" shall mean the
          period beginning on the date hereof through and including June 30,
          2002."

          (b) Section 2 of the Existing Repurchase Agreement is hereby
temporarily amended by deleting the definition of "Maximum Aggregate Purchase
Price" in its entirety and replacing it with the following language, which
amendment shall be effective solely during the Increased Maximum Aggregate
Purchase Price Period:

          ""Maximum Aggregate Purchase Price" means THIRTY FIVE MILLION DOLLARS
($35,000,000)."

          (c) Section 2 of the Existing Repurchase Agreement is hereby
temporarily amended by deleting the definition of "Market Value" in its entirety
and replacing it with the following language, which amendment shall be effective
solely during the Increased Maximum Aggregate Purchase Price Period:

          "Market Value" means, with respect to any Purchased Mortgage Loan as
of any date of determination, the whole-loan servicing released fair market
value of such Purchased Mortgage Loan on such date as determined by Buyer (or an
Affiliate thereof) in its sole

                                        1

<PAGE>

discretion. Without limiting the generality of the foregoing, each Seller
acknowledges that (a) in the event that a Purchased Mortgage Loan is not subject
to a Take-out Commitment, Buyer may deem the Market Value for such Mortgage Loan
to be no greater than par and (b) the Market Value of a Purchased Mortgage Loan
may be reduced to zero by Buyer if:

               (i) a breach of a representation, warranty or covenant made by
          either Seller in this Agreement with respect to such Purchased
          Mortgage Loan has occurred and is continuing;

               (ii) such Purchased Mortgage Loan is a Non-Performing Mortgage
          Loan;

               (iii) such Purchased Mortgage Loan has been released from the
          possession of the Custodian under the Custodial Agreement (other than
          to a Takeout Investor pursuant to a Bailee Letter) for a period in
          excess of ten (10) calendar days;

               (iv) such Purchased Mortgage Loan has been released from the
          possession of the Custodian under the Custodial Agreement to a
          Take-out Investor pursuant to a Bailee Letter for a period in excess
          of 45 calendar days;

               (v) such Purchased Mortgage Loan has been held by the Custodian
          for the benefit of Buyer (in its capacity as Buyer hereunder or as a
          secured lender) for a period of greater than (a) 90 days for all
          Mortgage Loans other than Aged Loans or (b) 150 days with respect to
          each Aged Loan;

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

               (vii) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans
          exceeds $12.25 million;

               (viii) when the Purchase Price for such Purchased Mortgage Loan
          is added to other Purchased Mortgage Loans, the aggregate Purchase
          Price of all One Hundred and Twenty Day Aged Mortgage Loans exceeds
          $3.5 million;

               (ix) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all One Hundred and Fifty Day Aged Mortgage Loans exceeds $1.3
          million;

               (x) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all Second Lien Mortgage Loans that are Purchased Mortgage Loans
          exceeds $3.5 million."

                                        2

<PAGE>

          SECTION 2. Conditions Precedent. This Amendment shall become effective
on May 2, 2002 (the "Amendment Effective Date"), subject to the satisfaction of
the following conditions precedent:

          2.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory
to the Buyer in form and substance:

          (a) this Amendment, executed and delivered by a duly authorized
     officer of the Buyer and each Seller;

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

          SECTION 3. Representations and Warranties. The Sellers hereby
represent and warrant to the Buyer that they are in compliance with all the
terms and provisions set forth in the Repurchase Agreement on their part to be
observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Repurchase Agreement.

          SECTION 4. 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 5. Counterparts. This Amendment may be executed by each of the
parties hereto on any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument.

          SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                                        3

<PAGE>

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

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

                                        By: /s/ Illegible
                                            ------------------------------------
                                            Name:
                                            Title:

Seller:                                 NLC, INC.,
                                        as Seller

                                        By: /s/ JEFFREY M. HENSCHEL
                                            ------------------------------------
                                            Name: JEFFREY M. HENSCHEL
                                            Title: EXECUTIVE VICE PRESIDENT

Seller:                                 FIRST NLC FINANCIAL SERVICES, LLC,
                                        as Seller

                                        By: /s/ JEFFREY M. HENSCHEL
                                            ------------------------------------
                                            Name: JEFFREY M. HENSCHEL
                                            Title: EXECUTIVE VICE PRESIDENT

                                        1

<PAGE>

================================================================================

                                                               EXECUTION VERSION

                           MASTER REPURCHASE AGREEMENT

     CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC, as buyer ("Buyer") and

           FIRST NLC FINANCIAL SERVICES, LLC, as seller ("Seller") and

                NLC, Inc., as seller ("Seller" and together with
                 First NLC Financial Services, LLC, "Sellers")

                             Dated December 20, 2001

================================================================================

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

1.    Applicability............................................................1

2.    Definitions..............................................................1

3.    Program; Initiation of Transactions.....................................18

4.    Repurchase..............................................................19

5.    Price Differential......................................................20

6.    Margin Maintenance......................................................20

7.    Income Payments.........................................................21

8.    Security Interest.......................................................22

9.    Payment and Transfer....................................................22

10.   Conditions Precedent....................................................23

11.   Program; Costs..........................................................25

12.   Servicing...............................................................26

13.   Representations and Warranties..........................................27

14.   Covenants...............................................................36

15.   Events of Default.......................................................39

16.   Remedies Upon Default...................................................38

17.   Reports.................................................................40

18.   Repurchase Transactions.................................................42

19.   Single Agreement........................................................42

20.   Notices and Other Communications........................................43

21.   Entire Agreement; Severability..........................................44

22.   Non assignability.......................................................44

                                       -i-

<PAGE>

23.   Set-off.................................................................45

24.   Binding Effect; Governing Law; Jurisdiction.............................45

25.   No Waivers, Etc.........................................................45

26.   Intent..................................................................46

27.   Disclosure Relating to Certain Federal Protections......................46

28.   Power of Attorney.......................................................47

29.   Buyer May Act Through Affiliates........................................47

30.   Indemnification; Obligations............................................47

31.   Counterparts............................................................48

32.   Confidentiality.........................................................48

33.   Recording of Communications.............................................48

34.   Non-Utilization Fee.....................................................48

35.   Periodic Due Diligence Review...........................................48

36.   Joint and Several Obligations...........................................49

                                      -ii-

<PAGE>

SCHEDULES

Schedule 1 - Representations and Warranties with Respect to Purchased Mortgage
Loans

ANNEXES

Annex I - Non-Utilization Fee Formula

EXHIBITS

Exhibit A - Form of Transaction Request

Exhibit B - Form of Purchase Confirmation

Exhibit C - Form of Mortgage Loan Schedule and Exception Report

Exhibit D - Form of Officer's Compliance Certificate

Exhibit E - Form of Opinion of Sellers' counsel

Exhibit F - Underwriting Guidelines

Exhibit G - Authorized Signatories of Sellers

Exhibit H - Corporate Resolutions of Sellers

Exhibit I - Sellers' Tax Identification Number

Exhibit J - Existing Indebtedness

Exhibit K - Wet-Ink Procedures

Exhibit L - Escrow Instruction Letter

Exhibit M - Custodial and Bank Fee Schedule

Exhibit N - Form of Servicer Notice

                                      -iii-

<PAGE>

          1. Applicability

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

          2. Definitions

          Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

          "Acceptable State" means any state acceptable pursuant to Sellers'
Underwriting Guidelines.

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

          "Act of Insolvency" means, with respect to any Person or its
Affiliates, (i) the filing of a petition, commencing, or authorizing the
commencement of any case or proceeding, or the voluntary joining of any case or
proceeding under any bankruptcy, insolvency, reorganization, liquidation,
dissolution or similar law relating to the protection of creditors, or suffering
any such petition or proceeding to be commenced by another which is consented
to, not timely contested or results in entry of an order for relief; (ii) the
seeking of the appointment of a receiver, trustee, custodian or similar official
for such party or an Affiliate or any substantial part of the property of
either; (iii) the appointment of a receiver, conservator, or manager for such
party or an Affiliate by any governmental agency or authority having the
jurisdiction to do so; (iv) the making or offering by such party or an Affiliate
of a composition with its creditors or a general assignment for the benefit of
creditors; (v) the admission by such party or an Affiliate of such party of its
inability to pay its debts or discharge its obligations as they become due or
mature; or (vi) that any governmental authority or agency or any person, agency
or entity acting or purporting to act under governmental authority shall have
taken any action to condemn, seize or appropriate, or to assume custody or
control of, all or any substantial part of the property of such party or of any
of its Affiliates, or shall have taken any action to displace the management of
such party or of any of its Affiliates or to curtail its authority in the
conduct of the business of such party or of any of its Affiliates.

          "Adjusted Tangible Net Worth" means, for any Person, such Person's Net
Worth plus 1% of the outstanding servicing portfolio balance of such Person plus
Subordinated Debt (provided that Subordinated Debt shall not be taken into
account to the extent that it would be cause greater than 25% of Adjusted
Tangible Net Worth to be comprised of Subordinated Debt),

<PAGE>

minus intangible assets (as reflected on such Person's balance sheet in
accordance with GAAP) such as capitalized servicing rights, goodwill and
trademarks, minus notes receivable from shareholders or affiliates.

          "Affiliate" means, with respect to any Person, any "affiliate" of such
Person, as such term is defined in the Bankruptcy Code.

          "Aged Loan" means a One Hundred Twenty Day Aged Mortgage Loan or a One
Hundred Fifty Day Aged Mortgage Loan.

          "Agency" means Freddie Mac, Fannie Mae or GNMA, as applicable.

          "Agency Security" means a mortgage-backed security issued by an
Agency.

          "Agent" means Credit Suisse First Boston Mortgage Capital LLC or any
affiliate or successor thereto.

          "Agreement" means this Master Repurchase Agreement, as it may be
amended, supplemented or otherwise modified from time to time.

          "Alt A Mortgage Loan" means a Mortgage Loan originated in accordance
with the criteria established by Buyer for Alt-A Mortgage Loans, as determined
by Buyer in its sole discretion.

          "Appraised Value" means the value set forth in an appraisal made in
connection with the origination of the related Mortgage Loan as the value of the
Mortgaged Property.

          "Asset Tape" means a remittance report on a monthly basis or requested
by Buyer pursuant to Section 17d hereof containing servicing information,
including, without limitation, those fields reasonably requested by Buyer from
time to time, on a loan-by-loan basis and in the aggregate, with respect to the
Purchased Mortgage Loans serviced by First NLC or any Servicer for the month (or
any portion thereof) prior to the Reporting Date.

          "Assignment of Mortgage" means an assignment of the Mortgage, notice
of transfer or equivalent instrument in recordable form, sufficient under the
laws of the jurisdiction wherein the related Mortgaged Property is located to
reflect the sale of the Mortgage to Buyer.

          "Bailee Letter" has the meaning assigned to such term in the Custodial
Agreement.

          "Bankruptcy Code" means the United States Bankruptcy Code of 1978, as
amended from time to time.

          "Bid" has the meaning set forth in Section 4(c) hereof.

          "Bid Fee" has the meaning set forth in Section 4(c) hereof.

                                       -2-

<PAGE>

          "Business Day" means any day other than (A) a Saturday or Sunday and
(B) a public or bank holiday in New York City.

          "Buyer" means Credit Suisse First Boston Mortgage Capital LLC, and any
successor hereunder.

          "Buyer's Margin Amount" means with respect to any Transaction as of
any date of determination, an amount equal to the product of (A) Buyer's Margin
Percentage and (B) the Purchase Price for such Transaction.

          "Buyer's Margin Percentage" means, with respect to any Transaction as
of any date, a percentage equal to the percentage obtained by dividing the (A)
Market Value of the Purchased Mortgage Loans on the Purchase Date for such
Transaction by (B) the Purchase Price on the Purchase Date for such Transaction;
provided, that, with respect to any Mortgage Loan which was not an Exception
Mortgage Loan or Aged Loan on the related Purchase Date and which, as of the
date of determination, is an Exception Mortgage Loan or Aged Loan, Buyer's
Margin Percentage as of such date of determination shall be equal to the
percentage obtained by dividing (A) the Market Value of such Mortgage Loan on
the related Purchase Date by (B) the amount the Purchase Price would have been
on the Purchase Date if such Mortgage Loan had been categorized as the type of
Mortgage Loan (e.g., Exception Mortgage Loan, Aged Loan, etc.) that it is
categorized on the date of determination.

          "Calmco" means Vesta Servicing L.P., or any successor in interest
thereto.

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

          "Change in Control" means:

          (A) any transaction or event as a result of which Neal Henschel,
     Jeffrey Henschel and Sun Mortgage Partners, L.P., cease to own, in the
     aggregate, beneficially or of record, at least 51% of the stock of or
     membership interest in the Sellers;

          (B) the sale, transfer, or other disposition of all or substantially
     all of either Seller's assets (excluding any such action taken in
     connection with any securitization transaction); or

          (C) the consummation of a merger or consolidation of either Seller
     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 or equity interest outstanding immediately after such
     merger, consolidation or such other reorganization is owned by persons who
     were not stockholders or members of such Seller immediately prior to such
     merger, consolidation or other reorganization.

                                       -3-

<PAGE>

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Collection Account" means one or more accounts established by the
Servicer into which all collections and proceeds on or in respect of the
Mortgage Loans shall be deposited by Servicer.

          "Committed Mortgage Loan" means a Mortgage Loan which is the subject
of a Take-out Commitment with a Take-out Investor.

          "Conforming Mortgage Loan" means a Mortgage Loan originated in
accordance with the criteria of an Agency for purchase of Mortgage Loans,
including, without limitation, conventional Mortgage Loans, FHA Loans and VA
Loans, as determined by Buyer in its sole discretion.

          "Custodial Agreement" means the custodial agreement dated as of the
date hereof, among Sellers, Buyer and Custodian as the same may be amended from
time to time.

          "Custodian" means LaSalle Bank, National Association or such other
party specified by Buyer and agreed to by Sellers, which approval shall not be
unreasonably withheld.

          "CSFBMC Mortgage Loan" means any Committed Mortgage Loan which is the
subject of a Take-out Commitment with Buyer or any Affiliate of Buyer as
Take-out Investor.

          "Default" means an Event of Default or an event that with notice or
lapse of time or both would become an Event of Default.

          "Dollars" and "$" means dollars in lawful currency of the United
States of America.

          "Due Date" means the day of the month on which the Monthly Payment is
due on a Mortgage Loan, exclusive of any days of grace.

          "Effective Date" means the date upon which the conditions precedent
set forth in Section 10 shall have been satisfied.

          "Electronic Tracking Agreement" means an Electronic Tracking Agreement
among Buyer, Sellers, MERS and MERSCORP, Inc., to the extent applicable.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

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

                                       -4-

<PAGE>

          "Escrow Instruction Letter" means the Escrow Instruction Letter from
the related Seller to the Settlement Agent, in the form of Exhibit L hereto, as
the same may be modified, supplemented and in effect from time to time.

          "Escrow Payments" means, with respect to any Mortgage Loan, the
amounts constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance
premiums, condominium charges, and any other payments required to be escrowed by
the Mortgagor with the mortgagee pursuant to the Mortgage or any other document.

          "Event of Default" has the meaning specified in Section 15 hereof.

          "Event of Termination" means with respect to either Seller (i) with
respect to any Plan, a reportable event, as defined in Section 4043 of ERISA, as
to which the PBGC has not by regulation waived the requirement of Section
4043(a) of ERISA that it be notified with 30 days of the occurrence of such
event, or (ii) the withdrawal of such Seller or any ERISA Affiliate thereof from
a Plan during a plan year in which it is a substantial employer, as defined in
Section 4001(a)(2) of ERISA, or (iii) the failure by such Seller or any ERISA
Affiliate thereof to meet the minimum funding standard of Section 412 of the
Code or Section 302 of ERISA with respect to any Plan, 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, or (iv) the
distribution under Section 4041 of ERISA of a notice of intent to terminate any
Plan or any action taken by such Seller or any ERISA Affiliate thereof to
terminate any plan, or (v) the adoption of an amendment to any Plan that,
pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, would result
in the loss of tax-exempt status of the trust of which such Plan is a part if
such Seller or any ERISA Affiliate thereof fails to timely provide security to
the Plan in accordance with the provisions of said sections, or (vi) the
institution by the PBGC of proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or
(vii) the receipt by such Seller or any ERISA Affiliate thereof of a notice from
a Multiemployer Plan that action of the type described in the previous clause
(vi) has been taken by the PBGC with respect to such Multiemployer Plan, or
(viii) any event or circumstance exists which may reasonably be expected to
constitute grounds for such Seller or any ERISA Affiliate thereof to incur
liability under Title IV of ERISA or under Sections 412(c)(11) or 412(n) of the
Code with respect to any Plan.

          "Exception Mortgage Loan" means any Mortgage Loan which is otherwise
ineligible for purchase hereunder, or which otherwise becomes ineligible for
purchase hereunder and which is approved by Buyer in its sole discretion. The
Pricing Rate, Market Value, Purchase Price and Buyer's Margin Percentage with
respect to Exception Mortgage Loans shall be set in the sole discretion of
Buyer. Buyer may at any time, and in its sole discretion, no longer consider a
Mortgage Loan an Exception Mortgage Loan, in which case such Mortgage Loan shall
have a Market Value of zero.

          "Existing Indebtedness" has the meaning specified in Section 13(a)(24)
hereof.

          "Fannie Mae" means Fannie Mae, the government sponsored enterprise
formerly known as the Federal National Mortgage Association.

                                      -5-

<PAGE>

          "FHA" means the Federal Housing Administration, an agency within the
United States Department of Housing and Urban Development, or any successor
thereto, and including the Federal Housing Commissioner and the Secretary of
Housing and Urban Development where appropriate under the FHA Regulations.

          "FHA Approved Mortgagee" means a corporation or institution approved
as a mortgagee by the FHA under the National Housing Act, as amended from time
to time, and applicable FHA Regulations, and eligible to own and service
mortgage loans such as the FHA Loans.

          "FHA Loan" means a Mortgage Loan which is the subject of an FHA
Mortgage Insurance Contract.

          "FHA Mortgage Insurance" means, mortgage insurance authorized under
the National Housing Act, as amended from time to time, and provided by the FHA.

          "FHA Mortgage Insurance Contract" means the contractual obligation of
the FHA respecting the insurance of a Mortgage Loan.

          "FHA Regulations" means 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.

          "First NLC" means First NLC Financial Services, LLC or its permitted
successors and assigns.

          "Foreclosed Loan" means a Mortgage Loan, the property securing which
has been foreclosed upon by a Seller.

          "Freddie Mac" means the Federal Home Loan Mortgage Corporation.

          "GAAP" means generally accepted accounting principles in effect from
time to time in the United States of America and applied on a consistent basis.

          "GNMA" means the Government National Mortgage Association and any
successor thereto.

          "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, or any entity exercising executive,
legislative, judicial, regulatory or administrative functions over any Seller or
Buyer, as applicable.

          "Gross Margin" means, with respect to each adjustable rate Mortgage
Loan, the fixed percentage amount set forth in the related Mortgage Note.

          "Guarantee" means, as to any Person, any obligation of such Person
directly or indirectly guaranteeing any Indebtedness of any other Person or in
any manner providing for the

                                       -6-

<PAGE>

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

          "High Cost Mortgage Loans" means any Mortgage Loans classified as (a)
"high cost" loans under the Home Ownership and Equity Protection Act of 1994, as
amended or (b) "high cost," "threshold," or "predatory" loans under any other
applicable state, federal or local law.

          "Income" means with respect to any Purchased Mortgage Loan at any time
until repurchased by a Seller, any principal received thereon or in respect
thereof and all interest, dividends or other distributions thereon.

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

          "Index" means, with respect to any adjustable rate Mortgage Loan, the
index identified on the Mortgage Loan Schedule and set forth in the related
Mortgage Note for the purpose of calculating the applicable Mortgage Interest
Rate.

          "Interest Rate Adjustment Date" means the date on which an adjustment
to the Mortgage Interest Rate with respect to each Mortgage Loan becomes
effective.

                                       -7-

<PAGE>

          "Interest Rate Protection Agreement" means, with respect to any or all
of the Mortgage Loans, any short sale of a US Treasury Security, or futures
contract, or mortgage related security, or Eurodollar futures contract, or
options related contract, or interest rate swap, cap or collar agreement or
Take-out Commitment, or similar arrangement providing for protection against
fluctuations in interest rates or the exchange of nominal interest obligations,
either generally or under specific contingencies, entered into by a Seller and
an Affiliate of Buyer or such other party acceptable to Buyer in its sole
discretion, which agreement is acceptable to Buyer in its sole discretion.

          "Jumbo Mortgage Loan" means an A quality Mortgage Loan which is not
eligible for sale to an Agency.

          "LIBOR" means for each day, the rate of interest (calculated on a per
annum basis) equal to the overnight British Bankers Association Rate as reported
on the display designated as "BBAM" "Page DG8 4a" on Bloomberg (or such other
display as may replace "BBAM" "Page DG8 4a" on Bloomberg) on such date of
determination, and if such rate shall not be so quoted, the rate per annum at
which Buyer is offered Dollar deposits at or about 11:00 a.m., (New York City
time), on such day, by prime banks in the interbank eurodollar market where the
eurodollar and foreign currency exchange operations in respect of its loans are
then being conducted for delivery on such day for an overnight period, and in an
amount comparable to the amount of the Purchase Price of Transactions to be
outstanding on such day.

          "Lien" means any mortgage, lien, pledge, charge, security interest or
similar encumbrance.

          "Margin Call" has the meaning specified in Section 6(a) hereof.

          "Margin Deadline" has the meaning specified in Section 6(b) hereof.

          "Margin Deficit" has the meaning specified in Section 6(a) hereof.

          "Market Value" means, with respect to any Purchased Mortgage Loan as
of any date of determination, the whole-loan servicing released fair market
value of such Purchased Mortgage Loan on such date as determined by Buyer (or an
Affiliate thereof) in its sole discretion. Without limiting the generality of
the foregoing, each Seller acknowledges that (a) in the event that a Purchased
Mortgage Loan is not subject to a Take-out Commitment, Buyer may deem the Market
Value for such Mortgage Loan to be no greater than par and (b) the Market Value
of a Purchased Mortgage Loan may be reduced to zero by Buyer if:

               (i) a breach of a representation, warranty or covenant made by
          either Seller in this Agreement with respect to such Purchased
          Mortgage Loan has occurred and is continuing;

               (ii) such Purchased Mortgage Loan is a Non-Performing Mortgage
          Loan;

               (iii) such Purchased Mortgage Loan has been released from the
          possession of the Custodian under the Custodial Agreement (other than
          to a Take-

                                       -8-

<PAGE>

          out  Investor  pursuant to a Bailee  Letter) for a period in excess of
          ten (10) calendar days;

               (iv) such Purchased Mortgage Loan has been released from the
          possession of the Custodian under the Custodial Agreement to a
          Take-out Investor pursuant to a Bailee Letter for a period in excess
          of 45 calendar days;

               (v) such Purchased Mortgage Loan has been held by the Custodian
          for the benefit of Buyer (in its capacity as Buyer hereunder or as a
          secured lender) for a period of greater than (a) 90 days for all
          Mortgage Loans other than Aged Loans or (b) 150 days with respect to
          each Aged Loan;

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

               (vii) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans
          exceeds $7 million;

               (viii) when the Purchase Price for such Purchased Mortgage Loan
          is added to other Purchased Mortgage Loans, the aggregate Purchase
          Price of all One Hundred and Twenty Day Aged Mortgage Loans exceeds $2
          million;

               (ix) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all One Hundred and Fifty Day Aged Mortgage Loans exceeds $750,000;

               (x) when the Purchase Price for such Purchased Mortgage Loan is
          added to other Purchased Mortgage Loans, the aggregate Purchase Price
          of all Second Lien Mortgage Loans that are Purchased Mortgage Loans
          exceeds $2 million.

