Document:

Aircraft Mortgage and Security Agreement, dated March 31, 2004

 Exhibit 10(f) 
  
 EXECUTION VERSION 
  
 AIRCRAFT MORTGAGE AND SECURITY AGREEMENT 
  
 THIS AIRCRAFT MORTGAGE AND SECURITY AGREEMENT (“Mortgage”) dated as of March 31, 2004 by and among ABX AIR, Inc. (the
“Borrower”), a Delaware corporation (the “Initial Grantor” and together with any additional Domestic Subsidiaries, whether now existing or hereafter formed which become parties to this Mortgage by executing a
Supplement hereto in substantially the form of Annex I, the “Grantors”), and BANK ONE, NA, in its capacity as administrative agent (the “Administrative Agent”) for the “Holders of Secured
Obligations” (as such term is defined in the “Credit Agreement” defined below). 
  
 PRELIMINARY STATEMENT 
  
 The
Borrower, is party to that certain Credit Agreement among the Borrower, the lenders from time to time parties thereto as “Lenders”, the “LC Issuer”, and the Administrative Agent (as the same may be hereafter amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”; unless otherwise defined herein, capitalized terms are used herein as therein defined) providing for the making of Loans, Advances and other financial
accommodations to or for the benefit of, and the issuance of Letters of Credit for the account of, the Borrower and its Subsidiaries. As a condition to the Lenders and LC Issuer entering into the Credit Agreement and making credit facilities
available thereunder, the Lenders and LC Issuer have required that the Grantors shall have granted the security interest contemplated by this Mortgage for the benefit of the Administrative Agent, Lenders, LC Issuer and other Holders of Secured
Obligations on the terms and conditions hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the premises set forth herein and in order to induce the Lenders to make Loans, Advances and other financial accommodations and the LC Issuer to issue Letters of Credit under the Credit Agreement, the
Grantors hereby agree with the Administrative Agent, for its benefit and the benefit of the other Holders of Secured Obligations, as follows: 
  
 ARTICLE I 
  
 CERTAIN DEFINITIONS 
  
 SECTION 1.01. Certain Defined Terms. When used herein, the following terms shall have the following meanings: 
  
 “Act” means the United States Federal Aviation Act of 1958, as amended from time to time, and as recodified in Subtitle
VII of Title 49 of the United States Code, as the same may be in effect from time to time, together with the Federal Aviation Regulations of the FAA, or any similar legislation of the United States enacted to supersede, amend or supplement such Act
and Regulations. 
  
 “Aircraft”
means, collectively, each Airframe and certain of the Engines and Propellers described in Schedule I hereto or in Schedule I to any Supplement 

 related to such Airframe, whether or not such Engines or Propellers shall be (when originally mortgaged
hereunder or at any time and from time to time thereafter) installed on such Airframe. 
  
 “Airframe” means each airframe (that is, an Aircraft except for the Propellers, propellers, Engines or engines from time
to time installed thereon) either originally mortgaged hereunder and described in Schedule I hereto or hereafter mortgaged hereunder pursuant to Section 2.02 below and described in Schedule I to a Supplement, together with, in
the case of each airframe referred to above, any and all Appliances (other than complete Engines or Propellers) so long as the same shall be incorporated or installed in or attached to such airframe. 
  
 “Appliances” means all appliances
(including, without limitation, “appliances,” as defined in Section 101 of the Act), instruments, equipment, apparatus, parts, appurtenances, or accessories used, capable of being used, or intended to be used, in operating or controlling
aircraft in flight, including parachutes, communication equipment, accessions, attachments, furnishings, auxiliary power units, landing gear, flight instruments, seats, avionics, radios, radar, navigation systems, galleys and any other mechanism
installed in or attached to, but not a part of, any Airframe, Engine or Propeller during flight, which are originally mortgaged hereunder and described in Schedule I hereto or hereafter mortgaged hereunder pursuant to Section 2.02
below and described in Schedule I to a Supplement. 
  
 “Books and Records” means all now owned and hereafter acquired books, records (including inspection, modification and overhaul records), logs (including, flight logs and flight records), logbooks,
manuals, maintenance records, bills of sale, bills of lading, documents of title and other data applicable to any Aircraft, Airframe, Engine, Propeller, Appliances and Spare Parts. Where applicable, any reference to Airframes, Engines, Propellers,
Appliances or Spare Parts includes a reference to the Books and Records applicable thereto, whether or not such reference is expressly made. 
  
 “Collateral” means all (i) Aircraft; (ii) Airframes; (iii) Spare Parts; (iv) Engines; (v) Propellers; (vi) Appliances;
(vii) all right, title and interest of the Grantors in and to any lease, rental agreement, charter agreement, or other agreements now or hereafter executed with respect to any of the Aircraft, Airframes, Engines, Propellers, Spare Parts or
Appliances, including, but not limited to, Grantors’ right to receive, either directly or indirectly, from any party or person, any rents or other payments due under such agreements; (viii) all Books and Records; and (ix) all Proceeds.

  
 “Default” shall mean a
Default as defined in the Credit Agreement. 
  
 “Engine” means each aircraft engine originally mortgaged hereunder and described in Schedule I hereto or hereafter mortgaged hereunder pursuant to Section 2.02 below and described in Schedule I to a
Supplement, together with, in the case of each aircraft engine referred to above, any and all Appliances so long as the same shall be incorporated or installed in or attached to such aircraft engine. 
  

 2 

 “FAA” means the Federal Aviation Administration, and any successor
agency thereto. 
  
 “Proceeds”
means whatever is receivable or received when any Aircraft, Airframe, Engine, Propeller, Spare Part, Appliance, Books and Records applicable thereto or any other portion of the Collateral, is at any time and from time to time sold, exchanged,
collected, leased or otherwise disposed of, including, without limitation, all rents, profits and issue earned by any Grantor and all other right, title and interest of the Grantors under leases of any Airframe, Engine, Propeller, Spare Part,
Appliance or any other portion of the Collateral pursuant to which any Grantor is the lessor, and all amounts payable or paid under insurance, requisition or other payments as the result of any loss or damage to any Airframe, Engine, Propeller,
Spare Part, Appliance, or any other portion of the Collateral. 
  
 “Propeller” means each aircraft propeller originally mortgaged hereunder and described in Schedule I hereto or hereafter mortgaged hereunder pursuant to Section 2.02 below and described
in Schedule I to a Supplement, together with, in the case of each aircraft propeller referred to above, any and all Appliances so long as the same shall be incorporated or installed in or attached to such aircraft propeller. 
  
