Document:

EX-10.1

EXHIBIT 10.1

THIRD AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

Dated as of May 13, 2002, amended and restated to and including September 7, 2006

AMONG:

Bank of America, N.A., as buyer (the “Buyer”, which term shall include any “Principal” as defined
and provided for in Annex I), or as agent pursuant hereto (the “Agent”),

New Century Mortgage Corporation, Home123 Corporation, New Century Credit Corporation and NC
Capital Corporation, as sellers (collectively the “Sellers” and individually a “Seller”), and

New Century Financial Corporation, as guarantor (the “Guarantor”).

1. APPLICABILITY

Buyer shall, from time to time, upon the terms and conditions set forth herein, agree to
enter into transactions in which a Seller transfers to the Buyer Eligible Assets against the
transfer of funds by the Buyer, with a simultaneous agreement by the Buyer to transfer to
such Seller such Purchased Assets at a date certain, against the transfer of funds by such
Seller. Each such transaction shall be referred to herein as a “Transaction”, and, unless
otherwise agreed in writing, shall be governed by this Agreement. The Buyer and New Century
Funding A entered into that certain master repurchase agreement (the “Original Agreement”)
dated as of May 13, 2002 which was amended and restated on May 21, 2004 and September 15,
2005. This Agreement amends, restates and replaces the Original Agreement in its entirety.

2. DEFINITIONS AND INTERPRETATION

a. Defined Terms.

“Accepted Servicing Practices” shall mean, with respect to any Loan, those mortgage
servicing practices of prudent mortgage lending institutions which service mortgage loans of the
same type as such Loan in the jurisdiction where the related Mortgaged Property is located and
incorporating the Delinquency Collection Policies and Procedures.

“Additional Purchased Assets” shall have the meaning assigned thereto in Section 6(a)
hereof.

“Adjusted Tangible Net Worth” shall mean at any date:

(a) Book Net Worth, minus

(b) The sum (without duplication) of (1) all assets which would be classified as
intangible assets of the Guarantor and its consolidated Subsidiaries under GAAP, including,
without limitation, advances to shareholders, officers and Affiliates (to the extent that
such advances increase Book Net Worth), investments in Affiliates, deferred taxes,
capitalized general and administrative costs, capitalized deal costs, all goodwill (whether
representing the excess cost over book value of assets acquired or otherwise), patents,
trademarks, trade names, copyrights, franchises and deferred charges (including, without
limitation, unamortized debt discount and expense, organization costs and research and
product development costs) plus (2) all receivables from directors, officers and
shareholders of the Guarantor and its consolidated Subsidiaries (to the extent such
receivables increase Book Net Worth).

“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 Third Amended and Restated Master Repurchase Agreement, as it
may be further amended, supplemented or otherwise modified from time to time.

“ALTA” shall mean the American Land Title Association or any successor thereto.

“Appraised Value” shall mean the value set forth in an appraisal made in connection
with the origination of the related Loan as the value of the Mortgaged Property.

“Book Net Worth” shall mean the excess of total assets of a Person and its
consolidated Subsidiaries over Total Liabilities of such Person and its consolidated Subsidiaries
determined in accordance with GAAP.

“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.

“Breakage Costs” shall have the meaning assigned thereto in Section 3(e) herein.

“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 the 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.

“Cash Equivalents” shall mean (a) securities with maturities of 180 days or less from
the date of acquisition issued or fully guaranteed or insured by the United States Government or
any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of 180
days or less from the date of acquisition and overnight bank deposits of any commercial bank having
capital and surplus in excess of $500,000,000, (c) repurchase obligations of any commercial bank
satisfying the requirements of clause (b) of this definition, having a term of not more than thirty
days with respect to securities issued or fully guaranteed or insured by the United States
Government, (d) commercial paper of a domestic issuer rated at least “A-1” or the equivalent
thereof by Standard & Poor’s Ratings Services (“S&P”) or “P-1” or the equivalent thereof by
Moody’s Investors Service, Inc. (“Moody’s”) and in either case maturing within 180 days
after the date of acquisition, (e) securities with maturities of 180 days or less from the date of
acquisition issued or fully guaranteed by any state, commonwealth or territory of the United
States, by any political subdivision or taxing authority of any such state, commonwealth or
territory or by any foreign government, the securities of which state, commonwealth, territory,
political subdivision, taxing authority or foreign government (as the case may be) are rated at
least “A” by S&P or “A2” by Moody’s, (f) securities with maturities of 180 days or less from the
date of acquisition backed by standby letters of credit issued by any commercial bank satisfying
the requirements of clause (b) of this definition, or (g) shares of money market, mutual or similar
funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of
this definition.

“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 the Buyer (or any Affiliate of the 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.

“Committed Transaction” shall have the meaning assigned to such term in Section 3(a)
hereof.

“Computer Medium” means a computer or other electronic medium generated by or on
behalf of the Seller and delivered or transmitted to the Buyer and the 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 the Buyer.

“Confirmation” shall have the meaning assigned thereto in Section 4(b) hereof.

“Convertible Mortgage Loan” shall mean any individual Adjustable Rate Loan purchased
pursuant to the Repurchase Agreement which contains a provision whereby the Borrower is permitted
to convert the Adjustable Rate Loan to a Fixed Rate Loan in accordance with the terms of the
related Note.

“Custodian” means Deutsche Bank National Trust Company, or its successors and
permitted assigns.

“Custody Agreement” means the Fourth Amended and Restated Custodial Agreement, dated
as of May 21, 2004, amended and restated to and including September 7, 2006 among the Sellers, the
Buyer and the Custodian as it may be amended, supplemented or otherwise modified from time to time.

“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 September 7, 2006.

“Electronic Tracking Agreement” means the electronic tracking agreement dated as of
September 7, 2006 among the Buyers, the Sellers, MERSCORP, Inc. and Mortgage Electronic
Registration, Systems, Inc., as the same may be amended, modified or supplemented from time to
time; provided that if no Loans are or will be MERS Designated Mortgage Loans, all
references herein to the Electronic Tracking Agreement shall be disregarded.

“Eligible Asset” shall have the meaning assigned thereto in the Side Letter.

“Eligible Loan” shall have the meaning assigned thereto in the Side Letter.

“Escrow Payments” shall mean, with respect to any Loan, the amounts constituting
ground rents, taxes, assessments, water rates, sewer rents, municipal charges, mortgage insurance
premiums, fire and hazard insurance premiums, condominium charges, and any other payments required
to be escrowed by the Borrower with the mortgagee pursuant to the Mortgage or any other document.

“Event of Default” shall have the meaning assigned thereto in Section 18 hereof.

“Facility Fee Amount” shall have the meaning assigned thereto in the Side Letter.

“Fifty Year Mortgage Loan” shall mean a Loan which has been underwritten in accordance
with the applicable provisions of the Fannie Mae Guides except as to maximum principal balance of
loans, in each case which has a fifty (50) year amortization period.

“Fixed Rate Loan” shall mean a Loan which has a fixed Mortgage Interest Rate as set
forth on the Note for the duration of the Loan.

“Forty Year Mortgage Loan” shall mean a Loan which has been underwritten in accordance
with the applicable provisions of the Fannie Mae Guides except as to maximum principal balance of
loans, in each case which has a forty (40) year amortization period.

“Fannie Mae” means Fannie Mae, f/k/a the Federal National Mortgage Association, or any
successor thereto.

“Fannie Mae Guides” means the Fannie Mae Sellers’ Guide and the Fannie Mae Servicers’
Guide and all amendments or additions thereto.

“Freddie Mac” means Freddie Mac, f/k/a the Federal Home Loan Mortgage Corporation, or
any successor thereto.

“First Lien Loan” shall mean a Loan secured by the lien on the related Mortgaged
Property, subject to no prior liens on such Mortgaged Property.

“GAAP” shall mean generally accepted accounting principles in the United States of
America in effect from time to time.

“Government Securities” shall mean any security issued or guaranteed as to principal
or interest by the United States, or by a Person controlled or supervised by and acting as an
instrumentality of the Government of the United States pursuant to authority granted by the
Congress of the United States; or any certificate of deposit for any of the foregoing.

“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 any Seller or the Guarantor.

“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.

“Guarantor” means New Century Financial Corporation, a Maryland corporation, formerly
known as “New Century REIT, Inc.” or any successor thereto.

“Guaranty” means the Fourth Amended and Restated Guaranty of the Guarantor in favor of
the Buyer, dated as of May 13, 2002, amended and restated to and including September 7, 2006, as it
may be further amended, supplemented or otherwise modified from time to time.

“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 a
Seller or the Guarantor that relates to or applies to the Purchased Assets, with a counterparty
approved by the Buyer.

“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 any Seller or the 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 the 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.

“Intercreditor Agreement” means the intercreditor agreement dated as of September 2,
2005 among the Sellers, NC Residual II Corporation, Loan Partners Mortgage, Ltd., Kingston
Mortgage Company, Ltd., Compufund Mortgage Company, Ltd., WRT Financial Limited Partnership,
Peachtree Residential Mortgage, L.P., Residential Prime Lending Limited Partnership, Team Home
Lending Ltd., Sutter Buttes Mortgage LP, Midwest Home Mortgage Ltd, Austin Mortgage, L.P., Capital
Pacific Home Loans, L.P., Golden Oak Mortgage, L.P., Northwest Capital Mortgage LP, SCFinance LP,
AD Astra Mortgage Ltd, the Buyer, DB Structured Products, Inc., Aspen Funding Corp., Newport
Funding Corp., Gemini Securitization Corp. LLC and Credit Suisse First Boston Mortgage Capital LLC.

“Interest Only Loan” shall mean a Loan which only requires the payment of interest for
a period of time specified in the related Note.

“Interest Rate Adjustment Date” shall mean, with respect to each Adjustable Rate Loan,
the date, specified in the related Note and the Loan Schedule, on which the Mortgage Interest Rate
is adjusted.

“Interim Servicer” means (i) New Century Mortgage Corporation or (ii) any other
servicer approved by the 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.

“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.

“Lien” shall mean any mortgage, lien, pledge, charge, security interest or similar
encumbrance.

“Lifetime Rate Cap” shall mean the provision of each Note related to an Adjustable
Rate Loan which provides for an absolute maximum Mortgage Interest Rate thereunder. The Mortgage
Interest Rate during the term of each Adjustable Rate Loan shall not at any time exceed the
Mortgage Interest Rate at the time of origination of such Adjustable Rate Loan by more than the
amount per annum set forth on the Loan Schedule.

“Liquid Assets” shall mean, on a consolidated basis, the sum of all of the Guarantor’s
cash, Cash Equivalents, and the market value of its U.S. Treasury securities and the amount
available under any committed secured financing facility or committed repurchase facility between
the Guarantor and a third party acceptable to the Buyer (but only to the extent that the Guarantor
has unencumbered assets to pledge, net of any applicable haircut, or has excess borrowing capacity
arising from assets already pledged).

“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 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 the Guarantor or the related
Seller to the Buyer and the 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 the Buyer from time to time in good faith.

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

“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 the Buyer in its sole
discretion exercised in good faith, and (ii) with respect to a Purchased Asset that is not an
Eligible Asset, zero.

“Master Netting Agreement” means the Third Amended and Restated Master Collateral
Security and Master Netting Agreement dated as of May 21, 2004 amended and restated to and
including September 7, 2006, among the Buyer, the Guarantor and the Sellers, as it may be further
amended, supplemented or otherwise modified from time to time.

“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 of such Person and its Subsidiaries taken as a whole.

“Material Adverse Effect” means (a) a Material Adverse Change with respect to the
Guarantor (b) a material impairment of the ability of the 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 the 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” shall have the meaning assigned to such term in the
Side Letter.

“Maximum Committed Purchase Price” shall have the meaning assigned to such term in the
Side Letter.

“Maximum Uncommitted Purchase Price” shall have the meaning assigned to such term in
the Side Letter.

“MERS Designated Mortgage Loan” shall have the meaning assigned thereto in the
Custodial Agreement.

“Monthly Payment” shall mean the scheduled monthly payment of principal and interest
on a Loan.

“Mortgage” means a mortgage, deed of trust, or other instrument that creates a lien on
the related Mortgaged Property and secures a Note.

“Mortgage Interest Rate” shall mean the annual rate of interest borne on a Note with
respect to each Loan.

“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.

