Document:

EX-10.1

EXHIBIT 10.1

FIFTH AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

This is a FIFTH AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT, dated as of November 10,
2006, among IXIS REAL ESTATE CAPITAL INC., a New York corporation (the “Buyer”) and NEW
CENTURY MORTGAGE CORPORATION, a California corporation (“NCMC”), NC ASSET HOLDING, L.P., a
Delaware limited partnership (“NCAH”)(as successor in interest to NC Residential II
Corporation), NC CAPITAL CORPORATION, a California corporation (“NCCC”), NEW CENTURY CREDIT
CORPORATION, a California corporation (“New Century”) and HOME123 CORPORATION, a California
corporation (“Home123”, and together with NCMC, NCAH, NCCC and New Century, the
“Seller”).

WHEREAS, the Seller and the Buyer are parties to that certain Fourth Amended and Restated
Master Repurchase Agreement, dated as of October 11, 2005, by and between the Seller and the Buyer
(as amended from time to time, the “Existing Repurchase Agreement,” and as amended by this
Fifth Amended and Restated Master Repurchase Agreement, as may be amended from time to time, the
“Repurchase Agreement”).

WHEREAS the Seller has requested the Buyer to agree to amend certain provisions of the Fourth
Amended and Restated Repurchase Agreement as set forth in this Fifth Amended and Restated Master
Repurchase Agreement. The Buyer is willing to agree to such amendments, but only on the terms and
subject to the conditions set forth in this Fifth Amended and Restated Master Repurchase Agreement.

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Seller and the
Buyer hereby agree as follows:

	1.	 	APPLICABILITY

From time to time the parties hereto may enter into transactions (the “Committed
Transactions”) in which the Seller agrees to transfer to the Buyer Mortgage Loans
against the transfer of funds by the Buyer, with a simultaneous agreement by the Buyer to
transfer to the Seller such Mortgage Loans at a date certain not later than 364 days after
the date of transfer, against the transfer of funds by the Seller. Additionally, from time
to time, the Buyer is prepared to consider entering into additional transactions (the
“Uncommitted Transactions”) in which the Seller agrees to transfer to the Buyer
Mortgage Loans against the transfer of funds by the Buyer, with a simultaneous agreement by
the Buyer to transfer to the Seller such Mortgage Loans on demand by the Buyer, against the
transfer of funds by the Seller. Each such Committed Transaction and Uncommitted
Transaction shall be referred to herein as a “Transaction” and shall be governed by
this Agreement, unless otherwise agreed in writing.

	2.	 	DEFINITIONS

As used herein, the following terms shall have the following meanings (all terms defined in
this Section 2 or in other provisions of this Agreement in the singular to have the same
meanings when used in the plural and vice versa). Terms otherwise not
defined herein shall have the meanings assigned thereto in the Custodial and Disbursement
Agreement.

“30 Plus Mortgage Loan” shall mean any Mortgage Loan that has been delinquent in its
scheduled monthly payments of principal and/or interest for more than 29 calendar days but
less than 60 calendar days as of any date of determination.

“40/30 Mortgage Loan” shall mean a Mortgage Loan with a balloon payment feature that
requires principal and interest payments sufficient to amortize the Mortgage Loan fully by
the stated maturity date, over an original term of not more than 40 years from commencement
of amortization.

“50/30 Mortgage Loan” shall mean a Mortgage Loan with a balloon payment feature that
requires principal and interest payments sufficient to amortize the Mortgage Loan fully by
the stated maturity date, over an original term of not more than 50 years from commencement
of amortization.

“Account Agreement” shall mean that certain Amended and Restated Account Agreement,
dated as of November 10, 2006, by and among NCCC, NCMC, NCAH, New Century, Home123, the
Buyer and the Bank, as the same shall be modified and supplemented and in effect from time
to time.

“Act of Insolvency” shall mean, with respect to any Person or any Material
Subsidiary, (i) the filing of a petition, commencing, or authorizing the commencement of any
case or proceeding under any bankruptcy, insolvency, reorganization, liquidation,
dissolution or similar law relating to the protection of creditors, or suffering any such
petition or proceeding to be commenced by another which is consented to, not timely
contested or results in entry of an order for relief which is not discharged within
forty-five (45) days; (ii) the seeking or consenting to the appointment of a receiver,
trustee, custodian or similar official for such Person or any Material Subsidiary or any
substantial part of the property of such Person or any Material Subsidiary; (iii) the
appointment of a receiver, conservator, or manager for such Person or any Material
Subsidiary by any governmental agency or authority having the jurisdiction to do so; (iv)
the making or offering by such Person or any Material Subsidiary of a composition with its
creditors or a general assignment for the benefit of creditors; (v) the admission by such
Person or any Material Subsidiary of its inability to pay its debts or discharge its
obligations as they become due or mature; or (vi) that any governmental authority or agency
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 such Person or any Material
Subsidiary, or shall have taken any action to displace the executive officers of such Person
or any Material Subsidiary or the ultimate parent of such Person or any Material Subsidiary
to curtail its authority in the conduct of the business of such Person or any Material
Subsidiary.

“Additional Purchased Assets” shall mean Mortgage Loans or cash provided by the
Seller to the Buyer or its designee pursuant to Section 4.

“Affiliate” shall mean with respect to any Person, any “affiliate” of such Person,
as such term is defined in the Bankruptcy Code.

“Agreement” shall mean this Fifth Amended and Restated Master Repurchase Agreement,
as the same may be further amended, supplemented or otherwise modified in accordance with
the terms hereof.

“ALTA” shall mean the American Land Title Association.

“Appraised Value” shall mean (i) the value set forth in an appraisal made in
connection with the origination of the related Mortgage Loan as the value of the Mortgaged
Property, or (ii) with respect to any Second Lien Mortgage Loan, the value described
pursuant to clause (i) and if no appraisal was made, then the value set forth in the AVM
supplied.

“Asset Schedule and Exception Report” shall have the meaning assigned thereto in the
Custodial and Disbursement Agreement.

“Asset Value” shall have the meaning given thereto in the Letter Agreement.

“Assignment of Mortgage” shall mean, with respect to any Mortgage, an assignment of
the Mortgage in blank, notice of transfer or equivalent instrument in recordable form,
sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is
located to reflect the assignment of the Mortgage to the Buyer.

“AVM” shall mean, solely in connection with a Second Lien Mortgage Loan, an
automated valuation model, conducted in accordance with the Underwriting Guidelines provided
by the vendors set forth on Schedule 3 and in the categories as set forth on Schedule 3, as
may be amended from time to time to add vendors approved by the Buyer in its sole
discretion. The use of AVM’s in lieu of appraisals must be strictly in accordance with
Underwriting Guidelines approved by the Buyer in its sole discretion.

“AVM Mortgage Loan” shall mean a Second Lien Mortgage Loan subject to an AVM
valuation.

“Bank” shall mean Union Bank of California, N.A., a national banking association,
and its successors in interest, or such other depository institution as may be acceptable to
the Buyer in its sole discretion, and their respective successors in interest.

“Bankruptcy Code” shall mean the United States Bankruptcy Code of 1978, as amended
from time to time.

“Business Day” shall mean any day other than (i) a Saturday or Sunday or (ii) a day
on which banks in the State of New York (or state in which any of the Custodian, the
Disbursement Agent, the Seller or the Buyer is located) are authorized or obligated by law
or executive order to be closed.

“Buyer” shall mean IXIS Real Estate Capital Inc., a New York corporation, and its
successors in interest and assigns.

“C Credit Mortgage Loan” shall mean each Mortgage Loan originated in accordance with
the Underwriting Guidelines criteria for “C” credit mortgage loans.

“C Minus Credit Mortgage Loans” shall mean each Mortgage Loan originated in
accordance with the Underwriting Guidelines criteria for “C-” credit mortgage loans.

“Capital Lease Obligations” shall mean, for any Person, all obligations of such
Person to pay rent or other amounts under a lease of (or other agreement conveying the right
to use) Property to the extent such obligations are required to be classified and accounted
for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of
this Agreement, the amount of such obligations shall be the capitalized amount thereof,
determined in accordance with GAAP.

“Cash” shall mean all cash and Cash Equivalents, as shown on the balance sheet of
the Seller prepared in accordance with GAAP.

“Cash Equivalents” shall mean (a) securities with maturities of 90 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 90 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 seven 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 and Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc. (“S&P”) or P-1 or the
equivalent thereof by Moody’s Investors Service, Inc. (“Moody’s”) and in either case
maturing within 90 days after the date of acquisition, (e) securities with maturities of 90
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 90 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 of Control” shall mean the occurrence, after the Effective Date, of any of
the following circumstances: (a) the Guarantor not owning, directly or indirectly, all of
the issued and outstanding capital stock of NCMC; or (b) any Person, or two or more Persons
acting in concert, other than the Management Shareholders, acquiring beneficial ownership
(within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the
Guarantor (or other securities convertible into such securities) representing 35% or more of
the combined voting power of all securities of the Guarantor entitled to vote in the
election of directors; or (c) any Person, or two or more Persons acting in concert, other
than the Management Shareholders, acquiring by contract or otherwise, or entering into a
contract or arrangement which upon consummation will result in its or their acquisition of
and, control over securities of the Guarantor (or other securities convertible into such
securities) representing 35% or more of the combined voting power of all securities of the
Guarantor entitled to vote in the election of directors.

“Class” shall mean with respect to a Purchased Asset, the designation of such
Purchased Asset as one or more of the following: (i) a Mortgage Loan, (ii) a Wet-Ink
Mortgage Loan, (iii) a Second Lien Mortgage Loan, (iv) a Jumbo(500) Mortgage Loan, (v) a
Jumbo(750) Mortgage Loan, (vi) a Super Jumbo Mortgage Loan, (vii) a C Credit Mortgage Loan,
(viii) a C Minus Credit Mortgage Loan, (ix) a Non-owner Occupied Mortgage Loan, (x) a
Manufactured Home Mortgage Loan, (xi) a Condominium Mortgage Loan, (xii) a PUD Mortgage
Loan, (xiii) a FICO Loan, (xiv) an Interest-Only Loan, (xv) a 40/30 Mortgage Loan, (xvi) a
50/30 Mortgage Loan, (xvii) an AVM Mortgage Loan, (xviii) a Jumbo Mortgage Loan and/or (xix)
a 30 Plus Mortgage Loan.

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

“Collection Account” shall mean the account established by the Bank subject to an
Account Agreement, into which all Income shall be deposited.

“Combined Loan-to-Value Ratio or CLTV” shall mean with respect to any Second Lien
Mortgage Loan, the sum of the original principal balance of such Mortgage Loan and the
outstanding principal balance of any related first lien as of the date of origination of the
Mortgage Loan, divided by the lesser of the Appraised Value of the Mortgage Property as of
the Origination Date or the purchase price of the Mortgaged Property if the related
Mortgaged Property was purchased within twelve (12) months prior to the Origination Date.

“Committed Transaction” as defined in the recitals hereto.

“Commonly Controlled Entity” shall mean an entity, whether or not incorporated,
which is under common control with the Seller within the meaning of Section 4001 of ERISA or
is part of a group which includes the Seller and which is treated as a single employer under
Section 414 of the Code.

“Condominium Mortgage Loan” shall mean an Eligible Asset secured by a Residential
Dwelling which is a unit in a condominium project.

“Confirmation” shall have the meaning specified in Section 3(c).

“Custodial and Disbursement Agreement” shall mean that certain Amended and Restated
Custodial and Disbursement Agreement, dated as of November 10, 2006, by and among the Buyer,
NCCC, NCAH, NCMC, New Century, Home123, the Disbursement Agent and the Custodian, as the
same shall be modified and supplemented and in effect from time to time.

“Custodial Identification Certificate” shall have the meaning assigned thereto in
the Custodial and Disbursement Agreement.

“Custodian” shall mean Deutsche Bank National Trust Company, a national banking
association, and its successors in interest, as the custodian under the Custodial and
Disbursement Agreement, and any successor Custodian under the Custodial and Disbursement
Agreement.

“Default” shall mean an Event of Default or an event that with notice or lapse of
time or both would become an Event of Default.

“Disbursement Agent” shall mean Deutsche Bank National Trust Company, a national
banking association, and its successors in interest, as disbursement agent under the
Custodial and Disbursement Agreement, and any successor Disbursement Agent under the
Custodial and Disbursement Agreement.

“Dollars” and “$” shall mean lawful money of the United States of America.

“Due Diligence Review” shall mean the performance by the Buyer of any or all of the
reviews permitted under Section 27 with respect to any or all of the Mortgage Loans, as
desired by the Buyer from time to time.

“Effective Date” shall mean the date upon which the conditions precedent set forth
in Section 3(a) shall have been satisfied.

“Electronic Agent” shall mean MERSCORP, INC., and its successors in interest.

“Electronic Tracking Agreement” shall mean the Electronic Tracking Agreement, in a
form substantially similar to the form set forth in Annex 19 to the Custodial and
Disbursement Agreement, to be entered into among the Buyer, the Seller, the Electronic Agent
and MERS, if any, as the same shall be amended, supplemented or otherwise modified from time
to time; provided that if no Mortgage Loans are or will be MERS Designated Mortgage Loans,
all references herein to the Electronic Tracking Agreement shall be disregarded.

“Electronic Transmission” shall mean the delivery of information in an electronic
format acceptable to the applicable recipient thereof. An Electronic Transmission shall be
considered written notice for all purposes hereof (except when a request or notice by its
terms requires execution). Any document that requires signature that is delivered by
Electronic Transmission via email that includes the sender’s name shall satisfy such
signature requirement.

“Eligible Asset” shall mean a Mortgage Loan, including a Wet-Ink Mortgage Loan, (i)
as to which the representations and warranties in Schedule 1 attached hereto are
true and correct, (ii) which is underwritten strictly in accordance with the Underwriting
Guidelines of the Seller, and (iii) which is secured by a Residential Dwelling.

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time.

“ERISA Affiliate” shall mean any corporation or trade or business that is a member
of any group of organizations (i) described in Section 414(b) or (c) of the Code of which
the Seller is a member and (ii) solely for purposes of potential liability under Section
302(c)(11) of ERISA and Section 412(c)(11) of the Code and the lien created under Section
302(f) of ERISA and Section 412(n) of the Code, described in Section 414(m) or (o) of the
Code of which the Seller is a member.

“Eurodollar Rate” shall mean, with respect to each day a Transaction is outstanding,
the rate per annum equal to the rate appearing at page 5 of the Telerate Screen as one-month
LIBOR at or about 9:00 a.m., New York time, on such date (and if such date is not a Business
Day, the Eurodollar Rate in effect on the Business Day immediately preceding such date), and
if such rate shall not be so quoted, the average rate per annum at which three mutually
acceptable banks are offered Dollar deposits at or about 9:00 a.m., New York City time, on
such date by prime banks in the interbank eurodollar market where the eurodollar and foreign
currency exchange operations in respect of its Transactions are then being conducted for
delivery on such day for a period of thirty (30) days and in an amount comparable to the
amount of the Transactions to be outstanding on such day. The Eurodollar Rate shall be
reset by the Buyer as described above and the Buyer’s determination of Eurodollar Rate shall
be conclusive upon the parties absent manifest error on the part of the Buyer

“Event of Default” has the meaning specified in Section 12.

