Document:

Novation Agreement

 Exhibit 10.4 
 ISDA® 
 International Swaps and Derivatives Association, Inc. 
 NOVATION AGREEMENT 
 dated as of November 30, 2006 among: 
 WACHOVIA BANK, NATIONAL ASSOCIATION (the “Remaining Party”), 
 NOVASTAR
MORTGAGE, INC. (the “Transferor”) 
 AND 
 NOVASTAR MORTGAGE SUPPLEMENTAL INTEREST TRUST, SERIES 2006-6 (the “Transferee”). 
 The Transferor and the
Remaining Party have entered into one or more Transactions (each an “Old Transaction”), each evidenced by a Confirmation (an “Old Confirmation”) attached hereto as Exhibit I and subject to a 1992 ISDA Master
Agreement dated as of November 15, 2003 (the “Old Agreement”). 
 The Remaining Party and the Transferee are simultaneously entering
into a 1992 ISDA Master Agreement dated as of the date hereof in the form attached hereto as Exhibit II (the “New Agreement”) relative to the New Transactions (defined below). 
 With effect from and including November 30, 2006 (the “Novation Date”) the Transferor wishes to transfer by novation to the Transferee, and the
Transferee wishes to accept the transfer by novation of, all the rights, liabilities, duties and obligations of the Transferor under and in respect of each Old Transaction, with the exception of the Excluded Rights and Obligations referred to below
with the effect that the Remaining Party and the Transferee will enter into a new transaction (each a “New Transaction” and, collectively, the “New Transactions”) between them having terms identical to those of each
applicable Old Transaction, subject to the same exceptions and as more particularly described below. 
 The Remaining Party wishes to accept the Transferee
as its sole counterparty with respect to each of the New Transactions. 
 The Transferor and the Remaining Party wish to have released and discharged, as a
result and to the extent of the transfer described above, their respective obligations under and in respect of the Old Transactions. 
 Accordingly, the
parties agree as follows: — 
 1. Definitions. 
 Terms
defined in the ISDA Master Agreement (Multicurrency-Cross Border) as published in 1992 by the International Swaps and Derivatives Association, Inc. (the “1992 ISDA Master Agreement”) are used herein as so defined, unless otherwise
provided herein. For purposes of this Novation Agreement, “Excluded Rights and Obligations” means all obligations of each of the Transferor and the Remaining Party to Transfer (as defined in the Credit Support Annex to the Old
Agreement) Eligible Collateral (as so defined) in respect of the Old Transactions and all related rights of the Remaining Party and the Transferor under the Old Agreement. 

	2.	Transfer, Release, Discharge and Undertakings. 

 Subject to the
execution and delivery of the New Agreement by each of the parties thereto to the other, with effect from and including the Novation Date and in consideration of the mutual representations, warranties and covenants contained in this Novation
Agreement and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the parties): 
  

	 	(a)	on the Novation Date, subject to Section 2(d) of this Novation Agreement, the Transferor hereby transfers all of its rights, liabilities, duties and obligations, with the
exception of the Excluded Rights and Obligations, relative to, and in connection with the Old Transactions to the Transferee. For the sake of clarity, all references to Independent Amounts shall be deemed deleted from the confirmations for each New
Transaction; 

  

	 	(b)	subject to Section 2(d) of this Novation Agreement, the Remaining Party and the Transferor are each hereby released and discharged from further obligations to each other with
respect to each Old Transaction and their respective rights against each other thereunder are cancelled, provided that such release and discharge shall not affect any rights, liabilities or obligations of the Remaining Party or the Transferor with
respect to payments or other obligations due and payable or due to be performed prior to the Novation Date, and all such payments and obligations shall be paid or performed by the Remaining Party or the Transferor in accordance with the terms of
such Old Transaction; 

  

	 	(c)	in respect of each New Transaction, the Remaining Party and the Transferee each hereby undertake liabilities and obligations towards the other and acquire rights against each other
identical in their terms to each corresponding Old Transaction (and, for the avoidance of doubt, as if the Transferee were the Transferor and with the Remaining Party remaining the Remaining Party, save for the Excluded Rights and Obligations and
any other rights, liabilities or obligations of the Remaining Party or the Transferor with respect to payments or other obligations due and payable or due to be performed prior to the Novation Date); 

  

	 	(d)	each New Transaction shall be governed by, form part of, and be subject to the New Agreement and the relevant Old Confirmation (which, in conjunction and as deemed modified to be
consistent with this Novation Agreement, shall be deemed to be a Confirmation between the Remaining Party and the Transferee), and the offices of the Remaining Party and the Transferee for purposes of each New Transaction shall be their offices at
their addresses for notices provided for in the New Agreement; and 

  

	 	(e)	on the Novation Date, the Remaining Party shall transfer any and all of the Posted Collateral (as defined in the Credit Support Annex to the Old Agreement) held by it in respect of
the Old Transactions to the account or accounts of the Transferor identified by it by notice given to the Remaining Party as provided in the Old Agreement, and the Transferor shall transfer all Posted Collateral held by it in respect of the Old
Transactions to the account or accounts of the Remaining Party identified by it by notice given to the Transferor as provided in the Old Agreement, in each case together with all Interest Amount and Distributions thereon (as so defined). The
Remaining Party’s or the Transferor’s failure to effect these transfers will continue to constitute Potential Events of Default and may constitute Events of Default under the Old Agreement notwithstanding the transfer by novation
contemplated herein. 

  

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	3.	Representations and Warranties. 

  

	 	(a)	On the date of this Novation Agreement: 

  

	 	(i)	Each of the parties makes to each of the other parties those representations and warranties set forth in Section 3(a) of the 1992 ISDA Master Agreement with references in such
Section to “this Agreement” or “any Credit Support Document” being deemed references to this Novation Agreement alone. 

  

	 	(ii)	The Remaining Party and the Transferor each makes to the other, and the Remaining Party and the Transferee each makes to the other, the representation set forth in Section 3(b)
of the 1992 ISDA Master Agreement, in each case with respect to the Old Agreement or the New Agreement, as the case may be, and taking into account the parties entering into and performing their obligations under this Novation Agreement.

  

	 	(iii)	Each of the Transferor and the Remaining Party represents and warrants to each other and to the Transferee that: 

  

	 	(A)	it has made no prior transfer (whether by way of security or otherwise) of the Old Agreement or any interest or obligation in or under the Old Agreement or in respect of any Old
Transaction; and 

  

	 	(B)	without prejudice to the obligations of the Remaining Party and the Transferor referred to in Section 2(d) of this Novation Agreement, as of the Novation Date, all obligations
of the Transferor and the Remaining Party under each Old Transaction required to be performed before the Novation Date have been fulfilled. 

  

	 	(iv)	Each party represents to each of the other parties: — 

  

	 	(A)	Non-Reliance. Transferor and the Remaining Party is each acting for its own account, and with respect to the Transferee, Deutsche Bank National Trust Company is executing as Trustee
for the Transferee. Each has made its own independent decisions to enter into this Novation Agreement and as to whether this Novation Agreement is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has
deemed necessary. It is not relying on any communication (written or oral) of the other parties as investment advice or as a recommendation to enter into this Novation Agreement; it being understood that information and explanations related to the
terms and conditions of this Novation Agreement shall not be considered investment advice or a recommendation to enter into this Novation Agreement. No communication (written or oral) received from any of the other parties shall be deemed to be an
assurance or guarantee as to the expected results of this Novation Agreement; 

  

	 	(B)	Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts,
the terms, conditions and risks of this Novation Agreement. It is also capable of assuming, and assumes, the risks of this Novation Agreement; and 

  

	 	(C)	Status of Parties. None of the other parties is acting as a fiduciary for or an adviser to it in respect of this Novation Agreement. 

  

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	 	(b)	The Transferor makes no representation or warranty and does not assume any responsibility with respect to the legality, validity, effectiveness, adequacy or enforceability of any
New Transaction or the New Agreement or any documents relating thereto and assumes no responsibility for the condition, financial or otherwise, of the Remaining Party, the Transferee or any other person or for the performance and observance by the
Remaining Party, the Transferee or any other person of any of its obligations under any New Transaction or the New Agreement or any document relating thereto and any and all such conditions and warranties, whether express or implied by law or
otherwise, are hereby excluded; provided, however, that nothing in the foregoing shall be construed to relieve the Transferor from any liability it may have for any of its representations, warranties or obligations as the servicer or
otherwise under the Pooling and Servicing Agreement among NovaStar Mortgage Funding, Inc., U.S. Bank, National Association, and JPMorgan Chase Bank, National Association dated as of November 1, 2006 (the “Pooling and Servicing
Agreement”) 

  

	4.	Counterparts. 

 This Novation Agreement (and each
amendment, modification and waiver in respect of it) may be executed and delivered in counterparts (including by facsimile transmission), each of which will be deemed an original. 
  

	5.	Costs and Expenses. 

 The parties will each pay
their own costs and expenses (including legal fees) incurred in connection with this Novation Agreement and as a result of the negotiation, preparation and execution of this Novation Agreement. 
  

	6.	Amendments. 

 No amendment, modification or waiver
in respect of this Novation Agreement will be effective unless in writing (including a writing evidenced by a facsimile transmission) and executed by each of the parties or confirmed by an exchange of telexes or electronic messages on an electronic
messaging system, and subject to the Rating Agency Condition as defined in the New Agreement. 
  

	7.      (a)    Governing	Law. 

 This Novation Agreement will be governed by
and construed in accordance with the laws of the State of New York without reference to the conflict of laws provisions thereof (other than Section 5-1401 of the New York General Obligations Law). 
  

	 	(b)	Jurisdiction. 

 The terms of Section 13(b) of
the 1992 ISDA Master Agreement shall apply to this Novation Agreement with references in such Section to “this Agreement” being deemed references to this Novation Agreement alone. 
  

	 	(c)	Not Acting in Individual Capacity. 

 Deutsche Bank
National Trust Company is signing this Novation Agreement solely in its capacity as Trustee to the Transferee under the Pooling and Servicing Agreement and in the exercise of the powers and authority conferred and vested in it thereunder and not in
its individual capacity. It is expressly understood and agreed by the parties hereto that (i) each of the representations, undertakings and agreements herein stated to be those of the Transferee is made and intended for the purpose of binding
only the Transferee, (ii) nothing herein contained shall be construed as creating any liability for Deutsche Bank National Trust Company, individually or personally, to perform any covenant (either express or implied) contained herein

  

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 stated to be those of the Transferee, and all such liability, if any, is hereby expressly waived by the
parties hereto, and (iii) under no circumstances shall Deutsche Bank National Trust Company be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Transferee under this Novation
Agreement. All persons having any claim against the Trustee by reason of the Transactions contemplated by shall look only to the assets of NovaStar Mortgage Supplemental Interest Trust, Series 2006-6 (subject to the availability of funds therefor in
accordance with the Flow of Funds as set forth in Article IV of the Pooling and Servicing Agreement) for payment or satisfaction thereof. 
 The foregoing may not be construed to give to Majority Certificateholders any rights under this Novation Agreement. 
  

	 	(d)	Pooling and Servicing Agreement. 

 Capitalized terms
used in this Novation Agreement that are not defined herein and are defined in the Pooling and Servicing Agreement shall have the respective meanings assigned to them in the Pooling and Servicing Agreement. 
  

	 	(e)	Calculation 

 Not later than each Reset Date, the
Calculation Agent shall deliver in writing to the Trustee the results of any calculations made on such reset date to the Indenture Trustee address as provided in the notices portion of the New Agreement. 
  

	 	(f)	Account Details 

 Remaining Party: 
 Wachovia Bank, N.A. 
 CIB Group, ABA 053000219

 Ref: Derivative Desk (Trade No: [            ]) 
 Account#: 04659360006116 
 Transferee:

 Deutsche Bank National Trust Company 
 ABA # 021001033 
 Acct # 01419663 
 Acct Name NYLTD Funds Control-Stars West 
 Ref: Trust Administration- Novastar 2006-6, Hedge confirm #
[            ] 
  

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 IN WITNESS WHEREOF the parties have executed this Novation Agreement on the respective dates specified
below with effect from and including the Novation Date. 
  

									
	WACHOVIA BANK, NATIONAL ASSOCIATION	 		 	NOVASTAR MORTGAGE, INC.
					
	By:	 	 /s/ Kim V. Farr
	 		 	By:	 	 /s/ David L. Farris

	Name:	 	Kim V. Farr	 		 	Name:	 	David L. Farris
	Title:	 	Director	 		 	Title:	 	Vice President

  

			
	 NOVASTAR MORTGAGE SUPPLEMENTAL
 INTEREST
TRUST, SERIES 2006-6

		
	By:	 	Deutsche Bank National Trust Company, as Trustee under the Pooling and Servicing Agreement, acting not in its individual capacity, but solely in its capacity as Trustee to NovaStar Mortgage
Supplemental Interest Trust, Series 2006-6
		
	By:	 	 /s/ Melissa Wilman

	Name:	 	Melissa Wilman
	Title:	 	Vice President

  

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 Exhibit I 
 [Old Hedge Confirmations attached behind this page] 
  

 7 

 RATE CAP TRANSACTION CONFIRMATION 
 

 
  

			
	Date:	 	August 30, 2006
	To:	 	Novastar Mortgage, Inc. (“Counterparty”)
	Address:	 	8140 Ward Parkway, Suite 300
		 	Kansas City MO
		 	64114 USA
	Fax:	 	816-237-7515
	Attention.:	 	Jeremy Messerly
	From:	 	Wachovia Bank, N.A. (“Wachovia”)
	Ref No:	 	1556610, 1556603

 Dear Jeremy Messerly: 
 This confirms the terms of the Transaction described below between Counterparty and Wachovia. The definitions and provisions contained in the 2000 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern. 
 This Confirmation supplements forms part of, and is subject to, the ISDA Master Agreement between Wachovia and Counterparty dated as of September 15, 2003, as amended and supplemented from time to time (the
“ISDA Master Agreement”). All provisions contained or incorporated by reference in the Master Agreement will govern this Confirmation except as expressly modified herein. 
 1. The terms of the particular Transaction to which the Confirmation relates are as follows: 
  

			
	 Transaction Type
 Currency for
Payments
	 	 Rate Cap
 U.S. Dollars

	Notional Amount	 	USD 80,000,000.00
	Term:	 	
	 Trade Date:
	 	August 29, 2006.
	 Effective Date:
	 	September 25, 2006.
	 Termination Date:
	 	September 25, 2008 in respect of Floating Amounts, subject to adjustment in accordance with the Modified Following Business Day Convention September 25, 2008 in respect of Fixed
Amounts
		
	Fixed Amounts II	 	
		
	 Fixed Rate Payer II:
	 	Counterparty
	 Period End Dates:
	 	Monthly on the 25th of each month commencing October 25, 2006, through and including the Termination Date; No Adjustment.
	 Payment Dates:
	 	 Monthly on the 25th of each month commencing October 25, 2006, through
 and including the Termination Date

	 Business Day Convention:
	 	Modified Following
	 Business Day:
	 	New York
	 Fixed Rate:
	 	0.2475%
	 Fixed Rate Day Count Fraction:
	 	30/360
		
	Floating Amounts:	 	
		
	 Floating Rate Payer
	 	Wachovia

			
	 Cap Rate:
	 	5.25%
	 Payment Dates:
	 	Monthly on the 25th of each month commencing October 25, 2006, through and including the Termination Date
	 Business Day Convention:
	 	Modified Following
	 Business Day:
	 	New York
	 Floating Rate for initial
 Calculation Period:
	 	Determined two London Banking Days prior to the Effective Date
	 Floating Rate Option:
	 	USD-LIBOR-BBA
	 Designated Maturity:
	 	1 Month
	 Spread:
	 	None
	 Floating Rate Day
	 	
	 Count Fraction:
	 	Actual/360
	 Floating Rate determined:
	 	Two London Banking Days prior to each Reset Date.
	 Reset Dates:
	 	The first day of each Calculation Period.
	 Compounding:
	 	Inapplicable
	 Rounding Convention:
	 	5 decimal places per the ISDA Definitions.

 2. The additional provisions of this Confirmation are as follows: 
  

			
	Calculation Agent:	 	As per the Master Agreement
	Payment Instructions:	 	Wachovia Bank, N.A.
		 	CIB Group, ABA 053000219
		 	Ref: Derivative Desk (Trade No: 1556610, 1556603)
		 	Account #: 04659360006116
		
	Wachovia Contacts:	 	Settlement and/or Rate Resets:
		 	1-800-249-3865
		 	1-704-383-8429
		
		 	Documentation:
		 	Tel: (704) 383-4599
		 	Fax: (704) 583-9139
		
		 	Collateral:
		 	Tel: (704) 383-9529
		 	Please quote transaction reference number.
		
	Payments to Counterparty:	 	Wachovia Bank, N. A - NC
		 	ABA 053000219
		 	Account number: 2000001099539
		 	For Account of:
		 	P/F/C:

 Please confirm that the foregoing correctly sets forth the terms of our agreement by executing a copy of this
Confirmation and returning is to us or by sending to us a letter substantially similar to this letter, which letter sets forth the material terms of the transaction to which this Confirmation relates and indicates your agreement to those terms.

  

			
	 Very truly yours,
  
 Wachovia Bank, N.A.

		
	By:	 	 /s/ Tracey Bissell

	Name:	 	Tracey Bissell
	Title:	 	Vice President
	
	Ref. No. 1556610, 1556603

  

			
	 Accepted and Confirmed as of date first
 written above:
  
 Novastar Mortgage, Inc.

		
	By:	 	 /s/ David L. Farris

	Name:	 	David L. Farris
	Title:	 	V.P.Master Agreement

 Exhibit 10.5 
 (Multicurrency – Cross Border) 
 ISDA® 
 International Swap
Dealers Association, Inc. 
 MASTER AGREEMENT 
 dated as of November 30, 2006 
  

					
	 WACHOVIA BANK,
 NATIONAL ASSOCIATION
	 	and	 	 NOVASTAR MORTGAGE SUPPLEMENTAL
 INTEREST TRUST, SERIES 2006-6, a New York
 common law trust

			
	(“Party A”)	 		 	(“Party B”)

 have entered and/or anticipate entering into one of more transactions (each a “Transaction”) that are or
will be governed by this Master Agreement, which includes the schedule (the “Schedule”), and the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties confirming those Transactions.

 Accordingly, the parties agree as follows: — 
 1.
Interpretation 
 (a) Definitions. The terms defined in Section 14 and in the Schedule will have the meanings therein specified
for the purpose of this Master Agreement. 
 (b) Inconsistency. In the event of any inconsistency between the provisions of the Schedule and
the other provisions of this Master Agreement, the Schedule will prevail. In the event of any inconsistency between the provisions of any Confirmation and this Master Agreement (including the Schedule), such Confirmation will prevail for the purpose
of the relevant Transaction. 
 (c) Single Agreement. All Transactions are entered into in reliance on the fact that this Master Agreement and
all Confirmations form a single agreement between the parties (collectively referred to as this “Agreement”), and the parties would not otherwise enter into any Transactions. 
 2. Obligations 
 (a) General Conditions. 
 (i) Each party will make each payment or delivery specified in each Confirmation to be made by it, subject to the other provisions of this Agreement.

 (ii) Payments under this Agreement will be made on the due date for value on that date in the place of the account specified in the
relevant Confirmation or otherwise pursuant to this Agreement, in freely transferable funds and in the manner customary for payments in the required currency. Where settlement is by delivery (that is, other than by payment), such delivery will be
made for receipt on the due date in the manner customary for the relevant obligation unless otherwise specified in the relevant Confirmation or elsewhere in this Agreement. 
 (iii) Each obligation of each party under Section 2(a)(i) is subject to (1) the condition precedent that no Event of Default or Potential Event
of Default with respect to the other party has occurred and is continuing, (2) the condition precedent that no Early Termination Date in respect of the relevant Transaction has occurred or been effectively designated and (3) each other
applicable condition precedent specified in this Agreement. 