“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 the Sellers’ obligation to pay the Repurchase Price on
the Repurchase Date and other obligations and liabilities of the Sellers and the Guarantor to the
Buyer, its Affiliates or the Custodian or any other Person 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 the Buyer or on behalf of the Buyer pursuant to the
Program Documents in order to preserve any Purchased Asset or its interest therein in accordance
with the terms hereof; and (c) in the event of any proceeding for the collection or enforcement of
any of the Sellers’ indebtedness, obligations or liabilities referred to in clause (a), the
reasonable expenses of retaking, holding, collecting, preparing for sale, selling or otherwise
disposing of or realizing on any Purchased Asset, or of any exercise by the Buyer or such Affiliate
of its rights under the Program Documents, including without limitation, reasonable attorneys’ fees
and disbursements and court costs.

“Periodic Rate Cap” shall mean the provision of each Note related to an Adjustable
Rate Loan which provides for an absolute maximum amount by which the Mortgage Interest Rate therein
may increase or decrease on an Interest Rate Adjustment Date above or below the Mortgage Interest
Rate previously in effect. The Periodic Rate Cap for each Adjustable Rate Loan is the rate set
forth on the Loan Schedule.

“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 the
related Seller to the 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 the 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 the 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 Electronic Tracking Agreement, the Guaranty, any
assignment of Hedge Instrument, the Side Letter and any other agreement entered into by a Seller
and/or the Guarantor, on the one hand, and the Buyer or one of its Affiliates (or the 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 the Purchased Assets are to be transferred by
the Seller to the Buyer.

“Purchase Price” shall have the meaning assigned thereto in the Side Letter.

“Purchased Assets” means, with respect to a Transaction, the Loans set forth on the
related Loan Schedule, together with the related Records, the Servicing Rights, the Sellers’ or the
Guarantor’s rights under any takeout commitment related to the Loans 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 the
Additional Purchased Assets delivered pursuant to Section 6(a) hereof.

“Qualified Appraiser” shall mean an appraiser, duly appointed by the related Seller,
who had no interest, direct or indirect, in the Mortgaged Property or in any loan made on the
security thereof, and whose compensation is not affected by the approval or disapproval of the
Loan, and such appraiser and the appraisal made by such appraiser both satisfy the requirements of
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the
regulations promulgated thereunder, all as in effect on the date the Loan was originated.

“Records” means all instruments, agreements and other books, records, reports and data
generated by other media for the storage of information maintained by the Sellers, the 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.

“REIT” means a real estate investment trust, as defined in Section 856 of the Code.

“REIT Status” means with respect to any Person, such Person’s status as a real estate
investment trust, as defined in Section 856(a) of the Code that satisfies the conditions and
limitations set forth in Sections 856(b) and 856(c) of the Code.

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

“Repurchase Date” shall have the meaning assigned thereto in Section 3(d) and shall
also include the date determined by application of Section 19.

“Repurchase Price” means the price at which the Purchased Assets are to be transferred
from the Buyer to the related 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.

“RESPA” means the Real Estate Settlement Procedures Act, as amended from time to time.

“Second Lien Loan” shall mean a Loan secured by the lien on the Mortgaged Property,
subject to one prior lien on such Mortgaged Property.

“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 the Sellers or any
other Person arising under a Servicing Agreement, the Custody Agreement or otherwise, to administer
or service a Purchased Asset or to possess related Records.

“Side Letter” means the third amended and restated pricing side letter, dated as of
May 13, 2002, amended and restated to and including September 7, 2006, among Sellers, the Guarantor
and the Buyer, as the same may be amended, supplemented or modified from time to time.

“Subsidiary” means, with respect to any Person, any corporation, partnership or other
entity of which at least a majority of the securities or other ownership interests having by the
terms thereof ordinary voting power to elect a majority of the board of directors or other persons
performing 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.

“Termination Date” has the meaning assigned thereto in Section 27.

“Total Indebtedness” shall mean, as to any Person for any period, the aggregate
Indebtedness of such Person during such period maintained in accordance with GAAP less the
aggregate amount of any such Indebtedness that is reflected on the balance sheet of such Person in
respect of obligations incurred pursuant to a securitization transaction, solely to the extent such
obligations are secured by the assets securitized thereby and are non-recourse to the Person. In
the event that any Indebtedness of a Person would be excluded from the calculation of Total
Indebtedness but for the existence of recourse, such person shall be entitled nonetheless to
exclude the amount of such Indebtedness that is not subject to recourse. The amount of any
recourse shall be the stated or determinable amount thereof or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the Person in good
faith.

“Total Liabilities” shall mean the total liabilities of a Person and its consolidated
Subsidiaries, determined in accordance with GAAP.

“Transaction” has the meaning assigned thereto in Section 1, and shall include
Committed Transactions and Uncommitted Transactions.

“Transaction Notice” means a written request of the related Seller to enter into a
Transaction, in the form attached to the Custody Agreement which is delivered to the Buyer and the
Custodian.

“Trust Receipt” means a Trust Receipt and Certification as defined in the Custody
Agreement.

“Uncommitted Transaction” shall have the meaning assigned to such term in
Section 3(b).

“Underwriting Guidelines” means underwriting guidelines of the Sellers in effect as of
the date of this Agreement, which have been approved in writing by the Buyer, as the same may be
amended from time to time in accordance with terms of this Agreement.

“Uniform Commercial Code” means the Uniform Commercial Code as in effect on the date
hereof in the State of New York or the Uniform Commercial Code as in effect in the applicable
jurisdiction.

“Wet Funded Loan” means a Loan for which, as of the 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 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 exists 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 Sellers.

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 a Seller
or the 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, the Guarantor and the Sellers, 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.

3. THE TRANSACTIONS

a. Subject to the terms and conditions of the Program Documents, this Agreement is a
commitment by the Buyer to purchase from the Sellers certain Purchased Assets up to the Maximum
Committed Purchase Price and the Buyer hereby agrees to enter into Transactions with an aggregate
Purchase Price for all the Purchased Assets acquired by the Buyer not to exceed the Maximum
Committed Purchase Price (individually, a “Committed Transaction”; collectively, the “Committed
Transactions”).

b. In addition to the foregoing, the Buyer may from time to time in its sole discretion,
subject to the terms and conditions of the Program Documents, enter into Transactions in excess of
the Maximum Committed Purchase Price (individually, an “Uncommitted Transaction”, collectively, the
“Uncommitted Transactions”) with the Sellers, in an aggregate principal amount at any one time up
to but not exceeding the Maximum Uncommitted Purchase Price (together, the aggregate principal
balance of Transactions may not exceed the Maximum Aggregate Purchase Price. This Agreement to
enter into Uncommitted Transactions is not a commitment by the Buyer, but rather sets forth
procedures to be used in connection with periodic requests for the Buyer to enter into Uncommitted
Transactions with the related Seller. The Sellers hereby acknowledge that the Buyer is under no
obligation to agree to enter into any Uncommitted Transactions pursuant to this Agreement. Unless
otherwise agreed by the parties, in determining whether Transactions are Committed Transactions or
Uncommitted Transactions, such Transactions shall first be deemed Committed Transactions up to the
Maximum Committed Purchase Price, and then the remainder shall be deemed Uncommitted Transactions.
The Buyer may, at any time, terminate the Sellers’ ability to enter into new Uncommitted
Transactions by providing written notice to the Sellers.

c. With respect to any Transaction, the related Seller shall repurchase the Purchased Assets
from the Buyer on each related Repurchase Date. Each obligation to repurchase subsists without
regard to any prior or intervening liquidation or foreclosure with respect to any Purchased Asset.
The related Seller is obligated to obtain the Purchased Assets from the Buyer or its designee
(including the Custodian) at its own expense on (or after) the related Repurchase Date.

d. Provided that the applicable conditions in Sections 9(a) and (b) have been satisfied, each
Purchased Asset that is repurchased by the related Seller on the Repurchase Date occurring on the
25th day of each month (or, if such 25th day is not a Business Day, the immediately following
Business Day) following the related Purchase Date (the day of the month so determined for each
month, or any other date designated by the related Seller to the Buyer for such a repurchase on at
least one Business Day’s prior notice to the Buyer, a “Repurchase Date”, which term shall also
include the date determined by application of Section 19 (a)) shall automatically become subject
to a new Transaction unless the Buyer is notified by such Seller at least one (1) Business Day
prior to any such Repurchase Date, provided that if the Repurchase Date so determined is later than
the Termination Date, the Repurchase Date for such Transaction shall automatically reset to the
Termination Date, and the provisions of this sentence as it might relate to a new Transaction shall
expire on such date. For each new Transaction, unless otherwise agreed, (y) the accrued and unpaid
Price Differential shall be settled in cash on each related Repurchase Date, and (z) the Pricing
Rate shall be as set forth in the Side Letter.

e. If the Buyer locks in the rate of LIBOR at the request of such Seller and such Seller
repurchases the Purchased Assets on any day which is not the Repurchase Date set forth in
Section 3(d) above, such Seller shall indemnify the Buyer and hold the Buyer harmless from any
losses, costs and/or expenses which the Buyer may sustain or incur arising from the reemployment of
funds obtained by the Buyer hereunder or from fees payable to terminate the deposits from which
such funds were obtained (“Breakage Costs”), in each case for the remainder of the applicable 30
day period. The Buyer shall deliver to such Seller a statement setting forth the amount and basis
of determination of any Breakage Costs in such detail as determined in good faith by the Buyer to
be adequate, it being agreed that such statement and the method of its calculation shall be
adequate and shall be conclusive and binding upon such Seller, absent manifest error. This
Section shall survive termination of this Agreement and the repurchase of all the Purchased Assets
subject to Transactions hereunder.

4. TRANSACTION NOTICE CONFIRMATIONS

a. Unless otherwise agreed, the related Seller shall give the Buyer and the 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, the related Seller shall (i)
request that the Buyer enter into a Transaction by furnishing to the Buyer and the Custodian a
Transaction Notice and Loan Schedule, (ii) deliver to the Buyer a Computer Medium for the related
Purchased Assets and (iii) deliver to the 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
“Confirmation” specifying such terms prior to entering into such Transaction, including, without
limitation, the Purchase Date, the Purchase Price, the Pricing Rate therefor and the Repurchase
Date. Any such Confirmation and the related Transaction Notice, together with this Agreement, shall
constitute conclusive evidence of the terms agreed between the Buyer and the related 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 the Purchased Assets transferred shall be transferred to the Custodian pursuant to
the Custody Agreement. Any Repurchase Price or Price Differential received by the Buyer after 4:00
p.m. 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 the Purchased Assets subject to all
Transactions is less than the aggregate Buyer’s Margin Amount for all such Transactions (a “Margin
Deficit”), then the Buyer may by notice to the Sellers require the Sellers in such Transactions to
transfer to the Buyer cash or, at the Buyer’s option (and provided the Seller has additional
Eligible Assets), additional Eligible Assets (the “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 City time on a Business Day shall be satisfied
no later than 5:00 p.m. New York City time on such Business Day. Any notice given on or after 10:00
a.m. New York City time on a Business Day shall be satisfied no later than 5:00 p.m. New York City
time on the Business Day following the date of such notice. The failure of the Buyer, on any one
or more occasions, to exercise its rights hereunder, shall not change or alter the terms and
conditions to which this Agreement is subject or limit the right of the Buyer to do so at a later
date. Each Seller, the Guarantor and the Buyer each agree that a failure or delay by the Buyer to
exercise its rights hereunder shall not limit or waive the Buyer’s rights under this Agreement or
otherwise existing by law or in any way create additional rights for any Seller or the 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 that Transaction, such Income shall be the property of
the Buyer. Notwithstanding the foregoing, and provided no Event of Default has occurred and is
continuing, the Buyer agrees that the related Seller shall be entitled to receive an amount equal
to all Income received, whether by the Guarantor, the Buyer, the Custodian, the Interim Servicer or
any servicer or any other Person, which is not otherwise received by the related Seller, in respect
of the Purchased Assets; provided, however, that any income received by or on behalf of the related
Seller while the related Transaction is outstanding shall be deemed held by such Seller solely in
trust for the Buyer pending the repurchase on the related Repurchase Date. Upon the occurrence of
an Event of Default, the Sellers and the Guarantor shall cause all Income to be delivered to the
Buyer.