“Excess Margin” has the meaning specified in Section 3(o).

“Existing Financing Facility” has the meaning specified in Section 10(t).

“Fannie Mae” shall mean the Federal National Mortgage Association, and its
successors in interest.

“FICO Loan” shall mean a Mortgage Loan with a FICO score less than 550 and greater
than or equal to 500.

“First Lien Mortgage Loan” shall mean an Eligible Asset secured by a first lien on
the related Mortgaged Property.

“Foreclosed Loan” shall mean a loan the property securing which has been foreclosed
upon by the Seller.

“Freddie Mac” shall mean the Federal Home Loan Mortgage Corporation, and its
successors in interest.

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

“Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government and any court or
arbitrator having jurisdiction over NCCC, NCAH, NCMC, New Century, Home123, the Guarantor,
any of their respective Subsidiaries or any of their properties.

“Guarantee” shall mean, 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 or otherwise protecting the holder of
such Indebtedness against loss (whether by virtue of partnership arrangements, by agreement
to keep-well another Person, to purchase assets, goods, securities or services, or to agree
to a take-or-pay arrangement or otherwise); provided that the term “Guarantee” shall not
include (i) endorsements for collection or deposit in the ordinary course of business, or
(ii) obligations to make servicing advances for delinquent taxes and insurance, or other
obligations in respect of a Mortgaged Property, or other principal and interest advances
made in the ordinary course of servicing the Mortgage Loans. The amount of any Guarantee of
a Person shall be deemed to be an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Guarantee is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof as determined
by such Person in good faith. The terms “Guarantee” and “Guaranteed” used
as verbs shall have correlative meanings.

“Guarantor” shall mean New Century Financial Corporation, Inc., a Maryland
corporation.

“Guaranty” shall mean the Amended and Restated Guarantee, dated as of November 10,
2006, made by the Guarantor in favor of the Buyer.

“Home123” shall mean Home123 Corporation, a California corporation, and its
successors in interest.

“Income” shall mean, with respect to any Mortgage Loan at any time, all collections
and proceeds on or in respect of the Mortgage Loans, including, without limitation, any
principal thereof then payable and all interest or other distributions payable thereon less
any related servicing fee(s) charged by the Servicer.

“Indebtedness” shall mean, for any Person: (a) obligations created, issued or
incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt
securities or the sale of Property to another Person subject to an understanding or
agreement, contingent or otherwise, to repurchase such Property from such Person);
(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 within 90 days after the date the respective goods are delivered or the
respective services are 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 or accepted by banks and other financial
institutions for account of such Person; (e) obligations of such Person under repurchase
agreements, sale/buy-back agreements or like arrangements; (f) Indebtedness of others
Guaranteed by such Person; (g) all obligations of such Person incurred in connection with
the acquisition or carrying of fixed assets by such Person; and (h) Indebtedness of general
partnerships of which such Person is a general partner; and (i) Capital Lease Obligations of
such Person; provided, however, that for any period, the aggregate Indebtedness of the
Guarantor during such period maintained in accordance with GAAP shall be calculated less the
aggregate amount of any such Indebtedness that is reflected on the balance sheet of the
Guarantor 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 Guarantor. In the event that any Indebtedness would be excluded from
the calculation of Indebtedness but for the existence of recourse, the Guarantor 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 Guarantor in good faith. Any calculations of Indebtedness
provided pursuant to this Agreement shall also separately set forth any Indebtedness of the
Guarantor excluded from such calculation pursuant to the proviso in the definition thereof.

“Interest-Only Loan” shall mean any Mortgage Loan as to which scheduled payments
only include interest for an initial period of not more than 10 years, after which such
Mortgage Loan will fully amortize to maturity.

“Interest Rate Protection Agreement” shall mean, with respect to any or all of the
Mortgage Loans, any short sale of US Treasury securities, or futures contract, or options
related contract, or interest rate swap, cap or collar agreement or similar arrangement
providing for protection against fluctuations in interest rates or the exchange of nominal
interest obligations, either generally or under specific contingencies and acceptable to the
Buyer.

“Interim Funder” shall mean, with respect to each MERS Designated Mortgage Loan, the
Person named on the MERS® System as the interim funder pursuant to the MERS Procedures
Manual.

“Investor” shall mean, with respect to each MERS Designated Mortgage Loan, the
Person named on the MERS® System as the investor pursuant to the MERS Procedures Manual.

“Investment” shall mean with respect to any Person, any direct or indirect purchase
or other acquisition by that Person of a beneficial interest in stock or other securities of
any other Person, or any direct or indirect loan, advance (other than advances to employees
for moving and travel expenses, drawing accounts and similar expenditures in the ordinary
course of business) or capital contribution by that Person to any other Person, including
all Indebtedness and accounts receivable from that other Person which are not current assets
or did not arise from sales to that other Person in the ordinary course of business.

“Jumbo Mortgage Loans” shall mean, collectively, Jumbo(500) Mortgage Loans,
Jumbo(750) Mortgage Loans and Super Jumbo Mortgage Loans.

“Jumbo(500) Mortgage Loans” shall mean each Mortgage Loan with a principal balance
as of origination of more than $500,000 and less than or equal to $750,000.

“Jumbo(750) Mortgage Loans” shall mean each Mortgage Loan with a principal balance
as of origination of more than $750,000.

“Late Payment Fee” has the meaning specified in Section 5(b).

“Letter Agreement” shall mean the Second Amended Pricing Side Letter, dated as of
November 10, 2006, by and among the Buyer, NCCC, NCAH, NCMC, New Century and Home123 and
acknowledged by the Guarantor.

“Leverage Ratio” shall mean on any date of determination, the ratio of (a) Total
Liabilities to (b) Tangible Net Worth.

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

“Loan-to-Value Ratio” or “LTV” means with respect to any Mortgage Loan, the
ratio of the original outstanding principal amount of such Mortgage Loan at the time of
origination to the lesser of (a) the Appraised Value of the related Mortgaged Property at
origination of such Mortgage Loan and (b) if the related Mortgaged Property was purchased
within twelve (12) months of the origination of such Mortgage Loan, the purchase price of
the related Mortgaged Property.

“Management Shareholders” shall mean Robert K. Cole, Brad A. Morrice, and Edward F.
Gotschall.

“Manufactured Home Mortgage Loan” shall mean an Eligible Asset secured by a
Residential Dwelling which is a manufactured home.

“Margin Base” shall mean the aggregate Asset Value of all Purchased Assets which are
Eligible Assets.

“Margin Deficit” has the meaning specified in Section 4.

“Market Value” shall mean, as of any date in respect of any Mortgage Loan, the price
at which such Mortgage Loan could readily be sold as determined in the Buyer’s sole
discretion using its reasonable business judgment, which price may be determined to be zero.
The Buyer’s determination of Market Value shall be conclusive upon the parties absent
manifest error on the part of the Buyer.

“Material Adverse Effect” shall mean a material adverse effect on (a) the Property,
business, operations, financial condition or prospects of NCCC, NCAH, NCMC, New Century,
Home123 or the Guarantor, (b) the ability of NCCC, NCAH, NCMC, New Century or Home123 to
perform its obligations under any of the Repurchase Documents to which it is a party,
(c) the validity or enforceability of any of the Repurchase Documents, (d) the rights and
remedies of the Buyer under any of the Repurchase Documents, (e) the timely payment of any
amounts payable under the Repurchase Documents, (f) the Asset Value of the Purchased Assets
or (g) the ability of the Guarantor to perform its obligations under the Guaranty.

“Material Subsidiary” shall mean a “significant subsidiary” as defined in Rule 1-02
of Regulation S-X (17 CFR §210.1-01, et seq), of the Seller or any of its subsidiaries.

“Maximum Amount” shall mean the sum of the Maximum Committed Amount and the Maximum
Uncommitted Amount.

“Maximum Committed Amount” shall mean $1,000,000,000.

“Maximum Uncommitted Amount” shall mean $0.

“MERS” shall mean Mortgage Electronic Registration Systems, Inc., and its successors
in interest.

“MERS Designated Mortgage Loan” shall mean a Mortgage Loan for which the Seller has
designated or will designate MERS as, and has taken or will take such action as is necessary
to cause MERS to be, the mortgagee of record, as nominee for the Seller, in accordance with
the MERS Procedures Manual.

“MERS Procedures Manual” shall mean the MERS Procedures Manual attached as Exhibit B
to the Electronic Tracking Agreement, as it may be amended, supplemented or otherwise
modified from time to time.

“MERS Report” shall mean the schedule listing MERS Designated Mortgage Loans and
other information prepared by the Electronic Agent pursuant to the Electronic Tracking
Agreement.

“MERS® System” shall mean the Electronic Agent’s mortgage electronic registry
system, as more particularly described in the MERS Procedures Manual.

“Minimum Pricing Amount” has the meaning specified in the Letter Agreement.

“Mortgage” shall mean the mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a first lien or second lien on a fee simple Residential
Dwelling securing the Mortgage Note.

“Mortgage File” shall have the meaning assigned thereto in the Custodial and
Disbursement Agreement.

“Mortgage Loan” shall mean a mortgage loan originated in accordance with the
Underwriting Guidelines which the Custodian has been instructed to hold for the Buyer
pursuant to the Custodial and Disbursement Agreement including any Wet-Ink Mortgage Loan
listed on a Transaction Request, and which Mortgage Loan includes, without limitation, (i) a
Mortgage Note and the related Mortgage, and (ii) all right, title and interest of the Seller
in and to the Mortgaged Property covered by such Mortgage.

“Mortgage Note” shall mean the original executed promissory note or other evidence
of the indebtedness of a Mortgagor with respect to a Mortgage Loan.

“Mortgage-backed Security” shall mean a security (including, without limitation, a
participation certificate) that is an interest in a pool of Mortgage Loans or is secured by
such an interest.

“Mortgaged Property” shall mean a fee simple interest in the real property
(including all improvements, buildings, fixtures, building equipment and personal property
thereon and all additions, alterations and replacements made at any time with respect to the
foregoing) and all other collateral securing repayment of the debt evidenced by a Mortgage
Note.

“Mortgagee” shall mean the record holder of a Mortgage Note secured by a Mortgage.

“Mortgagor” shall mean the obligor or obligors on a Mortgage Note, including any
person who has assumed or guaranteed the obligations of the obligor thereunder.

“Multiemployer Plan” shall mean a multiemployer plan defined as such in Section
3(37) of ERISA to which contributions have been or are required to be made by the Seller or
any ERISA Affiliate and that is covered by Title IV of ERISA.

“NCAH” shall mean NC Asset Holding, L.P., a Delaware limited partnership, and its
successors in interest.

“NCCC” shall mean NC Capital Corporation, a California corporation, and its
successors in interest.

“NCMC” shall mean New Century Mortgage Corporation, a California corporation, and
its successors in interest.

“Net Income” shall mean, with respect to any Person for any period, the net income
of such Person for such period as determined in accordance with GAAP.

“Net Worth” shall mean with respect to any Person, on any date of determination, the
net worth of such Person as of such date, determined in accordance with GAAP.

“New Century” shall mean New Century Credit Corporation, a California corporation,
and its successors in interest.

“Non-owner Occupied Mortgage Loans” shall mean each Mortgage Loan with respect to
which the improvements on the Mortgaged Property are not occupied by the owner of such
Mortgaged Property.

“Origination Date” shall mean the date a Mortgage Loan is funded by any originator
and the proceeds are disbursed to a borrower under such Mortgage Loan.

“Payment Calculation Date” shall mean the tenth (10th) day of each month.

“Payment Date” shall mean two (2) Business Days after the Payment Calculation Date.

“PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity succeeding
to any or all of its functions under ERISA.

“Periodic Advance Repurchase Payment” has the meaning specified in Section 5(b).

“Person” shall mean any individual, corporation, company, voluntary association,
partnership, joint venture, limited liability company, trust, unincorporated association or
government (or any agency, instrumentality or political subdivision thereof).

“Plan” shall mean an employee benefit or other plan established or maintained by any
the Seller or any ERISA Affiliate and covered by Title IV of ERISA, other than a
Multiemployer Plan.

“Post-Default Rate” shall mean, in respect of any day a Transaction is outstanding
or any other amount under this Agreement or any other Repurchase Document that is not paid
when due to the Buyer at the stated Repurchase Date or otherwise when due (a
“Post-Default Day”), a rate per annum on a 360 day per year basis during the period
from and including the due date to but excluding the date on which such amount is paid in
full equal to 4% per annum plus the Eurodollar Rate on such Post-Default Day.

“Price Differential” means, with respect to any Transaction hereunder as of any
date, the aggregate amount obtained by daily application of the Pricing Rate for such
Transaction to the Purchase Price for such Transaction on a 360 day per year basis for the
actual number of days during the period commencing on (and including) the Purchase Date for
such Transaction and ending on (but excluding) the Repurchase Date (reduced by any amount of
such Price Differential previously paid by the Seller to the Buyer with respect to such
Transaction).

“Pricing Rate” shall mean a rate per annum equal to the sum of (a) the Eurodollar
Rate plus (b) the Pricing Spread.

“Pricing Spread” has the meaning specified in the Letter Agreement.

“Prime Rate” shall mean the prime rate announced to be in effect from time to time,
as published as the average rate in The Wall Street Journal.

“Property” shall mean any right or interest in or to property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible.

“PUD Mortgage Loan” shall mean an Eligible Asset secured by a Residential Dwelling
which is an attached single family dwelling in a planned unit development.

“Purchase Agreement” shall mean any purchase agreement by and between NCCC, NCAH,
NCMC, New Century or Home 123 and any third party, including without limitation, any
Affiliate of NCCC, NCAH, NCMC, New Century or Home123, pursuant to which NCCC, NCAH, NCMC,
New Century or Home123 has purchased assets subsequently sold to the Buyer hereunder.

“Purchase Date” shall mean the date on which Purchased Assets are transferred by the
Seller to the Buyer or its designee (including the Custodian).

	 	 	 	“Purchase Percentage” has the meaning specified in the Letter Agreement.

“Purchase Price” shall mean on each Purchase Date, the price at which Purchased
Assets are transferred by the Seller to the Buyer or its designee (including the Custodian)
which shall equal the Asset Value for such Purchased Assets on the Purchase Date.

“Purchased Assets” shall mean the Mortgage Loans sold by the Seller to the Buyer in
a Transaction, and any Additional Purchased Assets.