          "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, condition
(financial or otherwise) or prospects of any Seller, any Affiliate that is a
party to any Program Agreement taken as a whole; (b) a material impairment of
the ability of any Seller, or any Affiliate that is a party to any Program
Agreement to perform under any Program Agreement and to avoid any Event of
Default; or (c) a material adverse effect upon the legality, validity, binding
effect or enforceability of any Program Agreement against any Seller, or any
Affiliate that is a party to any Program Agreement.

          "Maximum Aggregate Purchase Price" means TWENTY MILLION DOLLARS
($20,000,000).

          "MERS" means Mortgage Electronic Registration Systems, Inc., a
corporation organized and existing under the laws of the State of Delaware, or
any successor thereto.

                                       -9-

<PAGE>

          "MERS System" means the system of recording transfers of mortgages
electronically maintained by MERS.

          "Monthly Payment" means the scheduled monthly payment of principal and
interest on a Mortgage Loan.

          "Moody's" means Moody's Investors Service, Inc. or any successors
thereto.

          "Mortgage" 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.

          "Mortgage File" means, with respect to a Mortgage Loan, the documents
and instruments relating to such Mortgage Loan and set forth in Exhibit F to the
Custodial Agreement.

          "Mortgage Interest Rate" means the rate of interest borne on a
Mortgage Loan from time to time in accordance with the terms of the related
Mortgage Note.

          "Mortgage Interest Rate Cap" means, 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" means any Sub-Prime Mortgage Loan, Exception Mortgage
Loan, Jumbo Mortgage Loan, Alt A Mortgage Loan, Second Lien Mortgage Loan or
Conforming Mortgage Loan which is a closed-end, fixed or floating-rate, first or
second lien, one-to-four-family residential mortgage or home equity loan
evidenced by a promissory note and secured by a mortgage, which satisfies the
requirements set forth in the Underwriting Guidelines and Section 13(b) hereof;
provided, however, that, except as expressly approved in writing by Buyer,
Mortgage Loans shall not include any "high-LTV" loans (ie., a mortgage loan
having a loan-to-value ratio in excess of 100% 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 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.

          "Mortgage Loan Schedule" means with respect to any Transaction as of
any date, a mortgage loan schedule in the form of either (a) Exhibit C attached
hereto or (b) a computer tape or other electronic medium generated by either
Seller, and delivered to Buyer and Custodian, which provides information
(including, without limitation, the information set forth on Exhibit C attached
hereto) relating to the Purchased Mortgage Loans in a format acceptable to
Buyer.

          "Mortgage Loan Schedule and Exception Report" has the meaning assigned
to such term in the Custodial Agreement.

                                      -10-

<PAGE>

          "Mortgage Note" means the promissory note or other evidence of the
indebtedness of a Mortgagor secured by a Mortgage.

          "Mortgaged Property" means the real property securing repayment of the
debt evidenced by a Mortgage Note.

          "Mortgagor" means the obligor or obligors on a Mortgage Note,
including any person who has assumed or guaranteed the obligations of the
obligor thereunder.

          "Multiemployer Plan" means a multiemployer plan defined as such in
Section 3(37) of ERISA to which contributions have been or are required to be
made by a Seller or any ERISA Affiliate and that is covered by Title IV of
ERISA.

          "Net Income" means, for any period and any Person, the net income of
such Person for such period as determined in accordance with GAAP.

          "Net Worth" means, with respect to any Person, an amount equal to, on
a consolidated basis, such Person's stockholder equity (determined in accordance
with GAAP).

          "1934 Act" means the Securities Exchange Act of 1934, as amended from
time to time.

          "Non-Performing Mortgage Loan" means (i) any Mortgage Loan for which
any payment of principal or interest is more than twenty-nine (29) days past
due, (ii) any Mortgage Loan with respect to which the related mortgagor is in
bankruptcy or (iii) any Mortgage Loan with respect to which the related
mortgaged property is in foreclosure.

          "Notice Date" has the meaning given to it in Section 3(b) hereof.

          "Obligations" means (a) all of Sellers' indebtedness, obligations to
pay the Repurchase Price on the Repurchase Date, the Price Differential on each
Price Differential Payment Date, and other obligations and liabilities, to
Buyer, its Affiliates or Custodian arising under, or in connection with, the
Program Agreements, whether now existing or hereafter arising; (b) any and all
sums paid by Buyer or on behalf of Buyer in order to preserve any Purchased
Mortgage Loan or its interest therein; (c) in the event of any proceeding for
the collection or enforcement of any of 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 Mortgage Loan, or of any exercise by Buyer of its
rights under the Program Agreements, including, without limitation, attorneys'
fees and disbursements and court costs; and (d) all of the Sellers' indemnity
obligations to Buyer or Custodian or both pursuant to the Program Agreements.

          "One Hundred and Fifty Day Aged Mortgage Loan" means a Mortgage Loan
subject to a Transaction hereunder and for which the Purchase Date is greater
than 120 days, but no more that 150 days, prior to the date of determination.

                                      -11-

<PAGE>

          "One Hundred and Twenty Day Aged Mortgage Loan" means a Mortgage Loan
subject to a Transaction hereunder and for which the Purchase Date is greater
than 90 days, but no more than 120 days, prior to the date of determination.

          "PBCG" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

          "Person" means an individual, partnership, corporation (including a
business trust), limited liability company, unlimited liability company, joint
stock company, trust, unincorporated association, joint venture or other entity,
or a government or any political subdivision or agency thereof.

          "Plan" means an employee benefit or other plan established or
maintained by any Seller or any ERISA Affiliate and covered by Title IV of
ERISA, other than a Multiemployer Plan.

          "Post Default Rate" means an annual rate of interest equal to the
Pricing Rate plus 3%.

          "Price Differential" means with respect to any Transaction as of any
date of determination, an amount equal to the product of (A) the Pricing Rate
for such Transaction and (B) the Purchase Price for such Transaction, calculated
daily on the basis of a 360-day year for the actual number of days during the
period commencing on (and including) the Purchase Date for such Transaction and
ending on (but excluding) the Repurchase Date.

          "Price Differential Payment Date" means, with respect to a Purchased
Mortgage Loan, the 5th day of the month following the related Purchase Date and
each succeeding 5th day of the month thereafter; provided, that, with respect to
such Purchased Mortgage Loan, the final Price Differential Payment Date shall be
the related Repurchase Date; and provided, further, that if any such day is not
a Business Day, the Price Differential Payment Date shall be the next succeeding
Business Day.

          "Pricing Rate" means LIBOR plus:

               (a) [*]% with respect to Transactions the subject of which are
          Conforming Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans and Wet-Ink Mortgage Loans);

               (b) [*]% with respect to Transactions the subject of which are
          Sub-Prime Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans and Wet-Ink Mortgage Loans);

               (c) [*]% with respect to Transactions the subject of which are
          Alt A Mortgage Loans (other than Aged Loans, Second Lien Mortgage
          Loans and Wet-Ink Mortgage Loans);

               (d) [*]% with respect to Transactions the subject of which are
          Second Lien Mortgage Loans (other than Aged Loans and Wet-Ink Mortgage
          Loans); and

                                      -12-

<PAGE>

               (e) [*]% with respect to Transactions the subject of which are
          Wet-Ink Mortgage Loans;

               (f) [*]% with respect to Transactions the subject of which are
          Aged Loans;

               (g) the rate determined in the sole discretion of Buyer with
          respect to Transactions the subject of which are Exception Mortgage
          Loans.

          The Pricing Rate shall change in accordance with LIBOR, as provided in
Section 5(a).

          "Program Agreements" means, collectively, the Servicing Agreement, the
Servicer Notice, the Custodial Agreement, this Agreement, the Electronic
Tracking Agreement, if entered into, and with respect to each Exception Mortgage
Loan, a Purchase Confirmation.

          "Property" means any right or interest in or to property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible.

          "Purchase Confirmation" means a confirmation of a Transaction, in the
form attached as Exhibit B hereto.

          "Purchase Date" means the date on which Purchased Mortgage Loans are
to be transferred by a Seller to Buyer.

          "Purchase Price" means the price at which each Mortgage Loan is
transferred by a Seller to Buyer, which shall equal:

          (a) on the Purchase Date, in the case of Purchased Mortgage Loans
     other than One Hundred and Twenty Day Aged Mortgage Loans or One Hundred
     and Fifty Day Aged Mortgage Loans, the lesser of either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, the product of (1) the outstanding principal
          amount thereof as set forth in the Mortgage Loan Schedule and
          Exception Report multiplied by (2) the applicable Purchase Price
          Percentage for such Mortgage Loan or (y) in the case of CSFBMC
          Mortgage Loans, the [*] as set forth in the Mortgage Loan Schedule and
          Exception Report, and

               (B) the product of (1) the Market Value of such Purchased
          Mortgage Loan multiplied by (2) the applicable Purchase Price
          Percentage for such Mortgage Loan; or

          (b) on the Purchase Date, in the case of Purchased Mortgage Loans
     which are One Hundred and Twenty Day Aged Mortgage Loans, the lesser of
     either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, [*]% of the outstanding principal amount
          thereof as set forth in

                                      -13-

<PAGE>

          the Mortgage Loan Schedule and Exception Report or (y) in the case of
          CSFBMC Mortgage Loans, [*] as set forth in the Mortgage Loan Schedule
          and Exception Report, and

               (B) the product of (1) the Market Value of such Purchase Mortgage
          Loan multiplied by (2) the applicable Purchase Price Percentage for
          such Mortgage Loan; or

          (c) on the Purchase Date, in the case of Purchased Mortgage Loans
     which are One Hundred and Fifty Day Aged Mortgage Loans, the lesser of
     either:

               (A) (x) with respect to Purchased Mortgage Loans other than
          CSFBMC Mortgage Loans, [*]% of the outstanding principal amount
          thereof as set forth in the Mortgage Loan Schedule and Exception
          Report or (y) in the case of CSFBMC Mortgage Loans, [*] as set forth
          in the Mortgage Loan Schedule and Exception Report, and

               (B) the product of (1) the Market Value of such Purchase Mortgage
          Loan multiplied by (2) the applicable Purchase Price Percentage for
          such Mortgage Loan; and

          (d) after the Purchase Date, except where Buyer and a Seller agree
     otherwise, the amount determined under the preceding clauses (a), (b) or
     (c) decreased by the amount of any cash transferred by a Seller to Buyer
     pursuant to Section 4(c) hereof or applied to reduce the Sellers'
     obligations under clause (ii) of Section 4(b) hereof.

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

          (a) [*]% with respect to Purchased Mortgage Loans that are One Hundred
     and Fifty Day Aged Mortgage Loans;

          (b) [*]% with respect to Purchased Mortgage Loans that are One Hundred
     and Twenty Day Aged Mortgage Loans;

          (c) [*]% with respect to Purchased Mortgage Loans that are Second Lien
     Mortgage Loans (other than Aged Loans);

          (d) [*]% with respect to Purchased Mortgage Loans that are Sub-Prime
     Mortgage Loans (other than Aged Loans and Second Lien Mortgage Loans);

          (e) [*]% with respect to Purchased Mortgage Loans that are Alt A
     Mortgage Loans (other than Aged Loans and Second Lien Mortgage Loans);

          (f) [*]% with respect to Purchased Mortgage Loans that are Conforming
     Mortgage Loans (other than Aged Loans and Second Lien Mortgage Loans);

                                      -14-

<PAGE>

          (g) with respect to Purchased Mortgage Loans that are Exception
     Mortgage Loans, a percentage to be determined by Buyer in its sole
     discretion;

          "Purchased Mortgage Loans" means the collective reference to Mortgage
Loans together with the Repurchase Assets related to such Mortgage Loans
transferred by a Seller 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.

          "Qualified Insurer" means a mortgage guaranty insurance company duly
authorized and licensed where required by law to transact mortgage guaranty
insurance business and acceptable under the Underwriting Guidelines.

          "Qualified Originator" means an originator of Mortgage Loans which is
acceptable under the Underwriting Guidelines.

          "Records" means all instruments, agreements and other books, records,
and reports and data generated by other media for the storage of information
maintained by a Seller or any other person or entity with respect to a Purchased
Mortgage Loan. Records shall include the mortgage notes, any Mortgages, the
Mortgage Files, the credit files related to the Purchased Mortgage Loan and any
other instruments necessary to document or service a Mortgage Loan.

          "REO Property" means real property acquired by a Seller, including a
Mortgaged Property acquired through foreclosure of a Mortgage Loan or by deed in
lieu of such foreclosure.

          "Reporting Date" means the 5th day of each month or, if such day is
not a Business Day, the next succeeding Business Day.

          "Repurchase Assets" has the meaning assigned thereto in Section 8
hereof.

          "Repurchase Date" means the earlier of (i) the Termination Date, (ii)
the date set forth in the applicable Purchase Confirmation, (iii) the date
determined by application of Section 16 hereof or (iv) the date the related
Mortgage Loan is sold pursuant to a Take-out Commitment.

          "Repurchase Price" means the price at which Purchased Mortgage Loans
are to be transferred from Buyer to a Seller upon termination of a Transaction,
which will be determined in each case (including Transactions terminable upon
demand) as the sum of the Purchase Price and the accrued but unpaid Price
Differential as of the date of such determination.

          "Request for Certification" means a notice sent to the Custodian
reflecting the sale of one or more Purchased Mortgage Loans to Buyer hereunder.

          "Requirement of Law" means, with respect to any Person, any law,
treaty, rule or regulation or determination of an arbitrator, a court or other
governmental authority, applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

                                      -15-

<PAGE>

          "Responsible Officer" means shall mean, as to any Person, the chief
executive officer or, with respect to financial matters, the chief financial
officer of such Person.

          "S&P" means Standard & Poor's Ratings Services, or any successor
thereto.

          "SEC" means the Securities and Exchange Commission, or any successor
thereto.

          "Second Lien Mortgage Loan" means a second lien Mortgage Loan which
meets the Underwriting Guidelines and is eligible for sale to Buyer.

          "Sellers" means each of First NLC and NLC, Inc. and their successors
and permitted assigns.

          "Servicer" means either Calmco or First NLC, or any other servicer
approved by Buyer in its sole discretion.

          "Servicer Notice" means any notice acknowledged by the Servicer
substantially in the form of Exhibit N hereto.

          "Servicing Agreement" means any servicing agreement entered into among
the Sellers, Buyer and a Servicer as the same may be amended from time to time.

          "Settlement Agent" means, with respect to any Transaction the subject
of which is a Wet-Ink Mortgage Loan, the entity approved by Buyer, in its sole
good-faith discretion, which may be a title company, escrow company or attorney
in accordance with local law and practice in the jurisdiction where the related
Wet-Ink Mortgage Loan is being originated. A Settlement Agent is deemed approved
unless Buyer notifies Sellers otherwise at any time electronically or in
writing.

          "SIPA" means the Securities Investor Protection Act of 1970, as
amended from time to time.

          "Subordinated Debt" means, for any Person, Indebtedness of such Person
which is (i) unsecured, (ii) no part of the principal of such Indebtedness is
required to be paid (whether by way of mandatory sinking fund, mandatory
redemption, mandatory prepayment or otherwise) prior to the date which is one
year following the Termination Date and (iii) the payment of the principal of
and interest on such Indebtedness and other obligations of such Person in
respect of such Indebtedness are subordinated to the prior payment in full of
the principal of and interest (including post-petition obligations) on the
Transactions and all other obligations and liabilities of each Seller to Buyer
hereunder on terms and conditions approved in writing by Buyer and all other
terms and conditions of which are satisfactory in form and substance to Buyer.

          "Subsidiary" means, with respect to any Person, any corporation,
partnership or other entity of which at least a majority of the securities or
other ownership interests having by the terms thereof ordinary voting power to
elect a majority of the board of directors or other persons performing similar
functions of such corporation, partnership or other entity (irrespective of
whether or not at the time securities or other ownership interests of any other
class or classes of such corporation, partnership or other entity shall have or
might have voting power by reason

                                      -16-

<PAGE>

of the happening of any contingency) is at the time directly or indirectly owned
or controlled by such Person or one or more Subsidiaries of such Person or by
such Person and one or more Subsidiaries of such Person.

          "Sub-Prime Mortgage Loan" means a Mortgage Loan which originated in
accordance with the criteria established by Buyer for sub-prime mortgage loans,
as determined by Buyer in its sole discretion.

          "Take-out Commitment" means a commitment of a Seller to either (a)
sell one or more Mortgage Loans to a Take-out Investor or (b) (i) swap one or
more Mortgage Loans with a Take-out Investor that is an Agency for an Agency
Security, and (ii) sell the related Agency Security to a Take-out Investor, and
in each case, the corresponding Take-out Investor's commitment back to such
Seller to effectuate any of the foregoing, as applicable. With respect to any
Take-out Commitment with an Agency, the applicable agency documents list Buyer
as sole subscriber.

          "Take-out Investor" means (i) an Agency or (ii) other institution
which has made a Take-out Commitment and has been approved by Buyer.

          "Termination Date" means the earlier of (a) December 19, 2002, and (b)
the date of the occurrence and continuance of an Event of Default.

          "Test Period" means any period of three (3) consecutive calendar
months.

          "Transaction" has the meaning set forth in Section 1 hereof.

          "Transaction Request" means a request from a Seller to Buyer, in the
form attached as Exhibit A hereto, to enter into a Transaction.

          "Trust Receipt and Certification" means, with respect to any
Transaction as of any date, a receipt and certification in the form attached as
an exhibit to the Custodial Agreement.

          "Underwriting Guidelines" means the standards, procedures and
guidelines of Sellers for underwriting and acquiring Mortgage Loans, which are
set forth in the written policies and procedures of Sellers, copies of which are
attached hereto as Exhibit F and such other guidelines as are identified and
approved in writing by Buyer.

          "Uniform Commercial Code" means the Uniform Commercial Code as in
effect on the date hereof in the State of New York or the Uniform Commercial
Code as in effect in the applicable jurisdiction.

          "VA" means the U.S. Department of Veterans Affairs, an agency of the
United States of America, or any successor thereto including the Secretary of
Veterans Affairs.

          "VA Approved Lender" means a lender which is approved by the VA to act
as a lender in connection with the origination of VA Loans.

                                      -17-

<PAGE>

          "VA Loan" means a Mortgage Loan which is subject of a VA Loan Guaranty
Agreement as evidenced by a VA Loan Guaranty Agreement, or a Mortgage Loan which
is a vender loan sold by the VA.

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

          "Violation Deadline" has the meaning assigned thereto in Section 4(c)
hereof.

          "Wet-Ink Documents" means, with respect to any Wet-Ink Mortgage Loan,
the documents set forth in Exhibit K hereto.

          "Wet-Ink Mortgage Loan" means a Mortgage Loan which Sellers are
selling to Buyer simultaneously with the origination thereof.

          3. Program; Initiation of Transactions

          a. From time to time, in the sole discretion of Buyer, Buyer will
purchase from the Sellers certain Mortgage Loans that have been either
originated by either Seller or purchased by either Seller from other
originators. This Agreement is not a commitment by Buyer to enter into
Transactions with the Sellers but rather sets forth the procedures to be used in
connection with periodic requests for Buyer to enter into Transactions with the
Sellers. Each Seller hereby acknowledges that Buyer is under no obligation to
agree to enter into, or to enter into, any Transaction pursuant to this
Agreement. All Purchased Mortgage Loans shall exceed or meet the Underwriting
Guidelines, and shall be serviced by Servicer. The aggregate Purchase Price of
Purchased Mortgage Loans subject to outstanding Transactions shall not exceed
the Maximum Aggregate Purchase Price.

          b. With respect to each Transaction involving Mortgage Loans which are
not Wet-Ink Mortgage Loans, Sellers shall give Buyer and Custodian at least 1
Business Day's prior notice of any proposed Purchase Date (the date on which
such notice is given, the "Notice Date"); provided, that if a Seller is
delivering 25 or fewer Mortgage Loans, which are not Wet-Ink Mortgage Loans, on
a Purchase Date, the notice shall be delivered on or before 10:30 a.m. (New York
City time) on the Purchase Date. With respect to Wet-Ink Mortgage Loans, such
Seller shall deliver notice of any proposed purchase on or before 3:30 p.m. (New
York City time) on the Purchase Date. On the Notice Date, such Seller shall (i)
request that Buyer enter into a Transaction by furnishing to Buyer a Transaction
Request, (ii) deliver to Buyer and Custodian a Mortgage Loan Schedule and (iii)
deliver to Custodian a Request for Certification and each Mortgage File or
Wet-Ink Documents for each Wet-Ink Mortgage Loan in accordance with Section
10(b)(3) and otherwise comply with the procedures set forth in Exhibit K hereto.
Following receipt of such request, Buyer may enter into such requested
Transaction or may notify such Seller of its intention not to enter into such
Transaction.

          c. With respect to each Exception Mortgage Loan, upon receipt of the
Transaction Request, Buyer shall, consistent with this Agreement, specify the
terms for such proposed Transaction, including the Purchase Price, the Pricing
Rate, the Market Value and the

                                      -18-

<PAGE>

Repurchase Date in respect of such Transaction. The terms thereof shall be set
forth in the Purchase Confirmation to be delivered to the Sellers on or prior to
the Purchase Date.

          d. With respect to each Exception Mortgage Loan, the Purchase
Confirmation, together with this Agreement, shall constitute conclusive evidence
of the terms agreed between Buyer and the Sellers with respect to the
Transaction to which the Purchase Confirmation relates, and the Sellers'
acceptance of the related proceeds shall constitute the Sellers' agreement to
the terms of such Purchase Confirmation. It is the intention of the parties
that, with respect to each Exception Mortgage Loan, each Purchase Confirmation
shall not be separate from this Agreement but shall be made a part of this
Agreement. In the event of any conflict between this Agreement and, with respect
to each Exception Mortgage Loan, a Purchase Confirmation, the terms of the
Purchase Confirmation shall control with respect to the related Transaction.

          e. Upon the satisfaction of the applicable conditions precedent set
forth in Section 10 hereof, all of the Sellers' interest in the Repurchase
Assets shall pass to Buyer on the Purchase Date, against the transfer of the
Purchase Price to the Sellers. Upon transfer of the Mortgage Loans to Buyer as
set forth in this Section and until termination of any related Transactions as
set forth in Sections 4 or 16 of this Agreement, ownership of each Mortgage
Loan, including each document in the related Mortgage File and Records, is
vested in Buyer; provided that, prior to the recordation by the Custodian as
provided for in the Custodial Agreement record title in the name of the related
Seller to each Mortgage shall be retained by the related Seller in trust, for
the benefit of Buyer, for the sole purpose of facilitating the servicing and the
supervision of the servicing of the Mortgage Loans.

          f. With respect to each Wet-Ink Mortgage Loan, by no later than 12:00
noon, (New York City time) on the seventh Business Day following the applicable
Purchase Date, the related Seller shall cause the related Settlement Agent to
deliver to the Custodian the remaining documents in the Mortgage File.

