Document:

SMH Varitek Note Extension and Amendment

  
 Exhibit 10.38

  
 EXTENSION AND AMENDMENT AGREEMENT 
  
 WITNESSETH: 
  
 WHEREAS, the secured promissory note of Varitek Industries, Inc. (n/k/a
Remote Knowledge, Inc.) payable to SMH Varitek, LLC dated November 27, 2002 (the “Promissory Note”) and the related Security Agreement, Guaranty, Stock Pledge Agreement and Stockholders’ Agreement dated even date therewith require the
repayment of the principal of said note to the holder, SMH Varitek, LLC on or about November 27, 2003 (“Maturity Date”); and 
  
 WHEREAS, the Promissory Note is convertible under certain circumstances in accordance with this terms on or before the Maturity Date; and 
  
 WHEREAS, the events that would result in a conversion of the principal of the
Promissory Note have not yet closed but are expected to close within a reasonably short period of time subsequent to the Maturity Date and the parties hereto would prefer to permit the conversion of the principal amount of the Promissory Note.

  
 NOW THEREFORE, in consideration of Ten Dollars ($10.00) and
other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows: 
  
 1. Extension of the Maturity Date. The Maturity Date of the above referenced Promissory Note shall be extended until January 27, 2004 or to such
other subsequent date that may be agreed to by all of the parties in writing. 
  
 2. Universal Amendment. This new definition of the Maturity Date shall apply to all of the constituent documents regarding the Promissory Note and no default shall result under the Promissory Note or any of the
other constituent documents so long as payment or conversion of the Promissory Note is made in accordance with the terms of the Note as amended hereby. 
  
 3. All Other Terms. All other terms of the Promissory Note and the constituent documents shall remain as is except as amended by necessity to
comport with the revised definition of the Maturity Date set forth herein. 
  
 Dated this 29th day of November 2003. 
  

	 SMH VARITEK LLC, a Delaware
 limited liability company

		
	By:	 	 /s/ Richard C. Webb

	 	 	 
	 Richard C. Webb, Manager

	 Print Name and Authority

  

 1 

	 Remote Knowledge, Inc., a
 Delaware corporation

		
	By:	 	 /s/ Randy S. Bayne

	 	 	     Randy S. Bayne, President and
         Chief Executive Officer
         (f/ka Varitek Industries, Inc.)

  

 2Master Purchase Agreement

 EXHIBIT 10.1 
  
 MASTER REPURCHASE AGREEMENT 
  

Dated as of December 2, 2003 
  
 BETWEEN: 
  
 Bank of America, N.A., as buyer (“Buyer”, which term shall include any “Principal” as defined and provided for in Annex I), or as agent pursuant hereto (“Agent”), and 
  
 NC Capital Corporation, as seller (“Seller”). 
  

	1.	APPLICABILITY 

  
 Buyer shall, upon the terms and conditions set forth herein, enter into this transaction in which Seller transfers to Buyer Eligible Assets against the
transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller such Purchased Assets at a date certain, against the transfer of funds by Seller. The transaction shall be referred to herein as the “Transaction”,
and, unless otherwise agreed in writing, shall be governed by this Agreement. 
  

	2.	DEFINITIONS AND INTERPRETATION 

  
 a. Defined Terms. 
  
 “Additional Purchased Assets” shall have the meaning assigned thereto in Section 6(a) hereof. 
  
 “Affiliate” means, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition, “control” means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting equity, by contract or otherwise. 
  
 “Agent” means Bank of America, N.A. or any successor. 
  
 “Agreement” means this Master Repurchase Agreement, as it may be amended, supplemented or otherwise modified from time to time.

  
 “Borrower” means the obligor or obligors on a
Note, including any Person that has acquired the related collateral and assumed the obligations of the original obligor or obligors under the Note. 
  
 “Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day upon which the New York Stock Exchange, the Federal
Reserve Bank of New York or the Custodian is obligated by law or executive order to be closed. 
  

 “Buyer’s Margin Amount” means with respect to the Transaction as of any date of
determination, the amount obtained by application of Buyer’s Margin Percentage to the Repurchase Price for such Transaction as of such date. 
  
 “Buyer’s Margin Percentage” shall have the meaning assigned thereto in the Side Letter. 
  
 “Change in Control” shall mean the acquisition by any
Person, or two or more Persons acting in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) of outstanding shares of voting stock of an entity at
any time if after giving effect to such acquisition such Person or Persons owns fifty percent (50%) or more of such outstanding voting stock. 
  
 “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule
or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by Buyer (or any Affiliate of Buyer) with any request, guideline or directive (whether or not having the
force of law) of any Governmental Authority made or issued after the date of this Agreement. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 “Collateral” shall have the meaning assigned thereto in Section 8 hereof. 
  
 “Computer Medium” means a computer or other electronic medium generated by or on behalf of Seller and
delivered or transmitted to Buyer and Custodian which provides information relating to the Purchased Assets, including the identity of the related servicer with respect to each Loan and the information set forth in the Loan Schedule, in a format
reasonably acceptable to Buyer. 
  
 “Custodian”
means Deutsche Bank National Trust Company, or its successors and permitted assigns. 
  
 “Custody Agreement” means the Custodial Agreement, dated as of [May 13, 2002] among Seller, Buyer, NCMC and Custodian. 
  
 “Default” means any event, that, with the giving of notice or the passage of time or both, would constitute
an Event of Default. 
  
 “Default Rate” means, as
of any date of determination, the lesser of (i) the Pricing Rate plus 4% and (ii) the maximum rate permitted by applicable law. 
  
 “Effective Date” shall mean the date set forth on the top of the first page of this Agreement. 
  
 “Eligible Asset” shall have the meaning assigned thereto in
the Side Letter. 
  
 “Eligible Loan” shall have
the meaning assigned thereto in the Side Letter. 
  
 “Event of Default” shall have the meaning assigned thereto in Section 18 hereof. 
  

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 “GAAP” shall mean generally accepted accounting principles in the United States of
America in effect from time to time. 
  
 “Governmental
Authority” shall mean any nation or government, any state or other political subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory or administrative functions over Seller or Guarantors. 
  
 “Guarantee” means, as to any Person, any obligation of such
Person directly or indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the payment of any Indebtedness of any other Person. 
  
 “Guarantors” means each of NCFC and NCMC, or any successors thereto. 
  
 “Guaranty” means the Guaranty Agreement of the Guarantors in
favor of the Buyer, dated as of December 2, 2003. 
  
 “Hedge Counterparty”: A Person (i) (A) with long-term and commercial paper or short-term deposit ratings of “P-1” by Moody’s Investors Service and “A-1” by Standard & Poor’s and (B) which
shall agree in writing that, in the event that any of its long-term or commercial paper or short-term deposit ratings cease to be at or above “A-2” by Moody’s and “A” by Standard & Poor’s, it shall secure its
obligations in accordance with the request of the Buyer or Buyer shall have the option to treat such failure as an Early Termination Event (as defined in the ISDA Master Agreement) by such Hedge Counterparty, and (ii) that has entered into a Hedge
Instrument. 
  
 “Hedge Instrument” means any
interest rate cap agreement, interest rate floor agreement, interest rate swap agreement or other interest rate hedging agreement entered into by the Seller or a Guarantor with a Hedge Counterparty that relates to or applies to the Purchased Assets
or assets similar to the Purchased Assets. 
  
 “Income” means, with respect to any Purchased Asset at any time, any principal and/or interest thereon and all dividends, sale proceeds and other collections and distributions thereon, but not including any commitment fees,
origination fees and/or servicing fees (with respect to third party servicers that are not an Affiliate of Seller or any Guarantor). 
  
 “Indebtedness” shall mean, for any Person: (a) all obligations for borrowed money; (b) obligations of such Person to pay the deferred
purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business so long as such trade accounts payable are payable
and paid within ninety (90) days of the date the related invoice is received for the respective goods delivered or the respective services rendered; (c) indebtedness of others secured by a lien on the Property of such Person, whether or not the
respective indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments issued for account of such Person; (e) capital lease obligations of
such Person; (f) obligations of such Person under repurchase agreements or like arrangements; (g) indebtedness of others guaranteed on a recourse basis by such Person; (h) all obligations of such Person incurred in connection with the acquisition or
carrying of fixed assets by such Person; (i) indebtedness of general 

  

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partnerships of which such Person is a general partner; and (j) any other contingent liabilities of such Person. 
  
 “Interim Servicer” means (i) NCMC, or (ii) any other
servicer approved by Buyer in its sole discretion exercised in good faith. 
  
 “Investment Company Act” means the Investment Company Act of 1940, as amended, including all rules and regulations promulgated thereunder. 
  
 “Jumbo Loan” means a Loan with an original unpaid principal balance greater than [$350,000]. 
  
 “LIBOR” shall mean, for each day, the rate determined by
the Buyer on such date (or, in the event such day is not a Business Day, the prior Business Day) on the basis of the offered rate for one-month or overnight U.S. dollar deposits (as applicable), as such rate appears on Telerate Page 3750 as of 11:00
a.m. (London time) on such date; provided that if such rate does not appear on Telerate Page 3750, the rate for such date will be determined on the basis of the offered rates of the Reference Banks for one-month or overnight U.S. dollar deposits (as
applicable), as of 11:00 a.m. (London time) on such date. In such event, the Buyer will request the principal London office of each of the Reference Banks to provide a quotation of its rate. If on such date, two or more Reference Banks provide such
offered quotations, LIBOR shall be the arithmetic mean of all such offered quotations (rounded to the nearest whole multiple of 1/16%). If on such date, fewer than two Reference Banks provide such offered quotations, LIBOR shall be the higher of (i)
LIBOR as determined on the previous LIBOR determination date and (ii) the Reserve Interest Rate. With respect to each transaction, on the related Purchase Date and for each day that the Transaction is outstanding, LIBOR shall be calculated at
the overnight rate unless otherwise elected by the Seller in writing on the related Purchase Date. 
  
 “Loan” means (i) a first or second lien single family (one-to-four units) non-conforming residential loan, (ii) such other type of loan,
lease or other receivable as shall be agreed upon by the parties as evidenced by Appendix A to the Custody Agreement, as amended or supplemented by mutual agreement of the parties, or (iii) any interest in, or secured by, any such loan, lease or
other receivable. 
  
 “Loan Documents” shall have
the meaning assigned thereto in the Custody Agreement. 
  
 “Loan File” shall have the meaning assigned thereto in the Custody Agreement. 
  
 “Loan Schedule” means the list of Loans delivered by a Guarantor or the Seller to Buyer and Custodian together with the Transaction
Notice and attached by the Custodian to the related Trust Receipt. Each Loan Schedule shall set forth as to each Loan the related Borrower name, the address of the related Mortgaged Property and the outstanding principal balance of the Loan as of
the initial Purchase Date, together with any other information specified by Buyer from time to time in good faith. 
  
 “Margin Call” As defined in Section 6(a). 
  

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 “Margin Deficit” shall have the meaning assigned thereto in Section 6(a) hereof.