“Purchased Items” has the meaning specified in Section 7.

“Regulations T, U and X” shall mean Regulations T, U and X of the Board of Governors
of the Federal Reserve System (or any successor), as the same may be modified and
supplemented and in effect from time to time.

“REIT” shall mean a real estate investment trust, as defined in Section 856(a) of
the Code.

“REO Property” shall mean real property acquired by the Seller, including a
Mortgaged Property acquired through foreclosure of a Mortgage Loan or by deed in lieu of
such foreclosure.

“Reportable Event” shall mean any of the events set forth in Section 4043(b) of
ERISA or a successor provision thereof, other than those events as to which the thirty day
notice period is waived under subsections .13, .14, .16, .18, .19 or .20 of PBGC Reg. §
2615 or one or more successor provisions thereof.

“Repurchase Date” shall mean the date on which the Seller is to repurchase the
Purchased Assets from the Buyer as specified in the related Confirmation, including any date
determined by application of the provisions of Sections 3 or 13; which date shall be
specified as “open” unless otherwise requested by the Seller and agreed by the Buyer;
provided that in no event shall the Repurchase Date be in excess of 364 days after the
Purchase Date. If the Transaction is “open”, the Repurchase Date shall be one (1) Business
Day after the date upon which either the Buyer (in its sole discretion) or the Seller (in
its sole discretion) provides to the other written notice of its intention to sell or
repurchase, as applicable, the applicable Mortgage Loans; provided that the Repurchase Date
shall not, in any event, exceed 364 days from the date hereof.

“Repurchase Documents” shall mean this Agreement, the Custodial and Disbursement
Agreement, the Guaranty, the Electronic Tracking Agreement, the Account Agreement and all
other documents or agreements executed in connection therewith.

“Repurchase Obligations” shall have the meaning specified in Section 7(b).

“Repurchase Price” means the price at which Purchased Assets are to be transferred
from the Buyer or its designee (including the Custodian) to the 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, including any amounts paid pursuant to Requests for Additional Transactions
for Excess Margin under Section 3(o), decreased by all cash, Income and Periodic Advance
Repurchase Payments (including Late Payment Fees, if any) actually received by the Buyer
pursuant to Sections 5(a) or 5(b), respectively.

“Requirement of Law” shall mean as to any Person, the certificate of incorporation
and by-laws or other organizational or governing documents of such Person, and any law,
treaty, rule or regulation or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

“Residential Dwelling” shall mean any one of the following: (i) a detached single
family dwelling, (ii) a two-to-four family dwelling, (iii) a unit in a condominium project,
(iv) a detached single family dwelling in a planned unit development or (v) manufactured
housing units. Mortgaged Properties that consist of the following property types are not
Residential Dwellings: (a) co-operative units, (b) log homes, (c) earthen homes,
(d) underground homes, and (e)  any dwelling situated on more than ten acres of property.

“Responsible Officer” shall mean, as to any Person, the chief executive officer, the
president, the chief financial officer, the treasurer, the chief operating officer or an
executive vice-president of such Person.

“SEC” shall mean the Securities and Exchange Commission.

“Second Lien Mortgage Loans” shall mean an Eligible Asset secured by a lien on the
Mortgaged Property, subject to one prior lien on such Mortgaged Property.

“Security Agreement” shall mean with respect to any Mortgage Loan, any contract,
instrument or other document related to security for repayment thereof (other than the
related Mortgage and Mortgage Note), executed by the Mortgagor and/or others in connection
with such Mortgage Loan, including without limitation, any security agreement, guaranty,
title insurance policy, hazard insurance policy, chattel mortgage, letter of credit or
certificate of deposit or other pledged accounts, and any other documents and records
relating to any of the foregoing.

“Seller” shall mean NCCC, NCAH, NCMC, New Century and Home123.

“Seller Asset Schedule” shall have the meaning assigned thereto in the Custodial and
Disbursement Agreement.

“Seller-Related Obligations” shall mean any obligations, representations, warranties
and covenants of NCCC, NCAH, NCMC, New Century or Home123 hereunder and under any other
arrangement between NCCC, NCAH, NCMC, New Century or Home123 or a Subsidiary of NCCC, NCAH,
NCMC, New Century or Home123 on the one hand and the Buyer or an Affiliate of the Buyer on
the other hand.

“Servicer” shall have the meaning specified in Section 24.

“Servicer Account” shall mean any account established by the Servicer in connection
with the servicing of the Mortgage Loans.

“Servicing Agreement” has the meaning specified in Section 24.

“Servicing Contract” shall mean a contract or agreement purchased by NCCC, NCAH,
NCMC, New Century or Home123 or entered into by NCCC, NCAH, NCMC, New Century or Home123 for
its own account (and not as nominee or subservicer), whether now existing or hereafter
purchased or entered into, pursuant to which NCCC, NCAH, NCMC, New Century or Home123
services Mortgage Loans or Mortgage Loan pools for Persons other than itself or the other
Seller.

“Servicing File” means with respect to each Mortgage Loan, the file retained by the
Seller consisting of originals of all documents in the Mortgage File which are not delivered
to a Custodian and copies of all documents in the Mortgage File set forth in Section 2 of
the Custodial and Disbursement Agreement.

“Servicing Records” has the meaning specified in Section 24.

“Settlement Agent” shall mean, with respect to any Transaction, the entity, which
may be a title company, escrow company or attorney in accordance with local law and practice
in the jurisdiction where the related Wet-Ink Mortgage Loan is being originated, which funds
such Mortgage Loan with amounts wired pursuant to the terms of an Existing Financing
Facility.

“Sub-Limit Percentage” shall mean the aggregate Asset Value multiplied by a
percentage equal to the percentage of all outstanding Transactions which are Committed
Transactions or Uncommitted Transactions, as applicable.

“Subordinated Debt” shall mean any Indebtedness of NCCC, NCAH, NCMC, New Century or
Home123, now existing or hereafter created, incurred or arising, which is subordinated in
right of payment to the payment of all obligations hereunder in a manner and to an extent
that the Buyer has approved in writing prior to the creation of such Indebtedness.

“Subsidiary” shall mean, with respect to any Person, any corporation, partnership,
limited liability company 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, limited liability company 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.

“Super Jumbo Mortgage Loans” shall mean each Mortgage Loan with a principal balance
as of origination of more than $1,000,000 but less than $1,500,000.

“Tangible Net Worth ” shall mean, with respect to any Person, as of any
date of determination, the consolidated net worth of such Person and its subsidiaries, less
the consolidated net book value of all assets of such Person and its subsidiaries (to the
extent reflected as an asset on the balance sheet of such Person or any subsidiary of such
Person at such date) which will be treated as intangibles under GAAP, including, without
limitation, such items as deferred financing expenses, net leasehold improvements, goodwill,
trademarks, trade names, service marks, copyrights, patents, licenses and unamortized debt
discount and expense; provided that residual securities owned by such Person shall not be
treated as intangibles for purposes of this definition.

“Term Purchased Asset” shall mean any Purchased Asset for which the Buyer and the
Seller shall have agreed that the Repurchase Date is not “open”.

“Termination Date” shall mean the date which is 364 days from the date hereof which
shall be November 10, 2007 or such earlier date on which this Agreement shall terminate in
accordance with the provisions hereof or by operation of law, as may be extended pursuant to
Section 3(m).

“Test Period” has the meaning specified in Section 11(s).

“Total Liabilities” shall mean on any date of determination with respect to any
Person, the amount, on a consolidated basis, of the liabilities of such Person and its
respective Subsidiaries, determined in accordance with GAAP, minus Subordinated Debt;
provided, however, that for any period, the aggregate Total Liabilities of any Person during
such period maintained in accordance with GAAP shall be calculated less the aggregate amount
of any such Total Liabilities that are 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 such Person. In the event that any liabilities would be excluded from the calculation of
Total Liabilities but for the existence of recourse, such Person shall be entitled
nonetheless to exclude the amount of such liabilities that are 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 such Person in good faith. Any calculations of Total Liabilities provided
pursuant to this Agreement shall also separately set forth any liabilities of such Person
excluded from such calculation pursuant to the proviso in the definition thereof.

“Transaction” has the meaning specified in Section 1.

“Transaction Request” means a request from the Seller to the Buyer, in the form
attached as Exhibit I hereto, to enter into a Transaction, which may be delivered
via Electronic Transmission.

“True Sale Certification” shall mean a true sale certification in the form of
Exhibit VI attached hereto.

“Trust Receipt” shall mean a trust receipt issued by the Custodian to the Buyer
confirming the Custodian’s possession of certain Mortgage Files which are held by the
Custodian for the benefit of the Buyer or the registered holder of such trust receipt.

“Uncommitted Transaction” has the meaning set forth in the recitals hereto.

“Underwriting Guidelines” shall mean the underwriting guidelines delivered by the
Seller to the Buyer on or prior to the Effective Date and as may be modified or supplemented
from time to time thereafter as approved by the Buyer in its sole discretion attached hereto
as Exhibit II.

“Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code as
in effect on the date hereof in the State of New York; provided that if by reason of
mandatory provisions of law, the perfection, the effect of perfection or non-perfection and
the priority of the security interest in any Purchased Item is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than New York, “Uniform Commercial
Code” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such perfection, effect of perfection or
non-perfection and the priority of the security interest.

“Wet-Ink Mortgage Loan” shall mean an Eligible Asset which is sold to the Buyer on
the origination date thereof by the Seller, which origination is in accordance with the
Underwriting Guidelines and is funded in part or in whole with cash advanced directly to an
escrow agent, Settlement Agent, or Warehouse Lender approved by the Buyer in its sole
discretion.

	3.	 	INITIATION; TERMINATION

	 	(a)	 	Conditions Precedent to the Effective Date. The Effective Date hereof
is subject to the satisfaction, immediately prior to or concurrently therewith, of the
conditions precedent that the Buyer shall have received from the Seller any fees and
expenses payable hereunder (including, without limitation, the fee required pursuant to
Section 4 of the Letter Agreement), and all of the following documents, each of which
shall be satisfactory in form and substance to the Buyer and its counsel:

	 	(1)	 	Fifth Amended and Restated Master Repurchase Agreement.
This Fifth Amended and Restated Master Repurchase Agreement duly completed and
executed by the parties thereto. In addition, the Seller shall have taken such
other action as the Buyer shall have requested in order to perfect the security
interests created pursuant to this Agreement;

	 	(2)	 	Opinions of Counsel. An opinion or opinions of outside
counsel to each of NCCC, NCAH, NCMC, New Century, Home123 and the Guarantor,
substantially in the form of Exhibit III;

	 	(3)	 	Organizational Documents. A good standing certificate
and certified copies of the charter and by-laws (or equivalent documents) of
each of NCCC, NCMC, NCAH, New Century, Home123 and the Guarantor and of all
corporate or other authority for NCCC, NCMC, NCAH, New Century, Home123 or the
Guarantor, as applicable, with respect to the execution, delivery and
performance of the Repurchase Documents to which it is a party and each other
document to be delivered by NCCC, NCMC, NCAH, New Century, Home123 or the
Guarantor from time to time in connection herewith (and the Buyer may
conclusively rely on such certificate until it receives notice in writing from
NCCC, NCMC, NCAH, New Century, Home123 or the Guarantor, as applicable, to the
contrary); provided that corporate resolutions with respect to the execution,
delivery and performance of the Repurchase Documents by the Guarantor may be
provided by the Seller to the Buyer within 10 days of the Effective Date;

	 	(4)	 	Underwriting Guidelines. A copy of the Seller’s
current Underwriting Guidelines, and any material changes to the Underwriting
Guidelines made since the Underwriting Guidelines were last delivered to the
Buyer;

	 	(5)	 	Servicing Agreement(s). Any Servicing Agreement,
certified as a true, correct and complete copy of the original;

	 	(6)	 	Consents and Waivers. Any and all irrevocable consents
and waivers required under the Existing Financing Facilities;

	 	(7)	 	UCC Amendments and Releases. Any and all amendments or
terminations of UCC financing statements required by the Buyer;

	 	(8)	 	Other Documents. Such other documents as the Buyer may
reasonably request, in form and substance reasonably acceptable to the Buyer;
and

	 	(9)	 	Custodial and Disbursement Agreement. The Custodial
and Disbursement Agreement duly completed and executed by the parties thereto.

	 	(10)	 	Letter Agreement. The Letter Agreement duly completed
and executed by the parties thereto.

	 	(11)	 	Guaranty. The Guaranty duly completed and executed by
the Guarantor.

	 	(12)	 	Account Agreement. The Account Agreement duly
completed and executed by the parties thereto.

	 	(13)	 	Electronic Tracking Agreement. The Electronic Tracking
Agreement duly completed and executed by the parties thereto.