 “Spare Parts” means any (i) engines that
are maintained for installation or use on an Aircraft and are not identified as an Engine on Schedule I, (ii) propellers that are maintained for installation or use on an Aircraft, Engine or engine and are not identified as a Propeller on
Schedule I, (iii) Appliances, (iv) instruments, apparatus, parts, accessories, appurtenances, appliances, rotables, expendables, repairables, avionics and other components and parts of any Aircraft (except Engines and Propellers), of Engines,
Propellers or Appliances, or of any other engines or propellers described on Schedule I, which are now or in the future owned, leased or held by or on behalf of any Grantor in connection with the use, operation or maintenance of Aircraft,
Engines, Propellers or Appliance, including, without limitation, any of the foregoing which are or from time to time may be located at the Spare Parts Locations described in Schedule I hereto. 
  
 “Spare Parts Locations” means the locations
where Spare Parts are maintained by or on behalf of the Borrower and described in Schedule I hereto or in Schedule I to a Supplement. 
  
 “Supplement” means any supplement to this Mortgage, in substantially the form of Exhibit A attached hereto and
made a part hereof, executed by the Grantors pursuant to Section 2.02. 
  

 3 

 SECTION 1.02. Other Definitions. (a) The words “hereof,” “herein” and
“hereunder” and words of similar import, when used in this Mortgage, shall refer to this Mortgage as a whole and not to any particular provision of this Mortgage and all section references herein are to this Mortgage unless otherwise
specified. 
  
 (b) Unless otherwise defined herein or in the
Credit Agreement, all terms defined in the Act and Article 8 and Article 9 of the Uniform Commercial Code in effect as of the date hereof in the State of Ohio are used herein as defined therein. 
  
 ARTICLE II 
  
 GRANTING CLAUSES; SUBSEQUENTLY MORTGAGED EQUIPMENT; 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 2.01. Mortgage and Grant of Security Interest. Each Grantor hereby mortgages and grants to the Administrative Agent, for the benefit of the
Holders of Secured Obligations, a security interest in the following property as security for the due and prompt payment and performance of the Secured Obligations: 
  
 (a) each Aircraft, Airframe, Engine and Propeller described in Schedule I hereto; 
  
 (b) each Aircraft, Airframe, Engine and Propeller described
in Schedule I to any Supplement from time to time hereafter executed and delivered by such Grantor pursuant to Section 2.02 below; 
  
 (c) each Spare Part located at the Spare Parts Locations described in Schedule I hereto or in Schedule I to any Supplement
from time to time hereafter executed and delivered by such Grantor pursuant to Section 2.02 below; 
  
 (d) all Books and Records; 
  
 (e) all Proceeds of all or any of the Aircraft, Airframes, Engines, Propellers, Appliances, Spare Parts and Books and Records; and

  
 (f) all other portions of the Collateral.

  
 SECTION 2.02. Subsequently Mortgaged Equipment. (a)
Each Grantor shall subject each aircraft, airframe, aircraft engine capable of absorbing 750 or more takeoff horsepower (or the equivalent thrust), and propeller rated 750 or more takeoff shaft horsepower (or the equivalent thereof), appliance and
spare part which is hereafter acquired by such Grantor to the Lien of this Mortgage by complying with the requirements of the immediately succeeding sentence within ten (10) days immediately following such acquisition. Whenever any Grantor shall be
required to subject any property to the Lien of this Mortgage (whether pursuant to the immediately preceding sentence or pursuant to Section 3.05 hereof), such Grantor will: 
  
 (1) execute and deliver to the Administrative Agent or any Person designated by the Administrative Agent,
and duly file for recording under the Act, a Supplement properly describing such Aircraft, Airframe, Engine, Propeller, Spare Part and Spare Parts Location; 
  

 4 

 (2) deliver to the Administrative Agent or any Person designated by the Administrative
Agent evidence satisfactory to the Administrative Agent, including, without limitation, certificates of insurance and certified policy endorsements, as to the due compliance by such Grantor with the insurance provisions of Section 3.05 hereof
with respect to the Collateral; and 
  
 (3)
deliver to the Administrative Agent or any Person designated by the Administrative Agent all filing or recording receipts and acknowledgments issued by any Governmental Authority in connection with the filing or recording of such Supplement.

  
 (b) Until the termination of this Mortgage pursuant to
Section 5.06 hereof, the Grantors shall deliver to the Administrative Agent, on a quarterly basis and no later than [forty-five (45)] days after the close of each calendar quarter commencing with June 30, 2004, a statement of collateral in
the form of Exhibit B hereto (“Statement of Collateral”), which shall list each Aircraft, Airframe, Engine, Propeller, Appliance and Spare Part acquired or sold by any Grantor during the immediately preceding quarter (the
“Statement Period”) and set forth in detail (i) the dates of each acquisition and sale completed during the applicable Statement Period, (ii) the makes, models, serial numbers and where applicable, the United States registration
numbers, of each such Aircraft, Airframe, Engine, Propeller, Appliance and Spare Part acquired or sold during the applicable Statement Period, if applicable, (iii) the value given or received for each such acquisition or sale and (iv) the date of
recordation of each Supplement filed with the FAA during the applicable Statement Period pursuant to Section 2.02(a) and the conveyance numbers. 
  
 (c) So long as no Default has occurred and is continuing and the Administrative Agent has not given the Borrower written notice under this Section
2.02(c), each Grantor may sell, transfer, lease or otherwise dispose of any Collateral subject to the Lien of this Mortgage, provided that such sale, lease, transfer or disposal constitutes, in the commercially reasonable judgment of the
Administrative Agent, the ordinary course of such Grantor’s business. Upon any sale, transfer or disposal (other than a lease) of Aircraft, Airframe, Engine, Propeller, Appliance and Spare Part permitted under the first sentence of this
Section 2.02(c) and under the Credit Agreement and so long as no Default has occurred and is continuing, the Administrative Agent, upon the request of the Borrower, will cause the Lien created hereunder on such Collateral to be released by
filing with the FAA (either by itself or through its designated agent) appropriate release documents. 
  