 (b) Change of Account. Either party may change its account for receiving a payment or delivery by giving
notice to the other party at least five Local Business Days prior to the scheduled date for the payment or delivery to which such change applies unless such other party gives timely notice of a reasonable objection to such change. 
 (c) Netting. If on any date amounts would otherwise be payable: — 
 (i) in the same currency; and 
 (ii) in respect of the same Transaction, 
 by each party to the other, then, on such date, each party’s obligation to make payment of any such amount will be automatically satisfied and discharged and, if
the aggregate amount that would otherwise have been payable by one party exceeds the aggregate amount that would otherwise have been payable by the other party, replaced by an obligation upon the party by whom the larger aggregate amount would have
been payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount. 
 The parties may elect in respect of
two or more Transactions that a net amount will be determined in respect of all amounts payable on the same date in the same currency in respect of such Transactions, regardless of whether such amounts are payable in respect of the same Transaction.
The election may be made in the Schedule or a Confirmation by specifying that subparagraph (ii) above will not apply to the Transactions identified as being subject to the election, together with the starting date (in which case subparagraph
(ii) above will not, or will cease to, apply to such Transactions from such date). This election may be made separately for different groups of Transactions and will apply separately to each pairing of Offices through which the parties make and
receive payments or deliveries. 
 (d) Deduction or Withholding for Tax. 
 (i) Gross-Up. All payments under this Agreement will be made without any deduction or withholding for or on account of any Tax unless such
deduction or withholding is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, then in effect. If a party is so required to deduct or withhold, then that party (“X”) will: —

 (1) promptly notify the other party (“Y”) of such requirement; 
 (2) pay to the relevant authorities the full amount required to be deducted or withheld (including the full amount required to be deducted or withheld
from any additional amount paid by X to Y under this Section 2(d)) promptly upon the earlier of determining that such deduction or withholding is required or receiving notice that such amount has been assessed against Y; 
 (3) promptly forward to Y an official receipt (or a certified copy), or other documentation reasonably acceptable to Y, evidencing such payment to such
authorities; and 
 (4) if such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which Y is otherwise entitled under this
Agreement, such additional amount as is necessary to ensure that the net amount actually received by Y (free and clear of Indemnifiable Taxes, whether assessed against X or Y) will equal the full amount Y would have received had no such deduction or
withholding been required. However, X will not be required to pay any additional amount to Y to the extent that it would not be required to be paid but for: — 
 (A) the failure by Y to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d); or 
 (B) the failure of a representation made by Y pursuant to Section 3(f) to be accurate and true unless such failure would not have occurred but for (I) any action taken by a taxing authority, or brought in a
court of competent jurisdiction, on or after the date on which a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (II) a Change in Tax Law. 
  

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 (ii) Liability. If: — 
 (1) X is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, to make any deduction or withholding
in respect of which X would not be required to pay an additional amount to Y under Section 2(d)(i)(4); 
 (2) X does not so deduct or
withhold; and 
 (3) a liability resulting from such Tax is assessed directly against X, 
 then, except to the extent Y has satisfied or then satisfies the liability resulting from such Tax, Y will promptly pay to X the amount of such liability
(including any related liability for interest, but including any related liability for penalties only if Y has failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)). 
 (e) Default Interest; Other Amounts. Prior to the occurrence or effective designation of an Early Termination Date in respect of the relevant
Transaction, a party that defaults in the performance of any payment obligation will, to the extent permitted by law and subject to Section 6(c), be required to pay interest (before as well as after judgment) on the overdue amount to the other
party on demand in the same currency as such overdue amount, for the period from (and including) the original due date for payment to (but excluding) the date of actual payment, at the Default Rate. Such interest will be calculated on the basis of
daily compounding and the actual number of days elapsed. If, prior to the occurrence or effective designation of an Early Termination Date in respect of the relevant Transaction, a party defaults in the performance of any obligation required to be
settled by delivery, it will compensate the other party on demand if and to the extent provided for in the relevant Confirmation or elsewhere in this Agreement. 
 3. Representations 
 Each party represents to the other party (which representations will be deemed to be repeated by each party on each date
on which a Transaction is entered into and, in the case of the representations in Section 3(f), at all times until the termination of this Agreement) that: — 
 (a) Basic Representations. 
 (i) Status. It is duly organised and validly existing under
the laws of the jurisdiction of its organisation or incorporation and, if relevant under such laws, in good standing; 
 (ii) Powers.
It has the power to execute this Agreement and any other documentation relating to this Agreement to which it is a party, to deliver this Agreement and any other documentation relating to this Agreement that it is required by this Agreement to
deliver and to perform its obligations under this Agreement and any obligations it has under any Credit Support Document to which it is a party and has taken all necessary action to authorise such execution, delivery and performance; 
 (iii) No Violation or Conflict. Such execution, delivery and performance do not violate or conflict with any law applicable to it, any provision of
its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets; 
 (iv) Consents. All governmental and other consents that are required to have been obtained by it with respect to this Agreement or any Credit
Support Document to which it is a party have been obtained and are in full force and effect and all conditions of any such consents have been complied with; and 
 (v) Obligations Binding. Its obligations under this Agreement and any Credit Support Document to which it is a party constitute its legal, valid and binding obligations, enforceable in accordance with their
respective terms (subject to applicable bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general application (regardless of
whether enforcement is sought in a proceeding in equity or at law)). 
  

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 (b) Absence of Certain Events. No Event of Default or Potential Event of Default or, to its knowledge,
Termination Event with respect to it has occurred and is continuing and no such event or circumstance would occur as a result of its entering into or performing its obligations under this Agreement or any Credit Support Document to which it is a
party. 
 (c) Absence of Litigation. There is not pending or, to its knowledge, threatened against it or any of its Affiliates any action, suit
or proceeding at law or in equity or before any court, tribunal, governmental body, agency or official or any arbitrator that is likely to affect the legality, validity or enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this Agreement or such Credit Support Document. 
 (d) Accuracy of Specified
Information. All applicable information that is furnished in writing by or on behalf of it to the other party and is identified for the purpose of this Section 3(d) in the Schedule is, as of the date of the information, true, accurate
and complete in every material respect. 
 (e) Payer Tax Representation. Each representation specified in the Schedule as being made by it for
the purpose of this Section 3(e) is accurate and true. 
 (f) Payee Tax Representations. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(f) is accurate and true. 
 4. Agreements 
 Each party agrees with the other that, so long as either party has or may have any obligation under this Agreement or under any Credit Support Document to which it is a
party: — 
 (a) Furnish Specified Information. It will deliver to the other party or, in certain cases under subparagraph (iii) below,
to such government or taxing authority as the other party reasonably directs: — 
 (i) any forms, documents or certificates relating to
taxation specified in the Schedule or any Confirmation; 
 (ii) any other documents specified in the Schedule or any Confirmation; and

 (iii) upon reasonable demand by such other party, any form or document that may be required or reasonably requested in writing in order to
allow such other party or its Credit Support Provider to make a payment under this Agreement or any applicable Credit Support Document without any deduction or withholding for or on account of any Tax or with such deduction or withholding at a
reduced rate (so long as the completion, execution or submission of such form or document would not materially prejudice the legal or commercial position of the party in receipt of such demand), with any such form or document to be accurate and
completed in a manner reasonably satisfactory to such other party and to be executed and to be delivered with any reasonably required certification, 
 in
each case by the date specified in the Schedule or such Confirmation or, if none is specified, as soon as reasonably practicable. 
 (b) Maintain
Authorisations. It will use all reasonable efforts to maintain in full force and effect all consents of any governmental or other authority that are required to be obtained by it with respect to this Agreement or any Credit Support Document
to which it is a party and will use all reasonable efforts to obtain any that may become necessary in the future. 
 (c) Comply with Laws. It
will comply in all material respects with all applicable laws and orders to which it may be subject if failure so to comply would materially impair its ability to perform its obligations under this Agreement or any Credit Support Document to which
it is a party. 
 (d) Tax Agreement. It will give notice of any failure of a representation made by it under Section 3(f) to be accurate
and true promptly upon learning of such failure. 
 (e) Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or
imposed upon it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is incorporated, 
  

 4 

 organised, managed and controlled. or considered to have its seat, or in which a branch or office through which it is
acting for the purpose of this Agreement is located (“Stamp Tax Jurisdiction”) and will indemnify the other party against any Stamp Tax levied or imposed upon the other party or in respect of the other party’s execution or performance
of this Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the other party. 
 5. Events of Default
and Termination Events 
 (a) Events of Default. The occurrence at any time with respect to a party or, if applicable, any Credit Support
Provider of such party or any Specified Entity of such party of any of the following events constitutes an event of default (an “Event of Default”) with respect to such party: — 
 (i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under this Agreement or delivery under Section 2(a)(i) or
2(e) required to be made by it if such failure is not remedied on or before the third Local Business Day after notice of such failure is given to the party; 
 (ii) Breach of Agreement. Failure by the party to comply with or perform any agreement or obligation (other than an obligation to make any payment under this Agreement or delivery under Section 2(a)(i) or
2(e) or to give notice of a Termination Event or any agreement or obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in accordance with this Agreement if such failure is not remedied on or before
the thirtieth day after notice of such failure is given to the party; 
 (iii) Credit Support Default. 
 (1) Failure by the party or any Credit Support Provider of such party to comply with or perform any agreement or obligation to be complied with or
performed by it in accordance with any Credit Support Document if such failure is continuing after any applicable grace period has elapsed; 
 (2) the expiration or termination of such Credit Support Document or the failing or ceasing of such Credit Support Document to be in full force and effect for the purpose of this Agreement (in either case other than in accordance with its
terms) prior to the satisfaction of all obligations of such party under each Transaction to which such Credit Support Document relates without the written consent of the other party; or 
 (3) the party or such Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges the validity of, such
Credit Support Document; 
 (iv) Misrepresentation. A representation (other than a representation under Section 3(e) or (f)) made
or repeated or deemed to have been made or repeated by the party or any Credit Support Provider of such party in this Agreement or any Credit Support Document proves to have been incorrect or misleading in any material respect when made or repeated
or deemed to have been made or repeated; 
 (v) Default under Specified Transaction. The party, any Credit Support Provider of such
party or any applicable Specified Entity of such party (1) defaults under a Specified Transaction and, after giving effect to any applicable notice requirement or grace period, there occurs a liquidation of, an acceleration of obligations
under, or an early termination of, that Specified Transaction, (2) defaults, after giving effect to any applicable notice requirement or grace period, in making any payment or delivery due on the last payment, delivery or exchange date of, or
any payment on early termination of, a Specified Transaction (or such default continues for at least three Local Business Days if there is no applicable notice requirement or grace period) or (3) disaffirms, disclaims, repudiates or rejects, in
whole or in part, a Specified Transaction (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf); 
 (vi) Cross Default. If “Cross Default” is specified in the Schedule as applying to the party, the occurrence or existence of (1) a default, event of default or other similar condition or event
(however 
  

 5 

 described) in respect of such party, any Credit Support Provider of such party or any applicable
Specified Entity of such party under one or more agreements or instruments relating to Specified Indebtedness of any of them (individually or collectively) in an aggregate amount of not less than the applicable Threshold Amount (as specified in the
Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable at such time of being declared, due and payable under such agreements or instruments, before it would otherwise have been due and payable or (2) a default
by such party, such Credit Support Provider or such Specified Entity (individually or collectively) in making one or more payments on the due date thereof in an aggregate amount of not less than the applicable Threshold Amount under such agreements
or instruments (after giving effect to any applicable notice requirement or grace period); 
 (vii) Bankruptcy. The party, any Credit
Support Provider of such party or any applicable Specified Entity of such party:– 
 (1) is dissolved (other than pursuant to a
consolidation, amalgamation or merger); (2) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; (3) makes a general assignment, arrangement or
composition with or for the benefit of its creditors; (4) institutes or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law
affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition (A) results in a judgment of
insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation or (B) is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation
thereof, (5) has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes subject to the appointment of an administrator, provisional
liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (7) has a secured party take possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each
case within 30 days thereafter; (8) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (1) to (7) (inclusive);
or (9) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; or 
 (viii) Merger Without Assumption. The party or any Credit Support Provider of such party consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to, another entity and, at the time
of such consolidation, amalgamation, merger or transfer: – 
 (1) the resulting, surviving or transferee entity fails to assume all the
obligations of such party or such Credit Support Provider under this Agreement or any Credit Support Document to which it or its predecessor was a party by operation of law or pursuant to an agreement reasonably satisfactory to the other party to
this Agreement; or 
 (2) the benefits of any Credit Support Document fail to extend (without the consent of the other party) to the
performance by such resulting, surviving or transferee entity of its obligations under this Agreement. 
 (b) Termination Events. The
occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of such party or any Specified Entity of such party of any event specified below constitutes an Illegality if the event is specified in (i) below, a
Tax Event if the event is specified in (ii) below or a Tax Event Upon Merger if the event is specified in (iii) below, and, if specified to be applicable, a Credit Event 
  

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 Upon Merger if the event is specified pursuant to (iv) below or an Additional Termination Event if the event is
specified pursuant to (v) below:— 
 (i) Illegality. Due to the adoption of, or any change in, any applicable law after the
date on which a Transaction is entered into, or due to the promulgation of, or any change in, the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law after such date. it becomes unlawful
(other than as a result of a breach by the party of Section 4(b)) for such party (which will be the Affected Party):— 
 (1) to
perform any absolute or contingent obligation to make a payment or delivery or to receive a payment or delivery in respect of such Transaction or to comply with any other material provision of this Agreement relating to such Transaction; or

 (2) to perform, or for any Credit Support Provider of such party to perform, any contingent or other obligation which the party (or such
Credit Support Provider) has under any Credit Support Document relating to such Transaction; 
 (ii) Tax Event. Due to (x) any
action taken by a taxing authority, or brought in a court of competent jurisdiction, on or after the date on which a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or
(y) a Change in Tax Law, the party (which will be the Affected Party) will, or there is a substantial likelihood that it will, on the next succeeding Scheduled Payment Date (1) be required to pay to the other party an additional amount in
respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount is required to be deducted or withheld for or on account of a
Tax (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect of such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B));

 (iii) Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding Scheduled Payment Date will either
(1) be required to pay an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been
deducted or withheld for or on account of any Indemnifiable Tax in respect of which the other party is not required to pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a party
consolidating or amalgamating with, or merging with or into, or transferring all or substantially all its assets to, another entity (which will be the Affected Party) where such action does not constitute an event described in
Section 5(a)(viii); 
 (iv) Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as
applying to the party, such party (“X”), any Credit Support Provider of X or any applicable Specified Entity of X consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to, another entity
and such action does not constitute an event described in Section 5(a)(viii) but the creditworthiness of the resulting, surviving or transferee entity is materially weaker than that of X, such Credit Support Provider or such Specified Entity,
as the case may be, immediately prior to such action (and, in such event, X or its successor or transferee, as appropriate, will be the Affected Party); of 
 (v) Additional Termination Event. If any “Additional Termination Event” is specified in the Schedule or any Confirmation as applying, the occurrence of such event (and, in such event, the Affected
Party or Affected Parties shall be as specified for such Additional Termination Event in the Schedule or such Confirmation). 
 (c) Event of Default
and Illegality. If an event or circumstance which would otherwise constitute or give rise to an Event of Default also constitutes an Illegality, it will be treated as an Illegality and will not constitute an Event of Default. 
  

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 6. Early Termination 
 (a) Right to Terminate Following Event of Default. If at any time an Event of Default with respect to a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the
“Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting Party specifying the relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in
respect of all outstanding Transactions. If, however, “Automatic Early Termination” is specified in the Schedule as applying to a party, then an Early Termination Date in respect of all outstanding Transactions will occur immediately upon
the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately preceding the institution of the relevant proceeding
or the presentation of the relevant petition upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8). 
 (b) Right to Terminate Following Termination Event. 
 (i) Notice. If a Termination Event occurs, an Affected Party will, promptly upon becoming aware of it, notify the other party, specifying the nature of that Termination Event and each Affected Transaction and will also give such
other information about that Termination Event as the other party may reasonably require. 
 (ii) Transfer to Avoid Termination Event.
If either an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the Affected Party, the Affected Party will, as a condition to its right
to designate an Early Termination Date under Section 6(b)(iv), use all reasonable efforts (which will not require such party to incur a loss, excluding immaterial, incidental expenses) to transfer within 20 days after it gives notice under
Section 6(b)(i) all its rights and obligations under this Agreement in respect of the Affected Transactions to another of its Offices or Affiliates so that such Termination Event ceases to exist. 
 If the Affected Party is not able to make such a transfer it will give notice to the other party to that effect within such 20 day period, whereupon the
other party may effect such a transfer within 30 days after the notice is given under Section 6(b)(i). 
 Any such transfer by a party
under this Section 6(b)(ii) will be subject to and conditional upon the prior written consent of the other party, which consent will not be withheld if such other party’s policies in effect at such time would permit it to enter into
transactions with the transferee on the terms proposed. 
 (iii) Two Affected Parties. If an Illegality under Section 5(b)(i)(1)
or a Tax Event occurs and there are two Affected Parties, each party will use all reasonable efforts to reach agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to avoid that Termination Event. 
 (iv) Right to Terminate. If:— 
 (1) a transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the case may be, has not been effected with respect to all Affected Transactions within 30 days after an Affected Party gives notice under
Section 6(b)(i); or 
 (2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional Termination Event
occurs, or a Tax Event Upon Merger occurs and the Burdened Party is not the Affected Party, 
 either party in the case of an Illegality, the
Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination Event if there is more than one Affected Party, or the party which is not the Affected Party in the case of a Credit
Event Upon Merger or an Additional Termination Event if there is only one Affected Party may, by not more than 20 days notice to the other party and provided that the relevant Termination Event is then continuing, designate a day not earlier than
the day such notice is effective as an Early Termination Date in respect of all Affected Transactions. 
  

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 (c) Effect of Designation. 
 (i) If notice designating an Early Termination Date is given under Section 6(a) or (b), the Early Termination Date will occur on the date so
designated, whether or not the relevant Event of Default or Termination Event is then continuing. 
 (ii) Upon the occurrence or effective
designation of an Early Termination Date, no further payments or deliveries under Section 2(a)(i) or 2(e) in respect of the Terminated Transactions will be required to be made, but without prejudice to the other provisions of this Agreement.
The amount, if any, payable in respect of an Early Termination Date shall be determined pursuant to Section 6(e). 
 (d)
Calculations. 
 (i) Statement. On or as soon as reasonably practicable following the occurrence of an
Early Termination Date, each party will make the calculations on its part, if any, contemplated by Section 6(e) and will provide to the other party a statement (1) showing, in reasonable detail, such calculations (including all relevant
quotations and specifying any amount payable under Section 6(e)) and (2) giving details of the relevant account to which any amount payable to it is to be paid. In the absence of written confirmation from the source of a quotation obtained
in determining a Market Quotation, the records of the party obtaining such quotation will be conclusive evidence of the existence and accuracy of such quotation. 
 (ii) Payment Date. An amount calculated as being due in respect of any Early Termination Date under Section 6(e) will be payable on the day that notice of the amount payable is effective (in the case of an
Early Termination Date which is designated or occurs as a result of an Event of Default) and on the day which is two Local Business Days after the day on which notice of the amount payable is effective (in the case of an Early Termination Date which
is designated as a result of a Termination Event). Such amount will be paid together with (to the extent permitted under applicable law) interest thereon (before as well as after judgment) in the Termination Currency, from (and including) the
relevant Early Termination Date to (but excluding) the date such amount is paid, at the Applicable Rate. Such interest will be calculated on the basis of daily compounding and the actual number of days elapsed. 
 (e) Payments on Early Termination. If an Early Termination Date occurs, the following provisions shall apply based on the parties’ election in the
Schedule of a payment measure, either “Market Quotation” or “Loss”, and a payment method, either the “First Method” or the “Second Method”. If the parties fail to designate a payment measure or payment method
in the Schedule, it will be deemed that “Market Quotation” or the “Second Method”, as the case may be, shall apply. The amount, if any, payable in respect of an Early Termination Date and determined pursuant to this Section will
be subject to any Set-off. 
 (i) Events of Default. If the Early Termination Date results from an Event of Default:— 

(1) First Method and Market Quotation. If the First Method and Market Quotation apply, the Defaulting Party will pay to the Non-defaulting Party
the excess, if a positive number, of (A) the sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party over (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. 
 (2) First
Method and Loss. If the First Method and Loss apply, the Defaulting Party will pay to the Non-defaulting Party, if a positive number, the Non-defaulting Party’s Loss in respect of this Agreement. 
 (3) Second Method and Market Quotation. If the Second Method and Market Quotation apply, an amount will be payable equal to (A) the sum of the
Settlement Amount (determined by the 
  

 9 

 Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency Equivalent
of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If that amount is a positive number, the Defaulting Party will pay it to the
Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting Party. 
 (4) Second Method and Loss. If the Second Method and Loss apply, an amount will be payable equal to the Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a positive number, the Defaulting Party will pay
it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting Party. 
 (ii) Termination Events. If the Early Termination Date results from a Termination Event:— 
 (1)
One Affected Party. If there is one Affected Party, the amount payable will be determined in accordance with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss applies, except that, in either case,
references to the Defaulting Party and to the Non-defaulting Party will be deemed to be references to the Affected Party and the party which is not the Affected Party, respectively, and, if Loss applies and fewer than all the Transactions are being
terminated, Loss shall be calculated in respect of all Terminated Transactions. 
 (2) Two Affected Parties. If there are two Affected
Parties:— 
 (A) if Market Quotation applies, each party will determine a Settlement Amount in respect of the Terminated Transactions,
and an amount will be payable equal to (I) the sum of (a) one-half of the difference between the Settlement Amount of the party with the higher Settlement Amount (“X”) and the Settlement Amount of the party with the lower
Settlement Amount (“Y”) and (b) the Termination Currency Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency Equivalent of the Unpaid Amounts owing to Y; and 
 (B) if Loss applies, each party will determine its Loss in respect of this Agreement (or, if fewer than all the Transactions are being terminated, in
respect of all Terminated Transactions) and an amount will be payable equal to one-half of the difference between the Loss of the party with the higher Loss (“X”) and the Loss of the party with the lower Loss (“Y”). 