  
 “Market Value” means (i) with respect to any
Purchased Asset that is an Eligible Asset, as of any date of determination, the value ascribed to such asset by Buyer in its sole discretion, and (ii) with respect to a Purchased Asset that is not an Eligible Asset, zero. 
  
 “Master Contribution Agreement” means the Master
Contribution Agreement, dated as of December 2, 2003 between NCMC and Seller. 
  
 “Master Netting Agreement” means the Master Collateral Security and Master Netting Agreement dated as of December 2, 2003 among Buyer and certain Affiliates and the Guarantors and certain Affiliates.

  
 “Material Adverse Change” means, with respect
to a Person, any material adverse change in the business, condition (financial or otherwise), operations, performance, properties or prospects taken as a whole or prospects of such Person. 
  
 “Material Adverse Effect” means (a) a Material Adverse
Change with respect to a Guarantor or such Guarantor and its Affiliates that are party to any Program Document taken as a whole; (b) a material impairment of the ability of a Guarantor or any Affiliate that is a party to any Program Document to
perform under any Program Document and to avoid any Event of Default; (c) a material adverse effect upon the legality, validity, binding effect or enforceability of any Program Document against either Guarantor or any Affiliate that is a party to
any Program Document; or (d) a material adverse effect upon the value or marketability of a material portion of the Purchased Assets. 
  
 “Maximum Aggregate Purchase Price” means the amount set forth in Section 37 hereof. 
  
 “Mortgage” means a mortgage, deed of trust, or other
instrument that creates a lien on the related Mortgaged Property and secures a Note. 
  
 “Mortgaged Property” means, with respect to a Loan, the related Borrower’s fee interest in real property or leasehold interest in real property and all other collateral securing repayment of the
debt evidenced by the related Note. 
  
 “NCFC”
means New Century Financial Corporation, or any successor thereto. 
  
 “NCMC” means New Century Mortgage Corporation, or any successor thereto. 
  
 “Note” means, with respect to any Loan, the related promissory note together with all riders thereto and amendments thereof or other
evidence of indebtedness of the related Borrower. 
  
 “Obligations” means (a) all of Seller’s and Guarantors’ obligation to pay the Repurchase Price on the Repurchase Date and other obligations and liabilities of Seller and Guarantors to Buyer, its Affiliates or
Custodian arising under, or in connection with, the Program Documents or directly related to the Purchased Assets, whether now existing or hereafter arising; (b) any and all sums paid by Buyer or on behalf of Buyer pursuant to the Program Documents
in order to preserve any 

  

 5 

 
Purchased Asset or its interest therein; (c) in the event of any proceeding for the collection or enforcement of any of Seller’s or Guarantors’
indebtedness, obligations or liabilities referred to in clause (a), the reasonable expenses of retaking, holding, collecting, preparing for sale, selling or otherwise disposing of or realizing on any Purchased Asset, or of any exercise by Buyer or
such Affiliate of its rights under the Program Documents, including without limitation, reasonable attorneys’ fees and disbursements and court costs; and (d) all of Seller’s and Guarantor’s obligations to Buyer, Custodian or any other
Person pursuant to the Program Documents. 
  
 “Person” shall mean any legal person, including any individual, corporation, partnership, association, joint-stock company, trust, limited liability company, unincorporated organization, governmental entity or other entity
of similar nature. 
  
 “Price Differential”
means, with respect to the Transaction as of any date, the aggregate amount obtained by daily application of the Pricing Rate for the Transaction to the Purchase Price on a 360-day-per-year basis for the actual number of days during the period
commencing on (and including) the Purchase Date and ending on (but excluding) the Repurchase Date (reduced by any amount of such Price Differential in respect of such period previously paid by Seller to Buyer) with respect to the Transaction.

  
 “Pricing Rate” means the per annum percentage
rate for determination of the Price Differential as set forth in the Side Letter. 
  
 “Prime Rate” means a rate set by Buyer based upon various factors including Buyer’s costs and desired return, general economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate announced by Buyer shall take effect at the opening of business on the day specified in the public announcement of such change. 
  
 “Principal” shall have the meaning given to it in Annex I.

  
 “Program Documents” means this Agreement, the
Custody Agreement, any Servicing Agreement, the Master Netting Agreement, the Guaranty, any assignment of Hedge Instrument, the Master Contribution Agreement, the Side Letter and any other agreement entered into by Seller and/or Guarantor, on the
one hand, and Buyer or one of its Affiliates (or Custodian on its behalf) on the other, in connection herewith or therewith. 
  
 “Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible. 
  
 “Purchase Date” means the date on
which Purchased Assets are to be transferred by Seller to Buyer. 
  
 “Purchase Price” shall have the meaning assigned thereto in the Side Letter. 
  
 “Purchased Assets” means, with respect to a Transaction, the Loans set forth on the related Loan Schedule, together with the related
Records, Servicing Rights, Seller’s or Guarantor’s rights under any related Hedge Instruments (which interest in Hedge Instruments shall be pro rata and 

  

 6 

 
subject to rights of other parties holding security interest therein), and other Collateral, and all instruments, chattel paper, and general intangibles
comprising or relating to all of the foregoing. The term “Purchased Assets” with respect to the Transaction at any time also shall include Additional Purchased Assets delivered pursuant to Section 6(a) hereof. 
  
 “Records” means all instruments, agreements and other books,
records, reports and data generated by other media for the storage of information maintained by Seller, Guarantor, any of their Affiliates or agents, or their servicer or custodian with respect to a Purchased Asset. Records shall include the Notes,
any Mortgages, the Loan Files and any other instruments necessary to document or service a Loan that is a Purchased Asset, including, without limitation, the complete payment and modification history of each Loan that is a Purchased Asset.

  
 “Reference Banks” Any leading banks selected
by the Agent which are engaged in transactions in Eurodollar deposits in the international Eurocurrency market with an established place of business in London. 
  

“Repurchase Date” shall mean December 19, 2003 or the earlier date determined by application of Section 19. 
  
 “Repurchase Price” means the price at which Purchased Assets
are to be transferred from Buyer to Seller upon termination of the Transaction, which will be determined in each case (including Transactions terminable upon demand) as the sum of the Purchase Price and the Price Differential as of the date of such
determination. 
  
 “Reserve Interest Rate”
means with respect to any LIBOR determination date, the rate per annum that the Agent determines to be either (i) the arithmetic mean (rounded to the nearest whole multiple of 1/16%) of the one-month or overnight U.S. dollar lending rates (as
applicable) which New York City banks selected by the Agent are quoting on the relevant LIBOR determination date to the principal London offices of leading banks in the London interbank market or (ii) in the event that the Agent can determine no
such arithmetic mean, the lowest one-month or overnight U.S. dollar lending rate (as applicable) which New York City banks selected by the Agent are quoting on such LIBOR determination date to leading European banks. 
  
 “Servicing Agreement” means any agreement (other than the
Custody Agreement) giving rise or relating to Servicing Rights with respect to a Purchased Asset, including any assignment or other agreement relating to such agreement. 
  
 “Servicing Rights” means contractual, possessory or other rights of Seller or any other Person arising
under a Servicing Agreement, the Custody Agreement or otherwise, to administer or service a Purchased Asset or to possess related Records. 
  
 “Side Letter” means the pricing side letter, dated as of December 2, 2003, among Seller, Guarantors and Buyer, as the same may be
amended, supplemented or modified from time to time. 
  
 “Subsidiary” means, with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to
elect a majority of the board of directors or other persons performing 

  

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similar functions of such corporation, partnership or other entity (irrespective of whether or not at the time securities or other ownership interests of any
other class or classes of such corporation, partnership or other entity shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more
Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person. 
  
 “Substitute Assets” has the meaning assigned thereto in Section 16(a). 
  
 “Termination Date” has the meaning assigned thereto in Section 27. 
  
 “Transaction” has the meaning assigned thereto in Section 1. 
  
 “Transaction Notice” means a written request of Seller to
enter into a Transaction, in the form attached to the Custody Agreement which is delivered to Buyer and Custodian. 
  
 “Trust Receipt” means a Trust Receipt and Certification as defined in the Custody Agreement. 
  
 “Underwriting Guidelines” means NCMC’s underwriting
guidelines in effect as of the date of this Agreement, which have been approved in writing by Buyer, as the same may be amended from time to time in accordance with terms of this Agreement. 
  
 “Uniform Commercial Code” means the Uniform Commercial Code
as in effect on the date hereof in the State of New York or the Uniform Commercial Code as in effect in the applicable jurisdiction. 
  
 “Wet Funded Loan” means a Loan for which, as of the Purchase Date, the documents in the related Loan File has not been delivered to the
Custodian, and thereafter, each date until the documents in the related Loan File has been delivered to the Custodian. 
  
 “Wet Funding Package” shall have the meaning assigned thereto in the Custody Agreement. 
  
 b. Capitalized terms used but not defined in this Agreement shall have the
meanings assigned thereto in the Custody Agreement. 
  
 c.
Interpretation. 
  
 Headings are for convenience only and do
not affect interpretation. The following rules of this subsection (c) apply unless the context requires otherwise. The singular includes the plural and conversely. A gender includes all genders. Where a word or phrase is defined, its other
grammatical forms have a corresponding meaning. A reference to a subsection, Section, Annex or Exhibit is, unless otherwise specified, a reference to a Section of, or annex or exhibit to, this Agreement. A reference to a party to this Agreement or
another agreement or document includes the party’s successors and permitted substitutes or assigns. A reference to an agreement or document is to the agreement or document as amended, modified, novated, supplemented or replaced, except to the
extent prohibited by any Program Document. A reference to legislation or to a provision of legislation includes a modification or re-enactment of it, a legislative provision substituted for it and a regulation or statutory instrument issued

  

 8 

 
under it. A reference to writing includes a facsimile transmission and any means of reproducing words in a tangible and permanently visible form. A
reference to conduct includes, without limitation, an omission, statement or undertaking, whether or not in writing. An Event of Default subsists until it has been waived in writing by the Buyer or has been timely cured. The words
“hereof”, “herein”, “hereunder” and similar words refer to this Agreement as a whole and not to any particular provision of this Agreement. The term “including” is not limiting and means “including
without limitation.” In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”, the words “to” and “until” each mean “to but
excluding”, and the word “through” means “to and including.” This Agreement may use several different limitations, tests or measurements to regulate the same or similar matters. All such limitations, tests and measurements
are cumulative and shall each be performed in accordance with their terms. Unless the context otherwise clearly requires, all accounting terms not expressly defined herein shall be construed, and all financial computations required under this
Agreement shall be made, in accordance with GAAP, consistently applied. References herein to “fiscal year” and “fiscal quarter” refer to such fiscal periods of the Seller. Except where otherwise provided in this Agreement any
determination, statement or certificate by the Buyer or an authorized officer of the Buyer provided for in this Agreement is conclusive and binds the parties in the absence of manifest error. A reference to an agreement includes a security interest,
guarantee, agreement or legally enforceable arrangement whether or not in writing related to such agreement. A reference to a document includes an agreement (as so defined) in writing or a certificate, notice, instrument or document, or any
information recorded in computer disk form. Where the Seller or a Guarantor is required to provide any document to the Buyer under the terms of this Agreement, the relevant document shall be provided in writing or printed form unless the Buyer
requests otherwise. At the request of the Buyer, the document shall be provided in computer readable format or both printed and computer readable format. This Agreement is the result of negotiations among and has been reviewed by counsel to the
Buyer, Guarantors and the Seller, and is the product of all parties. In the interpretation of this Agreement, no rule of construction shall apply to disadvantage one party on the ground that such party proposed or was involved in the preparation of
any particular provision of this Agreement or this Agreement itself. Except where otherwise expressly stated the Buyer may give or withhold, or give conditionally, approvals and consents, and may form opinions and make determinations at its absolute
discretion. Any requirement of good faith, discretion or judgment by the Buyer shall not be construed to require Buyer to request or await receipt of information or documentation not immediately available from or with respect to the Seller,
Guarantor, a servicer of the Purchased Assets, any other Person or the Purchased Assets themselves. 
  

