Document:

EX-10.10

EXHIBIT 10.10

AMENDED AND RESTATED CONFIRMATION

	 	 	 
	Date:

To:

	 	September 5, 2003

Von Karman Funding Trust

	 	 	 	 	 
	18400 Von Karman, Suite 1000

	Irvine, CA 92616
	 	 	 	 
	Attention: Mr. Kevin Cloyd

	Telephone: 949-862-7941
	 	 	 	 
	Facsimile No: 949-224-5750

	From:
	 	Citibank, N.A. New York

	 	 	 	 	 
	333 West 34th Street, 2nd Floor

	New York, New York 10001
Attention: Confirmations Unit
Telephone: 212-615-8981
Facsimile No.: 212-615-8985
Re:
	 	Transaction Reference No. 50034056
	 
	 	 	 	 

	 	 	Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of the Swap
Transaction entered into between Citibank, N.A. (“Party A”) and Von Karman Funding Trust
(f/k/a Von Karman Funding Trust LLC) (“Party B”) on the Trade Date referred to below (the
“Transaction”). It constitutes a “Confirmation” as referred to in the Master Agreement
specified below. This amended and restated Confirmation supercedes and replaces the Confirmation,
dated as of September 5, 2003 between Party A and Party B with the same transaction reference
number, and is effective as of January 30, 2006.

The definitions and provisions contained in (i) the 2000 ISDA Definitions (the
“Definitions”), as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”), are incorporated into this Confirmation. In the event of any inconsistency
between the Definitions and the provision of this Confirmation, this Confirmation will govern.

	1.	 	This Confirmation supplements, forms part of, and is subject to, the ISDA Master
Agreement, dated as of September 5, 2003, as amended and restated as of December 15, 2005, as
further amended, restated and supplemented from time to time (the “Agreement”),
between you and us. All provisions contained in the Agreement shall govern this Confirmation
except as expressly modified below. Unless otherwise defined in this Confirmation or in the
Definitions, capitalized terms used herein have the meanings ascribed to such terms in the
Definitions List attached as Schedule I to the Security Agreement.

	2.	 	The terms of the Transaction to which this Confirmation relates are as follows:

	 	 	 	Trade Date: September 5, 2003

	 	 	 	Effective Date: September 17, 2003 (amendment and restatement effective January 30, 2006)

	 	 	 	Termination Date: The earlier of (i) February 25, 2009, subject to annual extension upon
agreement of Party B and Party A and (ii) the Program Termination Date in accordance with
the Agreement.

	 	 	 	Business Day: Any day other than (i) Saturday and Sunday or (ii) a day on which banking
institutions or foreign exchange markets in New York City are authorized or required by
law, regulation or executive order to be closed for business.

	 	 	 	Business Day Convention: Following.

	 	 	 	Notional Amount: With respect to any Payment Date, the notional amount of this Transaction will
equal the product of (i) the Sharing Percentage multiplied by (ii) the sum of (x) the
weighted average of the aggregate Outstanding Purchase Price of all Mortgage Loans owned by
Party B on each day during the related Calculation Period and (y) the weighted average of
any cash and Eligible Investments held by Party B on each day during the related
Calculation Period.

Maximum Notional

	 	 	 	Amount: In no event will the aggregate notional amount of this Transaction exceed USD
1,000,000,000, or such other amount as may be provided in a written agreement between the
parties hereto, provided however, that such agreement may not reduce the aggregate maximum
notional amount of this Transaction to an amount less than the Program Size on the date of
such agreement.

	 	 	 	Sharing Percentage: The percentage expressed as a fraction, the numerator of which is the
Maximum Notional Amount and the denominator of which is the Program Size.

	 	 	 	Calculation Period: With respect to each Payment Date, the calendar month immediately preceding
such Payment Date; provided, however, solely for purposes of calculating Issuer Funding
Cost and accrued interest received on sales of Mortgage Loans with respect to each Payment
Date, “Calculation Period” shall mean the period from but excluding the prior
Payment Date to and including such Payment Date, except that in each case (a) the initial
Calculation Period will commence on, and include, the Effective Date and (b) the final
Calculation Period will end on, and include, the Termination Date.

	 	 	 	Payment Dates: The 25th day of each month (or, if any such day is not a Business Day, the next
following Business Day).

	 	 	 	Interim Payment Dates: Each day on which a deposit is made into the Collateral Account in
respect of: (1) proceeds from the sale (other than a sale, or a Mortgage Loan subject to
sale, to the Seller or the Servicer pursuant to Section 3.3, 3.5(c), 6.2 or 7.1 of the
Mortgage Loan Purchase and Servicing Agreement) or securitization of a Mortgage Loan; or
(2) a prepayment in full of a Mortgage Loan (each such date, a “Loan Termination
Date”; and each Mortgage Loan which is sold (other than a sale, or a Mortgage Loan
subject to sale, to the Seller or the Servicer pursuant to Section 3.3, 3.5(c), 6.2 or 7.1
of the Mortgage Loan Purchase and Servicing Agreement) or prepaid in full is referred to as
a “Terminated Loan”); provided, however, if the Servicer is not notified by 1:00
p.m. New York City time at least one Business Day in advance that a deposit in respect of
(1) and (2) above is going to be made, such deposit shall be deemed to occur on the
Business Day immediately following the day on which such deposit was made, and the Mortgage
Loan in respect of which such deposit was made shall be deemed to be a Terminated Loan on
the Business Day immediately following the day on which such deposit was made.

	 	 	 	Calculation Agent: The Servicer. Party B shall ensure that the Calculation Agent will perform
its obligations in good faith and shall, (i) provide a report to Party A in accordance with
Section 4.24 of the Mortgage Loan Purchase and Servicing Agreement, (ii) provide to
Party A on or before the last Business Day of each week and no later than the first
Business Day after a request, a report, dated no earlier than one Business Day before the
date such report is delivered, in the form of Exhibit A hereto in respect of all
the Mortgage Loans then owned by the Issuer, (iii) provide to Party A on or before 8 pm New
York City time on each Business Day on which Mortgage Loans are acquired by the Issuer, a
report in the form of Exhibit A hereto in respect of such Mortgage Loans, (iv)
provide to Party A on or before noon New York City time on the Business Day following each
Closing Date, a data tape of all the Mortgage Loans owned by the Issuer, and a report in
the form of Exhibit A hereto in respect of such Mortgage Loans, and (v) upon the
reasonable request of Party A, provide a certified statement to Party A showing in
reasonable detail such calculations, specifying the source of the calculations and
providing copies of all material documents and information relied upon by the Calculation
Agent in performing its obligations hereunder. Party A acting in good faith may dispute
any calculation of the Calculation Agent and the parties shall use reasonable efforts to
resolve any disputes concerning such calculations.