	 	(b)	 	Conditions Precedent to all Transactions. The Buyer’s obligation to
enter into each Committed Transaction (including the initial Transaction) and, in the
event the Buyer chooses, in its sole discretion, to enter into an Uncommitted
Transaction pursuant to Section 3(c) below, the Buyer’s obligation to enter into each
Uncommitted Transaction, is subject to the satisfaction of the following further
conditions precedent, both immediately prior to entering into such Transaction and also
after giving effect to the consummation thereof and the intended use of the proceeds of
the sale:

	 	(1)	 	the Seller shall have delivered a Transaction Request via
Electronic Transmission in accordance with the procedures set forth in
Section 3(c);

	 	(2)	 	no Default or Event of Default shall have occurred and be
continuing under the Repurchase Documents;

	 	(3)	 	after giving effect to the requested Transaction, the aggregate
outstanding Purchase Price of the Transactions outstanding shall not exceed the
Maximum Amount;

	 	(4)	 	both immediately prior to the requested Transaction and also
after giving effect thereto and to the intended use thereof, the
representations and warranties made by the Seller in Section 10, shall be true,
correct and complete on and as of such Purchase Date in all material respects
with the same force and effect as if made on and as of such date (or, if any
such representation or warranty is expressly stated to have been made as of a
specific date, as of such specific date);

	 	(5)	 	after giving effect to the requested Transaction, the aggregate
outstanding Purchase Price of the Transactions outstanding shall not exceed the
Asset Value of all the Purchased Assets subject to outstanding Transactions;

	 	(6)	 	subject to the Buyer’s right to perform one or more Due
Diligence Reviews pursuant to Section 28, the Buyer shall have completed its
due diligence review of the Mortgage File for each Purchased Asset, and such
other documents, records, agreements, instruments, mortgaged properties or
information relating to such Purchased Asset as the Buyer in its sole
discretion deems appropriate to review and such review shall be satisfactory to
the Buyer in its sole discretion;

	 	(7)	 	the Buyer shall have received from the Seller certified copies
of any Servicing Agreement relating to the Eligible Assets and the Buyer shall
have reviewed and approved each such Servicing Agreement in its sole
discretion;

	 	(8)	 	the Buyer shall have received all fees and expenses of counsel
to the Buyer as contemplated by Section 14(b) which amount, at the Buyer’s
option, may be withheld from the sale proceeds of any Transaction hereunder;

	 	(9)	 	the Buyer shall have approved, in its sole discretion, all
exceptions to the Underwriting Guidelines;

	 	(10)	 	none of the following shall have occurred and/or be continuing:

(A) an event or events shall have occurred in the good faith
determination of the Buyer resulting in the effective absence of a “repo
market” or comparable “lending market” for financing debt obligations
secured by mortgage loans or securities or an event or events shall have
occurred resulting in the Buyer not being able to finance Purchased Assets
through the “repo market” or “lending market” with traditional
counterparties at rates which would have been reasonable prior to the
occurrence of such event or events; or

(B) an event or events shall have occurred resulting in the effective
absence of a “securities market” for securities backed by mortgage loans or
an event or events shall have occurred resulting in the Buyer not being able
to sell securities backed by mortgage loans at prices which would have been
reasonable prior to such event or events; or

(C) there shall have occurred a material adverse change in the
financial condition of the Buyer which affects (or can reasonably be
expected to affect) materially and adversely the ability of the Buyer to
fund its obligations under this Agreement;

	 	(11)	 	with respect to each Eligible Asset, the Buyer shall have
received from the Custodian on each Purchase Date an Asset Schedule and
Exception Report or Trust Receipt and Basic Status Report, as applicable, dated
the Purchase Date, duly completed and with exceptions acceptable to the Buyer
in its sole discretion in respect of Eligible Assets to be purchased hereunder
on such Business Day;

	 	(12)	 	the Buyer shall have received from the Seller a Warehouse
Lender’s Release Letter substantially in the form of Exhibit VII-B
hereto (or such other form acceptable to the Buyer) or a Seller’s Release
Letter substantially in the form of Exhibit VII-A hereto (or such other
form acceptable to the Buyer) covering each Eligible Asset to be sold to the
Buyer;

	 	(13)	 	The aggregate requested Purchase Price of Eligible Assets that
are not Wet-Ink Mortgage Loans that the Seller has requested the Buyer purchase
pursuant to the Transaction Request is equal to or in excess of $1,000,000;

	 	(14)	 	the Buyer shall not have determined that the introduction of,
or 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;

	 	(15)	 	The Repurchase Date for such Transaction shall not be later
than the Termination Date;

	 	(16)	 	after giving effect to the requested Committed Transaction, the
aggregate amount of outstanding Committed Transactions shall not have Purchase
Prices in excess of the Maximum Committed Amount;

	 	(17)	 	after giving effect to the requested Uncommitted Transaction,
the aggregate amount of outstanding Uncommitted Transactions shall not have
Purchase Prices in excess of the Maximum Uncommitted Amount;

	 	(18)	 	to the extent there are any MERS Designated Mortgage Loans, the
Buyer shall have received from the Seller a copy of a fully executed Electronic
Tracking Agreement; and

	 	(19)	 	the Buyer shall have received from the Seller, with respect to
the MERS Designated Mortgage Loans, a MERS Report reflecting the Seller as the
Investor and no Person named in the Interim Funder field for each such MERS
Designated Mortgage Loan.

	 	(20)	 	None of NCCC, NCAH, NCMC, New Century or Home123 or any of
their Material Subsidiaries shall be in default under any Seller-Related
Obligation equal to or in excess of $2,000,000

Each Transaction Request delivered by the Seller hereunder shall constitute a certification
by each of NCCC, NCAH, NCMC, New Century and Home123 that all the conditions set forth in
this Section 3(b) have been satisfied (both as of the date of such notice or request and as
of the date of such purchase) and shall be deemed to be a request for a Committed
Transaction; provided that if after giving effect to the requested Committed Transaction,
the aggregate amount of outstanding Committed Transactions shall have Purchase Prices in
excess of the Maximum Committed Amount, such latest request shall be deemed a request for an
Uncommitted Transaction.

Each of NCCC, NCAH, NCMC, New Century and Home123 hereby requests that the Buyer, on each
Business Day, convert each Eligible Asset which is a Wet-Ink Mortgage Loan for which the
Mortgage File has been received by the Custodian in accordance with the Custodial and
Disbursement Agreement to a dry Mortgage Loan and this request shall constitute a
certification by each of NCCC, NCAH, NCMC, New Century and Home123 that all the conditions
set forth in this Section 3(b) have been satisfied (both as of the date hereof and as of the
date of such conversion).

	 	(c)	 	This Agreement is not a commitment by the Buyer to enter into the Uncommitted
Transactions with the Seller but rather sets forth the procedures to be used in
connection with periodic requests for the Buyer to enter into the Uncommitted
Transactions with the Seller. The Seller hereby acknowledges that the Buyer is under
no obligation to agree to enter into, or to enter into, any Uncommitted Transaction
pursuant to this Agreement. The Seller shall request a Transaction by delivering to
the Custodian, the Disbursement Agent and the Buyer via Electronic Transmission a
request in the form of Exhibit I attached hereto (a “Transaction Request”) in
accordance with the timeframe set forth in Section 3(a) of the Custodial and
Disbursement Agreement. Such Transaction Request shall describe the Purchased Assets in
a Seller Asset Schedule and set forth (i) the Purchase Date, (ii) the Purchase Price,
(iii) the Repurchase Date, (iv) the Pricing Rate applicable to the Transaction, (v) the
applicable Purchase Percentages and (vi) additional terms or conditions not
inconsistent with this Agreement. Each such Transaction Request in respect of Eligible
Assets that are not Wet-Ink Mortgage Loans shall be for an aggregate Purchase Price
equal to or in excess of $1,000,000.

With respect to any request for an Uncommitted Transaction, unless otherwise agreed in
writing, upon receipt of the Transaction request, the Buyer may, in its sole discretion,
agree to enter into that portion of the requested Transaction representing a request for an
Uncommitted Transaction and such agreement shall be evidenced by a Confirmation to be
delivered to the Seller on the Purchase Date as described below.

On each Purchase Date, the Buyer shall forward to the Seller a confirmation (a
“Confirmation”) by Electronic Transmission setting forth with respect to each
Transaction funded on such date, (1) the mortgage loan numbers, (2) the Purchase Price for
such Purchased Assets, (3) the Market Value of the related Mortgage Loans as of the date of
such Confirmation, (4) the outstanding principal amount of the related Mortgage Loans, (5)
the Repurchase Date, (6) the Pricing Rate and (7) the Class designations of such Purchased
Assets. The Buyer shall forward to the Seller a revised Confirmation by Electronic
Transmission notifying the Seller as to any changes made by the Buyer in the Pricing Spread,
Purchase Percentage or Reduction Amount pursuant to the terms hereof.

On each date that all the documents set forth in Section 2(a)(i) of the Custodial and
Disbursement Agreement are received by the Custodian with respect to any Wet-Ink Mortgage
Loan, and the Custodian delivers to the Buyer a Trust Receipt attaching an Asset Schedule
and Exception Report or Basic Status Report and Exception Report, as applicable, with
respect to such Eligible Assets, the Buyer shall forward to the Seller a new Confirmation by
Electronic Transmission setting forth the following information, updated to reflect the
revised Pricing Rate, and, if applicable, Market Value as a result of the conversion of such
Mortgage Loan, (1) the mortgage loan numbers, (2) the Purchase Price for such Purchased
Assets, (3) the Market Value of the related Mortgage Loans, (4) the outstanding principal
amount of the related Mortgage Loans, (5) the Repurchase Date, (6) the Pricing Rate and (7)
the Class designations of such Purchased Assets.

In the event the Seller disagrees with any terms of the Confirmation, the Seller shall
notify the Buyer in writing of such disagreement within one (1) Business Day after receipt
of such Confirmation unless a corrected Confirmation is sent by the Buyer. An objection
sent by the Seller must state specifically that it is an objection, must specify the
provision(s) being objected to by the Seller, must set forth such provision(s) in the manner
that the Seller believes they should be stated, and must be received by the Buyer no more
than one (1) Business Day after the Confirmation was received by the Seller.

	 	(d)	 	Any Confirmation by the Buyer shall be deemed to have been received by the
Seller on the date actually received by the Seller.

	 	(e)	 	Except as set forth in Section 3(c), each Confirmation, together with this
Agreement, shall constitute conclusive evidence of the terms agreed between the Buyer
and the Seller with respect to the Transaction to which the Confirmation relates, and
the Seller’s acceptance of the related proceeds shall constitute the Seller’s agreement
to the terms of such Confirmation. It is the intention of the parties that each
Confirmation shall not be separate from this Agreement but shall be made a part of this
Agreement.

	 	(f)	 	On the Repurchase Date, termination of a Transaction will be effected by
transfer to the Seller or its designee of the Purchased Assets (and any Income in
respect thereof received by the Buyer not previously credited or transferred to, or
applied to the obligations of, the Seller pursuant to Section 5) which amount shall be
netted against the simultaneous receipt of the Repurchase Price by the Buyer. To the
extent a net amount is owed to one party, the other party shall pay such amount to such
party. The Seller is obligated to obtain the Mortgage Files from the Buyer or its
designee (including the Custodian) at the Seller’s expense on the Repurchase Date.

Any payment made by the Seller to repurchase Purchased Assets shall be first applied
to repurchase Purchased Assets under the Uncommitted Transactions until all
outstanding Uncommitted Transactions have been terminated; it being understood that
it is the intention of the parties hereto that at no time shall there be any
outstanding Uncommitted Transactions when the aggregate amount of the Purchase Price
with respect to all outstanding Committed Transactions is less than the Maximum
Committed Amount.

	 	(g)	 	Subject to the terms and conditions of this Agreement, during the term of this
Agreement, the Seller may sell to the Buyer, repurchase from the Buyer and resell to
the Buyer Eligible Assets hereunder.

	 	(h)	 	In no event shall a Transaction be entered into when any Default or Event of
Default has occurred and is continuing or when the Repurchase Date for such Transaction
would be later than the Termination Date.

	 	(i)	 	With respect to each Eligible Asset that is not a Wet-Ink Mortgage Loan, the
Seller shall deliver to the Custodian the Mortgage File pertaining to each Eligible
Asset to be purchased by the Buyer no later than the time set forth in the Custodial
and Disbursement Agreement.

	 	(j)	 	With respect to each Eligible Asset that is not a Wet-Ink Mortgage Loan,
pursuant to the Custodial and Disbursement Agreement, the Custodian shall deliver to
the Buyer and the Seller an Asset Schedule and Exception Report with respect to the
Eligible Assets which the Seller has requested the Buyer purchase on such Purchase
Date, and no later than 5 p.m., New York City time, on each Purchase Date, the
Custodian shall deliver to the Buyer a Trust Receipt in respect of all such Eligible
Assets purchased by the Buyer on such Purchase Date. Subject to the provisions of this
Section 3 and Section 11 of the Custodial and Disbursement Agreement, the Purchase
Price for each Eligible Asset that is not a Wet-Ink Mortgage Loan will be made
available to the Seller by the Disbursement Agent transferring the aggregate amount of
such Purchase Price in accordance with the Custodial and Disbursement Agreement.

	 	(k)	 	With respect to each Eligible Asset that is a Wet-Ink Mortgage Loan, the Seller
shall cause the Settlement Agent to send the Custodian a facsimile of the associated
Escrow Instruction Letter on each Purchase Date. Subject to the provisions of this
Section 3 and Section 11 of the Custodial and Disbursement Agreement, the Purchase
Price for each Eligible Asset which is a Wet-Ink Mortgage Loan will then be made
available to the Seller by the Disbursement Agent transferring the aggregate amount of
such Purchase Price in accordance with the Custodial and Disbursement Agreement. The
Seller shall deliver the Mortgage File related thereto to the Custodian, for receipt by
the Custodian no later than eight (8) Business Days following the Purchase Date of such
Wet-Ink Mortgage Loan.

	 	(l)	 	The Seller may repurchase any individual Purchased Asset without penalty or
premium, but subject to the last sentence of this Section 3(l), on any date. The
Repurchase Price payable for the repurchase of any such Purchased Asset shall be
reduced as provided in Section 5(d). If the Seller intends to make such a repurchase,
the Seller shall give one (1) Business Day’s prior written notice thereof to the Buyer,
designating the Purchased Assets to be repurchased. If such notice is given, the
amount specified in such notice shall be due and payable on the date specified therein,
and, on receipt, such amount shall be applied to the Repurchase Price for the
designated Purchased Assets. The amount of the original Purchase Price of the
Purchased Assets thus repurchased shall be available for subsequent Transactions
subject to the terms of this Agreement. If any Term Purchased Asset is repurchased on
any date other than the Repurchase Date for such Term Purchased Asset, the Seller shall
pay to the Buyer any amount determined by the Buyer in its sole discretion, exercised
in good faith, as necessary to compensate the Buyer for any additional losses, costs or
expenses which it may reasonably incur as a result of such repurchase, including,
without limitation, any loss, cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by the Buyer to fund or maintain such
Transaction. The Buyer shall deliver to the Seller an invoice setting forth all such
losses, costs or expenses.

	 	(m)	 	At the request of the Seller made at least 10 days, but in no event earlier
than 360 days, prior to the then current Termination Date, the Buyer may in its sole
discretion extend the Termination Date for a period of 364 additional days or such
other period to be determined by the Buyer in its sole discretion by giving written
notice of such extension to the Seller. Any failure by the Buyer to deliver such
notice of extension shall be deemed to be the Buyer’s determination not to extend the
then current Termination Date.

	 	(n)	 	On the Termination Date, including but not limited to a termination pursuant to
Section 20 or otherwise hereunder, the Seller shall pay to the Buyer the Minimum
Pricing Amount. All such payments pursuant to this clause (o) shall be made in Dollars,
in immediately available funds, without deduction, set-off or counterclaim, to the
Buyer at the account set forth in Section 8(a) hereof

	 	(o)	 	On any day on which the Margin Base for such Mortgage Loans exceeds the
aggregate outstanding Purchase Price of all Transactions with respect to such Mortgage
Loans, so long as no Default or Event of Default has occurred and is continuing:

	 	(1)	 	the Seller may prepare a Request for Additional Transactions
for Excess Margin in the form of Exhibit IX attached hereto
(“Request for Additional Transactions for Excess Margin”), (A)
specifying (i) the increase in Purchase Price for all outstanding Transactions
and the requested Purchase Date, (ii) the Excess Margin with respect to all
outstanding Transactions before giving effect to the requested Transaction,
(iii)  the remaining Excess Margin after giving effect to the requested
Transaction, and (iv) the aggregate outstanding Purchase Price of the
Transactions after giving effect to the requested Transaction, and
(B) including a certification that, upon the consummation of the additional
Transactions, the Margin Base will be equal to or greater than the aggregate
outstanding Purchase Price of all Transactions, and the excess of the Margin
Base over the aggregate outstanding Purchase Price, after giving effect to the
Transaction, shall be the “Excess Margin”.