8. SECURITY INTEREST

Each Seller and the Buyer intend that the Transactions hereunder be sales to the Buyer of the
Purchased Assets and not loans from the Buyer to the Sellers secured by the Purchased Assets.
However, in order to preserve the 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
each Seller’s performance of all of its Obligations, each Seller hereby grants the Buyer a fully
perfected first priority security interest in such Seller’s right, title and interest in and to the
following property, whether now existing or hereafter acquired: the Purchased Assets, the related
Records, all Hedge Instruments (which interest in Hedge Instruments shall be determined in
accordance with the Intercreditor Agreement and shall be pro rata and subject to the rights of
other parties holding a security interest thereunder), 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” and
“deposit 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, the Servicing Rights, all
guarantees or other support for the related Loans, 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, the Buyer shall have received on or
before the day of such initial Transaction the following, in form and substance satisfactory to the
Buyer and duly executed by each party thereto (as applicable):

(i) The Program Documents duly executed and delivered by the parties thereto and being
in full force and effect, free of any modification, breach or waiver;

(ii) Evidence that all other actions necessary or, in the opinion of the Buyer,
desirable to perfect and protect the 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 each Seller’s and the Guarantor’s consents or corporate
resolutions, as applicable, approving the Program Documents and Transactions thereunder
(either specifically or by general resolution), and all documents evidencing other necessary
corporate action or governmental approvals as may be required in connection with the Program
Documents;

(iv) An incumbency certificate of the secretaries of each Seller and the Guarantor
certifying the names, true signatures and titles of each Seller’s and the Guarantor’s
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 the Sellers’ and the Guarantor’s counsel as to such matters as the
Buyer may reasonably request (including, without limitation, perfected security interest in
the Collateral) and in form and substance acceptable to the Buyer;

(vi) A copy of the Underwriting Guidelines certified by an officer of applicable Seller
to which such Underwriting Guidelines relate;

(vii) Reserved;

(viii) A copy of the certificate of insurance evidencing compliance with Section 13(o)
of this Agreement;

(ix) All of the conditions precedent in the Guaranty shall have been satisfied;

(x) Any other documents reasonably requested by the Buyer;

(xi) The Buyer’s legal, tax, business and environmental due diligence of the Sellers
and the Guarantor each shall have been completed to the satisfaction of the Buyer; and

(xii) Payment of the Facility Fee Amount by wire transfer by the Sellers to the Buyer
in immediately available funds.

b. The obligation of the Buyer to enter into each Transaction pursuant to this Agreement is
subject to the following conditions precedent:

(i) The Buyer or its designee shall have received on or before the day of a Transaction
with respect to such Purchased Assets (unless otherwise specified in this Agreement) the
following, in form and substance satisfactory to the Buyer and (if applicable) duly
executed:

	 	(A)	 	The Transaction Notice, the Loan Schedule and the Computer
Medium with respect to such Purchased Assets delivered pursuant to
Section 4(a);

	 	(B)	 	The related Trust Receipt, with the Loan Schedule attached;

	 	(C)	 	Such certificates, customary opinions of counsel or other
documents as the Buyer may reasonably request, provided that such opinions of
counsel shall not be routinely required in connection with each Transaction but
shall only be required from time to time as deemed necessary by the Buyer in
its commercially reasonable judgment; and

	 	(D)	 	A copy of the Underwriting Guidelines, to the extent such
guidelines have been amended in any material respect.

(ii) No Default or Event of Default shall have occurred and be continuing;

(iii) The 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
the Buyer has made it unlawful, and no Governmental Authority shall have asserted that it is
unlawful, for the Buyer to enter into Transactions with a Pricing Rate based on LIBOR;

(iv) All representations and warranties in the Program Documents shall be true and
correct on the date of such Transaction and the Sellers and the Guarantor are in compliance
with the terms and conditions of the Program Documents;

(v) The then aggregate outstanding Purchase Price for all the 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 the Buyer to have
occurred and be continuing, resulting in the effective absence of a whole loan or
asset-backed securities market or commercial paper 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
$500,000.

(ix) The Buyer shall have determined that all actions necessary or, in the opinion of
the Buyer, desirable to maintain the 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) The Sellers and the Guarantor shall have paid to the Buyer all fees and expenses,
if any, owed to the Buyer in accordance with this Agreement;

(xi) There shall be no Margin Deficit at the time immediately prior to entering into a
new Transaction;

(xii) Each secured party (including any party that has a precautionary security
interest in a Loan) shall have released all of its right, title and interest in, to and
under such Loan (including, without limitation, any security interest that such secured
party or secured party’s agent may have by virtue of its possession, custody or control
thereof) and has filed Uniform Commercial Code termination statements in respect of any
Uniform Commercial Code filings made in respect of such Loan, and each such release and
Uniform Commercial Code termination statement shall have been delivered to the Buyer prior
to each Transaction and to the Custodian as part of the Loan File;

(xiii) The Buyer shall have approved any counterparty to each Hedge Instrument;

(xiv) Any other documents reasonably requested by the Buyer; and

(xv) The Buyer shall not be obligated to enter into more than two 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 (if any) with respect to a Purchased Asset, if no Default or Event of Default has
occurred and is continuing, the Buyer shall, and shall direct the Custodian to, release such
Purchased Asset unless such release would give rise to or perpetuate a Margin Deficit. Except as
set forth in Sections 6(a) and 16, the Seller shall give at least one (1) Business Day’s prior
written notice to the Buyer if such repurchase shall occur on any date other than a Repurchase Date
set forth in Section 3(d).

If such a Margin Deficit is applicable, the Buyer shall notify the Seller of the amount
thereof and the Seller may thereupon satisfy the Margin Call in the manner specified in Section 6.

11. RELIANCE

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

12. REPRESENTATIONS AND WARRANTIES

Each Seller and the Guarantor, jointly and severally, hereby represents and warrants, and
shall on and as of the Purchase Date for any Transaction and on and as of each date thereafter
through and including the related Repurchase Date be deemed to represent and warrant, that:

a. Due Organization and Qualification. Each Seller and the Guarantor is duly
organized, validly existing and in good standing under the laws of the jurisdiction under whose
laws it is organized. Each Seller and the 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 Seller and the 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 Seller and the 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. Neither the execution and delivery of the Program Documents by
each Seller or the Guarantor nor the consummation of the Transactions and transactions thereunder:

(i) conflicts with, breaches or violates any provision of the organizational documents,
or material agreements of such Seller or the Guarantor or in any material respect any law,
rule, regulation, order, writ, judgment, injunction, decree, determination or award
currently in effect having applicability to such Seller or the Guarantor or its properties;

(ii) constitutes a material default by such Seller or the Guarantor under any loan or
repurchase agreement, mortgage, indenture or other material agreement or instrument to which
such Seller or the 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 any Seller or the Guarantor except the lien relating to the Program Documents.

e. Legal Proceeding. Except as otherwise disclosed in the financial statements of the
Guarantor prior to the Effective Date, there is no action, proceeding or investigation by or before
any court, governmental or administrative agency or arbitrator affecting any of the Purchased
Assets, any Seller, the Guarantor or any of their Affiliates, pending or threatened, which is
reasonably likely to be adversely determined and which, if adversely determined would have a
reasonable likelihood of having a Material Adverse Effect.

f. Valid and Binding Obligations. Each of the Program Documents to which the Sellers
or the Guarantor is a party, when executed and delivered by such Seller or the Guarantor, as
applicable, will constitute the legal, valid and binding obligations of such Seller or the
Guarantor, as applicable, enforceable against such Seller or the 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 (regardless of whether enforcement is sought in a proceeding in equity or at
law).

g. Financial Statements. The financial statements of the Guarantor, copies of which
have been furnished to the 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 the 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 the Guarantor. Except as
disclosed in such financial statements, the Guarantor is not subject to any contingent liabilities
or commitments that, individually or in the aggregate, have a reasonable likelihood of causing a
Material Adverse Change with respect to the Guarantor.

h. Accuracy of Information. None of the documents or information prepared by or on
behalf of any Seller or the Guarantor and provided by such Seller or the Guarantor to the Buyer
relating to such Seller’s or the Guarantor’s financial condition contain any statement of a
material fact with respect to such Seller or the Guarantor 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 any Seller or the 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
any Seller or the Guarantor of this Agreement or the consummation by any Seller or the 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 any Seller or the Guarantor in the conduct of its businesses violates any law,
regulation, judgment, agreement, regulatory consent, order or decree applicable to it which, if
enforced, would result in either a Material Adverse Change with respect to such Seller or the
Guarantor or a Material Adverse Effect.

k. Solvency; Fraudulent Conveyance. Each Seller and the Guarantor is solvent and will
not be rendered insolvent by the Transaction and, after giving effect to such Transaction, neither
the Sellers nor the Guarantor will be left with an unreasonably small amount of capital with which
to engage in its business. Neither the Sellers nor the Guarantor intends to incur, nor believes
that it has incurred, debts beyond its ability to pay such debts as they mature. Neither the
Sellers nor the 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 any Seller or the Guarantor or any of their assets. The amount of
consideration being received by the related Seller upon the sale of the Purchased Assets to the
Buyer constitutes reasonably equivalent value and fair consideration for such Purchased Assets. The
Sellers are not transferring any Purchased Assets with any intent to hinder, delay or defraud any
of their creditors. The Guarantor is not transferring any Purchased Assets with any intent to
hinder, delay or defraud any of its creditors.

l. Investment Company Act Compliance. No Seller is 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 Seller and the 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 the Sellers or the Guarantor in connection with a Transaction and the execution and
delivery of the Program Documents have been paid.

n. Additional Representations. With respect to each Loan to be sold hereunder by the
related Seller to the Buyer, the Sellers and the Guarantor, jointly and severally, hereby make all
of the applicable representations and warranties set forth in Appendix A hereto as of the date the
Loan File or Wet Funding Package, as applicable, is delivered to the Custodian. Further, as of each
Purchase Date, the Sellers and the Guarantor shall be deemed to have represented and warranted in
like manner that neither the Sellers nor the Guarantor has any knowledge that any such
representation or warranty either has ceased or is reasonably likely to cease to be true in a
material respect as of such date, except as otherwise stated in a Transaction Notice, any such
exception to identify the applicable representation or warranty and specify in reasonable detail
the related knowledge of each Seller or the Guarantor.

o. No Broker. Neither the Sellers nor the Guarantor has dealt with any broker,
investment banker, agent, or other person, except for the Buyer, who may be entitled to any
commission or compensation in connection with the sale of the Purchased Assets pursuant to this
Agreement; provided, that if any Seller or the Guarantor has dealt with any broker, investment
banker, agent, or other person, except for the Buyer, who may be entitled to any commission or
compensation in connection with the sale of the Purchased Assets pursuant to this Agreement, such
commission or compensation shall have been paid in full by such Seller or the Guarantor, as
applicable.

p. Corporate Separateness.

(i) The capital of each Seller and the Guarantor is adequate for the respective
business and undertakings of such Seller and the Guarantor.

(ii) Other than as provided in this Agreement and the other Program Documents, the
Sellers are not engaged in any business transactions with the Guarantor or any of its
Affiliates other than transactions in the ordinary course of their business on an
“arms-length” basis or transactions among Sellers and internal reorganizations not otherwise
prohibited hereunder.

(iii) The funds and assets of the Sellers are not and will not be, commingled with the
funds of any other Person.

The representations and warranties set forth in this Agreement shall survive transfer of the
Purchased Assets to the Buyer and shall continue for so long as the Purchased Assets are subject to
this Agreement.