	3.	 	Party A Floating Payments:

Party A Floating

	 	 	 	Amount: On the Business Day immediately preceding each Payment Date, Party A will pay Party B an
amount equal to the product of (i) the Sharing Percentage and (ii) the Issuer Funding Cost
for the related Calculation Period (net of any amounts previously paid by Party A in
respect of payments for accrued interest on Extended Notes as a Party A Accrued Interest
Payment for such Calculation Period), provided that with respect to any Calculation Period
in which Delinquent Loans (for which no Servicer Monthly Advances of interest have been
made during the related Calculation Period) or Defaulted Loans exist, the Issuer Funding
Cost for the related Calculation Period shall be multiplied by the Credit Reduction Factor
for such Payment Date. For the avoidance of doubt, the amount of each Party A Floating
Amount actually payable (if any) with respect to any Payment Date shall be calculated after
giving payment netting pursuant to Part 4(j) of the Schedule.

Party A Interim

	 	 	 	Floating Amount: On each Interim Payment Date, Party A will pay Party B an amount equal to the
product of (i) the Sharing Percentage and (ii) the sum of all Partial Termination Payments
with a positive value for all Partial Terminations effected on such date.

Party A Accrued

	 	 	 	Interest Payment: Party A will pay an amount equal to the product of (i) the Sharing Percentage
and (ii) the accrued and unpaid interest on Extended Notes paid in full on the related
Accrued Interest Payment Date.

	 	 	 	Party A Accrued

	 	 	 	Interest Payment Date: The Business Day immediately preceding any day (other than a Payment
Date) on which any Extended Notes are paid in full (an “Accrued Interest Payment Date”).

	4.	 	Party B Floating Payments:

Party B Floating

	 	 	 	Amount: On each Payment Date, Party B will pay Party A an amount equal to the sum of (X) the
product of (i) the Sharing Percentage and (ii) (A) minus (B) where (A) equals the sum of
(i) the aggregate amount of the interest and any penalties (including prepayment penalties
and prepayment premiums to the extent not previously paid on an Interim Payment Date) on
the Mortgage Loans received by Party B with respect to the related Calculation Period and
deposited into the Collateral Account on or prior to such Payment Date, (ii) Deferred
Amounts received by Party B during the related Calculation Period and not previously
included in the payment amount paid to Party A on any previous Interim Payment Date, (iii)
reinvestment income received during the related Calculation Period on amounts on deposit in
the Collateral Account and (iv) amounts on deposit in the Reserve Fund in excess of the
Required Reserve Fund Amount and paid into the Collateral Account pursuant to Section
6.05(b) of the Security Agreement, and where (B) equals the sum of (i) the Allocated
Expenses payable on such Payment Date (including the Servicing Fee paid to the Servicer for
the related Calculation Period), (ii) the Acquisition Date Accrued Interest for the related
Calculation Period and (iii) the Designated Excess Spread Amount for such Payment Date, and
(Y) the Swap Fee.

Party B Interim

	 	 	 	Floating Amount: On each Interim Payment Date, Party B will pay Party A by 12:00 noon New York
City time an amount equal to the product of (i) the Sharing Percentage and (ii) the
absolute value of all negative Partial Termination Payments for all Partial Terminations
effected on such date plus all Deferred Amounts received by Party B and not previously paid
to Party A prior to such date, provided, however, that the negative Partial Termination
Payment for any Terminated Loan shall not exceed the excess, if any, of (x) the Adjusted
Fair Market Value of such Terminated Loan on the date it became a Terminated Loan, over (y)
the Outstanding Purchase Price of such Terminated Loan.

Party B Second

	 	 	 	Floating Amount: To the extent that Party B has available funds, an amount equal to the product
of (x) the Sharing Percentage, and (y) any amounts due and payable to the Swap
Counterparties pursuant to Section 6.03(b)(xii) of the Security Agreement in
accordance with the priorities of payment set forth therein.

	 	 	 
	Party B Second Floating

Amount Payment Dates:

	 	

Any Payment Date.

Party B Third

	 	 	 	Floating Amount: To the extent that Party B has available funds, an amount equal to the product
of (x) the Sharing Percentage, and (y) any amounts due and payable to the Swap
Counterparties pursuant to clause Ninth of Section 2.01(b) of the Security
Agreement in accordance with the priorities of payment set forth therein.

	 	 	 	 	 
	5.

	 	Party B Third Floating

Amount Payment Dates:

Definitions:
	 	

Any Business Day.

In this Confirmation,
	
 
	 	 
	 	

“Adjusted Fair Market Value” means, with respect to
any Mortgage Loan and any date of determination, the Market
Value of such Mortgage Loan on the related Closing Date for
Party B’s purchase of such Mortgage Loan, reduced by any
principal payments received by Party B with respect to such
Mortgage Loan on or after the related Closing Date and prior
to such date of determination.

“Credit-Adjusted Price” (i) with respect to a
Terminated Loan which is a Delinquent Loan or a Defaulted
Loan shall mean the hypothetical sales proceeds in cash, as
determined in good faith by the Calculation Agent, that would
be received in connection with the sale of a Reference
Mortgage Loan to a Qualified Purchaser on the date such
Delinquent Loan or Defaulted Loan, as the case may be,
becomes a Terminated Loan; provided that (ii) following a
Swap Failure or a Servicer Event of Default, if (x) the
aggregate Outstanding Purchase Price of the Delinquent Loans
and Defaulted Loans shall be greater than 10% of the
aggregate Outstanding Purchase Price of all Mortgage Loans
owned by Party B, and (y) Party A undertakes its own good
faith determination of the amount referred in (i) above (a
“quotation”) and such quotation is more than 1.00% lower than
the good faith determination of the Calculation Agent, and
the parties cannot resolve such difference on such Business
Day by negotiating promptly and in good faith, the
Credit—Adjusted Price shall be the Polled Price.