	 	(2)	 	the Seller shall transmit via Electronic Transmission the
Request for Additional Transactions for Excess Margin to the Disbursement Agent
and the Buyer prior to 12:00 noon, New York City time, on the requested
Purchase Date. Upon confirming that the Request for Additional Transactions
for Excess Margin correctly reflects the information set forth in
Section 3(o)(1) and that, after giving effect to the requested Transaction, the
amount of the Margin Base would be equal to or greater than the aggregate
outstanding Purchase Prices of all Transactions, the Buyer shall cause the
Disbursement Agent to remit the additional Purchase Price in the amount set
forth in such Request for Additional Transactions for Excess Margin and send a
revised Confirmation with respect to such Purchased Assets. In the event that
the Buyer’s assessment of the Margin Base would alter the information set forth
in any Request for Additional Transactions for Excess Margin, the Buyer shall
promptly notify the Seller in writing of such assessment.

	 	(3)	 	the Buyer shall not be obligated to cause the Disbursement
Agent to remit the additional Purchase Price requested pursuant to a Request
for Additional Transactions for Excess Margin which (i) the Buyer reasonably
determines is based on erroneous information or would result in a Transaction
other than in accordance with the terms of this Agreement, or (ii) does not
reflect the Buyer’s current determination of Market Value as provided in the
definition thereof.

	4.	 	MARGIN AMOUNT MAINTENANCE

	 	(a)	 	If at any time the Margin Base is less than the aggregate Purchase Price for
all outstanding Transactions (a “Margin Deficit”), then the Buyer may by notice
to the Seller (as such notice is more particularly set forth below, a “Margin
Deficit Notice”) require the Seller to transfer to the Buyer or its designee
(including the Custodian) cash to be applied to reduce the Purchase Price with respect
to all outstanding Transactions such that the Margin Base will thereupon equal or
exceed the aggregate Purchase Price for all outstanding Transactions. If the Buyer
delivers a Margin Deficit Notice to the Seller on or prior to 6 p.m. (New York time) on
any Business Day, then the Seller shall transfer such cash to the Buyer no later than
5 p.m. (New York time) the following Business Day. In the event the Buyer delivers a
Margin Deficit Notice to the Seller after 6 p.m. (New York time) on any Business Day,
then such Margin Deficit Notice shall be deemed to have been delivered on the following
Business Day and the Seller shall be required to transfer cash no later than 5 p.m.
(New York time) on the subsequent Business Day. All cash transferred to the Buyer
pursuant to this Section 4(a) shall be deposited in the account set forth in
Section 8(a) hereof.

	 	(b)	 	the Buyer’s election, in its sole discretion, not to deliver a Margin Deficit
Notice at any time there is a Margin Deficit shall not in any way limit or impair its
right to deliver a Margin Deficit Notice at any time a Margin Deficit exists.

	5.	 	INCOME PAYMENTS

	 	(a)	 	Where a particular Transaction’s term extends over an Income payment date on
the Purchased Assets subject to that Transaction, such Income shall be the property of
the Buyer. The Buyer agrees that until a Default or an Event of Default has occurred
and the Buyer otherwise directs as contemplated in each Servicer Notice, each Servicer
that is not the Seller shall be permitted to continue to remit Income in accordance
with the respective Servicing Agreement. In the event that the Seller is the Servicer
of any Mortgage Loans, the Buyer agrees that until a Default or an Event of Default has
occurred, the Seller shall be permitted to continue to remit or retain Income with
respect to such Mortgage Loans in accordance with its current existing business
practice. Upon notice of a Default or an Event of Default to the Seller hereunder or
to the Servicer pursuant to a Servicer Notice, the Seller shall, and pursuant to the
Servicer Notice, the Servicer shall be required to, deposit promptly all Income in a
deposit account (the title of which shall indicate that the funds therein are being
held in trust for the Buyer) (the “Collection Account”) with the Bank and which
is subject to the Account Agreement. All funds in the Collection Account may be
withdrawn by the Buyer and applied as determined by the Buyer. The Seller may not give
any instruction with respect to the Collection Account after a Default or an Event of
Default.

	 	(b)	 	Notwithstanding that the Buyer and the Seller intend that the Transactions
hereunder be sales to the Buyer of the Purchased Assets, the Seller shall pay to the
Buyer the accreted value of the Price Differential (less any amount of such Price
Differential previously paid by the Seller to the Buyer) of each Transaction through
but not including the Payment Calculation Date (each such payment, a “Periodic
Advance Repurchase Payment”) on each Payment Date. The Buyer shall deliver to the
Seller, via Electronic Transmission, notice of the required Periodic Advance Repurchase
Payment on or prior to the second Business Day preceding each Payment Date. If the
Seller fails to make all or part of the Periodic Advance Repurchase Payment by
5:00 p.m., New York City time, on the Payment Date, the Seller shall be obligated to
pay to the Buyer (in addition to, and together with, the Periodic Advance Repurchase
Payment) interest on the unpaid amount of the Periodic Advance Repurchase Payment at a
rate per annum equal to the Post-Default Rate (the “Late Payment Fee”) until
the overdue Periodic Advance Repurchase Payment is received in full by the Buyer.

	 	(c)	 	the Seller shall hold or cause to be held for the benefit of, and in trust for,
the Buyer all Income, including without limitation all Income received by or on behalf
of the Seller with respect to such Purchased Assets. All such Income shall be held in
trust for the Buyer, shall constitute the property of the Buyer and shall not be
commingled with other property of the Seller, any affiliate of the Seller or the
applicable the Servicer except as expressly permitted above in this Section 5. Funds
deposited in the Collection Account during any month shall be held therein, in trust
for the Buyer.

	 	(d)	 	the Buyer shall offset against the Repurchase Price of each such Transaction
all Income and Periodic Advance Repurchase Payments actually received by the Buyer for
such Transaction pursuant to Sections 5(a) and 5(b) as of the applicable Repurchase
Date, respectively, excluding any Late Payment Fees paid pursuant to Section 5(b); it
being understood that the Late Payment Fees are properties of the Buyer that are not
subject to offset against the Repurchase Price.

	6.	 	REQUIREMENTS OF LAW

	 	(a)	 	If any Requirement of Law (other than with respect to any amendment made to the
Buyer’s certificate of incorporation and by-laws or other organizational or governing
documents) or any change in the interpretation or application thereof or compliance by
the Buyer with any request or directive (whether or not having the force of law) from
any central bank or other Governmental Authority made subsequent to the date hereof:

	 	(1)	 	shall subject the Buyer to any tax of any kind whatsoever with
respect to this Agreement or any Transaction (excluding net income taxes) or
change the basis of taxation of payments to the Buyer in respect thereof;

	 	(2)	 	shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, or other
extensions of credit by, or any other acquisition of funds by, any office of
the Buyer which is not otherwise included in the determination of the
Eurodollar Rate hereunder;

	 	(3)	 	shall impose on the Buyer any other condition;

and the result of any of the foregoing is to increase the cost to the Buyer, by an
amount which the Buyer deems to be material, of entering, continuing or maintaining any
Transaction or to reduce any amount due or owing hereunder in respect thereof, then, in any
such case, the Seller shall promptly pay the Buyer such additional amount or amounts as
calculated by the Buyer in good faith as will compensate the Buyer for such increased cost
or reduced amount receivable. The Buyer shall deliver to the Seller an invoice setting
forth all such increased costs and reduced amounts receivable.

	 	(b)	 	If the Buyer shall have determined that the adoption of or any change in any
Requirement of Law (other than with respect to any amendment made to the Buyer’s
certificate of incorporation and by-laws or other organizational or governing
documents) regarding capital adequacy or in the interpretation or application thereof
or compliance by the Buyer or any corporation controlling the Buyer with any request or
directive regarding capital adequacy (whether or not having the force of law) from any
Governmental Authority made subsequent to the date hereof shall have the effect of
reducing the rate of return on the Buyer’s or such corporation’s capital as a
consequence of its obligations hereunder to a level below that which the Buyer or such
corporation could have achieved but for such adoption, change or compliance (taking
into consideration the Buyer’s or such corporation’s policies with respect to capital
adequacy) by an amount deemed by the Buyer to be material, then from time to time, the
Seller shall promptly pay to the Buyer such additional amount or amounts calculated by
the Buyer in good faith as will compensate the Buyer for such reduction. The Buyer
shall deliver to the Seller an invoice setting forth all such additional amounts.

	 	(c)	 	Any payments made by the Seller to the Buyer shall be free and clear of, and
without deduction or withholding for, any taxes; provided, however, that if the Seller
shall be required by law to deduct or withhold any taxes from any sums payable to the
Buyer, then the Seller shall (A) make such deductions or withholdings and pay such
amounts to the relevant authority in accordance with applicable law, (B) pay to the
Buyer the sum that would have been payable had such deduction or withholding not been
made, and (C) at the time the Price Differential is paid, pay to the Buyer all
additional amounts as specified by the Buyer in good faith to preserve the after-tax
yield the Buyer would have been received had such tax not been imposed.

	 	(d)	 	If the Buyer becomes entitled to claim any additional amounts pursuant to this
Section, (i) it shall promptly notify the Seller of the event by reason of which it has
become so entitled and (ii) at the sole option of the Buyer, (x) the Buyer may
terminate this Agreement and the Seller shall not be required to pay any Termination
Fee or (y) this Agreement shall continue in full force and effect. A certificate as to
any additional amounts payable pursuant to this Section 6(d) submitted by the Buyer to
the Seller shall be conclusive in the absence of manifest error.

	7.	 	SECURITY INTEREST

	 	(a)	 	Each of the following items or types of property, whether now owned or
hereafter acquired, now existing or hereafter created and wherever located, is
hereinafter referred to as a “Purchased Item” and all of them are collectively,
the “Purchased Items”: all Mortgage Loans, all rights under each Purchase
Agreement (but not the obligations thereunder), all Interest Rate Protection
Agreements, all Mortgage Files, including without limitation all promissory notes, all
Servicing Records relating to the Mortgage Loans (as defined in Section 24(b)), all
Servicing Agreements relating to the Mortgage Loans and any other collateral pledged
hereunder or otherwise relating to such Mortgage Loans, together with all files,
documents, instruments, surveys, certificates, correspondence, appraisals, computer
programs, computer storage media, accounting records and other books and records
relating thereto, all mortgage guaranties and insurance (issued by governmental
agencies or otherwise) and any mortgage insurance certificate or other document
evidencing such mortgage guaranties or insurance relating to any Mortgage Loan, all
servicing fees to which such Seller is entitled and servicing and other rights relating
to the Mortgage Loans, all Servicer Accounts established pursuant to any Servicing
Agreement and all amounts on deposit therein, from time to time, all Purchase
Agreements or other agreements or contracts relating to, constituting, or otherwise
governing, any or all of the foregoing to the extent they relate to the Purchased
Assets including the right to receive principal and interest payments with respect to
the Purchased Assets and the right to enforce such payments, the Collection Account and
all monies from time to time on deposit in the Collection Account, all “general
intangibles”, “accounts”, “chattel paper”, “deposit accounts” and “investment property”
as defined in the Uniform Commercial Code as in effect from time to time relating to or
constituting any and all of the foregoing, and any and all replacements, substitutions,
distributions on or proceeds of any and all of the foregoing.

	 	(b)	 	The Buyer and the Seller intend that the Transactions hereunder be sales to the
Buyer of the Purchased Assets and not loans from the Buyer to the Seller 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 loans and as security for the performance by the Seller of all of the
Seller’s obligations to the Buyer hereunder and the Transactions entered into hereunder
(“Repurchase Obligations”) and the Seller-Related Obligations, each of NCCC,
NCAH, NCMC, New Century and Home123 hereby assigns, pledges and grants a security
interest in all of its right, title and interest in, to and under the Purchased Items
and Purchased Assets to the Buyer to secure the Repurchase Obligations and the
Seller-Related Obligations, including without limitation the repayment of all amounts
owing to the Buyer hereunder. The assignment, pledge and grant of security interest
contained herein shall be, and each of NCCC, NCAH, NCMC, New Century and Home123
hereby represents and warrants to the Buyer that it is, a first priority perfected
security interest to the extent such security interest relates to the Mortgage Loans.
Each of NCCC, NCAH, NCMC, New Century and Home123 agrees to mark its computer records
and tapes to evidence the interests granted to the Buyer hereunder. All Purchased
Items shall secure the payment of all obligations of the Seller now or hereafter
existing under this Agreement, including, without limitation, the Seller’s obligation
to repurchase Purchased Assets, or if such obligation is so recharacterized as a loan,
to repay such loan, for the Repurchase Price and to pay any and all other amounts owing
to the Buyer hereunder.

	 	(c)	 	Pursuant to the Custodial and Disbursement Agreement, the Custodian shall hold
the Mortgage Files as exclusive bailee and agent for the Buyer pursuant to the terms of
the Custodial and Disbursement Agreement and shall deliver to the Buyer Trust Receipts
each to the effect that the Custodian has reviewed such Mortgage Files in the manner
and to the extent required by the Custodial and Disbursement Agreement and identifying
any deficiencies in such Mortgage Files as so reviewed.

	8.	 	PAYMENT, TRANSFER AND CUSTODY

	 	(a)	 	Unless otherwise mutually agreed in writing, all transfers of funds to be made
by the Seller hereunder shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to the Buyer at the following account
maintained by the Buyer; Account No. GLA 111569, account name SER, Bank of New York,
ABA No. 021000018, Attn: Eric Seyffer, not later than 3 p.m., New York City time, on
the date on which such payment shall become due (and each such payment made after such
time shall be deemed to have been made on the next succeeding Business Day). The
Seller acknowledges that it has no rights of withdrawal from the foregoing account.

	 	(b)	 	On the Purchase Date for each Transaction, ownership of the Purchased Assets
shall be transferred to the Buyer or its designee (including the Custodian) against the
simultaneous transfer of the Purchase Price to or on behalf of the Seller not later
than 6 p.m., New York City time, simultaneously with the delivery to the Custodian of
the Purchased Assets relating to each Transaction in accordance with the terms hereof
and of the Custodial and Disbursement Agreement. Each of NCCC, NCAH, NCMC, New Century
and Home123 hereby sells, transfers, conveys and assigns to the Buyer or its designee
(including the Custodian) without recourse, but subject to the terms of this Agreement,
all the right, title and interest of NCCC, NCAH, NCMC, New Century and Home123, as
applicable, in and to the Purchased Assets together with all right, title and interest
in and to the proceeds of any related Purchased Items.

	 	(c)	 	In connection with such sale, transfer, conveyance and assignment, on or prior
to each Purchase Date, the Seller shall deliver or cause to be delivered and released
to the Buyer or its designee (including the Custodian) (i) the Custodial Identification
Certificate and (ii) the documents identified in the Custodial and Disbursement
Agreement.