 (d) All expenses incurred by the Administrative Agent or its designated agent in connection with the implementation of this Section 2.02,
including, without limitation, reasonable attorney’s and paralegal’s fees and expenses for effectuating the recordation and releases as provided in Section 2.02(b) and (c) above, shall be paid by and for the sole account of
the Grantors and shall be added to the Secured Obligations secured hereby. 
  

 5 

 SECTION 2.03. Representations and Warranties. Each Grantor represents and warrants that, in the
case of the Collateral initially or subsequently mortgaged hereunder, on the date of this Mortgage, or on the date such Collateral is mortgaged hereunder, as applicable: 
  
 (a) Such Grantor is and shall be a “citizen of the United States” as defined in the Act and has
good and marketable title to the Collateral; the Collateral is free and clear of all Liens other than the Lien of this Mortgage, and Liens permitted by the terms of Section 3.02 hereof; each Aircraft and Airframe is and shall be duly
registered in the name of such Grantor in accordance with the Act and has and shall have in full force and effect a certificate of airworthiness duly issued pursuant to such Act; and each Engine, Propeller, Appliance and Spare Part complies with all
applicable airworthiness standards of the FAA or is maintained in accordance with a FAA approved program, if applicable; 
  
 (b) This Mortgage is, and each Supplement properly describing an Aircraft, Airframe, Engine, Propeller, Spare Part or Spare Part Location
shall be, in proper form to be duly filed for recording in accordance with the Act against the Collateral; and this Mortgage constitutes, and this Mortgage as supplemented by such Supplement shall constitute, the legal, valid and binding obligation
of such Grantor, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency or other similar laws or by principles of equity, and shall constitute, upon recordation by the FAA, a duly perfected
(valid as to all persons) mortgage on and security interest in the Collateral, senior in lien priority to all competing Liens. 
  
 (c) All necessary approvals, authorizations, consents, licenses, certificates and orders of the United States Department of
Transportation, the FAA and any other federal regulatory authority having jurisdiction with respect to the ownership, use and operation of the Collateral have been obtained, and such approvals, authorizations, consents, licenses, certificates or
orders are in full force and effect and constitute sufficient authorization therefor. 
  
 (d) Each such Aircraft and Airframe has been duly registered in the name of such Grantor under Section 44102 of the Act and no such
Aircraft or Airframe is registered under the laws of any foreign country. 
  
 (e) No Default or Unmatured Default has occurred and is continuing. 
  
 (f) Schedule I hereto, together with Schedule I to each Supplement hereto, accurately and completely describes all Spare
Parts Locations and all Aircraft, Airframes, Engines, Propellers and Spare Parts owned by such Grantor, the United States Registration Number of each such Aircraft and Airframe, the manufacturer’s serial number and model type of each such
Aircraft, Airframe, Propeller, Engine and Spare Part. Each Engine is rated 750 or more takeoff horsepower and each Propeller is capable of absorbing 750 or more shaft horsepower. 
  

 6 

 (g) Each Grantor is, and shall at all times during the effectiveness of this Mortgage be,
a “Certified Air Carrier”, that is an air carrier holding a certificate issued by the FAA pursuant to Section 44705 of Title 49 of the Unite States Code, as may be amended, modified, recodified or supplemented from time to time, together
with all rules, regulations and interpretations related thereto. 
  
 (h) All of the locations of Spare Parts and Appliances are designated as Spare Parts Locations on Schedule I hereto and, subject to Section 3.01(c) below, the Grantors will maintain, keep and hold all
Spare Parts and Appliances only at the Spare Parts Locations designated on Schedule I hereto. 
  
 ARTICLE III 
  
 COVENANTS 
  
 SECTION 3.01. Registration; Maintenance
and Operation. (a) Each Grantor, at its own cost and expense, will: (i) cause each Aircraft and Airframe to be duly registered, and at all times thereafter to remain duly registered, in the name of such Grantor in accordance with the Act; (ii)
maintain, service, repair, overhaul and test each Aircraft, Airframe, Engine, Propeller, Appliance and Spare Part so as to keep the same in as good operating condition as when originally mortgaged hereunder, ordinary wear and tear excepted, and, in
the case of each Aircraft and Airframe, in such condition as may be necessary to enable the airworthiness certification of such Aircraft and Airframe to be maintained in good standing at all times under the Act; and (iii) maintain all Books and
Records and other materials required by the FAA to be maintained in respect of the Collateral. 
  
 (b) Each Grantor agrees that the Aircraft, Airframes, Engines, Propellers, Appliances or Spare Parts will not be maintained, used or operated: (i) in violation of any law or any rule, regulation or order of any
government or Governmental Authority having jurisdiction (domestic or foreign), or in violation of any airworthiness certificate, license or registration relating to any Aircraft issued by any such authority; (ii) in any area excluded from coverage
by any insurance required by the terms of Section 3.05 below; or (iii) in any jurisdiction which is not a signatory to the Geneva Convention on International Recognition of Rights in Aircraft or in any recognized or threatened area of
hostilities. 
  
 (c) Each Grantor will not remove, maintain or
transfer any Spare Parts or Appliances to any location other than those designated on Schedule I, unless such Grantor (i) gives the Administrative Agent thirty (30) days prior written notice of the intended removal, maintenance or transfer of
any Spare Parts or Appliances to a location not designated on Schedule I annexed hereto and (ii) promptly executes and delivers to the Administrative Agent a Supplemental Schedule I or such other agreements, documents and instruments (and
takes such further action) as Administrative Agent may deem reasonably necessary or desirable to perfect and protect its interest in the Collateral, including the recordation of appropriate instruments with the FAA and the filing of financing
statements under the Uniform Commercial Code. 
  

 7 

 (d) In the event that during the effectiveness of this Mortgage, any Grantor shall be required or be
permitted to place on, affix to or install upon any Aircraft or any Engine or Propeller or any other aircraft engine or propeller, any of the Engines, Propellers, Spare Parts or Appliances in replacement of those then placed on, affixed to or
installed on the Aircraft or such Engine or Propeller, such Grantor may do so provided that, in addition to any other requirements provided for in this Mortgage: 
  
 (i) the Administrative Agent is not divested of its security interest in and lien upon any Aircraft,
Engines, Propellers, Spare Parts, or Appliances placed, installed or affixed to, in or on the Aircraft and that no such placed, affixed or installed item shall be or become subject to the lien, security interest or claim of any person except for the
Administrative Agent on behalf of the Holders of Secured Obligations except as permitted under the Credit Agreement or other Loan Documents; 
  
 (ii) such Grantor’s title to every such placed, affixed or installed item shall continue to be subject to the security interest and
lien of the Administrative Agent, and each of the provisions of this Mortgage, and each such item shall remain so encumbered and so subject except as permitted under the Credit Agreement or other Loan Documents; 
  
 (iii) the item which is removed shall be and/or remain
subject to the first and prior security interest and lien of the Administrative Agent except as permitted under the Credit Agreement or other Loan Documents; and 
  
 (iv) no breach or default under any lease, mortgage or other agreement governing the Aircraft or any Engine
or Propeller or any other engine or propeller shall occur by reason of such placement, installation, affixation or removal of such items as provided herein. 
  