If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of that amount to Y.

 (iii) Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs because “Automatic Early Termination” applies in
respect of a party, the amount determined under this Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to reflect any payments or deliveries made by one party to the other under this Agreement (and
retained by such other party) during the period from the relevant Early Termination Date to the date for payment determined under Section 6(d)(ii). 
 (iv) Pre-Estimate. The parties agree that if Market Quotation applies an amount recoverable under this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is payable for the loss of bargain and the
loss of protection against future risks and except as otherwise provided in this Agreement neither party will be entitled to recover any additional damages as a consequence of such losses. 
  

 10 

 7. Transfer 
 Subject
to Section 6(b)(ii), neither this Agreement nor any interest or obligation in or under this Agreement may be transferred (whether by way of security or otherwise) by either party without the prior written consent of the other party, except
that:— 
 (a) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation with, or merger with or into, or transfer of
all or substantially all its assets to, another entity (but without prejudice to any other right or remedy under this Agreement); and 
 (b) a party may make
such a transfer of all or any part of its interest in any amount payable to it from a Defaulting Party under Section 6(e). 
 Any purported transfer
that is not in compliance with this Section will be void. 
 8. Contractual Currency 
 (a) Payment in the Contractual Currency. Each payment under this Agreement will be made in the relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To
the extent permitted by applicable law, any obligation to make payments under this Agreement in the Contractual Currency will not be discharged or satisfied by any tender in any currency other than the Contractual Currency, except to the extent such
tender results in the actual receipt by the party to which payment is owed, acting in a reasonable manner and in good faith in converting the currency so tendered into the Contractual Currency, of the full amount in the Contractual Currency of all
amounts payable in respect of this Agreement. If for any reason the amount in the Contractual Currency so received falls short of the amount in the Contractual Currency payable in respect of this Agreement, the party required to make the payment
will, to the extent permitted by applicable law, immediately pay such additional amount in the Contractual Currency as may be necessary to compensate for the shortfall. If for any reason the amount in the Contractual Currency so received exceeds the
amount in the Contractual Currency payable in respect of this Agreement, the party receiving the payment will refund promptly the amount of such excess. 
 (b) Judgments. To the extent permitted by applicable law, if any judgment or order expressed in a currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in
respect of this Agreement, (ii) for the payment of any amount relating to any early termination in respect of this Agreement or (iii) in respect of a judgment or order of another court for the payment of any amount described in (i) or
(ii) above, the party seeking recovery, after recovery in full of the aggregate amount to which such party is entitled pursuant to the judgment or order, will be entitled to receive immediately from the other party the amount of any shortfall
of the Contractual Currency received by such party as a consequence of sums paid in such other currency and will refund promptly to the other party any excess of the Contractual Currency received by such party as a consequence of sums paid in such
other currency if such shortfall or such excess arises or results from any variation between the rate of exchange at which the Contractual Currency is converted into the currency of the judgment or order for the purposes of such judgment or order
and the rate of exchange at which such party is able, acting in a reasonable manner and in good faith in converting the currency received into the Contractual Currency, to purchase the Contractual Currency with the amount of the currency of the
judgment or order actually received by such party. The term “rate of exchange” includes, without limitation, any premiums and costs of exchange payable in connection with the purchase of or conversion into the Contractual Currency.

 (c) Separate Indemnities. To the extent permitted by applicable law, these indemnities constitute separate and independent obligations from
the other obligations in this Agreement, will be enforceable as separate and independent causes of action, will apply notwithstanding any indulgence granted by the party to which any payment is owed and will not be affected by judgment being
obtained or claim or proof being made for any other sums payable in respect of this Agreement. 
 (d) Evidence of Loss. For the purpose of this
Section 8, it will be sufficient for a party to demonstrate that it would have suffered a loss had an actual exchange or purchase been made. 
  

 11 

 9. Miscellaneous 
 (a)
Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties with respect to its subject matter and supersedes all oral communication and prior writings with respect thereto. 
 (b) Amendments. No amendment, modification or waiver in respect of this Agreement will be effective unless in writing (including a writing evidenced by a
facsimile transmission) and executed by each of the parties or confirmed by an exchange of telexes or electronic messages on an electronic messaging system. 
 (c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties under this Agreement will survive the termination of any Transaction. 
 (d) Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and privileges provided in this Agreement are cumulative and
not exclusive of any rights, powers, remedies and privileges provided by law. 
 (e) Counterparts and Confirmations.

 (i) This Agreement (and each amendment, modification and waiver in respect of it) may be executed and delivered in counterparts
(including by facsimile transmission), each of which will be deemed an original. 
 (ii) The parties intend that they are legally bound by the
terms of each Transaction from the moment they agree to those terms (whether orally or otherwise). A Confirmation shall be entered into as soon as practicable and may be executed and delivered in counterparts (including by facsimile transmission) or
be created by an exchange of telexes or by an exchange of electronic messages on an electronic messaging system, which in each case will be sufficient for all purposes to evidence a binding supplement to this Agreement. The parties will specify
therein or through another effective means that any such counterpart, telex or electronic message constitutes a Confirmation. 
 (f) No Waiver of
Rights. A failure or delay in exercising any right, power or privilege in respect of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to
preclude any subsequent or further exercise, of that right, power or privilege or the exercise of any other right, power or privilege. 
 (g)
Headings. The headings used in this Agreement are for convenience of reference only and are not to affect the construction of or to be taken into consideration in interpreting this Agreement. 
 10. Offices; Multibranch Parties 
 (a) If Section 10(a) is
specified in the Schedule as applying, each party that enters into a Transaction through an Office other than its head or home office represents to the other party that, notwithstanding the place of booking office or jurisdiction of incorporation or
organisation of such party, the obligations of such party are the same as if it had entered into the Transaction through its head or home office. This representation will be deemed to be repeated by such party on each date on which a Transaction is
entered into. 
 (b) Neither party may change the Office through which it makes and receives payments or deliveries for the purpose of a Transaction without
the prior written consent of the other party. 
 (c) If a party is specified as a Multibranch Party in the Schedule, such Multibranch Party may make and
receive payments or deliveries under any Transaction through any Office listed in the Schedule, and the Office through which it makes and receives payments or deliveries with respect to a Transaction will be specified in the relevant Confirmation.

 11. Expenses 
 A Defaulting Party will, on demand,
indemnify and hold harmless the other party for and against all reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other party by reason of the enforcement and protection of its rights under this Agreement or any
Credit Support Document to which the Defaulting Party is a party or by reason of the early termination of any Transaction, including, but not limited to, costs of collection. 
  

 12 

 12. Notices 
 (a)
Effectiveness. Any notice or other communication in respect of this Agreement may be given in any manner set forth below (except that a notice or other communication under Section 5 or 6 may not be given by facsimile transmission
or electronic messaging system) to the address or number or in accordance with the electronic messaging system details provided (see the Schedule) and will be deemed effective as indicated:— 
 (i) if in writing and delivered in person or by courier, on the date it is delivered; 
 (ii) if sent by telex, on the date the recipient’s answerback is received; 
 (iii) if sent by facsimile transmission, on the date that transmission is received by a responsible employee of the recipient in legible form (it being
agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender’s facsimile machine); 
 (iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), on the date that mail is delivered or its delivery is attempted; or 
 (v) if sent by electronic messaging system, on the date that electronic message is received, 
 unless the date of that delivery (or attempted delivery) or that receipt as applicable, is not a Local Business Day or that communication is delivered (or attempted) or
received, as applicable, after the close of business on a Local Business Day, in which case that communication shall be deemed given and effective on the first following day that is a Local Business Day. 
 (b) Change of Addresses. Either party may by notice to the other change the address, telex or facsimile number or electronic messaging system
details at which notices or other communications are to be given to all 
 13. Governing Law and Jurisdiction 
 (a) Governing Law. This Agreement will be governed by and construed in accordance with the law specified in the Schedule. 
 (b) Jurisdiction. With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”), each party irrevocably:—

 (i) submits to the jurisdiction of the English courts, if this Agreement is expressed to be governed by English law, or to the
non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City, if this Agreement is expressed to be governed by the laws of the State of New York; and

 (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any
claim that such Proceedings have been brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party. 
 Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction (outside, if this Agreement is expressed to be governed by English
law, the Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or any modification, extension or re-enactment thereof for the time being in force) nor will the bringing of Proceedings in any one or more
jurisdictions preclude the bringing of Proceedings in any other jurisdiction. 
 (c) Service of Process. Each party irrevocably appoints the
Process Agent (if any) specified opposite its name in the Schedule to receive, for it and on its behalf, service of process in any Proceedings. If for any 
  

 13 

 reason any party’s Process Agent is unable to act as such, such party will promptly notify the other party and
within 30 days appoint a substitute process agent acceptable to the other party. The parties irrevocably consent to service of process given in the manner provided for notices in Section 12. Nothing in this Agreement will affect the right of
either party to serve process in any other manner permitted by law. 
 (d) Waiver of Immunities. Each party irrevocably waives, to the fullest
extent permitted by applicable law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for recovery of property, (iv) attachment of its assets (whether before or after judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts of any jurisdiction and irrevocably agrees, to the extent permitted by applicable law, that it will not claim any such immunity in any Proceedings. 
 14. Definitions 
 As used in this Agreement: — 
 “Additional Termination Event” has the meaning specified in Section 5(b). 
 “Affected Party” has the meaning specified in Section 5(b). 
 “Affected Transactions”
means (a) with respect to any Termination Event consisting of an Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such Termination Event and (b) with respect to any other Termination Event, all
Transactions. 
 “Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled, directly or indirectly, by
the person, any entity that controls, directly or indirectly, the person or any entity directly or indirectly under common control with the person. For this purpose, “control” of any entity or person means ownership of a majority of the
voting power of the entity or person. 
 “Applicable Rate” means: — 
 (a) in respect of obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate; 
 (b) in respect of an obligation to pay an amount under Section 6(e) of either party from and after the date (determined in accordance with Section 6(d)(ii)) on which that amount is payable, the Default Rate;

 (c) in respect of all other obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Non-defaulting Party, the
Non-default Rate; and 
 (d) in all other cases, the Termination Rate. 
 “Burdened Party” has the meaning specified in Section 5(b). 
 “Change in Tax Law” means the enactment,
promulgation, execution or ratification of, or any change in or amendment to, any law (or in the application or official interpretation of any law) that occurs on or after the date on which the relevant Transaction is entered into. 
 “consent” includes a consent, approval, action, authorisation, exemption, notice, filing, registration or exchange control consent. 
 “Credit Event Upon Merger” has the meaning specified in Section 5(b). 
 “Credit Support Document” means any agreement or instrument that is specified as such in this Agreement. 
 “Credit Support Provider” has the meaning specified in the Schedule. 
 “Default Rate” means a rate per annum
equal to the cost (without proof or evidence of any actual cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant amount plus 1% per annum. 
  

 14 

 “Defaulting Party” has the meaning specified in Section 6(a). 
 “Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv). 
 “Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule. 
 “Illegality” has the meaning specified in Section 5(b). 
 “Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a payment under this Agreement but for a present or former connection between the jurisdiction of the government or taxation
authority imposing such Tax and the recipient of such payment or a person related to such recipient (including, without limitation, a connection arising from such recipient or related person being or having been a citizen or resident of such
jurisdiction, or being or having been organised, present or engaged in a trade or business in such jurisdiction, or having or having had a permanent establishment or fixed place of business in such jurisdiction, but excluding a connection arising
solely from such recipient or related person having executed, delivered, performed its obligations or received a payment under, or enforced, this Agreement or a Credit Support Document). 
 “law” includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by the practice of any relevant governmental revenue authority) and “lawful” and
“unlawful” will be construed accordingly. 
 “Local Business Day” means, subject to the Schedule, a day on which commercial banks
are open for business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions contained, or incorporated by reference, in this Agreement, (b) in relation to any other payment, in the place where the relevant account is located and, if
different. in the principal financial centre, if any, of the currency of such payment, (c) in relation to any notice or other communication, including notice contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by Section 2(b), in the place where the relevant new account is to be located and (d) in relation to Section 5(a)(v)(2), in the relevant locations for
performance with respect to such Specified Transaction. 
 “Loss” means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency Equivalent of an amount that party reasonably determines in good faith to be its total losses and costs (or gain, in which case expressed as a negative number) in connection
with this Agreement or that Terminated Transaction or group of Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at the election of such party but without duplication, loss or cost incurred as a result
of its terminating, liquidating, obtaining or reestablishing any hedge or related trading position (or any gain resulting from any of them). Loss includes losses and costs (or gains) in respect of any payment or delivery required to have been made
(assuming satisfaction of each applicable condition precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid duplication, if Section 6(c)(i)(1) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include
a party’s legal fees and out-of-pocket expenses referred to under Section 11. A party will determine its Loss as of the relevant Early Termination Date, or, if that is not reasonably practicable, as of the earliest date thereafter as is
reasonably practicable. A party may (but need not) determine its Loss by reference to quotations of relevant rates or prices from one or more leading dealers in the relevant markets. 
 “Market Quotation” means, with respect to one or more Terminated Transactions and a party making the determination, an amount determined on the basis of quotations from Reference Market-makers. Each
quotation will be for an amount, if any, that would be paid to such party (expressed as a negative number) or by such party (expressed as a positive number) in consideration of an agreement between such party (taking into account any existing Credit
Support Document with respect to the obligations of such party) and the quoting Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would have the effect of preserving for such party the economic
equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the relevant Early Termination Date, have 
  

 15 

 been required after that date. For this purpose, Unpaid Amounts in respect of the Terminated Transaction or group of
Terminated Transactions are to be excluded but, without limitation, any payment or delivery that would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early
Termination Date is to be included. The Replacement Transaction would be subject to such documentation as such party and the Reference Market-maker may, in good faith, agree. The party making the determination (or its agent) will request each
Reference Market-maker to provide its quotation to the extent reasonably practicable as of the same day and time (without regard to different time zones) on or as soon as reasonably practicable after the relevant Early Termination Date. The day and
time as of which those quotations are to be obtained will be selected in good faith by the party obliged to make a determination under Section 6(e), and, if each party is so obliged, after consultation with the other. If more than three
quotations are provided, the Market Quotation will be the arithmetic mean of the quotations, without regard to the quotations having the highest and lowest values, If exactly three such quotations are provided, the Market Quotation will be the
quotation remaining after disregarding the highest and lowest quotations. For this purpose, if more than one quotation has the same highest value or lowest value, then one of such quotations shall be disregarded. If fewer than three quotations are
provided, it will be deemed that the Market Quotation in respect of such Terminated Transaction or group of Terminated Transactions cannot be determined. 
 “Non-default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant amount. 
 “Non-defaulting Party” has the meaning specified in Section 6(a). 
 “Office” means a branch or office of a party, which may be such party’s head or home office. 
 “Potential Event of Default” means any event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default. 
 “Reference Market-makers” means four leading dealers in the relevant market selected by the party determining a Market Quotation in good faith (a) from among dealers of the highest credit
standing which satisfy all the criteria that such party applies generally at the time in deciding whether to offer or to make an extension of credit and (b) to the extent practicable, from among such dealers having an office in the same city.

 “Relevant Jurisdiction” means, with respect to a party, the jurisdictions (a) in which the party is incorporated, organised, managed
and controlled or considered to have its seat, (b) where an Office through which the party is acting for purposes of this Agreement is located, (c) in which the party executes this Agreement and (d) in relation to any payment, from or
through which such payment is made. 
 “Scheduled Payment Date” means a date on which a payment or delivery is to be made under
Section 2(a)(i) with respect to a Transaction. 
 “Set-off” means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount under Section 6 is entitled or subject (whether arising under this Agreement, another contract, applicable law or otherwise) that is exercised by, or imposed on, such
payer. 
 “Settlement Amount” means, with respect to a party and any Early Termination Date, the sum of.- 
 (a) the Termination Currency Equivalent of the Market Quotations (whether positive or negative) for each Terminated Transaction or group of Terminated Transactions for
which a Market Quotation is determined; and 
 (b) such party’s Loss (whether positive or negative and without reference to any Unpaid Amounts) for each
Terminated Transaction or group of Terminated Transactions for which a Market Quotation cannot be determined or would not (in the reasonable belief of the party making the determination) produce a commercially reasonable result. 
 “Specified Entity” has the meaning specified in the Schedule. 
  

 16 

 “Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money. 
 “Specified Transaction” means, subject to the
Schedule, (a) any transaction (including an agreement with respect thereto) now existing or hereafter entered into between one party to this Agreement (or any Credit Support Provider of such party or any applicable Specified Entity of such
party) and the other party to this Agreement (or any Credit Support Provider of such other party or any applicable Specified Entity of such other party) which is a rate swap transaction, basis swap, forward rate transaction, commodity swap,
commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions), (b) any combination of these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation. 
 “Stamp Tax” means any stamp, registration, documentation or similar tax.

 “Tax” means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature (including interest, penalties and
additions thereto) that is imposed by any government or other taxing authority in respect of any payment under this Agreement other than a stamp, registration, documentation or similar tax. 
 “Tax Event” has the meaning specified in Section 5(b). 
 “Tax Event Upon Merger” has the meaning specified in Section 5(b). 
 “Terminated Transactions” means with
respect to any Early Termination Date (a) if resulting from a Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all Transactions (in either case) in effect immediately before the effectiveness of
the notice designating that Early Termination Date (or, if “Automatic Early Termination” applies, immediately before that Early Termination Date). 
 “Termination Currency” has the meaning specified in the Schedule. 
 “Termination Currency Equivalent” means, in
respect of any amount denominated in the Termination Currency, such Termination Currency amount and, in respect of any amount denominated in a currency other than the Termination Currency (the “Other Currency”), the amount in the
Termination Currency determined by the party making the relevant determination as being required to purchase such amount of such Other Currency as at the relevant Early Termination Date, or, if the relevant Market Quotation or Loss (as the case may
be), is determined as of a later date, that later date, with the Termination Currency at the rate equal to the spot exchange rate of the foreign exchange agent (selected as provided below) for the purchase of such Other Currency with the Termination
Currency at or about 11:00 a.m. (in the city in which such foreign exchange agent is located) on such date as would be customary for the determination of such a rate for the purchase of such Other Currency for value on the relevant Early Termination
Date or that later date. The foreign exchange agent will, if only one party is obliged to make a determination under Section 6(e), be selected in good faith by that party and otherwise will be agreed by the parties 
 “Termination Event” means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be applicable, a Credit Event Upon Merger or an
Additional Termination Event. 
 “Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof or
evidence of any actual cost) to each party (as certified by such party) if it were to fund or of funding such amounts. 
 “Unpaid Amounts”
owing to any party means, with respect to an Early Termination Date, the aggregate of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would have become payable but for Section 2(a)(iii)) to such
party under Section 2(a)(i) on or prior to such Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in respect of each Terminated Transaction. for each obligation under Section 2(a)(i) which was
(or would have been but for Section 2(a)(iii)) required to be settled by delivery to such party on or prior to such Early Termination Date and which has not been so settled as at such Early Termination Date, an amount equal to the fair market

  

 17 

 value of that which was (or would have been) required to be delivered as of the originally scheduled date for delivery,
in each case together with (to the extent permitted under applicable law) interest, in the currency of such amounts, from (and including) the date such amounts or obligations were or would have been required to have been paid or performed to (but
excluding) such Early Termination Date, at the Applicable Rate. Such amounts of interest will be calculated on the basis of daily compounding and the actual number of days elapsed. The fair market value of any obligation referred to in clause
(b) above shall be reasonably determined by the party obliged to make the determination under Section 6(e) or, if each party is so obliged, it shall be the average of the Termination Currency Equivalents of the fair market values
reasonably determined by both parties. 
 IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below with effect from
the date specified on the first page of this document. 
  