“Credit Reduction Factor” shall mean as of any
Payment Date, a fraction equal to (i) the average aggregate
Outstanding Purchase Price of the Mortgage Loans owned by
Party B on each day during the related Calculation Period
exclusive of Defaulted Loans and Delinquent Loans (other than
Delinquent Loans for which the Servicer has made Servicer
Monthly Advances) (prior to giving effect to distributions
and allocations on such date) divided by (ii) the sum of (A)
the aggregate outstanding principal amount of the Notes
(except with respect to all non-interest bearing Security
Liquidity Notes outstanding as of the end of the related
Calculation Period, which shall equal an amount equal to the
aggregate face amount (less the discount component) of such
Secured Liquidity Notes) and (B) the aggregate principal
amount of the Subordinated Notes.

“Designated Excess Spread Amount” means an amount
equal to the product of (x) 2.00%, (y) the sum of the Average
Outstanding Purchase Price of the Mortgage Loans with respect
to the related Calculation Period and the average of the cash
and Eligible Investments held by Party B on each day during
the related Calculation Period, times (z) the actual number
of days in the related Calculation Period, divided by 365.

“Issuer Funding Cost” shall mean, with respect to any
Calculation Period, an amount equal to the sum of (i) with
respect to a Calculation Period in which interest-bearing
Secured Liquidity Notes matured, the amount of accrued
interest on such Notes, (ii) with respect to a Calculation
Period in which non-interest bearing Secured Liquidity Notes
matured, the accrued discount in respect of such Secured
Liquidity Notes, (iii) with respect to any Calculation Period
in which a Distribution Date for the Extended Notes occurs,
the amount of accrued and unpaid interest payable in respect
of the Extended Notes on such Distribution Date and (iv) with
respect to any Calculation Period immediately preceding a
Payment Date for the Subordinated Notes, the amount of
accrued and unpaid interest payable in respect of the
Subordinated Notes on such following Payment Date.

“Loan Termination Date” has the meaning set forth in
the section entitled “Interim Payment Dates.”

“Partial Termination” means the occurrence of a Loan
Termination Date.

“Partial Termination Payment” means an amount, which
may be positive or negative, calculated with respect to each
Terminated Loan (I) which is sold by Party B or securitized
equal to the difference between (i) the Outstanding Purchase
Price of such Terminated Loan and (ii) (A) if the Partial
Termination occurs with respect to a non-Delinquent Loan or
non-Defaulted Loan, the sales proceeds (net of any Deferred
Amounts, if any, and any accrued interest if determinable on
such date) of the Mortgage Loan to which the Partial
Termination relates (which sales proceeds in the case of a
bundled whole loan sale or a securitization shall equal the
sales proceeds for the related bundle of loans or
securitization) and (B) if the Partial Termination occurs
with respect to a Delinquent Loan or Defaulted Loan, the
Credit-Adjusted Price or (II) which results from a prepayment
in full of such Mortgage Loan equal to (i) the Outstanding
Purchase Price of such Mortgage Loan less (ii) the principal
payments (including prepayment penalties and prepayment
premiums) that were deposited in the Collateral Account on or
prior to such date. To the extent that the Partial
Termination Payment is a positive number, Party A shall pay
such amount to Party B and to the extent that it is a
negative number, Party B shall pay to Party A an amount equal
to the absolute value thereof.

“Polled Price” shall mean, for purposes of each
Interest Rate Swap, (x) if three or more Swap Counterparties
prepare quotations under their respective Interest Rate
Swaps, the quotation remaining (if exactly three Swap
Counterparties prepare quotations) or the arithmetic mean of
the quotations (if more than three Swap Counterparties
prepare quotations), without regard to the quotations having
the highest and lowest values, (y) if two Swap Counterparties
prepare quotations under their respective Interest Rate
Swaps, the arithmetic mean of the quotations, and (z) if one
Swap Counterparty prepares a quotation under its Interest
Rate Swap, the arithmetic mean of such quotation and the
determination by the Calculation Agent under (i) of the
definition of “Credit-Adjusted Price.”

“Program Termination Date” shall mean the date all
outstanding Secured Liquidity Notes, Extended Notes and
Subordinated Notes are paid in full or redeemed in accordance
with the Security Agreement and the Indenture.

“Qualified Purchaser” shall mean a regular purchaser
in the market for nonprime mortgage loans.

“Reference Mortgage Loan” shall mean a hypothetical
nonprime mortgage loan used by the Calculation Agent for the
purposes of determining the Credit-Adjusted Price with
respect to a Terminated Loan that is a Delinquent Loan or a
Defaulted Loan which is otherwise substantially similar to
such Delinquent Loan or Defaulted Loan in all respects,
including interest rate, principal balance, cash flows and
all other payment characteristics, except that such nonprime
home mortgage loan is not a Delinquent Loan or Defaulted
Loan, as the case may be.

“Security Agreement” means the Amended and Restated
Security Agreement, dated as of December 15, 2005, by and
between Deutsche Bank Trust Company Americas, as Collateral
Agent, and Party B, as such agreement may be amended,
modified or supplemented from time to time.

“Swap Fee” means, with respect to any Payment Date,
the product of (a) 0.15%, times (b) the current Notional
Amount for the relevant Calculation Period, times (c) the
actual number of days from and including the preceding
Payment Date to, but excluding, such Payment Date, divided by
360.

“Terminated Loan” has the meaning set forth in
the section entitled “Interim Payment Dates.”

	6.	 	Payment Instructions:

	 
	Party A
	 

	To be provided in written instructions.

	 

	Party B

	 

	 

	To be provided in written instructions.

1

Please confirm that the foregoing correctly sets forth the terms and conditions of our
agreement by returning an executed copy of this Confirmation to us.

Yours sincerely,

CITIBANK, N.A.

By: /s/ Steven Incontro

Name: Steven Incontro

Title: Vice President

Confirmed as of the date first written:

VON KARMAN FUNDING TRUST

By: Christiana Bank & Trust Company,

not in its individual capacity but solely as Owner Trustee

By: /s/ James M. Young

Name: James M. Young

Title: Assistant Vice President

2EX-10.11

EXHIBIT 10.11

AMENDED AND RESTATED SCHEDULE

to the Master Agreement

(Multicurrency – Cross Border)

dated as of September 5, 2003

as amended and restated as of December 15, 2005

between

CITIBANK, N.A.

(“Party A”),

a national banking association organized

under the laws of the United States

and

VON KARMAN FUNDING TRUST

(f/k/a VON KARMAN FUNDING LLC)

(“Party B”)

a statutory trust (formerly a limited liability company) organized

under the laws of Delaware

	 	 	Part 1. Termination Provisions

In this Agreement:

(a) “Specified Entity” means in relation to Party A for the purpose of:

	 	 	 
	Section 5(a)(v)

	 	Not Applicable.
	 