          4. Repurchase

          a. The Sellers shall repurchase the related Purchased Mortgage Loans
from Buyer on each related Repurchase Date. Such obligation to repurchase exists
without regard to any prior or intervening liquidation or foreclosure with
respect to any Purchased Mortgage Loan (but liquidation or foreclosure proceeds
received by Buyer shall be applied to reduce the Repurchase Price for such
Purchased Mortgage Loan on each Price Differential Payment Date except as
otherwise provided herein). The Sellers are obligated to repurchase and take
physical possession of the Purchased Mortgage Loans from Buyer or its designee
(including the Custodian) at the Sellers' expense on the related Repurchase
Date.

          b. Provided that no Default shall have occurred and is continuing, and
Buyer has received the related Repurchase Price upon repurchase of the Purchased
Mortgage Loans, Buyer agrees to release its ownership interest hereunder in the
Purchased Mortgage Loans (including, the Repurchase Assets related thereto) at
the request of the Sellers. With respect to payments in full by the related
Mortgagor of a Purchased Mortgage Loan, the Sellers agree to (i) provide Buyer
with a copy of a report from the related Servicer indicating that such Purchased
Mortgage Loan has been paid in full, (ii) remit to Buyer, within two Business
Days, the Repurchase Price

                                      -19-

<PAGE>

with respect to such Purchased Mortgage Loans and (iii) provide Buyer a notice
specifying each Purchased Mortgage Loan that has been prepaid in full. Buyer
agrees to release its ownership interest in Purchased Mortgage Loans which have
been prepaid in full after receipt of evidence of compliance with clauses (i)
through (iii) of the immediately preceding sentence.

          c. In the event that at any time any Purchased Mortgage Loan violates
the applicable sublimit set forth in the definition of Market Value, Buyer may,
in its sole discretion, redesignate such Mortgage Loan as an Exception Mortgage
Loan. If Buyer does not redesignate such Mortgage Loan as an Exception Mortgage
Loan, and if neither Seller notifies Buyer within five (5) Business Days
following notice or knowledge of such violation that either Seller does not want
to receive a bid for such Mortgage Loan as described below, Buyer or an
Affiliate of Buyer may offer to terminate the applicable Seller's right and
obligation to repurchase such Mortgage Loan by paying the related Seller a price
to be set by Buyer in its sole discretion (a "Bid"). Such Seller, within five
(5) Business Days of receipt of Buyer's bid (the "Violation Deadline") may, in
its sole discretion, either (i) accept Buyer's bid, terminating Sellers' right
to repurchase such Mortgage Loan under this Agreement or (ii) immediately
repurchase the Mortgage Loan at the Repurchase Price in accordance with this
Section 4. The Sellers shall pay Buyer a bid fee equal to $250 (the "Bid Fee")
with respect to each Mortgage Loan on which Buyer or its Affiliate makes a Bid,
regardless of whether the Bid is accepted and such Bid Fee shall be due and
payable to Buyer on or before the Violation Deadline. Any amount paid by Buyer
or its Affiliate to terminate the Sellers' right to repurchase a Purchased
Mortgage Loan if a Bid is accepted pursuant to this Section shall be applied by
Buyer toward the outstanding Repurchase Price for the applicable Transaction.

          5. Price Differential.

          a. On each Business Day that a Transaction is outstanding, the Pricing
Rate shall be reset and, unless otherwise agreed, the accrued and unpaid Price
Differential shall be settled in cash on each related Price Differential Payment
Date. Two Business Days prior to the Price Differential Payment Date, Buyer
shall give the Sellers written or electronic notice of the amount of the Price
Differential due on such Price Differential Payment Date. On the Price
Differential Payment Date, the Sellers shall pay to Buyer the Price Differential
for such Price Differential Payment Date (along with any other amounts to be
paid pursuant to Sections 7, 33 and 34 hereof), by wire transfer in immediately
available funds.

          b. If Sellers fail to pay all or part of the Price Differential by
3:00 p.m. (New York City time) on the related Price Differential Payment Date,
with respect to any Purchased Mortgage Loan, the Sellers shall be obligated to
pay to Buyer (in addition to, and together with, the amount of such Price
Differential) interest on the unpaid Repurchase Price at a rate per annum equal
to the Post Default Rate until the Price Differential is received in full by
Buyer.

          6. Margin Maintenance

          a. If at any time the Market Value of any Purchased Mortgage Loan
subject to a Transaction is less than Buyer's Margin Amount for such Transaction
(a "Margin Deficit"), then Buyer may by notice to any Seller require the Sellers
to transfer to Buyer cash in an amount at least equal to the Margin Deficit
(such requirement, a "Margin Call").

                                      -20-

<PAGE>

          b. Notice delivered pursuant to Section 6(a) may be given by any
written means. Any notice given before 10:00 a.m. (New York City time) on a
Business Day shall be met, and the related Margin Call satisfied, no later than
5:00 p.m. (New York City time) on such Business Day; notice given after 10:00
a.m. (New York City time) on a Business Day shall be met, and the related Margin
Call satisfied, no later than 5:00 p.m. (New York City time) on the following
Business Day; provided, however, that in the event that the aggregate Purchase
Price of Transactions outstanding on the date a Margin Call is made equals no
more than 50% of the Maximum Aggregate Purchase Price, the Sellers shall have
three (3) Business Days to satisfy the related Margin Call (the foregoing time
requirements for satisfaction of a Margin Call are referred to as the "Margin
Deadlines"). The failure of Buyer, on any one or more occasions, to exercise its
rights hereunder, shall not change or alter the terms and conditions to which
this Agreement is subject or limit the right of Buyer to do so at a later date.
The Sellers and Buyer each agree that a failure or delay by Buyer to exercise
its rights hereunder shall not limit or waive Buyer's rights under this
Agreement or otherwise existing by law or in any way create additional rights
for the Sellers.

          7. Income Payments

          a. If Income is paid in respect of any Purchased Mortgage Loan during
the term of a Transaction, such Income shall be the property of Buyer.
Notwithstanding the foregoing, and provided no Event of Default has occurred and
is continuing, Buyer agrees that if a third-party Servicer is in place for any
Purchased Mortgage Loans, such Servicer shall deposit such Income to the
Collection Account. First NLC shall deposit all Income received in its capacity
as Servicer of any Purchased Mortgage Loans to the Collection Account in
accordance with Section 12(c) hereof.

          b. Provided no Event of Default has occurred and is continuing, on
each Price Differential Payment Date, Sellers shall remit to Buyer an amount
equal to the Price Differential out of the interest portion of the Income paid
in respect to the Purchased Mortgage Loans for the preceding month in accordance
with Section 5 of this Agreement. Upon termination of any Transaction, to the
extent that there is any excess Income after repayment of all amounts to be
transferred to Buyer by Sellers, Buyer, in its sole option, may apply the excess
income to reduce the Repurchase Price due upon termination of any other
outstanding Transactions.

          c. In the event that an Event of Default has occurred and is
continuing, notwithstanding any provision set forth herein, Sellers shall remit
to Buyer all Income received with respect to each Purchased Mortgage Loan on the
related Price Differential Payment Date or on such other date or dates as Buyer
notifies Sellers in writing.

          d. Notwithstanding any provision to the contrary in this Section 7,
within two (2) Business Days of receipt by any Seller of any prepayment of
principal in full, with respect to a Purchased Mortgage Loan, the Sellers shall
remit such amount to Buyer and Buyer shall immediately apply any such amount
received by Buyer to reduce the amount of the Repurchase Price due upon
termination of the related Transaction.

          e. Notwithstanding anything to the contrary set forth herein, upon
notice by Buyer to either Seller, the Sellers shall remit to Buyer all
collections received by Servicer of the

                                      -21-

<PAGE>

Sellers on the Purchased Mortgage Loans in accordance with Buyer's directions no
later than the day on which aggregate collections of principal and interest
(excluding principal prepayments) on the Purchased Mortgaged Loans reaches an
amount to be indicated by Buyer in its sole discretion. Any amounts so remitted
shall be applied to reduce the Repurchase Price.

          8. Security Interest

          Although the parties intend that all Transactions hereunder be sales
and purchases and not loans, in the event any such Transactions are deemed to be
loans, each Seller hereby pledges to Buyer as security for the performance by
the Sellers of their Obligations and hereby grants, assigns and pledges to Buyer
a fully perfected first priority security interest in the Purchased Mortgage
Loans, the Records, and all related servicing rights, the Program Agreements (to
the extent such Program Agreements and such Seller's right thereunder relate to
the Purchased Mortgage Loans), any related Take-out Commitments, Property, all
insurance policies and insurance proceeds relating to any Mortgage Loan or the
related Mortgaged Property, including, but not limited to, any payments or
proceeds under any related primary insurance, hazard insurance and FHA Mortgage
Insurance Contracts and VA Loan Guarantee Agreements (if any), Income, the
Collection Account, Interest Rate Protection Agreements, accounts (including any
interest of such Seller in escrow accounts) and any other contract rights,
accounts, payments, rights to payment (including payments of interest or finance
charges) general intangibles and other assets relating to the Purchased Mortgage
Loans (including, without limitation, any other accounts) or any interest in the
Purchased Mortgage Loans, the servicing of the Purchased Mortgage Loans, and any
proceeds (including the related securitization proceeds) and distributions with
respect to any of the foregoing and any other property, rights, title or
interests as are specified on a Transaction Request and/or Trust Receipt and
Certification, in all instances, whether now owned or hereafter acquired, now
existing or hereafter created (collectively, the "Repurchase Assets"). Sellers
agree to execute, deliver and/or file such documents and perform such acts as
may be reasonably necessary to fully perfect Buyer's security interest created
hereby. Furthermore, the Sellers hereby authorize the Buyer to file financing
statements relating to the Repurchase Assets without the signature of the
Sellers, as the Buyer, at its option, may deem appropriate. The Sellers shall
pay the filing costs for any financing statement or statements prepared pursuant
to this Section.

          9. Payment and Transfer

          Unless otherwise mutually agreed in writing, all transfers of funds to
be made by the Sellers hereunder shall be made in Dollars, in immediately
available funds, without deduction, set-off or counterclaim, to Buyer at the
following account maintained by Buyer: Account No. 3048-8879, for the account of
CSFB BUYER/FIRST NLC SELLER- Inbound Account, Citibank, ABA No.        or such
                                                                ------
other account as Buyer shall specify to Sellers in writing. Sellers acknowledge
that they have no rights of withdrawal from the foregoing account. All Purchased
Mortgage Loans transferred by one party hereto to the other party shall be in
the case of a purchase by Buyer in suitable form for transfer or shall be
accompanied by duly executed instruments of transfer or assignment in blank and
such other documentation as Buyer may reasonably request. All Purchased Mortgage
Loans shall be evidenced by a Trust Receipt and Certification.

                                      -22-

<PAGE>

          10. Conditions Precedent

          a. Initial Transaction. As conditions precedent to the initial
Transaction, Buyer shall have received on or before the day of such initial
Transaction the following, in form and substance satisfactory to Buyer and duly
executed as applicable, by the Sellers and each other party thereto:

          (1) Program Agreements. The Program Agreements (including a Custodial
     Agreement in a form acceptable to Buyer) duly executed and delivered by the
     parties thereto and being in full force and effect, free of any
     modification, breach or waiver.

          (2) Security Interest. Evidence that all other actions necessary or,
     in the opinion of Buyer, desirable to perfect and protect Buyer's interest
     in the Purchased Mortgage Loans and other Repurchase Assets have been
     taken, including, without limitation, duly executed and filed Uniform
     Commercial Code financing statements on Form UCC-1.

          (3) Organizational Documents. A certified copy of each Seller's
     organizational documents, charter, bylaws and authorizing resolutions
     approving the Program Agreements and transactions thereunder (either
     specifically or by general resolution) and all documents evidencing other
     necessary corporate action or governmental approvals as may be required in
     connection with the Program Agreements.

          (4) Good Standing Certificate. A certified copy of a good standing
     certificate of each Seller, dated as of no earlier than the date 10
     Business Days prior to the Purchase Date with respect to the initial
     Transaction hereunder.

          (5) Incumbency Certificate. An incumbency certificate of the secretary
     of each Seller, certifying the names, true signatures and titles of the
     representatives duly authorized to request transactions hereunder and to
     execute the Program Agreements.

          (6) Opinion of Counsel. An opinion of each Seller's counsel, in form
     and substance substantially as set forth in Exhibit E attached hereto.

          (7) Underwriting Guidelines. The true and correct copies of the
     Underwriting Guidelines certified by an officer of each Seller.

          (8) Fees. Payment of any fees due to Buyer hereunder.

          b. All Transactions. The obligation of Buyer to enter into each
Transaction pursuant to this Agreement is subject to the following conditions
precedent:

          (1) Due Diligence Review. Without limiting the generality of Section
     36 hereof, Buyer shall have completed, to its satisfaction, its due
     diligence review of the related Mortgage Loans and the Sellers.

          (2) Required Documents.

                                      -23-

<PAGE>

               (a) With respect to each Purchased Mortgage Loan which is not a
          Wet-Ink Mortgage Loan, the Mortgage File has been delivered to the
          Custodian (i) with respect to any purchase of 25 or fewer Mortgage
          Loans on a single Purchase Date, on or prior to 3:30 p.m. (New York
          City time) on the Purchase Date, and (ii) with respect to any purchase
          of 26 or more Mortgage Loans on a single Purchase Date, at least 24
          hours prior to the Purchase Date;

               (b) With respect to each Wet-Ink Mortgage Loan, the Wet-Ink
          Documents have been delivered to Buyer or Custodian, as the case may
          be, by 3:30 p.m. (New York City time) on the Purchase Date.

          (3) Transaction Documents. Buyer or its designee shall have received
     on or before the day of such Transaction (unless otherwise specified in
     this Agreement) the following, in form and substance satisfactory to Buyer
     and (if applicable) duly executed:

               (a) A Transaction Request delivered pursuant to Section 3(c)
          hereof and a Purchase Confirmation.

               (b) The Request for Certification and the related Mortgage Loan
          Schedule and Exception Report, and the Trust Receipt.

               (c) Such certificates, opinions of counsel or other documents as
          Buyer may reasonably request.

          (4) No Default. No Default or Event of Default shall have occurred and
     be continuing;

          (5) Requirements of Law. Buyer shall not have determined that the
     introduction of or a change in any Requirement of Law or in the
     interpretation or administration of any Requirement of Law applicable to
     Buyer has made it unlawful, and no Governmental Authority shall have
     asserted that it is unlawful, for Buyer to enter into Transactions with a
     Pricing Rate based on LIBOR.

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

          (7) Electronic Tracking Agreement. To the extent the Sellers are
     selling Mortgage Loans which are registered on the MERS(R) System, an
     Electronic Tracking Agreement entered into, duly executed and delivered by
     the parties thereto and being in full force and effect, free of any
     modification, breach or waiver.

          (8) Material Adverse Change. None of the following shall have occurred
     and/or be continuing:

                                      -24-

<PAGE>

               (a) Credit Suisse First Boston, New York Branch's corporate bond
          rating as calculated by S&P or Moody's has been lowered or downgraded
          to a rating below investment grade by S&P or Moody's;

               (b) an event or events shall have occurred in the good faith
          determination of Buyer resulting in the effective absence of a "repo
          market" or comparable "lending market" for financing debt obligations
          secured by mortgage loans or securities or an event or events shall
          have occurred resulting in Buyer not being able to finance Purchased
          Assets through the "repo market" or "lending market" with traditional
          counterparties at rates which would have been reasonable prior to the
          occurrence of such event or events; or

               (c) an event or events shall have occurred resulting in the
          effective absence of a "securities market" for securities backed by
          mortgage loans or an event or events shall have occurred resulting in
          Buyer not being able to sell securities backed by mortgage loans at
          prices which would have been reasonable prior to such event or events;
          or

               (d) there shall have occurred a material adverse change in the
          financial condition of Buyer which affects (or can reasonably be
          expected to affect) materially and adversely the ability of Buyer to
          fund its obligations under this Agreement.

          11. Program; Costs

          a. The Sellers shall reimburse Buyer for any of Buyer's reasonable
out-of-pocket costs, including due diligence review costs and reasonable
attorney's fees, incurred by Buyer in determining the acceptability to Buyer of
any Mortgage Loans. The Sellers shall also pay, or reimburse Buyer if Buyer
shall pay, any termination fee, which may be due any servicer. The Sellers shall
pay the fees and expenses of Buyer's counsel in connection with the Program
Agreements. Legal fees for any subsequent amendments to this Agreement or
related documents shall be borne by the Sellers. The Sellers shall pay ongoing
custodial and bank fees and expenses as set forth on Exhibit M hereto, and any
other ongoing fees and expenses under any other Program Document.

          b. If Buyer determines that, due to the introduction of, any change
in, or the compliance by Buyer with (i) any eurocurrency reserve requirement or
(ii) the interpretation of any law, regulation or any guideline or request from
any central bank or other Governmental Authority (whether or not having the
force of law), there shall be an increase in the cost to Buyer in engaging in
the present or any future Transactions, then the Sellers agree to pay to Buyer,
from time to time, upon demand by Buyer (with a copy to Custodian) the actual
cost of additional amounts as specified by Buyer to compensate Buyer for such
increased costs.

          c. With respect to any Transaction, Buyer may conclusively rely upon,
and shall incur no liability to the Sellers in acting upon, any request or other
communication that Buyer reasonably believes to have been given or made by a
person authorized to enter into a Transaction on The Sellers' behalf, whether or
not such person is listed on the certificate

                                      -25-

<PAGE>

delivered pursuant to Section 10(a)(5) hereof. In each such case, the Sellers
hereby waives the right to dispute Buyer's record of the terms of the Purchase
Confirmation, request or other communication.

          d. Notwithstanding the assignment of the Program Agreements with
respect to each Purchased Mortgage Loan to Buyer, each Seller agrees and
covenants with Buyer to enforce diligently the Sellers' rights and remedies set
forth in the Program Agreements.

          e. Any payments made by the Sellers to Buyer shall be free and clear
of, and without deduction or withholding for, any taxes; provided, however, that
if such payer shall be required by law to deduct or withhold any taxes from any
sums payable to Buyer, then such payer shall (A) make such deductions or
withholdings and pay such amounts to the relevant authority in accordance with
applicable law, (B) pay to Buyer the sum that would have been payable had such
deduction or withholding not been made, and (C) at the time Price Differential
is paid, pay to Buyer all additional amounts as specified by Buyer to preserve
the after-tax yield Buyer would have received if such tax had not been imposed.

          12. Servicing

          a. The Sellers, on Buyer's behalf, shall contract with Servicer to, or
if First NLC is the Servicer, First NLC shall, service the Mortgage Loans
consistent with the degree of skill and care that each Seller customarily
requires with respect to similar Mortgage Loans owned or managed by it and in
accordance with Accepted Servicing Practices. The Servicer shall (i) comply with
all applicable Federal, State and local laws and regulations, (ii) maintain all
state and federal licenses necessary for it to perform its servicing
responsibilities hereunder and (iii) not impair the rights of Buyer in any
Mortgage Loans or any payment thereunder. Buyer may terminate the servicing of
any Mortgage Loan with the then-existing servicer in accordance with Section
12(e) hereof.

          b. The Sellers shall cause the Servicer, or if First NLC is the
Servicer, shall cause First NLC to hold or cause to be held all escrow funds
collected by Servicer with respect to any Purchased Mortgage Loans in trust
accounts and shall apply the same for the purposes for which such funds were
collected.

          c. The Sellers shall cause the Servicer to deposit all collections
received by Servicer on the Purchased Mortgage Loans in the Collection Account
no later than the 5th Business Day following receipt; provided, however, that
any amounts required to be remitted to Buyer shall be deposited in the
Collection Account on or prior to the day on which such remittance is to occur.

          d. Upon Buyer's request, the Sellers shall provide promptly to Buyer
(i) a Servicer Notice addressed to and agreed to by the Servicer of the related
Purchased Mortgage Loans, advising such Servicer of such matters as Buyer may
reasonably request, including, without limitation, recognition by the Servicer
of Buyer's interest in such Purchased Mortgage Loans and the Servicer's
agreement that upon receipt of notice of the occurrence and continuance of an
Event of Default from Buyer, it will follow the instructions of Buyer with
respect to the Purchased Mortgage Loans and any related Income with respect
thereto.

                                      -26-

<PAGE>

          e. Upon the occurrence and continuance of an Event of Default
hereunder or a material default under the Servicing Agreement, Buyer shall have
the right to immediately terminate the Servicer's right to service the Purchased
Mortgage Loans under the Servicing Agreement without payment of any penalty or
termination fee. The Sellers and the Servicer shall cooperate in transferring
the servicing of the Purchased Mortgage Loans to a successor servicer appointed
by Buyer in its sole discretion.

          f. If the Sellers should discover that, for any reason whatsoever, the
Sellers or any entity responsible to the Sellers for managing or servicing any
such Purchased Mortgage Loan has failed to perform fully the Sellers'
obligations under the Program Agreements or any of the obligations of such
entities with respect to the Purchased Mortgage Loans, the Sellers shall
promptly notify Buyer.

          13. Representations and Warranties

          a. Each Seller represents and warrants to Buyer as of the date hereof
and as of each Purchase Date for any Transaction that:

          (1) Sellers Existence. First NLC has been duly organized and is
     validly existing as a limited liability company in good standing under the
     laws of the State of Florida. NLC, Inc. has been duly organized and is
     validly existing as a corporation in good standing under the laws of the
     State of Tennessee.

          (2) Licenses. Such Seller is duly licensed or is otherwise qualified
     in each jurisdiction in which it transacts business for the business which
     it conducts and is not in default of any applicable federal, state or local
     laws, rules and regulations unless, in either instance, the failure to take
     such action is not reasonably likely (either individually or in the
     aggregate) to cause a Material Adverse Effect (hereinbefore defined) and is
     not in default of such state's applicable laws, rules and regulations. Such
     Seller has the requisite power and authority and legal right to originate
     and purchase Mortgage Loans (as applicable) and to own, sell and grant a
     lien on all of its right, title and interest in and to the Mortgage Loans,
     and to execute and deliver, engage in the transactions contemplated by, and
     perform and observe the terms and conditions of, this Agreement, each
     Program Agreement and any Transaction Request or, if applicable, Purchase
     Confirmation. Such Seller is an FHA Approved Mortgagee and VA Approved
     Lender.