 (e) In the event that any of the Engines, Propellers, Spare Parts or Appliances are installed upon any Aircraft or upon any Engine or Propeller or other
aircraft engine or propeller, then, without limiting the Administrative Agent’s other rights, such additional item shall not be considered as an accession to such Aircraft, Engine, Propeller, other aircraft engine or propeller. 
  
 SECTION 3.02. Liens. Except as permitted under the Credit Agreement or
the other Loan Documents, each Grantor (i) will not create or suffer to exist any Lien upon or with respect to the Collateral except for the Lien of this Mortgage, and with respect to any Aircraft undergoing conversion, Liens imposed by law, such as
landlords’, wage earners’, carriers’, warehousemen’s and mechanics’ liens and other similar liens arising in the ordinary course of business and (ii) shall promptly, at its own expense, take such action as may be necessary
to duly discharge any such Lien, except for the Lien created by this Mortgage and existing Liens permitted under Schedule 6.15 of the Credit Agreement. 
  
 SECTION 3.03. Taxes. Each Grantor will pay, and hereby indemnifies the Administrative Agent from and against, any and all fees and taxes, levies,
imposts, duties, charges or withholdings together with any penalties, fines or interest thereon (any of the foregoing, for the purposes of this Section 3.03, being called a “Tax”), which may from time to 
  

 8 

 time be imposed on or asserted against the Administrative Agent or the Collateral or any interest therein by any Federal,
state or local government or other taxing authority in the United States or by any foreign government or subdivision thereof or by any foreign taxing authority upon or with respect to: (a) any Aircraft, Airframe, Engine, Propeller, Appliance or
Spare Part or any interest therein, (b) the manufacture, purchase, ownership, mortgaging hereunder, lease, sublease, use, storage, maintenance, sale or other disposition any Aircraft, Airframe, Engine, Propeller, Appliance or Spare Part, (c) any
rentals or other earnings payable therefor or arising therefrom or the income or other proceeds received with respect thereto, or (d) this Mortgage; provided, however, that, unless the payment of any such Tax shall be a condition to
the enforceability of this Mortgage or the perfection of the Lien hereof or unless proceedings shall have been commenced to foreclose any Lien which may have attached as security for such Tax, nothing in this Section 3.03 shall require the
payment of any Tax so long as and to the extent that the validity thereof shall be contested in good faith by appropriate legal proceedings and such Grantor shall have set aside on its books adequate reserves with respect thereto. 
  
 SECTION 3.04. Possession. Except as provided in Section 2.02(c)
hereof, each Grantor will not, without the prior written consent of the Administrative Agent, lease, sublease or otherwise in any manner deliver, transfer or relinquish possession or control of, or transfer any right, title or interest of such
Grantor in the Collateral or install any Engine, Propeller, Appliance or Spare Part, or permit any Engine, Propeller, Appliance or Spare Part to be installed, on any airframe other than an Aircraft or Airframe. 
  
 SECTION 3.05. Insurance. (a) Each Grantor at its expense shall carry
insurance with respect to the Collateral as required pursuant to the Credit Agreement, together with such endorsements in favor of the Administrative Agent as are required under the Credit Agreement. 
  
 (b) Upon the occurrence and continuance of a Default, all insurance payments
received by the Administrative Agent or any Grantor with respect to the Collateral shall be (if received by any Grantor, immediately paid to the Administrative Agent) held and applied by the Administrative Agent against the Secured Obligations as
provided under the Credit Agreement or, as provided in the Pledge and Security Agreement, be paid by the Administrative Agent to, or be retained by, such Grantor for application by such Grantor to the repair of the damage to the Aircraft, Airframe,
Engine, Propeller, Appliance or Spare Part for which such insurance was paid. 
  
 SECTION 3.06. Inspection. Each Grantor will permit the Administrative Agent by its officers or agents to inspect any and all of the Collateral including, without limitation, the Books and Records, at such
reasonable times as the Administrative Agent may from time to time request. 
  
 SECTION 3.07. The Administrative Agent’s Right to Perform for the Grantor. If any Grantor fails to perform or comply with any of its agreements contained herein, the Administrative Agent may perform or
comply with such agreement, and the amount of the costs and expenses incurred in connection with the performance of or compliance with such agreement, shall be payable to the Administrative Agent by such Grantor on demand and shall be secured by the
Lien of this Mortgage and the other Collateral. 
  

 9 

 SECTION 3.08. Further Assurances. Each Grantor at its expense will promptly and duly execute and
deliver such documents (including original bills of sale and other documents of title with respect to any Aircraft, Airframes, Aircraft, Propellers, Engines, Appliances or Spare Parts) and assurances and take such action as may be reasonably
necessary, or as the Administrative Agent may from time to time reasonably request, in order to more effectively carry out the intent and purpose of this Mortgage and to establish, protect and perfect the rights, remedies and security interests
created or intended to be created in favor of the Administrative Agent for the benefit of the Holders of Secured Obligations hereunder, including, without limitation, taking commercially reasonable steps to procure a waiver or release of any Lien
relating to any Aircraft, Airframe, Engine, Propeller, Appliance or Spare Part held by any mechanic, bailee, or by any landlord of premises on which any Aircraft, Airframe, Engine, Propeller, Appliance or Spare Part may be now or hereafter located,
or by any other person or entity holding a Lien not of public record against any portion of the Collateral which is not otherwise permitted under the Credit Agreement or other Loan Documents; provided, however, any Grantor’s failure to obtain
such waiver or release of Lien shall not constitute a Default. In the event any Grantor is unable to obtain such waiver or release of Lien, the respective Aircraft, Airframe, Engine, Propeller, Appliance or Spare Part shall not be included within
the definition of Eligible Aircraft or Eligible Engine under the terms of the Credit Agreement. 
  