	 	

	Section 5(a)(vi)

	 	Not Applicable.
	 

	 	

	Section 5(a)(vii)

	 	Not Applicable.
	 

	 	

	Section 5(b)(iv)

	 	Not Applicable.
	 

	 	

	 
	 	 
	and in relation to Party B for the purpose of:

	 
	 	 
	Section 5(a)(v)

	 	Not Applicable.
	 

	 	

	Section 5(a)(vi)

	 	Not Applicable.
	 

	 	

	Section 5(a)(vii)

	 	Not Applicable.
	 

	 	

	Section 5(b)(iv)

	 	Not Applicable.
	 

	 	

(b) “Specified Transaction” will have the meaning specified in Section 14 of this
Agreement.

(c) (i) The provisions of Section 5(a) and Section 5(b) (as modified by (g)
below) will apply to Party A and to Party B as follows:

The designation below of an Event of Default as being “Applicable” to a specific party means
that upon the occurrence of such an Event of Default with respect to such party, the other
party shall have the rights of a Non-defaulting Party under Section 6 of the
Agreement, and conversely, the designation of such an event as being “Not Applicable” means
that such other party shall not have such right.

	 	 	 	 	 
	(ii) Section 5(a)	 	Party A	 	Party B
	(i) “Failure to Pay or Deliver”

	 	Applicable.
	 	Applicable.
	 
	 	 	 	 
	(ii) “Breach of Agreement”

	 	Applicable.
	 	Not Applicable.
	 
	 	 	 	 
	(iii) “Credit Support Default”

	 	Applicable.
	 	Not Applicable.
	 
	 	 	 	 
	(iv) “Misrepresentation”

	 	Applicable.
	 	Not Applicable.
	 
	 	 	 	 
	(v) “Default under Specified

Transaction”

	 	

Not Applicable.
	 	

Not Applicable.
	 
	 	 	 	 
	(vi) “Cross Default”

	 	Not Applicable.
	 	Not Applicable.
	 
	 	 	 	 
	(vii) “Bankruptcy”

	 	Applicable.
	 	Applicable.
	 
	 	 	 	 
	(viii) “Merger Without

Assumption”

	 	

Applicable.
	 	

Applicable.

provided that Section (5)(a)(i) of this Agreement is amended, subject to Part 5(i)
of this Schedule, to read as follows:

Failure to Pay or Deliver. Failure by the party to make, on the date 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 first Local Business Day after notice (including notice via email or facsimile)
of such failure is given to the party.

The designation below of a Termination Event as being “Applicable” to a specific
party means that upon the occurrence of such Termination Event with respect to such party,
either party in the case of an Illegality, the Burdened Party in the case of a Tax Event
Upon Merger, 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, as the case
may be, shall have the right to terminate the Transaction in accordance with Section 6
(b) of the Agreement, and conversely, the designation of such an event as being “Not
Applicable” means that neither party shall have the right to terminate the Transaction
in accordance with Section 6(b) of the Agreement upon the occurrence of such
Termination Event with respect to such party.

	 	 	 	 	 
	Section 5(b)	 	Party A	 	Party B
	(i) “Illegality”

	 	Applicable.
	 	Applicable.
	 
	 	 	 	 
	(ii) “Tax Event”

	 	Applicable.
	 	Applicable.
	 
	 	 	 	 
	(iii) “Tax Event Upon Merger”

	 	Applicable.
	 	Not Applicable.
	 
	 	 	 	 
	(iv) “Credit Event Upon Merger”

	 	Applicable.
	 	Not Applicable.
	 
	 	 	 	 
	(v) “Additional Termination

Event”

	 	

Applicable.
	 	

Not Applicable.

(d) Payments on Early Termination. Notwithstanding Section 6(e) of the Agreement, upon the
occurrence or effective designation of an Early Termination Date, no termination payments shall be
payable by either party except as set forth in Part 5(b) of this Schedule.

(e) “Termination Currency” means United States Dollars (“USD”).

(f) The “Automatic Early Termination” provisions of Section 6(a) will not apply to Party A
or Party B.

(g) The following shall be specified as an “Additional Termination Event” pursuant to Section
5(b)(v):

	 	 	 
	Party A Downgrade. The occurrence and continuation

	 
	 	 
	of a Termination Event following the expiration of

	 
	 	 
	the applicable 30 day grace period pursuant to Part

	 
	 	 
	5(p) herein, in which case, the Early Termination

	 
	 	 
	Date for the Transaction shall be the date

	 
	 	 
	designated by Party B, subject to Part 5(b)(v) of

	 
	 	 
	this Schedule. For purposes of the foregoing

	 
	 	 
	Additional Termination Event, Party A shall be the

	 
	 	 
	Affected Party.

Part 2.

	 	

Tax Representations.

(a) Payer Tax Representations. For the purpose of Section 3(e) of this Agreement, Party A
and Party B will each make the following representation:

It is not required by any applicable law, as modified by the practice of any
relevant governmental revenue authority, of any Relevant Jurisdiction to make any
deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii) or 6(e) of this
Agreement) to be made by it to the other party under this Agreement. In making this
representation, it may rely on (i) the accuracy of any representations made by the
other party pursuant to Section 3(f) of this Agreement, (ii) the
satisfaction of the agreement of the other party contained in Section
4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and
effectiveness of any document provided by the other party pursuant to Section
4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction of the
agreement of the other party contained in Section 4(d) of this Agreement,
provided that it shall not be a breach of this representation where reliance
is placed on clause (ii) and the other party does not deliver a form or document
under Section 4(a)(iii) by reason of material prejudice to its legal or commercial
position.

(b) Payee Tax Representations. For the purpose of Section 3(f) of this Agreement, Party A
and Party B will make the following representations specified below, if any:

	 	 	The following representation will apply to Party A:

It is a national banking association organized under the laws of the United States and its
U.S. taxpayer identification number is 13-5266470. It is “exempt” within the meaning of
Treasury Regulation sections 1.6041-3(p) and 1.6049-4(c) from information reporting on Form
1099 and backup withholding.

	 	 	 
	The following representation will apply to Party B: It is a statutory trust organized

	 
	 	 
	under the laws of Delaware.

Part 3.

	 	

Agreement to Deliver Documents.