13. COVENANTS OF THE SELLERS AND THE GUARANTOR

Each of the Sellers and the Guarantor, as applicable, hereby covenants with the Buyer as
follows:

a. Defense of Title. Each Seller and the Guarantor warrants and will defend the
right, title and interest of the Buyer in and to all Collateral against all adverse claims and
demands.

b. No Amendment or Compromise. Without the prior written consent of the Buyer, neither
the Sellers, the Guarantor nor those acting on such Seller’s or the 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, no Seller or 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 the Purchased Assets in accordance
with the Program Documents; any Hedge Instruments for the related Purchased Assets or the granting
of liens on such Hedging Instruments to other creditors in accordance with the Intercreditor
Agreement; any servicing arrangement between the Interim Servicer and any Seller or its Affiliates;
and any forward purchase commitment or other types of take out commitment for the Purchased Assets.

d. Servicing of Loans. The Sellers and the Guarantor shall cause the 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 the Buyer pursuant to
this Agreement, employing at least the same procedures and exercising the same care that the
Interim Servicer customarily employs in servicing Loans for its own account. The Sellers shall
notify servicers of the Buyer’s interest hereunder and the Sellers shall notify the Buyer in
writing 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. The Buyer shall have the right to approve
each servicer and the form of all Servicing Agreements or servicing side letter agreements. The
Sellers 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 notice from the Buyer that an Event of Default has occurred,
the related Seller and the Guarantor shall cause the Interim Servicer to (i) segregate all amounts
collected on account of the Loans (ii) hold such amounts collected in trust for the benefit of the
Buyer and (iii) 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.
Upon the Buyer’s request, the Sellers shall provide reasonably promptly to the Buyer a letter
addressed to and agreed to by each servicer of Loans, in form and substance reasonably satisfactory
to the Buyer, advising such servicer of such matters as the Buyer may reasonably request relating
to the Loans. If any Seller should discover that, for any reason whatsoever, the Sellers or any
entity responsible to the Sellers by contract for the administration and/or servicing of any such
Loan has failed to perform fully the Sellers’ obligations under the Program Documents or any of the
obligations of such entities with respect to the Purchased Assets, the Sellers shall promptly
notify the Buyer.

e. Preservation of Collateral; Collateral Value. Each Seller and the 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, the Sellers and the
Guarantor will comply with laws, rules, regulations and other laws of any Governmental Authority
applicable to the Sellers or the Guarantor relating to the Collateral and cause the Collateral to
comply with all applicable laws, rules, regulations and other laws of any such Governmental
Authority. Neither the Sellers nor the Guarantor will allow any default for which it is responsible
to occur under any Collateral and each Seller and the 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. The related Seller and the Guarantor
shall require, and the related Seller or the Guarantor shall build, maintain and have available, a
complete file in accordance with lending industry custom and practice for each Purchased Asset.
The related Seller or the Guarantor will maintain or cause to be maintained all such Records not in
the possession of the Custodian in good and complete condition in accordance with industry
practices and preserve them against loss.

(i) The related Seller and the 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 related Seller or the Guarantor unless the Buyer otherwise approves. neither
the Sellers nor the Guarantor will allow any such papers, records or files that are an
original or an only copy to leave the Custodian’s possession, except for individual items
removed in connection with servicing a specific Loan, in which event the related Seller or
the Guarantor will obtain or cause to be obtained a receipt from a financially responsible
person for any such paper, record or file.

(ii) For so long as the Buyer has an interest in or lien on any Purchased Asset, the
related Seller and the Guarantor will hold or cause to be held all related Records in trust,
as the custodian and bailee, for the Buyer. The related Seller or the 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 the Custodian or the Buyer, the related
Seller and the Guarantor shall (x) make any and all such Records available to the Custodian
or the 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
the Buyer or its authorized agents to discuss the affairs, finances and accounts of the
related Seller or the Guarantor with its respective chief operating officer and chief
financial officer and to discuss the affairs, finances and accounts of the related Seller or
the Guarantor with its independent certified public accountants.

g. Financial Statements; Accountants’ Reports; Other Information. The related Seller
and the 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 the Purchased Assets
to the Buyer. The Sellers and the Guarantor shall furnish or cause to be furnished or made
electronically available to the Buyer the following:

(i) Financial Statements. (x) As soon as available and in any event within 90
days after the end of each fiscal year, the consolidated, audited balance sheets of the
Guarantor and each Seller as of the end of each fiscal year of the Guarantor (inclusive of
the Sellers), and the audited financial statements of income and changes in equity of the
Guarantor and each Seller, and the audited statement of cash flows of the Guarantor
(inclusive of the Sellers), for such fiscal year and (y) as soon as available and in any
event within 45 days after the end of each quarter (including the fourth quarter), the
consolidated and consolidating, unaudited balance sheets of the Guarantor (inclusive of the
Sellers) as of the end of each quarter, and the unaudited financial statements of income and
changes in equity of the Guarantor (inclusive of the Sellers), and the unaudited statement
of cash flows of the Guarantor (inclusive of the Sellers), for the portion of the fiscal
year then ended, and (z) within 45 days after the end of each month, monthly consolidated
and unaudited financial statements of income and changes in equity (and, to the extent
available, cash flow statements) and balance sheets as provided in clause (y), all of which
have been prepared in accordance with GAAP and certified by such Guarantor’s and the
Sellers’, as applicable, chief financial officer in the form of a compliance certificate to
be delivered along with the above financial statements. The Sellers and the Guarantor shall
furnish or cause to be furnished to the Buyer any other financial information regarding the
Guarantor and/or the Sellers reasonably requested by the Buyer;

(ii) Loan Data. Monthly reports in form and scope satisfactory to the Buyer,
setting forth data regarding the performance of the Purchased Assets for the immediately
preceding month, and such other information as the Buyer may reasonably request, including,
without limitation, all collections, delinquencies, losses and recoveries related to the
Purchased Assets, any other information regarding the Purchased Assets reasonably requested
by the Buyer, the performance of any loans serviced by or on behalf of each Interim Servicer
and any other financial information regarding the Guarantor reasonably requested by the
Buyer.

(iii) Monthly Servicing Diskettes. On or before the second Business Day prior
to each Repurchase Date, or any other time at the Buyer’s request, a Computer Medium (or any
other electronic transmission acceptable to the Buyer) in a format acceptable to the Buyer
containing such information with respect to the Purchased Assets as the Buyer may reasonably
request upon reasonable prior notice.

(iv) Certifications. Each Seller shall execute and deliver a monthly
certification substantially in the form of Exhibit A-1 attached hereto and the Guarantor
shall execute and deliver a quarterly certification substantially in the form of Exhibit A-2
attached hereto.

h. Notice of Material Events. Each Seller and the Guarantor shall promptly inform the
Buyer in writing of any of the following:

(i) any Default, Event of Default or default or breach by any Seller or the Guarantor
of any other material obligation under any Program Document, or the occurrence or existence
of any event or circumstance that a Seller or the Guarantor with the passage of time expects
to have a reasonable likelihood of becoming an Event of Default;

(ii) any material change in the insurance coverage required of any Seller or the
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
any Seller or the Guarantor, on the one hand, and any Governmental Authority or any other
Person on the other;

(iv) any Material Adverse Change in accounting policies or financial reporting
practices of the Guarantor;

(v) the occurrence of any material employment dispute or licensing dispute and a
description of the strategy for resolving it; and

(vi) any event, circumstance or condition that has resulted, or has a reasonable
likelihood of resulting in either a Material Adverse Change with respect to the Guarantor or
a Material Adverse Effect.

i. Maintenance of Licenses. Each Seller and the Guarantor shall maintain, all
licenses, permits or other approvals necessary for each Seller and the Guarantor to conduct its
business and to perform its obligations under the Program Documents, and each Seller and the
Guarantor shall conduct its business strictly in accordance with applicable law.

j. Taxes. (i) All payments made by the Sellers under this Agreement shall be made
free and clear of, and without deduction or withholding for or on account of, any present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities (including
penalties, interest and additions to tax) with respect thereto imposed by any Governmental
Authority thereof or therein, excluding income taxes, branch profits taxes, franchise taxes or any
other tax imposed on the Buyer’s net income by the United States, a state, a foreign jurisdiction
under the laws of which the Buyer is organized or in which its applicable lending office, or any
political subdivision thereof (the “Excluded Taxes”), all of which shall be paid by the Seller for
their own account not later than the date when due. If a Seller is required by law or regulation to
deduct or withhold any taxes (other than Excluded Taxes) from or in respect of any amount payable
hereunder, it shall: (a) make such deduction or withholding; (b) pay the amount so deducted or
withheld to the appropriate Governmental Authority not later than the date when due; (c) deliver to
the Buyer, promptly, original tax receipts and other evidence satisfactory to the Buyer of the
payment when due of the full amount of such taxes; and (d) pay to the Buyer such additional amounts
as may be necessary so that such Buyer receives, free and clear of all taxes, a net amount equal to
the amount it would have received under this Agreement, as if no such deduction or withholding had
been made.

(ii) Each Seller shall pay and discharge or cause to be paid and discharged, when due,
all taxes, assessments and governmental charges or levies imposed upon it or upon its income
and profits or upon any of its property, real, personal or mixed (including without
limitation, the Purchased Assets) or upon any part thereof, as well as any other lawful
claims which, if unpaid, might become a Lien upon such properties or any part thereof,
except for any such taxes, assessments and governmental charges, levies or claims as are
appropriately contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves are provided.

(iii) Each Seller shall file on a timely basis (including any extensions) all federal,
and material state and local tax and information returns, reports and any other information
statements or schedules required to be filed by or in respect of it.

k. Nature of Business. Neither the Sellers nor the Guarantor shall make any material
change in the nature of its business as carried on as of the date hereof.

l. Limitation on Distributions. If a Default has occurred and is continuing, neither
the Sellers nor the Guarantor shall pay any dividends or distributions with respect to any capital
stock or other equity interests in any Seller or the 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 any Seller or the Guarantor provided that a Seller
or the Guarantor may pay distributions or dividends solely by way of issuance of additional stock
in lieu of cash.

m. Predatory Lending. The Sellers will comply with any and all requirements of any
federal, state or local predatory and abusive lending laws applicable to the origination and
servicing of mortgage loans, and the Sellers have and shall maintain in their possession, available
for the inspection of the Buyer or its designees, and shall deliver to the Buyer or its designees,
within a commercially reasonable time period following a request therefor, evidence of compliance
with such requirements.

n. Merger of the Guarantor. The Guarantor shall not 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 the 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 the Guarantor.

o. Insurance. Each Seller and the Guarantor 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 the Buyer on request full information as to all such insurance, and
provide within fifteen (15) days after receipt of such request the certificates or other documents
evidencing renewal of each such policy. The Guarantor shall continue to maintain coverage, for
itself and its subsidiaries, that encompasses employee dishonesty, forgery or alteration, theft,
disappearance and destruction, robbery and safe burglary, property (other than money and
securities), and computer fraud in an aggregate amount of at least $1,000,000.

p. Affiliate Transaction. Neither the Sellers nor the 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 the Guarantor, as
applicable, than those that could be obtained at the time of such transaction in an arm’s length
transaction with a Person who is not such an Affiliate.

q. Change of Fiscal Year. Neither the Sellers nor the Guarantor will at any time,
directly or indirectly, except upon ninety (90) days’ prior written notice to the Buyer, change the
date on which such Seller’s or the Guarantor’s fiscal year begins from such Seller’s or the
Guarantor’s current fiscal year beginning date.

r. Delivering of Servicing Rights. With respect to the Servicing Rights and Records
of each Loan, the Sellers and the Guarantor shall deliver such Servicing Rights and Records to the
designee of the Buyer, within 75 days of a Purchase Date, unless otherwise stated in writing by the
Buyer; provided that on each Repurchase Date that is subject to a new Transaction, such delivery
requirement is deemed restated for such new Transaction (and the immediately preceding delivery
requirement is deemed to be rescinded) in the absence of directions to the contrary from the Buyer,
and a new 75-day period is deemed to commence as of such Repurchase Date. The Sellers’ and the
Guarantor’s transfer of the Servicing Rights and Records under this Section shall be in accordance
with customary and prudent mortgage banking standards in the industry for the delivery of loans
similar to the Loans.

s. Underwriting Guidelines. In the event that the Sellers make any material amendment
or modification to the Underwriting Guidelines: (i) the Sellers shall promptly deliver to the
Buyer a complete copy of the materially amended or modified Underwriting Guidelines, and (ii) the
Buyer may, at its sole option and discretion, refrain from entering into any further Transactions
with respect to Loans originated under the materially amended or modified Underwriting Guidelines,
but not with respect to Loans that comply with the Underwriting Guidelines approved hereunder.

t. Facility Fee. The Sellers agree to pay to the Buyer on the date of execution of
this Agreement, a facility fee in the amount of the Facility Fee Amount, such payment to be made in
United States dollars, in immediately available funds, without deduction, set-off or counterclaim.
The Buyer may, in its sole discretion, net such commitment fee from the proceeds of any Purchase
Price payable to the Seller.

u. MERS. Each Seller will and will cause the Servicer to comply in all material
respects with the rules and procedures of MERS in connection with the servicing of the MERS
Designated Mortgage Loans for as long as such Loans are registered with MERS.