							
	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 NOVASTAR MORTGAGE SUPPLEMENTAL
 INTEREST TRUST, SERIES 2006-6

		
		 	 By: Deutsche Bank National Trust Company, as
 Trustee under the Pooling and Servicing Agreement,
 acting not in its individual capacity, but solely in
its
 capacity as Trustee to NovaStar Mortgage
 Supplemental Interest Trust, Series 2006-6

  

									
					
	By	 	 /s/ Kim V. Farr
	 		 	By	 	 /s/ Melissa Wilman

	Name:	 	Kim V. Farr	 		 	Name:	 	Melissa Wilman
	Title:	 	Director	 		 	Title:	 	Vice President
	Date:	 	November 30, 2006	 		 	Date:	 	November 30, 2006

 SCHEDULE 
 TO THE 
 MASTER AGREEMENT 
 DATED AS OF NOVEMBER 30, 2006 
 between 
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 A corporation organized under the laws of Delaware 
 (“Party A”) 
 and 
 NOVASTAR MORTGAGE SUPPLEMENTAL
INTEREST TRUST, SERIES 2006-6, 
 a New York common law trust 
 (“Party B”) 
 PART 1 
 TERMINATION PROVISIONS 
  

	(a)	“Specified Entity” means in relation to Party A and Party B: Not Applicable. 

  

	(b)	“Specified Transaction” means: means, with respect to Party A, all Transactions under this Agreement and with respect to Party B, none. 

  

	(c)	The “Cross-Default” provisions of Section 5(a)(vi) will not apply to Party B and will apply to Party A with a Threshold Amount equal to 3 per cent of
Party A’s “Total Equity Capital” (as shown in the most recently filed Consolidated Report of Condition and Income for a Bank with Domestic and Foreign Offices Only (“Call Report”), or in any report in replacement thereof).

  

	(d)	The “Credit Event Upon Merger” provisions of Section 5(b)(iv) will not apply to Party A and will not apply to Party B. 

  

	(e)	The “Automatic Early Termination” provision of Section 6(a) will not apply to Party A and will not apply to Party B. 

  

	(f)	Payments on Early Termination. For the purpose of Section 6(e) of this Agreement : 

  

	 	(i)	Market Quotation will apply; 

 provided that,
notwithstanding Section 6 of this Agreement, so long as Party A is (A) the sole Affected Party in respect of an Additional Termination Event or a Tax Event Upon Merger or (B) the Defaulting Party in respect of any Event of Default,
paragraphs (i) to (vi) below shall apply: 
  

	 	(a)	The definition of “Market Quotation” shall be deleted in its entirety and replaced with the following: 

  

 2 

 “Market Quotation” means, with respect to one or more Terminated Transactions, a Firm
Offer which is (1) made by a Reference Market-maker that is an Eligible Replacement, (2) for an amount that would be paid to Party B (expressed as a negative number) or by Party B (expressed as a positive number) in consideration of an
agreement between Party B and such Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would have the effect of preserving for such party the economic equivalent of any payment or delivery
(whether the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the parties under Section 2(a)(i) in respect of such Terminated Transactions or group of Terminated
Transactions that would, but for the occurrence of the relevant Early Termination Date, have been required after that Early Termination Date, (3) made on the basis that Unpaid Amounts in respect of the Terminated Transaction or group of
Transactions are to be excluded but, without limitation, any payment or delivery that would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early Termination
Date is to be included and (4) made in respect of a Replacement Transaction with terms substantially the same as those of this Agreement (save for the exclusion of provisions relating to Transactions that are not Terminated Transactions).”

 (B) The definition of “Settlement Amount” shall be deleted in its entirety and replaced with the following: 
 ““Settlement Amount” means, with respect to any Early Termination Date, an amount (as determined by Party B based on information
provided by Reference Market-makers) equal to the Termination Currency Equivalent of the amount (whether positive or negative) of any Market Quotation for the relevant Terminated Transaction or group of Terminated Transactions that is accepted by
Party B so as to become legally binding; provided that: 
 (1) If, on the day falling ten Local Business Days after the day on which the Early
Termination Date is designated or such later day as Party B may specify in writing to Party A (but in either case no later than the Early Termination Date) (such day, the “Latest Settlement Amount Determination Day”), no Market
Quotation for the relevant Terminated Transaction or group of Terminated Transactions has been accepted by Party B so as to become legally binding and one or more Market Quotations have been made and remain capable of becoming legally binding upon
acceptance, the Settlement Amount shall equal the Termination Currency Equivalent of the amount (whether positive or negative) of the lowest of such Market Quotations; or 
 (2) If, on the Latest Settlement Amount Determination Day, no Market Quotation for the relevant Terminated Transaction or group of Terminated Transactions is accepted by Party B so as to become legally binding and no
Market Quotations have been made and remain capable of becoming legally binding upon acceptance, the Settlement Amount shall equal Party B’s Loss (whether positive or negative and without reference to any Unpaid amounts) for the relevant
Terminated Transaction or group of Terminated Transactions. 
 (3) For the purpose of clause (4) of the definition of Market Quotation,
Party B shall have determined (upon receipt of evidence that the Rating Agency Condition has been satisfied), whether a Firm Offer is made in respect of a Replacement Transaction with commercial terms substantially the same as those of this
Agreement (save for the 
  

 3 

 exclusion of provisions relating to Transactions that are not Terminated Transactions); provided,
however, that notwithstanding the provisions of this Part 1(f)(i), nothing in this Agreement shall preclude Party A from obtaining Market Quotations. 
 (4) At any time on or before the Latest Settlement Amount Determination Day at which two or more Market Quotations remain capable of becoming legally binding upon acceptance, Party B shall be entitled to accept only
the lowest of such Market Quotations. 
 (5) If Party B requests Party A in writing to obtain Market Quotations, Party A shall use its
reasonable efforts to do so before the Latest Settlement Amount Determination Day. 
 (6) If the Settlement Amount is a negative number,
Section 6(e)(i)(3) of this Agreement shall be deleted in its entirety and replaced with the following: 
 “Second Method and
Market Quotation. If Second Method and Market Quotation apply, subject to Part 1(f)(ii) below, (1) Party B shall pay to Party A an amount equal to the absolute value of the Settlement Amount in respect of the Terminated Transactions,
(2) Party B shall pay to Party A the Termination Currency Equivalent of the Unpaid Amounts owing to Party A and (3) Party A shall pay to Party B the Termination Currency Equivalent of the Unpaid Amounts owing to Party B, provided that,
(i) the amounts payable under (2) and (3) shall be subject to netting in accordance with Section 2(c) of this Agreement and (ii) notwithstanding any other provision of this Agreement, any amount payable by Party A under
(3) shall not be netted-off against any amount payable by Party B under (1).”; 
 (ii) Second Method will apply; provided,
however, that Party B shall have no obligation to make any payment to Party A under Section 6 as a result of any Event of Default or Termination Event other than an Event of Default of Party B under Section 5(a)(i) of this Agreement or an
Additional Termination Event in Part 1(j)(iv) or (v). This modification of the terms of Section 6 of this Agreement has been freely bargained for by the parties and will not affect the obligation, if any, of Party B with respect to Unpaid
Amounts. Party A acknowledges having received consideration sufficient to warrant its agreement to the approach contemplated in this Part 1(f) provision. 
  

	(g)	“Termination Currency” means United States Dollars. 

  

	(h)	Tax Event and Tax Event Upon Merger. Section 5(b)(ii) will apply; provided that the words “(x) any action taken by a taxing authority, or brought in a court of
competent jurisdiction, on or after the date on which a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (y)” shall be deleted. 

 Section 5(b)(iii) will apply, provided that Party A shall not be entitled to designate an Early Termination Date by reason of a Tax Event upon Merger
in respect of which it is the Affected Party. 
 Section 6(b)(ii) will apply, provided that the words “or if a Tax Event Upon Merger
occurs and the Burdened Party is the Affected Party” shall be deleted. 
  

 4 

	(i)	Rating Event. If a Ratings Event (as defined below) occurs with respect to Party A (or any applicable Credit Support Provider), then (i) Party A will promptly give
notice of the circumstances to Party B (with a copy to the Trustee) and (ii)(A) Party A will at its own expense (and subject to the Rating Agency Condition), assign the Transactions under this Agreement to a third party within thirty (30) days
of such Ratings Event that meets or exceeds, or as to which any applicable Credit Support Provider meets or exceeds, the Approved Ratings Thresholds (as defined below) on terms substantially similar to this Agreement and must obtain a release of the
mutual obligations of Party A and Party B under this Agreement (a “Release”) and provided (x) the right to designate an Early Termination Date under the substitute documentation on the grounds contemplated in
Section 5(a)(vii) of this Agreement would be enforceable against that entity (or a receiver, conservator or trustee for it or its property), subject, if applicable, only to such limitations as are provided for in the Federal Deposit Insurance
Act (the “FDIA”), (y) Party B would, in proceedings of the kinds contemplated in that provision, have an enforceable right to apply any collateral posted by the proposed counterparty to secure its obligations under the proposed
replacement agreement without need for leave of court or any other person (subject, if applicable, only to such qualifications as may be relevant under the FDIA), and (z) no withholding taxes would be applicable to payments to be made by or to
Party B in respect of payments due under Section 2(a) of the proposed agreement or (B) Party A will, at its own expense (and subject to the Rating Agency Condition) and within thirty (30) days of such Ratings Event, deliver
collateral, in the amount specified under the Credit Support Annex or (C) otherwise provide, at its own expense and within thirty (30) days of such Ratings Event, Alternative Credit Support, as defined below, subject to the Rating Agency
Condition (provided, however, that if Standard & Poor’s, a division of The McGraw Hill Companies, Inc. (it or its successor, “S&P”) or Fitch, Inc. (it or its successor, “Fitch”, and collectively
with S&P, each a “Rating Agency” and together, the “Rating Agencies”) (A) withdraws its rating for the short-term unsecured and unsubordinated debt (the “Short Term Rating”) of Party A or (B) reduces its
Short Term Rating of Party A to a level below “BBB-” by S&P or “F2” by Fitch (a “Second Trigger Event”), Party A will no longer be eligible to deliver collateral pursuant to clause (ii)(B) or provide Alternative
Credit Support pursuant to clause (ii)(C), but must assign the Transactions hereunder, at its own expense, to a third party within five (5) days of such Second Trigger Event that meets or exceeds, or as to which any applicable Credit Support
Provider meets or exceeds, the Approved Ratings Thresholds (as defined below) on terms substantially similar to this Agreement and must obtain a Release under this Agreement). For purposes of this Transaction, a “Ratings Event” will occur
with respect to Party A (or any applicable Credit Support Provider), if its rating falls below (A) a Short Term Rating at least equal to “A-1” by S&P (or if no Short Term Rating exists, a rating for the long term unsecured and
unsubordinated debt of Party A of “A+”) or “F1” by Fitch such ratings being referred to herein as the “Approved Ratings Thresholds.” For purposes of this provision, “Rating Agency Condition” means, with
respect to any particular proposed act or omission to act hereunder that the party acting or failing to act must consult with any Rating Agency (which term for the avoidance of doubt excludes Moody’s Investors Service, Inc. (it or its
successor, “Moody’s”)) making a rating reduction or withdrawal (each such Rating Agency, a “Downgrading Rating Agency”) and receive from each Downgrading Rating Agency (with a copy to the Trustee) a confirmation in writing
that their respective ratings of the Certificates as in existence immediately prior to the Rating Event will be restored or maintained. For purposes of this Agreement, “Alternative Credit Support” means an absolute and unconditional
guarantee, credit intermediation arrangement, letter of credit or other additional credit support or collateral. Any Credit Support Annex or document governing Alternative Credit Support shall be made a Credit Support Document for Party A pursuant
to an amendment to this Agreement. 

  

 5 

	(j)	Additional Termination Events will apply. Each of the following will be an “Additional Termination Event”: 

 (i) A Ratings Event has occurred and Party A has not complied with (i) above, then an Additional Termination Event will have occurred with respect to
Party A. 
 (ii) Moody’s Rating Events. 
 First Rating Trigger Collateral. Party A has failed to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Annex and either (A) the Second
Rating Trigger Requirements do not apply or (B) less than 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply. 
 Second Rating Trigger Replacement. (A) The Second Rating Trigger Requirements apply and 30 or more Local Business Days have elapsed
since the last time the Second Rating Trigger Requirements did not apply and (B) (i) at least one Eligible Replacement has made a Firm Offer (which remains capable of becoming legally binding upon acceptance) to be the transferee of a
transfer to be made in accordance with Part 5(s)(ii) below and/or (ii) at least one entity with the First Trigger Required Ratings and/or the Second Trigger Required Ratings has made a Firm Offer (which remains capable of becoming legally
binding upon acceptance by the offeree) to provide an Eligible Guarantee in respect of all of Party A’s present and future obligations under this Agreement. 
 For purposes of this Agreement: 
 “Eligible Guarantee” means an unconditional and irrevocable guarantee that is provided by a guarantor as principal debtor rather than surety and is directly enforceable by Party B, where either (A) a
law firm has given a legal opinion confirming that none of the guarantor’s payments to Party B under such guarantee will be subject to withholding for Tax or (B) such guarantee provides that, in the event that any of such guarantor’s
payments to Party B are subject to withholding for Tax, such guarantor is required to pay such additional amount as is necessary to ensure that the net amount actually received by Party B (free and clear of any withholding tax) will equal the full
amount Party B would have received had no such withholding been required. 
 “Eligible Replacement” means an entity
(A) with the First Trigger Required Ratings and/or the Second Trigger Required Ratings or (B) whose present and future obligations owing to Party B are guaranteed pursuant to an Eligible Guarantee provided by a guarantor with the First
Trigger Required Ratings and/or the Second Trigger Required Ratings as evidenced by Party B’s receipt of confirmation that the Rating Agency Condition has been satisfied. 
 “Firm Offer” means an offer which, when made, was capable of becoming legally binding upon acceptance. 
 “Moody’s Short-term Rating” means a rating assigned by Moody’s under its short-term rating scale in respect of an
entity’s short-term, unsecured and unsubordinated debt obligations. 
 “Relevant Entities” means Party A and
any guarantor under an Eligible Guarantee in respect of all of Party A’s present and future obligations under this Agreement. 
 An entity shall have the “First Trigger Required Ratings” (A) where such entity is the subject of a Moody’s Short-term Rating, if such rating is “Prime-1” and its long-term, unsecured and 
  

 6 

 unsubordinated debt or counterparty obligations are rated “A2” or above by Moody’s or
(B) where such entity is not the subject of a Moody’s Short-term Rating, if its long-term, unsecured and unsubordinated debt or counterparty obligations are rated “A1” or above by Moody’s. 
 the “Second Rating Trigger Requirements” shall apply so long as no Relevant Entity has the Second Trigger Required Ratings.

 An entity shall have the “Second Trigger Required Ratings” (A) where such entity is the subject of a
Moody’s Short-term Rating, if such rating is “Prime-2” or above and its long-term, unsecured and unsubordinated debt or counterparty obligations are rated “A3” or above by Moody’s and (B) where such entity is not
the subject of a Moody’s Short-term Rating, if its long-term, unsecured and unsubordinated debt or counterparty obligations are rated “A3” or above by Moody’s. 
 So long as the Second Rating Trigger Requirements apply, Party A will at its own cost use commercially reasonable efforts to, as soon as
reasonably practicable, procure either (A) an Eligible Guarantee in respect of all of Party A’s present and future obligations under this Agreement to be provided by a guarantor with the First Trigger Required Ratings and/or the Second
Trigger Required Ratings or (B) a transfer in accordance with Part 5(s)(ii) below. 
 (iii) A Hedge Disclosure Event (as defined below)
has occurred and Party A has not, within ten (10) days after such Hedge Disclosure Event, complied with one of the solutions listed below. 
 It shall be a hedge disclosure event (“Hedge Disclosure Event”) if at any time after the date hereof, for so long as Party B is required to file periodic reports under the Securities Exchange Act of 1934, as amended, with respect
to the Certificates, NovaStar Mortgage, Inc. (the “Sponsor”) shall notify Party A that in the reasonable determination of the Sponsor acting in good faith, the “aggregate significance percentage” of all derivative instruments (as
such term is defined in Item 1115 of Regulation AB) provided by Party A and any of its affiliates to Party B (the “Significance Percentage”) is 10% or more. 
 Following a Hedge Disclosure Event, Party A shall take one of the following actions at its own expense: either (A) (1) if the Significance Percentage is 10% or more, but less than 20%, Party A shall provide
the information set forth in Item 1115(b)(1) of Regulation AB for Party A (or for the group of affiliated entities, if applicable) or (2) if the Significance Percentage is 20% or more, Party A shall provide the information set forth in
Item 1115(b)(2) of Regulation AB for Party A (or for the group of affiliated entities, if applicable) (collectively, the “Additional Hedge Disclosure Information”) to the Sponsor or (B) Party A shall assign all of its rights and
obligations under one or more Transactions (such that the Significance Percentage no longer exceeds 10% in the reasonable discretion of the Sponsor acting in good faith ) to a replacement counterparty that is rated at or above the Approved Ratings
Threshold and subject to the Rating Agency Condition, pursuant to documentation substantially similar to the documentation then in place and subject to prior notification to the Rating Agencies, which counterparty is willing to provide the
Additional Hedge Disclosure Information (with respect to itself or for its group of affiliated entities, if applicable) to the Sponsor, in the event that the significance percentage of Transactions to which it is a counterparty exceeds 10% in the
reasonable determination of the Sponsor acting in good faith (or, so long as Party A is able to provide the Swap Financial Disclosure required pursuant to Item 1115(b)(1) of Regulation AB, such that the Significance Percentage no longer exceeds
20%, in the event Party A is requested to provide the Swap Financial Disclosure required pursuant to Item 1115(b)(2) of Regulation AB). If permitted by Regulation AB, any Additional Hedge Disclosure may be provided by incorporation by reference
from reports filed pursuant to the Exchange Act. 
  

 7 

 “Regulation AB” means Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17
C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Securities and Exchange Commission (“SEC”) in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the SEC, or as may be provided by the SEC or its staff from time to time. 
 For the purposes of the Termination Events (i), (ii) and (iii) above, Party A shall be the sole Affected Party. 
 (iv) Deutsche Bank National Trust Company, as trustee (together with its successors and assigns, the “Trustee”) receives notice
(a “Termination Notice”) of an optional termination of the Pooling and Servicing Agreement among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., U.S. Bank, National Association, and Deutsche Bank National Trust Company
dated as of November 1, 2006 (the “Pooling and Servicing Agreement”) under Article XI of the Pooling and Servicing Agreement (an “Optional Termination”) and there remains no more than 5 Business Days prior to the proposed
termination date. In the case of an Optional Termination, both Party A and Party B shall have the right to cause a termination of this Agreement and, for the purposes of Section 6(e)(ii) of this Agreement, Party B shall be the sole Affected
Party. Following notification from the Trustee that it has received a Termination Notice, Party A shall provide the Trustee from time to time, upon request, with good faith estimates of the amount that would be payable under Section 6(e)(ii) in
the event of such Optional Termination. Any termination payment payable in respect of such Additional Termination Event shall be paid on the relevant termination date. 
 (v) The Pooling and Servicing Agreement is amended or otherwise modified, without the prior written consent of Party A, if such amendment or modification would materially adversely affect the rights of Party A under
the Pooling and Servicing Agreement or this Agreement, where such consent is required under the Pooling and Servicing Agreement. For the purposes of this Additional Termination Event, Party B shall be the sole Affected Party. 
  