          (3) Power. Such Seller has all requisite corporate or other power, and
     has all governmental licenses, authorizations, consents and approvals
     necessary to own its assets and carry on its business as now being or as
     proposed to be conducted, except where the lack of such licenses,
     authorizations, consents and approvals would not be reasonably likely to
     have a Material Adverse Effect.

          (4) Due Authorization. Such Seller has all necessary corporate or
     other power, authority and legal right to execute, deliver and perform its
     obligations under each of the Program Agreements, as applicable. This
     Agreement, such any Transaction Request, Purchase Confirmation and the
     Program Agreements have been (or, in the case of Program Agreements and any
     Transaction Request, Purchase Confirmation not yet

                                      -27-

<PAGE>

     executed, will be) duly authorized, executed and delivered by such Seller,
     all requisite action having been taken, and each is valid, binding and
     enforceable against such Seller in accordance with its terms except as such
     enforcement may be affected by bankruptcy, by other insolvency laws, or by
     general principles of equity.

          (5) Financial Statements. The Sellers have heretofore furnished to
     Buyer a copy of (a) their combined balance sheet and the balance sheets of
     its consolidated Subsidiaries for the fiscal year of the Sellers ended
     December 31, 2000 and the related consolidated statements of income and
     retained earnings and of cash flows for the Sellers and their consolidated
     Subsidiaries for such fiscal year, setting forth in each case in
     comparative form the figures for the previous year, with the opinion
     thereon of Grant Thornton, LLP and (b) their combined balance sheets and
     the balance sheets of their consolidated Subsidiaries for the quarterly
     fiscal periods of the combined Sellers ended March 31, 2001, June 30, 2001
     and September 30, 2001 and the related consolidated statements of income
     and retained earnings and of cash flows for the Sellers and their
     consolidated Subsidiaries for such quarterly fiscal periods, setting forth
     in each case in comparative form the figures for the previous year. All
     such financial statements are complete and correct and fairly present, in
     all material respects, the combined financial condition of the Sellers and
     their consolidated Subsidiaries taken as a whole and the results of their
     operations as at such dates and for such fiscal periods, all in accordance
     with GAAP applied on a consistent basis. Since December 31, 2000 there has
     been no material adverse change in the business, operations or financial
     condition of the Sellers from that set forth in said financial statements
     nor is either Seller aware of any state of facts which (without notice or
     the lapse of time) would or could result in any such material adverse
     change. Each Seller has, on the date of the statements delivered pursuant
     to this Section (the "Statement Date") no liabilities, direct or indirect,
     fixed or contingent, matured or unmatured, known or unknown, or liabilities
     for taxes, long-term leases or unusual forward or long-term commitments not
     disclosed by, or reserved against in, said balance sheet and related
     statements, and at the present time there are no material unrealized or
     anticipated losses from any loans, advances or other commitments of either
     Seller except as heretofore disclosed to Buyer in writing.

          (6) Event of Default. There exists no Event of Default under Section
     15(b) hereof, which default gives rise to a right to accelerate
     indebtedness as referenced in Section 15(b) hereof, under any mortgage,
     borrowing agreement or other instrument or agreement pertaining to
     indebtedness for borrowed money or to the repurchase of mortgage loans or
     securities.

          (7) Solvency. Each Seller is solvent and will not be rendered
     insolvent by any Transaction and, after giving effect to such Transaction,
     will not be left with an unreasonably small amount of capital with which to
     engage in its business. Neither Seller intends to incur, nor believes that
     it has incurred, debts beyond its ability to pay such debts as they mature
     and is not contemplating the commencement of insolvency, bankruptcy,
     liquidation or consolidation proceedings or the appointment of a receiver,
     liquidator, conservator, trustee or similar official in respect of such
     entity or any of its assets. The amount of consideration being received by
     the Sellers upon the sale of the Purchased Mortgage Loans to Buyer
     constitutes reasonably equivalent value and fair

                                      -28-

<PAGE>

     consideration for such Purchased Mortgage Loans. The Sellers are not
     transferring any Purchased Mortgage Loans with any intent to hinder, delay
     or defraud any of its creditors.

          (8) No Conflicts. The execution, delivery and performance by each
     Seller of this Agreement, any Transaction Request or Purchase Confirmation
     hereunder and the Program Agreements do not conflict with any term or
     provision of the certificate of incorporation or by-laws of such Seller or
     any law, rule, regulation, order, judgment, writ, injunction or decree
     applicable to such Seller of any court, regulatory body, administrative
     agency or governmental body having jurisdiction over such Seller, which
     conflict would have a Material Adverse Effect and will not result in any
     violation of any such mortgage, instrument, agreement or repurchase
     agreement.

          (9) True and Complete Disclosure. All information, reports, exhibits,
     schedules, financial statements or certificates of the Sellers, any
     Affiliate thereof or any of their officers furnished or to be furnished to
     Buyer in connection with the initial or any ongoing due diligence of the
     Sellers or any Affiliate or officer thereof, negotiation, preparation, or
     delivery of the Program Agreements are true and complete and do not omit to
     disclose any material facts necessary to make the statements herein or
     therein, in light of the circumstances in which they are made, not
     misleading. All financial statements have been prepared in accordance with
     GAAP.

          (10) Approvals. No consent, approval, authorization or order of,
     registration or filing with, or notice to any governmental authority or
     court is required under applicable law in connection with the execution,
     delivery and performance by the Sellers of this Agreement, any Transaction
     Request, Purchase Confirmation and the Program Agreements.

          (11) Litigation. There is no action, proceeding or investigation
     pending with respect to which either Seller has received service of process
     or, to the best of the Sellers' knowledge threatened against it before any
     court, administrative agency or other tribunal (A) asserting the invalidity
     of this Agreement, any Transaction, Transaction Request, Purchase
     Confirmation or any Program Agreement, (B) seeking to prevent the
     consummation of any of the transactions contemplated by this Agreement, any
     Transaction Request, Purchase Confirmation or any Program Agreement, (C)
     makes a claim individually in an amount greater than $1 million or in an
     aggregate amount greater than $3 million, (D) which requires filing with
     the Securities and Exchange Commission in accordance with the 1934 Act or
     any rules thereunder or (E) which might materially and adversely affect the
     validity of the Mortgage Loans or the performance by it of its obligations
     under, or the validity or enforceability of, this Agreement, any
     Transaction Request, Purchase Confirmation or any Program Agreement.

          (12) Material Adverse Change. There has been no material adverse
     change in the business, operations, financial conditions, properties or
     prospects of either Seller or their respective Affiliates since the date
     set forth in the most recent financial statements supplied to Buyer.

                                      -29-

<PAGE>

          (13) Ownership. Upon payment of the Purchase Price and the filing of
     the financing statement and delivery of the Mortgage Files to the Custodian
     and the Custodian's receipt of the related Request for Certification, Buyer
     shall become the sole owner of the Purchased Mortgage Loans and related
     Repurchase Assets, free and clear of all liens and encumbrances.

          (14) Underwriting Guidelines. The Underwriting Guidelines provided to
     Buyer are the true and correct Underwriting Guidelines of the Sellers.

          (15) Taxes. The Sellers and their Subsidiaries have filed all Federal
     income tax returns and all other material tax returns that are required to
     be filed by them and have paid all taxes due pursuant to such returns or
     pursuant to any assessment received by any of them, except for any such
     taxes as are being appropriately contested in good faith by appropriate
     proceedings diligently conducted and with respect to which adequate
     reserves have been provided. The charges, accruals and reserves on the
     books of the Sellers and their Subsidiaries in respect of taxes and other
     governmental charges are, in the opinion of the Sellers, adequate.

          (16) Investment Company. Neither the Sellers nor any of their
     Subsidiaries is an "investment company", or a company "controlled" by an
     "investment company," within the meaning of the Investment Company Act of
     1940, as amended.

          (17) Chief Executive Office; Jurisdiction of Organization. During the
     four months immediately preceding July 1, 2001 and on the Effective Date,
     First NLC's chief executive office, is, and has been, located at 700 W.
     Hillsboro Blvd., Suite 204, Deerfield Beach, FL 33441. On the Effective
     Date, First NLC's jurisdiction of organization is Florida. During the four
     months immediately preceding July 1, 2001, and on the Effective Date, NLC,
     Inc.'s chief executive office, is, and has been, located at 700 W.
     Hillsboro Blvd., Suite 204, Deerfield Beach, FL 33441. On the Effective
     Date, NLC, Inc.'s jurisdiction of organization is Tennessee. The Sellers
     shall provide Buyer with thirty days advance notice of any change in either
     Seller's principal offices or places of business or jurisdiction. Neither
     Seller has any trade name other than those listed on Schedule 13(a)(17).
     During the preceding five years, neither Seller has been known by or done
     business under any other name, corporate or fictitious, other than those
     listed on Schedule 13(a)(17), and has filed or had filed against it any
     bankruptcy receivership or similar petitions nor has made any assignments
     for the benefit of creditors.

          (18) Location of Books and Records. The location where each Seller
     keeps its books and records, including all computer tapes and records
     relating to the Purchased Mortgage Loans and the related Repurchase Assets
     is its chief executive office.

          (19) Adjusted Tangible Net Worth. On the Effective Date, First NLC's
     Adjusted Tangible Net Worth is not less than $5 million.

          (20) ERISA. Each Plan to which a Seller or its Subsidiaries make
     direct contributions, and, to the knowledge of the Sellers, each other Plan
     and each Multiemployer Plan, is in compliance in all material respects
     with, and has been

                                      -30-

<PAGE>

     administered in all material respects in compliance with, the applicable
     provisions of ERISA, the Code and any other Federal or State law.

          (21) Adverse Selection. The Sellers have not selected the Purchased
     Mortgage Loans in a manner so as to adversely affect Buyer's interests.

          (22) Agreements. Neither Seller nor any Subsidiary of the Sellers is a
     party to any agreement, instrument, or indenture or subject to any
     restriction materially and adversely affecting its business, operations,
     assets or financial condition, except as disclosed in the financial
     statements described in Section 13(a)(5) hereof. Neither the Sellers nor
     any Subsidiary thereof is in default in the performance, observance or
     fulfillment of any of the obligations, covenants or conditions contained in
     any agreement, instrument, or indenture which default could have a material
     adverse effect on the business, operations, properties, or financial
     condition of the Sellers as a whole. No holder of any indebtedness of the
     Sellers or of any of their Subsidiaries has given notice of any asserted
     default thereunder.

          (23) Other Indebtedness. All Indebtedness (other than Indebtedness
     evidenced by this Agreement) of Sellers existing on the date hereof is
     listed on Exhibit J hereto (the "Existing Indebtedness").

          (24) Agency Approvals. With respect to each Agency Security and to the
     extent necessary, each Seller is an FHA Approved Mortgagee and a VA
     Approved Lender. Each Seller is also, to the extent necessary, approved by
     the Secretary of Housing and Urban Development pursuant to Sections 203 and
     211 of the National Housing Act. In each such case, each Seller is in good
     standing, with no event having occurred or either Seller having any reason
     whatsoever to believe or suspect will occur prior to the issuance of the
     Agency Security or the consummation of the Take-out Commitment, as the case
     may be, including, without limitation, a change in insurance coverage which
     would either make either Seller unable to comply with the eligibility
     requirements for maintaining all such applicable approvals or require
     notification to the relevant Agency or to the Department of Housing and
     Urban Development, FHA or VA. Should either Seller for any reason cease to
     possess all such applicable approvals, or should notification to the
     relevant Agency or to the Department of Housing and Urban Development, FHA
     or VA be required, Sellers shall so notify Buyer immediately in writing.
     Each Seller has adequate financial standing, servicing facilities,
     procedures and experienced personnel necessary for the sound servicing of
     mortgage loans of the same types as may from time to time constitute
     Mortgage Loans and in accordance with Accepted Servicing Practices.

          b. With respect to every Purchased Mortgage Loan, each Seller jointly
and severally represents and warrants to Buyer as of the applicable Purchase
Date for any Transaction and each date thereafter that each representation and
warranty set forth on Schedule 1 is true and correct.

          c. The representations and warranties set forth in this Agreement
shall survive transfer of the Purchased Mortgage Loans to Buyer and shall
continue for so long as the Purchased Mortgage Loans are subject to this
Agreement. Upon discovery by either Seller,

                                      -31-

<PAGE>

Servicer or Buyer of any breach of any of the representations or warranties set
forth in this Agreement, the party discovering such breach shall promptly give
notice of such discovery to the others. Buyer has the right to require, in its
unreviewable discretion, a Seller to repurchase within 1 Business Day after
receipt of notice from Buyer any Purchased Mortgage Loan (i) for which a breach
of one or more of the representations and warranties referenced in Section 13(b)
exists and which breach has a material adverse effect on the value of such
Mortgage Loan or the interests of Buyer or (ii) which is determined by Buyer, in
its good faith discretion, to be unacceptable for inclusion in a securitization;
provided, however, that in the event that the aggregate Purchase Price of
Transactions outstanding on the date such breach is discovered by a Seller or
either Seller receives notice from the Buyer equals no more than 50% of the
Maximum Aggregate Purchase Price, the Sellers shall have three (3) Business Days
to repurchase the related Purchased Mortgage Loan.

          14. Covenants

     Each Seller jointly and severally covenants with Buyer that, during the
term of this facility:

          a. Adjusted Net Worth. For each quarter commencing after December 31,
2000, First NLC shall maintain an Adjusted Net Worth of at least $5 million.

          b. Indebtedness to Adjusted Net Worth Ratio. For each quarter
commencing after December 31, 2000, First NLC's ratio of consolidated
Indebtedness to consolidated Adjusted Net Worth shall not exceed 20:1.

          c. Litigation. The Sellers will promptly, and in any event within ten
(10) days after service of process on any of the following, give to Buyer notice
of all litigation, actions, suits, arbitrations, investigations (including,
without limitation, any of the foregoing which are threatened or pending) or
other legal or arbitrable proceedings affecting either Seller or any of its
Subsidiaries or affecting any of the Property of any of them before any
Governmental Authority that (i) questions or challenges the validity or
enforceability of any of the Program Agreements or any action to be taken in
connection with the transactions contemplated hereby, (ii) makes a claim
individually in an amount greater than $1 million or in an aggregate amount
greater than $3 million, (iii) which, individually or in the aggregate, if
adversely determined, could be reasonably likely to have a Material Adverse
Effect, or (iv) requires filing with the Office of the Comptroller of the
Currency in accordance its regulations.

          d. Prohibition of Fundamental Changes. Neither Seller shall enter into
any transaction of merger or consolidation or amalgamation, or liquidate, wind
up or dissolve itself (or suffer any liquidation, winding up or dissolution) or
sell all or substantially all of its assets; provided, that either Seller may
merge or consolidate with (a) any wholly owned subsidiary of either Seller, or
(b) any other Person if such Seller is the surviving corporation; and provided
further, that if after giving effect thereto, no Default would exist hereunder.

          e. Maintenance of Profitability. First NLC shall not permit, for any
Test Period, its consolidated Net Income for such Test Period determined on a
monthly basis, before income taxes for such Test Period and distributions made
during such Test Period, to be less than $1.00.

                                      -32-

<PAGE>

          f. Servicer; Asset Tape. Upon the occurrence of any of the following
(a) the occurrence and continuation of an Event of Default, (b) upon any
Purchased Mortgage Loan becoming an Aged Loan, (c) the fifth Business Day of
each month, or (d) upon the request of Buyer, the Sellers shall cause Servicer
to provide to Buyer, electronically, in a format mutually acceptable to Buyer
and the Sellers, an Asset Tape by no later than the Reporting Date. The Sellers
shall not cause the Mortgage Loans to be serviced by any servicer other than a
servicer expressly approved in writing by Buyer, which approval shall be deemed
granted by Buyer with respect to First NLC with the execution of this Agreement.

          g. Insurance. The Sellers or their Affiliates, will continue to
maintain, for each Seller and its Subsidiaries, insurance coverage with respect
to employee dishonesty, forgery or alteration, theft, disappearance and
destruction, robbery and safe burglary, property (other than money and
securities) and computer fraud.

          h. No Adverse Claims. Sellers warrant and will defend, and shall cause
any Servicer to defend, the right, title and interest of Buyer in and to all
Purchased Mortgage Loans and the related Repurchase Assets against all adverse
claims and demands.

          i. Assignment. Except as permitted herein, neither Seller nor any
Servicer shall sell, assign, transfer or otherwise dispose of, or grant any
option with respect to, or pledge, hypothecate or grant a security interest in
or lien on or otherwise encumber (except pursuant to the Program Agreements),
any of the Purchased Mortgage Loans or any interest therein, provided that this
Section shall not prevent any transfer of Purchased Mortgage Loans in accordance
with the Program Agreements.

          j. Security Interest. The Sellers shall do all things necessary to
preserve the Purchased Mortgage Loans and the related Repurchase Assets so that
they remain subject to a first priority perfected security interest hereunder.
Without limiting the foregoing, the Sellers will comply with all rules,
regulations and other laws of any Governmental Authority and cause the Purchased
Mortgage Loans or the related Repurchase Assets to comply with all applicable
rules, regulations and other laws. The Sellers will not allow any default for
which any Seller is responsible to occur under any Purchased Mortgage Loans or
the related Repurchase Assets or any Program Agreement and the Sellers shall
fully perform or cause to be performed when due all of its obligations under any
Purchased Mortgage Loans or the related Repurchase Assets and any Program
Agreement.

          k. Records.

          (1) The Sellers shall collect and maintain or cause to be collected
     and maintained all Records relating to the Purchased Mortgage Loans in
     accordance with industry custom and practice for assets similar to the
     Purchased Mortgage Loans, including those maintained pursuant to the
     preceding subparagraph, and all such Records shall be in either Sellers' or
     the Custodian's possession unless Buyer otherwise approves. Neither Seller
     will allow any such papers, records or files that are an original or an
     only copy to leave Custodian's possession, except for individual items
     removed in connection with servicing a specific Mortgage Loan, in which
     event the Sellers will obtain or cause to be obtained a receipt from a
     financially responsible person for any such paper, record

                                      -33-

<PAGE>

     or file. Each Seller or the Servicer of the Purchased Mortgage Loans will
     maintain all such Records not in the possession of Custodian in good and
     complete condition in accordance with industry practices for assets similar
     to the Purchased Mortgage Loans and preserve them against loss.

          (2) For so long as Buyer has an interest in or lien on any Purchased
     Mortgage Loan, the applicable Seller will hold or cause to be held all
     related Records in trust for Buyer. The Sellers shall notify, or cause to
     be notified, every other party holding any such Records of the interests
     and liens in favor of Buyer granted hereby.

          (3) Upon reasonable advance notice from Custodian or Buyer, the
     applicable Seller shall (x) make any and all such Records available to
     Custodian or Buyer to examine any such Records, either by their own
     officers or employees, or by agents or contractors, or both, and make
     copies of all or any portion thereof, and (y) permit Buyer or its
     authorized agents to discuss the affairs, finances and accounts of such
     Seller with its chief operating officer and chief financial officer and to
     discuss the affairs, finances and accounts of such Seller with its
     independent certified public accountants.

          l. Books. Each Seller shall keep or cause to be kept in reasonable
detail books and records of account of its assets and business and shall clearly
reflect therein the transfer of Purchased Mortgage Loans to Buyer.

          m. Approvals. The Sellers shall maintain all licenses, permits or
other approvals necessary for the Sellers to conduct their business and to
perform their obligations under the Program Agreements, and the Sellers shall
conduct their business strictly in accordance with applicable law.

          n. Material Change in Business. Sellers shall not make any material
change in the nature of its business as carried on at the date hereof.

          o. Underwriting Guidelines. Without the prior written consent of
Buyer, Sellers shall not amend or otherwise modify the Underwriting Guidelines.
Without limiting the foregoing, in the event that either Seller makes any
amendment or modification to the Underwriting Guidelines, such Seller shall
promptly deliver to Buyer a complete copy of the amended or modified
Underwriting Guidelines.

          p. Distributions. If an Event of Default has occurred and is
continuing, neither Seller shall pay any dividends with respect to any capital
stock or other equity interests in such entity, whether now or hereafter
outstanding, or make any other distribution in respect thereof, either directly
or indirectly, whether in cash or property or in obligations of such Seller.

          q. Applicable Law. Each Seller shall comply with the requirements of
all applicable laws, rules, regulations and orders of any Governmental
Authority.

          r. Existence. Each Seller shall preserve and maintain its legal
existence and all of its material rights, privileges, licenses and franchises.

                                      -34-

<PAGE>

          s. Chief Executive Office; Jurisdiction of Organization. Neither
Seller shall move its chief executive office from the address referred to in
Section 13(a)(17) or change its jurisdiction of organization from the
jurisdiction referred to in Section 13(a)(17) unless it shall have provided
Buyer 30 days' prior written notice of such change.

          t. Taxes. Each Seller shall pay and discharge all taxes, assessments
and governmental charges or levies imposed on it or on its income or profits or
on any of its property prior to the date on which penalties attach thereto,
except for any such tax, assessment, charge or levy the payment of which is
being contested in good faith and by proper proceedings and against which
adequate reserves are being maintained.

          u. Transactions with Affiliates. Neither Seller will enter into any
transaction, including, without limitation, any purchase, sale, lease or
exchange of property or the rendering of any service, with any Affiliate unless
such transaction is (a) otherwise permitted under the Program Agreements, (b) in
the ordinary course of such Seller's business and (c) upon fair and reasonable
terms no less favorable to such Seller than it would obtain in a comparable
arm's length transaction with a Person which is not an Affiliate, or make a
payment that is not otherwise permitted by this Section to any Affiliate.

          v. Guarantees. Neither Seller shall create, incur, assume or suffer to
exist any Guarantees, except (i) to the extent reflected in such Seller's
financial statements or notes thereto and (ii) to the extent the aggregate
Guarantees of both Sellers do not exceed $2 million.

          w. Indebtedness. Sellers shall not incur any additional material
Indebtedness in excess of $100,000 in the aggregate (other than (i) the Existing
Indebtedness in amounts not to exceed the amounts specified on Exhibit J hereto
and (ii) usual and customary accounts payable for a mortgage company) without
the prior written consent of Buyer.

          x. Hedging. Each Seller has entered into Interest Rate Protection
Agreements with respect to the Conforming Mortgage Loans and Jumbo Mortgage
Loans, having terms with respect to protection against fluctuations in interest
rates acceptable to Buyer in its sole discretion.

          y. True and Correct Information. All information, reports, exhibits,
schedules, financial statements or certificates of each Seller, any Affiliate
thereof or any of their officers furnished to Buyer hereunder and during Buyer's
diligence of such Seller are and will be true and complete and do not omit to
disclose any material facts necessary to make the statements herein or therein,
in light of the circumstances in which they are made, not misleading. All
required financial statements, information and reports delivered by each Seller
to Buyer pursuant to this Agreement shall be prepared in accordance with U.S.
GAAP, or, if applicable, to SEC filings, the appropriate SEC accounting
regulations.

          z. Agency Approvals; Servicing. First NLC shall service all Purchased
Mortgage Loans which are Committed Mortgage Loans in accordance with the
applicable agency guide. Should either Seller, for any reason, cease to possess
all such applicable Agency Approvals, or should notification to the relevant
Agency or to the Department of Housing and Urban Development, FHA or VA be
required, such Seller shall so notify Buyer immediately in

                                      -35-

<PAGE>

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.
Sellers have adequate financial standing, servicing facilities, procedures and
experienced personnel necessary for the sound servicing of mortgage loans of the
same types as may from time to time constitute Mortgage Loans and in accordance
with Accepted Servicing Practices.

          aa. Take-out Payments. With respect to each Committed Mortgage Loan,
Sellers shall arrange that all payments under the related Take-out Commitment
shall be paid directly to Buyer at the account set forth in Section 9 hereof, or
to an account approved by Buyer in writing prior to such payment. With respect
to any Agency Take-out Commitment, if applicable, (1) with respect to the wire
transfer instructions as set forth in Freddie Mac Form 987 (Wire Transfer
Authorization for a Cash Warehouse Delivery) such wire transfer instructions are
identical to Buyer's wire instructions or Buyer has approved such wire transfer
instructions in writing in its sole discretion, or (2) the Payee Number set
forth on Fannie Mae Form 1068 (Fixed-Rate, Graduated-Payment, or Growing-Equity
Mortgage Loan Schedule) or Fannie Mae Form 1069 (Adjustable-Rate Mortgage Loan
Schedule), as applicable, is identical to the Payee Number that has been
identified by Buyer in writing as Buyer's Payee Number or Buyer has previously
approved the related Payee Number in writing in its sole discretion; with
respect to any Take-out Commitment with an Agency, the applicable agency
documents list Buyer as sole subscriber, unless otherwise agreed to in writing
by Buyer, in Buyer's sole discretion.

          bb. No Pledge. Neither Seller shall pledge, transfer or convey any
security interest in the Collection Account to any Person without the express
written consent of Buyer.