	3.	THE TRANSACTION 

  
 a. Seller shall repurchase Purchased Assets from Buyer on the Repurchase Date at the Repurchase Price. This obligation to repurchase subsists without
regard to any prior or intervening liquidation or foreclosure with respect to any Purchased Asset. Seller is obligated to obtain the Purchased Assets from Buyer or its designee (including the Custodian) at Seller’s expense on (or after) the
Repurchase Date. 
  
 b. Reserved. 
  

 9 

 c. Reserved. 
  

	4.	ENTERING INTO THE TRANSACTION, TRANSACTION NOTICE 

  
 Under the terms and conditions of the Program Documents, Buyer hereby agrees to enter into the Transaction with a Purchase Price up to the Maximum
Aggregate Purchase Price. On the Effective Date, Seller or a Guarantor shall (i) request that Buyer enter into a Transaction by furnishing to Buyer and Custodian a Transaction Notice and Loan Schedule, (ii) deliver to Buyer a Computer Medium for the
related Purchased Assets and (iii) deliver to Custodian the Loan File or Wet Funding Package for each Loan subject to the Transaction. 
  

	5.	PAYMENT AND TRANSFER 

  
 Unless otherwise agreed, all transfers of funds hereunder shall be in immediately available funds and all Purchased Assets transferred shall be
transferred to the Custodian pursuant to the Custody Agreement. Any Repurchase Price or Price Differential received by Buyer after 2:30 p.m. noon New York City time shall be applied on the next succeeding Business Day. 
  

	6.	MARGIN MAINTENANCE 

  
 a. If at any time the aggregate Market Value of all Purchased Assets subject to the Transaction is less than the aggregate Buyer’s Margin Amount for
the Transaction (a “Margin Deficit”), then Buyer may by notice to Seller require Seller in the Transaction to transfer to Buyer cash or, at Buyer’s option (and provided Seller has additional Eligible Assets), additional Eligible
Assets (“Additional Purchased Assets”), so that the cash and aggregate Market Value of the Purchased Assets, including any such Additional Purchased Assets, will thereupon equal or exceed such aggregate Buyer’s Margin Amount (such
requirement, a “Margin Call”). 
  
 b. Notice required
pursuant to Section 6(a) may be given by any means provided in Section 35 hereof. Any notice given before 10:00 a.m. New York time on a Business Day shall be satisfied no later than 5:00 p.m. New York time on such Business Day. Any notice given on
or after 10:00 a.m. New York time on a Business Day shall be satisfied no later than 5:00 p.m. New York time on the Business Day following the date of such notice. The failure of Buyer, on any one or more occasions, to exercise its rights hereunder,
shall not change or alter the terms and conditions to which this Agreement is subject or limit the right of Buyer to do so at a later date. Seller, Guarantors and Buyer each agree that a failure or delay by Buyer to exercise its rights hereunder
shall not limit or waive Buyer’s rights under this Agreement or otherwise existing by law or in any way create additional rights for Seller or a Guarantor. 
  

	7.	INCOME PAYMENTS 

  
 Where a particular term of the Transaction extends over the date on which Income is paid in respect of any Purchased Assets subject to the Transaction,
such Income shall be the property of Buyer. Notwithstanding the foregoing, Buyer agrees that prior to the occurrence of an Event of Default, Seller shall be entitled to receive an amount equal to all Income received, whether by 

  

 10 

 
Guarantors, Buyer, Custodian, Interim Servicer or any servicer or any other Person, which is not otherwise received by Seller, in respect of the Purchased
Assets; provided, however, that any income received by or on behalf of Seller while the Transaction is outstanding shall be deemed held by Seller solely in trust for Buyer pending the repurchase on the Repurchase Date. Upon the occurrence of an
Event of Default, the Seller and each Guarantor shall cause all Income to be immediately delivered to the Buyer. 
  

	8.	SECURITY INTEREST 

  
 Seller and Buyer intend that the Transaction hereunder be sales to Buyer of the Purchased Assets and not loans from Buyer to Seller secured by the
Purchased Assets. However, in order to preserve Buyer’s rights under this Agreement in the event that a court or other forum recharacterizes the Transaction hereunder as other than sales, and as security for Seller’s performance of all of
its Obligations, Seller hereby grants Buyer a fully perfected first priority security interest in the following property, whether now existing or hereafter acquired: the Purchased Assets, the related Records, all mortgage guaranties and insurance
relating to such Purchased Assets (issued by governmental agencies or otherwise) and any mortgage insurance certificate or other document evidencing such mortgage guaranties or insurance relating to such Purchased Assets and all claims and payments
thereunder, any purchase agreements or other agreements or contracts relating to or constituting any or all of the foregoing, all “accounts” as defined in the Uniform Commercial Code relating to or constituting any or all of the foregoing,
all other insurance policies and insurance proceeds relating to any Purchased Asset or the related Mortgaged Property, any security account and all rights to Income and the rights to enforce such payments arising from any of the Purchased Assets,
and any and all replacements, substitutions, distributions on or proceeds with respect to any of the foregoing (collectively the “Collateral”). 
  

	9.	CONDITIONS PRECEDENT 

  
 a. As conditions precedent to the Transaction, Buyer shall have received on or before the day of the Transaction the following, in form and substance
satisfactory to Buyer and duly executed by each party thereto (as applicable): 
  
 (i) The Program Documents duly executed and delivered by the parties thereto and being in full force and effect, free of any modification,
breach or waiver; 
  
 (ii) Evidence that all
other actions necessary or, in the opinion of Buyer, desirable to perfect and protect Buyer’s interest in the Purchased Assets and other Collateral have been taken, including, without limitation, duly executed and filed Uniform Commercial Code
financing statements on Form UCC-1; 
  
 (iii) A
certified copy of Seller’s and Guarantors’ consents or corporate resolutions, as applicable, approving the Program Documents and the Transaction, and all documents evidencing other necessary corporate action or governmental approvals as
may be required in connection with the Program Documents; 
  

 11 

 (iv) An incumbency certificate of the secretaries of Seller and Guarantors certifying the
names, true signatures and titles of Seller’s and Guarantors’ representatives duly authorized to request Transactions hereunder and to execute the Program Documents and the other documents to be delivered thereunder; 
  
 (v) An opinion of Seller’s and Guarantors’ counsel
as to such matters as Buyer may reasonably request and in form and substance acceptable to Buyer; 
  
 (vi) A copy of the Underwriting Guidelines certified by an officer of NCMC; 
  
 (vii) [Reserved]; 
  

(viii) All of the conditions precedent in the Guaranty shall have been satisfied; and 
  
 (ix) Any other documents reasonably requested by Buyer.

  
 (x) Buyer’s legal, tax, business and
environmental due diligence of the Seller and Guarantors each shall have been completed to the satisfaction of the Buyer. 
  
 (xi) Buyer or its designee shall have received on or before the Effective Date (unless otherwise specified in this Agreement) the
following, in form and substance satisfactory to Buyer and (if applicable) duly executed: 
  

	 	(A)	Transaction Notice, Loan Schedule and Computer Medium delivered pursuant to Section 4; and 

  

	 	(B)	The related Trust Receipt; 

  
 (xii) No Default or Event of Default shall have occurred and be continuing. 
  

	10.	RELEASE OF PURCHASED ASSETS 

  
 Upon timely payment in full of the Repurchase Price and all other Obligations that relate to and are owed with respect to a Purchased Asset, if no Default
or Event of Default has occurred and is continuing, Buyer shall, and shall direct Custodian to, release such Purchased Asset unless such release would give rise to or perpetuate a Margin Deficit. 
  
 If such a Margin Deficit is applicable, Buyer shall notify Seller of the
amount thereof and Seller may thereupon satisfy the Margin Call in the manner specified in Section 6. 
  

	11.	RELIANCE 

  
 With respect to any Transaction, Buyer may conclusively rely upon, and shall incur no liability to Seller or Guarantors in acting upon, any request or
other communication that Buyer reasonably believes to have been given or made by a person authorized to enter into a Transaction on Seller’s or a Guarantor’s behalf. 
  

 12 

	12.	REPRESENTATIONS AND WARRANTIES 

  
 Each of the Seller and each Guarantor hereby represents and warrants on the date hereof and shall on the Repurchase Date be deemed to represent and
warrant, that: 
  
 a. Due Organization and Qualification.
Each of the Seller and each Guarantor is duly organized, validly existing and in good standing under the laws of the jurisdiction under whose laws it is organized. Each of the Seller and each Guarantor is duly qualified to do business, is in good
standing and has obtained all necessary licenses, permits, charters, registrations and approvals necessary for the conduct of its business as currently conducted and the performance of its obligations under the Program Documents or any failure to
obtain such a license, permit, charter, registration or approval will not cause a Material Adverse Effect or impair the enforceability of any Loan. 
  
 b. Power and Authority. Each of the Seller and each Guarantor has all necessary power and authority to conduct its business as currently conducted,
to execute, deliver and perform its obligations under the Program Documents and to consummate the Transaction. 
  
 c. Due Authorization. The execution, delivery and performance of the Program Documents by each of the Seller and each Guarantor have been duly
authorized by all necessary action and do not require any additional approvals or consents or other action by or any notice to or filing with any Person other than any that have heretofore been obtained, given or made. 
  
 d. Noncontravention. None of the execution and delivery of the Program
Documents by Seller or either Guarantor or the consummation of the Transaction and transactions thereunder: 
  
 i) conflicts with, breaches or violates any provision of any material agreements of Seller or a Guarantor or in any material respect any
law, rule, regulation, order, writ, judgment, injunction, decree, determination or award currently in effect having applicability to Seller or either Guarantor or its properties; 
  
 ii) constitutes a material default by Seller or a Guarantor under any loan or repurchase agreement,
mortgage, indenture or other agreement or instrument to which Seller or a Guarantor is a party or by which it or any of its properties is or may be bound or affected; or 
  
 iii) results in or requires the creation of any lien upon or in respect of any of the assets of Seller or a
Guarantor except the lien relating to the Program Documents. 
  
 e. Legal Proceeding. Except as otherwise disclosed in the financial statements of NCFC or NCMC, there is no action, proceeding or investigation by or before any court, governmental or administrative agency or arbitrator affecting any
of the Purchased Assets, Seller, a Guarantor or any of their Affiliates, pending or threatened, which has a reasonable likelihood of having a Material Adverse Effect. 
  