	(k)	Events of Default. 

  

	 	(i)	The following Events of Default will not apply to Party A: Section 5(a)(ii) and Section 5(a)(v). 

  

	 	(ii)	The following Events of Default will not apply to Party B: Section 5(a)(ii), Section 5(a)(iv), Section 5(a)(v), Section 5(a)(vi) and Section 5(a)(viii). In
addition, Section 5(a)(vii) is hereby modified by deleting clauses (2), (7) and (9). 

  

	 	(iii)	Section 5(a)(vii)(4) will not apply to Party B with respect to proceedings or petitions instituted or presented by Party A or any Affiliate of Party A.

  

	 	(iv)	Section 5(a)(vii)(6) will not apply to Party B to the extent that it refers to (i) any appointment that is effected by or pursuant to the Transaction Documents or
(ii) any appointment that Party B has not become subject to. 

  

 8 

	 	(v)	Section 5(a)(vii)(8) will not apply to Party B to the extent that it applies to Section 5(a)(vii)(2),(4),(6), and (7) (except to the extent that such provisions are
not disapplied with respect to Party B). 

  

	 	(vi)	Section 5(a)(iii) will not apply to Party B except that Section 5(a)(iii)(1) will apply in respect of Party B’s obligations under Paragraph 3(b) of the Credit Support
Annex. 

  

	 	(vii)	Notwithstanding Sections 5(a)(i) and 5(a)(iii), any failure by Party A to comply with or perform any obligation to be complied with or performed by Party A under the Credit Support
Annex shall not be an Event of Default unless (A) (i) the Second Rating Trigger Requirements apply and at least 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply and (ii) such
failure is not remedied on or before the third Local Business Day after notice of such failure is given to Party A or (B) (i) a Second Trigger Event has occurred and at least 30 Local Business Days have elapsed since the date such Second
Trigger Event occurred and (ii) such failure is not remedied on or before the third Local Business Day after notice of such failure is given to Party A. 

 No Event of Default shall occur to a party when a failure to pay or deliver, or a default, event of default or other similar condition or event, as the case may be, arises solely (1) out of a wire transfer
problem or an operational or administrative error or omission (so long as the required funds or property required to make that payment or delivery were otherwise available to that party), or (2) from the general unavailability of the relevant
currency due to exchange controls or other similar governmental action, but in either case only if the payment or delivery is made within three Local Business Days after the problem has been corrected, the error or omission has been discovered or
the currency becomes generally available. 
 The foregoing is without prejudice to application to Party A and Party B of the Events of Default
in Paragraph 7 of any Credit Support Annex made part of this Agreement pursuant to Part 1(h) of this Schedule. 
 PART 2 
 TAX REPRESENTATIONS 
  

	(a)	Payer Tax Representation. For the purpose of Section 3(e) of this Agreement, each party will make with respect to itself the following representation: None.

  

	(b)	Payee Tax Representations. For the purposes of Section 3(f), each party makes the following representations: None. 

  

 9 

 PART 3 
 AGREEMENT TO DELIVER DOCUMENTS 
 For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party
agrees to deliver the following documents, as applicable: 
 (a) Tax Forms. 
 (i) Tax forms to be delivered by Party A: An executed U.S. Internal Revenue Service Form W-9 (or successor thereto) that eliminates U.S. federal backup withholding tax on payments to Party A under this Agreement.
Party A will deliver such tax form (1) before the first payment date under this Agreement, (2) as soon as practicable upon reasonable demand by Party B, and (3) as soon as practicable upon learning that any such form previously
provided by Party A has become obsolete or incorrect. 
 (ii) Tax forms to be delivered by Party B: An executed U.S. Internal Revenue Service
Form W-9 (or successor thereto) or any other applicable form that eliminates U.S. federal backup withholding tax on payments to Party B under this Agreement. Party B will deliver such tax form (1) before the first payment date under this
Agreement, (2) as soon as practicable upon reasonable demand by Party A, and (3) as soon as practicable upon actual knowledge that any such form previously provided by Party B has become obsolete or incorrect. 
 (b) Other Documents to be Delivered. 
  

							
	 PARTY REQUIRED TO
 DELIVER DOCUMENT
	 	 FORM/DOCUMENT/
CERTIFICATE
	 	 DATE BY WHICH
 TO BE DELIVERED
	 	 COVERED BY
 SECTION 3(d)
 REPRESENTATION

	Party A & B	 	Signing Authority, being evidence of authority, incumbency and specimen signature of each person executing any document on its behalf in connection with this Agreement and any Credit Support
Document.	 	Upon execution of this Agreement and, if requested, any Confirmation.	 	Yes
				
	Party A	 	A copy, certified by the secretary or assistant secretary of Party A, of the resolutions of Party A’s board of directors authorizing the execution, delivery and performance by Party A of
this Agreement and authorizing Party A to enter into Transactions hereunder.	 	Upon execution of this Agreement.	 	Yes.

  

 10 

							
	Party B	 	Executed copies of the Pooling and Servicing Agreement (as defined above), the Prospectus Supplement, and such other documents as requested by Party A.	 	Upon execution of this Agreement.	 	No
				
	Party B	 	Any and all proposed and executed amendments to the Pooling and Servicing Agreement (as defined below).	 	Each (i) date of distribution to the Certificateholders or (ii) date of proposal by Party B, as applicable.	 	No
				
	Party B	 	Such information in connection with the Certificates or the Pooling and Servicing Agreement (as defined below) as Party A may reasonably request.	 	As soon as practicable after request.	 	No
				
	Party A & Party B	 	Legal opinions acceptable to the other party in the form and substance to be satisfactory to the other party.	 	Upon execution of this Agreement.	 	No

 PART 4 
 MISCELLANEOUS 
  

	(a)	Addresses For Notices. For the purpose of Section 12(a) of this Agreement: 

 (i) Notices or communications shall, with respect to a particular Transaction, be sent to the address, telex number or facsimile number reflected in the Confirmation of that Transaction. In addition (or in the event
the Confirmation for a Transaction does not provide relevant addresses/information for notice), with respect to notices provided pursuant to Section 5 and 6 of this Agreement, notice shall be provided to: 
 Address for notices or communications to Party A: 
  

			
	Address:	 	301 South College, DC-8
		 	Charlotte, NC 28202-0600
	Attention:	 	Bruce M. Young, Senior Vice President, Risk Management
	Phone No.:	 	(704) 383-8778
	Facsimile No.:	 	(704) 383-0575

 Address for notices or communications to Party B: 
  

			
	Address:	 	c/o NovaStar Mortgage Inc.
		 	8140 Ward Parkway, Suite 300
		 	Kansas City, Missouri 64114
	Attention:	 	Matt Kaltenrieder
	Facsimile No.:	 	816-237-7515

  

 11 

			
	With a copy to:	  	
		
	Address:	  	Deutsche Bank National Trust Company
		  	1761 East St. Andrew Place
		  	Santa Ana, California 92705
	Attention:	  	Trust Administration-NS0606
	Facsimile No.:	  	714-247-6478
		
	With a copy to:	  	
		
	Address:	  	Standard & Poor’s Ratings Services
		  	55 Water Street
		  	New York, New York 10041-0003
	Attention:	  	Residential Mortgage Surveillance Group
	Facsimile No.:	  	212-438-2652
		
	With a copy to:	  	
		
	Address:	  	Moody’s Investors Service
		  	99 Church Street
		  	New York, New York 10007
	Attention:	  	RMBS Monitoring Department
	Facsimile No.:	  	212 298 7139

  

	 	(ii)	Notices. Section 12(a) is amended by adding in the third line thereof after the phrase “messaging system” and before the “)” the words “;
provided, however, any such notice or other communication may be given by facsimile transmission (it being agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender’s
facsimile machine)”. 

  

	(b)	Process Agent. For purposes of Section 13(c) of this Agreement: 

 Party A appoints as its Process Agent: Not applicable 
 Party B appoints as its Process Agent: Not applicable

  

	(c)	Offices. The provisions of Section 10(a) will apply to this Agreement. 

  

	(d)	Multibranch Party. For purpose of Section 10(c) of this Agreement: 

 Party A is not a Multibranch Party. 
 Party B is not a Multibranch Party. 
  

	(e)	Calculation Agent. Party A. 

  

 12 

	(f)	Credit Support Documents. 

 In the case of Party A
and Party B means the credit support annex entered into between Party A and Party B in relation to this Master Agreement (the “Credit Support Annex”) and ,with respect to Party A only, any Eligible Guarantee. 
  

	(g)	Credit Support Provider.  

 In relation to Party A,
(1) Party A in its capacity as a party to the Credit Support Annex and (2) the guarantor under any Eligible Guarantee, and in relation to Party B, Party B in its capacity as a party to the Credit Support Annex. 
 In relation to Party B: Not applicable. 
  

	(h)	Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS WHOLLY PERFORMED WITHIN NEW YORK,
WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

  

	(i)	Single Agreement. Section 1(c) shall be amended by the addition of the words “, the credit support annex entered into between Party A and Party B in relation to
this Master Agreement” after the words “Master Agreement”. 

  

	(j)	Local Business Day. The definition of Local Business Day in Section 14 of this Agreement shall be amended by the addition of the words “or any Credit Support
Document” after “Section 2(a)(i)” and the addition of the words “or Credit Support Document” after “Confirmation”. 

  

	(k)	Netting of Payments. Sub-paragraph (ii) of Section 2(c) of this Agreement will apply to all Transactions hereunder, unless otherwise provided in the relevant
Confirmation(s). 

  

	(l)	“Affiliate” will have the meaning specified in Section 14 but will have no meaning as applied to Party B. 

 PART 5 
 OTHER PROVISIONS

 (a) ISDA Definitions Incorporated by Reference. The definitions and provisions of the 2000 ISDA Definitions (the “ISDA Definitions”)
(as published by the International Swaps and Derivatives Association, Inc. — “ISDA”) are incorporated by reference herein. Any terms used and not otherwise defined herein which are contained in the ISDA Definitions shall have the
meaning set forth therein. In the event of any conflict between the ISDA Definitions and any other ISDA-published definitions referenced in a Confirmation, such Confirmation and the ISDA-published definitions referred to therein shall control for
purposes of the particular Transaction. For the avoidance of doubt, any reference to a “Swap Transaction”, if any, in the Definitions is deemed to be a reference to a “Transaction” for the purpose of interpreting this Agreement
or any Confirmation, and any reference to a “Transaction” in this Agreement or any Confirmation is deemed to be a reference to a “Swap Transaction” for the purpose of interpreting the Definitions. 
 (b) Condition Precedent. The condition precedent specified in Section 2(a)(iii)(1) of this Agreement does not apply to a payment or delivery owing by a party
if the other party shall have satisfied 
  

 13 

 in full all of its payment and delivery obligations under Section 2(a)(i) of this Agreement and shall at the
relevant time have no future payment or delivery obligations, whether absolute or contingent, under Section 2(a)(i). 
 (c) Additional
Representations. Section 3 is hereby amended by adding at the end thereof the following subparagraph: 
 “(g) No Agency.
It is entering into this Agreement, the Credit Support Document and any other document relating to this Agreement and each Transaction hereunder as principal and not as agent or in any capacity, fiduciary or otherwise, and no other person has an
interest herein.” 
 (d) Tax. Notwithstanding the definition of “Indemnifiable Tax” in Section 14 of this Agreement, in relation
to payments by Party A, any Tax shall be an Indemnifiable Tax and in relation to Party B, no Tax shall be an Indemnifiable Tax. 
 (e) Swap Exemption.
Each party hereto represents to the other party on and as of the date hereof and on each date on which a Transaction is entered into between them hereunder, that it is an “eligible contract participant” as defined in the Commodity Exchange
Act, as amended. 
 (f) Relationship between Parties. In connection with the negotiation of, the entering into, of this Agreement, and any other
documentation relating to this Agreement to which it is a party or that it is required by this Agreement to deliver, each party hereby represents and warrants, and, in connection with the negotiation of, the entering into, and the confirming of the
execution of each Transaction, each party will be deemed to represent, to the other party as of the date hereof (or, in connection with any Transaction, as of the date which it enters into such Transaction) that (absent a written agreement between
the parties that expressly imposes affirmative obligations to the contrary for that Transaction): 
 (i) Non-Reliance Party A is acting
for its own account, and, with respect to Party B, Deutsche Bank National Trust is executing as Trustee for Party B. Each has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or
proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into that
Transaction; it being understood that information and explanations related to the terms and conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction. No communication (written or oral)
received from the other party shall be deemed to be an assurance or guarantee as to the expected results of that Transaction. 
 (ii)
Assessment and Understanding It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It is
also capable of assuming, and assumes, the risks of that Transaction. It has determined to its satisfaction whether or not the rates, prices or amounts and other economic terms of each Transaction and the indicative quotations (if any) provided by
the other party reflect those in the relevant market for similar transactions, and all trading decisions have been the result of arm’s length negotiations between the parties. 
 (iii) Status of Parties The other party is not acting as a fiduciary for or an adviser to it in respect of that Transaction. 
  

 14 

 (iv) Related Transactions. It is aware that each other party to this Agreement and its Affiliates
may from time to time (A) take positions in instruments that are identical or economically related to a Transaction or (B) have an investment banking or other commercial relationship with the issuer of an instrument underlying a
Transaction. 
 (v) Confirmation Procedures. Upon receipt thereof, Party B shall examine the terms of each Confirmation sent by Party
A, and unless Party B objects to the terms within three New York business days after receipt of that Confirmation, those terms shall be deemed accepted and correct absent manifest error, in which case that Confirmation will be sufficient to form a
binding supplement to this Agreement notwithstanding Section 9(e)(ii) of this Agreement. 
 (g) Waiver of Jury Trial. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION. 
 (h) Consent
to Telephonic Recording. Each party hereto consents to the monitoring or recording, at any time and from time to time, by the other party of the telephone conversations of trading and marketing personnel of the parties and their authorized
representatives in connection with this Agreement or any Transaction or potential Transaction; and each party, waives any further notice of such monitoring or recording and agree to give proper notice and obtain any necessary consent of such
personnel or any such monitoring or recording. 
 (i) Pooling and Servicing Agreement. Capitalized terms used in this Agreement that are not defined
herein and are defined in the Pooling and Servicing Agreement shall have the respective meanings assigned to them in the Pooling and Servicing Agreement. 
 (j) Amendment of the Pooling and Servicing Agreement. 
 (1) Party B will not amend, supplement or otherwise modify the
Pooling and Servicing Agreement except in compliance with the provisions of Section 12.01 of the Pooling and Servicing Agreement. 
 (2)
As provided in Section 12.01 of the Pooling and Servicing Agreement, Party A will be provided with any proposed amendment to the Pooling and Servicing Agreement that requires the consent of Party A, and with a copy of any executed amendment to
the Pooling and Servicing Agreement. 
 (k) Consent to Assignment. Notwithstanding Section 7 of this Agreement, Party A hereby acknowledges that
Deutsche Bank National Trust Company is acting as Trustee pursuant to the Pooling and Servicing Agreement and consents to the transfer to the Trustee of a security interest in all rights of Party B under this Agreement. Deutsche Bank National Trust
Company, acting as Trustee on behalf of the holders of the Certificates, shall have the right to enforce this Agreement, including the terms of Part 1(i), against Party A. Party A acknowledges that the Trustee shall be entitled to give notices and
to perform and satisfy the obligations of Party B hereunder on behalf of Party B. Party A shall be entitled to rely on any notice or communication from the Trustee to that effect; provided, further, that any such notice or communication shall be in
writing and delivered to Party A in accordance with Section 12 hereof. Party A shall be entitled to assume the authenticity of any such notice or communication, including, without limitation, any written wiring account information of Party B or
the Trust, and shall have no obligation to verify the accuracy of any facts asserted therein or the authority of the sender thereof. Party B hereby indemnifies Party A against any losses, costs, claims or liabilities arising from Party A’s
reliance on any such notice or communication (subject to the availability of funds therefor in accordance with Article IV (Flow of Funds) of the Pooling and Servicing Agreement), and Party A shall be released from any further 

 15 

 obligations to Party B to the extent that it has rendered performance of such obligations to the Trustee for the benefit
of the holders of the Certificates. The parties acknowledge that the indemnity contained in this Part 5(j) shall be subject to Section 4.04 of the Pooling and Servicing Agreement and is only due to the extent funds are available for the payment
thereof in accordance with the Pooling and Servicing Agreement. 
 (l) Regarding Party A. Party B acknowledges and agrees that Party A has had and
will have no involvement in and, accordingly, Party A accepts no responsibility for: (i) the establishment, structure, or choice of assets of Party B or the Trust; (ii) the selection of any person performing services for or acting on
behalf of Party B or the Trust; (iii) the selection of Party A as a Hedge Counterparty; (iv) the terms of the Certificates; (v) the preparation of or passing on the disclosure and other information contained in then free writing
prospectus dated November 17, 2006 or the prospectus supplement dated November 20, 2006 (other than certain information provided by Party A expressly for inclusion therein in the form attached hereto as Exhibit I), the Pooling and
Servicing Agreement or any other agreements or documents used by Party B, the Trust or any other party in connection with the marketing and sale of the Certificates; (vi) the ongoing operations and administration of Party B or the Trust,
including the furnishing of any information to Party B or the Trust which is not specifically required under this Agreement; or (vii) any other aspect of Party B’s or the Trust ‘s existence. 
 (m) No Petition for Bankruptcy. Party A, by entering into this Agreement, hereby covenants and agrees that in connection with any obligations of Party B under
this Agreement, Party A will not institute against Party B or the Trust (as defined in the Pooling and Servicing Agreement), any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or
state bankruptcy or similar law, for one year and a day after the latest maturing security issued by the Trust is paid; provided however, that nothing herein shall preclude or estop Party A (i) from taking any action prior to the
expiration of the applicable preference period in (x) any case or proceeding voluntarily filed or commenced by Party B or the Trust or (y) any involuntary insolvency proceeding filed or commenced against Party B or the Trust by a person
other than Party A or (ii) from commencing against Party B or the Trust or any properties of Party B or the Trust any legal action which is not a bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceeding. This
provision shall survive termination of this Agreement for any reason whatsoever. 
 (n) Representations of Party B. As an inducement to Party A for
entering into this Agreement and each Transaction hereunder, Party B represents that for the purposes of the Pooling and Servicing Agreement: 
 (i) Party A is a “Hedge Counterparty”, 
 (ii) each Transaction entered into between Party A and Party B hereunder is a
“Hedge Agreement” and 
 (iii) any net payments (a difference between a Fixed and a Floating Amount) due to Party A under each Cap
Agreement is a “Cap Amount”. 
 (o) Not Acting in Individual Capacity. Deutsche Bank National Trust Company is signing this Agreement solely
in its capacity as Trustee to Party B and in the exercise of the powers and authority conferred and vested in it under the Pooling and Servicing Agreement and not in its individual capacity. It is expressly understood and agreed by the parties
hereto that (i) each of the representations, undertakings and agreements herein stated to be those of Party B is made and intended for the purpose of binding only Party B, (ii) nothing herein contained shall be construed as creating any
liability for Deutsche Bank National Trust Company, individually or personally, to perform any covenant (either 
  

 16 

 express or implied) contained herein stated to be those of Party B, and all such liability, if any, is hereby expressly
waived by the parties hereto, and such waiver shall bind any third party making a claim by or through one of the parties hereto, and (iii) under no circumstances shall Deutsche Bank National Trust Company be liable for the breach or failure of
any obligation, representation, warranty or covenant made or undertaken by Party B under this Agreement. All persons having any claim against the Trustee by reason of the Transactions contemplated by this Agreement shall look only to the assets of
NovaStar Mortgage Supplemental Interest Trust, Series 2006-6 (subject to the availability of funds therefor in accordance with Article IV (Flow of Funds) of the Pooling and Servicing Agreement) for payment or satisfaction thereof. 
 (p) Amendment of Provisions and Transfer of Rights and Obligations. Without limiting the provisions of Section 7(a) of this Agreement, no amendment or
transfer of the rights or obligations under this Agreement will be effective without the prior written confirmation of each Rating Agency (other than Moody’s) that such amendment or transfer will not result in the reduction or withdrawal of the
then current ratings for any outstanding Certificates. 
 (q) Acknowledgement of Pledge of Collateral. Party A acknowledges Party B’s pledge of
its assets under the Pooling and Servicing Agreement and understands that the proceeds of such assets will be applied, including to payments hereunder, only in the order set forth in the Pooling and Servicing Agreement. 
 (r) Set-Off. Notwithstanding any provision of this Agreement or any other existing or future agreement, Party A hereby irrevocably waives any and all rights it
may have to set-off, net, recoup or otherwise withhold or suspend or condition payment or performance of any obligation between it and Party B against any obligation between it and Party B under any other agreements; provided that nothing herein
shall be construed as limiting the provisions contained in Section 2(c), 9(c) or any other Section of this Agreement or Paragraphs 8(a) and 8(b) of the Credit Support Annex with respect to the netting of the parties’ respective obligations
under this Agreement or the right of Party B to exercise any set-off right, by operation of law or otherwise. Except as stated above, the provisions for Set-off set forth in Section 6(e) of the Agreement shall not apply. 
 (s) Transfers 
  

	 	(i)	Section 7 of this Agreement shall not apply to Party A and, subject to Section 6(b)(ii) and Part 5(s)(ii) below, Party A may not transfer (whether by way of security or
otherwise) any interest or obligation in or under this Agreement without the prior written consent of Party B. 