14. REPURCHASE DATE PAYMENTS/COLLECTIONS

On each Repurchase Date, the related Seller shall remit or shall cause to be remitted to the
Buyer the Repurchase Price, together with any other Obligations then due and payable.

15. REPURCHASE OF THE PURCHASED ASSETS, CHANGE OF LAW

a. Upon discovery by any Seller or the Guarantor of a breach of any of the representations and
warranties set forth in Appendix A hereto, such Seller or the Guarantor shall give prompt written
notice thereof to the Buyer. Upon any such discovery by the Buyer, the Buyer will notify the
Sellers. It is understood and agreed that the representations and warranties set forth in Appendix
A hereto shall survive delivery of the respective Loan Files to the Custodian and shall inure to
the benefit of the Buyer. The fact that the 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 the Buyer’s right to demand repurchase as provided under this Agreement. The
related Seller shall within two (2) Business Days of the earlier of the related Seller’s or the
Guarantor’s discovery or either the related Seller or the Guarantor receiving notice, with respect
to any Purchased Asset, of (i) any breach of a representation or warranty contained in Appendix A
hereto 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 the related Seller’s or the Guarantor’s discovery of such breach or delivery failure or
the related Seller or the Guarantor receiving notice thereof that such breach or delivery failure
has not been remedied by the related Seller, such Seller shall promptly upon receipt of written
instructions from the Buyer, at the 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 the Buyer, or (ii) transfer comparable Substitute Assets to the Buyer,
as provided in Section 16 hereof.

b. If the 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 the related Seller (i) shall,
upon its receipt of notice of such fact and demand from the Buyer (with a copy of such notice to
the Custodian), repurchase the Purchased Assets subject to the Transaction on the next succeeding
Business Day and, at the related Seller’s election, concurrently enter into a new Transaction with
the Buyer with a Pricing Rate based on the Prime Rate plus the margin set forth in the Side Letter
as part of the Pricing Rate and (ii) may elect, by giving notice to the Buyer and the Custodian,
that all new Transactions shall have Pricing Rates based on the Prime Rate plus such margin.

c. If the Buyer determines in its sole discretion that any Change in Law or any change in
accounting rules regarding capital requirements has or would have the effect of reducing the rate
of return on the Buyer’s capital or on the capital of any Affiliate of the Buyer as a consequence
of such Change in Law or change in accounting rules on this Agreement, then from time to time the
related Seller will compensate the Buyer or the Buyer’s Affiliate, as applicable, upon receipt by
such Seller of an itemized bill from the Buyer or the Buyer’s Affiliate, as applicable, for such
reduced rate of return suffered as a consequence of such Change in Law or change in accounting
rules on terms similar to those imposed by the Buyer on its other similarly affected customers. The
Buyer shall provide the Sellers with prompt notice as to any Change in Law or change in accounting
rules. Notwithstanding any other provisions in this Agreement, in the event of any such Change in
Law or change in accounting rules, the Sellers will have the right to terminate all Transactions
then outstanding without any prepayment penalty as of a date selected by the Sellers, which date
shall be prior to the then applicable Repurchase Date and which date shall thereafter for all
purposes hereof be deemed to be the Repurchase Date and the Sellers shall be entitled to a pro rata
refund of the Facility Fee, which refund shall equal the Facility Fee Amount, multiplied by a
fraction, the numerator of which shall be the number of days remaining in the facility under this
Agreement and the denominator of which shall be 360.

16. SUBSTITUTION

The related Seller may, subject to agreement with and acceptance by the 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 the Buyer of such other
Substitute Assets and transfer to the related Seller of such Purchased Assets. After substitution,
the Substitute Assets shall be deemed to be the Purchased Assets.

17. REPURCHASE TRANSACTIONS

The 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 the Buyer’s choice, in all cases subject to the Buyer’s obligation to
reconvey the Purchased Assets (and not substitutes therefor) on the Repurchase Date. In the event
the Buyer engages in a repurchase transaction with any of the Purchased Assets or otherwise pledges
or hypothecates any of the Purchased Assets, the Buyer shall have the right to assign to the
Buyer’s counterparty any of the applicable representations or warranties in Appendix A hereto 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. The related Seller fails to transfer the Purchased Assets to the Buyer on the applicable
Purchase Date (provided the Buyer has tendered the related Purchase Price);

b. The related Seller either fails to repurchase the Purchased Assets on the applicable
Repurchase Date or fails to perform its obligations under Section 6;

c. Any Seller or the Guarantor shall fail to perform, observe or comply with any other
material term, covenant or agreement contained in the Program Documents (other than Section 12(n)
hereof and Appendix A hereto) and such failure is not cured within the time period expressly
provided or, if no such cure period is provided, within three (3) Business Days of the earlier of
(i) such party’s receipt of written notice from the Buyer or the 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 a Seller or the Guarantor (or any of the Sellers’ or
the 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 hereto) shall have been
incorrect or untrue in any material respect when made or repeated or deemed to have been made or
repeated;

e. Any Seller, the Guarantor, or any of the Sellers’ or the Guarantor’s Subsidiaries shall
fail (i) to pay any Seller’s, the Guarantor’s, or the Sellers’ or the Guarantor’s Subsidiaries’
Indebtedness (aggregating in excess of $10,000,000 with respect to the Guarantor or the Guarantor
and its Subsidiaries, taken as a whole), or any interest or premium thereon when due (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise), or (ii) to make any
payment when due under any Seller’s, the Guarantor’s, or the Sellers’ or the Guarantor’s
Subsidiaries’ Guarantee of another person’s Indebtedness for borrowed money (aggregating in excess
of $10,000,000 with respect to the Guarantor or the Guarantor and its Subsidiaries, taken as a
whole), and, in either case, such failure shall entitle any related counterparty to declare any
such Indebtedness or Guarantee to be due and payable, or required to be prepaid (other than by a
regularly scheduled required prepayment), prior to the stated maturity thereof;

f. A custodian, receiver, conservator, liquidator, trustee, sequestrator or similar official
for any Seller, the Guarantor or any of the Sellers’ or the Guarantor’s Subsidiaries, or of any
Sellers’, the Guarantor’s or their respective Property (as a debtor or creditor protection
procedure), is appointed or takes possession of such property; or the Seller, the Guarantor or any
of the Sellers’ or the Guarantor’s Subsidiaries generally fails to pay any Seller’s, the
Guarantor’s or the Sellers’ or the Guarantor’s Subsidiaries’ debts as they become due; or any
Seller, the Guarantor or any of the Sellers’ or the 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 any
Seller, the Guarantor or any of the Sellers’ or the Guarantor’s Subsidiaries; or any Sellers’, the
Guarantor’s or the Sellers’ or the Guarantor’s Subsidiaries’ Property is sequestered by court or
administrative order; or an involuntary petition is filed against any Seller, the Guarantor or any
of the Sellers’ or the 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 which is not dismissed within 60 days of
filing. For the purposes of this Section 18(f), any reference to “Subsidiaries” shall not include
any of the entities listed in Exhibit B hereto;

g. Any Seller, the Guarantor or any of the Sellers’ or the 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 any Seller, the Guarantor or any of the Sellers’ or the Guarantor’s Subsidiaries, or
of all or any part of any Seller’s, the Guarantor’s or the Sellers’ or the Guarantor’s
Subsidiaries’ Property; or makes an assignment for the benefit of any Seller, the Guarantor or the
Sellers’ or the Guarantor’s Subsidiaries’ creditors. For the purposes of this Section 18(g), any
reference to “Subsidiaries” shall not include any of the entities listed in Exhibit B hereto.

h. Any final, nonappealable judgment or order for the payment of money in excess of
$10,000,000 is rendered against any Seller, the Guarantor or any of the Sellers’ or the Guarantor’s
Subsidiaries and remains undischarged or unsatisfied after the passage of 60 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 any Seller, the
Guarantor or any of the Sellers’ or the Guarantor’s Subsidiaries (other than the Subsidiaries
listed in Exhibit B hereto), or shall have taken any action to displace the executive management of
any Seller, the Guarantor or any of the Sellers’ or the Guarantor’s Subsidiaries (and such action
results or is likely to result in a Material Adverse Change with respect to the Guarantor) or to
curtail its authority in the conduct of the business of any Seller, the Guarantor or any of the
Sellers’ or the Guarantor’s Subsidiaries (other than the Subsidiaries listed in Exhibit B hereto),
or takes any action in the nature of enforcement to remove, limit or restrict the approval of any
Seller, the Guarantor or any of the Sellers’ or the Guarantor’s Subsidiaries (other than the
Subsidiaries listed in Exhibit B hereto) as an issuer, buyer or a seller/servicer of Loans or
securities backed thereby;

j. Reserved;

k. Any Seller, the Guarantor or any of the Sellers’ or the 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
$10,000,000 with respect to the Guarantor or the 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;

l. In the reasonable good faith judgment of the Buyer, any Material Adverse Change shall have
occurred with respect to the Guarantor;

m. Any Seller or the Guarantor shall admit in writing its inability to, or intention not to,
perform any of such Seller’s or the Guarantor’s respective material Obligations;

n. Except as expressly permitted in this Agreement, any Seller or the Guarantor dissolves,
merges or consolidates with another entity, or sells, transfers, or otherwise disposes of a
material portion of such Seller’s or the Guarantor’s (as applicable) business or assets unless the
Buyer’s written consent is given;

o. 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 the
Collateral purported to be covered hereby;

p. Any Seller’s or the Guarantor’s audited annual financial statements or the notes thereto or
other opinions or conclusions stated therein shall be qualified or limited by reference to the
status of such Seller or the Guarantor as a “going concern” or a reference of similar import or
shall indicate Guarantor has a negative net worth or is insolvent;

q. A Change of Control of any Seller (unless otherwise permitted hereunder) or the Guarantor
shall have occurred without the prior written approval of the Buyer;

r. [Reserved];

s. At any time, the ratio of the Guarantor’s Total Indebtedness to Adjusted Tangible Net Worth
shall exceed 15:1;

t. The Buyer shall reasonably request information regarding the financial well-being of any
Seller or the Guarantor and such information shall not have been provided within a commercially
reasonable timeframe;

u. At the end of any month, the Guarantor fails to maintain at least $60,000,000 on a
consolidated basis of Liquid Assets;

v. At any time the Adjusted Tangible Net Worth of the Guarantor is less than the sum of (i)
$750,000,000; and (ii) 50% of all increases in the Guarantor’s total stockholders’ equity as a
result of issuances in common stock of the Guarantor since November 1, 2004;

w. [Reserved];

x. [Reserved];

y. [Reserved];

z. An Event of Default shall have occurred and is continuing under any of the other Program
Documents;

aa. [Reserved];

bb. After such time as any Seller or the Guarantor has elected to be treated as a REIT, the
failure of such Seller or the Guarantor (as applicable) to continue to be (i) qualified as a REIT
as defined in Section 856 of the Code and (ii) entitled to a dividend paid deduction under
Section 857 of the Code with respect to dividends paid by it with respect to each taxable year for
which it claims a deduction on its Form 1120 — REIT filed with the United States Internal Revenue
Service for such year, or the entering into by such Seller or the Guarantor of any material
“prohibited transactions” as defined in Sections 857(b) and 856(c) of the Code; and

cc. After such time as any Seller or the Guarantor has elected to be treated as a REIT, the
failure of such Seller or the Guarantor (as applicable) to satisfy any of the following asset or
income tests and the Buyer has delivered notice of an Event of Default to such Seller or the
Guarantor with respect thereto:

(i) At the close of each taxable year, at least 75 percent of such Seller’s or the
Guarantor’s gross income consists of (i) “rents from real property” within the meaning of
Section 856(c)(3)(A) of the Code, (ii) interest on obligations secured by mortgages on real
property or on interests in real property, within the meaning of Section 856(c)(3)(B) of the
Code, (iii) gain from the sale or other disposition of real property (including interests in
real property and interests in mortgages on real property) which is not property described
in Section 1221(a)(1) of the Code, within the meaning of Section 856(c)(3)(C) of the Code,
(iv) dividends or other distributions on, and gain (other than gain from “prohibited
transactions” within the meaning of Section 857(b)(6)(B)(iii) of the Code) from the sale or
other disposition of, transferable shares (or transferable certificates of beneficial
interest) in other qualifying REITs within the meaning of Section 856(d)(3)(D) of the Code,
and (v) amounts described in Sections 856(c)(3)(E) through 856(c)(3)(I) of the Code.