	 	(d)	 	Any Mortgage Files not delivered to the Buyer or its designee (including the
Custodian) are and shall be held in trust by the Seller or its designee for the benefit
of the Buyer as the owner thereof. The Seller or its designee shall maintain a copy of
the Mortgage File and the originals of the Mortgage File not delivered to the Buyer or
its designee (including the Custodian). The possession of the Mortgage File by the
Seller or its designee is at the will of the Buyer for the sole purpose of servicing
the related Purchased Asset, and such retention and possession by the Seller or its
designee is in a custodial capacity only. Each Mortgage File retained or held by the
Seller or its designee shall be segregated on the Seller’s books and records from the
other assets of the Seller or its designee and the books and records of the Seller or
its designee shall be marked appropriately to reflect clearly the sale of the related
Purchased Asset to the Buyer. The Seller or its designee shall release its custody of
the Mortgage File only in accordance with written instructions from the Buyer, unless
such release is required as incidental to the servicing of the Purchased Assets or is
in connection with a repurchase of any Purchased Asset by the Seller.

	9.	 	HYPOTHECATION OR PLEDGE OF PURCHASED ASSETS

Title to all Purchased Assets and Purchased Items shall pass to the Buyer and the Buyer
shall have free and unrestricted use of all Purchased Assets and Purchased Items. Nothing
in this Agreement shall preclude the Buyer from engaging in repurchase transactions with the
Purchased Assets and Purchased Items or otherwise pledging, repledging, transferring,
hypothecating, or rehypothecating the Purchased Assets and Purchased Items, all on terms
that the Buyer may determine in its sole discretion. Nothing contained in this Agreement
shall obligate the Buyer to segregate any Purchased Assets and Purchased Items delivered to
the Buyer by the Seller.

	10.	 	SELLER’S REPRESENTATIONS

Each of NCCC, NCAH, NCMC, New Century and Home123 represents and warrants to the Buyer that
as of the Purchase Date for the purchase of any Purchased Assets by the Buyer from the
Seller and as of the date of this Agreement and any Transaction hereunder and at all times
while the Repurchase Documents and any Transaction hereunder are in full force and effect:

	 	(a)	 	Acting as Principal. The Seller will engage in such Transactions as
principal (or, if agreed in writing in advance of any Transaction by the other party
hereto, as agent for a disclosed principal).

	 	(b)	 	Solvency. Neither the Repurchase Documents nor any Transaction
thereunder are entered into in contemplation of insolvency or with intent to hinder,
delay or defraud any of the Seller’s creditors. The transfer of the Mortgage Loans
subject hereto and the obligation to repurchase such Mortgage Loans is not undertaken
with the intent to hinder, delay or defraud any of the Seller’s creditors. The Seller
is not insolvent within the meaning of 11 U.S.C. Section 101(32) or any successor
provision thereof and the transfer and sale of the Mortgage Loans pursuant hereto and
the obligation to repurchase such Mortgage Loan (i) will not cause the Seller to become
insolvent, (ii) will not result in the Seller having unreasonably small capital, and
(iii) will not result in debts that would be beyond the Seller’s ability to pay as the
same mature. The Seller received reasonably equivalent value in exchange for the
transfer and sale of the Purchased Assets and Purchased Items subject hereto.

	 	(c)	 	No Broker.  The Seller has not 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 Purchased Assets pursuant to
this Agreement.

	 	(d)	 	Ability to Perform. The Seller does not believe, nor does it have any
reason or cause to believe, that it cannot perform each and every covenant contained in
the Repurchase Documents applicable to it to which it is a party.

	 	(e)	 	No Defaults. No Default or Event of Default has occurred and is
continuing hereunder.

	 	(f)	 	Legal Name; Existence. NCMC’s exact legal name is, and for the
immediately preceding four months has been, New Century Mortgage Corporation. NCAH’s
exact legal name is, and for the immediately preceding four months has been, NC Asset
Holding, L.P.. NCCC’s exact legal name is, and for the immediately preceding four
months has been, NC Capital Corporation. New Century’s exact legal name is, and for
the immediately preceding four months has been, New Century Credit Corporation.
Home123’s exact legal name is, and for the immediately preceding four months has been,
Home123 Corporation. Each of NCCC, NCMC, NCAH, New Century and Home123 (a) is a
corporation duly and exclusively organized, validly existing and in good standing under
the laws of California, (b) has all requisite corporate or other power, and has all
governmental licenses, authorizations, consents and approvals necessary to own its
assets and carry on its business as now being or as proposed to be conducted, except
where the lack of such licenses, authorizations, consents and approvals would not be
reasonably likely to have a Material Adverse Effect; and (c) is qualified to do
business and is in good standing in all other jurisdictions in which the nature of the
business conducted by it makes such qualification necessary, except where failure so to
qualify could not be reasonably likely (either individually or in the aggregate) to
have a Material Adverse Effect. NCAH (a) is a corporation duly and exclusively
organized, validly existing and in good standing under the laws of Delaware, (b) has
all requisite corporate or other power, and has all governmental licenses,
authorizations, consents and approvals necessary to own its assets and carry on its
business as now being or as proposed to be conducted, except where the lack of such
licenses, authorizations, consents and approvals would not be reasonably likely to have
a Material Adverse Effect; and (c) is qualified to do business and is in good standing
in all other jurisdictions in which the nature of the business conducted by it makes
such qualification necessary, except where failure so to qualify could not be
reasonably likely (either individually or in the aggregate) to have a Material Adverse
Effect.

	 	(g)	 	Financial Condition. (a) The Seller has heretofore furnished to the
Buyer a copy of (a) its consolidated balance sheet for the fiscal year ended
December 31, 2005, and the related consolidated statements of income and retained
earnings and of cash flows for the Seller and its consolidated Subsidiaries for such
fiscal year, each audited by and accompanied by an opinion thereon of KPMG LLP, which
opinion shall not be qualified as to scope of audit or going concern and shall state
that said consolidated financial statements fairly present the consolidated financial
condition and results of operations of the Seller and its consolidated Subsidiaries as
of the end of, and for, such fiscal year in accordance with GAAP and (b) its
consolidated balance sheet and the consolidated balance sheets of its consolidated
Subsidiaries for the quarterly fiscal period of the Seller since December 31, 2005 and
the related consolidated statements of income and retained earnings and of cash flows
for the Seller and its consolidated Subsidiaries for such quarterly fiscal period,
setting forth in each case in comparative form the figures for the previous year. All
such financial statements are complete and correct and fairly present, in all material
respects, the consolidated financial position of the Seller and its Subsidiaries and
the consolidated results of their operations as of such dates and for such fiscal
periods, all in accordance with GAAP applied on a consistent basis. Since the date of
the most recently such delivered balance sheet, there has been no material adverse
change in the consolidated business, operations or financial condition of the Seller
and its consolidated Subsidiaries taken as a whole from that set forth in said
financial statements.

	 	(h)	 	Litigation. Except as set forth on the compliance report required
under Section 11(y), there are no actions, suits, arbitrations, investigations
(including, without limitation, any of the foregoing which are pending or threatened)
or other legal or arbitrable proceedings affecting the Seller or any of its
Subsidiaries or affecting any of the Property of any of them before any Governmental
Authority which (i) questions or challenges the validity or enforceability of the
Repurchase Documents or any action to be taken in connection with the transactions
contemplated hereby, (ii) makes a claim or claims in an aggregate amount greater than
$5,000,000 (provided such claims or claims shall be required to be set forth on the
compliance report referenced above only upon the Buyer’s request), or
(iii) individually or in the aggregate, if adversely determined, could reasonably be
likely to have a Material Adverse Effect.

	 	(i)	 	No Breach. Neither (a) the execution and delivery of the Repurchase
Documents nor (b) the consummation of the transactions therein contemplated to be
entered into by the Seller in compliance with the terms and provisions thereof will
conflict with or result in a breach of the organizational documents of NCCC, NCAH,
NCMC, New Century, Home123 or the Guarantor, or any applicable law, rule or regulation,
or any order, writ, injunction or decree of any Governmental Authority, or any
Servicing Agreement or other material agreement or instrument to which NCCC, NCAH,
NCMC, New Century, Home123, the Guarantor or any of their respective Subsidiaries is a
party or by which any of them or any of their Property is bound or to which any of them
is subject, or constitute a default under any such material agreement or instrument or
result in the creation or imposition of any Lien (except for the Liens created pursuant
to the Repurchase Documents) upon any Property of NCCC, NCAH, NCMC, New Century,
Home123 or the Guarantor, or any of their respective Subsidiaries pursuant to the terms
of any such agreement or instrument, other than a breach or default for which a consent
or waiver has been obtained pursuant to Section 3(a)(6).

	 	(j)	 	Action. Each of NCCC, NCAH, NCMC, New Century, Home123 and the
Guarantor has all necessary corporate or other power, authority and legal right to
execute, deliver and perform its obligations under each of the Repurchase Documents to
which it is a party, as applicable; the execution, delivery and performance by NCCC,
NCAH, NCMC, New Century, Home123 or the Guarantor of each of the Repurchase Documents
to which it is a party have been duly authorized by all necessary corporate or other
action on its part; and each Repurchase Document to which it is a party has been duly
and validly executed and delivered by NCCC, NCAH, NCMC, New Century, Home123 or the
Guarantor, as applicable, and constitutes a legal, valid and binding obligation of
NCCC, NCAH, NCMC, New Century, Home123 or the Guarantor, as applicable, enforceable
against NCCC, NCAH, NCMC, New Century, Home123 or the Guarantor, as applicable, in
accordance with its terms.

	 	(k)	 	Approvals. No authorizations, approvals or consents of, and no filings
or registrations with, any Governmental Authority or any securities exchange are
necessary for the execution, delivery or performance by NCCC, NCAH, NCMC, New Century,
Home123 or the Guarantor, as applicable, of the Repurchase Documents to which it is a
party or for the legality, validity or enforceability thereof, except for filings and
recordings in respect of the Liens created pursuant to the Repurchase Documents.

	 	(l)	 	Margin Regulations. Neither any Transaction hereunder, nor the use of
the proceeds thereof, will violate or be inconsistent with the provisions of Regulation
T, U or X.

	 	(m)	 	Taxes. Each of NCCC, NCAH, NCMC, New Century, Home123, the Guarantor
and their respective Subsidiaries have filed all Federal income tax returns and all
other material tax returns that are required to be filed by them and have paid all
taxes due pursuant to such returns or pursuant to any assessment received by it or any
of its Subsidiaries, 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 have been provided. The charges, accruals and reserves on the books
of NCCC, NCAH, NCMC, New Century, Home123, the Guarantor and their respective
Subsidiaries in respect of taxes and other governmental charges are, in the opinion of
NCCC, NCAH, NCMC, New Century, Home123 or the Guarantor, as applicable, adequate.

	 	(n)	 	Investment Company Act. None of NCCC, NCAH, NCMC, New Century, Home123,
the Guarantor or any of their respective Subsidiaries is an “investment company”, or a
company “controlled” by an “investment company,” within the meaning of the Investment
Company Act of 1940, as amended.

	 	(o)	 	Purchased Assets.

	 	(1)	 	None of NCCC, NCAH, NCMC, New Century or Home123 has assigned,
pledged, or otherwise conveyed or encumbered any Mortgage Loan to any other
Person (except as between NCCC, NCAH, NCMC, New Century and Home123), and
immediately prior to the sale of such Mortgage Loan to the Buyer, NCCC, NCAH,
NCMC, New Century and/or Home123 was the sole legal and beneficial owner of
such Mortgage Loan and had good and marketable title thereto, free and clear of
all Liens, in each case except for Liens to be released simultaneously with the
sale to the Buyer hereunder. No Mortgage Loan sold to the Buyer hereunder was
acquired (by purchase or otherwise) by NCCC, NCAH, NCMC, New Century or Home123
from an Affiliate of NCCC, NCAH, NCMC, New Century or Home123 (except as among
NCCC, NCAH, NCMC, New Century and Home123), as applicable.

	 	(2)	 	The provisions of this Agreement are effective to either
constitute a sale of the Purchased Items to the Buyer or to create in favor of
the Buyer a valid and fully perfected first priority security interest in all
right, title and interest of NCCC, NCAH, NCMC, New Century and Home123 in, to
and under the Purchased Items.

	 	(3)	 	Upon receipt by the Custodian of each Mortgage Note, endorsed
in blank by a duly authorized officer of NCCC, NCAH, NCMC, New Century or
Home123, as applicable, either a purchase shall have been completed by the
Buyer of each Mortgage Note or the Buyer shall have a valid and fully perfected
first priority security interest in the applicable Mortgage Note and in such
Seller’s interest in the related Mortgaged Property.

	 	(4)	 	Upon the filing of financing statements on Form UCC-1 naming
the Buyer as the “Secured Party”, and NCCC, NCAH, NCMC, New Century and Home123
as the “Debtor” and describing the Purchased Items, in the jurisdictions and
recording offices listed on Exhibit IV attached hereto, the security
interests granted hereunder in the Purchased Items will constitute valid and
fully perfected first priority security interests under the Uniform Commercial
Code in all right, title and interest of NCCC, NCAH, NCMC, New Century and
Home123 in, to and under such Purchased Items, which can be perfected by filing
under the Uniform Commercial Code.

	 	(5)	 	Upon execution and delivery of the Account Agreement, the Buyer
shall either be the owner of, or have a valid and fully perfected first
priority security interest in, all deposit accounts comprising Purchased Items.

	 	(6)	 	With respect to each Purchased Asset, each of the
representations and warranties on Schedule 1 is true and correct.

	 	(p)	 	Chief Executive Office/Jurisdiction of Organization. On the Effective
Date, and during the four months immediately preceding the Effective Date, each of
NCCC’s, NCAH’s, NCMC’s, New Century’s and Home123’s chief executive office, is, and has
been located at, 18400 Von Karman, Suite 1000, Irvine, California 92612. On the
Effective Date, each of NCCC’s, NCMC’s, New Century’s and Home123’s jurisdiction of
organization is California and NCAH’s jurisdiction of organization is Delaware.

	 	(q)	 	Location of Books and Records. The location where each of NCCC, NCAH,
NCMC, New Century and Home123 keeps its books and records, including all computer tapes
and records related to the Purchased Items, is its chief executive office.

	 	(r)	 	Reserved.

	 	(s)	 	Servicing Agreements. The Seller has delivered to the Buyer all
Servicing Agreements with respect to the Purchased Assets and no default or event of
default exists thereunder.