  

	 	(ii)	Subject to Part 5(t) below, Party A may (at its own cost) transfer all or substantially all of its rights and obligations with respect to this Agreement to any other entity (a
“Transferee”) that is an Eligible Replacement, provided that Party B shall have determined which shall be evidenced by satisfaction of the Rating Agency Condition, whether or not a transfer relates to all or substantially all of
Party A’s rights and obligations under this Agreement. Following such transfer, all references to Party A shall be deemed to be references to the Transferee. 

  

	 	(iii)	If an entity has made a Firm Offer (which remains capable of becoming legally binding upon acceptance (which shall be evidenced by Party B’s receipt of confirmation that the
Rating Agency Condition has been satisfied)) to be the transferee of a transfer to be made in accordance with (ii) above, Party B shall (at Party A’s cost) at Party A’s written request, execute such documentation provided to it as is
reasonably deemed necessary by Party A to effect such transfer. 

  

 17 

 (t) Rating Agency Notification. Notwithstanding any other provision of this Agreement, this Agreement shall not be
amended, no Early Termination Date shall be effectively designated by Party B, and no transfer of any rights or obligations under this Agreement shall be made (other than a transfer of all of Party A’s rights and obligations with respect to
this Agreement in accordance with Part 5(s)(ii) above) unless Moody’s has been given prior written notice of such amendment, designation or transfer. 
  

 18 

 IN WITNESS WHEREOF, Party A and Party B have caused this Schedule to be duly executed as of the date first written above.

  

									
	 WACHOVIA BANK, NATIONAL
 ASSOCIATION
	 		 	 NOVASTAR MORTGAGE SUPPLEMENTAL
 INTEREST
TRUST, SERIES 2006-6

				
		 		 		 	 By: Deutsche Bank National Trust Company, as
 Trustee under the Pooling and Servicing
 Agreement, acting not in its individual capacity,
 but solely in its capacity as Trustee to NovaStar
 Mortgage Supplemental
Interest Trust, Series 2006-6

					
	By	 	 /s/ Kim V. Farr
	 		 	By	 	 /s/ Melissa Wilman

	Name:	 	Kim V. Farr	 		 	Name:	 	Melissa Wilman
	Title:	 	Director	 		 	Title:	 	Vice President

  

 19 

 Exhibit I 
 (Party A disclosure for prospectus supplement) 
 Wachovia Bank, National Association 
 Wachovia Bank, National Association (“Wachovia”) is a national banking association that has, as of the date of this [free writing
prospectus][prospectus supplement], long-term debt ratings from S&P, Fitch Ratings and Moody’s of “AA-”, “AA-” and “Aa2”, respectively, and short-term debt ratings from S&P, Fitch Ratings and Moody’s
of “A-1+”, “Fl+” and “P-1”, respectively. The ratings reflect the respective rating agency’s current assessment of the creditworthiness of Wachovia and may be subject to revision or withdrawal at any time by the
rating agencies. Wachovia will provide upon request, without charge, to each person to whom this [free writing prospectus][prospectus supplement] is delivered, a copy of the most recent audited annual financial statements of the Wachovia
Corporation, the parent company of Wachovia. Requests for such information should be directed to Wachovia Corporation – Investor Relations, (704) 374-6782 or in writing at Wachovia Corporation, Investor Relations, 301 South College Street,
Charlotte, NC 28288-0206. 

 ISDA® 
 International Swap Dealers Association, Inc. 
 CREDIT SUPPORT ANNEX 
 to the Schedule
to the 
 ISDA MASTER AGREEMENT 
 dated as of November 30, 2006 
 between 
  

			
	 WACHOVIA BANK,
 NATIONAL ASSOCIATION
	 	 NOVASTAR MORTGAGE
 SUPPLEMENTAL INTEREST
 TRUST, SERIES 2006-6

		
	(“Party A”)	 	(“Party B”)

 This Annex supplements, forms part of, and is subject to, the above-referenced Agreement, is part of its Schedule
and is a Credit Support Document under this Agreement with respect to each party. 
 Accordingly, the parties agree as follows: 
 Paragraph 1 Interpretation 
  

	(a)	Definitions and Inconsistency. Capitalized terms not otherwise defined herein or elsewhere in this Agreement have the meanings specified pursuant to Paragraph 12, and
all references in this Annex to Paragraphs are to Paragraphs of this Annex. In the event of any inconsistency between this Annex and the other provisions of this Schedule, this Annex will prevail, and in the event of any inconsistency between
Paragraph 13 and the other provisions of this Annex, Paragraph 13 will prevail. 

  

	(b)	Secured Party and Pledgor. All references in this Annex to the “Secured Party” will be to either party when acting in that capacity and all
corresponding references to the Pledgor will be to the other party when acting in that capacity; provided, however, that if Other Posted Support is held by a party to this Annex, all references herein to that party as the Secured Party with
respect to that Other Posted Support will be to that party as the beneficiary thereof and will not subject that support or that party as the beneficiary thereof to provisions of law generally relating to security interests and secured parties.

 Paragraph 2 Security Interest 
 Each
party, as the Pledgor, hereby pledges to the other party, as the Secured Party, as security for its Obligations and grants to the Secured Party a first priority continuing security interest in, lien on and right of Set-off against all Posted
Collateral Transferred to or received by the Secured Party hereunder. Upon the Transfer by the Secured Party to the Pledgor or Posted Collateral, the security interest and lien granted hereunder on that Posted Collateral will be released immediately
and, to the extent possible, without any further action by either party. 

 Paragraph 3 Credit Support Obligations 
  

	(a)	Delivery Amount. Subject to Paragraphs 4 and 5, upon demand made by the Secured Party on or promptly following a Valuation Date, if the Delivery Amount for that
Valuation Date equals or exceeds the Pledgor’s Minimum Transfer Amount, then the Pledgor will Transfer to the Secured Party Eligible Credit Support having a Value as of the date of Transfer at least equal to the applicable Delivery Amount
(rounded pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the “Delivery Amount” applicable to the Pledgor for any Valuation Date will equal the amount by which: 

  

	 	(i)	the Credit Support Amount 

 exceeds 
  

	 	(ii)	the Value as of that Valuation Date of all Posted Credit Support held by the Secured Party. 

  

	(b)	Return Amount. Subject to Paragraphs 4 and 5, upon a demand made by the Pledgor on or promptly following a Valuation Date, if the Return Amount for that Valuation Date
equals or exceeds Secured Party’s Minimum Transfer Amount, then the Secured Party will Transfer to the Pledgor Posted Credit Support specified by the Pledgor in that demand having a Value as of the date of Transfer as close as practicable to
the applicable Return Amount (rounded pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the “Return Amount” applicable to the Secured Party for any Valuation Date will equal the amount by which:

  

	 	(i)	the Value as of that Valuation Date of all Posted Credit Support held by the Secured Party 

 exceeds 
  

	 	(ii)	the Credit Support Amount. 

 “Credit Support
Amount” means, unless otherwise specified in Paragraph 13, for any Valuation Date (i) the Secured Party’s Exposure for that Valuation Date plus (ii) the aggregate of all Independent Amounts applicable to the
Pledgor, if any, minus (iii) all Independent Amounts applicable to the Secured Party, if any, minus (iv) the Pledgor’s Threshold; provided, however, that the Credit Support Amount will be deemed to be zero whenever the
calculation of Credit Support Amount yields a number less than zero. 
 Paragraph 4 Conditions Precedent, Transfer Timing, Calculations and Substitutions

  

	(a)	Conditions Precedent. Each Transfer obligation of the Pledgor under Paragraphs 3 and 5 and of the Secured Party under Paragraphs 3, 4(d)(ii), 5 and 6(d) is subject to
the conditions precedent that: 

  

	 	(i)	no Event of Default, Potential Event of Default or Specified Condition has occurred and is continuing with respect to the other party; and 

  

	 	(ii)	no Early Termination Date for which any unsatisfied payment obligations exist has occurred or been designated as the result of an Event of Default or Specified Condition with
respect to the other party. 

  

	(b)	Transfer Timing. Subject to Paragraphs 4(a) and 5 and unless otherwise specified, if a demand for the Transfer of Eligible Credit Support or Posted Credit Support is
made by the Notification Time, then the relevant Transfer will be made not later than the close of business on the next Local Business Day; if a demand is made after the Notification Time, then the relevant Transfer will be made not later than the
close of business on the second Local Business Day thereafter. 

	(c)	Calculations. All calculations of Value and Exposure for purposes of Paragraphs 3 and 6(d) will be made by the Valuation Agent as of the Valuation Time. The Valuation
Agent will notify each party (or the other party, if the Valuation Agent is a party) of its calculations not later than the Notification Time on the Local Business Day following the applicable Valuation Date (or in the case of Paragraph 6(d),
following the date of calculation). 

  

	(d)	Substitutions. 

  

	 	(i)	Unless otherwise specified in Paragraph 13, upon notice to the Second Party specifying the items of Posted Credit Support to be exchanged, the Pledgor may, on any Local Business
Day, Transfer to the Secured Party substitute Eligible Credit Support (the “Substitute Credit Support”); and 

  

	 	(ii)	subject to Paragraph 4(a), the Secured Party will Transfer to the Pledgor the items of Posted Credit Support specified by the Pledgor in its notice not later than the Local Business
Day following the date on which the Secured Party receives the Substitute Credit Support, unless otherwise specified in Paragraph 13 (the “Substitution Date”); provided that the Secured Party will only be obligated to Transfer
Posted Credit Support with a Value as of the date of Transfer of that Posted Credit Support equal to the Value as of that date of the Substitute Credit Support. 

 Paragraph 5 Dispute Resolution 
 If a party (a “Disputing Party”) disputes (I) the Valuation
Agent’s calculation of a Delivery Amount or a Return Amount or (II) the Value of any Transfer of Eligible Credit Support or Posted Credit Support, then (1) the Disputing Party will notify the other party and the Valuation Agent (if the
Valuation Agent is not the other party) not later than the close of business on the Local Business Day following (X) the date that the demand is made under Paragraph 3 in case of (I) above or (Y) the date that the demand is made under
Paragraph 3 in the case of (I) above or (Y) the date of Transfer in the case of (II) above, (2) subject to Paragraph 4(a), the appropriate party will Transfer the undisputed amount to the other party not later than the close of
business on the Local Business Day following (X) the date that the demand is made under Paragraph 3 in the case of (I) above or (Y) the date of Transfer in the case of (II) above, (3) the parties will consult with each other in
an attempt to resolve the dispute and (4) if they fail to resolve the dispute by the Resolution Time, then: 
  

	 	(i)	In the case of a dispute involving a Delivery Amount or Return Amount, unless otherwise specified in Paragraph 13, the Valuation Agent will recalculate the Exposure and the Value as
of the Recalculation Date by: 

  

	 	(A)	utilizing any calculations of Exposure for the Transactions (or Swap Transactions) that the parties have agreed are not in dispute; 

  

	 	(B)	calculating the Exposure for the Transactions (or Swap Transactions) in dispute by seeking four actual quotations at mid-market from Reference Market-makers for purposes of
calculating Market Quotation, and taking the arithmetic average of those obtained; provided that if four quotations are not available for a 

 particular Transaction (or Swap Transaction), then fewer than four quotations may be used for that
Transaction (or Swap Transaction); and if no quotations are available for a particular Transaction (or Swap Transaction), then the Valuation Agent’s original calculations will be used for that Transaction (or Swap Transaction); 
  

	 	(C)	utilizing the procedures specified in Paragraph 13 for calculating the Value, if disputed, of Posted Credit Support. 

  

	 	(ii)	In the case of a dispute involving the Value of any Transfer of Eligible Credit Support or Posted Credit Support the Valuation Agent will recalculate the Value as of the date of
Transfer pursuant to Paragraph 13. 

 Following a recalculation pursuant to this Paragraph, the Valuation Agent will notify each party (or the
other party, if the Valuation Agent is a party) not later than the Notification Time on the Local Business Day following the Resolution Time. The appropriate party will, upon demand following that notice by the Valuation Agent or a resolution
pursuant to (3) above and subject to Paragraphs 4(a) and 4(b), make the appropriate Transfer. 
 Paragraph 6 Holding and Using Posted Collateral

  

	(a)	Care of Posted Collateral. Without limiting the Secured Party’s rights under Paragraph 6(c), the Secured Party will exercise reasonable care to assure the safe
custody of all Posted Collateral to the extent required by applicable law, and in any event the Secured Party will be deemed to have exercised reasonable care if it exercises at least the same degree of care as it would exercise with respect to its
own property. Except as specified in the preceding sentence, the Secured Party will have no duty with respect to Posted Collateral, including, without limitation, any duty to collect any Distributions, or enforce or preserve any rights pertaining
thereto. 

  

	(b)	Eligibility to Hold Posted Collateral; Custodians. 

  

	 	(i)	General. Subject to the satisfaction of any conditions specified in Paragraph 13 for holding Posted Collateral, the Secured Party will be entitled to hold Posted
Collateral or to appoint an agent (a “Custodian”) to hold Posted Collateral for the Secured Party. Upon notice by the Secured Party to the Pledgor of the appointment of a Custodian, the Pledgor’s obligations to make any Transfer will
be discharged by making the Transfer to that Custodian. The holding of Posted Collateral by a Custodian will be deemed to be the holding of that Posted Collateral by the Secured Party for which the Custodian is acting. 

  

	 	(ii)	Failure to Satisfy Conditions. If the Secured Party or its Custodian fails to satisfy conditions for holding Posted Collateral, then upon a demand made by the Pledgor,
the Secured Party will, not later than five Local Business Days after the demand, Transfer or cause its Custodian to Transfer all Posted Collateral held by it to a Custodian that satisfies those conditions or to the Secured Party if it satisfies
those conditions. 

  

	 	(iii)	Liability. The Secured Party will be liable for the acts or omissions of its Custodian to the same extent that the Secured Party would be liable hereunder for its own
acts or omissions. 

  

	(c)	Use of Posted Collateral. Unless otherwise specified in Paragraph 13 and without limiting the rights and obligations of the parties under Paragraphs 3, 4(d)(ii), 5,
6(d) and 8, if the Secured Party 

  

 is not a Defaulting Party or an Affected Party with respect to a Specified Condition and no Early
Termination Date has occurred or been designated as the result of an Event of Default or Specified Condition with respect to the Secured Party, then the Secured Party will, notwithstanding Section 9-207 of the New York Uniform Commercial Code,
have the right to: 
  

	 	(i)	sell, pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose of, or otherwise use in its business any Posted Collateral it holds, free from any claim or right of
any nature whatsoever of the Pledgor, including any equity or right of redemption by the Pledgor; and 

  

	 	(ii)	register any Posted Collateral in the name of the Secured Party, its Custodian or a nominee for either. 

 For purposes of the obligation to Transfer Eligible Credit Support or Posted Credit Support pursuant to Paragraphs 3 and 5 and any rights or remedies authorized under this Agreement, the Secured Party will be deemed
to continue to hold all Posted Collateral and to receive Distributions made thereon, regardless of whether the Secured Party has exercised any rights with respect to any Posted Collateral pursuant to (i) or (ii) above. 
  

	(d)	Distributions and Interest Amount. 

  

	 	(i)	Distributions. Subject to Paragraph 4(a), if the Secured Party receives or is deemed to receive Distributions on a Local Business Day, it will Transfer to the
Pledgor not later than the following Business Day any Distributions it receives or is deemed to receive to the extent that a Delivery Amount would not be created or increased by that Transfer, as calculated by the Valuation Agent (and the date of
calculation will be deemed to be a Valuation Date for this purpose). 

  

	 	(ii)	Interest Amount. Unless otherwise specified in Paragraph 13 and subject to Paragraph 4(a), in lieu of any interest, dividends or other amounts paid or deemed to
have been paid with respect to Posted Collateral in the form of Cash (all of which may be retained by the Secured Party), the Secured Party will Transfer to the Pledgor at the times specified in Paragraph 13 the Interest Amount to the extent that a
Delivery Amount would not be created or increased by that Transfer, as calculated by the Valuation Agent (and the date of calculation will be deemed to be a Valuation Date for this purpose). The Interest Amount or portion thereof not Transferred
pursuant to this Paragraph will constitute Posted Collateral in the form of Cash and will be subject to the security interest granted under Paragraph 2. 

 Paragraph 7 Events of Default 
 For purposes of Section 5(a)(iii)(1) of this Agreement, an Event of Default will
exist with respect to a party if: 
  

	 	(i)	that party fails (or fails to cause its Custodian) to make, when due, any Transfer of Eligible Collateral, Posted Collateral or the Interest Amount, as applicable, required to be
made by it and that failure continues for two Local Business Days after notice of that failure is given to that party; 

	 	(ii)	that party fails to comply with any restriction or prohibition specified in this Annex with respect to any of the rights specified in Paragraph 6(c) and that failure continues for
five Local Business Days after notice of that failure is given to that party; or 

  

	 	(iii)	that party fails to comply with or perform any agreement or obligation other than those specified in Paragraphs 7(i) and 7(ii) and that failure continues for 30 days after notice of
that failure is given to that party. 

 Paragraph 8 Certain Rights and Remedies 
  

	(a)	Secured Party’s Rights and Remedies. If at any time (1) an Event of Default or Specified Condition with respect to the Pledgor has occurred and is continuing
or (2) an Early Termination Date has occurred or been designated as the result of an Event of Default or Specified Condition with respect to the Pledgor, then, unless the Pledgor has paid in full all of its Obligations that are then due, the
Secured Party may exercise one or more of the following rights and remedies: 

  

	 	(i)	all rights and remedies available to a secured party under applicable law with respect to Posted Collateral held by the Secured Party; 

  

	 	(ii)	any other rights and remedies available to the Secured Party under the terms of Other Posted Support, if any; 

  

	 	(iii)	the right to Set-off any amounts payable by the Pledgor with respect to any Obligations against any Posted Collateral or the Cash equivalent of any Posted Collateral held by the
Secured Party (or any obligation of the Secured Party to Transfer that Posted Collateral); and 

  

	 	(iv)	the right to liquidate any Posted Collateral held by the Secured Party through one or more public or private sales or other dispositions with such notice, if any, as may be required
under applicable law, free from any claim or right of any nature whatsoever of the Pledgor, including any equity or right of redemption by the Pledgor (with the Secured Party having the right to purchase any or all of the Posted Collateral to be
sold) and to apply the proceeds (or the Cash equivalent thereof) from the liquidation of the Posted Collateral to any amounts payable by the Pledgor with respect to any Obligations in that order as the Secured Party may elect.