Section 4(a) of this Agreement is amended by deleting the following in the first
sentence thereof:

, in certain cases under subparagraph (iii) below,

Section 4(a)(iii) of this Agreement is amended to read as follows:

any forms, documents or certificates that may be required or reasonably requested in
order to allow such other party 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, with
any such forms, documents or certificates to be accurate and completed in a manner
reasonably satisfactory to such other party, and to be executed and to be delivered
with any required certification to such other party (or to such government or taxing
authority as such other party reasonably directs), promptly upon the earlier of (A)
reasonable demand by such other party and (B) learning that any such forms,
documents or certificates are required;

For the purpose of Section 4(a)(i) and Section 4(a)(ii) of this
Agreement, Party A and Party B each agree to deliver the following documents, as
applicable:

Documents to be delivered are:

	 	 	 	 	 	 	 
	Party required to	 	Form, Document or	 	Date by which to be	 	Covered by Section
	deliver document	 	Certificate	 	Delivered	 	3(d)
	 	 	An opinion of	 	 	 	 
	 	 	counsel to Party A	 	 	 	 
	 	 	acceptable to	 	Upon execution of	 	 
	Party A	 	counsel of Party B.	 	this Agreement.	 	No
	 	 	An incumbency	 	 	 	 
	 	 	certificate with	 	 	 	 
	 	 	respect to the	 	 	 	 
	 	 	signatory of this	 	Upon execution of	 	 
	Party A	 	Agreement.	 	this Agreement.	 	Yes
	 	 	An opinion of	 	 	 	 
	 	 	counsel to Party B	 	 	 	 
	 	 	acceptable to	 	Upon execution of	 	 
	Party B	 	counsel of Party A.	 	this Agreement.	 	No
	 	 	An incumbency	 	 	 	 
	 	 	certificate with	 	 	 	 
	 	 	respect to the	 	 	 	 
	 	 	signatory of this	 	Upon execution of	 	 
	Party B	 	Agreement.	 	this Agreement.	 	Yes
	 	 	Executed copies of	 	Upon execution of	 	 
	 	 	each Program	 	this Agreement and	 	 
	 	 	Document and each	 	on the date of each	 	 
	Party B	 	amendment thereof.	 	amendment thereof.	 	Yes
	 	 	 	 	(i) Before the	 	 
	 	 	 	 	first Payment Date	 	 
	 	 	 	 	under this	 	 
	 	 	 	 	Agreement, (ii)	 	 
	 	 	 	 	promptly upon	 	 
	 	 	 	 	reasonable demand	 	 
	 	 	 	 	by Party A and	 	 
	 	 	 	 	(iii) promptly upon	 	 
	 	 	 	 	a party learning	 	 
	 	 	An executed U.S.	 	that any such form	 	 
	 	 	Internal Revenue	 	previously provided	 	 
	 	 	Service Form W-9	 	by such party has	 	 
	 	 	(or any successor	 	become obsolete or	 	 
	Party A and Party B	 	thereto).	 	incorrect.	 	N/A
	Party B

	 	Copy of each notice

and/or report

received or

delivered by the

Issuer pursuant to

the Program

Documents.
	 	As provided in the

Program Documents.

	 	Yes

	 	 	Part 4. Miscellaneous.

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

Address for notices or communications to Party A:

	 	 	 	 	 
	
 
	 	Address:

250 West Street

10th Floor

New York, New York 10013
	 	Citibank, N.A.

	 
	 	 	 	 
	Attention:	 	Director Derivatives Operations

	 
	 	 	 	 
	
 
	 	Facsimile:
	 	(212) 723-2956

In addition, in the case of notices or communications relating to Section 5,
6, 11 or 13 of this Agreement, a second copy of any such
notice or communication shall be addressed to the attention of the legal department
of Citibank as follows:

	 	 	 	 	 
	Address:
	 	Legal Department

	77 Water Street
9th Floor
New York, New York 10004
	 	 	 	 
	Attention:Department Head
Facsimile:(212) 657-1452
(For all purposes)
	 	 	 	 
	Address for notices or communications to Party B:

	Address:
	 	Von Karman Funding Trust

	c/o New Century Mortgage Corporation, as Administrator

	18400 Von Karman, Suite 1000
Irvine, California 92612
	 	 	 	 
	Attention: Kevin Cloyd (with copies to General Counsel)

	Facsimile: 949-224-5750
Telephone: 949-862-7941
	 	 	 	 
	Address for notices or communications to Moody’s:

	Address:
	 	Moody’s Investors Service, Inc.

99 Church Street

New York, New York 10007

	 	 	 
	Attention: Asset Backed Commercial Paper Group

	 
	 	 
	Facsimile No: (212) 553-0300

	 	

	 
	 	 
	Address for notices or communications to S&P:

	 
	 	 
	Address:

	 	Standard & Poor’s,

a division of The McGraw-Hill Companies, Inc.

55 Water Street

New York, New York 10041

	 	 	 
	Attention: Asset Backed Surveillance Group

	 
	 	 
	Facsimile No: (212) 438-2647

Address for notices to Servicer:

	 	

	Address:

	 	New Century Mortgage Corporation

18400 Von Karman, Suite 1000

Irvine, California 92612

Attention: Kevin Cloyd (with copies to General Counsel)

Telephone: 949-862-7941

Facsimile No: 949-224-5750

Notices under this Agreement and the Transaction shall be sent to Moody’s and S&P only to the
extent specifically required in the transaction confirmation.

(b) Process Agent. For the purpose of Section 13(c):

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 Party A and will not apply to
Party B.

(d) Multibranch Party. For the 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. The Servicer (as set forth in detail in the Confirmation).

(f) Credit Support Document. Details of any Credit Support Document:

In the case of Party A: Initially none; provided, however, if Party A is required to post
Eligible Collateral pursuant to Part 5(p) of this Schedule, the 1994 ISDA Credit Support
Annex (New York law) and paragraph 13 thereto (to be negotiated between the parties at such
time).

In the case of Party B: The Security Agreement.

Notwithstanding the foregoing, each Party hereto acknowledges and agrees that “Credit
Support Default” and “Misrepresentation” (Section 5(a)(iii) and Section
5(a)(iv), respectively, of the Agreement) shall not constitute Events of Default
applicable to Party B.

(g) Credit Support Provider.

Credit Support Provider means in relation to Party A: Not Applicable.

Credit Support Provider means in relation to Party B: Not Applicable.