          15. Events of Default

          Each of the following shall constitute an "Event of Default"
hereunder:

          a. Payment Failure. Failure of any Seller to (i) make any payment of
Price Differential or Repurchase Price or any other sum which has become due, on
a Price Differential Payment Date or a Repurchase Date or otherwise, whether by
acceleration or otherwise, under the terms of this Agreement, any other
warehouse and security agreement or any other document evidencing or securing
indebtedness of Sellers to Buyer or to any affiliate of Buyer, or (ii) cure any
Margin Deficit when due pursuant to Section 6 hereof.

          b. Cross Default, (i) Any Seller or any of such Seller's Affiliates,
individually or in the aggregate, shall be in default under (i) any Indebtedness
of Seller or of such Affiliate in an aggregate amount of more than $500,000
which default (1) involves the failure to pay a matured obligation, or (2)
permits the acceleration of the maturity of obligations by any other party to or
beneficiary with respect to such Indebtedness, or (ii) any other contract to
which any Seller or such Affiliate, individually or in the aggregate, is a party
in an aggregate amount of more than $500,000 which default (1) involves the
failure to pay a matured obligation, or (2) permits the acceleration of the
maturity of obligations by any other party to or beneficiary of such contract.

                                      -36-

<PAGE>

          c. Assignment. Assignment or attempted assignment by any Seller of
this Agreement or any rights hereunder without first obtaining the specific
written consent of Buyer, or the granting by any Seller of any security
interest, lien or other encumbrances on any Purchased Mortgage Loans to any
person other than Buyer.

          d. Insolvency. An Act of Insolvency shall have occurred with respect
to any Seller, or any of its Affiliates.

          e. Material Adverse Change. Any material adverse change in the
Property, business, financial condition or operations of any Seller or any of
their Affiliates shall occur, in each case as determined by Buyer in its sole
good faith discretion, or any other condition shall exist which, in Buyer's sole
good faith discretion, constitutes a material impairment of any Seller's ability
to perform its obligations under this Agreement or any other Program Agreement.

          f. Breach of Financial Representation or Covenant or Obligation. A
breach by any Seller of any of the representations, warranties or covenants or
obligations set forth in Sections 13(a)(l), 13(a)(7), 13(a)(12), 13(a)(19),
13(a)(23), 14a, 14b, 14d, 14e, 14r, 14v, 14w or 14bb of this Agreement.

          g. Breach of Non-Financial Representation or Covenant. A breach by any
Seller of any other material representation, warranty or covenant set forth in
this Agreement (and not otherwise specified in Section 15(f) above) breach is
not cured within five (5) Business Days(other than the representations and
warranties set forth in Schedule 1, which shall be considered solely for the
purpose of determining the Market Value and the obligation to repurchase such
Mortgage Loan unless (i) such Seller shall have made any such representations
and warranties with knowledge that they were materially false or misleading at
the time made, (ii) any such representations and warranties have been determined
by Buyer in its sole discretion to be materially false or misleading on a
regular basis, or (iii) Buyer, in its sole discretion, determines that such
breach of a material representation, warranty or covenant materially and
adversely affects (A) the condition (financial or otherwise) of any Seller, its
Subsidiaries or Affiliates; or (B) Buyer's determination to enter into this
Agreement or Transactions with any Seller, then such breach shall constitute an
immediate Event of Default and Sellers shall have no cure right hereunder);
provided, however, that in the sole discretion of Buyer, the Sellers shall have
up to ten (10) Business Days to cure such breach in the event that Buyer
determines that (a) such breach is capable of being cured in such time period,
(b) the related Seller is diligently working to cure such breach and is able to
provide evidence thereof to the Buyer and (c) the breach will not have Material
Adverse Effect on either Seller.

          h. Change of Control. The occurrence of a Change in Control.

          i. Failure to Transfer. Any Seller fails to transfer the Purchased
Mortgage Loans to Buyer on the applicable Purchase Date (provided Buyer has
tendered the related Purchase Price).

          j. Judgment. A final judgment or judgments for the payment of money in
excess of $2.5 million in the aggregate shall be rendered against any Seller or
any of its Affiliates by one or more courts, administrative tribunals or other
bodies having jurisdiction and the same

                                      -37-

<PAGE>

shall not be satisfied, discharged (or provision shall not be made for such
discharge) or bonded, or a stay of execution thereof shall not be procured,
within 30 days from the date of entry thereof.

          k. Government Action. Any Governmental Authority or any person, agency
or entity acting or purporting to act under governmental authority shall have
taken any action to condemn, seize or appropriate, or to assume custody or
control of, all or any substantial part of the Property of any Seller or any
Affiliate, or shall have taken any action to displace the management of any
Seller or any Affiliates or to curtail its authority in the conduct of the
business of any Seller or any Affiliate, or takes any action in the nature of
enforcement to remove, limit or restrict the approval of any Seller or Affiliate
as an issuer, buyer or a seller/servicer of Mortgage Loans or securities backed
thereby, and such action provided for in this subparagraph (1) shall not have
been discontinued or stayed within 30 days.

          l. Inability to Perform. An officer of any Seller shall admit in
writing its inability to, or its intention not to, perform any of the Seller's
Obligations hereunder.

          m. Security Interest. This Agreement shall for any reason cease to
create a valid, first priority security interest in any material portion of the
Purchased Mortgage Loans purported to be covered hereby.

          n. Financial Statements. Any Seller's audited annual financial
statements or the notes thereto or other opinions or conclusions stated therein
shall be qualified or limited by reference to the status of such Seller as a
"going concern" or a reference of similar import.

          An Event of Default shall be deemed to be continuing unless expressly
waived by Buyer in writing.

          16. Remedies Upon Default

          In the event that an Event of Default shall have occurred:

          a. Buyer may, at its option (which option shall be deemed to have been
exercised immediately upon the occurrence of an Act of Insolvency), declare an
Event of Default to have occurred hereunder and, upon the exercise or deemed
exercise of such option, the Repurchase Date for each Transaction hereunder
shall, if it has not already occurred, be deemed immediately to occur (except
that, in the event that the Purchase Date for any Transaction has not yet
occurred as of the date of such exercise or deemed exercise, such Transaction
shall be deemed immediately canceled). Buyer shall (except upon the occurrence
of an Act of Insolvency of either Seller or any Affiliate) give written notice
to the Sellers of the exercise of such option as promptly as practicable.

          b. If Buyer exercises or is deemed to have exercised the option
referred to in subparagraph (a) of this Section, (i) the Sellers' obligations in
such Transactions to repurchase all Purchased Mortgage Loans, at the Repurchase
Price therefor on the Repurchase Date determined in accordance with subparagraph
(a) of this Section, shall thereupon become immediately due and payable, (ii)
all Income paid after such exercise or deemed exercise shall be retained by
Buyer and applied, in Buyer's sole discretion, to the aggregate unpaid
Repurchase

                                      -38-

<PAGE>

Prices for all outstanding Transactions and any other amounts owing by a Seller
hereunder, and (iii) each Seller shall immediately deliver to Buyer the Mortgage
Files relating to any Purchased Mortgage Loans subject to such Transactions then
in such Seller's possession or control.

          c. Buyer also shall have the right to obtain physical possession, and
to commence an action to obtain physical possession, of all Records and files of
the Sellers relating to the Purchased Mortgage Loans and all documents relating
to the Purchased Mortgage Loans (including, without limitation, any legal,
credit or servicing files with respect to the Purchased Mortgage Loans) which
are then or may thereafter come in to the possession of the Sellers or any third
party acting for the Sellers. To obtain physical possession of any Purchased
Mortgage Loans held by Custodian, Buyer shall present to Custodian a Trust
Receipt and Certification. Buyer shall be entitled to specific performance of
all agreements of the Sellers contained in this Agreement.

          d. Buyer shall have the right to direct all servicers then servicing
any Purchased Mortgage Loans to remit all collections thereon to 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 Buyer. Buyer shall also have the right to terminate any one or all of
the servicers then servicing any Purchased Mortgage Loans with or without cause.
In addition, Buyer shall have the right to immediately sell the Purchased
Mortgage Loans. Such disposition of Purchased Mortgage Loans may be, at Buyer's
option, on either a servicing-released or a servicing-retained basis. Buyer
shall be entitled to place the Purchased Mortgage Loans in a pool for issuance
of mortgage-backed securities at the then-prevailing price for such securities
and to sell such securities for such prevailing price in the open market. Buyer
shall also be entitled to sell any or all of such Mortgage Loans individually
for the prevailing price. Buyer shall provide the Sellers with written notice of
any action it takes pursuant to this Section with regard to Purchased Mortgage
Loans.

          e. Upon the happening of one or more Events of Default, Buyer may
apply any proceeds from the liquidation of the Purchased Mortgage Loans to the
Repurchase Prices hereunder and all other Obligations in the manner Buyer deems
appropriate in its sole discretion.

          f. The Sellers shall be liable to Buyer for (i) the amount of all
reasonable legal or other expenses (including, without limitation, all costs and
expenses of Buyer in connection with the enforcement of this Agreement or any
other agreement evidencing a Transaction, whether in action, suit or litigation
or bankruptcy, insolvency or other similar proceeding affecting creditors'
rights generally, further including, without limitation, the reasonable fees and
expenses of counsel (including the costs of internal counsel of Buyer) incurred
in connection with or as a result of an Event of Default, (ii) damages in an
amount equal to the cost (including all fees, expenses and commissions) of
entering into replacement transactions and entering into or terminating hedge
transactions in connection with or as a result of an Event of Default, and (iii)
any other loss, damage, cost or expense directly arising or resulting from the
occurrence of an Event of Default in respect of a Transaction.

          g. To the extent permitted by applicable law, the Sellers shall be
liable to Buyer for interest on any amounts owing by the Sellers hereunder, from
the date the Sellers become liable for such amounts hereunder until such amounts
are (i) paid in full by the Sellers or

                                      -39-

<PAGE>

(ii) satisfied in full by the exercise of Buyer's rights hereunder. Interest on
any sum payable by the Sellers under this Section 16(g) shall be at a rate equal
to the Post-Default Rate.

          h. Buyer shall have, in addition to its rights hereunder, any rights
otherwise available to it under any other agreement or applicable law.

          i. Buyer may exercise one or more of the remedies available to Buyer
immediately upon the occurrence of an Event of Default and, except to the extent
provided in subsections (a) and (d) of this Section, at any time thereafter
without notice to the Sellers. All rights and remedies arising under this
Agreement as amended from time to time hereunder are cumulative and not
exclusive of any other rights or remedies which Buyer may have.

          j. Buyer may enforce its rights and remedies hereunder without prior
judicial process or hearing, and each Seller hereby expressly waives any
defenses such Seller might otherwise have to require Buyer to enforce its rights
by judicial process. Each Seller also waives any defense (other than a defense
of payment or performance) such Seller might otherwise have arising from the use
of nonjudicial process, enforcement and sale of all or any portion of the
Purchased Mortgage Loans, or from any other election of remedies. Each Seller
recognizes that nonjudicial remedies are consistent with the usages of the
trade, are responsive to commercial necessity and are the result of a bargain at
arm's length.

          k. Buyer shall have the right to perform reasonable due diligence with
respect to Sellers and the Mortgage Loans, which review shall be at the expense
of Sellers.

          17. Reports

          a. Notices. The Sellers shall furnish to Buyer (x) promptly, copies of
any material and adverse notices (including, without limitation, notices of
defaults, breaches, potential defaults or potential breaches) and any material
financial information that is not otherwise required to be provided by the
Sellers hereunder which is given to the Sellers' lenders, (y) immediately,
notice of the occurrence of any Event of Default hereunder or default or breach
by the Sellers or Servicer of any obligation under any Program Agreement or any
material contract or agreement of the Sellers or Servicer or the occurrence of
any event or circumstance that such party reasonably expects has resulted in, or
will, with the passage of time, result in, a Material Adverse Effect or an Event
of Default or such a default or breach by such party and (z) the following:

          (1) as soon as available and in any event within forty-five (45)
     calendar days after the end of each quarter, the unaudited consolidated and
     consolidating balance sheets of the Sellers as at the end of such period
     and the related unaudited consolidated statements of income and retained
     earnings and of cash flows for the Sellers for such period and the portion
     of the fiscal year through the end of such period, accompanied by a
     certificate of a Responsible Officer of Sellers, which certificate shall
     state that said combined consolidated and consolidating financial
     statements fairly present in all material respects the combined
     consolidated and consolidating financial condition and results of
     operations of Sellers in accordance with GAAP, consistently applied, as at
     the end of, and for, such period (subject to normal year-end adjustments);

                                      -40-

<PAGE>

          (2) as soon as available and in any event within ninety (90) days
     after the end of each fiscal year of Sellers, the combined consolidated and
     consolidating balance sheets of Sellers as at the end of such fiscal year
     and the combined related consolidated and consolidating statements of
     income and retained earnings and of cash flows for the Sellers for such
     year, setting forth in each case in comparative form the figures for the
     previous year, accompanied by an opinion thereon of independent certified
     public accountants of recognized national standing, which opinion and the
     scope of audit shall be acceptable to Buyer in its sole discretion, shall
     have no "going concern" qualification and shall state that said
     consolidated and consolidating financial statements fairly present the
     consolidated and consolidating financial condition and results of
     operations of Sellers as at the end of, and for, such fiscal year in
     accordance with GAAP;

          (3) such other prepared statements that Buyer may reasonably request;

          (4) if applicable, copies of any 10-Ks, 10-Qs, registration statements
     and other "corporate finance" SEC filings (other than 8-Ks) by either
     Seller, within 5 Business Days of their filing with the SEC; provided,
     that, the Sellers or any Affiliate will provide Buyer and Credit Suisse
     First Boston Corporation with a copy of the annual 10-K filed with the SEC
     by the Sellers or their affiliates, no later than 90 days after the end of
     the year;

          (5) from time to time such other information regarding the financial
     condition, operations, or business of the Sellers as Buyer may reasonably
     request;

          (6) as soon as reasonably possible, and in any event within thirty
     (30) days after a Responsible Officer of the Sellers has knowledge of the
     occurrence of any Event of Termination, stating the particulars of such
     Event of Termination in reasonable detail;

          (7) As soon as reasonably possible, notice of any of the following
     events:

               (a) change in the insurance coverage required of any Seller,
          Servicer or any other Person pursuant to any Program Agreement, with a
          copy of evidence of same attached;

               (b) any material dispute, litigation, investigation, proceeding
          or suspension between any Seller or Servicer, on the one hand, and any
          Governmental Authority or any Person;

               (c) any material change in accounting policies or financial
          reporting practices of any Seller or Servicer;

               (d) with respect to any Purchased Mortgage Loan, immediately upon
          receipt of notice or knowledge thereof, that the underlying Secured
          Property has been damaged by waste, fire, earthquake or earth
          movement, windstorm, flood, tornado or other casualty, or otherwise
          damaged so as to affect adversely the value of such Mortgaged Loan;

                                      -41-

<PAGE>

               (e) any material issues raised upon examination of any Seller or
          any Seller's facilities by any Governmental Authority;

               (f) promptly upon receipt of notice or knowledge of (i) any
          default related to any Repurchase Asset, (ii) any lien or security
          interest (other than security interests created hereby or by the other
          Program Agreements) on, or claim asserted against, any of the
          Purchased Mortgage Loans; and

               (g) any other event, circumstance or condition that has resulted,
          or has a possibility of resulting, in a Material Adverse Effect with
          respect to any Seller or Servicer.

          b. Officer's Certificates. The Sellers will furnish to Buyer, at the
time the Sellers furnish each set of financial statements pursuant to Section
17(a)(l) or (2) above, a certificate of a Responsible Officer of Sellers in the
form of Exhibit D hereto.

          c. Mortgage Loan Reports. The Sellers will furnish to Buyer monthly
electronic Mortgage Loan performance data, including, without limitation,
delinquency reports (i.e., delinquency, foreclosure and net charge-off reports).

          d. Asset Tape. The Sellers shall provide to Buyer, electronically, in
a format mutually acceptable to Buyer and the Sellers, an Asset Tape by no later
than the Reporting Date.

          e. Other. The Sellers shall deliver to Buyer any other reports or
information reasonably requested by Buyer or as otherwise required pursuant to
this Agreement.

          18. Repurchase Transactions

          Buyer may, in its sole election, engage in repurchase transactions
with the Purchased Mortgage Loans or otherwise pledge, hypothecate, assign,
transfer or otherwise convey the Purchased Mortgage Loans with a counterparty of
Buyer's choice. Unless an Event of Default shall have occurred, no such
transaction shall relieve Buyer of its obligations to transfer Purchased
Mortgage Loans to the Sellers pursuant to Section 4 or 6 hereof, or of Buyer's
obligation to credit or pay Income to, or apply Income to the obligations of,
the Sellers pursuant to Section 7 hereof. In the event Buyer engages in a
repurchase transaction with any of the Purchased Mortgage Loans or otherwise
pledges or hypothecates any of the Purchased Mortgage Loans, Buyer shall have
the right to assign to Buyer's counterparty any of the applicable
representations or warranties herein and the remedies for breach thereof, as
they relate to the Purchased Mortgage Loans that are subject to such repurchase
transaction.

          19. Single Agreement

          Buyer and the Sellers acknowledge that, and have entered hereunto, and
will enter into each Transaction hereunder, in consideration of and in reliance
upon the fact that, all Transactions hereunder constitute a single business and
contractual relationship and have been made in consideration of each other.
Accordingly, Buyer and each Seller agrees (i) to perform all of its obligations
in respect of each Transaction hereunder, and that a default in the performance
of any such obligations shall constitute a default by it in respect of all
Transactions

                                      -42-

<PAGE>

hereunder, (ii) that each of them shall be entitled to set-off claims and apply
property held by them in respect of any Transaction against obligations owing to
them in respect of any other Transactions hereunder and (iii) that payments,
deliveries and other transfers made by either of them in respect of any
Transaction shall be deemed to have been made in consideration of payments,
deliveries and other transfers in respect of any other Transactions hereunder,
and the obligations to make any such payments, deliveries and other transfers
may be applied against each other and netted.

          20. Notices and Other Communications

          Any and all notices (with the exception of Transaction Requests or
Purchase Confirmations, which shall be delivered via facsimile only),
statements, demands or other communications hereunder may be given by a party to
the other by mail, facsimile, messenger or otherwise to the address specified
below, or so sent to such party at any other place specified in a notice of
change of address hereafter received by the other. All notices, demands and
requests hereunder may be made orally, to be confirmed promptly in writing, or
by other communication as specified in the preceding sentence.

          If to Sellers:

               First NLC Financial Services, LLC
               700 W. Hillsboro Blvd., Suite 204
               Deerfield Beach, FL 33441
               Attention: Jeffrey M. Henschel
               Phone Number: 954-246-5050
               Fax Number: 954-420-5470

               NLC, Inc.
               700 W. Hillsboro Blvd., Suite 204
               Deerfield Beach, FL 33441
               Attention: Jeffrey M. Henschel
               Phone Number: 954-246-5050
               Fax Number: 954-420-5470

          If to Buyer:

          For Transaction Requests and Purchase Confirmations:

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

                                      -43-

<PAGE>

          For all other Notices:

               Credit Suisse First Boston Mortgage Capital LLC
               302 Carnegie Center, 2nd Floor
               Princeton, NJ 08540
               Attention: Gary Timmerman
                          Terry Farley

          with a copy to:

               Credit Suisse First Boston Mortgage Capital LLC
               Eleven Madison Avenue
               New York, NY 10010
               Attention: Legal Department

          21. Entire Agreement; Severability

          This Agreement shall supersede any existing agreements between the
parties containing general terms and conditions for repurchase transactions.
Each provision and agreement herein shall be treated as separate and independent
from any other provision or agreement herein and shall be enforceable
notwithstanding the unenforceability of any such other provision or agreement.
Each provision and agreement herein shall be treated as separate and independent
from any other provision or agreement herein and shall be enforceable
notwithstanding the unenforceability of any such other provision or agreement.

          22. Non assignability

          The Program Agreements are not assignable by either Seller. Buyer may
from time to time assign all or a portion of its rights and obligations under
this Agreement and the Program Agreements upon five (5) days prior written
notice to the Sellers; provided, however that Buyer shall maintain, for review
by the Sellers upon written request, a register of assignees and a copy of an
executed assignment and acceptance by Buyer and assignee ("Assignment and
Acceptance"), specifying the percentage or portion of such rights and
obligations assigned. Upon such assignment, (a) such assignee shall be a party
hereto and to each Program Agreement to the extent of the percentage or portion
set forth in the Assignment and Acceptance, and shall succeed to the applicable
rights and obligations of Buyer hereunder, and (b) Buyer shall, to the extent
that such rights and obligations have been so assigned by it to either (i) an
Affiliate of Buyer which assumes the obligations of Buyer or (ii) to another
Person approved by the Sellers (such approval not to be unreasonably withheld)
which assumes the obligations of Buyer, be released from its obligations
hereunder and under the Program Agreements. Unless otherwise stated in the
Assignment and Acceptance, the Sellers shall continue to take directions solely
from Buyer unless otherwise notified by Buyer in writing. Buyer may distribute
to any prospective assignee any document or other information delivered to Buyer
by either Seller.