	 	(t)	 	Existing Financing Facilities. No default or event of default exits
under any credit facilities established pursuant to loan and security agreements,
repurchase agreements, gestation repurchase agreements, and any other agreements
establishing warehouse finance facilities involving the Seller, the Guarantor or their
respective Material Subsidiaries which are in effect on the date hereof or any similar
arrangements now or hereafter existing, including, without limitation, any arrangements
under which the Seller, the Guarantor or their respective Material Subsidiaries are
required to repurchase mortgage loans from any lender or other counterparty (the
“Existing Financing Facilities”). The Seller shall file with the SEC copies of
all non-confidential portions of each new Existing Financing Facility to be entered
into.

	 	(u)	 	True and Complete Disclosure. (a) The information, reports, financial
statements, exhibits and schedules furnished in writing by or on behalf of NCCC, NCAH,
NCMC, New Century, Home123 or the Guarantor to the Buyer in connection with the
negotiation, preparation or delivery of this Agreement and the other Repurchase
Documents or included herein or therein or delivered pursuant hereto or thereto (other
than with respect to the Mortgage Loans), when taken as a whole, do not contain any
untrue statement of a material fact or omit to state any material fact necessary to
make the statements herein or therein, in light of the circumstances under which they
were made, not misleading. All written information furnished after the date hereof by
or on behalf of each of NCCC, NCAH, NCMC, New Century, Home123 and the Guarantor to the
Buyer in connection with this Agreement and the other Repurchase Documents and the
transactions contemplated hereby (other than with respect to the Mortgage Loans) and
thereby will be true, complete and accurate in every material respect, or (in the case
of projections) based on reasonable estimates, on the date as of which such information
is stated or certified. There is no fact known to a Responsible Officer of either
NCCC, NCAH, NCMC, New Century or Home123, after due inquiry, that could reasonably be
expected to have a Material Adverse Effect that has not been disclosed herein, in the
other Repurchase Documents or in a report, financial statement, exhibit, schedule,
disclosure letter or other writing furnished to the Buyer for use in connection with
the transactions contemplated hereby or thereby.

	 	(v)	 	ERISA. NCCC, NCAH, NCMC, New Century, Home123, the Guarantor and any
of their respective ERISA Affiliates are not and will not be in the future, required to
contribute to any Plan (including Multiemployer Plans) subject to the applicable
provisions of ERISA.

	 	(w)	 	REIT. Neither NCAH nor the Guarantor has engaged in any material
“prohibited transactions” as defined in Section 857(b)(6)(B)(iii) and (C) of the Code.
Each of NCAH and the Guarantor for their current “tax year” (as defined in the Code)
are and for all prior tax years subsequent to their election to be a real estate
investment trust have been entitled to a dividends paid deduction under the
requirements of Section 857 of the Code with respect to any dividends paid by it with
respect to each such year for which it claims a deduction in their Form 1120-REIT filed
with the United States Internal Revenue Service for such year.

	 	(x)	 	No Reliance. Each of NCMC, NCAH, NCCC, New Century, Home123 and the
Guarantor has made its own independent decision to enter into the Repurchase Documents
and each Transaction and as to whether such Transaction is appropriate and proper for
it based upon its own judgment and upon advice from such advisors (including without
limitation, legal counsel and accountants) as it has deemed necessary. None of NCMC,
NCAH, NCCC, New Century, Home123 or the Guarantor is relying upon any advice from the
Buyer as to any aspect of the Transactions, including without limitation, the legal,
accounting or tax treatment of such Transactions.

	 	(y)	 	Compliance with Anti-Money Laundering Laws. The Seller has complied
with all applicable anti-money laundering laws and regulations, including without
limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering
Laws”); the Seller has established an adequate anti-money laundering compliance
program as required by the Anti-Money Laundering Laws, has conducted the requisite due
diligence in connection with the origination of each Mortgage Loan for purposes of the
Anti-Money Laundering Laws, including with respect to the legitimacy of the applicable
Mortgagor and the origin of the assets used by the said Mortgagor to purchase the
property in question, and maintains, and will maintain, sufficient information to
identify the applicable Mortgagor for purposes of the Anti-Money Laundering Laws.

	 	(z)	 	Other Security Agreements. The Seller has not become bound under
Section 9-203(d) of the UCC by a Security Agreement previously entered into by another
Person.

	11.	 	COVENANTS OF SELLER

On and as of the date of this Agreement and each Purchase Date and until this Agreement is
no longer in force with respect to any Transaction, each of NCCC, NCAH, NCMC, New Century
and Home123 covenants that it will:

	 	(a)	 	Financial Statements. The Seller shall deliver to the Buyer:

	 	(1)	 	as soon as available and in any event within forty-five (45)
calendar days after the end of each calendar month, the unaudited consolidated
balance sheets of the Guarantor, the Seller and their consolidated Subsidiaries
as of the end of such period and the related unaudited consolidated statements
of income and retained earnings and of cash flows for the Guarantor, the Seller
and their consolidated Subsidiaries for such period and the portion of the
fiscal year through the end of such period, accompanied by a certificate of a
Responsible Officer of the Guarantor and the Seller, as applicable, which
certificate shall state that said consolidated financial statements fairly
present in all material respects the consolidated financial condition and
results of operations of the Guarantor or the Seller and its consolidated
Subsidiaries, as applicable, in accordance with GAAP, consistently applied, as
of the end of, and for, such period (subject to normal year-end adjustments);

	 	(2)	 	as soon as available and in any event within ninety (90) days
after the end of each fiscal year of the Guarantor or the Seller, the
consolidated balance sheets of the Guarantor and the Seller and their
respective consolidated Subsidiaries as of the end of such fiscal year and the
related consolidated statements of income and retained earnings and of cash
flows for the Guarantor and the Seller and their respective consolidated
Subsidiaries for such year, setting forth in each case in comparative form the
figures for the previous year, accompanied by an opinion thereon of independent
certified public accountants of recognized national standing, which opinion
shall not be qualified as to scope of audit or going concern and shall state
that said consolidated financial statements fairly present the consolidated
financial condition and results of operations of the Guarantor and the Seller
and their respective consolidated Subsidiaries as of the end of, and for, such
fiscal year in accordance with GAAP, and a certificate of such accountants
stating that, in making the examination necessary for their opinion, they
obtained no knowledge, except as specifically stated, of any Default or Event
of Default; and

	 	(3)	 	from time to time such other information regarding the
financial condition, operations, or business of the Seller as the Buyer may
reasonably request.

The Seller shall furnish to the Buyer, at the time the Seller furnishes each set of
financial statements pursuant to paragraphs (a) and (b) above, a certificate of a
Responsible Officer of the Seller to the effect that, to the best of such Responsible
Officer’s knowledge, the Seller during such fiscal period or year has observed or performed
in all material respects all of its covenants and other agreements, and satisfied every
condition, contained in this Agreement and the other Repurchase Documents to be observed,
performed or satisfied by it, and that such Responsible Officer has obtained no knowledge of
any Default or Event of Default except as specified in such certificate (and, if any Default
or Event of Default has occurred and is continuing, describing the same in reasonable detail
and describing the action the Seller has taken or proposes to take with respect thereto).

	 	(b)	 	Litigation. The Seller will promptly, and in any event within ten (10)
days after service of process on any of the following, give to the Buyer notice of all
litigation, actions, suits, arbitrations, investigations (including, without
limitation, any of the foregoing which are threatened or pending) or other legal or
arbitrable proceedings affecting the Seller or any of its Subsidiaries or affecting any
of the Property of any of them before any Governmental Authority that (i) questions or
challenges the validity or enforceability of any of the Repurchase Documents or any
action to be taken in connection with the transactions contemplated hereby, (ii) makes
a claim or claims in an aggregate amount greater than $5,000,000 (provided notice with
respect to such claim or claims shall be required only upon the Buyer’s request), or
(iii) which, individually or in the aggregate, if adversely determined, could be
reasonably likely to have a Material Adverse Effect.

	 	(c)	 	Existence, etc. Each of NCCC, NCAH, NCMC, New Century and Home123
shall:

	 	(1)	 	preserve and maintain its legal existence and all of its
material rights, privileges, licenses and franchises necessary for the
operation of its business (provided that nothing in this Section 11(c)(1) shall
prohibit any transaction expressly permitted under Section 11(d));

	 	(2)	 	comply with the requirements of all applicable laws, rules,
regulations and orders of Governmental Authorities (including, without
limitation, all environmental laws) if failure to comply with such requirements
could be reasonably likely (either individually or in the aggregate) to have a
Material Adverse Effect;

	 	(3)	 	keep adequate records and books of account, in which complete
entries will be made in accordance with GAAP consistently applied;

	 	(4)	 	not (i) cause or permit any change to be made in its name,
organizational identification number, identity or corporate structure, each as
described in Section 10(f) or (ii) change its jurisdiction of organization,
unless it shall have provided the Buyer thirty (30) days’ prior written notice
of such change and shall have first taken all action required by the Buyer for
the purpose of perfecting or protecting the lien and security interest of the
Buyer established hereunder;

	 	(5)	 	pay and discharge all taxes, assessments and governmental
charges or levies imposed on it or on its income or profits or on any of its
Property prior to the date on which penalties attach thereto, except for any
such tax, assessment, charge or levy the payment of which is being contested in
good faith and by proper proceedings and against which adequate reserves are
being maintained; and

	 	(6)	 	permit representatives of the Buyer, upon reasonable notice
(unless a Default shall have occurred and is continuing, in which case, no
prior notice shall be required), during normal business hours, to examine, copy
and make extracts from its books and records, to inspect any of its Properties,
and to discuss its business and affairs with its officers, all to the extent
reasonably requested by the Buyer.

	 	(d)	 	Restriction on Fundamental Changes. None of the Guarantor, NCCC, NCAH,
NCMC, New Century or Home123 will enter into any transaction of merger or consolidation
or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation,
winding up or dissolution) or sell all or substantially all of its assets;
provided, that the Guarantor, NCCC, NCAH, NCMC, New Century or Home123 may
merge or consolidate with (i) any wholly owned subsidiary of the Guarantor, NCCC, NCAH,
NCMC, New Century or Home123, as applicable, or (ii) any other Person if the Guarantor,
NCCC, NCAH, NCMC, New Century or Home123 is the surviving corporation; and
provided, further, that if after giving effect thereto, no Default
would exist hereunder,

	 	(e)	 	Margin Deficit. If at any time there exists a Margin Deficit, the
Seller shall cure the same in accordance with Section 4.

	 	(f)	 	Notices. The Seller shall give notice to the Buyer:

	 	(1)	 	promptly upon receipt of notice or knowledge of the occurrence
of any Default or Event of Default;

	 	(2)	 	with respect to any Purchased Asset, promptly upon receipt of
any principal prepayment (in full or partial) of such Purchased Asset;

	 	(3)	 	with respect to any Purchased Asset hereunder, promptly upon
receipt of notice or knowledge that the underlying Mortgaged Property has been
damaged by waste, fire, earthquake or earth movement, flood, tornado or other
casualty, or otherwise damaged so as to affect adversely the Asset Value of
such Purchased Asset (provided that the Seller may satisfy its obligations
under this clause (3) by causing the Servicer to notify the Buyer of any such
damage);

	 	(4)	 	promptly upon receipt of notice or knowledge of (i) any
material default related to any Purchased Item, (ii) any Lien or security
interest on, or claim asserted against, any Purchased Item (other than the Lien
created hereby) or (iii) any event or change in circumstances which could
reasonably be expected to have a Material Adverse Effect;

	 	(5)	 	promptly upon any material change in the market value of any or
all of the Seller’s assets which could reasonably be expected to have a
Material Adverse Effect;

	 	(6)	 	[Reserved]

	 	(7)	 	upon the termination of any Existing Financing Facility, if
such termination would require the Seller to have to file a Form 8-K with the
SEC pursuant to the rules governing such filings; provided, however, this
notice requirement shall be deemed satisfied once the Seller files the related
Form 8-K with the SEC; and

	 	(8)	 	promptly upon the occurrence of any default or event of default
under the Existing Financing Facilities.

Each notice pursuant to this Section shall be accompanied by a statement of a Responsible
Officer of the Seller setting forth details of the occurrence referred to therein and
stating what action the Seller has taken or proposes to take with respect thereto.

	 	(g)	 	Reports. Within 45 calendar days following the end of each calendar
quarter, the Seller shall provide the Buyer with a quarterly report, which report shall
include, among other items, (i) a summary of such Seller’s delinquency and loss
experience with respect to Mortgage Loans serviced by the Seller, any Servicer or any
designee of either, operating statements and the occupancy status of such Mortgaged
Property and other property level information, including internal quality control
reports, (ii) with respect to any MERS Designated Mortgage Loan, MERS Reports,
(iii) plus any such additional reports as the Buyer may reasonably request with respect
to the Seller or any Servicer’s servicing portfolio or pending originations of Mortgage
Loans.

	 	(h)	 	Underwriting Guidelines. All Eligible Assets will conform with the
Underwriting Guidelines. The Seller shall not make any material change in the
Underwriting Guidelines without the prior written consent of the Buyer and shall review
the Underwriting Guidelines periodically to confirm that they are being complied with
in all material respects and are adequate to meet the Seller’s business objectives (and
to the extent the Buyer’s consent has not yet been obtained, no Mortgage Loan
underwritten in accordance with such changed Underwriting Guidelines shall be
considered an Eligible Asset). In the event the Seller makes any amendment or
modification to the Underwriting Guidelines, the Seller shall promptly deliver to the
Buyer a complete copy of the amended or modified Underwriting Guidelines.

	 	(i)	 	Transactions with Affiliates. The Guarantor, NCCC, NCAH, NCMC, New
Century and Home123 will not, and will not permit any of their Subsidiaries to, enter
into any transaction with an Affiliate of the Guarantor, NCCC, NCAH, NCMC, New Century
or Home123 (other than another Seller) except transactions in the ordinary course of
business on terms no less favorable to the Guarantor, NCCC, NCAH, NCMC, New Century or
Home123 than those that would be obtained in an arm’s-length transaction. In no event
shall the Seller transfer to the Buyer hereunder any Mortgage Loan acquired by the
Seller from an Affiliate of the Seller (other than each other Seller).

	 	(j)	 	Limitation on Liens. Immediately upon notice of a Lien or any
circumstance which could give rise to a Lien on the Purchased Items to the extent
related to the Mortgage Loans, the Seller will defend such Purchased Items against, and
will take such other action as is necessary to remove, any Lien, security interest or
claim on or to the related Purchased Items (other than any security interest created
under this Agreement), and the Seller will defend the right, title and interest of the
Buyer in and to any of such Purchased Items against the claims and demands of all
persons whomsoever.

	 	(k)	 	Guarantees. The Guarantor, NCCC, NCAH, NCMC, New Century and Home123
will not create, incur, assume or suffer to exist any Guarantees of any Person other
than an Affiliate without ten (10) days’ prior written notice to the Buyer of such
Guarantee.