(h) “Affiliate” will have the meaning specified in Section 14 of this Agreement.

(i) GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICTS OF LAWS PROVISIONS THEREOF).

(j) Netting of Payments. Section 2(c)(ii) will apply with respect to all payments under
this Agreement. For purposes of netting pursuant to Section 2(c)(ii), payments made on the
Business Day before a Payment Date shall be deemed to be made on such Payment Date.

(k) Account Detail:

	 	 	 
	Payments to Party A:The Account described in the related Confirmation

	 
	 	 
	Payments to Party B:Collateral Account under the Security Agreement

	 
	 	 
	Part 5.

	 	Other Provisions.

(a) Confirmation. The Confirmation, as amended and supplemented from time to time, supplements,
forms part of, and will be read and construed as one with the Agreement. The parties hereby agree
and acknowledge that the Transaction entered into pursuant to the Confirmation, dated as of the
date hereof and bearing the Reference No. 50034056, between the parties shall constitute the sole
Transaction under this Agreement.

(b) Early Termination.

	 	(i)	 	Section 6(b)(ii) is hereby amended by adding at the end of the first
paragraph the following:

“, provided that the party seeking to make the transfer such that such Termination
Event ceases to exist shall deliver to the Servicer and Party B (in the case of
transfers by Party A) or to Party A (in the case of transfers by Party B) written
confirmation from each Rating Agency that such transfer will not result in the
then-current rating of any series of Notes outstanding being withdrawn or lowered.”

	 	(ii)	 	Payments on Early Termination. If an Early Termination Date is
designated with respect to Party A or Party B, no termination payments under
Section 6(e) shall be payable by either party, except (A) each Party shall make
all payments pursuant to the Confirmation through and including the Early Termination
Date; and (B) without duplication of the amounts payable pursuant to the foregoing
clause (A), Party A shall pay to Party B the Unpaid Amounts owing to Party B by Party A
as of the Early Termination Date and Party B shall pay to Party A the Unpaid Amounts
owing to Party A by Party B as of the Early Termination Date, and neither party shall
have any further liability in respect of the termination of this Agreement except as
set forth in this Schedule and the Confirmation; provided, however, if
Party A is the sole Defaulting Party or sole Affected Party prior to the designation of
an Early Termination Date or an Early Termination Date is deemed to occur, Party A
shall make or cause to be made such payments (if any) to the Successor Counterparty (as
defined below) in the amount and manner as are specified below in Part 5(b)(iii)
hereof.

	 	(iii)	 	(A) In the event that an Event of Default or Termination Event has occurred
and Party A is the sole Defaulting Party or sole Affected Party, Party A and Party B
agree as follows:

(1) Party A shall give prompt written notice of such Event of Default or
Termination Event to Party B, the Servicer, Moody’s and S&P.

(2) Commencing with the date of such Event of Default or Termination Event,
Party A shall use its reasonable efforts to cooperate with Party B and the Servicer
to transfer Party A’s rights and duties hereunder and any hedge transaction to (or
otherwise procure a replacement transaction with terms substantially similar to this
Transaction with) a successor to Party A having a short-term unsecured and
unguaranteed debt rating of “A-1+” by S&P and “P-1” by Moody’s and, if rated by
Fitch, “F1+” by Fitch and a long-term debt rating of at least “AA-” by S&P and “Aa3”
by Moody’s and, if rated by Fitch, “AA-“ by Fitch (a “Successor
Counterparty”), such that the ratings of the Notes by each Rating Agency will
not be withdrawn or reduced below the ratings of the Notes prior to such Event of
Default or Termination Event.

(3) Party B shall not designate an Early Termination Date unless (i) a
Successor Counterparty is appointed and the requirements of Part 5(b)(iii)(A)(2) of
this Schedule are otherwise satisfied upon designation of such Early Termination
Date or (ii) a termination of the Program has commenced pursuant to Section
11.2 under the Mortgage Loan Purchase and Servicing Agreement (in which case,
the Early Termination Date shall be deemed to be the Program Termination Date (as
defined below)).

(4) Party A shall bear or otherwise reimburse Party B and the Servicer for all
reasonable costs associated with the actions required by Part 5(b)(iii)(A)(2) of
this Schedule. For the avoidance of doubt, to the extent such costs have been paid
by Party A to Party B pursuant to Section 2(e) or Section 11 of the
Agreement, such costs will not be included in the calculation of amounts payable
pursuant to this provision of the Schedule.

(B) If, pursuant to Part 5(b)(iii)(A) of this Schedule, Party B replaces this
Transaction with a substantially similar transaction (the “Successor Swap”)
with a Successor Counterparty (instead of an assignment or transfer of Party A’s
rights and obligations hereunder):

(1) the Calculation Agent shall calculate an amount that would be payable to
(or by) Party B assuming (w) the Transaction and any hedge transaction were
Terminated Transactions, (x) that Section 6(e)(i)(3) of the 1992 ISDA
Multicurrency-Cross Border Master Agreement were applicable, (y) that Party A was
the Defaulting Party and (z) that the Early Termination Date was the date the
Successor Counterparty entered into such replacement transaction (the “Successor
Swap Amount”); and

(2) the payment by Party A or the receipt from the Successor Counterparty of
the Successor Swap Amount in accordance with Part 5(b)(iii)(B)(1) of this Schedule
and any amounts determined pursuant to Part 5(b)(iii)(A)(4) of this Schedule shall
constitute satisfaction in full of the respective obligations of Party B to Party A
and of Party A to Party B in respect of the termination of the Transaction and any
hedge transaction.

(iv) In the event that an Event of Default or Termination Event has occurred and Party B is
the sole Defaulting Party or sole Affected Party, notwithstanding the provisions of
Sections 6(a) and 6(b) of this Agreement, Party A may send notice to Party B
declaring such Event of Default or Termination Event and the Early Termination Date shall be
deemed to be the later of (i) the date upon which the last Mortgage Loan is sold pursuant to
Section 11.2 of the Mortgage Loan Purchase and Servicing Agreement and (ii) the date
on which all principal and interest due on the Notes is paid (the later of such two dates,
the “Program Termination Date”).

(v) Notwithstanding the provisions in this Agreement, if an Early Termination Date is
designated, the Early Termination Date shall occur on the Program Termination Date (subject
to transfer provisions in Part 5(b)(iii)(A) above).