(ii) At the close of each taxable year, at least 95 percent of such Seller’s or the
Guarantor’s gross income consists of (i) the items of income described in paragraph 1 hereof
(other than those described in Section 856(c)(3)(I) of the Code), (ii) gain realized from
the sale or other disposition of stock or securities which are not property described in
Section 1221(a)(1) of the Code, (iii) interest, (iv) dividends, and (v) income derived from
payments to the Guarantor on interest rate swap or cap agreements, options, futures
contracts, forward rate agreements and other similar financial instruments entered into to
reduce the interest rate risks with respect to any indebtedness incurred or to be incurred
to acquire or carry real estate assets, or gain from the sale or other disposition of such
an investment as described in section 856(c)(5)(G), in each case within the meaning of
Section 856(c)(2) of the Code.

(iii) At the close of each quarter of such Seller’s or the Guarantor’s taxable year, at
least 75 percent of the value of such Seller’s or the Guarantor’s total assets (as
determined in accordance with Treasury Regulations Section 1.856-2(d)) has consisted of and
will consist of real estate assets within the meaning of Sections 856(c)(4) and 856(c)(5)(B)
of the Code, cash and cash items (including receivables which arise in the ordinary course
of such Seller’s or the Guarantor’s operations, but not including receivables purchased from
another person), and Government Securities.

(iv) At the close of each quarter of such Seller’s or the Guarantor’s taxable years,
(a) not more than 25 percent of such Seller’s or the Guarantor’s total asset value will be
represented by securities (other than those described in paragraph (iii) , (b) not more than
20 percent of such Seller’s or the Guarantor’s total asset value will be represented by
securities of one or more taxable REIT subsidiaries, and (c) (i) not more than 5 percent of
the value of such Seller’s or the Guarantor’s total assets will be represented by securities
of any one issuer (other than Government Securities and securities of taxable REIT
subsidiaries), and (ii) neither the Sellers nor the Guarantor will hold securities
possessing more than 10 percent of the total voting power or value of the outstanding
securities of any one issuer (other than Government Securities, securities of taxable REIT
subsidiaries, and securities of a qualified REIT subsidiary within the meaning of
Section 856(i) of the Code).

19. REMEDIES

Upon the occurrence of an Event of Default, the 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 the Buyer:

a. The Repurchase Date for each Transaction hereunder shall, if it has not already occurred,
be deemed immediately to occur (except that, in the event that the Purchase Date for any
Transaction has not yet occurred as of the date of such exercise or deemed exercise, such
Transaction shall be deemed immediately canceled).

b. The Sellers’ obligations hereunder to repurchase all the Purchased Assets at the Repurchase
Price therefor on the Repurchase Date in such Transactions shall thereupon become immediately due
and payable; all Income paid after such exercise or deemed exercise shall be remitted to and
retained by the Buyer and applied to the aggregate Repurchase Prices and any other amounts owing by
the Sellers hereunder; the Sellers and the Guarantor shall immediately deliver to the Buyer or its
designee any and all Records relating to the Purchased Assets subject to such Transaction then in
the Sellers’ and the 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 the Buyer.

The Buyer may (A) sell, on or following the Business Day following the date on which the
Repurchase Price became due and payable pursuant to this Section 19(b) without notice or demand of
any kind, at a public or private sale and at such price or prices as the Buyer may reasonably deem
satisfactory any or all the Purchased Assets or (B) in its sole discretion elect, in lieu of
selling all or a portion of such Purchased Assets, to give the Sellers 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 the Sellers hereunder. The Sellers shall remain
liable to the Buyer for any amounts that remain owing to the Buyer following a sale or credit under
the preceding sentence. The proceeds of any disposition of the Purchased Assets shall be applied
first, to the reasonable costs and expenses incurred by the 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 a Transaction or the underlying Purchased
Assets does not require a public purchase or sale and that a good faith private purchase or sale
shall be deemed to have been made in a commercially reasonable manner. Accordingly, the Buyer may
elect the time and manner of liquidating any Purchased Asset and nothing contained herein shall
obligate the Buyer to liquidate any Purchased Asset on the occurrence of an Event of Default or to
liquidate all the Purchased Assets in the same manner or on the same Business Day or constitute a
waiver of any right or remedy of the 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, the Buyer shall have the right to proceed against any of
the Sellers’ assets which may be in the possession of the Buyer, any of the 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 the Sellers to the Buyer pursuant to this Agreement. The Buyer
may set off cash, the proceeds of the liquidation of the Purchased Assets and the Additional
Purchased Assets, any other Collateral or its proceeds and all other sums or obligations owed by
the Buyer to the Sellers against all of the Sellers’ Obligations to the Buyer, whether under this
Agreement, under a Transaction, or under any other agreement among the parties, or otherwise,
whether or not such Obligations are then due, without prejudice to the 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 Sellers 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 Sellers or any third party
acting for the Sellers and the Sellers shall deliver to the Buyer such assignments as the Buyer
shall request.

The Buyer may direct all Persons servicing the Purchased Assets to take such action with
respect to the Purchased Assets as the Buyer determines appropriate.

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

The 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 the Buyer is authorized
hereunder to do. The Sellers shall pay all costs and expenses incurred by the Buyer in connection
with the appointment and activities of such receiver.

The Buyer may enforce its rights and remedies hereunder without prior judicial process or
hearing, and the Sellers hereby expressly waive, to the extent permitted by law, any right the
Sellers might otherwise have to require the Buyer to enforce its rights by judicial process. The
Sellers also waive, to the extent permitted by law, any defense the Sellers 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.
The Sellers recognize 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, the 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 including, without limitation, all rights and
remedies available to a purchaser/secured party under the Uniform Commercial Code

Upon the occurrence of an Event of Default, except as otherwise expressly provided in this
Agreement, the Buyer shall have 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 the Sellers.

The Sellers hereby authorize the Buyer, at the Sellers’ expense, to file such financing
statement or statements relating to the Purchased Assets and the Collateral without the Sellers’
signature thereon as the Buyer at its option may deem appropriate, and appoints the Buyer as the
Sellers’ attorney-in-fact to execute any such financing statement or statements in the Sellers’
name and to perform all other acts which the 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 the Sellers as its attorney-in-fact. This
power of attorney is coupled with an interest and is irrevocable without the Buyer’s consent.

20. DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE

No failure on the part of the 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
the 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 the 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 the Buyer to exercise any of its rights under any
other related document. The 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. Each Seller and the Guarantor agrees to pay on demand (i) all reasonable out-of-pocket
costs and expenses of the 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 the Buyer with respect to advising the 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 the Sellers or the Guarantor or with other creditors
of the Sellers or the Guarantor or any of their Subsidiaries arising out of any Default or Event of
Default or any events or circumstances that may give rise to a Default or Event of 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 the 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 the Buyer) whether
or not the transactions contemplated hereby are consummated.

b. Each Seller and the Guarantor agrees to indemnify and hold harmless the Buyer and each of
its respective Affiliates and their respective 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 third party claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of or in connection
with or by reason of (including, without limitation, in connection with any investigation,
litigation or other proceeding (whether or not such Indemnified Party is a party thereto) relating
to, resulting from or arising out of any of the Program Documents and all other documents related
thereto, any breach of a representation or warranty of the Sellers or the Guarantor 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, (ii) the actual or alleged violation of any federal, state, municipal or
local predatory lending laws, or (iii) 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 any Seller or the Guarantor against the
Indemnified Party, and such Seller or the Guarantor is ultimately the successful party in any
resulting litigation or arbitration. Each Seller and the Guarantor also agrees not to assert any
claim against the 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 any 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, such Seller shall, except as otherwise provided in Sections 15(c) and 24, upon demand by
the Buyer, pay to the Buyer any Breakage Costs incurred as of a result of such payment.

d. If any 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 such Seller by the Buyer, in its sole discretion
and the Sellers shall remain liable for any such payments by the Buyer. No such payments to the
Buyer shall be deemed a waiver of any of the Buyer’s rights under the Program Documents.

e. Without prejudice to the survival of any other agreement of the Sellers hereunder, the
covenants and obligations of the Sellers 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 the Buyer against full payment therefor.

23. WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS

The Sellers hereby expressly waive, 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 the Buyer or the Custodian contained in the Program Documents or any
other instrument delivered in connection therewith, and any right that it may have to direct the
order in which any of the Purchased Assets shall be disposed of in the event of any disposition
pursuant hereto.

24. REIMBURSEMENT

All sums reasonably expended by the Buyer in connection with the exercise of any right or
remedy provided for herein shall be and remain the Sellers’ obligation. The Sellers agree 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 the Buyer and/or the
Custodian in connection with the preparation, enforcement (including any waivers), administration
and amendments of the Program Documents (regardless of whether a Transaction is entered into
hereunder), the taking of any action, including a Guarantor action, required or permitted to be
taken by the Buyer (without duplication to the Buyer) and/or the Custodian pursuant thereto, any
“due diligence” or loan agent reviews conducted by the Buyer or on its behalf or by refinancing or
restructuring in the nature of a “workout.” If the Buyer determines that, due to the introduction
of, any change in, or the compliance by the 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 the Buyer in engaging in the present or any future Transactions, then the Sellers
agree to pay to the Buyer, from time to time, upon demand by the Buyer (with a copy to the
Custodian) and upon receipt by the Sellers of an itemized bill of such amounts, the actual cost of
additional amounts as specified by the Buyer to compensate the 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, the Sellers will have the right to
terminate all Transactions then outstanding as of a date selected by the Sellers (without the
payment by the Sellers 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, the Buyer shall promptly notify the Sellers if any events
in clause (i) or (ii) of this Section 24 occur.

25. FURTHER ASSURANCES

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

26. ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION

This Agreement supersedes and integrates all previous negotiations, contracts, agreements
(including, without limitation, the Original Agreement) and understandings among the parties
relating to a sale and repurchase of the Purchased Assets and the Additional Purchased Assets
thereto, and it, together with the other Program Documents, and the other documents delivered
pursuant hereto or thereto, contains the entire final agreement of the parties. No prior
negotiation, agreement, understanding or prior contract shall have any validity.

27. TERMINATION

This Agreement shall remain in effect until the earlier of (i) September 1, 2007 or (ii) at
the Buyer’s option upon the occurrence of an Event of Default (such date, the “Termination Date”).
However, no such termination shall affect the Sellers’ outstanding obligations to the Buyer at the
time of such termination. The Sellers’ obligations to indemnify the Buyer pursuant to this
Agreement shall survive the termination hereof.

28. ASSIGNMENT

a. The Program Documents are not assignable by the Sellers. The 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 the Buyer shall maintain, for review by the Sellers upon written
request, a register of assignees and a copy of an executed assignment and acceptance by the Buyer
and assignee (the “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 the Buyer hereunder, and
(b) the Buyer shall, to the extent that such rights and obligations have been so assigned by it to
either (i) an Affiliate of the Buyer which assumes the obligations of the Buyer or (ii) to another
Person approved by the Sellers (such approval not to be unreasonably withheld) which assumes the
obligations of the Buyer, be released from its obligations hereunder accruing thereafter and under
the Program Documents. Unless otherwise stated in the Assignment and Acceptance, the Sellers shall
continue to take directions solely from the Buyer unless otherwise notified by the Buyer in
writing. The Buyer may distribute to any prospective assignee any document or other information
delivered to the Buyer by the Sellers. Notwithstanding any assignment by the Buyer pursuant to this
Section 28, the Buyer shall remain liable as to the Transactions.

b. The Buyer may furnish to prospective assignees any information concerning the Guarantor,
the Sellers or any of their Subsidiaries, in possession of the Buyer from time to time provided
that such assignee agrees to keep such information (unless the information is publicly available)
in strict confidence.

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 the Guarantor, the Sellers and the 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 the Sellers may not assign or transfer any of their
rights or obligations under this Agreement or any other Program Document without the prior written
consent of the 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
(EXCEPT FOR SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

32. CONSENT TO JURISDICTION

EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY. EACH SELLER HEREBY IRREVOCABLY AND
UNCONDITIONALLY CONSENTS, ON BEHALF OF ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE PERSONAL
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. EACH 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. EACH SELLER HEREBY IRREVOCABLY CONSENTS TO THE
SERVICE OF A SUMMONS AND COMPLAINT AND OTHER PROCESS IN ANY ACTION, CLAIM OR PROCEEDING BROUGHT BY
THE BUYER IN CONNECTION WITH THIS AGREEMENT OR THE OTHER PROGRAM DOCUMENTS, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS, ON BEHALF
OF ITSELF OR ITS PROPERTY, IN THE MANNER SPECIFIED IN THIS SECTION 32 AND TO ITS ADDRESS SPECIFIED
IN SECTION 35 OR SUCH OTHER ADDRESS AS IT SHALL HAVE PROVIDED IN WRITING TO THE BUYER. NOTHING IN
THIS SECTION 32 SHALL AFFECT THE RIGHT OF THE BUYER TO (I) SERVE LEGAL PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW, OR (II) BRING ANY ACTION OR PROCEEDING AGAINST ANY SELLER OR ITS
PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION.