 ARTICLE IV 
  
 EVENTS OF DEFAULT
AND REMEDIES 
  
 SECTION 4.01. Remedies. If any Default
shall have occurred and be continuing: 
  
 (a) The Administrative
Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the Uniform Commercial Code in effect in
the State of Ohio at that time (the “Uniform Commercial Code”) (whether or not the Uniform Commercial Code is applicable thereto). The Administrative Agent also may (i) without notice, demand or legal process of any kind, all of
which each Grantor hereby waives to the extent permitted by applicable law, at any time or times enter any Grantor’s premises and either (x) take physical possession of the Collateral and maintain such possession on such Grantor’s premises
and continue the operation of such Grantor’s business at such premises, at no cost to the Administrative Agent, or (y) remove the Collateral or any part thereof, to such other places as the Administrative Agent may desire, (ii) require any
Grantor to, and each Grantor hereby agrees that it will at its own expense and upon request of the Administrative Agent forthwith, assemble all or part of the Collateral as directed by the Administrative Agent and make them available to the
Administrative Agent at a place to be designated by the Administrative Agent which is reasonably convenient to both parties, and (iii) without notice, except as specified below, sell, lease, assign, grant an option or options to purchase or
otherwise dispose of the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Administrative Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the
Administrative Agent may deem commercially reasonable. The Administrative Agent agrees that it will notify such Grantor of the intended disposition of any of the Collateral within a commercially reasonable time prior to such intended disposition,
the time of delivery of which notice the parties agree shall in no event be required to be greater 
  

 10 

 than ten (10) Business Days. The Administrative Agent shall not be obligated to make any sale of any of the Collateral
regardless of notice of sale having been given. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned. 
  
 (b) TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EXCEPT AS REQUIRED UNDER THE CREDIT AGREEMENT OR OTHER LOAN DOCUMENTS EACH GRANTOR HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR TO THE EXERCISE BY THE ADMINISTRATIVE AGENT OF ITS RIGHTS TO
(I) REPOSSESS THE COLLATERAL WITHOUT JUDICIAL PROCESS OR (II) REPLEVY, ATTACH OR LEVY UPON SUCH COLLATERAL WITHOUT PRIOR NOTICE OR HEARING. 
  
 (c) The Administrative Agent is hereby irrevocably appointed the true and lawful attorney of each Grantor, in its name and stead, to make all necessary
conveyances of the Collateral so sold. Nevertheless, if so requested by the Administrative Agent or by any purchaser, such Grantor shall confirm any such sale or conveyance by executing and delivering all proper instruments of conveyance or releases
as may be designated in such request. 
  
 (d) Notwithstanding any
contrary provision of this Article IV or any other provision of this Mortgage, in no event shall the Administrative Agent be deemed to have waived its right to cause any portion of the Collateral to be seized by a sheriff or United States
Marshall or be subject to foreclosure and sale by judicial process. 
  
 SECTION 4.02. Quiet Use and Enjoyment. Subject to the Administrative Agent’s rights and remedies otherwise set forth in this Article IV, so long as no Default shall have occurred and be continuing, the Administrative
Agent hereby agrees that it will not disturb or interfere with the quiet use, operation or enjoyment by any lessee of the Collateral which is subject to the Lien of this Mortgage which has been leased to any such lessee by any Grantor as permitted
under Section 2.02(c) hereof. 
  
 SECTION 4.03. Waiver
of Appraisement, Etc. Each Grantor agrees, to the fullest extent that it lawfully may, that it will not (and hereby irrevocably waives its right to) at any time plead, or claim the benefit or advantage of, any appraisement, valuation, stay,
extension, moratorium, or redemption law now or hereafter in force, in order to prevent or hinder the enforcement of this Mortgage or the absolute sale of the Collateral by Administrative Agent as permitted hereunder. Each Grantor, for itself and
all who may claim under it, waives, to the extent that it lawfully may, all right to have all or any portion of the Collateral marshaled upon any foreclosure hereof. 
  
 SECTION 4.04. Remedies Cumulative. No remedy herein conferred upon the Administrative Agent is intended to be
exclusive of any other remedy, but every such remedy shall be cumulative and shall be in addition to every other remedy herein conferred, conferred in any of the other Loan Documents or now or hereafter existing in law. 
  

 11 

 SECTION 4.05. Delay or Omission; Possession of Notes. (a) No delay or omission of the
Administrative Agent to exercise any right or remedy arising upon the happening of any Unmatured Default or Default shall impair any right or remedy or shall be construed to be a waiver of any such Unmatured Default or Default or an acquiescence
therein; and every right and remedy given to the Administrative Agent by this Article IV or by applicable law may be exercised from time to time and as often as may be deemed expedient by the Administrative Agent. 
  
 (b) All rights of action under this Mortgage may be enforced by the
Administrative Agent without the possession of any promissory note, guaranty or other instrument evidencing all or any portion of the Secured Obligations or the production thereof in any proceeding. 
  
 ARTICLE V 
  
 MISCELLANEOUS PROVISIONS 
  
 SECTION 5.01. Amendments; Etc. No amendment or waiver of any provision of this Mortgage nor consent to any departure by any Grantor herefrom, shall
in any event be effective unless the same shall be in writing and signed by the Administrative Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  
 SECTION 5.02. Administrative Agent’s Duty, Indemnification and
Marshalling. (a) The Administrative Agent shall have no duty with respect to any of the Grantors’ property including, without limitation, Aircraft, Airframes, Engines, Propellers, Appliances, Spare Parts and Books and Records. Without
limiting the generality of the foregoing, the Administrative Agent shall be under no obligation to take any steps necessary to preserve the rights of any Grantor in any of its property including, without limitation, Aircraft, Airframes, Engines,
Propellers, Appliances, Spare Parts and Books and Records, against any other parties but may do so at its option provided that all expenses incurred in connection therewith shall be for the sole account of such Grantor and shall be added to the
Secured Obligations secured hereby. 
  
 (b) To the extent that any
Grantor makes a payment or payments to the Administrative Agent or the Administrative Agent receives any payment or Proceeds for the benefit of any Holder of Secured Obligations, which payment(s) or Proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or
Proceeds received, the Secured Obligations or any part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or Proceeds had not been received by the Administrative Agent. 
  