                                      -44-

<PAGE>

          23. Set-off

          In addition to any rights and remedies of Buyer provided by law, 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 Buyer or any branch or agency thereof to or for the credit or the
account of the Sellers. Buyer agrees promptly to notify the Sellers after any
such set-off and application made by Buyer; provided, that the failure to give
such notice shall not affect the validity of such set-off and application.

          24. Binding Effect; Governing Law; Jurisdiction

          a. This Agreement shall be binding and inure to the benefit of the
parties hereto and their respective successors and permitted assigns. The
Sellers acknowledges that the obligations of Buyer hereunder or otherwise are
not the subject of any guaranty by, or recourse to, any direct or indirect
parent or other Affiliate of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

          b. EACH SELLER HEREBY WAIVES TRIAL BY JURY. EACH SELLER HEREBY
IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF
NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS IN ANY ACTION OR
PROCEEDING. EACH SELLER HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION IT MAY HAVE
TO, EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW
YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK,
WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM
AGREEMENTS.

          25. No Waivers, Etc.

          No express or implied waiver of any Event of Default by either party
shall constitute a waiver of any other Event of Default and no exercise of any
remedy hereunder by any party shall constitute a waiver of its right to exercise
any other remedy hereunder. No modification or waiver of any provision of this
Agreement and no consent by any party to a departure herefrom shall be effective
unless and until such shall be in writing and duly executed by both of the
parties hereto. Without limitation on any of the foregoing, the failure to give
a notice pursuant to Section 6(a), 16(a) or otherwise, will not constitute a
waiver of any right to do so at a later date.

                                      -45-

<PAGE>

          26. Intent

          a. The parties recognize that each Transaction is a "repurchase
agreement" as that term is defined in Section 101 of Title 11 of the United
States Code, as amended (except insofar as the type of Purchased Mortgage Loans
subject to such Transaction or the term of such Transaction would render such
definition inapplicable), and a "securities contract" as that term is defined in
Section 741 of Title 11 of the United States Code, as amended (except insofar as
the type of assets subject to such Transaction would render such definition
inapplicable).

          b. It is understood that either party's right to liquidate Purchased
Mortgage Loans delivered to it in connection with Transactions hereunder or to
exercise any other remedies pursuant to Section 16 hereof is a contractual right
to liquidate such Transaction as described in Sections 555 and 559 of Title 11
of the United States Code, as amended.

          c. The parties agree and acknowledge that if a party hereto is an
"insured depository institution," as such term is defined in the Federal Deposit
Insurance Act, as amended ("FDIA"), then each Transaction hereunder is a
"qualified financial contract," as that term is defined in FDIA and any rules,
orders or policy statements thereunder (except insofar as the type of assets
subject to such Transaction would render such definition inapplicable).

          d. It is understood that this Agreement constitutes a "netting
contract" as defined in and subject to Title IV of the Federal Deposit Insurance
Corporation Improvement Act of 1991 ("FDICIA") and each payment entitlement and
payment obligation under any Transaction hereunder shall constitute a "covered
contractual payment entitlement" or "covered contractual payment obligation",
respectively, as defined in and subject to FDICIA (except insofar as one or both
of the parties is not a "financial institution" as that term is defined in
FDICIA).

          27. Disclosure Relating to Certain Federal Protections

          The parties acknowledge that they have been advised that:

          a. in the case of Transactions in which one of the parties is a broker
or dealer registered with the SEC under Section 15 of the 1934 Act, the
Securities Investor Protection Corporation has taken the position that the
provisions of the SIPA do not protect the other party with respect to any
Transaction hereunder;

          b. in the case of Transactions in which one of the parties is a
government securities broker or a government securities dealer registered with
the SEC under Section 15C of the 1934 Act, SIPA will not provide protection to
the other party with respect to any Transaction hereunder; and

          c. in the case of Transactions in which one of the parties is a
financial institution, funds held by the financial institution pursuant to a
Transaction hereunder are not a deposit and therefore are not insured by the
Federal Deposit Insurance Corporation or the National Credit Union Share
Insurance Fund, as applicable.

                                      -46-

<PAGE>

          28. Power of Attorney

          Each Seller hereby authorizes Buyer to file such financing statement
or statements relating to the Purchased Mortgage Loans without such Seller's
signature thereon as Buyer, at its option, may deem appropriate. Each Seller
hereby appoints Buyer as such Seller's agent and attorney-in-fact to execute any
such financing statement or statements in such Seller's name and to perform all
other acts which Buyer deems appropriate to perfect and continue its ownership
interest in and/or the security interest granted hereby, if applicable, and to
protect, preserve and realize upon the Purchased Mortgage Loans, including, but
not limited to, the right to endorse notes, complete blanks in documents,
transfer servicing, and sign assignments on behalf of such Seller as its agent
and attorney-in-fact. This agency and power of attorney is coupled with an
interest and is irrevocable without Buyer's consent. Notwithstanding the
foregoing, the power of attorney hereby granted may be exercised only during the
occurrence and continuance of any Event of Default hereunder. The Sellers shall
pay the filing costs for any financing statement or statements prepared pursuant
to this Section 28.

          29. Buyer May Act Through Affiliates

          Buyer may, from time to time, designate one or more affiliates for the
purpose of performing any action hereunder.

          30. Indemnification; Obligations

          a. Each Seller agrees to hold Buyer and each of its respective
Affiliates and their officers, directors, employees, agents and advisors (each,
an "Indemnified Party") harmless from and indemnify each Indemnified Party (and
will reimburse each Indemnified Party as the same is incurred) against all
liabilities, losses, damages, judgments, costs and expenses (including, without
limitation, reasonable fees and expenses of counsel) of any kind which may be
imposed on, incurred by, or asserted against any Indemnified Party relating to
or arising out of this Agreement, any Transaction Request, Purchase
Confirmation, any Program Agreement or any transaction contemplated hereby or
thereby resulting from anything other than the Indemnified Party's gross
negligence or willful misconduct. Each Seller also agrees to reimburse each
Indemnified Party for all reasonable expenses in connection with the enforcement
of this Agreement and the exercise of any right or remedy provided for herein,
any Transaction Request, Purchase Confirmation and any Program Agreement,
including, without limitation, the reasonable fees and disbursements of counsel.
Each Seller's agreements in this Section 30 shall survive the payment in full of
the Repurchase Price and the expiration or termination of this Agreement. Each
Seller hereby acknowledges that its obligations hereunder are recourse
obligations of such Seller are not limited to recoveries each Indemnified Party
may have with respect to the Purchased Mortgage Loans. Each Seller also agrees
not to assert any claim against Buyer or any of its Affiliates, or any of their
respective officers, directors, employees, attorneys and agents, on any theory
of liability, for special, indirect, consequential or punitive damages arising
out of or otherwise relating to the facility established hereunder, the actual
or proposed use of the proceeds of the Transactions, this Agreement or any of
the transactions contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT
TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT
NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

                                      -47-

<PAGE>

          b. Without limiting the provisions of Section 30(a) hereof, if the
Sellers fail to pay when due any costs, expenses or other amounts payable by it
under this Agreement, including, without limitation, fees and expenses of
counsel and indemnities, such amount may be paid on behalf of the Sellers by
Buyer, in its sole discretion.

          31. Counterparts

          This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, and all such counterparts shall
together constitute one and the same instrument.

          32. Confidentiality

          This Agreement and its terms, provisions, supplements and amendments,
and notices hereunder, are proprietary to Buyer and Agent and shall be held by
the Sellers in strict confidence and shall not be disclosed to any third party
without the written consent of Buyer except for (i) disclosure to the Sellers'
direct and indirect affiliates and Subsidiaries, attorneys or accountants, but
only to the extent such disclosure is necessary and such parties agree to hold
all information in strict confidence, or (ii) disclosure required by law, rule,
regulation or order of a court or other regulatory body.

          33. Recording of Communications

          Buyer and the Sellers have the right (but not the obligation) from
time to time to make or cause to be made tape recordings of communications
between its employees and those of the other party with respect to Transactions.
Buyer and the Sellers consent to the admissibility of such tape recordings in
any court, arbitration, or other proceedings. The parties agree that a duly
authenticated transcript of such a tape recording shall be deemed to be a
writing conclusively evidencing the parties' agreement.

          34. Non-Utilization Fee

          No later than 5th Business Day following the end of each calendar
month, the Sellers shall pay in immediately available funds to Buyer a
non-refundable fee calculated in accordance with the formula set forth in the
schedule attached hereto as Annex I. Such fee shall commence and accrue after
the 60th day following the Closing Date. Such payment shall be made in Dollars,
in immediately available funds, without deduction, set-off or counterclaim, to
Buyer at such account designated by Buyer.

          35. Periodic Due Diligence Review

          Each Seller acknowledges that Buyer has the right to perform
continuing due diligence reviews with respect to the Mortgage Loans, for
purposes of verifying compliance with the representations, warranties and
specifications made hereunder, or otherwise, and each Seller agrees that upon
reasonable (but no less than one (1) Business Day's) prior notice unless an
Event of Default shall have occurred, in which case no notice is required, to
Sellers, Buyer or its authorized representatives will be permitted during normal
business hours to examine, inspect, and make copies and extracts of, the
Mortgage Files and any and all documents, records,

                                      -48-

<PAGE>

agreements, instruments or information relating to such Mortgage Loans in the
possession or under the control of the Sellers and/or the Custodian. The Sellers
also shall make available to Buyer a knowledgeable financial or accounting
officer for the purpose of answering questions respecting the Mortgage Files and
the Mortgage Loans. Without limiting the generality of the foregoing, the
Sellers acknowledge that Buyer may purchase Mortgage Loans from the Sellers
based solely upon the information provided by the Sellers to Buyer in the
Purchased Assets Schedule and the representations, warranties and covenants
contained herein, and that Buyer, at its option, has the right at any time to
conduct a partial or complete due diligence review on some or all of the
Mortgage Loans purchased in a Transaction, including, without limitation,
ordering Broker's price opinions, new credit reports and new appraisals on the
related Mortgaged Properties and otherwise re-generating the information used to
originate such Mortgage Loan. Buyer may underwrite such Mortgage Loans itself or
engage a mutually agreed upon third party underwriter to perform such
underwriting. The Sellers agrees to cooperate with Buyer and any third party
underwriter in connection with such underwriting, including, but not limited to,
providing Buyer and any third party underwriter with access to any and all
documents, records, agreements, instruments or information relating to such
Mortgage Loans in the possession, or under the control, of Sellers. Each Seller
further agrees that the Sellers shall pay all out-of-pocket costs and expenses
incurred by Buyer in connection with Buyer's activities pursuant to this Section
35 ("Due Diligence Costs").

          36. Joint and Several Obligations.

          Sellers and Buyer hereby acknowledge and agree that Sellers are each
jointly and severally liable to Buyer for all of their respective
representations, warranties and covenants hereunder.

                            [Signature Page Follows]

                                      -49-

<PAGE>

Credit Suisse First Boston Mortgage Capital LLC

By: /s/ Illegible
    -------------------------------------------
Title: PRESIDENT
Date: 11/29/01

First NLC Financial Services, LLC

By: /s/ Jeffrey M. Henschel
    -------------------------------------------
Title: Exec. Vice Pres.
       ----------------------------------------
Date: 12/03/01
      -----------------------------------------

NLC, Inc.

By: /s/ Jeffrey M. Henschel
    -------------------------------------------
Title: Exec. Vice Pres.
       ----------------------------------------
Date: 12/03/01
      -----------------------------------------

<PAGE>

                                   SCHEDULE 1

            REPRESENTATIONS AND WARRANTIES WITH RESPECT TO PURCHASED
                                 MORTGAGE LOANS

With respect to any representations and warranties made to the best of Sellers'
knowledge, in the event that it is discovered that the circumstances with
respect to the related Mortgage Loan are not accurately reflected in such
representation and warranty notwithstanding the knowledge or lack of knowledge
of the Sellers (other than the representations and warranties made in paragraphs
(e) and (ee)), then, notwithstanding that such representation and warranty is
made to the best of the Sellers' knowledge, such Mortgage Loan shall be assigned
a Market Value of zero.

          (a) Payments Current. All payments required to be made up to the
Purchase Date for the Mortgage Loan under the terms of the Mortgage Note have
been made and credited. No payment required under the Mortgage Loan is
delinquent nor has any payment under the Mortgage Loan been delinquent at any
time since the origination of the Mortgage Loan. The first Monthly Payment shall
be made, or shall have been made, with respect to the Mortgage Loan on its Due
Date or within the grace period, all in accordance with the terms of the related
Mortgage Note.

          (b) No Outstanding Charges. All taxes, governmental assessments,
insurance premiums, water, sewer and municipal charges, leasehold payments or
ground rents which previously became due and owing have been paid, or an escrow
of funds has been established in an amount sufficient to pay for every such item
which remains unpaid and which has been assessed but is not yet due and payable.
Neither Seller nor the Qualified Originator from which Seller acquired the
Mortgage Loan has advanced funds, or induced, solicited or knowingly received
any advance of funds by a party other than the Mortgagor, directly or
indirectly, for the payment of any amount required under the Mortgage Loan,
except for interest accruing from the date of the Mortgage Note or date of
disbursement of the proceeds of the Mortgage Loan, whichever is earlier, to the
day which precedes by one month the Due Date of the first installment of
principal and interest thereunder.

          (c) Original Terms Unmodified. The terms of the Mortgage Note and
Mortgage have not been impaired, waived, altered or modified in any respect,
from the date of origination; except by a written instrument which has been
recorded, if necessary to protect the interests of Buyer, and which has been
delivered to the Custodian and the terms of which are reflected in the Mortgage
Loan Schedule and Exception Report. The substance of any such waiver, alteration
or modification has been approved by the title insurer, to the extent required,
and its terms are reflected on the Mortgage Loan Schedule and Exception Report.
No Mortgagor in respect of the Mortgage Loan has been released, in whole or in
part, except in connection with an assumption agreement approved by the title
insurer, to the extent required by such policy, and which assumption agreement
is part of the Mortgage File delivered to the Custodian and the terms of which
are reflected in the Mortgage Loan Schedule and Exception Report.

                                  Schedule 1-1

<PAGE>

          (d) No Defenses. The Mortgage Loan is not subject to any right of
rescission, set-off, counterclaim or defense, including, without limitation,
the defense of usury, nor will the operation of any of the terms of the Mortgage
Note or the Mortgage, or the exercise of any right thereunder, render either the
Mortgage Note or the Mortgage unenforceable, in whole or in part and no such
right of rescission, set-off, counterclaim or defense has been asserted with
respect thereto, and no Mortgagor in respect of the Mortgage Loan was a debtor
in any state or Federal bankruptcy or insolvency proceeding at the time the
Mortgage Loan was originated. Sellers have no knowledge nor has it received any
notice that any Mortgagor in respect of the Mortgage Loan is a debtor in any
state or federal bankruptcy or insolvency proceeding. The term "originated"
shall mean the original funding of a Mortgage Loan by the related Seller.

          (e) Hazard Insurance. The Mortgaged Property is insured by a fire and
extended perils insurance policy, issued by a Qualified Insurer, and such other
hazards as are customary in the area where the Mortgaged Property is located,
and to the extent required by the applicable Seller as of the date of
origination consistent with the Underwriting Guidelines, against earthquake and
other risks insured against by Persons operating like properties in the locality
of the Mortgaged Property, in an amount not less than the greatest of (i) 100%
of the replacement cost of all improvements to the Mortgaged Property, (ii) the
outstanding principal balance of the Mortgage Loan, or (iii) the amount
necessary to avoid the operation of any co-insurance provisions with respect to
the Mortgaged Property, and consistent with the amount that would have been
required as of the date of origination in accordance with the Underwriting
Guidelines. If any portion of the Mortgaged Property is in an area identified by
any federal Governmental Authority as having special flood hazards, and flood
insurance is available, a flood insurance policy meeting the current guidelines
of the Federal Emergency Management Agency is in effect with a generally
acceptable insurance carrier, in an amount representing coverage not less than
the least of (1) the outstanding principal balance of the Mortgage Loan and,
with respect to any Second Lien Mortgage Loan, the outstanding principal balance
of the prior mortgage loan, (2) the full insurable value of the Mortgaged
Property, and (3) the maximum amount of insurance available under the National
Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of
1974. All such insurance policies (collectively, the "hazard insurance policy")
contain a standard mortgagee clause naming the applicable Seller, its successors
and assigns (including, without limitation, subsequent owners of the Mortgage
Loan), as mortgagee, and may not be reduced, terminated or canceled without 30
days' prior written notice to the mortgagee. No such notice has been received by
Sellers. All premiums on such insurance policy have been paid. The related
Mortgage obligates the Mortgagor to maintain all such insurance and, at such
Mortgagor's failure to do so, authorizes the mortgagee to maintain such
insurance at the Mortgagor's cost and expense and to seek reimbursement therefor
from such Mortgagor. Where required by state law or regulation, the Mortgagor
has been given an opportunity to choose the carrier of the required hazard
insurance, provided the policy is not a "master" or "blanket" hazard insurance
policy covering a condominium, or any hazard insurance policy covering the
common facilities of a planned unit development. The hazard insurance policy is
the valid and binding obligation of the insurer and is in full force and effect.
Neither Seller has engaged in, and has any knowledge of the Mortgagor's having
engaged in, any act or omission which would impair the coverage of any such
policy, the benefits of the endorsement provided for herein, or the validity and
binding effect of either including, without limitation, no unlawful fee,
commission, kickback or other unlawful compensation or value of any kind has
been or will

                                  Schedule 1-2

<PAGE>

be received, retained or realized by any attorney, firm or other Person, and no
such unlawful items have been received, retained or realized by either Seller.

          (f) Compliance with Applicable Laws. Any and all requirements of any
federal, state or local law including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit protection,
equal credit opportunity or disclosure laws applicable to the Mortgage Loan have
been complied with, the consummation of the transactions contemplated hereby
will not involve the violation of any such laws or regulations, and the
applicable Seller shall maintain or shall cause its agent to maintain in its
possession, available for the inspection of Buyer, and shall deliver to Buyer,
upon demand, evidence of compliance with all such requirements.

          (g) No Satisfaction of Mortgage. The Mortgage has not been satisfied,
canceled, subordinated or rescinded, in whole or in part, and the Mortgaged
Property has not been released from the lien of the Mortgage, in whole or in
part, nor has any instrument been executed that would effect any such release,
cancellation, subordination or rescission. Neither Seller has waived the
performance by the Mortgagor of any action, if the Mortgagor's failure to
perform such action would cause the Mortgage Loan to be in default, nor has
either Seller waived any default resulting from any action or inaction by the
Mortgagor.

          (h) Location and Type of Mortgaged Property. The Mortgaged Property is
located in an Acceptable State as identified in the Mortgage Loan Schedule and
Exception Report and consists of a single parcel of real property with a
detached single family residence erected thereon, or a two- to four-family
dwelling, or an individual condominium unit in a low-rise or, to the extent
permitted by the Underwriting Guidelines, a high-rise, condominium project, or
an individual unit in a planned unit development or a de minimis planned unit
development; provided, however, that any condominium unit or planned unit
development shall conform to underwriting guidelines acceptable to Buyer in its
sole discretion and that no residence or dwelling is a mobile home. No portion
of the Mortgaged Property is used for commercial purposes; provided, that, the
Mortgaged Property may be a mixed use property if such Mortgaged Property
conforms to underwriting guidelines acceptable to Buyer in its sole discretion.

          (i) Valid First or Second Lien. The Mortgage is a valid, subsisting,
enforceable and perfected (a) with respect to each first lien Mortgage Loan,
first priority lien and first priority security interest, or (b) with respect to
each Second Lien Mortgage Loan, second priority lien and second priority
security interest, in each case, on the real property included in the Mortgaged
Property, including all buildings on the Mortgaged Property and all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems located in or annexed to such buildings, and all additions, alterations
and replacements made at any time with respect to the foregoing. The lien of the
Mortgage is subject only to:

               a. the lien of current real property taxes and assessments not
          yet due and payable;

               b. covenants, conditions and restrictions, rights of way,
          easements and other matters of the public record as of the date of
          recording acceptable to

                                  Schedule 1-3

<PAGE>

          prudent mortgage lending institutions generally and specifically
          referred to in Buyer's title insurance policy delivered to the
          originator of the Mortgage Loan and (a) referred to or otherwise
          considered in the appraisal made for the originator of the Mortgage
          Loan or (b) which do not adversely affect the Appraised Value of the
          Mortgaged Property set forth in such appraisal;

               c. other matters to which like properties are commonly subject
          which do not materially interfere with the benefits of the security
          intended to be provided by the Mortgage or the use, enjoyment, value
          or marketability of the related Mortgaged Property; and

               d. with respect to each Mortgage Loan which is a Second Lien
          Mortgage Loan, a first lien on the Mortgaged Property.

Any security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a valid,
subsisting and enforceable first lien and first priority security interest on
the property described therein and Seller has full right to pledge and assign
the same to Buyer. The Mortgaged Property was not, as of the date of origination
of the Mortgage Loan, subject to a mortgage, deed of trust, deed to secure debt
or other security instrument creating a lien subordinate to the lien of the
Mortgage.

          (j) Validity of Mortgage Documents. The Mortgage Note and the Mortgage
and any other agreement executed and delivered by a Mortgagor or guarantor, if
applicable, in connection with a Mortgage Loan are genuine, and each is the
legal, valid and binding obligation of the maker thereof enforceable in
accordance with its terms. All parties to the Mortgage Note, the Mortgage and
any other such related agreement had legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note, the Mortgage and any such
agreement, and the Mortgage Note, the Mortgage and any other such related
agreement have been duly and properly executed by such related parties. No
fraud, error, omission, misrepresentation, negligence or similar occurrence with
respect to a Mortgage Loan has taken place on the part of any Person, including,
without limitation, the Mortgagor, any appraiser, any builder or developer, or
any other party involved in the origination of the Mortgage Loan. Sellers have
reviewed all of the documents constituting the Mortgage File and has made such
inquiries as it deems necessary to make and confirm the accuracy of the
representations set forth herein. To the best of Sellers' knowledge, except as
disclosed to Buyer in writing, all tax identifications and property descriptions
are legally sufficient; and tax segregation, where required, has been completed.

          (k) Full Disbursement of Proceeds. There is no further requirement for
future advances under the Mortgage Loan, and any and all requirements as to
completion of any on-site or off-site improvement and as to disbursements of any
escrow funds therefor have been complied with. All costs, fees and expenses
incurred in making or closing the Mortgage Loan and the recording of the
Mortgage were paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage.

          (1) Ownership. The applicable Seller has full right to sell the
Mortgage Loan to Buyer free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge,

                                  Schedule 1-4

<PAGE>

claim or security interest, and has full right and authority subject to no
interest or participation of, or agreement with, any other party, to sell each
Mortgage Loan pursuant to this Agreement and following the sale of each Mortgage
Loan, Buyer will own such Mortgage Loan free and clear of any encumbrance,
equity, participation interest, lien, pledge, charge, claim or security interest
except any such security interest created pursuant to the terms of this
Agreement.