33. SINGLE AGREEMENT

The Sellers, the Guarantor and the 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, the Sellers, the Guarantor and the Buyer each agree
(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 transfers 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

The Sellers and the 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 the 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 Transaction as described in Sections 555 and 559 of
Title 11 of the USC.

The Sellers and the Buyer acknowledge that it is their intent for purposes of U.S. federal,
state and local income and franchise taxes to treat each Transaction as Indebtedness of the related
Seller that is secured by the Purchased Assets and that the Purchased Assets are owned by the
related Seller in the absence of a Default by such Seller. The Sellers and the Buyer agree to such
treatment and agree to take no other action inconsistent with this treatment unless required by
law.

35. NOTICES AND OTHER COMMUNICATIONS

Except as provided herein, all notices required or permitted by this Agreement shall be in
writing (including without limitation by Electronic Transmission, email or facsimile) and shall be
effective and deemed delivered only when received by the party to which they are sent; provided,
however, that a facsimile transmission shall be deemed to be received when transmitted so long as
the transmitting machine has provided an electronic confirmation (without error message) of such
transmission and notices being sent by first class mail, postage prepaid, shall be deemed to be
received five (5) Business Days following the mailing thereof. Any such notice shall be sent to a
party at the address or facsimile transmission number set forth below:

	 	 	 
	if to the Sellers:

	 	

	 
	 	 
	[New Century Mortgage Corporation]

	 
	 	 
	[Home123 Corporation]

	 	

	 
	 	 
	[New Century Credit Corporation]

	 
	 	 
	[NC Capital Corporation]

18400 Von Karman

Irvine, California 92612

Attention: Kevin Cloyd

Telephone:

Facsimile:

	 	

(949) 862-7941

(949) 440-7033

	 	 	 
	with a copy to :

	 	

	 
	 	 
	(At the same address as above)

	 
	 	 
	Attention: Legal Department

	 
	 	 
	Telephone:

Facsimile:

	 	(949) 225-7808

(949) 440-7033

	 	 	 
	if to the Buyer or the Agent:

	 	

	Bank of America, N.A.

TX1-492-66-01

901 Main Street, 66th Floor

Dallas, Texas 75202-3714

Attention:

Telephone:

Facsimile:

with a copy to:

	 	

Sean A. Tobias

(214) 209-1584

(214) 530-2657

	Attention:

Telephone:

Facsimile:

	 	Christopher Young

(704) 388-8403

(704) 409-0593
	 
	 	 
	or, for Transaction Notices and related documents:

	 
	 	 
	Attention:

Telephone:

Facsimile:

	 	Cameron Buchanan

(704) 386-3614

(704) 683-9235

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

36. CONFIDENTIALITY

This Agreement and its terms, provisions, supplements and amendments, and transactions and
notices hereunder, are proprietary to the Buyer and the Agent and shall be held by the Sellers and
the Guarantor (and the Sellers and the Guarantor shall cause the Interim Servicer to hold it) in
strict confidence and shall not be disclosed to any third party without the consent of the Buyer
except for (i) disclosure to the Sellers’ or the Guarantor’s direct and indirect parent companies,
directors, 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 filings required under Securities and Exchange Commission or state securities’ laws;
provided that neither the Sellers nor the Guarantor shall file the Side Letter with the Securities
and Exchange Commission or state securities office, unless otherwise agreed by the Buyer in
writing, and the Sellers and the 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), the Sellers
shall take reasonable actions to provide the Buyer with prior written notice. Notwithstanding
anything herein to the contrary, 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 or 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. JOINT AND SEVERAL LIABILITY

The liability of the Sellers hereunder is joint and several. The Sellers hereby: (a)
acknowledge and agree that the Buyer and the Custodian shall have no obligation to proceed against
one Seller before proceeding against the other Sellers, (b) waive any defense to their obligations
under this Agreement based upon or arising out of the disability or other defense or cessation of
liability of one Seller versus the other or of any other Person, and (c) waive any right of
subrogation or ability to proceed against any Person until the Obligations are paid in full and the
Program Documents are terminated in accordance with the terms thereof.

[Signature Page Follows]

1

IN WITNESS WHEREOF, the Sellers, the Guarantor and the Buyer have caused their names to
be signed to this Third Amended and Restated Master Repurchase Agreement by their respective
officers thereunto duly authorized as of the Effective Date.

	 
	 

	BANK OF AMERICA, N.A.,

as Buyer and Agent, as applicable

	 

	By: /s/ Sean A. Tobias

	Name: Sean A Tobias

	Title: Principal

NEW CENTURY MORTGAGE CORPORATION,

as Seller, jointly and severally

By: /s/ Karl S. Weiss

Name: Karl S. Weiss

Title: SVP

HOME123 CORPORATION, as Seller, jointly and severally

By: /s/ Karl S. Weiss

Name: Karl S. Weiss

Title: SVP

NEW CENTURY CREDIT CORPORATION, as Seller, jointly and severally

By: /s/ Karl S. Weiss

Name: Karl S. Weiss

Title: SVP

NC CAPITAL CORPORATION, as Seller, jointly and severally

By: /s/ Karl S. Weiss

Name: Karl S. Weiss

Title: SVP

Acknowledged and Agreed:

	 
	 

	NEW CENTURY FINANCIAL CORPORATION,

	 

	as Guarantor

	 
	 

	By: /s/ Robert K. Cole

Name: Robert K. Cole

Title: Chairman of the Board

By: /s/ Stergios Theologides

Name: Stergios Theologides

Title: EVP

	 

2EX-10.2

EXHIBIT 10.2

FOURTH AMENDED AND RESTATED GUARANTY

THIS FOURTH AMENDED AND RESTATED GUARANTY, dated as of September 7, 2006, (this “Guaranty”),
is made between New Century Financial Corporation (f/k/a New Century REIT, Inc.) (the “Guarantor”)
and Bank of America, N.A. (the “Buyer”, which term shall include any buyer for whom the Buyer acts
as the Agent as defined and provided for in the Master Repurchase Agreement referred to below).

RECITALS

A. NCFC and the Buyer entered into that certain Amended and Restated Guaranty Agreement
amended and restated to and including September 15, 2005 (the “Third Amended and Restated
Guaranty”).

B. NCFC and the Buyer, desire to enter into this Guaranty to amend, restate and replace the
Third Amended and Restated Guaranty in its entirety.

C. Pursuant to the Third Amended and Restated Master Repurchase Agreement, dated as of
September 7, 2006, (as further amended, supplemented or otherwise modified from time to time, the
“Master Repurchase Agreement”), among NCMC, Home123 Corporation, New Century Credit Corporation and
NC Capital Corporation (collectively the “Sellers” and individually a “Seller”) and the Buyer, the
Buyer has agreed to purchase certain loans (the “Loans”) from the Sellers and the Sellers have
agreed to repurchase such Loans upon the terms and subject to the conditions set forth therein.

D. As of the date hereof, the Guarantor holds all of the outstanding shares of the Sellers and
will therefore derive a benefit from the Buyer’s purchase and sale of Loans from and to the Sellers
pursuant to the Master Repurchase Agreement. To induce the Buyer to enter into the Master
Repurchase Agreement and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Guarantor has agreed to guaranty the Sellers’ obligations with
respect to the Master Repurchase Agreement and the documents referenced therein.

E. It is a condition precedent to the Buyer entering into the Master Repurchase Agreement and
to the obligation of the Buyer to purchase the Loans from the Sellers under the Master Repurchase
Agreement that the Guarantor shall have executed and delivered this Guaranty to the Buyer.

NOW, THEREFORE, for good and valuable consideration, receipt of which by the parties hereto is
hereby acknowledged, the parties hereto hereby agree as follows:

1. Defined Terms. (a) Unless otherwise defined herein, terms defined in the Master
Repurchase Agreement and used herein shall have the meanings given to them in the Master Repurchase
Agreement.

(b) “Expiration Date” shall have the meaning set forth in Section 2(c) herein.

(c) “Obligations” shall mean the obligations and liabilities of the Sellers to the
Buyer, including, without limitation, the obligations whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which may arise under, or
out of or in connection with the Master Repurchase Agreement, any other Program Documents and any
other document made, delivered or given in connection therewith or herewith, whether on account of
covenants, Repurchase Prices, reimbursement obligations, fees, indemnities, costs, expenses
(including, without limitation, all fees and disbursements of counsel to the Buyer that are
required to be paid by the Sellers pursuant to the terms of the Master Repurchase Agreement) or
otherwise.

(d) “The words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Guaranty shall refer to this Guaranty as a whole and not to any particular provision of this
Guaranty, and section and paragraph references are to this Guaranty unless otherwise specified.

(e) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

2. Guaranty. (a) The Guarantor hereby, unconditionally and irrevocably, guarantees to
the Buyer and its successors, indorsees, transferees and assigns the prompt and complete payment
and performance by the Sellers when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations.

(b) The Guarantor further agrees to pay any and all expenses (including, without limitation,
all reasonable fees and disbursements of counsel) which may be paid or incurred by the Buyer in
enforcing any rights with respect to, or collecting, any or all of the Obligations and/or enforcing
any rights with respect to, or collecting against, the Guarantor under this Guaranty. This Guaranty
shall remain in full force and effect until the Obligations are paid in full, notwithstanding that
from time to time prior thereto, the Sellers may be free from any Obligations.

(c) No payment or payments made by any Seller, the Guarantor, any other guarantor or any other
Person or received or collected by the Buyer from a Seller, the Guarantor, any other guarantor or
any other Person by virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of the Obligations shall
be deemed to modify, reduce, release or otherwise affect the liability of the Guarantor hereunder
which shall, notwithstanding any such payment or payments other than payments made by the Guarantor
in respect of the Obligations or payments received or collected from the Guarantor in respect of
the Obligations, remain liable for the Obligations up to the maximum liability of the Guarantor
hereunder until both the Obligations are paid in full and the Master Repurchase Agreement is
terminated (such date, the “Expiration Date”).

(d) The Guarantor agrees that whenever, at any time, or from time to time, it shall make any
payment to the Buyer on account of its liability hereunder, it will notify the Buyer in writing
that such payment is made under this Guaranty for such purpose.

(e) The Guarantor hereby waives any right of subrogation or ability to proceed against any
Person until all amounts owed to the Buyer by the Guarantor pursuant to this Guaranty are paid in
full.

3. Representations and Warranties of the Guarantor.

3.01 The Guarantor hereby represents and warrants that:

(a) It is duly organized and validly existing in good standing under the laws of the
jurisdiction under which it is organized and is duly qualified to do business and is in good
standing in every other jurisdiction as to which the nature of the business conducted by it makes
such qualification necessary 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
license, permit, charter, registration or approval will not cause a Material Adverse Effect or
impair the enforceability of any Loan.

(b) It has the full power, authority and legal right to execute, deliver and perform its
obligations under this Guaranty. This Guaranty has been duly executed and delivered by it, has not
been amended or otherwise modified, is in full force and effect and is the legal, valid and binding
obligation of the Guarantor, enforceable against it in accordance with its terms, except as may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting the rights of creditors generally and to the application of general principles of equity
(regardless of whether considered in a proceeding in equity or at law).

(c) Neither the execution and delivery of this Guaranty nor the consummation of the
transactions contemplated herein will conflict with or result in a breach of, or require any
consent under, any applicable law or regulation, or any order, writ, injunction or decree of any
court or governmental authority or agency, or any material agreement or instrument to which the
Guarantor is a party or by which the Guarantor or its property is bound or to which the Guarantor
is subject, or constitute a default under any such material agreement or instrument, or (except for
the liens created pursuant hereto) result in the creation or imposition of any lien or encumbrance
upon the Guarantor’s revenues or assets pursuant to the terms of any such material agreement or
instrument.