 SECTION 5.03. Limitation by Law; Severability. (a) All rights,
remedies and powers provided in this Mortgage may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Mortgage are intended to be subject to all applicable
mandatory provisions of law which may be controlling 
  

 12 

 and to be limited to the extent necessary so that they will not render this Mortgage invalid or unenforceable, in whole
or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law. 
  
 (b) If any provision of this Mortgage is held to be prohibited or unenforceable in any jurisdiction the substantive laws of which are held to be
applicable hereto, such prohibition or unenforceability shall not affect the validity or enforceability of the remaining provisions hereof and shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 SECTION 5.04. Binding Effect; Successors and Assigns. This Mortgage
shall be binding upon and inure to the benefit of the parties hereto and shall inure to the benefit of the Holders of Secured Obligations and their respective successors and permitted assigns. Nothing set forth herein, in the Credit Agreement or in
any Loan Document is intended or shall be construed to give any other Person any right, remedy or claim under, to or in respect of this Mortgage, the Credit Agreement, any Loan Document or any of the Grantors’ property including, without
limitation, any of the Collateral. Grantors’ successors and assigns shall include, without limitation, a receiver, trustee or debtor-in-possession thereof or therefor. 
  
 SECTION 5.05. Notices. All notices and other communications provided for hereunder shall be given in the manner and
to the addresses set forth in the Credit Agreement. 
  
 SECTION
5.06. Survival of Representations and Warranties; Nature and Continuation of the Administrative Agent’s Security Interest; Termination of the Administrative Agent’s Security Interest. Each Grantor covenants, warrants, and represents
to the Holders of Secured Obligations that all representations and warranties of such Grantor contained in this Mortgage are true at the time of such Grantor’s execution of this Mortgage, shall survive the execution, delivery and acceptance
hereof by the parties hereto and the closing of the transactions described in the Credit Agreement and the other Loan Documents and shall continue in effect until all of the Secured Obligations shall have been paid in full in cash and the Credit
Agreement has been terminated. This Mortgage shall create a continuing security interest in the Collateral, and shall terminate only when the Secured Obligations have been indefeasibly paid in full in cash and the Credit Agreement has been
terminated or, with respect to a particular item of collateral, when such collateral is released from the lien created hereby in accordance with the terms of Section 2.02(c) hereof or as permitted under the Credit Agreement. 
  
 SECTION 5.07. Governing Law; Terms; Severability. 
  
 (a) CHOICE OF LAW. THIS MORTGAGE SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF OHIO, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. 
  
 (b) If any provision of this Mortgage shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Mortgage. 
  
 SECTION 5.08. No Waiver; Remedies. No failure on the part of the Administrative Agent or any Lender, the LC Issuer or any other Holder of Secured
Obligations to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other
right. 
  

 13 

 SECTION 5.09. Marshalling; Recourse to Security. None of the Holders of Secured Obligations shall
be under any obligation to marshall any assets in favor of any Grantor or any other party or against or in payment of any or all of the Secured Obligations. Recourse to security shall not be required at any time. 
  
 SECTION 5.10. Further Indemnification. Each Grantor agrees to pay, and
to save the Administrative Agent and the Holders of Secured Obligations harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all excise, sales or other similar taxes which may be payable or
determined to be payable with respect to any of such Grantor’s property including, without limitation, any of the Collateral or in connection with any of the transactions contemplated by this Mortgage. 
  
 SECTION 5.11. Counterparts. This Mortgage may be executed in separate
counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. 
  
 [signatures follow] 
  

 14 

 IN WITNESS WHEREOF, the parties hereto have caused this Mortgage to be duly executed, as of the day and
year first above written. 
  

			
	 ABX AIR, INC., as a Grantor

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 BANK ONE, NA, as Administrative Agent

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 Aircraft
Mortgage and Security Agreement 

 ANNEX I 
  
 to 
  
 AIRCRAFT MORTGAGE AND 
  
 SECURITY AGREEMENT 
  
 Reference
is hereby made to the Aircraft Mortgage and Security Agreement (the “Mortgage”), dated as of March 31, 2004, made by each of ABX AIR, INC., a Delaware corporation (the “Borrower”) (the “Initial
Grantor”, and together with any additional Domestic Subsidiaries, including the undersigned, which become parties thereto by executing a Supplement in substantially the form hereof, the “Grantors”), in favor of the
Administrative Agent. Capitalized terms used herein and not defined herein shall have the meanings given to them in the Mortgage. By its execution below, the undersigned, [NAME OF NEW GRANTOR], a
[                                        
        ] [corporation/limited liability company] agrees to become, and does hereby become, a Grantor under the Mortgage and agrees to be bound by such Mortgage as if originally a party thereto. By its
execution below, the undersigned represents and warrants as to itself that all of the representations and warranties contained in the Mortgage are true and correct in all respects as of the date hereof. [NAME OF NEW GRANTOR] represents and warrants
that the supplements to the Exhibits to the Mortgage attached hereto are true and correct in all respects and such supplements set forth all information required to be scheduled under the Mortgage. [NAME OF NEW GRANTOR] shall take all steps
necessary to perfect, in favor of the Administrative Agent, a first-priority security interest in and lien against [NAME OF NEW GRANTOR]’s Collateral. 
  
 IN WITNESS WHEREOF, [NAME OF NEW GRANTOR], a
[                                    ] [corporation/limited
liability company] has executed and delivered this Annex I counterpart to the Mortgage as of this      day of                 ,
        . 
  

			
	 [NAME OF NEW GRANTOR]

		
	 By:
	 	  

	 Title:
	 	  

  
 Aircraft
Mortgage and Security AgreementMaster Repurchase Agreement, dated March 10, 2004

 Exhibit 10.1 
  
 MASTER REPURCHASE AGREEMENT 
  

Dated as of March 10, 2004 
  
 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, from time to time, upon the terms and conditions set forth
herein, agree to enter into transactions 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. Each such transaction shall be referred to herein as a “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. 
  
 “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 any 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. 
  
 “Confirmation” shall have the meaning assigned thereto in Section 4(b) hereof. 
  
 “Custodian” means Deutsche Bank National Trust Company, or its successors and permitted assigns. 
  
 “Custody Agreement” means the Amended and Restated Custodial
Agreement, dated as of December 2, 2003 among Seller, Buyer, NCMC, New Century Funding A 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. 
  

 2 

 “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 March 10, 2004. 
  
 “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 partnerships of which such Person is a general partner; and (j) any other contingent liabilities of such Person. 
  