 Each party acknowledges and agrees that Posted Collateral in the form of securities may decline speedily in value and is of a type
customarily sold on a recognized market, and, accordingly, the Pledgor is not entitled to prior notice of any sale of that Posted Collateral by the Secured Party, except any notice that is required under applicable law and cannot be waived.

  

	(b)	Pledgor’s Rights and Remedies. If at any time an Early Termination Date has occurred or been designated as the result of an Event of Default or Specified
Condition with respect to the Secured Party, then (except in the case of an Early Termination Date relating to less than all Transactions (or Swap Transactions) where the Secured Party has paid in full all of its obligations that are then due under
Section 6(e) of this Agreement): 

  

	 	(i)	the Pledgor may exercise all rights and remedies available to a Pledgor under applicable law with respect to Posted Collateral held by the Secured Party; 

	 	(ii)	the Pledgor may exercise any other rights and remedies available to the Pledgor under the terms of Other Posted Support, if any; 

  

	 	(iii)	the Secured Party will be obligated immediately to Transfer all Posted Collateral and the Interest Amount to the Pledgor; and 

  

	 	(iv)	to the extent that Posted Collateral or the Interest Amount is not so Transferred pursuant to (iii) above, the Pledgor may: 

  

	 	(A)	Set-off any amounts payable by the Pledgor with respect to any Obligations against any Posted Collateral or the Cash equivalent of any Posted Collateral held by the Secured Party
(or any obligation of the Secured Party to Transfer that Posted Collateral); and 

  

	 	(B)	to the extent that the Pledgor does not Set-off under (iv)(A) above, withhold payment of any remaining amounts payable by the Pledgor with respect to any Obligations, up to the
Value of any remaining Posted Collateral held by the Secured Party, until that Posted Collateral is Transferred to the Pledgor. 

  

	(c)	Deficiencies and Excess Proceeds. The Secured Party will Transfer to the Pledgor any proceeds and Posted Credit Support remaining after liquidation, Set-off and/or
application under Paragraphs 8(a) and 8(b) after satisfaction in full of all amounts payable by the Pledgor with respect to any Obligations; the Pledgor in all events will remain liable for any amounts remaining unpaid after any liquidation, Set-off
and/or application under Paragraphs 8(a) and 8(b). 

  

	(d)	Final Returns. When no amounts are or thereafter may become payable by the Pledgor with respect to any Obligations (except for any potential liability under
Section 2(d) of this Agreement), the Secured Party will Transfer to the Pledgor all Posted Credit Support and the Interest Amount, if any. 

 Paragraph 9 Representations 
 Each party represents to the other party (which representation will be deemed to be repeated as of each date on
which it, as the Pledgor, Transfers Eligible Collateral) that: 
  

	 	(i)	it has the power to grant a security interest in and lien on any Eligible Collateral it Transfers as the Pledgor and has taken all necessary actions to authorize the granting of
that security interest and lien; 

  

	 	(ii)	it is the sole owner of or otherwise has the right to Transfer all Eligible Collateral it Transfers to the Secured Party hereunder, free and clear of any security interest, lien,
encumbrance or other restrictions other than the security interest and lien granted under Paragraph 2; 

  

	 	(iii)	upon the Transfer of any Eligible Collateral to the Secured Party under the terms of this Annex, the Secured Party will have a valid and perfected first priority security interest
therein (assuming that any central clearing corporation or any third-party financial intermediary or other entity not within the control of the Pledgor involved in the Transfer of that Eligible Collateral gives the notices and takes the action
required of it under applicable law for perfection of that interest); and 

	 	(iv)	the performance by it of its obligations under this Annex will not result in the creation of any security interest, lien or other encumbrance on any Posted Collateral other than the
security interest and lien granted under Paragraph 2. 

 Paragraph 10 Expenses 
  

	(a)	General. Except as otherwise provided in Paragraphs 10(b) and 10(c), each party will pay its own costs and expenses in connection with performing its obligations under
this Annex and neither party will be liable for any costs and expenses incurred by the other party in connection herewith. 

  

	(b)	Posted Credit Support. The Pledgor will promptly pay when due all taxes, assessments or charges of any nature that are imposed with respect to Posted Credit support
held by the Secured Party upon becoming aware of the same, regardless of whether any portion of that Posted Credit Support is subsequently disposed of under Paragraph 6(c), except for those taxes, assessments and charges that result from the
exercise of the Secured Party’s rights under Paragraph 6(c). 

  

	(c)	Liquidation/Application of Posted Credit Support. All reasonable costs and expenses incurred by or on behalf of the Secured Party or the Pledgor in connection with the
liquidation and/or application of any Posted Credit Support under Paragraph 8 will be payable, on demand and pursuant to the Expenses Section of this Agreement, by the Defaulting Party or, if there is no Defaulting Party, equally by the parties.

 Paragraph 11 Miscellaneous 
  

	(a)	Default Interest. A Secured Party that fails to make, when due, any Transfer of Posted Collateral or the Interest Amount will be obliged to pay the Pledgor (to the
extent permitted under applicable law) an amount equal to interest at the Default Rate multiplied by the Value of the items of property that were required to be Transferred, from (and including) the date that the Posted Collateral or Interest Amount
was required to be Transferred to (but excluding) the date of Transfer of that Posted Collateral or Interest Amount. This interest will be calculated on the basis of daily compounding and the actual number of days elapsed. 

 

	(b)	Further Assurances. Promptly following a demand made by a party, the other party will execute, deliver, file and record any financing statement, specific assignment or
other document and take any other action that may be necessary or desirable and reasonably requested by that party to create, preserve, perfect or validate any security interest or lien granted under Paragraph 2, to enable that party to exercise or
enforce its rights under this Annex with respect to Posted Credit Support or an Interest Amount or to effect or document a release of a security interest on Posted Collateral or an Interest Amount. 

  

	(c)	Further Protection. The Pledgor will promptly give notice to the Secured Party of, and defend against, any suit, action, proceeding or lien that involves Posted Credit
Support Transferred by the Pledgor or that could adversely affect the security interest and lien granted by it under Paragraph 2, unless that suit, action, proceeding or lien results from the exercise of the Secured Party’s rights under
Paragraph 6(c). 

  

	(d)	Good Faith and Commercially Reasonable Manner. Performance of all obligations under this Annex, including, but not limited to, all calculations, valuations and
determinations made by either party, will be made in good faith and in a commercially reasonable manner. 

	(e)	Demands and Notices. All demands and notices given by a party under this Annex will be made as specified in the Notices Section of this Agreement, except as otherwise
provided in Paragraph 13. 

  

	(f)	Specifications of Certain Matters. Anything referred to in this Annex as being specified in Paragraph 13 also may be specified in one or more Confirmations or other
documents and this Annex will be construed accordingly. 

 Paragraph 12 Definitions 
 As used in this Annex:— 
 “Cash”
means the lawful currency of the United States of America. 
 “Credit Support Amount” has the meaning specified in
Paragraph 3. 
 “Custodian” has the meaning specified in Paragraphs 6(b)(i) and 13. 
 “Delivery Amount” has the meaning specified in Paragraph 3(a). 
 “Disputing Party” has the meaning specified in Paragraph 5. 
 “Distributions” means, with respect to Posted Collateral other than Cash, all principal, interest and other payments and distributions of cash or other property with respect thereto, regardless of
whether the Secured Party has disposed of that Posted Collateral under Paragraph 6(c). Distributions will not include any item of property acquired by the Secured Party upon any disposition or liquidation of Posted Collateral or, with respect to any
Posted Collateral in the form of Cash, any distributions on that collateral, unless otherwise specified herein. 
 “Eligible
Collateral” means, with respect to a party, the items, if any, specified as such for that party in Paragraph 13. 
 “Eligible Credit Support” means Eligible Collateral and Other Eligible Support. 
 “Exposure” means for any Valuation Date or other date for which Exposure is calculated and subject to Paragraph 5 in the case of a dispute, the amount, if any, that would be payable to a party that is
the Secured Party by the other party (expressed as a positive number) or by a party that is the Secured Party to the other party (expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of this Agreement as if all Transactions (or
Swap Transactions) were being terminated as of the relevant Valuation Time; provided that Market Quotation will be determined by the Valuation Agent using its estimates at mid-market of the amounts that would be paid for Replacement
Transactions (as that term is defined in the definition of “Market Quotation”). 
 “Independent Amount”
means, with respect to party, the amount specified as such for that party in Paragraph 13; if no amount is specified, zero. 
 “Interest
Amount” means, with respect to an Interest Period, the aggregate sum of the amounts of interest calculated for each day in that Interest Period on the principal amount of Posted Collateral in the form of Cash held by the Secured
Party on that day, determined by the Secured Party for each such day as follows: 
  

	 	(x)	the amount of Cash on that day; multiplied by 

	 	(y)	the Interest Rate in effect for that day; divided by 

  

	 	(z)	360. 

 “Interest Period” means the
period from (and including) the last Local Business Day on which an Interest Amount was Transferred (or, if no Interest Amount has yet been Transferred, the Local Business Day on which Posted Collateral in the form of Cash was Transferred to or
received by the Secured Party) to (but excluding) the Local Business Day on which the current Interest Amount is to be Transferred. 
 “Interest Rate” means the rate specified in Paragraph 13. 
 “Local Business
Day,” unless otherwise specified in Paragraph 13, has the meaning specified in the Definitions Section of this Agreement, except that references to a payment in clause (b) thereof will be deemed to include a Transfer under
this Annex. 
 “Minimum Transfer Amount” means, with respect to a party, the amount specified as such for that party in
Paragraph 13; if no amount is specified, zero. 
 “Notification Time” has the meaning specified in Paragraph 13.

 “Obligations” means, with respect to a party, all present and future obligations of that party under this Agreement
and any additional obligations specified for that party in Paragraph 13. 
 “Other Eligible Support” means, with
respect to a party, the items, if any, specified as such for that party in Paragraph 13. 
 “Other Posted Support”
means all Other Eligible Support Transferred to the Secured Party that remains in effect for the benefit of that Secured Party. 
 “Pledgor” means either party, when that party (i) receives a demand for or is required to Transfer Eligible Credit Support under Paragraph 3(a) or (ii) has Transferred Eligible Credit Support
under Paragraph 3(a). 
 “Posted Collateral” means all Eligible Collateral, other property, Distributions, and all
proceeds thereof that have been Transferred to or received by the Secured Party under this Annex and not Transferred to the Pledgor pursuant to Paragraph 3(b), 4(d)(ii) or 6(d)(i) or released by the Secured Party under Paragraph 8. Any Interest
Amount or portion thereof not Transferred pursuant to Paragraph 6(d)(ii) will constitute Posted Collateral in the form of Cash. 
 “Posted
Credit Support” means Posted Collateral and Other Posted Support. 
 “Recalculation Date” means the
Valuation Date that gives rise to the dispute under Paragraph 5; provided, however, that if a subsequent Valuation Date occurs under Paragraph 3 prior to the resolution of the dispute, then the “Recalculation Date” means the most
recent Valuation Date under Paragraph 3. 
 “Resolution Time” has the meaning specified in Paragraph 13. 
 “Return Amount” has the meaning specified in Paragraph 3(b). 
 “Secured Party” means either party, when that party (i) makes a demand for or is entitled to receive Eligible Credit Support under Paragraph 3(a) or (ii) holds or is
deemed to hold Posted Credit Support. 

 “Specified Condition” means, with respect to a party, any event specified as such
for that party in Paragraph 13. 
 “Substitute Credit Support” has the meaning specified in Paragraph 4(d)(i).

 “Substitution Date” has the meaning specified in Paragraph 4(d)(ii). 
 “Threshold” means, with respect to a party, the amount specified as such for that party in Paragraph 13; if no amount is specified,
zero. 
 “Transfer” means, with respect to any Eligible Credit Support, Posted Credit Support or Interest Amount, and
in accordance with the instructions of the Secured Party, Pledgor or Custodian, as applicable: 
  

	 	(i)	in the case of Cash, payment or delivery by wire transfer into one or more bank accounts specified by the recipient; 

  

	 	(ii)	in the case of certificated securities that cannot be paid or delivered by book-entry, payment or delivery in appropriate physical form to the recipient or its account accompanied
by any duly executed instruments of transfer, assignments in blank, transfer tax stamps and any other documents necessary to constitute a legally valid transfer to the recipient; 

  

	 	(iii)	in the case of securities that can be paid or delivered in book-entry, the giving of written instruments to the relevant depository institution or other entity specified by the
recipient, together with a written copy thereof to the recipient, sufficient if complied with to result in a legally effective transfer of the relevant interest to the recipient; and 

  

	 	(iv)	in the case of Other Eligible Support or Other Posted Support, as specified in Paragraph 13. 

 “Valuation Agent” has the meaning specified in Paragraph 13. 
 “Valuation Date” means each date specified in or otherwise determined pursuant to Paragraph 13. 
 “Valuation Percentage” means, for any item of Eligible Collateral, the percentage specified in Paragraph 13. 
 “Valuation Time” has the meaning specified in Paragraph 13. 
 “Value”
means for any Valuation Date or other date for which Value is calculated, and subject to Paragraph 5 in the case of a dispute, with respect to: 
  

	 	(i)	Eligible Collateral or Posted Collateral that is: 

  

	 	(A)	Cash, the amount thereof; and 

  

	 	(B)	a security, the bid price obtained by the Valuation Agent multiplied by the applicable Valuation Percentage, if any; 

  

	 	(ii)	Posted Collateral that consists of items that are not specified as Eligible Collateral, zero; and 

  

	 	(iii)	Other Eligible Support and Other Posted Support, as specified in Paragraph 13. 

 Elections and Variables 
 to the 1994 ISDA Credit Support Annex 
 dated as of 
 November 30, 2006 
 between

  

					
	 WACHOVIA BANK, NATIONAL
 ASSOCIATION
	  	and	  	 NOVASTAR MORTGAGE SUPPLEMENTAL
 INTEREST TRUST, SERIES 2006-6

	(“Party A”)	  		  	(“Party B”)

 Paragraph 13. 
  

	(a)	Security Interest for “Obligations”. 

 The term “Obligations” as used in this Annex includes the following additional obligations: None. 
  

	(b)	Credit Support Obligations. 

  

	 	(i)	Delivery Amount, Return Amount and Credit Support Amount. 

  

	 	(A)	“Delivery Amount” has the meaning specified in Paragraph 3(a), except that the words “upon a demand made by the Secured Party on or promptly following a
Valuation Date” shall be deleted and replaced by the words “on each Valuation Date;” provided, that the Delivery Amount shall be calculated, with respect to collateral posting required by each Rating Agency, by using
(i) such Rating Agency’s Valuation Percentages as provided below to determine Value and (ii) the Credit Support Amount related to such Rating Agency. The Delivery Amount shall be the greatest of such calculated amounts.

  

	 	(B)	“Return Amount” has the meaning specified in Paragraph 3(b); provided, that the Return Amount shall be calculated, with respect to collateral posting
required by each Rating Agency, by using (i) such Rating Agency’s Valuation Percentages as provided below to determine Value and (ii) the Credit Support Amount related to such Rating Agency. The Return Amount shall be the least of
such calculated amounts. 

  

	 	(C)	“Credit Support Amount” has the meaning specified in Paragraph 13(j)(iv). 

  

	 	(ii)	Eligible Collateral. The Valuation Percentages1 listed below shall apply to the following Eligible Collateral: 

  

	1	With respect to collateral types not listed below, such assets will be subject to review by each of S&P and Moody’s. 

  

 1 

										
	 Instrument
	 	 Valuation Percentages
 applicable with respect
 to
calculating Moody’s
 First Trigger Credit
 Support Amount
	 	 	 Valuation Percentages
 applicable with respect to
 calculating Moody’s
 Second Trigger Credit
 Support Amount
	 	 	 Valuation Percentages
 applicable with respect to
 calculating S&P Credit
 Support Amount
	 
	 	 	Moody’s	 	 	Moody’s	 	 	S&P	 
	U.S. Dollar Cash	 	100	%	 	100	%	 	100	%
	Fixed Rate Treasury Debt issued by U.S. Treasury Department with Remaining Maturity:	 
	<1 Year	 	100	%	 	100	%	 	98.6	%
	1 to 2 years	 	100	%	 	99	%	 	97.3	%
	2 to 3 years	 	100	%	 	98	%	 	95.8	%
	3 to 5 years	 	100	%	 	97	%	 	93.8	%
	5 to 7 years	 	100	%	 	95	%	 	91.4	%
	7 to 10 years	 	100	%	 	94	%	 	90.3	%
	10 to 20 years	 	100	%	 	89	%	 	87.9	%
	> 20 years	 	100	%	 	87	%	 	84.6	%
	Floating-Rate Negotiable U.S. Dollar Denominated Treasury Debt Issued by The U.S. Treasury Department	 
	All Maturities	 	100	%	 	99	%	 	0	%
	Fixed-Rate U.S. Dollar Denominated Treasury U.S. Agency Debentures with Remaining Maturity:	 
	< 1 Year	 	100	%	 	99	%	 	98	%
	1 to 2 years	 	100	%	 	98	%	 	96.8	%
	2 to 3 years	 	100	%	 	97	%	 	96.3	%
	3 to 5 years	 	100	%	 	96	%	 	94.5	%
	5 to 7 years	 	100	%	 	94	%	 	90.3	%
	7 to 10 years	 	100	%	 	93	%	 	86.9	%
	10 to 20 years	 	100	%	 	88	%	 	82.6	%
	> 20 years	 	100	%	 	86	%	 	77.9	%
	Floating-Rate U.S. Dollar Denominated U.S. Agency Debentures	 
	All maturities	 	100	%	 	98	%	 	0	%
	Qualified Commercial Paper	 			 			 		
		 	0	%*	 	0	%*	 	99	%

 For the purposes of the above table,
“Qualified Commercial Paper” means commercial paper with a rating of at least P-1 by Moody’s and A-1+ by S&P and having a remaining maturity of not more than one month. 
  

	*	or such other percentage in respect of which Moody’s has provided a rating affirmation. 

  

	 	(iii)	Thresholds. 

  

	 	(A)	“Independent Amount” means with respect to Party A: Zero 

 “Independent Amount” means with respect to Party B: Zero 
  

	 	(B)	“Threshold” means with respect to Party A: infinity; provided that the Threshold with respect to Party A shall be zero for so long as no
Relevant Entity has the First Trigger Required Ratings or a Collateralization Event is occurring and (i) no Relevant Entity has had the First Trigger Required Ratings since this Annex was executed, or (ii) at least 30 Local Business Days
have elapsed since the last time a Relevant Entity had the First Trigger Required Ratings, or (iii) no Relevant Entity has met the Hedge Counterparty Ratings Requirement since this Annex was executed, or (iv) at least 30 calendar days have
elapsed since the last time a Collateralization Event occurred or (v) a Ratings Event is occurring. 

  

	 	  	“Threshold” means with respect to Party B: infinity. 

  

 2 

	 	(C)	“Minimum Transfer Amount” means with respect to Party A: USD $100,000; provided, however, that if S&P is rating the
Certificates and the aggregate Certificate Principal Balances of the rated Certificates falls below $50,000,000, then the Minimum Transfer Amount shall mean USD $50,000. 

  

	 	(D)	“Minimum Transfer Amount” means with respect to Party B: USD $100,000 (or if the Posted Collateral is less than $100,000, the aggregate Value
of Posted Collateral), provided, however, that if S&P is rating the Certificates and the aggregate Certificate Principal Balances of the rated Certificates falls below $50,000,000, then the Minimum Transfer Amount shall mean USD
$50,000 (or if the Posted Collateral is less than $50,000, the aggregate Value of Posted Collateral). 

  

	 	(E)	Rounding. The Delivery Amount will be rounded up to the nearest integral multiple of USD $10,000. The Return Amount will be rounded down to the nearest integral
multiple of USD $10,000. 

  

	 	(iv)	“Exposure” has the meaning specified in Paragraph 12, except that (1) after the word “Agreement” the words “(assuming, for this purpose
only, that Part 1(f)(i) of the Schedule is deleted)” shall be inserted and (2) at the end of such definition, the words “with terms substantially the same as those of this Agreement.” 

  

	(c)	Valuation and Timing. 

  

	 	(i)	“Valuation Agent” means Party A in all circumstances. 

  

	 	(ii)	“Valuation Date” means the first Local Business Day in each week. 