(c) No Bankruptcy Petition. Prior to the date that is one year and one day after the payment in
full of any Note issued by Party B (or such longer preference period as may be in effect at such
time), Party A, in its capacity as Swap Counterparty, shall not institute against, or join any
other person in instituting against, Party B, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any federal or state bankruptcy
or similar law. Nothing herein shall prevent Party A from participating in any such proceeding
once commenced by another entity.

(d) Transfer. Section 7 is hereby amended by:

	 	(i)	 	adding the words “(and notice of the transferee to)” after the word “of” in the
third line thereof, and (ii) adding the words “(subject to providing three Business
Days prior written notice of the transferee to the other party and to each Rating
Agency)” after the word “transfer” in the fourth and seventh line thereof.

	 	(ii)	 	adding at the end thereof:

“Any party making any such transfer shall deliver to the other party and the
Servicer written confirmation from each Rating Agency that such transfer will not
result in the then-current rating of any series of the Notes outstanding being
withdrawn or lowered.”

	 	(iii)	 	adding a new paragraph 7(c) reading as follows:

“(c) Notwithstanding anything to the contrary set forth in the Agreement, Party A
agrees to the assignment to Deutsche Bank Trust Company Americas as Collateral Agent
under the Security Agreement, for the benefit of the Secured Parties under the
Security Agreement of, and the grant to the Collateral Agent for the benefit of each
Secured Party of a security interest in, the rights of Party B under this Agreement
and the Confirmation. Party A further consents to and agrees that in connection
with the realization of any of the Secured Parties’ rights (including Party A’s
rights) under the Security Agreement, that the Collateral Agent, on behalf of the
Secured Parties (including Party A) is entitled to, and shall have, all rights of
Party B hereunder.

(e) Eligible Contract Participant. Party A and Party B represent to the other that on the date
hereof and on each date on which a Transaction is entered into between them that: (a) It is an
“eligible contract participant” within the meaning of Section 1a(12) of the Commodity Exchange Act,
as amended; (b) this Agreement and each Transaction is subject to individual negotiation by each
Party; and (c) neither this Agreement nor any Transaction will be executed or traded on a “trading
facility” within the meaning of Section 1a(33) of the Commodity Exchange Act, as amended.

(f) WAIVER OF RIGHT TO TRIAL BY JURY. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY TRANSACTION.

(g) Amendments. Section 9(b) of this Agreement is hereby amended by adding the following
after the word “system” in the last line thereof:

“, provided, however, that each Rating Agency shall receive prior written notice of all such
amendments, modifications or waivers; provided, further, that each material amendment,
modification or waiver shall require, prior to its effectiveness, the written confirmation
of each Rating Agency that such material amendment, modification or waiver shall not result
in the then-current rating of any series of Notes outstanding being withdrawn or lowered.”

(h) Section 2. Section 2(e) of the Agreement shall not apply to payments to be made by
Party B.

(i) Section 5. Section 5(a)(i) of the Agreement is hereby amended by deleting the words
“the party” in the last line thereof and replacing such language with the following:

“the Collateral Agent and the party, provided that any payment default may be cured on
behalf of Party B by the Collateral Agent prior to designation of an Early Termination Date
(but the Collateral Agent shall have no obligation to do so)”

(j) Expenses. Section 11 of the Agreement is hereby amended by deleting the words “A
Defaulting Party” in the first line thereof and “the Defaulting Party” in the fourth line thereof
and replacing such language with the following:

“Party A, to the extent that it is a Defaulting Party,”

(k) Relationship Between Parties. With respect to each Transaction hereunder:

	 	(i)	 	Non-Reliance. Each party represents and warrants that it is acting for
its own account, and it has made its own independent decisions to enter into that
Transaction and as to whether that Transaction is appropriate or proper for it is based
upon its own judgment and upon advice from such advisors 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. It has not received from the other party any assurance or guarantee
as to the expected results of that Transaction.

	 	(ii)	 	Evaluation and Understanding. It is capable of evaluating 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 financial and other risks of that
Transaction.

	 	(iii)	 	Status of Parties. The other party is not acting as a fiduciary or an
advisor for it in respect of that Transaction.

(l) Amendment of the Program Documents. Party B agrees that it shall not make any amendment to any
Program Document without the written consent of Party A (such consent not to be unreasonably
withheld) provided that this parenthetical shall not apply to any amendments to this Agreement.

(m) Limited Recourse to Party B. Notwithstanding anything to the contrary contained herein, all
obligations of Party B under Section 2(a)(i) of this Agreement shall be payable by Party B
only on a Payment Date or Interim Payment Date (each as defined in the related Confirmation of the
Transaction) and only to the extent of funds available therefor in the Collateral Account as
provided in Section 2.01, Section 6.03 or Section 6.06 of the Security
Agreement and, to the extent such funds are not available or are insufficient for the payment
thereof, shall not constitute a claim against Party B to the extent of such unavailability or
insufficiency until such time as Party B has assets sufficient to pay such prior deficiency. This
paragraph shall survive the termination of this Agreement but in all cases shall expire
concurrently with the earlier to occur of (i) the restriction specified in Part 5(c) and (ii) the
commencement of any bankruptcy, insolvency or liquidation proceeding or other proceeding under any
Federal or state bankruptcy law with respect to Party B.

(n) No Recourse. The obligations of Party B hereunder are solely the obligations of Party B and
no recourse shall be had with respect to this Agreement, any of the obligations of Party B
hereunder or for the payment of any fee or other amount payable hereunder or for any claim based
on, arising out of or relating to any provision of this Agreement against any member, stockholder,
employee, officer, director, incorporator, trustee, affiliate, agent or servant of Party B except
to the extent that any such claim arises as a result of the intentional misconduct, fraud, bad
faith and/or gross negligence of such persons. The provisions of this paragraph shall survive the
termination of this Agreement.

(o) Notice of Payment Amounts. The Calculation Agent shall provide (via email or facsimile) Party
A with estimates of payments to be made by each of Party A and Party B (including a breakdown of
the components of each payment) under the Agreement on the next following Payment Date, Interim
Payment Date and Party A Accrued Interest Payment Date (as defined in the Confirmation). Such
estimates shall be provided (i) by 4:00 p.m. (New York City time) of the second Business Day prior
to each such monthly Payment Date and Party A Accrued Interest Payment Date and (ii) by 4:00 p.m.
(New York City time) of the first Business Day prior to each such Interim Payment Date. Final
confirmation of the actual amounts to be wired shall be provided (via e-mail or facsimile and
confirmed by telephone) by no later than 12:00 noon (New York City time) on each such Interim
Payment Date and on the Business Day immediately prior to each such monthly Payment Date and Party
A Accrued Interest Payment Date.