 f. Valid and Binding Obligations. Each of the Program Documents to which the Seller or a Guarantor is a party, when
executed and delivered by such Seller or Guarantor, will constitute the legal, valid and binding obligations of such Seller or Guarantor, enforceable against such Seller or 

  

 13 

 
Guarantor, in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors’ rights generally and general equitable principles. 
  
 g. Financial Statements. The financial statements of Guarantors, copies of which have been furnished to Buyer, (i) are, as of the dates and for the
periods referred to therein, complete and correct in all material respects, (ii) present fairly the financial condition and results of operations of each Guarantor as of the dates and for the periods indicated and (iii) have been prepared in
accordance with GAAP consistently applied, except as noted therein (subject as to interim statements to normal year-end adjustments). Since the date of the most recent financial statements, there has been no Material Adverse Change with respect to
either Guarantor. Except as disclosed in such financial statements, neither Guarantor is subject to any contingent liabilities or commitments that, individually or in the aggregate, have a reasonably likelihood of causing a Material Adverse Change
with respect to either Guarantor. 
  
 h. Accuracy of
Information. None of the documents or information prepared by or on behalf of Seller or a Guarantor and provided by Seller or a Guarantor to Buyer relating to Seller’s or a Guarantor’s financial condition contain any statement of a
material fact with respect to Seller or Guarantors or the Transaction that was untrue or misleading in any material respect when made. Since the furnishing of such documents or information, there has been no change, nor any development or event
involving a prospective change known to Seller or either Guarantor, that would render any of such documents or information untrue or misleading in any material respect. 
  
 i. No Consents. No consent, license, approval or authorization from, or registration, filing or declaration with, any
regulatory body, administrative agency, or other governmental, instrumentality, nor any consent, approval, waiver or notification of any creditor, lessor or other non-governmental person, is required in connection with the execution, delivery and
performance by Seller or either Guarantor of this Agreement or the consummation by Seller or either Guarantor of any other Program Document, other than any that have heretofore been obtained, given or made. 
  
 j. Compliance With Law. Etc. No practice, procedure or policy employed
or proposed to be employed by Seller or either Guarantor in the conduct of its businesses violates any law, regulation, judgment, regulatory consent, order or decree applicable to it which, if enforced, would result in either a Material Adverse
Change with respect to Seller or either Guarantor or a Material Adverse Effect. 
  
 k. Solvency: Fraudulent Conveyance. Each of the Seller and each Guarantor is solvent and will not be rendered insolvent by the Transaction and, after giving effect to the Transaction, neither Seller nor either
Guarantor will be left with an unreasonably small amount of capital with which to engage in its business. Neither Seller nor a Guarantor intends to incur, nor believes that it has incurred, debts beyond its ability to pay such debts as they mature.
Neither Seller nor a Guarantor is contemplating the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of Seller or
either Guarantor or any of their assets. The amount of consideration being received by Seller upon the sale of the Purchased Assets to Buyer constitutes reasonably equivalent value and fair consideration for such Purchased Assets. Seller is not
transferring any Purchased Assets with any intent to hinder, delay or defraud any of its creditors. The amount of consideration being 

  

 14 

 
received by NCMC upon the sale and/or contribution of the Purchased Assets to Seller, respectively, constitutes reasonably equivalent value and fair
consideration for such Purchased Assets. Neither Guarantor is transferring any Purchased Assets with any intent to hinder, delay or defraud any of its creditors. 
  
 l. Investment Company Act Compliance. Seller is not required to be registered as an “investment company” as
defined under the Investment Company Act nor as an entity under the control of an “investment company” as defined under the Investment Company Act. 
  
 m. Taxes. Each of the Seller and each Guarantor has filed all federal and state tax returns which are required to be filed and paid all taxes,
including any assessments received by it, to the extent that such taxes have become due (other than for taxes that are being contested in good faith or for which it has established adequate reserves). Any taxes, fees and other governmental charges
payable by Seller or a Guarantor in connection with the Transaction and the execution and delivery of the Program Documents have been paid. 
  
 n. Additional Representations. With respect to each Loan, Seller and Guarantors, jointly and severally, hereby make all of the applicable
representations and warranties set forth in Appendix A to the Custody Agreement as of the date the Loan File or Wet Funding Package, as applicable, is delivered to the Custodian. 
  
 o. No Broker. Neither Seller nor a Guarantor has dealt with any broker, investment banker, agent, or other person,
except for Buyer, who may be entitled to any commission or compensation in connection with the sale of Purchased Assets pursuant to this Agreement; provided, that if Seller or either Guarantor has dealt with any broker, investment banker, agent, or
other person, except for Buyer, who may be entitled to any commission or compensation in connection with the sale of Purchased Assets pursuant to this Agreement, such commission or compensation shall have been paid in full by Seller or a Guarantor,
as applicable. 
  
 p. Corporate Separateness. 

 
 (i) The capital of Seller and Guarantors is adequate for
the respective business and undertakings of Seller and Guarantors. 
  
 (ii) Other than as provided in this Agreement and the other Program Documents, Seller is not engaged in any business transactions with either Guarantor or any of their Affiliates other than transactions in the
ordinary course of its business on an “arms-length” basis. 
  
 (iii) The funds and assets of the Seller are not and will not be, commingled with the funds of any other Person. 
  
 (iv) The Seller and Guarantors have complied with all applicable anti-money laundering laws and regulations, including without limitation
the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering Laws”). The Seller and Guarantors have established an anti-money laundering compliance program as required by the Anti-Money Laundering Laws, have conducted the
requisite due diligence in connection with the origination of each Loan for purposes of the Anti-Money Laundering Laws, including with 

  

 15 

 
respect to the legitimacy of the applicable Borrower and the origin of the assets used by the said Borrower to purchase the property in question, and
maintains, and will maintain, sufficient information to identify the applicable Borrower for purposes of the Anti-Money Laundering Laws; no Loan is subject to nullification pursuant to Executive Order 13224 (the “Executive Order”) or the
regulations promulgated by the Office of Foreign Assets Control of the United States Department of the Treasury (the “OFAC Regulations”) or in violation of the Executive Order or the OFAC Regulations, and no Borrower is subject to the
provisions of such Executive Order or the OFAC Regulations nor listed as a “blocked person” for purposes of the OFAC Regulations 
  
 The representations and warranties set forth in this Agreement shall survive transfer of the Purchased Assets to Buyer and shall continue for so long as
the Purchased Assets are subject to this Agreement. 
  

	13.	COVENANTS OF SELLER AND GUARANTOR 

  
 Each of Seller and each Guarantor, as applicable, hereby covenants with Buyer as follows: 
  
 a. Defense of Title. Each of Seller and each Guarantor warrants and will defend the right, title and interest of
Buyer in and to all Collateral against all adverse claims and demands. 
  
 b. No Amendment or Compromise. Following an Event of Default, without the prior written consent of the Buyer, neither Seller, either Guarantor nor those acting on Seller’s or either Guarantor’s behalf shall amend or modify,
or waive any term or condition of, or settle or compromise any claim in respect of, any item of the Purchased Assets, any related rights or any of the Program Documents, provided that any such party may amend or modify a Loan if such amendment or
modification does not affect the amount or timing of any payment of principal or interest, extend its scheduled maturity date, modify its interest rate, or constitute a cancellation or discharge of its outstanding principal balance and does not
materially and adversely affect the security afforded by the real property, finishings, fixtures, or equipment securing the Loan. 
  
 c. No Assignment. Except as permitted herein, neither Seller, NCMC nor any servicer shall sell, assign, transfer or otherwise dispose of, or grant
any option with respect to, or pledge, hypothecate or grant a security interest in or lien on or otherwise encumber (except pursuant to the Program Documents), any of the Purchased Assets or any interest therein, provided that this Section shall not
prevent any of the following: any transfer of Purchased Assets in accordance with the Program Documents; any Hedging Instruments for the related Purchased Assets; any servicing arrangement between the Interim Servicer and Seller or its Affiliates;
and any forward purchase commitment or other types of take out commitment for the Purchased Assets. 
  
 d. Servicing of Loans. Seller and each Guarantor shall cause Interim Servicer to service, or cause to be serviced, all Loans that are part of the
Purchased Assets in accordance with prudent servicing practices, pending any delivery of such servicing to Buyer pursuant to this Agreement, employing at least the same procedures and exercising the same care that Interim Servicer customarily
employs in servicing Loans for its own account. Seller shall notify servicers of Buyer’s interest hereunder and Seller shall notify Buyer of the name and address of all servicers of Loans and shall identify each servicer with respect to each
Purchased Asset on a loan-by-loan basis. Buyer shall have 

  

 16 

 
the right to approve each servicer and the form of all Servicing Agreements or servicing side letter agreements. Seller shall cause each servicer to hold or
cause to be held all escrow funds collected with respect to such Loans in customary custodial accounts and shall apply the same for the purposes for which such funds were collected. Upon Buyer’s request, Seller shall provide reasonably promptly
to Buyer a letter addressed to and agreed to by each servicer of Loans, in form and substance reasonably satisfactory to Buyer, advising such servicer of such matters as Buyer may reasonably request relating to the Loans. If Seller should discover
that, for any reason whatsoever, Seller or any entity responsible to Seller by contract for the administration and/or servicing any such Loan has failed to perform fully Seller’s obligations under the Program Documents or any of the obligations
of such entities with respect to the Purchased Assets, Seller shall promptly notify Buyer. 
  
 e. Preservation of Collateral: Collateral Value. Each of Seller and each Guarantor shall do all things necessary to preserve the Collateral so that it remains subject to a first priority perfected security
interest hereunder. Without limiting the foregoing, Seller and each Guarantor will comply with all rules, regulations and other laws of any Governmental Authority and cause the Collateral to comply with all applicable rules, regulations and other
laws. Neither Seller nor a Guarantor will allow any default by Seller or either Guarantor to occur under any Collateral or any Program Documents and Seller and each Guarantor shall fully perform or cause to be performed when due all of its
obligations under any Collateral or the Program Documents. 
  
 f.
Maintenance of Papers, Records and Files. Seller and each Guarantor shall require, and Seller or either Guarantor shall build, maintain and have available, a complete file in accordance with lending industry custom and practice for each
Purchased Asset. Seller or either Guarantor will maintain or cause to be maintained all such Records not in the possession of Custodian in good and complete condition in accordance with industry practices and preserve them against loss. 

 
 i) Seller and each Guarantor shall collect and maintain
or cause to be collected and maintained all Records relating to the Purchased Assets in accordance with industry custom and practice, including those maintained pursuant to the preceding subsection, and all such Records shall be in the possession of
the Custodian, the Interim Servicer, the Seller or a Guarantor unless Buyer otherwise approves. Neither Seller nor a Guarantor will allow any such papers, records or files that are an original or an only copy to leave Custodian’s possession,
except for individual items removed in connection with servicing a specific Loan, in which event Seller or a Guarantor will obtain or cause to be obtained a receipt from a financially responsible person for any such paper, record or file.