 3 

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

 4 

 “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 March 10, 2004 between NCMC and Seller. 
  
 “Master Netting Agreement” means the Master Collateral Security and Master Netting Agreement dated as of March 10, 2004, 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. 
  
 “Notice Date” shall have the meaning assigned thereto in Section 4 hereof. 
  
 “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, 
  

 5 

 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 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 each Transaction as of any date, the aggregate amount obtained by daily application of the
Pricing Rate for such 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 such 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 a 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. 
  

 6 

 “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 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 any 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. 
  
 “Replaced Transactions” shall have the meaning assigned thereto in Section 15(b) hereof. 
  
 “Repurchase Date” shall mean the earliest of (i) April 30, 2004, (ii) the date the Loans are subject to a securitization or other
transfer, or (iii) the 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 a 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.

  

 7 

 “Side Letter” means the pricing side letter, dated as of March 10, 2004, among Seller,
Guarantors and Buyer. 
  
 “Subsidiary” means,
with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such corporation, partnership or other
entity shall have or might have voting power by reason 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). 
  
 “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 Section 13(s) 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 related initial Purchase Date, the documents in the related Loan File have not been
delivered to the Custodian, and thereafter, each date until the documents in the related Loan File have 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 
  

 8 

 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 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 TRANSACTIONS 
  
 a. Seller shall repurchase Purchased Assets from Buyer on the Repurchase Date at the Repurchase Price. The 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. 
  

 9 

 b. Reserved. 
  
 c. Reserved. 
  
 4. ENTERING INTO TRANSACTIONS, TRANSACTION NOTICES, CONFIRMATIONS 
  
 a. Under the terms and conditions of the Program Documents, Buyer hereby
agrees to enter into Transactions with a Purchase Price up to the Maximum Aggregate Purchase Price. Unless otherwise agreed, Seller shall give Buyer and Custodian notice of any proposed Purchase Date in accordance with the terms of the Custody
Agreement (the date on which such notice is so given, the “Notice Date”). On the Notice 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 such Transaction. 
  
 b. In the event that the parties hereto desire to enter into a Transaction on
terms other than as set forth in this Agreement (as amended by the Side Letter), the parties shall execute a written confirmation (each, a “Confirmation”) specifying such terms prior to entering into such Transaction. Any such Confirmation
and the related Transaction Notice, together with this Agreement, shall constitute conclusive evidence of the terms agreed between Buyer and Seller with respect to the Transaction to which the Confirmation relates. In the event of any conflict
between this Agreement and a Confirmation, the terms of the Confirmation shall control with respect to the related Transaction. 
  
 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 all Transactions is less than the aggregate Buyer’s Margin Amount for all such Transactions (a “Margin Deficit”), then Buyer may by notice to Seller require Seller in such Transactions 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 
  

 10 

 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 a Transaction extends over the date on which Income is paid in respect of any Purchased Assets subject to such 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 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 related 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 Transactions 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
Transactions 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 initial Transaction, Buyer shall have received on or before the day of such initial Transaction the following, in form and substance satisfactory to Buyer and duly executed 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; 
  

 11 

 (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 Transactions thereunder, and all documents evidencing other necessary corporate action or governmental approvals as may be required in connection with the
Program Documents; 
  
 (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) All of the conditions precedent in the Guaranty shall
have been satisfied; 
  
 (viii) Any other
documents reasonably requested by Buyer; and 
  
 (ix) 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. 
  
 b. The obligation of Buyer to enter into each Transaction pursuant to this Agreement is subject to the following conditions
precedent: 
  
 (i) Buyer or its designee shall
have received on or before the date of such Transaction, with respect to the related Purchased Assets (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(a) hereof; and 

  

	 	(B)	The related Trust Receipt; 

  
 (ii) No Default or Event of Default shall have occurred and be continuing. 
  
 (iii) Buyer shall not have reasonably determined that a change in any requirement of law or in the
interpretation or administration of any requirement of law applicable to Buyer has made it unlawful, and no Governmental Authority shall have asserted that it is unlawful, for Buyer to enter into a Transaction with a Pricing Rate based on LIBOR;
provided, however, that if the foregoing occurs the parties shall cooperate to find a mutually agreeable substitution for LIBOR. 
  

 12 

 (iv) All representations and warranties in the Program Documents shall be true and
correct on the date of such Transaction (except for any loan level representation and warranty made pursuant to Section 12(n) hereof (incorporating Appendix A of the Custody Agreement) with respect to prior Transactions, provided that any breach of
such loan level representation and warranty shall not individually or in the aggregate have a Material Adverse Effect). 
  
 (v) The then aggregate outstanding Purchase Price for all Purchased Assets, when added to the Purchase Price for the requested
Transaction, shall not exceed the Maximum Aggregate Purchase Price. 
  
 (vi) No event or events shall have been reasonably determined by Buyer to have occurred and be continuing resulting in the effective absence of a whole loan or mortgage-backed securities market. 
  
 (vii) Satisfaction of any conditions precedent to the
initial Transaction as set forth in clause (a) of this Section 9 that were not satisfied prior to such initial Purchase Date. 
  
 (viii) The Purchase Price for the requested Transaction shall not be less than $10,000,000. 
  
 (ix) Buyer shall have determined that all actions necessary
or, in the opinion of Buyer, desirable to maintain Buyer’s perfected 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. 
  
 (x) Seller shall have provided
any other documents reasonably requested by Buyer. 
  
 (xi) The Buyer shall not have entered into more than 2 Transactions per Business Day. 
  
 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. 
  

 13 

 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. REPRESENTATIONS AND
WARRANTIES 
  
 Each of the Seller and each Guarantor
hereby represents and warrants on the date hereof, and shall on and as of the Purchase Date for each Transaction and on and as of each date thereafter through and including 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 Transactions. 
  
 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 Transactions 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. 
  

 14 

 e. Legal Proceeding. Except as otherwise disclosed in the financial statements of NCFC or NCMC, or
the material litigation report, each as provided prior to the date of this Agreement, 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 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 Transactions 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. 
  

 15 

 k. Solvency: Fraudulent Conveyance. Each of the Seller and each Guarantor is solvent and will not
be rendered insolvent by the Transactions and, after giving effect to such Transactions, 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 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 each
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. 
  

 16 

 (iii) The funds and assets of the Seller are not and will not be, commingled with the
funds of any other Person. 
  
 q. Anti-Money Laundering
Laws. 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 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 
  

 17 

 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 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.