(p) Reduction of Swap Counterparty’s Rating. In the event that Party A’s short-term senior
unsecured deposit rating is withdrawn or reduced below “A-l+” by S&P or “P-1” by Moody’s and, if
rated by Fitch, “F1+” by Fitch Party A is obligated to immediately provide written notice thereof
to Party B and, within 30 days after such rating withdrawal or reduction (if such withdrawal or
reduction is continuing), to either, in its discretion (i) establish any arrangement with Moody’s
or S&P, as the case may be, including obtaining a backup swap counterparty, (ii) obtain replacement
swap agreements with terms substantially the same as this Agreement, or (iii) execute and deliver
and post collateral to Party B the Credit Support Document, in any such case such that Party A
shall receive written confirmation that the rating of each series of Notes outstanding by the
applicable rating agency will not be withdrawn or reduced below the applicable rating of each
series of Notes outstanding existing immediately prior to such downgrade, as applicable; provided,
however, that the preceding provisions may be modified, without the consent of the holders of the
Notes, if the Member and the Collateral Agent shall have been provided with a letter from Moody’s
and S&P to the effect that any such modification will not adversely affect the ratings on all
series of Notes outstanding. Any costs associated with obtaining a replacement swap agreement or
establishing any other arrangement satisfactory to the applicable rating agency will be borne by
Party A. No failure on the part of Party A to effect any of the alternatives specified above shall
constitute an Event of Default with respect to Party A. Rather, following the 30-day period, a
Termination Event shall be deemed to have occurred with Party A as the Affected Party.

(q) Additional Swap Counterparties. To the extent that Party B enters into swap agreements similar
to this Transaction with other additional swap counterparties, such swap counterparties will be
required to maintain short-term credit ratings of “A-1+” from S&P and “P-1” from Moody’s and, if
rated by Fitch, “F1+” by Fitch and long-term credit ratings of at least “AA-” from S&P and “Aa3”
from Moody’s and, if rated by Fitch, “AA-” by Fitch.

(r) Additional Definitions. Capitalized terms used in this Schedule and not otherwise defined
herein shall have the meaning set forth in the Confirmation or Definitions List attached as
Schedule I to the Security Agreement. Additionally, the capitalized terms set forth below shall
have the following meanings:

“Mortgage Loan Purchase and Servicing Agreement” shall mean that certain Amended and
Restated Mortgage Loan Purchase and Servicing Agreement, dated as of December 15, 2005
between Party B, as Purchaser and New Century Mortgage Corporation, as Seller and Servicer,
as amended from time to time.

“Security Agreement” shall mean that certain Amended and Restated Security
Agreement, dated as of December 15, 2005, among Party B, as the Company and Deutsche Bank
Trust Company Americas, as Collateral Agent, as amended from time to time.

(s) Consent to Recording. The parties agree that each may electronically record all telephonic
conversations between marketing and trading personnel in connection with this Agreement and that
any such recordings may be submitted in evidence in any Proceedings relating to this Agreement.

(t) Further Representations of Party B:

	 	(i)	 	Assuming the due authorization, execution and delivery thereof by the other
parties thereto, each of the Program Documents to which Party B is a party constitutes
the legal, valid and binding obligations of Party B, enforceable against Party B in
accordance with the terms thereof, subject to applicable bankruptcy, insolvency and
similar laws or legal principles affecting creditors’ rights generally, and subject, as
to enforceability, to general principles of equity regardless of whether enforcement is
sought in a proceeding in equity or at law.

	 	(ii)	 	The Program Documents to which Party B is a party are in full force and effect
on the date hereof and there have been no amendments or waivers or modifications of any
of the terms thereof since the original execution and delivery of the Program Documents
to which Party B is a party.

	 	(iii)	 	To the best of its knowledge, no event of default (or event which would, with
the passage of time or the giving of notice, constitute an event of default) has
occurred and is continuing under any of the Program Documents to which Party B is a
party.

(u) No Set-off. Other than as provided in Section 2(c) of this Agreement, all payments
hereunder shall be made without set-off or counterclaim. Section 6(e) of the Agreement is
amended by the deletion of the following sentence: “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.”

(v) Severability. Any provision of this Agreement which is prohibited, unenforceable or not
authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition, unenforceability or non-authorization without invalidating the remaining provisions
hereof or affecting the validity, enforceability or legality of such provision in any other
jurisdiction so long as this Agreement as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter of this Agreement and the
deletion of such portion of this Agreement will not substantially impair the respective benefits
and expectations of the parties to this Agreement. The parties shall endeavor, in good faith
negotiations, to replace the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

(w) Existing Agreement. This Agreement amends and supersedes the ISDA Agreement between the
parties dated as of September 5, 2003. Any Swap entered into between the parties under the ISDA
Agreement shall be deemed to be governed by this Agreement. Any such Swap shall be deemed to
constitute a Transaction and any document or other confirming evidence in respect of any such Swap
shall be deemed to constitute a Confirmation for purposes of this Agreement.

(x) No Recourse to Owner Trustee. It is expressly understood and agreed by the parties hereto that
(a) this Agreement is executed and delivered by Christiana Bank & Trust Company, not individually
or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and
authority conferred and vested in it as trustee, (b) each of the representations, undertakings and
agreements herein made on the part of Party B is made and intended not as a personal
representation, undertaking and agreement by Christiana Bank & Trust Company but is made and
intended for the purpose of binding only Party B, (c) nothing herein contained shall be construed
as creating any liability on Christiana Bank & Trust Company, individually or personally, to
perform any covenant either expressed or implied contained herein, all such liability, if any,
being expressly waived by the parties hereto and by any Person claiming by, through or under the
parties hereto and (d) under no circumstances shall Christiana Bank & Trust Company be personally
liable for the payment of any indebtedness or expenses of Party B or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by Party B under
this Agreement or any other related documents.

1

The parties executing this Schedule have executed the Agreement and have agreed as to
the contents of this Schedule.

CITIBANK N.A.

By: /s/ Yvonne Loud

Name: Yvonne Loud

Title: Vice President

VON KARMAN FUNDING TRUST

By: Christiana Bank & Trust Company, as Owner Trustee

By: /s/ James M. Young

Name: James M. Young

Title: Assistant Vice President

2

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