  
 ii) For so long as Buyer has an interest in
or lien on any Purchased Asset, Seller and each Guarantor will hold or cause to be held all related Records in trust, as the custodian and bailee, for Buyer. Seller or Guarantor shall notify, or cause to be notified, every other party holding any
such Records of the interests and liens granted hereby. 
  
 iii) Upon reasonable advance notice from Custodian or Buyer, Seller and each Guarantor shall (x) make any and all such Records available to Custodian or Buyer to examine any such Records, either by its own officers or
employees, or by agents or contractors, or both, and make copies of all or any portion thereof, (y) permit Buyer or its authorized agents to discuss the affairs, finances and accounts of Seller or either Guarantor with its respective chief operating
officer and chief financial officer and to discuss the affairs, 

  

 17 

 
finances and accounts of Seller or either Guarantor with its independent certified public accountants and (z) provide a loan tape of the Loans in a form as
reasonably requested by the Buyer. 
  
 g. Financial
Statements: Other Information. Seller and each Guarantor shall keep or cause to be kept in reasonable detail books and records of account of its assets and business and shall clearly reflect therein the transfer of Purchased Assets to Buyer.

  
 h. Notice of Material Events. Each of Seller and each
Guarantor shall promptly inform Buyer in writing of any of the following: 
  
 i) any Default, Event of Default or default or breach by Seller or either Guarantor of any other material obligation under any Program Document, or the occurrence or existence of any event or circumstance that Seller
or either Guarantor with the passage of time expects to have a reasonably likelihood of becoming an Event of Default; 
  
 ii) any material change in the insurance coverage required of Seller or either Guarantor or any other Person pursuant to any Program
Document, with copy of evidence of same attached; 
  
 iii) any material dispute, litigation, investigation, proceeding or suspension between Seller or a Guarantor, on the one hand, and any Governmental Authority or any other Person; 
  
 iv) any material adverse change in accounting policies or
financial reporting practices of Seller or a Guarantor; 
  
 v) the occurrence of any material employment dispute and a description of the strategy for resolving it; and 
  
 vi) any event, circumstance or condition that has resulted, or has a reasonably likelihood of resulting, in either a Material Adverse
Change with respect to Seller or a Guarantor or a Material Adverse Effect. 
  
 i. Maintenance of Licenses. Each of Seller and each Guarantor shall maintain, all licenses, permits or other approvals necessary for each of Seller and each Guarantor to conduct its business and to perform its
obligations under the Program Documents, and each of Seller and each Guarantor shall conduct its business strictly in accordance with applicable law. 
  
 j. No Withholdings for Taxes. Any payments made by Seller to Buyer shall be free and clear of, and without deduction or withholding for, any taxes;
provided, however, that if Seller shall be required by law to deduct or withhold any taxes from any sums payable to Buyer, then Seller shall (A) make such deductions or withholdings and pay such amounts to the relevant authority in accordance with
applicable law, (B) pay to Buyer the sum that would have been payable had such deduction or withholding not been made, and (C) at the time the Price Differential is paid, pay to Buyer all additional amounts as specified by Buyer to preserve the
after-tax yield Buyer would have 

  

 18 

 
received if such tax had not been imposed. This provision does not apply to income taxes payable by Buyer on its taxable income. 
  
 k. Nature of Business. Neither Seller nor a Guarantor shall make any
material change in the nature of its business as carried on at the date hereof. 
  
 l. Limitation on Distributions. If a Default has occurred and is occurring, neither Seller nor either Guarantor shall pay any dividends or distributions with respect to any capital stock or other equity
interests in Seller or either Guarantor, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of Seller or either Guarantor. 

 
 m. Reserved. 
  
 n. Merger of Guarantor. Neither Guarantor shall at any time, directly
or indirectly, (i) liquidate or dissolve or enter into any consolidation or merger or be subject to a Change in Control without Buyer’s prior consent; (ii) form or enter into any partnership, joint venture, syndicate or other combination which
would have a Material Adverse Effect; or (iii) make any Material Adverse Change with respect to a Guarantor or such Guarantor’s Subsidiaries. 
  
 o. Insurance. Seller will, and shall cause the Interim Servicer to, obtain and maintain insurance with responsible companies in such amounts and
against such risks as are customarily carried by business entities engaged in similar businesses similarly situated, and will furnish Buyer on request full information as to all such insurance, and provide within (15) days after receipt of such
request the certificates or other documents evidencing renewal of each such policy. 
  
 p. Affiliate Transaction. Neither Seller nor a Guarantor will at any time, directly or indirectly, sell, lease or otherwise transfer any property or assets to, or otherwise acquire any property or assets from,
or otherwise engage in any transactions with, any of their Affiliates unless the terms thereof are no less favorable to such Seller or Guarantor, as applicable, than those that could be obtained at the time of such transaction in an arm’s
length transaction with a Person who is not such an Affiliate. 
  
 q. Change of Fiscal Year. Neither Seller nor a Guarantor will at any time, directly or indirectly, except upon ninety (90) days’ prior written notice to Buyer, change the date on which such Seller’s or Guarantor’s
fiscal year begins from such Seller’s or Guarantor’s current fiscal year beginning date. 
  
 r. Delivering of Servicing Rights. With respect to the Servicing Rights of each Loan, Seller and Guarantors shall deliver such Servicing Rights to
the designee of Buyer, within 17 days of the Purchase Date, the Seller’s and Guarantors’ transfer of the Servicing Rights under this Section shall be in accordance with customary standards in the industry. 
  
 s. Underwriting Guidelines. NCMC shall not permit any material
modifications to be made to the Underwriting Guidelines without the prior consent of the Buyer (such consent not to be unreasonably withheld). 
  

 19 

 t. No Other Indebtedness. Without the prior written consent of the Buyer, the Seller shall not
incur any Indebtedness or guaranty the Indebtedness of any other Person other than the Indebtedness incurred under the Program Documents. 
  
 u. Facility Fee. Seller agrees to pay to Buyer on the date of execution of this Agreement, a facility fee in the amount of the Facility Fee Amount,
such payment to be made in United States dollars, in immediately available funds, without deduction, set-off or counterclaim. The Buyer may, in its sole discretion, net such commitment fee from the proceeds of any Purchase Price payable to the
Seller. 
  

	14.	REPURCHASE DATE PAYMENTS 

  
 On the Repurchase Date, Seller shall remit or shall cause to be remitted to Buyer the Repurchase Price. 
  

	15.	REPURCHASE OF PURCHASED ASSETS, CHANGE OF LAW 

  
 a. Upon discovery by Seller or a Guarantor of a breach of any of the representations and warranties set forth in Appendix A to the Custody Agreement,
Seller or a Guarantor shall give prompt written notice thereof to Buyer. Upon any such discovery by Buyer, Buyer will notify Seller. It is understood and agreed that the representations and warranties set forth in Appendix A to the Custody Agreement
shall survive delivery of the respective Loan Files to the Custodian and shall inure to the benefit of Buyer. The fact that Buyer has conducted or has failed to conduct any partial or complete due diligence investigation in connection with its
purchase of any Purchased Asset shall not affect Buyer’s right to demand repurchase as provided under this Agreement. The Seller shall within two (2) Business Days of the earlier of the Seller’s or a Guarantor’s discovery or either
Seller or a Guarantor receiving notice, with respect to any Purchased Asset, of (i) any breach of a representation or warranty contained in Appendix A to the Custody Agreement or (ii) any failure to deliver any of the items required to be delivered
as part of the Loan File within the time period required for delivery pursuant to the Custody Agreement, promptly cure such breach or delivery failure in all material respects. If within two (2) Business Days after the earlier of Seller’s or a
Guarantor’s discovery of such breach or delivery failure or Seller or a Guarantor receiving notice thereof that such breach or delivery failure has not been remedied by the Seller, the Seller shall promptly upon receipt of written instructions
from Buyer, at Buyer’s option, either (i) purchase such Purchased Asset at a purchase price equal to the Repurchase Price with respect to such Purchased Asset by wire transfer to the account designated by Buyer, or (ii) transfer comparable
Substitute Assets to Buyer, as provided in Section 16 hereof. 
  
 b. If Buyer determines that the introduction of, any change in, or the interpretation or administration of any requirement of law has made it unlawful or commercially impracticable to engage in the Transaction with a Pricing Rate based on
LIBOR, then Seller shall, upon its receipt of notice of such fact and demand from Buyer (with a copy of such notice to Custodian), repurchase the Purchased Assets subject to the Transaction on the next succeeding Business Day and, at Seller’s
election, concurrently enter into a new Transaction with Buyer with a Pricing Rate based on the Prime Rate plus the margin set forth in the Side Letter as part of the Pricing Rate. 
  

 20 

 c. If Buyer determines in its sole discretion that any Change in Law regarding capital requirements has
or would have the effect of reducing the rate of return on Buyer’s capital or on the capital of any Affiliate of Buyer as a consequence of such Change in Law on this Agreement, then from time to time Seller will compensate Buyer or Buyer’s
Affiliate, as applicable, for such reduced rate of return suffered as a consequence of such Change in Law on terms similar to those imposed by Buyer on its other similarly affected customers. Buyer shall provide Seller with prompt notice as to any
Change in Law. Notwithstanding any other provisions in this Agreement, in the event of any such Change in Law Seller will have the right to terminate the Transaction without any prepayment penalty as of a date selected by Seller, which date shall be
prior to the Repurchase Date and which date shall thereafter for all purposes hereof be deemed to be the Repurchase Date. 
  

	16.	SUBSTITUTION 

  
 Seller may, subject to agreement with and acceptance by Buyer, substitute other assets which are substantially the same as the Purchased Assets (the
“Substitute Assets”) for any Purchased Assets. Such substitution shall be made by transfer to Buyer of such other Substitute Assets and transfer to Seller of such Purchased Assets. After substitution, the Substitute Assets shall be deemed
to be Purchased Assets. 
  

	17.	REPURCHASE TRANSACTIONS 

  
 Buyer may, in its sole election, engage in repurchase transactions with the Purchased Assets or otherwise pledge, hypothecate, assign, transfer or
otherwise convey the Purchased Assets with a counterparty of Buyer’s choice, in all cases subject to Buyer’s obligation to reconvey the Purchased Assets (and not substitutes therefor) on the Repurchase Date. In the event Buyer engages in a
repurchase transaction with any of the Purchased Assets or otherwise pledges or hypothecates any of the Purchased Assets, Buyer shall have the right to assign to Buyer’s counterparty any of the applicable representations or warranties in
Appendix A to the Custody Agreement and the remedies for breach thereof, as they relate to the Purchased Assets that are subject to such repurchase transaction. 
  