  

 18 

 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, 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. Seller shall provide reports in form and scope reasonably
satisfactory to Buyer, setting forth data regarding the performance of the Purchased Assets, and such other information as Buyer may reasonably request, including, without limitation, the performance of the Purchased Assets serviced by or on behalf
of the Interim Servicer and any other financial information regarding the Guarantors reasonably requested by 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 
  

 19 

 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 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. 
  

 20 

 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 as soon as practicable after the related Purchase Date. The Interim Servicer shall be deemed to have simultaneously transferred, assigned, set
over and conveyed to the Seller the related Servicing Rights and Records as of each Purchase Date, which such Servicing Rights shall be sold to the Buyer by the Seller. The Seller’s and Guarantors’ transfer of the Servicing Rights under
this Section shall be in accordance with customary standards in the industry. 
  
 Prior to the initial Purchase Date under this Agreement, the Seller shall establish, for the benefit of Buyer, a collection account in Buyer’s name for the sole and exclusive benefit of the Buyer. Upon notice
from Buyer that, in Buyer’s judgment, a Default or Event of Default may occur or has occurred pursuant to this Agreement, the Seller shall segregate all amounts collected on account of the Purchased Assets, to be held in trust for the benefit
of Buyer, and shall remit such collections in accordance with the Buyer’s written instructions. No amounts deposited into such account shall be removed without the Buyer’s prior written consent. The Seller shall follow the instructions of
Buyer with respect to the Purchased Assets and deliver to Buyer any information with respect to the Purchased Assets reasonably requested by Buyer. 
  
 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). 
  
 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. Reserved. 
  
 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 
  

 21 

 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 any Transactions 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 new Transactions with Buyer to replace the
invalid LIBOR-based Transactions for which Seller has not repurchased the Purchased Assets (the “Replaced Transactions”) with a Pricing Rate based on the Prime Rate plus the margin set forth in the Side Letter as part of the Pricing Rate
and with an aggregate Purchase Price equaling that of the Replaced Transactions. 
  
 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 all Transactions then outstanding 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. 
  

 22 

 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 any Transactions 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 applicable Purchase Date (provided Buyer has tendered the related 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 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; 
  

 23 

 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 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; 
  

 24 

 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; 
  
 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 each Transaction hereunder shall be deemed immediately to occur. 
  

 25 

 b. Seller’s obligations hereunder to repurchase all Purchased Assets at the Repurchase Price
therefor on the Repurchase Date in the Transactions 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 Transactions 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.

  
 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 Transactions 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. Notwithstanding the foregoing, the parties to this Agreement agree that the Transactions have been entered into in consideration of and in reliance
upon the fact that all Transactions hereunder constitute a single business and contractual obligation and that each Transaction has been entered into in consideration of the other Transactions. 
  
 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 
  

 26 

 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 Transactions, 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 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 
  

 27 

 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 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 
  

 28 

 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 Transactions, the actual or proposed use
of the proceeds of the Transactions, 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 Transactions, this Agreement or any of the transactions contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT
TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES. 
  
 c. Without limitation on the provisions of Section 4, if any payment of the Repurchase Price of any 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. 
  
 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. 
  

 29 

 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. 
  
 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 Repurchase 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. 
  

 30 

 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 Transactions. 
  
 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. 
  
 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. 
  

 31 

 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 
  
 Seller,
Guarantors and Buyer acknowledge that, and have entered hereinto and will enter into, each Transaction hereunder in consideration of and in reliance upon the fact that, all Transactions hereunder constitute a single business and contractual
relationship and have been made in consideration of each other. Accordingly, each of Seller, each Guarantor and Buyer agrees (i) to perform all of its obligations in respect of each Transaction hereunder, and that a default in the performance of any
such obligations shall constitute a default by it in respect of all Transactions hereunder, and (ii) that payments, deliveries and other transfers made by any of them in respect of any Transaction shall be deemed to have been made in consideration
of payments, deliveries and other transfer in respect of any other Transaction hereunder, and the obligations to make any such payments, deliveries and other transfers may be applied against each other and netted. 
  
 34. INTENT 
  
 Seller and Buyer recognize that each Transaction is a “repurchase
agreement” as that term is defined in Section 101 of Title 11 of the United States Code, as amended (“USC”) (except insofar as the Loans subject to such Transaction or the term of such Transaction would render such definition
inapplicable), a “forward contract” as that term is defined in Section 101 of Title 11 of the USC and a “securities contract” as that term is defined in Section 741 of Title 11 of the USC (except insofar as the Loans subject to
such Transaction or the term of such 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 Transactions hereunder or to exercise any other remedies pursuant to Section 19 hereof is a contractual
right to liquidate such Transactions as described in Sections 555 and 559 of Title 11 of the USC. 
  
 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 
  

 32 

 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 
 18400 Von Karman 
 Irvine, California 92612 
 Attention: Ralph Flick, Esq. 
 Telephone: (949) 863-7243 
 Facsimile: (949) 440-7033 
  
 with a copy to: 
  
 New Century Funding Corporation 
 as administrator of NC Capital Corporation 
 18400 Von Karman 
 Irvine, California 92612 
 Attention: Ralph Flick, 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: Ralph Flick, 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 
  
 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. 
  

 33 

 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
$1,500,000,000. 
  
 [Signature Page Follows] 
  

 34 

 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:	 	 Executive Vice President

	
	 NEW CENTURY FINANCIAL CORPORATION,
 as
Guarantor

		
	By:	 	 /s/    KEVIN CLOYD

	Name:	 	 Kevin Cloyd

	Title:	 	 Executive Vice President

		
	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 March 10, 2004 (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 any 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 Transactions contemplated by the Agreement and to perform the obligations of Seller or Buyer, as the case may be, under such 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 any 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 a 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 any 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 such 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 such 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 such Transaction and (B) to the extent that any performance was rendered by any party under any 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 such 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 any Transaction and Agent otherwise complies with the provisions of this Annex I, then (a) Agent’s obligations under the Agreement shall not 

  

 Annex - 1 

	    	include a 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 Transactions 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 each Transaction allocable to the account of each of the Principals for which it is acting; (ii)
the portion of any individual 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 any Transactions by Agent on behalf of an employee benefit
plan under ERISA shall be treated as Transactions 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 any 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 any 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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]