  

	 	(iii)	“Valuation Time” means the close of business in the city of the Valuation Agent on the Local Business Day immediately preceding the Valuation
Date or date of calculation, as applicable, provided that the calculations of Value and Credit Support Amount will, as far as practicable, be made as of approximately the same time on the same date. 

  

	 	(iv)	“Notification Time” means 11:00 a.m., New York time, on a Local Business Day. 

  

	(d)	Conditions Precedent and Secured Party’s Rights and Remedies. None. 

  

	(e)	Substitution. 

  

	 	(i)	“Substitution Date” has the meaning specified in Paragraph 4(d)(ii). 

  

	 	(ii)	Consent. If specified here as applicable, then the Pledgor must obtain the Secured Party’s consent for any substitution pursuant to Paragraph 4(d):
Inapplicable. 

  

	(f)	Dispute Resolution. 

  

	 	(i)	“Resolution Time” means 1:00 p.m., New York time on the Local Business Day following the date on which the notice is given that gives rise to a
dispute under Paragraph 5. 

  

 3 

	 	(ii)	Value. For the purpose of Paragraphs 5(i)(C) and 5(ii), the Value of Eligible Credit Support or Posted Credit Support as of the relevant Valuation Date or date of
Transfer will be calculated as follows: 

  

	 	(A)	with respect to any Eligible Credit Support or Posted Credit Support comprising securities (“Securities”) the sum of (a)(x) the last bid price on such date
for such Securities on the principal national securities exchange on which such Securities are listed, multiplied by the applicable Valuation Percentage; or (y) where any Securities are not listed on a national securities exchange, the bid
price for such Securities quoted as at the close of business on such date by any principal market maker (which shall not be and shall be independent from the Valuation Agent) for such Securities chosen by the Valuation Agent, multiplied by the
applicable Valuation Percentage; or (z) if no such bid price is listed or quoted for such date, the last bid price listed or quoted (as the case may be), as of the day next preceding such date on which such prices were available, multiplied by
the applicable Valuation Percentage; plus (b) the accrued interest where applicable on such Securities (except to the extent that such interest shall have been paid to the Pledgor pursuant to Paragraph 5(c)(ii) or included in the applicable
price) as of such date; and 

  

	 	(B)	with respect to any Cash, the face amount thereof. 

  

	 	(iii)	Alternative. The provisions of Paragraph 5 will apply. 

  

	(g)	Holding and Using Posted Collateral. 

  

	 	(i)	Eligibility to Hold Posted Collateral; Custodians: 

 A Custodian will be entitled to hold Posted Collateral on behalf of Party B pursuant to Paragraph 6(b); provided that: 
 (1) Posted Collateral may be held only in the following jurisdiction: United States. 
 (2)
The Custodian for Party B (A) is a commercial bank or trust company which is unaffiliated with Party B and organized under the laws of the United States or state thereof, having combined capital and surplus of at least $25,000,000 as set forth
in its most recent published annual report of condition, (B) it or its parent shall have a long-term debt rating of “A2” or better by Moody’s, “A” or better by Standard & Poor’s and “A” or better
by Fitch and (C) shall hold all Eligible Credit Support in the Hedge Collateral Account, as defined in the Pooling and Servicing Agreement. 
 (3) Initially, the Custodian for Cash and Securities for Party B is: The Trustee under the Pooling and Servicing Agreement, or any successor trustee thereto. 
  

	 	(ii)	Use of Posted Collateral. The provisions of Paragraph 6(c) will not apply to Party B. The Trustee shall invest Cash Posted Credit Support in such overnight (or
redeemable within two Local Business Days of demand) investments rated at least A-1+ by S&P and Prime-1 by Moody’s or AAAm or AAAm-G by S&P and Aaa by Moody’s (or such other investments as may be affirmed in writing by S&P and
Moody’s) as directed by Party A (unless an Event of Default or an Additional Termination Event has occurred with respect to which Party A is the Defaulting Party or sole Affected Party, in which case such funds shall be invested at the

  

 4 

 written direction of the Servicer, or if neither Party A nor the Servicer provides such written
instructions, such funds shall be retained by the Trustee uninvested) with gains and losses incurred in respect of such investments to be for the account of Party A. 
  

	 	(iii)	Notice. If a party or its Custodian fails to meet the criteria for eligibility to hold (or, in the case of a party, to use) Posted Collateral set forth in this
Paragraph 13(g), such party shall promptly notify the other party of such ineligibility. 

  

	(h)	Distributions and Interest Amount. 

  

	 	(i)	Interest Rate. The “Interest Rate” will be the actual rate of interest earned by Party B or the Custodian if the Cash is invested at the
direction of Party A in accordance with Paragraph 13(g)(ii) above, otherwise the “Interest Rate” will be the federal funds overnight rate as published by the Board of Governors of the Federal Reserve System in H.15
(519) or its successor publication, or such other rate as the parties may agree from time to time. 

  

	 	(ii)	Transfer of Interest Amount. The transfer of the Interest Amount will be made on the second Local Business Day following the end of each calendar month and on any
other Local Business Day on which Posted Collateral in the form of Cash is transferred to the Pledgor pursuant to Paragraph 3(b), in each case to the extent that a Delivery Amount would not be created or increased by that transfer, provided
that Party B shall not be obliged to so transfer any Interest Amount unless and until it has earned and received such interest. 

  

	 	(iii)	Alternative to Interest Amount. The provisions of Paragraph 6(d)(ii) will apply. 

  

	(i)	Address for Transfers. 

 Party A: To be
notified to Party B by Party A at the time of the request for the transfer. 
 Party B: To be notified to Party A by Party B upon request by
Party A. 
  

	(j)	Other Provisions. 

  

	 	(i)	Costs of Transfer on Exchange. 

 Notwithstanding Paragraph 10, the Pledgor will be responsible for, and will reimburse the Secured Party for, all transfer and other taxes and other costs involved in the transfer of Eligible Credit Support either from the Pledgor to the
Secured Party or from the Secured Party to the Pledgor. 
  

	 	(ii)	Cumulative Rights. 

 The rights, powers and
remedies of the Secured Party under this Annex shall be in addition to all rights, powers and remedies given to the Secured Party by the Agreement or by virtue of any statute or rule of law, all of which rights, powers and remedies shall be
cumulative and may be exercised successively or concurrently without impairing the rights of the Secured Party in the Posted Credit Support created pursuant to this Annex. 
  

 5 

	 	(iii)	Ratings Criteria. 

 “Credit
Support Amount” shall be (a) the S&P Credit Support Amount, (b) the Moody’s First Trigger Credit Support Amount, or (c) the Moody’s Second Trigger Credit Support Amount, as applicable. 
 With respect to Moody’s: 
 “Moody’s First Trigger Credit Support Amount” means, for any Valuation Date, the excess, if any, of 
  

	 	(I)	(A) for any Valuation Date on which (I) a First Trigger Failure Condition has occurred and has been continuing (x) for at least 30 Local Business Days or (y) since
this Annex was executed and (II) it is not the case that a Moody’s Second Trigger Event has occurred and been continuing for at least 30 Local Business Days, an amount equal to the greater of (a) zero and (b) the sum of the Secured
Party’s aggregate Exposure for all Transactions and the aggregate of Moody’s Additional Collateralized Amounts for all Transactions. 

 For the purposes of this definition, the “Moody’s Additional Collateralized Amount” with respect to any Transaction shall mean at the option of Party A either: 
 (i) the lesser of (x) the product of the Moody’s First Trigger DV01 Multiplier and DV01 for such Transaction and such Valuation Date and
(y) the product of Moody’s First Trigger Notional Amount Multiplier and the Notional Amount for such Transaction for the Calculation Period which includes such Valuation Date; or 
 (ii) the product of the applicable Moody’s First Trigger Factor set forth in Table 1 attached hereto and the Notional Amount for such Transaction
for the Calculation Period which includes such Valuation Date; or 
 (B) for any other Valuation Date, zero, over 
  

	 	(II)	the Threshold for Party A such Valuation Date. 

 “First Trigger Failure Condition” means that no Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s First Trigger Required Ratings. 
 “DV01” means, with respect to a Transaction and any date of determination, the sum of the estimated change in the Secured
Party’s Exposure with respect to such Transaction that would result from a one basis point change in the relevant swap curve on such date, as determined by the Valuation Agent in good faith and in a commercially reasonable manner. The Valuation
Agent shall, upon request of Party B, provide to Party B a statement showing in reasonable detail such calculation. 
 “Moody’s First Trigger DV01 Multiplier” means 25. 
 “Moody’s First Trigger Notional
Amount Multiplier” means 4%. 
 “Moody’s Second Trigger Credit Support Amount” means, for any
Valuation Date, the excess, if any, of 
  

 6 

	 	(I)	(A) for any Valuation Date on which it is the case that a Second Trigger Failure Condition has occurred and been continuing for at least 30 Local Business Days, an amount equal to
the greatest of (a) zero, (b) the aggregate amount of the Next Payments for all Next Payment Dates and (c) the sum of the Secured Party’s aggregate Exposure and the aggregate of Moody’s Additional Collateralized Amounts for
all Transactions. 

 For the purposes of this definition: 
 “Moody’s Additional Collateralized Amount” with respect to any Transaction shall mean at the option of Party A either:

 (i) the lesser of (x) the product of the Moody’s Second Trigger DV01 Multiplier and DV01 for such Transaction and such Valuation
Date and (y) the product of the Moody’s Second Trigger Notional Amount Multiplier and the Notional Amount for such Transaction for the Calculation Period which includes such Valuation Date; or 
 (ii) the product of the applicable Moody’s Second Trigger Factor set forth in Table 2 attached hereto and the Notional Amount for such Transaction
for the Calculation Period which includes such Valuation Date; or 
 (B) for any other Valuation Date, zero, over 
  

	 	(II)	the Threshold for Party A for such Valuation Date. 

 “Next Payment” means, in respect of each Next Payment Date, the greater of (i) the amount of any payments due to be made by Party A under Section 2(a) on such Next Payment Date less any payments due to be made by
Party B under Section 2(a) on such Next Payment Date (in each case, after giving effect to any applicable netting under Section 2(c)) and (ii) zero. 
 “Next Payment Date” means each date on which the next scheduled payment under any Transaction is due to be paid. 
 “Second Trigger Failure Condition” means that no Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s Second Trigger Ratings Threshold. 
 “Moody’s Second Trigger DV01 Multiplier” means 90. 
 “Moody’s Second Trigger Notional Amount Multiplier” means 9%. 
 With respect to S&P: 
 “S&P Credit Support Amount” means, for any Valuation Date, the excess, if any, of: 
  

	 	(I)    (A)	for any Valuation Date (x) on which a Collateralization Event with respect to S&P has occurred and been continuing for at least 30 calendar days or (y) on which a
Ratings Event with respect to S&P has occurred and is continuing, an amount equal to the sum of (1) the 

  

 7 

 aggregate Secured Party’s Exposure for such Valuation Date with respect to all Transactions and
(2) the aggregate of the products of the Volatility Buffer for each Transaction and the Notional Amount of each Transaction for the Calculation Period of each such Transaction which includes such Valuation Date, or 
  

	 	(B)	for any other Valuation Date, zero, over 

  

	 	(II)	the Threshold for Party A for such Valuation Date. 

 “Volatility Buffer” shall mean the percentage set forth in the following table with respect to any Transaction (other than a Transaction identified in the related Confirmation as a Timing Hedge): 
  

									
	 Short-term credit rating of Party A’s
 Credit Support Provider
	  	Remaining Weighted
Average Life
Maturity up to 3 years	  	Remaining Weighted
Average Life
Maturity up to 5 years	  	 Remaining Weighted
 Average Life
Maturity up to 10 years
	  	 Remaining Weighted
Average Life
 Maturity up to 30 years

	 At least “A-2”
	  	2.75	  	3.25	  	4.00	  	4.75
	 “A-3”
	  	3.25	  	4.00	  	5.00	  	6.25
	 “BB+” or lower
	  	3.50	  	4.50	  	6.75	  	7.50

  

	 	(iv)	Demands and Notices. 

 All demands,
specifications and notices under this Annex will be made pursuant to the Notices Section of this Agreement, save that any demand, specification or notice: 
  

	 	(A)	shall be given to or made at the following addresses: 

 If
to Party A: 
 As set forth in Part 4(a) of the Schedule. 
 If to Party B: 
 As set forth in Part 4(a) of the Schedule. 
 or at such other address as the relevant party may from time to time designate by giving notice (in accordance with the terms of this subparagraph) to
the other party; 
  

	 	(B)	shall be deemed to be effective at the time such notice is actually received unless such notice is received on a day which is not a Local Business Day or after the Notification Time
on any Local Business Day in which event such notice shall be deemed to be effective on the next succeeding Local Business Day. 

  

	 	(v)	Agreement as to Single Secured Party and Pledgor 

 Party A and Party B agree that, notwithstanding anything to the contrary in the first sentence of this Annex, Paragraph 1(b) or Paragraph 2 or the definitions in Paragraph 12, except with respect to Party B’s obligations under
Paragraph 3(b), (a) the term “Secured 
  

 8 

 Party” as used in this Annex means only Party B, (b) the term “Pledgor” as used in
this Annex means only Party A, (c) only Party A makes the pledge and grant in Paragraph 2, the acknowledgement in the final sentence of Paragraph 8(a) and the representations in Paragraph 9 and (d) only Party A will be required to make
Transfers of Eligible Credit Support hereunder. Party A and Party B further agree that, notwithstanding anything to the contrary in the recital to this Annex or Paragraph 7, this Annex will constitute a Credit Support Document only with respect to
Party A. 
  

	 	(vi)	Trustee Capacity. 

 Deutsche Bank National
Trust Company is signing this Credit Support Annex solely in its capacity as Trustee of the Transferee under the Pooling and Servicing Agreement among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., U.S. Bank National Association,
and Deutsche Bank National Trust Company dated as of November 1, 2006 (the “Pooling and Servicing Agreement”) and in the exercise of the powers and authority conferred and vested in it thereunder and not in its individual capacity. It
is expressly understood and agreed by the parties hereto that (i) each of the representations, undertakings and agreements herein stated to be those of Transferee is made and intended for the purpose of binding only the Transferee,
(ii) nothing herein contained shall be construed as creating any liability for Deutsche Bank National Trust Company, individually or personally, to perform any covenant (either express or implied) contained herein stated to be those of
Transferee, and all such liability, if any, is hereby expressly waived by the parties hereto, and such waiver shall bind any third party making a claim by or through one of the parties hereto, and (iii) under no circumstances shall Deutsche
Bank National Trust Company be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Transferee under this Credit Support Annex. All persons having any claim against the Trustee reason of
the Transactions contemplated by this Credit Support Annex shall look only to the assets of NovaStar Mortgage Supplemental Interest Trust, Series 2006-6 (subject to the availability of funds therefor in accordance with the Flow of Funds as set forth
in Article IV of the Pooling and Servicing Agreement) for payment or satisfaction thereof. 
  

	 	(vii)	External Marks.  

 At such time as the
long-term senior debt rating of Party A’s Credit Support Provider is BBB or lower from S&P, Party A in its capacity as Valuation Agent shall get external verification of its calculation of Exposure on a monthly basis. This verification
shall be at Party A’s expense and may not be verified by the same entity more than four (4) times in any twelve (12)-month period. The external mark should reflect the higher of two (2) bids from counterparties that would be willing
and eligible to provide the swap in the absence of the current provider. Such bids and any external marks received by the Valuation Agent shall be provided to S&P. The calculation of Exposure should be based on the greater of the internal and
external marks. 
  

	 	(viii)	Event of Default. 

 Subclause (iii) of
Paragraph 7 shall not apply to Party B. 
 [Signature page follows] 
  

 9 

 IN WITNESS WHEREOF, the parties have executed this document by their duly authorized officers with effect from the
date specified on the first page hereof. 
  

									
	 WACHOVIA BANK, NATIONAL
 ASSOCIATION
	 		 	 NOVASTAR MORTGAGE SUPPLEMENTAL
 INTEREST
TRUST, SERIES 2006-6

				
		 		 		 	 By: Deutsche Bank National Trust Company, as
 Trustee under the Pooling and Servicing
 Agreement, acting not in its individual capacity, but
 solely in its capacity as Trustee to NovaStar
 Mortgage Supplemental Interest
Trust, Series 2006-6

					
	By	 	 /s/ Kim V. Farr
	 		 	By	 	 /s/ Melissa Wilman

	Name:	 	Kim V. Farr	 		 	Name:	 	Melissa Wilman
	Title:	 	Director	 		 	Title:	 	Vice President

 Table 1 
 Moody’s First Trigger Factor 
  

				
	 Remaining Weighted Average Life of Hedge in Years
	  	 Weekly
 Collateral
 Posting
	 
	 1 or less
	  	0.25	%
	 More than 1 but not more than 2
	  	0.50	%
	 More than 2 but not more than 3
	  	0.70	%
	 More than 3 but not more than 4
	  	1.00	%
	 More than 4 but not more than 5
	  	1.20	%
	 More than 5 but not more than 6
	  	1.40	%
	 More than 6 but not more than 7
	  	1.60	%
	 More than 7 but not more than 8
	  	1.80	%
	 More than 8 but not more than 9
	  	2.00	%
	 More than 9 but not more than 10
	  	2.20	%
	 More than 10 but not more than 11
	  	2.30	%
	 More than 11 but not more than 12
	  	2.50	%
	 More than 12 but not more than 13
	  	2.70	%
	 More than 13 but not more than 14
	  	2.80	%
	 More than 14 but not more than 15
	  	3.00	%
	 More than 15 but not more than 16
	  	3.20	%
	 More than 16 but not more than 17
	  	3.30	%
	 More than 17 but not more than 18
	  	3.50	%
	 More than 18 but not more than 19
	  	3.60	%
	 More than 19 but not more than 20
	  	3.70	%
	 More than 20 but not more than 21
	  	3.90	%
	 More than 21 but not more than 22
	  	4.00	%
	 More than 22 but not more than 23
	  	4.00	%
	 More than 23 but not more than 24
	  	4.00	%
	 More than 24 but not more than 25
	  	4.00	%
	 More than 25 but not more than 26
	  	4.00	%
	 More than 26 but not more than 27
	  	4.00	%
	 More than 27 but not more than 28
	  	4.00	%
	 More than 28 but not more than 29
	  	4.00	%
	 More than 29
	  	4.00	%

 Table 2 
 Moody’s Second Trigger Factor for Interest Rate Swaps with Fixed Notional Amounts 
  

				
	 Remaining Weighted Average Life of Hedge in Years
	  	 Weekly
 Collateral
 Posting
	 
	 1 or less
	  	0.60	%
	 More than 1 but not more than 2
	  	1.20	%
	 More than 2 but not more than 3
	  	1.70	%
	 More than 3 but not more than 4
	  	2.30	%
	 More than 4 but not more than 5
	  	2.80	%
	 More than 5 but not more than 6
	  	3.30	%
	 More than 6 but not more than 7
	  	3.80	%
	 More than 7 but not more than 8
	  	4.30	%
	 More than 8 but not more than 9
	  	4.80	%
	 More than 9 but not more than 10
	  	5.30	%
	 More than 10 but not more than 11
	  	5.60	%
	 More than 11 but not more than 12
	  	6.00	%
	 More than 12 but not more than 13
	  	6.40	%
	 More than 13 but not more than 14
	  	6.80	%
	 More than 14 but not more than 15
	  	7.20	%
	 More than 15 but not more than 16
	  	7.60	%
	 More than 16 but not more than 17
	  	7.90	%
	 More than 17 but not more than 18
	  	8.30	%
	 More than 18 but not more than 19
	  	8.60	%
	 More than 19 but not more than 20
	  	9.00	%
	 More than 20 but not more than 21
	  	9.00	%
	 More than 21 but not more than 22
	  	9.00	%
	 More than 22 but not more than 23
	  	9.00	%
	 More than 23 but not more than 24
	  	9.00	%
	 More than 24 but not more than 25
	  	9.00	%
	 More than 25 but not more than 26
	  	9.00	%
	 More than 26 but not more than 27
	  	9.00	%
	 More than 27 but not more than 28
	  	9.00	%
	 More than 28 but not more than 29
	  	9.00	%
	 More than 29
	  	9.00	%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]