(d) The Guarantor has received and reviewed copies of the Program Documents.

(e) There is no action, suit or proceeding at law or in equity by or before any governmental
authority, arbitral tribunal or other body now pending, or to the best of the Guarantor’s
knowledge, threatened against or affecting the Guarantor or any of its property which is reasonably
likely to be adversely determined and which, if adversely determined would have a reasonable
likelihood of having a Material Adverse Effect.

4. Covenants of the Guarantor.

4.01 The Guarantor covenants and agrees that:

(a) It shall pay and discharge all taxes now or hereafter imposed on it, on its income or
profits, on any of its property or upon the liens provided herein prior to the date on which
penalties attach thereto except for any such taxes as are being appropriately contested in good
faith by appropriate proceedings diligently conducted and with respect to which adequate reserves
are provided and such reserves do not create a Default under any of the covenants in the Repurchase
Agreement; it shall promptly pay any valid, final judgment enforcing any such tax and cause the
same to be satisfied of record.

(b) It shall notify the Buyer promptly upon obtaining knowledge of any material action, suit
or proceeding at law or in equity by or before any Government Authority pending or threatened
against it or the Sellers.

4.02 Termination. When all of the Obligations shall have been paid in full, this
Agreement shall terminate.

4.03 Further Assurances. The Guarantor agrees to, from time to time upon the request
of the Buyer, execute and deliver such further documents and do such other acts and things as the
Buyer may reasonably request in order to effectuate the purposes of this Guaranty.

5. Right of Set-off. Upon the occurrence of any Event of Default, the Guarantor hereby
irrevocably authorizes the Buyer or any of its Affiliates at any time and from time to time without
notice to the Guarantor, any such notice being expressly waived by the Guarantor, to set-off and
appropriate and apply any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Buyer or any of its Affiliates to or for the credit or the account of the Guarantor,
or any part thereof in such amounts as the Buyer may elect, against and on account of the
obligations and liabilities of the Guarantor to the Buyer hereunder and claims of every nature and
description of the Buyer or any of its Affiliates against the Guarantor, in any currency, whether
arising hereunder, under the Master Repurchase Agreement as the Buyer may elect, whether or not the
Buyer has made any demand for payment and although such obligations, liabilities and claims may be
contingent or unmatured. The Buyer shall notify the Guarantor promptly of any such set-off and the
application made by the Buyer, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of the Buyer and its Affiliates under this
Section are in addition to other rights and remedies (including, without limitation, other rights
of set-off) which the Buyer and its Affiliates may have.

6. No Subrogation. Notwithstanding any payment or payments made by the Guarantor
hereunder or any set-off or application of funds of the Guarantor by the Buyer or any of its
Affiliates, the Guarantor shall not be entitled to be subrogated to any of the rights of the Buyer
against any Seller or any other guarantor or any collateral security or guarantee or right of
offset held by the Buyer for the payment of the Obligations, nor shall the Guarantor seek or be
entitled to seek any contribution or reimbursement from the Sellers or any other guarantor in
respect of payments made by the Guarantor hereunder, until all amounts owing to the Buyer by the
Sellers on account of the Obligations are paid in full and the Master Repurchase Agreement is
terminated. If any amount shall be paid to the Guarantor on account of such subrogation rights at
any time when all of the Obligations shall not have been paid in full, such amount shall be held by
the Guarantor in trust for the Buyer, segregated from other funds of the Guarantor, and shall,
forthwith upon receipt by the Guarantor, be turned over to the Buyer in the exact form received by
the Guarantor (duly indorsed by the Guarantor to the Buyer, if required), to be applied against the
Obligations, whether matured or unmatured, in such order as the Buyer may determine.

7. Amendments, Etc. with Respect to the Obligations. The Guarantor shall remain
obligated hereunder notwithstanding that, without any reservation of rights against the Guarantor
and without notice to or further assent by the Guarantor, any demand for payment of any of the
Obligations made by the Buyer may be rescinded by the Buyer and any of the Obligations continued,
and the Obligations, or the liability of any other party upon or for any part thereof, or any
collateral security or guarantee therefor or right of offset with respect thereto, may, from time
to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Buyer, and the Master Repurchase Agreement and any other
documents executed and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Buyer may deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by the Buyer for the payment of
the Obligations may be sold, exchanged, waived, surrendered or released. The Buyer shall not have
any obligation to protect, secure, perfect or insure any lien at any time held by it as security
for the Obligations or for this Guaranty or any property subject thereto. When making any demand
hereunder against the Guarantor, the Buyer may, but shall be under no obligation to, make a similar
demand on the Sellers or any other guarantor, and any failure by the Buyer to make any such demand
or to collect any payments from any Seller or any such other guarantor or any release of any Seller
or such other guarantor shall not relieve the Guarantor of its obligations or liabilities
hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a
matter of law, of the Buyer against the Guarantor. For the purposes hereof “demand” shall include
the commencement and continuance of any legal proceedings.

8. Waiver of Rights. The Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Obligations, and notice of or proof of reliance by the Buyer
upon this Guaranty or acceptance of this Guaranty; the Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended
or waived, in reliance upon this Guaranty; and all dealings between the Seller and the Guarantor,
on the one hand, and the Buyer, on the other hand, likewise shall be conclusively presumed to have
been had or consummated in reliance upon this Guaranty. The Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to or upon the Sellers
or the Guarantor with respect to the Obligations.

9. Guaranty Absolute and Unconditional. The Guarantor understands and agrees that this
Guaranty shall be construed as a continuing, absolute and unconditional guarantee of the full and
punctual payment and performance by the Sellers of the Obligations and not of their collectibility
only, and is in no way conditioned upon any requirement that the Buyer first attempt to collect any
of the obligations from any Seller, without regard to (a) the validity, regularity or
enforceability of the Master Repurchase Agreement, any of the Obligations or any other collateral
security therefor or guarantee or right of offset with respect thereto at any time or from time to
time held by the Buyer, (b) any defense, set-off or counterclaim (other than a defense of payment
or performance) which may at any time be available to or be asserted by any Seller against the
Buyer, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the
Seller or the Guarantor) which constitutes, or might be construed to constitute, an equitable or
legal discharge of the Sellers from the Obligations, or of the Guarantor from this Guaranty, in
bankruptcy or in any other instance. When pursuing its rights and remedies hereunder against the
Guarantor, the Buyer may, but shall be under no obligation to, pursue such rights and remedies as
it may have against the Sellers or any other Person or any other collateral security or guarantee
for the Obligations or any right of offset with respect thereto, and any failure by the Buyer to
pursue such other rights or remedies or to collect any payments from the Sellers or any such other
Person or to realize upon any such collateral security or guarantee or to exercise any such right
of offset, or any release of any Seller or any such other Person or any such collateral security,
guarantee or right of offset, shall not relieve the Guarantor of any liability hereunder, and shall
not impair or affect the rights and remedies, whether express, implied or available as a matter of
law, of the Buyer against the Guarantor. This Guaranty shall remain in full force and effect and
be binding in accordance with and to the extent of its terms upon the Guarantor and its successors
and assigns thereof, and shall inure to the benefit of the Buyer, and its successors, indorsees,
transferees and assigns, until all the Obligations and the obligations of the Guarantor under this
Guaranty shall have been satisfied by payment in full and the Master Repurchase Agreement shall be
terminated, notwithstanding that from time to time during the term of the Master Repurchase
Agreement, the Sellers may be free from any Obligations.

10. Reinstatement. This Guaranty shall continue to be effective, or be reinstated, as
the case may be, if at any time payment, or any part thereof, of any of the Obligations is
rescinded or must otherwise be restored or returned by the Buyer upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of any Seller or the Guarantor, or upon or as a result
of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for,
any Seller or the Guarantor or any substantial part of its property, or otherwise, all as though
such payments had not been made.

11. Payments. The Guarantor hereby guarantees that payments hereunder will be paid to
the Buyer without set-off or counterclaim in U.S. Dollars in accordance with the wiring
instructions of the Buyer.

12. Notices. Except as provided herein, all notices required or permitted by this
Guaranty shall be in writing (including without limitation by electronic transmission, email or
facsimile) and shall be effective and deemed delivered only when received by the party to which it
is sent; provided, however, that a facsimile transmission shall be deemed to be received when
transmitted so long as the transmitting machine has provided an electronic confirmation (without
error message) of such transmission and notices being sent by first class mail, postage prepaid,
shall be deemed to be received five (5) Business Days following the mailing thereof. Any such
notice shall be sent to a party at the address or facsimile transmission number specified on the
signature page hereto.

13. Severability. Any provision of this Guaranty which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

14. Integration. This Guaranty and the Master Repurchase Agreement and the other
Program Documents represent the agreement of the Guarantor with respect to the subject matter
hereof and thereof and there are no promises or representations by the Buyer relative to the
subject matter hereof or thereof not reflected herein or therein. The Guarantor and the Buyer
desire to enter into this Guaranty in order to amend, restate and replace the Original Guaranty in
its entirety.

15. Amendments in Writing; No Waiver; Cumulative Remedies. (a) None of the terms or
provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the Guarantor and the Buyer, provided that any provision of this
Guaranty may be waived by the Buyer.

(b) The Buyer shall not by any act (except by a written instrument pursuant to Section 15(a)
hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the
terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of
the Buyer, any right, power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. A waiver by the Buyer of
any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or
remedy which the Buyer would otherwise have on any future occasion.

(c) The rights and remedies herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by law.

16. Section Headings. The section headings used in this Guaranty are for convenience
of reference only and are not to affect the construction hereof or be taken into consideration in
the interpretation hereof.

17. Successors and Assigns. This Guaranty shall be binding upon the successors and
permitted assigns of the Guarantor and shall inure to the benefit of the Buyer and its successors
and assigns. This Guaranty may not be assigned by the Guarantor without the express written consent
of the Buyer.

18. Governing Law. THIS GUARANTY 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 (EXCEPT FOR SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

19. SUBMISSION TO JURISDICTION; WAIVERS. THE GUARANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY:

(A) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
GUARANTY AND THE MASTER REPURCHASE AGREEMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN
RESPECT THEREOF, TO THE NON-EXCLUSIVE PERSONAL JURISDICTION OF THE FEDERAL COURTS OF THE UNITED
STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;

(B) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE
EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY
SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN
INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

(C) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING
A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE
PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH THE
BUYER SHALL HAVE BEEN NOTIFIED; AND

(D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

20. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS GUARANTY, THE MASTER REPURCHASE AGREEMENT OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

21. Other Liens. Notwithstanding anything to the contrary contained herein, liens
previously granted by the Guarantor in favor of the Buyer or future liens that are granted by the
Guarantor in favor of the Buyer will not constitute a breach of this Guaranty.

22. Agents. The Buyer may employ agents and attorneys-in-fact in connection herewith
and shall not be responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it in good faith.

23. Counterparts; Facsimile. This Guaranty may be executed in any number of
counterparts, all of which when taken together shall constitute one and the same instrument and any
of the parties hereto may execute this Guaranty by signing any such counterpart. An executed
signature page delivered by facsimile shall have the same effect as an original signature page
delivered by mail.

[Signature Pages to Follow]

1

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

	 
	 

	NEW CENTURY FINANCIAL CORPORATION (f/k/a NEW CENTURY REIT, INC.), as Guarantor

By: /s/ Robert K. Cole

Name: Robert K. Cole

Title: Chairman of the Board

By: /s/ Stergios Theologides

Name: Stergios Theologides

Title: EVP

Address for Notices:

	NEW CENTURY FINANCIAL CORPORATION

(f/k/a New Century REIT, Inc.)

18400 Von Karman

Irvine, California 92612

Attention: Kevin Cloyd

Telephone: (949) 862-7941

Facsimile: (949) 440-7033

with a copy to :

	(At the same address as above)

Attention: Legal Department

Telephone: (949) 225-7808

Facsimile: (949) 440-7033

BANK OF AMERICA, N.A.

By: /s/ Sean A. Tobias

Name: Sean A. Tobias

Title: Principal

Address for Notices:

BANK OF AMERICA, N.A.

TX1-492-66-01

901 Main Street, 66th Floor

Dallas, Texas 75202-3714

Attention: Sean A. Tobias

Telephone: (214) 209-1584

Facsimile: (214) 530-2657

With a copy to:

Attention: Christopher G. Young

Telephone: 704-386-3614

Facsimile: 704-388-8403

2

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