	18.	EVENTS OF DEFAULT 

  
 With respect to the Transaction covered by or related to this Agreement, the occurrence of any of the following events shall constitute an “Event of
Default”: 
  
 a. Seller fails to transfer the Purchased
Assets to Buyer on the Purchase Date (provided Buyer has tendered the Purchase Price); 
  
 b. Seller either fails to repurchase the Purchased Assets on the Repurchase Date or fails to perform its obligations under Section 6; 
  
 c. either Seller or a Guarantor shall fail to perform, observe or comply with any other material term, covenant or agreement
contained in the Program Documents (other than Appendix A to the Custody Agreement) and such failure is not cured within the time period expressly provided or, if no such cure period is provided, within two (2) Business Days of the earlier of (i)
such party’s 

  

 21 

 
receipt of written notice from Buyer or Custodian of such breach or (ii) the date on which such party obtains notice or knowledge of the facts giving rise to
such breach; 
  
 d. any representation or warranty made by Seller
or a Guarantor (or any of Seller’s or a Guarantor’s officers) in the Program Documents or in any other document delivered in connection therewith (other than the representations or warranties in Appendix A to the Custody Agreement) shall
have been incorrect or untrue in any material respect when made or repeated or deemed to have been made or repeated; 
  
 e. Seller, a Guarantor, or any of Seller’s or a Guarantor’s Subsidiaries shall fail (i) to pay any of Seller’s, a Guarantor’s or
Seller’s or a Guarantor’s Subsidiaries’ Indebtedness (aggregating in excess of $2,500,000 with respect to a Guarantor or a Guarantor and its Subsidiaries, taken as a whole), or any interest or premium thereon when due (whether by
scheduled maturity, requirement prepayment, acceleration, demand or otherwise), or (ii) to make any payment when due under Seller’s, a Guarantor’s or Seller’s or a Guarantor’s Subsidiaries’ Guarantee of another person’s
Indebtedness for borrowed money, and, in either case, such failure shall entitle any related counterparty to declare any such Indebtedness or Guarantee to be due and payable, or required to be prepaid (other than by a regularly scheduled required
prepayment), prior to the stated maturity thereof; 
  
 f. a
custodian, receiver, conservator, liquidator, trustee, sequestrator or similar official for Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries, or of any of Seller’s, a Guarantor’s or their respective Property
(as a debtor or creditor protection procedure), is appointed or takes possession of such property; or Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries generally fails to pay Seller’s, a Guarantor’s or
Seller’s or a Guarantor’s Subsidiaries’ debts as they become due; or Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries is adjudicated bankrupt or insolvent; or an order for relief is entered under the
Federal Bankruptcy Code, or any successor or similar applicable statute, or any administrative insolvency scheme, against Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries; or any of Seller’s, a Guarantor’s or
Seller’s or a Guarantor’s Subsidiaries’ Property is sequestered by court or administrative order; or a petition is filed against Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries under any bankruptcy,
reorganization, arrangement, insolvency, readjustment of debt, dissolution, moratorium, delinquency or liquidation law of any jurisdiction, whether now or subsequently in effect; 
  
 g. Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries files a voluntary petition in bankruptcy,
seeks relief under any provision of any bankruptcy, reorganization, moratorium, delinquency, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction whether now or subsequently in effect; or consents to the
filing of any petition against it under any such law; or consents to the appointment of or taking possession by a custodian, receiver, conservator, trustee, liquidator, sequestrator or similar official for Seller, a Guarantor or any of Seller’s
or a Guarantor’s Subsidiaries, or of all or any part of Seller’s, a Guarantor’s or Seller’s or a Guarantor’s Subsidiaries’ Property; or makes an assignment for the benefit of Seller, a Guarantor or Seller’s or a
Guarantor’s Subsidiaries’ creditors; 
  
 h. any final,
nonappealable judgment or order for the payment of money in excess of $2,500,000 is rendered against Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries 

  

 22 

 
and remains undischarged or unsatisfied after the passage of 30 days following the date on which it is entered; 
  
 i. any Governmental Authority or any person, agency or entity acting or
purporting to act under governmental authority shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the Property of Seller, a Guarantor or any of Seller’s or a
Guarantor’s Subsidiaries, or shall have taken any action to displace the management of Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries or to curtail its authority in the conduct of the business of Seller, a
Guarantor or any of Seller’s or a Guarantor’s Subsidiaries, or takes any action in the nature of enforcement to remove, limit or restrict the approval of Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries as an
issuer, buyer or a seller/servicer of Loans or securities backed thereby; 
  
 j. Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries shall default under, or fail to perform as requested under, or shall otherwise breach the material terms of any instrument, agreement
or contract relating to Indebtedness (aggregating in excess of $2,500,000 with respect to a Guarantor or a Guarantor and its Subsidiaries, taken as a whole), and such default, failure or breach shall entitle any counterparty to declare such
Indebtedness to be due and payable prior to the maturity thereof; 
  
 k. in the reasonable good faith judgment of Buyer any Material Adverse Change shall have occurred with respect to Seller, a Guarantor or any of Seller’s or a Guarantor’s Subsidiaries taken as a whole; 
  
 l. Seller or a Guarantor shall admit in writing its inability to, or
intention not to, perform any of such Seller’s or a Guarantor’s respective material Obligations; 
  
 m. except as expressly permitted in this Agreement, Seller or a Guarantor dissolves, merges or consolidates with another entity, or sells, transfers, or
otherwise disposes of a material portion of such Seller’s or a Guarantor’s (as applicable) business or assets unless Buyer’s written consent is given; 
  
 n. this Agreement shall for any reason cease to create a valid, first priority security interest or ownership interest upon
transfer in any material portion of the Purchased Assets or Collateral purported to be covered hereby; 
  
 o. [Reserved]; 
  
 p. a Change in Control of Seller or a Guarantor shall have occurred which has not been approved by Buyer; 
  
 q. any default shall have occurred and be continuing under that certain
Master Repurchase Agreement among Buyer and New Century Funding A dated as of May 13, 2002 (the “First Repurchase Agreement”); 
  
 r. [Reserved]; 
  
 s. [Reserved]; 
  

 23 

 t. [Reserved]; 
  

u. [Reserved]; 
  
 v. [Reserved]; and 
  
 w. any material amendment is made to the Underwriting Guidelines which was not previously approved in writing by Buyer. 
  
 It is understood and agreed that any default, cure or notice period provided
for in the Program Documents may be accelerated by Buyer unilaterally upon Buyer’s or Agent’s reasonable determination that it is reasonable to do so under the circumstances, with due consideration to the volatility of markets, the
seriousness of any Defaults and the perceived risk to Buyer of delay. 
  

	19.	REMEDIES 

  
 Upon the occurrence of an Event of Default, Buyer, at its option (which option shall be deemed to have been exercised immediately upon the occurrence of
an Event of Default pursuant to Section 18(f) or (g) hereof), shall have any or all of the following rights and remedies, which may be exercised by Buyer: 
  
 a. The Repurchase Date for the Transaction hereunder shall be deemed immediately to occur. 
  
 b. Seller’s obligations hereunder to repurchase all Purchased Assets at the Repurchase Price therefor on the Repurchase
Date in the Transaction shall thereupon become immediately due and payable; all Income paid after such exercise or deemed exercise shall be remitted to and retained by Buyer and applied to the aggregate Repurchase Prices and any other amounts owing
by Seller hereunder; Seller and Guarantors shall immediately deliver to Buyer or its designee any and all Records relating to the Purchased Assets subject to the Transaction then in Seller’s and Guarantor’s possession and/or control; and
all right, title and interest in and entitlement to such Purchased Assets and Servicing Rights thereon shall be deemed transferred to Buyer. 
  
 Buyer may (A) sell, on or following the Business Day following the date on which the Repurchase Price became due and payable pursuant to Section 19(b)
without notice or demand of any kind, at a public or private sale and at such price or prices as Buyer may reasonably deem satisfactory any or all Purchased Assets or (B) in its sole discretion elect, in lieu of selling all or a portion of such
Purchased Assets, to give Seller credit for such Purchased Assets in an amount equal to the Market Value of the Purchased Assets against the aggregate unpaid Repurchase Price and any other amounts owing by Seller hereunder. The Seller shall remain
liable to the Buyer for any amounts that remain owing to Buyer following a sale or credit under the preceding sentence. The proceeds of any disposition of Purchased Assets shall be applied first to the reasonable costs and expenses incurred by Buyer
in connection with or as a result of an Event of Default; second to breakage costs, costs of cover and/or related hedging transactions; third to the aggregate Repurchase Prices; and fourth to all other Obligations. 
  

 24 

 The parties recognize that it may not be possible to purchase or sell all of the Purchased Assets on a
particular Business Day, or in a transaction with the same purchaser, or in the same manner because the market for such Purchased Assets may not be liquid. In view of the nature of the Purchased Assets, the parties agree that liquidation of the
Transaction or the underlying Purchased Assets does not require a public purchase or sale and that a good faith private purchase or sale shall be deemed to have been made in a commercially reasonable manner. Accordingly, Buyer may elect the time and
manner of liquidating any Purchased Asset and nothing contained herein shall obligate Buyer to liquidate any Purchased Asset on the occurrence of an Event of Default or to liquidate all Purchased Assets in the same manner or on the same Business Day
or constitute a waiver of any right or remedy of Buyer. 
  
 In
addition to its rights hereunder, Buyer shall have the right to proceed against any of Seller’s assets which may be in the possession of Buyer, any of Buyer’s Affiliates or its designee (including the Custodian), including the right to
liquidate such assets and to set-off the proceeds against monies owed by Seller to Buyer pursuant to this Agreement. Buyer may set off cash, the proceeds of the liquidation of the Purchased Assets and Additional Purchased Assets, any other
Collateral or its proceeds and all other sums or obligations owed by Buyer to Seller against all of Seller’s Obligations to Buyer, whether under this Agreement, under the Transaction, or under any other agreement between the parties, or
otherwise, whether or not such Obligations are then due, without prejudice to Buyer’s right to recover any deficiency. 
  
 The Buyer shall have the right to obtain physical possession of the Records and all other files of the Seller relating to the Purchased Assets and all
documents relating to the Purchased Assets which are then or may thereafter come into the possession of the Seller or any third party acting for the Seller and the Seller shall deliver to the Buyer such assignments as the Buyer shall request.

  
 Buyer may direct all Persons servicing the Purchased Assets to
take such action with respect to the Purchased Assets as Buyer determines appropriate. 
  
 Each of Seller and each Guarantor shall cause all sums received by it with respect to the Purchased Assets to be deposited with Custodian (or such other Person as Buyer may direct) after receipt thereof. 

 
 Buyer shall without regard to the adequacy of the security for the
Obligations, be entitled to the appointment of a receiver by any court having jurisdiction, without notice, to take possession of and protect, collect, manage, liquidate, and sell the Purchased Assets and any other Collateral or any portion thereof,
collect the payments due with respect to the Purchased Assets and any other Collateral or any portion thereof, and do anything that Buyer is authorized hereunder to do. Seller shall pay all costs and expenses incurred by Buyer in connection with the
appointment and activities of such receiver. 
  
 Buyer may enforce
its rights and remedies hereunder without prior judicial process or hearing, and Seller hereby expressly waives, to the extent permitted by law, any right Seller might otherwise have to require Buyer to enforce its rights by judicial process. Seller
also waives, to the extent permitted by law, any defense Seller might otherwise have to the Obligations, arising from use of nonjudicial process, enforcement and sale of all or any portion of the Purchased Assets and any other Collateral or from any
other election of remedies. Seller recognizes that nonjudicial remedies are 

  

 25 

 
consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at arm’s length. 
  