          (m) Doing Business. All parties which have had any interest in the
Mortgage Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or,
during the period in which they held and disposed of such interest, were) (i) in
compliance with any and all applicable licensing requirements of the laws of the
state wherein the Mortgaged Property is located, and (ii) either (A) organized
under the laws of such state, (B) qualified to do business in such state, (C) a
federal savings and loan association, a savings bank or a national bank having a
principal office in such state, or (D) not doing business in such state.

          (n) Title Insurance. The Mortgage Loan is covered by either (i) an
attorney's opinion of title and abstract of title, the form and substance of
which is acceptable to prudent mortgage lending institutions making mortgage
loans in the area wherein the Mortgaged Property is located or (ii) an ALTA
lender's title insurance policy or other generally acceptable form of policy or
insurance insuring the applicable Seller, its successors and assigns, as to the
first or second priority lien of the Mortgage, as applicable in the original
principal amount of the Mortgage Loan (or to the extent a Mortgage Note provides
for negative amortization, the maximum amount of negative amortization in
accordance with the Mortgage), subject only to the exceptions contained in
clauses (1), (2) and (3) and, with respect to Second Lien Mortgage Loans, clause
(4) of paragraph (i) of this Part I of Schedule 1, and in the case of adjustable
rate Mortgage Loans, against any loss by reason of the invalidity or
unenforceability of the lien resulting from the provisions of the Mortgage
providing for adjustment to the Mortgage Interest Rate and Monthly Payment.
Where required by state law or regulation, the Mortgagor has been given the
opportunity to choose the carrier of the required mortgage title insurance.
Additionally, such lender's title insurance policy affirmatively insures ingress
and egress and against encroachments by or upon the Mortgaged Property or any
interest therein. The title policy does not contain any special exceptions
(other than the standard exclusions) for zoning and uses and has been marked to
delete the standard survey exception or to replace the standard survey exception
with a specific survey reading. The applicable Seller, its successors and
assigns, are the sole insureds of such lender's title insurance policy, and such
lender's title insurance policy is valid and remains in full force and effect
and will be in force and effect upon the consummation of the transactions
contemplated by this Agreement. No claims have been made under such lender's
title insurance policy, and no prior holder or servicer of the related Mortgage,
including the applicable Seller, has done, by act or omission, anything which
would impair the coverage of such lender's title insurance policy, including,
without limitation, no unlawful fee, commission, kickback or other unlawful
compensation or value of any kind has been or will be received, retained or
realized by any attorney, firm or other Person, and no such unlawful items have
been received, retained or realized by either Seller.

          (o) No Defaults. There is no default, breach, violation or event of
acceleration existing under the Mortgage or the Mortgage Note and no event has
occurred which, with the passage of time or with notice and the expiration of
any grace or cure period, would

                                  Schedule 1-5

<PAGE>

constitute a default, breach, violation or event of acceleration, and neither
Seller nor their predecessors have waived any default, breach, violation or
event of acceleration.

          (p) No Mechanics' Liens. There are no mechanics' or similar liens or
claims which have been filed for work, labor or material (and no rights are
outstanding that under the law could give rise to such liens) affecting the
Mortgaged Property which are or may be liens prior to, or equal or coordinate
with, the lien of the Mortgage.

          (q) Location of Improvements; No Encroachments. All improvements which
were considered in determining the Appraised Value of the Mortgaged Property lie
wholly within the boundaries and building restriction lines of the Mortgaged
Property, and no improvements on adjoining properties encroach upon the
Mortgaged Property. To the best of either Seller's knowledge, no improvement
located on or being part of the Mortgaged Property is in violation of any
applicable zoning and building law, ordinance or regulation.

          (r) Origination; Payment Terms. The Mortgage Loan was originated by or
in conjunction with a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 of the National Housing Act, a
savings and loan association, a savings bank, a commercial bank, credit union,
insurance company or similar banking institution which is supervised and
examined by a federal or state authority. Principal payments on the Mortgage
Loan commenced no more than 60 days after funds were disbursed in connection
with the Mortgage Loan. The Mortgage Interest Rate is adjusted, with respect to
adjustable rate Mortgage Loans, on each Interest Rate Adjustment Date to equal
the Index plus the Gross Margin (rounded up or down to the nearest .125%),
subject to the Mortgage Interest Rate Cap. The Mortgage Note is payable in equal
monthly installments of principal and interest, which installments of interest,
with respect to adjustable rate Mortgage Loans, are subject to change due to the
adjustments to the Mortgage Interest Rate on each Interest Rate Adjustment Date,
with interest calculated and payable in arrears, sufficient to amortize the
Mortgage Loan fully by the stated maturity date, over an original term of not
more than 30 years from commencement of amortization. The Due Date of the first
payment under the Mortgage Note is no more than 60 days from the date of the
Mortgage Note.

          (s) Customary Provisions. The Mortgage Note has a stated maturity. The
Mortgage contains customary and enforceable provisions such as to render the
rights and remedies of the holder thereof adequate for the realization against
the Mortgaged Property of the benefits of the security provided thereby,
including, (i) in the case of a Mortgage designated as a deed of trust, by
trustee's sale, and (ii) otherwise by judicial foreclosure. Upon default by a
Mortgagor on a Mortgage Loan and foreclosure on, or trustee's sale of, the
Mortgaged Property pursuant to the proper procedures, the holder of the Mortgage
Loan will be able to deliver good and merchantable title to the Mortgaged
Property. There is no homestead or other exemption available to a Mortgagor
which would interfere with the right to sell the Mortgaged Property at a
trustee's sale or the right to foreclose the Mortgage.

          (t) Occupancy of the Mortgaged Property. As of the Purchase Date the
Mortgaged Property is lawfully occupied under applicable law. All inspections,
licenses and certificates required to be made or issued with respect to all
occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to

                                  Schedule 1-6

<PAGE>

certificates of occupancy and fire underwriting certificates, have been made or
obtained from the appropriate authorities. Neither Seller has received
notification from any Governmental Authority that the Mortgaged Property is in
material non-compliance with such laws or regulations, is being used, operated
or occupied unlawfully or has failed to have or obtain such inspection, licenses
or certificates, as the case may be. Neither Seller has received notice of any
violation or failure to conform with any such law, ordinance, regulation,
standard, license or certificate. With respect to any Mortgage Loan originated
with an "owner-occupied" Mortgaged Property, the Mortgagor represented at the
time of origination of the Mortgage Loan that the Mortgagor would occupy the
Mortgaged Property as the Mortgagor's primary residence. The Mortgage Note and
Mortgage are on forms acceptable to Freddie Mac or Fannie Mae.

          (u) No Additional Collateral. The Mortgage Note is not and has not
been secured by any collateral except the lien of the corresponding Mortgage and
the security interest of any applicable security agreement or chattel mortgage
referred to in clause (i) above.

          (v) Deeds of Trust. In the event the Mortgage constitutes a deed of
trust, a trustee, authorized and duly qualified under applicable law to serve as
such, has been properly designated and currently so serves and is named in the
Mortgage, and no fees or expenses are or will become payable by the Custodian or
Buyer to the trustee under the deed of trust, except in connection with a
trustee's sale after default by the Mortgagor.

          (w) Transfer of Mortgage Loans. Except with respect to Mortgage Loans
intended for purchase by GNMA and for Mortgage Loans registered with MERS, the
Assignment of Mortgage is in recordable form and is acceptable for recording
under the laws of the jurisdiction in which the Mortgaged Property is located.

          (x) Due-On-Sale. Except with respect to Mortgage Loans intended for
purchase by GNMA, the Mortgage contains an enforceable provision for the
acceleration of the payment of the unpaid principal balance of the Mortgage Loan
in the event that the Mortgaged Property is sold or transferred without the
prior written consent of the mortgagee thereunder.

          (y) No Buydown Provisions; No Graduated Payments or Contingent
Interests. Except with respect to Agency Mortgage Loans, the Mortgage Loan does
not contain provisions pursuant to which Monthly Payments are paid or partially
paid with funds deposited in any separate account established by either Seller,
the Mortgagor, or anyone on behalf of the Mortgagor, or paid by any source other
than the Mortgagor nor does it contain any other similar provisions which may
constitute a "buydown" provision. The Mortgage Loan is not a graduated payment
mortgage loan and the Mortgage Loan does not have a shared appreciation or other
contingent interest feature.

          (z) Consolidation of Future Advances. Any future advances made to the
Mortgagor prior to the Purchase Date have been consolidated with the outstanding
principal amount secured by the Mortgage, and the secured principal amount, as
consolidated, bears a single interest rate and single repayment term. The lien
of the Mortgage securing the consolidated principal amount is expressly insured
as having first lien priority by a title insurance policy, an endorsement to the
policy insuring the mortgagee's consolidated interest or by other

                                  Schedule 1-7

<PAGE>

title evidence acceptable to Fannie Mae and Freddie Mac. The consolidated
principal amount does not exceed the original principal amount of the Mortgage
Loan.

          (aa) No Condemnation Proceeding. There is no condemnation proceeding
pending or, to the best of either Seller's knowledge, threatened, with respect
to the Mortgaged Property.

          (bb) Collection Practices; Escrow Deposits; Interest Rate Adjustments.
The origination and collection practices used by the originator, each servicer
of the Mortgage Loan and the applicable Seller with respect to the Mortgage Loan
have been in all respects in compliance with Accepted Servicing Practices,
applicable laws and regulations, and have been in all respects legal and proper.
With respect to escrow deposits and Escrow Payments, (other than with respect to
each Second Lien Mortgage Loan and for which the mortgagee under the first lien
is collecting Escrow Payments) all such payments are in the possession of, or
under the control of, the applicable Seller and there exist no deficiencies in
connection therewith for which customary arrangements for repayment thereof have
not been made. All Escrow Payments have been collected in full compliance with
state and federal law. An escrow of funds is not prohibited by applicable law
and has been established in an amount sufficient to pay for every item that
remains unpaid and has been assessed but is not yet due and payable. No escrow
deposits or Escrow Payments or other charges or payments due either Seller have
been capitalized under the Mortgage or the Mortgage Note. All Mortgage Interest
Rate adjustments have been made in strict compliance with state and federal law
and the terms of the related Mortgage Note. Any interest required to be paid
pursuant to state, federal and local law has been properly paid and credited.

          (cc) Conversion to Fixed Interest Rate. Except as expressly approved
in writing by Buyer, with respect to adjustable rate Mortgage Loans, the
Mortgage Loan is not convertible to a fixed interest rate Mortgage Loan.

          (dd) Other Insurance Policies. No action, inaction or event has
occurred and no state of facts exists or has existed that has resulted or will
result in the exclusion from, denial of, or defense to coverage under any
applicable special hazard insurance policy, PMI Policy or bankruptcy bond,
irrespective of the cause of such failure of coverage. In connection with the
placement of any such insurance, no commission, fee, or other compensation has
been or will be received by either Seller or by any officer, director, or
employee of either Seller or any designee of thereof or any corporation in which
either Seller or any officer, director, or employee had a financial interest at
the time of placement of such insurance.

          (ee) Soldiers' and Sailors' Civil Relief Act. The Mortgagor has not
notified either Seller, and neither Seller has any knowledge, of any relief
requested or allowed to the Mortgagor under the Soldiers' and Sailors' Civil
Relief Act of 1940.

          (ff) Appraisal. The Mortgage File contains an appraisal of the related
Mortgaged Property signed prior to the approval of the Mortgage Loan application
by a qualified appraiser, duly appointed by the applicable Seller, who had no
interest, direct or indirect in the Mortgaged Property or in any loan made on
the security thereof, and whose compensation is not affected by the approval or
disapproval of the Mortgage Loan, and the appraisal and appraiser

                                  Schedule 1-8

<PAGE>

both satisfy the requirements of Title XI of the Federal Institutions Reform,
Recovery, and Enforcement Act of 1989 as amended and the regulations promulgated
thereunder, all as in effect on the date the Mortgage Loan was originated.

          (gg) Disclosure Materials. The Mortgagor has executed a statement to
the effect that the Mortgagor has received all disclosure materials required by
applicable law with respect to the making of adjustable rate mortgage loans, and
the applicable Seller maintains such statement in the Mortgage File.

          (hh) Construction or Rehabilitation of Mortgaged Property. No Mortgage
Loan was made in connection with the construction or rehabilitation of a
Mortgaged Property or facilitating the trade-in or exchange of a Mortgaged
Property.

          (ii) No Defense to Insurance Coverage. No action has been taken or
failed to be taken, no event has occurred and no state of facts exists or has
existed on or prior to the Purchase Date (whether or not known to either Seller
on or prior to such date) which has resulted or will result in an exclusion
from, denial of, or defense to coverage under any private mortgage insurance
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of either Seller, the
related Mortgagor or any party involved in the application for such coverage,
including the appraisal, plans and specifications and other exhibits or
documents submitted therewith to the insurer under such insurance policy, or for
any other reason under such coverage, but not including the failure of such
insurer to pay by reason of such insurer's breach of such insurance policy or
such insurer's financial inability to pay.

          (jj) Capitalization of Interest. The Mortgage Note does not by its
terms provide for the capitalization or forbearance of interest.

          (kk) No Equity Participation. No document relating to the Mortgage
Loan provides for any contingent or additional interest in the form of
participation in the cash flow of the Mortgaged Property or a sharing in the
appreciation of the value of the Mortgaged Property. The indebtedness evidenced
by the Mortgage Note is not convertible to an ownership interest in the
Mortgaged Property or the Mortgagor and neither Seller has financed nor owns
directly or indirectly, any equity of any form in the Mortgaged Property or the
Mortgagor.

          (11) Proceeds of Mortgage Loan. The proceeds of the Mortgage Loan have
not been and shall not be used to satisfy, in whole or in part, any debt owed or
owing by the Mortgagor to the applicable Seller or any Affiliate or
correspondent of such Seller, except in connection with a refinanced Mortgage
Loan; provided, however, that no such refinanced Mortgage Loan shall have been
originated pursuant to a streamlined mortgage loan refinancing program.

          (mm) Origination Date. The origination date is no earlier than thirty
(30) days prior to the related Purchase Date.

                                  Schedule 1-9

<PAGE>

          (nn) No Exception. The Custodian has not noted any material exceptions
on a Mortgage Loan Schedule and Exception Report with respect to the Mortgage
Loan which would materially adversely affect the Mortgage Loan or Buyer's
interest in the Mortgage Loan.

          (oo) Mortgage Submitted for Recordation. The Mortgage either has been
or will promptly be submitted for recordation in the appropriate governmental
recording office of the jurisdiction where the Mortgaged Property is located.

          (pp) Documents Genuine. Such Purchased Mortgage Loan and all
accompanying collateral documents are complete and authentic and all signatures
thereon are genuine. Such Purchased Mortgage Loan is a "closed" loan fully
funded by the applicable Seller and held in such Seller's name.

          (qq) Bona Fide Loan. Such Purchased Mortgage Loan arose from a bona
fide loan, complying with all applicable State and Federal laws and regulations,
to persons having legal capacity to contract and is not subject to any defense,
set-off or counterclaim.

          (rr) Other Encumbrances. To the best of each Seller's knowledge, any
property subject to any security interest given in connection with such
Purchased Mortgage Loan is not subject to any other encumbrances other than a
stated first mortgage, if applicable, and encumbrances which may be allowed
under the Underwriting Guidelines.

          (ss) Description. Each Purchased Mortgage Loan conforms to the
description thereof as set forth on the related Mortgage Loan Schedule and
Exception Report delivered to the Custodian and Buyer.

          (tt) Located in U.S. No collateral (including, without limitation, the
related real property and the dwellings thereon and otherwise) relating to a
Purchased Mortgage Loan is located in any jurisdiction other than in one of the
fifty (50) states of the United States of America or the District of Columbia.

          (uu) Underwriting Guidelines. Each Purchased Mortgage Loan has been
originated in accordance with the Underwriting Guidelines (including all
supplements or amendments thereto) previously provided to Buyer.

          (vv) Aging. The Purchase Date for such Purchased Mortgage Loan has not
been more than 151 days prior to the date of determination.

          (ww) Committed Mortgage Loans. Each Committed Mortgage Loan is covered
by a Take-out Commitment, does not exceed the availability under such Take-out
Commitment (taking into consideration mortgage loans which have been purchased
by the respective Take-out Investor under the Take-out Commitment and mortgage
loan which Seller has identified to Buyer as covered by such Take-out
Commitment) and conforms to the requirements and the specifications set forth in
such Take-out Commitment and the related regulations, rules, requirements and/or
handbooks of the applicable Take-out Investor and is eligible for sale to and
insurance or guaranty by, respectively the applicable Take-out Investor and
applicable insurer. Each Take-out Commitment is a legal, valid and binding
obligation of each Seller enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency and similar

                                  Schedule 1-10

<PAGE>

laws affecting creditors' rights generally and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

          (xx) Primary Mortgage Guaranty Insurance. Each Mortgage Loan which is
required by the Underwriting Guidelines to have primary mortgage insurance is
insured as to payment defaults by a policy of primary mortgage guaranty
insurance in the amount required where applicable, and by an insurer approved,
by the applicable Take-out Investor, if applicable, and all provisions of such
primary mortgage guaranty insurance have been and are being complied with, such
policy is in full force and effect, and all premiums due thereunder have been
paid. Each Mortgage Loan which is represented to Buyer to have, or to be
eligible for, FHA insurance is insured, or eligible to be insured, pursuant to
the National Housing Act. Each Mortgage Loan which is represented by the
applicable Seller to be guaranteed, or to be eligible for guaranty, by the VA is
guaranteed, or eligible to be guaranteed, under the provisions of Chapter 37 of
Title 38 of the United States Code. As to each FHA insurance certificate or each
VA guaranty certificate, the applicable Seller has complied with applicable
provisions of the insurance for guaranty contract and federal statutes and
regulations, all premiums or other charges due in connection with such insurance
or guarantee have been paid, there has been no act or omission which would or
may invalidate any such insurance or guaranty, and the insurance or guaranty is,
or when issued, will be, in full force and effect with respect to each Mortgage
Loan. There are no defenses, counterclaims, or rights of setoff affecting the
Mortgage Loans or affecting the validity or enforceability of any private
mortgage insurance or FHA insurance applicable to the Mortgage Loans or any VA
guaranty with respect to the Mortgage Loans.

          (yy) Predatory Lending Regulations; High Cost Loans. None of the
Mortgage Loans are classified as (a) "high cost" loans under the Home Ownership
and Equity Protection Act of 1994 or (b) "high cost," "threshold," or
"predatory" loans under any other applicable state, federal or local law.

          (zz) Wet-Ink Mortgage Loans. With respect to each Mortgage Loan that
is a Wet-Ink Mortgage Loan, the Settlement Agent has been instructed in writing
by the applicable Seller to hold the related Mortgage Loan Documents as agent
and bailee for Buyer or Buyer agent and to promptly forward such Mortgage Loan
Documents in accordance with the provisions of the Custodial Agreement and the
Escrow Instruction Letter.

          (aaa) FHA Mortgage Insurance; VA Loan Guaranty. With respect to the
FHA Loans, the FHA Mortgage Insurance Contract is in full force and effect and
there exists no impairment to full recovery without indemnity to the Department
of Housing and Urban Development or the FHA under FHA Mortgage Insurance. With
respect to the VA Loans, the VA Loan Guaranty Agreement is in full force and
effect to the maximum extent stated therein. All necessary steps have been taken
to keep such guaranty or insurance valid, binding and enforceable and each of
such is the binding, valid and enforceable obligation of the FHA and the VA,
respectively, to the full extent thereof, without surcharge, set-off or defense.
Each FHA Loan and VA Loan was originated in accordance with the criteria of an
Agency for purchase of such Mortgage Loans.

                                  Schedule 1-11

<PAGE>

                                     Annex I

                          Non-Utilization Fee Formula

          The Non-Utilization Fee for each calendar month shall be an amount
equal to the product of (x) 0.25% per annum and (y) the excess of (I) 50% of the
Maximum Aggregate Purchase Price over (II) the average daily Purchase Price of
the Purchased Mortgage Loans during such calendar month.

          In the event that the Buyer fails to enter into one or more
Transactions for any reason other than the failure of the Sellers to satisfy the
conditions precedent listed in Section 10 hereof (other than the occurrence
and/or continuance of any of the events in Section 10(b)(8) hereof) (such
Transaction, a "Declined Transaction"), the non-utilization fee will be
recalculated, for the period of time from and after the date of the request for
such Declined Transaction up to but not including the date, if any, on which
Buyer enters into a Transaction with the Sellers, based upon an amount equal to
the product of (x) 0.25% per annum and (y) the excess, if any, of (I) the
difference between (A) 50% of the Maximum Aggregate Purchase Price minus (B) the
amount of the Purchase Price requested for each such Declined Transaction over
(II) the average daily Purchase Price of the Purchased Mortgage Loans during
such calendar month. At such time that Buyer enters into a subsequent
Transaction with either Seller, the non-utilization fee will be calculated using
the formula set forth in the preceding paragraph.

          In the event that Buyer has given Sellers notice of additional amounts
required to be paid by the Sellers pursuant to Section ll(b), and as a result
thereof, Sellers give Buyer irrevocable written notice that they will not
request to enter into any further Transactions under this Agreement and
repurchase all Mortgage Loans subject to Transactions hereunder, following the
last to occur of the events described in this sentence, the non-utilization fee
shall cease to accrue hereunder.

                                     A-II-1

<PAGE>

                                                                       EXHIBIT A

                           FORM OF TRANSACTION REQUEST

                                                                          [Date]

Credit Suisse First Boston Mortgage Capital LLC
[Address]
Attention:
           ----------------------

Re:  Master Repurchase Agreement dated as of December 20, 2001
     (the "Master Repurchase Agreement") by and among First NLC
     Financial Services, LLC, NLC, Inc. and Credit Suisse First Boston Mortgage
     Capital LLC

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

   TOTAL NUMBER OF MORTGAGE           Mortgage Loans - (See Mortgage Loan
   LOANS                          ----
                                  Schedule and Exception Report)

   ORIGINAL PRINCIPAL AMOUNT OF
   MORTGAGE LOANS:                $

   CURRENT PRINCIPAL AMOUNT OF
   MORTGAGE LOANS:                $

   PROPOSED PURCHASE PRICE:       $

   PURCHASE PRICE INCREASE:       $

   AGGREGATE PURCHASE PRICE:      $

   PROPOSED PURCHASE DATE:

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

[Name]

By:
    ----------------------------------
Name:
Title:

[wire instructions]

                                       A-1

<PAGE>

                                                                       EXHIBIT B

                          FORM OF PURCHASE CONFIRMATION

                                                                          [Date]

First NLC Financial Services, LLC
700 W. Hillsboro Blvd., Suite 204
Deerfield Beach, FL 33441

NLC, Inc.
700 W. Hillsboro Blvd., Suite 204
Deerfield Beach, FL 33441

Attention:

Credit Suisse First Boston Mortgage Capital LLC ("CSFBMCL") is pleased to
confirm your sale and our purchase of the Mortgage Loans described below and on
the attached Mortgage Loan Schedule and Exception Report pursuant to the Master
Repurchase Agreement dated as of December 20, 2001 (the "Master Repurchase
Agreement") by and among First NLC Financial Services, LLC, NLC, Inc. and Credit
Suisse First Boston Mortgage Capital LLC under the following terms and
conditions:

   -----------------------------------------------------------------------------
    Market Value:                                 $
   -----------------------------------------------------------------------------
    Current Principal Amount of Mortgage Loans:   $
   -----------------------------------------------------------------------------
    Aggregate Purchase Price:                     $
   -----------------------------------------------------------------------------
    Purchase Date:
   -----------------------------------------------------------------------------
    Repurchase Date:
   -----------------------------------------------------------------------------
    Pricing Rate:
   -----------------------------------------------------------------------------

    ADDITIONAL INFORMATION:
   -----------------------------------------------------------------------------
    Aggregate Purchase Price (date):              $
   -----------------------------------------------------------------------------
    Less Previous Aggregate Purchase Price:       $
   -----------------------------------------------------------------------------
    Less Price Differential due on (date):        $
   -----------------------------------------------------------------------------
    Net funds due [CSFB]/[Name] on (date):        $
   -----------------------------------------------------------------------------

                                       B-1

<PAGE>

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

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

                                         CREDIT SUISSE FIRST BOSTON
                                         MORTGAGE CAPITAL LLC

                                         By:
                                             -----------------------------------
                                         Name:
                                         Title:

FIRST NLC FINANCIAL SERVICES, LLC

By:
    ------------------------------------
Name:
Title:

NLC, Inc.