 In addition to all the rights and remedies specifically provided herein,
Buyer shall have all other rights and remedies provided by applicable federal, state, foreign, and local laws, whether existing at law, in equity or by statute. 
  

Upon the occurrence of an Event of Default, Buyer shall have, except as otherwise expressly provided in this Agreement, the right to exercise any of
its rights and/or remedies without presentment, demand, protest or further notice of any kind other than as expressly set forth herein, all of which are hereby expressly waived by Seller. 
  
 Seller hereby authorizes Buyer, at Seller’s expense, to file such financing statement or statements relating to the
Purchased Assets and the Collateral without Seller’s signature thereon as Buyer at its option may deem appropriate, and appoints Buyer as Seller’s attorney-in-fact to execute any such financing statement or statements in Seller’s name
and to perform all other acts which Buyer deems appropriate to perfect and continue the lien and security interest granted hereby and to protect, preserve and realize upon the Purchased Assets and the Collateral, including, but not limited to, the
right to endorse notes, complete blanks in documents and execute assignments on behalf of Seller as its attorney-in-fact. This power of attorney is coupled with an interest and is irrevocable without Buyer’s consent. 
  

	20.	DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE 

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

	21.	USE OF EMPLOYEE PLAN ASSETS 

  
 No assets of an employee benefit plan subject to any provision of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
shall be used by either party hereto in a Transaction. 
  

	22.	INDEMNITY 

  
 a. Seller agrees to pay on demand (i) all reasonable out-of-pocket costs and expenses of Buyer in connection with the preparation, execution, delivery,
modification, administration and amendment of the Program Documents (including, without limitation, (A) all collateral review and UCC search and filing fees and expenses and (B) the reasonable fees and expenses of counsel for 

  

 26 

 
Buyer with respect to advising Buyer as to its rights and responsibilities, or the perfection, protection or preservation of rights or interests, under this
Agreement, with respect to negotiations with Seller or with other creditors of Seller or any of its Subsidiaries arising out of any Default or any events or circumstances that may rise to a Default and with respect to presenting claims in or
otherwise participating in or monitoring any bankruptcy, insolvency or other similar proceeding involving creditors’ rights generally and any proceeding ancillary thereto) and (ii) all costs and expenses of Buyer in connection with the
enforcement of this Agreement (including any waivers), whether in any action, suit or litigation, any bankruptcy, insolvency or other similar proceeding affecting creditors’ rights generally (including, without limitation, the reasonable fees
and expenses of counsel for Buyer) whether or not the transactions contemplated hereby are consummated. 
  
 b. Seller agrees to indemnify and hold harmless Buyer and each of its respective Affiliates and their officers, directors, employees, agents and advisors
(each, an “Indemnified Party”) from and against (and will reimburse each Indemnified Party as the same is incurred) any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and expenses
of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or other
proceeding (whether or not such Indemnified Party is a party thereto) relating to, resulting from or arising out of any of the Program Documents and all other documents related thereto, any breach of a representation or warranty of Seller or a
Guarantor or Seller’s or a Guarantor’s officer in this Agreement or any other Program Document, and all actions taken pursuant thereto) (i) the Transaction, the actual or proposed use of the proceeds of the Transaction, this Agreement or
any of the transactions contemplated thereby, including, without limitation, any acquisition or proposed acquisition or (ii) the actual or alleged presence of hazardous materials on any Property or any environmental action relating in any way to any
Property, except to the extent such claim, damage, class, liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful
misconduct or is the result of a claim made by Seller or a Guarantor against the Indemnified Party, and Seller or a Guarantor is ultimately the successful party in any resulting litigation or arbitration. Seller also agrees not to assert any claim
against Buyer or any of its Affiliates, or any of their respective officers, directors, employees, attorneys and agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the
Program Documents, the actual or proposed use of the proceeds of the Transaction, this Agreement or any of the transactions contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO
THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES. 
  
 c. Without limitation on the provisions of Section 4, if any payment of the Repurchase Price of the Transaction is made by Seller other than on the then scheduled Repurchase Date thereto as a result of an acceleration
of the Repurchase Date pursuant to Section 19 or for any other reason, Seller shall, except as otherwise provided in Sections 15(c) and 24, upon demand by Buyer, pay to Buyer any breakage costs incurred as of a result of such payment. 
  
 d. If Seller fails to pay when due any costs, expenses or other amounts
payable by it under this Agreement, including, without limitation, reasonable fees and expenses of counsel and indemnities, such amount may be paid on behalf of Seller by Buyer, in its sole discretion. 
  

 27 

 e. Without prejudice to the survival of any other agreement of Seller hereunder, the covenants and
obligations of Seller contained in this Section shall survive the payment in full of the Repurchase Price and all other amounts payable hereunder and delivery of the Purchased Assets by Buyer against full payment therefor. 
  

	23.	WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS 

  
 Seller hereby expressly waives, to the fullest extent permitted by law, every statute of limitation on a deficiency judgment, any reduction in the
proceeds of any Purchased Assets as a result of restrictions upon Buyer or Custodian contained in the Program Documents or any other instrument delivered in connection therewith, and any right that it may have to direct the order in which any of the
Purchased Assets shall be disposed of in the event of any disposition pursuant hereto. 
  

	24.	REIMBURSEMENT 

  
 All sums reasonably expended by Buyer in connection with the exercise of any right or remedy provided for herein shall be and remain Seller’s
obligation. Seller agrees to pay, with interest at the Default Rate, to the extent that an Event of Default has occurred, the reasonable out-of-pocket expenses and reasonable attorneys’ fees incurred by Buyer and/or Custodian in connection with
the preparation, enforcement (including any waivers), administration and amendments of the Program Documents, the taking of any action, including a Guarantor action, required or permitted to be taken by Buyer (without duplication to Buyer) and/or
Custodian pursuant thereto, any “due diligence” or loan agent reviews conducted by Buyer or on its behalf or by refinancing or restructuring in the nature of a “workout.” If Buyer determines that, due to the introduction of, any
change in, or the compliance by Buyer with (i) any eurocurrency reserve requirement or (ii) the interpretation of any law, regulation or any guideline or request from any central bank or other Governmental Authority (whether or not having the force
of law), there shall be an increase in the cost to Buyer in engaging in the present or any future Transactions, then Seller agrees to pay to Buyer, from time to time, upon demand by Buyer (with a copy to Custodian) the actual cost of additional
amounts as specified by Buyer to compensate Buyer for such increased costs. Notwithstanding any other provisions in this Agreement, in the event of any such change in the eurocurrency reserve requirement or the interpretation of any law, regulation
or any guideline or request from any central bank or other Governmental Authority, Seller will have the right to terminate all Transactions then outstanding as of a date selected by Seller (without the payment by Seller of any prepayment penalty or
breakage costs), which date shall be prior to the applicable Repurchase Date and which date shall thereafter for all purposes hereof, be deemed to be the Repurchase Date. In addition, Buyer shall promptly notify Seller if any events in clause (i) or
(ii) of this Section 24 occur. 
  

	25.	FURTHER ASSURANCES 

  
 Seller and Guarantors agree to do such further acts and things and to execute and deliver to Buyer such additional assignments, acknowledgments,
agreements, powers and instruments as are reasonably required by Buyer to carry into effect the intent and purposes of this Agreement, to perfect the interests of Buyer in the Purchased Assets or to better assure and confirm unto Buyer its rights,
powers and remedies hereunder. 
  

 28 

	26.	ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION 

  
 This Agreement supersedes and integrates all previous negotiations, contracts, agreements and understandings between the parties relating to a sale and
repurchase of Purchased Assets and Additional Purchased Assets thereto, and it, together with the other Program Documents, and the other documents delivered pursuant hereto or thereto, contains the entire final agreement of the parties. No prior
negotiation, agreement, understanding or prior contract shall have any validity. 
  

	27.	TERMINATION 

  
 This Agreement shall remain in effect until the earlier of (i) 17 days following the Effective Date or (ii) at Buyer’s option upon the occurrence of
an Event of Default (such date, the “Termination Date”). However, no such termination shall affect Seller’s outstanding obligations to Buyer at the time-of such termination. Seller’s obligations to indemnify Buyer pursuant to
this Agreement shall survive the termination hereof. 
  

	28.	ASSIGNMENT 

  
 The Program Documents are not assignable by Seller except that the Seller shall have the right to assign the Program Documents to NC Residual II
Corporation pursuant to an assignment and assumption agreement. Buyer may from time to time assign all or a portion of its rights and obligations under this Agreement and the Program Documents; provided, however, that Buyer shall maintain, for
review by Seller upon written request, a register of assignees and a copy of an executed assignment and acceptance by Buyer and assignee (“Assignment and Acceptance”), specifying the percentage or portion of such rights and obligations
assigned. Upon such assignment, (a) such assignee shall be a party hereto and to each Program Document to the extent of the percentage or portion set forth in the Assignment and Acceptance, and shall succeed to the applicable rights and obligations
of Buyer hereunder, and (b) Buyer shall, to the extent that such rights and obligations have been so assigned by it to either (i) an Affiliate of Buyer which assumes the obligations of Buyer or (ii) to another Person approved by Seller (such
approval not to be unreasonably withheld) which assumes the obligations of Buyer, be released from its obligations hereunder accruing thereafter and under the Program Documents. Unless otherwise stated in the Assignment and Acceptance, Seller shall
continue to take directions solely from Buyer unless otherwise notified by Buyer in writing. Buyer may distribute to any prospective assignee any document or other information delivered to Buyer by Seller. Notwithstanding any assignment by Buyer
pursuant to this Section 28, Buyer shall remain liable as to the Transaction. 
  

	29.	AMENDMENTS, ETC. 

  
 No amendment or waiver of any provision of this Agreement nor any consent to any failure to comply herewith or therewith shall in any event be effective
unless the same shall be in writing and signed by Seller and Buyer, and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  

 29 

	30.	SEVERABILITY 

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

	31.	BINDING EFFECT: GOVERNING LAW 

  
 This Agreement shall be binding and inure to the benefit of the parties hereto and their respective successors and assigns, except that Seller may not
assign or transfer any of its rights or obligations under this Agreement or any other Program Document without the prior written consent of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW
YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. 
  

	32.	CONSENT TO JURISDICTION 

  
 SELLER HEREBY WAIVES TRIAL BY JURY. SELLER HEREBY IRREVOCABLY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS IN ANY ACTION OR PROCEEDING. SELLER HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION SELLER MAY HAVE TO, NON-EXCLUSIVE PERSONAL
JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS. 
  

	33.	SINGLE AGREEMENT 

  
 Reserved. 
  

	34.	INTENT 

  
 Seller and Buyer recognize that the Transaction is a “repurchase agreement” as that term is defined in Section 101 of Title 11 of the United
States Code, as amended (“USC”) (except insofar as the Loans subject to the Transaction or the term of the Transaction would render such definition inapplicable), a “forward contract” as that term is defined in Section 101 of
Title 11 of the USC and a “securities contract” as that term is defined in Section 741 of Title 11 of the USC (except insofar as the Loans subject to the Transaction or the term of the Transaction would render such definition
inapplicable). 
  
 It is understood that Buyer’s right to
liquidate the Purchased Assets delivered to it in connection with the Transaction hereunder or to exercise any other remedies pursuant to Section 19 hereof is a contractual right to liquidate the Transaction as described in Sections 555 and 559 of
Title 11 of the USC. 
  

 30 

	35.	NOTICES AND OTHER COMMUNICATIONS 

  
 Except as provided herein, any notice required or permitted by this Agreement shall be in writing and shall be effective and deemed delivered only when
received by the party to which it is sent; provided, however, that a facsimile transmission shall be deemed to be received when transmitted so long as the transmitting machine has provided an electronic confirmation (without error message) of such
transmission. Any such notice shall be sent to a party at the address or facsimile transmission number set forth below: 
  
 if to Seller: 
  

	NC Capital Corporation
	
	Attention:                                     
   
	
	with a copy to:
	
	 New Century Funding Corporation
 as administrator of NC Capital Corporation
 18400 Von Karman
 Irvine, California 92612

	Attention:	  	Stergios Theologides, Esq.
	Telephone:	  	(949) 863-7243
	Facsimile:	  	(949) 440-7033

  
 if to NCMC: 
  

	New Century Mortgage Corporation
	18400 Van Karman, Suite 1000
	Irvine, California 92612
	Attention:	  	Stergios Theologides, Esq.
	Telephone:	  	(949) 863-7243
	Facsimile:	  	(949) 440-7033

  
 if to Buyer or Agent:

  

	 Bank of America, N.A.
 TX1-492-66-01
 901 Main Street, 66th Floor
 Dallas,
Texas 75202-3714

	Attention:	  	Agnes McAlpine
	Telephone:	  	(214) 209-3566
	Facsimile:	  	(214) 209-0338
	with a copy to:
	Attention:	  	Mark G. Short, Associate
	Telephone:	  	(214) 209-0670
	Facsimile:	  	(214) 209-0338

  

 31 

	or, for Transaction Notices and related documents:
		
	Attention:	  	Uma Subramanian, Loan Administrator
	Telephone:	  	(214) 209-1076
	Facsimile:	  	(214) 209-2710

  
 as such address or number may be
changed by like notice. 
  

	36.	CONFIDENTIALITY 

  
 This Agreement and its terms, provisions, supplements and amendments, and transactions and notices hereunder, are proprietary to Buyer and Agent and shall
be held by Seller and each Guarantor (and Seller and Guarantors shall cause Interim Servicer to hold it) in strict confidence and shall not be disclosed to any third party without the consent of Buyer except for (i) disclosure to Seller’s or a
Guarantor’s direct and indirect parent companies, attorneys, agents or accountants, provided that such attorneys or accountants likewise agree to be bound by this covenant of confidentiality or (ii) disclosure required by law, rule, regulation
or order of a court or other regulatory body or (iii) disclosure to any approved Hedge Counterparty to the extent necessary to obtain any Hedge Instrument hereunder or (iv) any disclosures or filing required under Securities and Exchange Commission
or state securities’ laws; provided that neither the Seller nor any Guarantor shall file the Side Letter with the Securities and Exchange Commission or state securities office, unless otherwise agreed by Buyer in writing, and the Seller and
Guarantor agree to use best efforts not to file the terms of the Side Letter with any such filing; provided, that in the case of (ii), (iii) and (iv), Seller shall take reasonable actions to provide Buyer with prior written notice. Notwithstanding
anything herein to the contrary, except as reasonably necessary to comply with applicable securities laws, each party (and each employee, representative, or other agent of each party) may disclose to any and all persons, without limitation of any
kind, the tax treatment and tax structure of the transaction and all materials of any kind (including opinions of other tax analyses) that are provided to it relating to such tax treatment and tax structure. For this purpose, tax treatment and tax
structure shall not include (i) the identity of any existing or future party (or any Affiliate of such party) to this Agreement or (ii) any specific pricing information or other commercial terms, including the amount of any fees, expenses, rates or
payments arising in connection with the transactions contemplated by this Agreement. 
  

	37.	MAXIMUM AGGREGATE PURCHASE PRICE 

  
 The Maximum Aggregate Purchase Price under this Agreement shall equal $1,138,383,167. 
  
 [Signature Page Follows] 
  

 32 

 IN WITNESS WHEREOF, Seller, Guarantors and Buyer have caused their names to be signed to this Master
Repurchase Agreement by their respective officers thereunto duly authorized as of the date first above written. 
  

	 NC CAPITAL CORPORATION, as Seller

		
	By:	 	 /s/    KEVIN
CLOYD

	 Name:
	 	 Kevin Cloyd

	 Title:
	 	 President

  

	 BANK OF AMERICA, N.A., as Buyer and
 Agent, as applicable

		
	By:	 	 /s/    GARRETT
DOLT        

	 Name:
	 	Garrett Dolt
	 Title:
	 	Principal

  
 Acknowledged and Agreed:

  

	 NEW CENTURY MORTGAGE CORPORATION,
 as Guarantor

		
	By:	 	 /s/    KEVIN
CLOYD

	 Name:
	 	 Kevin Cloyd

	 Title:
	 	 Senior Vice President

  

	 NEW CENTURY FINANCIAL CORPORATION,
 as Guarantor

		
	By:	 	 /s/    PATRICK
FLANAGAN

	 Name:
	 	 Patrick Flanagan

	 Title:
	 	 Executive Vice President

  

 ANNEX I 
  
 BUYER ACTING AS AGENT 
  
 This Annex I forms a part of the Master Repurchase Agreement dated as of December 2, 2003 (the “Agreement”) between Bank of America, N.A. and NC
Capital Corporation. This Annex I sets forth the terms and conditions governing all transactions in which a party selling assets or buying assets, as the case may be (“Agent”), in a Transaction is acting as agent for one or more third
parties (each, a “Principal”). Capitalized terms used but not defined in this Annex I shall have the meanings ascribed to them in the Agreement. 
  

	1.	Additional Representations. Agent hereby makes the following representations, which shall continue during the term of the Transaction: Principal has duly authorized Agent to
execute and deliver the Agreement on its behalf, has the power to so authorize Agent and to enter into the Transaction contemplated by the Agreement and to perform the obligations of Seller or Buyer, as the case may be, under the Transactions, and
has taken all necessary action to authorize such execution and delivery by Agent and such performance by it. 

  

	2.	Identification of Principals. Agent agrees (a) to provide the other party, prior to the date on which the parties agree to enter into the Transaction under the Agreement,
with a written list of Principals for which it intends to act as Agent (which list may be amended in writing from time to time with the consent of the other party) and (b) to provide the other party, before the close of business on the next business
day after orally agreeing to enter into the Transaction, with notice of the specific Principal or Principals for whom it is acting in connection with such transaction. If (i) Agent fails to identify such Principal or Principals prior to the close of
business on such next business day or (ii) the other party shall determine in its sole discretion any Principal or Principals identified by Agent are not acceptable to it, the other party may reject and rescind the Transaction with such Principal or
Principals, return to Agent any Purchased Assets or portion of the Purchase Price, as the case may be, previously transferred to the other party and refuse any further performance under the Transaction, and Agent shall immediately return to the
other party any portion of the Purchase Price or Purchased Assets, as the case may be, previously transferred to Agent in connection with the Transaction; provided, however, that (A) the other party shall promptly (and in any event within one
business day) notify Agent of its determination to reject and rescind the Transaction and (B) to the extent that any performance was rendered by any party under the Transaction rejected by the other party, such party shall remain entitled to any
Price Differential or other amounts that would have been payable to it with respect to such performance if the Transaction had not been rejected. The other party acknowledges that Agent shall not have any obligation to provide it with confidential
information regarding the financial status of its Principals; Agent agrees, however, that it will assist the other party in obtaining from Agent’s Principals such Information regarding the financial status of such Principals as the other party
may reasonably request. 

  

	3.	 Limitation of Agent’s Liability. The parties expressly acknowledge that if the representations of Agent under the Agreement, including this Annex I, are
true and correct in all material respects during the term of the Transaction and Agent otherwise complies with the provisions of this Annex I, then (a) Agent’s obligations under the Agreement shall not include a 

  

 Annex - 1 

	 	 
guarantee of performance by its Principal or Principals; provided that Agent shall remain liable for performance pursuant to Section 10 of the Agreement, and
(b) the other party’s remedies shall not include a right of setoff in respect of rights or obligations, if any, of Agent arising in other transactions in which Agent is acting as principal. 

  

	4.	Multiple Principals. 

  

	 	(a)	Reserved. 

  

	 	(b)	In the event that Agent and the other party elect (or are deemed to elect) to treat the Transaction under the Agreement as transactions on behalf of separate Principals, the parties
agree that (i) Agent will provide the other party, together with the notice described in Section 2(b) of this Annex I, notice specifying the portion of the Transaction allocable to the account of each of the Principals for which it is acting; (ii)
the portion of the Transaction allocable to each Principal shall be deemed a separate Transaction under the Agreement; (iii) the margin maintenance obligations of Seller under Section 6(a) of the Agreement shall be determined on a
Transaction-by-Transaction basis (unless the parties agree to determine such obligations on a Principal-by-Principal basis); and (iv) Buyer’s and Seller’s remedies under the Agreement upon the occurrence of an Event of Default Shall be
determined as if Agent had entered into a separate Agreement with the other party on behalf of each of its Principals. 

  

	 	(c)	Reserved. 

  

	 	(d)	Notwithstanding any other provision of the Agreement (including, without limitation, this Annex I), the parties agree that the Transaction by Agent on behalf of an employee benefit
plan under ERISA shall be treated as a Transaction on behalf of separate Principals in accordance with Section 4(b) of this Annex I (and all margin maintenance obligations of the parties shall be determined on a Transaction-by-Transaction basis).

  

	5.	Interpretation of Terms. All references to “Seller” or “Buyer”, as the case may be, in the Agreement shall, subject to the provisions of this Annex I
(including, among other provisions, the limitations on Agent’s liability in Section 3 of this Annex 1), be construed to reflect that (i) each Principal shall have, in connection with the Transaction or Transactions entered into by Agent on its
behalf, the rights, responsibilities, privileges and obligations of a “Seller” or “Buyer”, as the case may be, directly entering into such Transaction or Transactions with the other party under the Agreement, and (ii)
Agent’s Principal or Principals have designated Agent as their sole agent for performance of Seller’s obligations to Buyer or Buyer’s obligations to Seller, as the case may be, and for receipt of performance by Buyer of its
obligations to Seller or Seller of its obligations to Buyer, as the case may be, in connection with the Transaction or Transactions under the Agreement (including, among other things, as Agent for each Principal in connection with transfers of
Securities, cash or other property and as agent for giving and receiving all notices under the Agreement). Both Agent and its Principal or Principals shall be deemed “parties” to the Agreement and all references to a “party” or
“either party” in the Agreement shall be deemed revised accordingly. 

  

 Annex - 2

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