By:
    ------------------------------------
Name:
Title:

                                       B-2

<PAGE>

                                                                       EXHIBIT C

                   MORTGAGE LOAN SCHEDULE AND EXCEPTION REPORT

                         MORTGAGE LOAN CHARACTERISTICS

1.   Seller's Mortgage Loan identifying number;

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

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

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

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

6.   the number of units for all Mortgaged Properties;

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

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

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

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

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

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

13.  the loan approval/commitment date;

14.  the original principal amount of the Mortgage Loan;

15.  the Mortgage Loan purpose type (purchase or refinancing);

16.  the Mortgagor's and Co-Mortgagor's FICO score;

17.  Mortgagor Social Security Number; and

18.  co-Mortgagor Social Security Number.

                                       C-1

<PAGE>

                                                                       EXHIBIT D

                        OFFICER'S COMPLIANCE CERTIFICATE

          I,                             , do hereby certify that I am duly
             ----------------------------
elected, qualified and authorized officer of First NLC Financial Services, LLC
and NLC, Inc. ("Sellers"). This Certificate is delivered to you in connection
with Section 17b of the Master Repurchase Agreement dated as of December 20,
2001, among Sellers and Credit Suisse First Boston Mortgage Capital LLC (the
"Agreement"). I hereby certify that, as of the date of the financial statements
attached hereto and as of the date hereof, each Seller is and has been in
compliance with all the terms of the Agreement and, without limiting the
generality of the foregoing, I certify that:

          (i) Adjusted Net Worth. For each quarter commencing after December 31,
     2000, First NLC has maintained an Adjusted Net Worth of at least $5
     million.

          (ii) Indebtedness to Adjusted Net Worth Ratio. For each quarter
     commencing after December 31, 2000, First NLC's ratio of consolidated
     Indebtedness to consolidated Adjusted Net Worth has not exceeded 20:1.

          (iv) Maintenance of Profitability. First NLC has not permitted, for
     any Test Period, Net Income for such Test Period determined on a monthly
     basis, before income taxes for such Test Period and distributions made
     during such Test Period, to be less than $1.00.

          (v) Each Seller or its Affiliates, has maintained, for such Seller and
     its subsidiaries, insurance coverage with respect to employee dishonesty,
     forgery or alteration, theft, disappearance and destruction, robbery and
     safe burglary, property (other than money and securities) and computer
     fraud or an aggregate amount of at least $                   . The actual
                                               -------------------
     amount of such coverage is $                   .
                                 -------------------

          (vi) Each Seller has performed the documentation procedures required
     by its operational guidelines with respect to endorsements and assignments,
     including the recordation of assignments, or has verified that such
     documentation procedures have been performed by a prior holder of such
     Mortgage Loan.

          (vii) Each Seller has observed or performed in all material respects
     all of its covenants and other agreements, and satisfied every condition,
     contained in the Agreement and the other Program Agreements to be observed,
     performed and satisfied by it.

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

                                       D-l

<PAGE>

          (ix) Attached hereto as Schedule 1 is a true and correct list of all
     Mortgage Loans purchased by Buyer and held by Custodian pending repurchase.

                                       D-2

<PAGE>

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

                                         By:
                                             -----------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                                --------------------------------

                                       D-3

<PAGE>

                                  [Schedule 1]

                           [to Officer's Certificate]

                                       D-4

<PAGE>

                                                                       EXHIBIT E

                      FORM OF OPINION OF SELLER'S COUNSEL

                                                                          ,
                                                                ----------  ----

Credit Suisse First Boston Mortgage Capital LLC
Eleven Madison Avenue
New York, New York 10010

Ladies and Gentlemen:

We have acted as counsel to First NLC Financial Services, LLC and NLC, Inc. (the
"Sellers") in connection with the sale and repurchase by the Sellers of certain
loans (the "Mortgage Loans") purchased from time to time (each such date, a
"Purchase Date") by Credit Suisse First Boston Mortgage Capital LLC (the
"Buyer") pursuant to a Master Repurchase Agreement, dated as of December
[[     ]], 2001, among the Sellers and Buyer (the "Master Repurchase
Agreement"). Capitalized terms used but not defined herein shall have the
meanings set forth in the Master Repurchase Agreement.

We have acted as counsel to the Sellers in connection with the preparation,
execution and delivery of, and the initial purchase of Mortgage Loans made
under, the Master Repurchase Agreement.

In connection with rendering this opinion, we have examined the following
documents and such other documents as we have deemed necessary or advisable:

a. The Program Agreements;

b. The organizational documents of the Sellers;

c. The certified Consents of the Officer of the Sellers relating to the
transactions provided for in the Program Agreements;

d. A copy of a UCC-1 financing statement relating to the Purchased Mortgage
Loans executed by the Sellers as debtor naming Buyer as secured party, which
UCC-1 financing Statement will be filed under the Uniform Commercial Code as in
effect in the States of Florida and Tennessee with the office of the Secretary
of the States of Florida and Tennessee (the "Filing Office") on or
about             , 20   (the "Form UCC-1");
      --------- --    --

e. The reports attached hereto as Exhibit A (the "Search Reports"), which set
forth the results of examination conducted by Federal Research Corporation of
all currently indexed UCC-1 financing statements naming the Company as debtor
that are on file in the Filing Office and the Office of the Secretary of the
State of Florida;

f. Good standing certificates, as of a recent date, for Seller from each of the
States listed on Schedule 1 attached hereto; and

                                      E-1

<PAGE>

g. The certificates, letters and opinions required to be furnished by Seller and
others in connection with the execution of the Program Agreements, and the
additional certificates, letter and documents delivered by or on behalf of such
parties concurrently herewith.

For purposes of the opinions expressed below, we have assumed the authenticity
of all documents submitted to us as originals, the genuineness of all
signatures, the legal capacity of natural persons and the conformity to the
originals of all documents.

Based solely upon the foregoing, we are of the opinion that:

1. First NLC Financial Services, LLC is a limited liability company, duly
organized, validly existing and in good standing under the laws of the State of
Florida, and has the corporate power and authority to own its properties and
transact the business in which it is engaged. First NLC Financial Services, LLC
is duly qualified as a foreign [[     ]] to transact business in, and is in good
standing under, the laws of each state in which a mortgaged property is located
or is otherwise exempt under applicable law from such qualification. The
principal place of business of First NLC Financial Services, LLC is located at
700 W. Hillsboro Blvd., Suite 204, Deerfield Beach, FL 33441.

2. NLC, Inc. is a corporation, duly organized, validly existing and in good
standing under the laws of the State of Tennessee, and has the corporate power
and authority to own its properties and transact the business in which it is
engaged. NLC, Inc. is duly qualified as a foreign [[     ]] to transact business
in, and is in good standing under, the laws of each state in which a mortgaged
property is located or is otherwise exempt under applicable law from such
qualification. The principal place of business of NLC, Inc. is located
at                  .
   -----------------

3. Seller has the power to engage in the transactions contemplated by the
Program Agreements, and has all requisite power, authority and legal right to
execute and deliver the Program Agreements, to transfer and deliver the Mortgage
Loans and to perform and observe the terms and conditions of the Program
Agreements.

3. The Program Agreements have been duly and validly authorized, executed and
delivered by Seller and are valid, legal and binding agreements, enforceable
against Seller in accordance with their respective terms, subject to the effect
of bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the enforcement of creditors' rights generally, none of
which will materially interfere with the realization of the benefits provided
thereunder or with Buyer's ownership of the Mortgage Loans.

5. No consent, approval, authorization or order of any court or governmental
agency or body is required for the execution, delivery and performance by either
Seller of, or compliance by such entity with, the Program Agreements, or the
transfer of the Mortgage Loans or the consummation of the transactions
contemplated by the Program Agreements.

6. Neither the transfer or delivery of the Mortgage Loans, nor the consummation
of any other of the transactions contemplated in the Program Agreements, nor the
fulfillment of the terms of the Program Agreements will result in a breach of or
constitutes or will constitute a default under (a) the charter or by-laws of
either of Seller, or the terms of any material indenture or other agreement or
instrument to which either Seller is a party or by which it is bound or to

                                       E-2

<PAGE>

which it is subject, (b) any contractual or legal restriction contained in any
indenture, mortgage, deed of trust, agreement, instrument or other similar
document to which Seller is a party or by which it is bound or to which it is
subject, or (c) any statute or order, rule, regulation, writ, injunction or
decree of any court, governmental authority or regulatory body to which either
Seller or any of its properties is subject or by which it is bound.

7. There are no actions, suits, proceedings or investigations pending or, to the
best of our knowledge, threatened against either Seller that, in our judgment,
either in any one instance or in the aggregate, may result in any material
adverse change in the business, operations, financial condition, properties or
assets of either Seller or in any material impairment of the right or ability of
either Seller to carry on its business substantially as now conducted or in any
material liability on the part of either Seller that would draw into question
the validity of the Program Agreements, or of any action taken or to be taken in
connection with the transactions contemplated thereby, or that would be likely
to impair materially the ability of either Seller to perform under the terms of,
the Program Agreements.

8. The conveyance of each Mortgage Loan as and in the manner contemplated by the
Program Agreements is sufficient fully to transfer to Buyer all right, title and
interest of either of Seller thereto as owner, noteholder and mortgagee.

9. The Repurchase Agreement is effective to create, in favor of Buyer, either a
valid sale of the Purchased Mortgage Loans to Buyer or a valid security interest
under the Uniform Commercial Code in all of the right, title and interest of
Seller in, to and under the Purchased Mortgage Loans as collateral security for
the payment of Seller's obligations under the Repurchase Agreement, except that
(a) such security interests will continue in Purchased Mortgage Loans after its
sale, exchange or other disposition only to the extent provided in Section 9-315
of the Uniform Commercial Code, (b) the security interests in Purchased Mortgage
Loans in which Seller acquires rights after the commencement of a case under the
Bankruptcy Code in respect of Seller may be limited by Section 552 of the
Bankruptcy Code.

10. When the Mortgage Notes are delivered to the Custodian, endorsed in blank by
a duly authorized officer of Seller, the security interest referred to in
Section 9 above in the Mortgage Notes will constitute a fully perfected first
priority security interest in all right, title and interest of Seller therein.

11.  (a) Upon the filing of financing statements on Form UCC-1 naming Buyer as
     "Secured Party" and Seller as "Debtor", and describing the Purchased
     Mortgage Loans, in the jurisdictions and recording offices listed on
     Schedule 1 attached hereto, the security interests referred to in Section 9
     above will constitute fully perfected security interests under the Uniform
     Commercial Code in all right, title and interest of Seller in, to and under
     such Purchased Mortgage Loans, which can be perfected by filing under the
     Uniform Commercial Code.

     (b) The UCC Search Report sets forth the proper filing offices and the
     proper debtors necessary to identify those Persons who have on file in the
     jurisdictions listed on Schedule 1 financing statements covering the
     Purchased Mortgage Loans as of the dates and times specified on Schedule 2.
     The UCC Search Report identifies no Person who has

                                       E-3

<PAGE>

     filed in any Filing Office a financing statement describing the Repurchased
     Assets prior to the effective dates of the UCC Search Report.

12. Seller is not an "investment company", or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act of 1940,
as amended.

                                         Very truly yours,

                                         ---------------------------------------

                                       E-4

<PAGE>

                                                                       EXHIBIT F

                             UNDERWRITING GUIDELINES

                                    See Tab 8

                                       F-1

<PAGE>

                                                                       EXHIBIT G

                             AUTHORIZED SIGNATORIES

<TABLE>
<CAPTION>
    First NLC Financial Services, LLC                        NLC, Inc
-----------------------------------------   ------------------------------------------
<S>                                         <C>
Neal Henschel, President, CEO & Board       Neal Henschel, President, CEO & Board
   of Managers                                 of Managers
Jeffrey Henschel, EVP, Asst. Secretary &    Jeffrey Henschel, EVP, Asst. Secretary &
   Board of Managers                           Board of Managers
Marc Leder, VP, Treasurer & Board of        Marc Leder, VP, Treasurer & Board of
   Managers                                    Managers
Rodger Krouse, VP, Secretary & Board of     Rodger Krouse, VP, Secretary & Board of
   Managers                                    Managers
C. Dave Brigman, Executive Vice President
Lesley Hackett, Senior Vice President
Scott Taylor, Vice President
Pamela Michel, Vice President
Karen Edwards, Accounting Manager
Emilia Arillo, Assistant Secretary
</TABLE>

<PAGE>

                                                                       EXHIBIT H

                         CORPORATE RESOLUTIONS OF SELLER

                        Action of the Board of Directors
                          Without a Meeting Pursuant to
                       Section            of
                               ----------    -----------

The undersigned, being the directors of [                    ], a [national]
                                         --------------------
banking [association] [corporation] (the "Seller"), do hereby consent to the
taking of the following action without a meeting and do hereby adopt the
following resolutions by written consent pursuant to Section
                                                             -------------------
of                   of the State of                  :
   -----------------                 -----------------

          WHEREAS, it is in the best interests of the Seller to transfer from
time to time to Buyer Mortgage Loans against the transfer of funds by Buyer,
with a simultaneous agreement by Buyer to transfer to Seller such Mortgage Loans
at a date certain or on demand, against the transfer of funds by Seller pursuant
to the terms of the Repurchase Agreement (as defined below).

          NOW, THEREFORE, be it

          RESOLVED, that the execution, delivery and performance by the Seller
of the Master Repurchase Agreement (the "Repurchase Agreement") to be entered
into by the Seller and Credit Suisse First Boston Mortgage Capital LLC, as
Buyer, substantially in the form of the draft dated December 20, 2001, attached
hereto as Exhibit A, are hereby authorized and approved and that the [President]
or any [Vice President] (collectively, the "Authorized Officers") of the Seller
be and each of them hereby is authorized and directed to execute and deliver the
Repurchase Agreement to the Buyer with such changes as the officer executing the
same shall approve, his execution and delivery thereof to be conclusive evidence
of such approval;

          RESOLVED, that the execution, delivery and performance by the Seller
of the Custodial Agreement (the "Custodial Agreement") to be entered into by the
Seller, the Buyer and LaSalle Bank, National Association, as custodian (the
"Custodian") substantially in the form of the draft dated December 20, 2001,
attached hereto as Exhibit B, are hereby authorized and approved and that the
Authorized Officers of the Seller be and each of them hereby is authorized and
directed to execute and deliver the Custodial Agreement to the Buyer and
Custodian with such changes as the officer executing the same shall approve, his
execution and delivery thereof to be conclusive evidence of such approval;

                                       H-1

<PAGE>

          RESOLVED, that the Authorized Officers hereby are, and each hereby is,
authorized to execute and deliver all such aforementioned agreements on behalf
of the Seller and to do or cause to be done, in the name and on behalf of the
Seller, any and all such acts and things, and to execute, deliver and file in
the name and on behalf of the Seller, any and all such agreements, applications,
certificates, instructions, receipts and other documents and instruments, as
such Authorized Officer may deem necessary, advisable or appropriate in order to
carry out the purposes of the foregoing resolutions.

          RESOLVED, that the proper officers, agents and counsel of the Seller
are, and each of such officers, agents and counsel is, hereby authorized for and
in the name and on behalf of the Seller to take all such further actions and to
execute and deliver all such other agreements, instruments and documents, and to
make all governmental filings, in the name and on behalf of the Seller and such
officers are authorized to pay such fees, taxes and expenses, as advisable in
order to fully carry out the intent and accomplish the purposes of the
resolutions heretofore adopted hereby.

Dated as of:                , 200
             ----------- ---     -

                                       H-2

<PAGE>

                                                                       EXHIBIT I

                   SELLER'S TAX IDENTIFICATION NUMBER

First NLC, Financial Services, LLC: 65-0959970

NLC, Inc.: 65-0976550

                                       I-1

<PAGE>

                                                                       EXHIBIT J

                              EXISTING INDEBTEDNESS

Household Bank, f.s.b.--$l5 million Warehouse Facility

Bank United--$25 million Warehouse Facility

RFC--$50 million Warehouse Facility

                                       J-I

<PAGE>

                                                                       EXHIBIT K

                               WET INK PROCEDURES

Wet Funding Requirements:

     Send e-mail to CSFB by 10:00 (EST) to notify of intent to fund.

     Send excel data file(s) to CSFB by 3:00 (EST)

     Original document file must be received by the custodian within 7 Business
     days.

                                       K-l

<PAGE>

                                    EXHIBIT L

          FORM OF ESCROW INSTRUCTION LETTER TO BE PROVIDED BY BORROWER
                                 BEFORE CLOSING

The escrow instruction letter (the "Escrow Instruction Letter") shall also
include the following instruction to the Settlement Agent (the "Escrow Agent"):

          Credit Suisse First Boston Mortgage Capital LLC (the "Buyer"), has
agreed to provide funds ("Escrow Funds") to First NLC Financial Services, LLC
and NLC, Inc. to finance certain mortgage loans (the "Mortgage Loans") for which
you are acting as Escrow Agent.

          You hereby agree that (a) you shall receive such Escrow Funds from
Buyer to be disbursed in connection with this Escrow Instruction Letter, (b) you
will hold such Escrow Funds in trust, without deduction, set-off or counterclaim
for the sole and exclusive benefit of Buyer until such Escrow Funds are fully
disbursed on behalf of Buyer in accordance with the instructions set forth
herein, and (c) you will disburse such Escrow Funds on the date specified for
closing (the "Closing Date") only after you have followed the Escrow Instruction
Letter's requirements with respect to the Mortgage Loans. In the event that the
Escrow Funds cannot be disbursed on the Closing Date in accordance with the
Escrow Instruction Letter, you agree to promptly remit the Escrow Funds to the
Custodian by re-routing via wire transfer the Escrow Funds in immediately
available funds, without deduction, set-off or counterclaim, back to the account
specified in Buyer's incoming wire transfer.

          You further agree that, upon disbursement of the Escrow Funds, you
will hold all Mortgage Loan Documents specified in the Escrow Instruction Letter
in escrow as agent and bailee for Buyer, and will forward the Mortgage Loan
Documents and original Escrow Instruction Letter in connection with such
Mortgage Loans by overnight courier (y) to the Custodian within five (5)
Business Days following the date of origination.

          You agree that all fees, charges and expenses regarding your services
to be performed pursuant to the Escrow Instruction Letter are to be paid by
Sellers or their borrowers, and Buyer shall have no liability with respect
thereto.

          You represent, warrant and covenant that you are not an affiliate of
or otherwise controlled by either Seller, and that you are acting as an
independent contractor and not as an agent of either Seller.

          The provisions of this Escrow Instruction Letter may not be modified,
amended or altered, except by written instrument, executed by the parties hereto
and Buyer. You understand that Buyer shall act in reliance upon the provisions
set forth in this Escrow Instruction Letter, and that Buyer is an intended third
party beneficiary hereof.

                                       L-1

<PAGE>

                                    EXHIBIT M

                         CUSTODIAL AND BANK FEE SCHEDULE

Deposit/Review Fee                                $[*] per file

Deposit Fee includes balancing collateral to client electronic data, review to
Custodial Agreement.

Release/Reinstatement Fee                         $[*] per file
This fee applies to servicing releases and sales.

Cancelled Funding Fee                             $[*] per file

Overnight Courier Fee                             [*]

Release Rejection                                 $[*] per reject

Photocopies                                       $[*] per file pull fee
                                                  $[*] per page copied

Faxes                                             $[*] per page + file pull fee

Endorsements                                      $[*] per endorsement

Miscellaneous Expenses                            At Cost
Miscellaneous expenses include but are not limited to legal fees, postage,
overnight carrier services, supplies etc.

                                       N-l

<PAGE>

                                    EXHIBIT N

                            FORM OF SERVICER NOTICE

                                December 20, 2001

[              ], as Servicer
 --------------
[ADDRESS]
Attention:
           ---------------

          Re:  Master Repurchase Agreement, dated as of December 20, 2001 (the
               "Repurchase Agreement"), by and between First NLC Financial
               Services, LLC. (the "Seller"), NLC, Inc. ("Seller") and Credit
               Suisse First Boston Mortgage Capital LLC (the "Buyer").

Ladies and Gentlemen:

[              ] (the "Servicer") is servicing certain mortgage loans for the
 --------------
Sellers pursuant to that certain Servicing Agreement between the Servicer and
the Sellers. Pursuant to the Repurchase Agreement between Buyer and Sellers, the
Servicer is hereby notified that the Sellers have pledged to Buyer certain
mortgage loans which are serviced by Servicer which are subject to a security
interest in favor of Buyer.

Upon receipt of a Notice of Event of Default from Buyer in which Buyer shall
identify the mortgage loans which are then pledged to Buyer under the Repurchase
Agreement (the "Mortgage Loans"), the Servicer shall segregate all amounts
collected on account of such Mortgage Loans, hold them in trust for the sole and
exclusive benefit of Buyer, and remit such collections in accordance with
Buyer's written instructions. Following such Notice of Event of Default,
Servicer shall follow the instructions of Buyer with respect to the Mortgage
Loans, and shall deliver to Buyer any information with respect to the Mortgage
Loans reasonably requested by Buyer.

Notwithstanding any contrary information which may be delivered to the Servicer
by either Seller, the Servicer may conclusively rely on any information or
Notice of Event of Default delivered by Buyer, and the Sellers shall indemnify
and hold the Servicer harmless for any and all claims asserted against it for
any actions taken in good faith by the Servicer in connection with the delivery
of such information or Notice of Event of Default.

                                       N-l

<PAGE>

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

Very truly yours,

FIRST NLC FINANCIAL SERVICES, LLC

By:
    ----------------------------------
Name:
Title:

ACKNOWLEDGED:

[              ],
 --------------
   as Servicer

By:
    ----------------------------------
Title:
Telephone:
Facsimile:

                                       N-2

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