	 	(l)	 	Limitation on Distributions. After the occurrence and during the
continuation of any Default, none of NCCC, NCAH, NCMC, New Century or Home123 shall
make any payment on account of, or set apart assets for, a sinking or other analogous
fund for the purchase, redemption, defeasance, retirement or other acquisition of any
equity or partnership interest of NCCC, NCAH, NCMC, New Century or Home123, as
applicable, 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 NCCC, NCAH, NCMC, New Century or Home123, as applicable.

	 	(m)	 	Maintenance of Tangible Net Worth. The Guarantor will at all times
during each fiscal year maintain Tangible Net Worth of not less than the sum of (1)
$750,000,000, and (2) fifty percent (50%) of all increases in shareholders’ equity in
the Guarantor attributable to issuances of common stock and preferred equity since
November 1, 2004[; provided, however, that in the event a redemption, repurchase,
repayment or other retirement of such preferred equity results in a decrease in
shareholders’ equity, then any increase in shareholders’ equity resulting from the
issuance of such preferred equity shall be offset by the amount of such decrease for
the purpose of calculating the Tangible Net Worth requirement].

	 	(n)	 	Minimum Liquidity. The Seller shall have at all times, on a
consolidated basis, Cash, Cash Equivalents and unused borrowing capacity on
unencumbered assets that could be drawn against (taking into account the economic terms
of committed Existing Financing Facilities, including, without limitation, any margin
or overcollateralization requirements) under committed Existing Financing Facilities in
an amount equal to not less than $60,000,000.

	 	(o)	 	Leverage Ratio. The Guarantor shall not permit the Leverage Ratio of
the Guarantor and its consolidated Subsidiaries at any time to be greater than 15:1.

	 	(p)	 	Servicer; Servicing Tape. The Seller shall provide to the Buyer and to
the Disbursement Agent via Electronic Transmission, a remittance report on a monthly
basis by no later than the 12th day of each month (the “Reporting
Date”) containing servicing information, including without limitation those
fields reasonably requested by the Buyer from time to time, on a loan-by-loan basis and
in the aggregate, with respect to the Purchased Assets serviced hereunder by the Seller
or any Servicer for the month (or any portion thereof) prior to the Reporting Date
(such remittance report, an “Asset Tape”). The Seller shall not cause the
Mortgage Loans to be serviced by any servicer other than a servicer expressly approved
in writing by the Buyer, which approval shall be deemed granted by the Buyer with
respect to the Seller with the execution of this Agreement.

	 	(q)	 	Required Filings. The Seller shall promptly provide the Buyer with
copies of all documents which NCCC, NCAH, NCMC, New Century or Home123 or any
Subsidiary of NCCC, NCAH, NCMC, New Century or Home123 is required to file with any
regulatory body in accordance with its regulations other than routine filings in the
ordinary course of business with regulatory bodies (other than the Securities and
Exchange Commission (the “SEC”)) which related to obtaining or maintaining
licenses to do business or corporate qualifications; provided that Seller may satisfy
this requirement to provide copies with respect to each such filing with the SEC by
sending notice via Electronic Transmission of any filing with the SEC.

	 	(r)	 	Remittance of Prepayments. The Seller shall remit or cause to be
remitted to the Buyer, with sufficient detail via Electronic Transmission to enable the
Buyer to appropriately identify the Mortgage Loan to which any amount remitted applies,
all full or partial principal prepayments on any Purchased Asset that the Seller or the
Servicer has received on a weekly basis, to be paid on Thursday of the next succeeding
week (or the next Business Day).

	 	(s)	 	Maintenance of Profitability. The Seller shall not permit, for any two
consecutive calendar quarters (each such period, a “Test Period”), Net Income
for such Test Period before income taxes for such Test Period and distributions made
during such Test Period, to be less than $1.00.

	 	(t)	 	Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted by any
of such covenants, the fact that it would be permitted by an exception to, or be
otherwise within the limitations of, another covenant shall not avoid the occurrence of
an Event of Default or Default if such action is taken or condition exists.

	 	(u)	 	Escrow Imbalances. The Seller will, no later than five (5) Business
Days after learning (from any source) of an aggregate imbalance in the escrow accounts
equal to or in excess of $1,000,000, fully and completely correct and eliminate such
imbalance including, without limitation, depositing its own funds into such account to
eliminate any overdrawal or deficit.

	 	(v)	 	Reserved.

	 	(w)	 	Custodial and Disbursement Agreement and Account Agreement. The Seller
shall maintain each of the Custodial and Disbursement Agreement and Account Agreement
in full force and effect and shall not amend or modify either of the Custodial and
Disbursement Agreement or the Account Agreement or waive compliance with any provisions
thereunder without the prior written consent of the Buyer.

	 	(x)	 	Inconsistent Agreements. The Guarantor, NCMC, NCAH, NCCC, New Century
and Home123 will not, and will not permit any of their Subsidiaries to, directly or
indirectly, enter into any agreement containing any provision which would be violated
or breached by any Transaction hereunder or by the performance by any of the Guarantor,
NCCC, NCAH, NCMC, New Century or Home123 of their respective obligations under any
Repurchase Document to which it is a party.

	 	(y)	 	Compliance Report. The Seller shall provide the Buyer no later than
the thirtieth (30th) calendar day of each month a compliance report, in the
form of Exhibit X attached hereto, demonstrating therein the calculations the
Seller utilized to determine its compliance with the financial covenants set forth in
clauses (m), (n), (o) and (s) of this Section 11 as of the end of the immediately
preceding month. Such compliance report shall be delivered by the Seller to the Buyer
in accordance with Section 17 and shall also be delivered by the Seller to the Buyer at
9 West 57th Street, New York, NY 10019, Attn: Michael Friedman, Telecopier
No.: (212) 891-6143, Telephone No.: (212) 891-6261.

	12.	 	EVENTS OF DEFAULT

If any of the following events (each, an “Event of Default”) occur, the Seller and
the Buyer shall have the rights set forth in Section 13, as applicable:

	 	(a)	 	the Seller shall default in the payment of any Repurchase Price due or any
amount under Section 5 when due (whether at stated maturity, upon acceleration or at
mandatory or optional prepayment); or

	 	(b)	 	the Seller shall default in the payment of any other amount payable by it
hereunder or under any other Repurchase Document after notification by the Buyer of
such default, and such default shall have continued unremedied for one (1) Business
Day; or

	 	(c)	 	any representation, warranty or certification made or deemed made herein or in
any other Repurchase Document by the Seller or any certificate furnished to the Buyer
pursuant to the provisions hereof or thereof or any information with respect to the
Mortgage Loans furnished in writing by or on behalf of the Seller shall prove to have
been false or misleading in any material respect as of the time made or furnished
(other than the representations and warranties set forth in Schedule 1, which
shall be considered solely for the purpose of determining the Asset Value of the
Purchased Assets, unless (i) the Seller shall have made any such representations and
warranties with actual knowledge that they were materially false or misleading at the
time made; or (ii) any such representations and warranties have been determined in good
faith by the Buyer in its sole discretion to be materially false or misleading on a
regular basis); or

	 	(d)	 	the Seller shall fail to comply with the requirements of Section 11(c), Section
11(d), Section 11(e), Section 11(f), Section 11(h) (with respect to the Eligible Assets
as a whole and not with respect to any single Eligible Asset) or Sections 11(i) through
11(w); and such default shall continue unremedied for a period of 5 Business Days (30
Business Days in the case of Section 11(h), Section 11(p) and Section 11(r)) from the
earlier of (i) a responsible officer of the Seller having knowledge of such default and
(ii) the Buyer giving notice to the Seller of such default; or except as otherwise set
forth in Sections 12(a), 12(b), 12(c) and 12(d), the Seller shall fail to observe or
perform any other covenant or agreement contained in this Agreement or any other
Repurchase Document and such failure to observe or perform shall continue unremedied
for a period of 30 Business Days (10 Business Days in the case of Section 11(a) and
Section 11(y)) from the earlier of (i) a responsible officer of the Seller having
knowledge of such default and (ii) the Buyer giving notice to the Seller of such
default; or

	 	(e)	 	a final judgment or judgments for the payment of money in excess of $10,000,000
in the aggregate shall be rendered against NCCC, NCAH, NCMC, New Century, Home123 or
any of their Affiliates by one or more courts, administrative tribunals or other bodies
having jurisdiction and the same shall not be satisfied, discharged (or provision shall
not be made for such discharge) or bonded, or a stay of execution thereof shall not be
procured, within 30 days from the date of entry thereof; or

	 	(f)	 	an Act of Insolvency shall have occurred with respect to the Guarantor, NCCC,
NCAH, NCMC, New Century or Home123 or any of their Subsidiaries; or

	 	(g)	 	the Custodial and Disbursement Agreement, the Account Agreement or any
Repurchase Document shall for whatever reason be terminated or cease to be in full
force and effect, or the enforceability thereof shall be contested by NCCC, NCAH, NCMC,
New Century or Home123; or

	 	(h)	 	NCCC, NCAH, NCMC, New Century or Home123 shall grant, or suffer to exist, any
Lien on any Purchased Item (except any Lien in favor of the Buyer); or either the
Purchased Items shall not have been sold to the Buyer free and clear of any Liens in
favor of any Person other than the Buyer, or the Liens contemplated hereby shall cease
or fail to be first priority perfected Liens on any Purchased Items (but not the
related Mortgaged Properties) in favor of the Buyer or shall be Liens in favor of any
Person other than the Buyer; or

	 	(i)	 	NCCC, NCAH, NCMC, New Century or Home123 or any of their Material Subsidiaries
shall be in default under (i) any Indebtedness in an amount equal to $10,000,000 or
more of NCCC, NCAH, NCMC, New Century or Home123 or of such Material Subsidiary which
default (1) involves the failure to pay a matured obligation, or (2) permits the
acceleration of the maturity of obligations by any other party to or beneficiary with
respect to such Indebtedness, (ii) any other contract to which NCCC, NCAH, NCMC, New
Century or Home123 or such Material Subsidiary is a party which default (1) involves
the failure to pay a matured obligation in excess of $10,000,000, or (2) permits the
acceleration of the maturity of obligations in excess of $10,000,000 by any other party
to or beneficiary of such contract, or (iii) any Seller-Related Obligation equal to or
in excess of $10,000,000; or

	 	(j)	 	any material adverse change in the Property, business or financial condition of
NCCC, NCAH, NCMC, New Century or Home123 or any of their Material Subsidiaries shall
occur, in each case as determined by the Buyer in its sole good faith discretion, or
any other condition shall exist which, in the Buyer’s sole good faith discretion,
constitutes a material impairment of the Seller’s ability to perform its obligations
under this Agreement or any other Repurchase Document; or

	 	(k)	 	if the Buyer has purchased MERS Designated Mortgage Loans the Electronic
Tracking Agreement has for whatever reason been terminated or ceases to be in full
force and effect and (1) the Buyer (or the Custodian as its designee) shall not have
received an assignment of mortgage with respect to each MERS Designated Mortgage Loan,
in blank, in recordable form, but unrecorded within ten (10) days of such termination
or (2) a new Electronic Tracking Agreement has not been entered into by the Seller, the
Buyer and the Electronic Agent within ten (10) days of such termination; or

	 	(l)	 	upon any event of default or event which, with the passage of time or
expiration of any grace periods, would constitute an event of default under any of the
Existing Financing Facilities; or

	 	(m)	 	a Change of Control shall have occurred; or

	 	(n)	 	upon the failure of the Guarantor at any time to continue to be (i) qualified
as a real estate investment trust 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 NCAH or the Guarantor of any material “prohibited
transactions” as defined in Sections 857(b) and 856(c) of the Code; or

	 	(o)	 	upon the failure by the Guarantor to satisfy any of the following asset or
income tests:

	 	(1)	 	At the close of each taxable year, at least 75 percent of such
Person’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.

	 	(2)	 	At the close of each taxable year, at least 95 percent of such
Person’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 such
Person 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.

	 	(3)	 	At the close of each quarter of such Person’s taxable years, at
least 75 percent of the value of such Person’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 Person’s operations, but not including
receivables purchased from another person), and government securities.

	 	(4)	 	At the close of each quarter of each of such Person’s taxable
years, (i) not more than 25 percent of such Person’s total asset value will be
represented by securities (other than those described in paragraph 3), (ii) not
more than 20 percent of such Person’s total asset value will be represented by
securities of one or more taxable REIT subsidiaries, and (iii) (a) not more
than 5 percent of the value of such Person’s total assets will be represented
by securities of any one issuer (other than Government securities and
securities of taxable REIT subsidiaries), and (b) such Person will not 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).

	13.	 	REMEDIES

	 	(a)	 	If an Event of Default occurs, the following rights and remedies are available
to the Buyer; provided, that an Event of Default shall be deemed to be continuing
unless expressly waived by the Buyer in writing.

	 	(1)	 	At the option of the Buyer, exercised by written notice to the
Seller (which option shall be deemed to have been exercised, even if no notice
is given, immediately upon the occurrence of an Act of Insolvency of the
Seller), the Repurchase Date for each Transaction hereunder, if it has not
already occurred, shall be deemed immediately to occur. The Buyer shall
(except upon the occurrence of an Act of Insolvency of the Seller) give notice
to the Seller of the exercise of such option as promptly as practicable.

	 	(2)	 	If the Buyer exercises or is deemed to have exercised the
option referred to in subsection (a)(1) of this Section 13,

(A) (i) the Seller’s obligations in such Transactions to repurchase all
Purchased Assets, at the Repurchase Price therefor on the Repurchase Date,
and to pay all other amounts owed by the Seller hereunder, shall thereupon
become immediately due and payable, (ii) all Income paid after such exercise
or deemed exercise shall be retained by the Buyer and applied to the
aggregate unpaid Repurchase Prices and any other amounts owed by the Seller
hereunder, and (iii) the Seller shall immediately deliver to the Buyer any
Purchased Assets subject to such Transactions then in NCCC’s, NCAH’s,
NCMC’s, New Century’s or Home123’s possession or control;

(B) to the extent permitted by applicable law, the Repurchase Price
with respect to each such Transaction shall be increased by the aggregate
amount obtained by daily application of, on a 360 day per year basis for the
actual number of days during the period from and including the date of the
exercise or deemed exercise of such option to but excluding the date of
payment of the Repurchase Price, (x) the Post-Default Rate to (y) the
Repurchase Price for such Transaction as of the Repurchase Date (decreased
as of any day by (i) any amounts actually in the possession of the Buyer
pursuant to clause (C) of this subsection, (ii) any proceeds from the sale
of Purchased Assets applied to the Repurchase Price pursuant to subsection
(a)(4) of this Section 13, and (iii) any amounts applied to the Repurchase
Price pursuant to subsection (a)(4) of this Section 13); and

(C) all Income actually received by the Buyer pursuant to Section 5
(excluding any Late Payment Fees paid pursuant to Section 5(b)) shall be
applied to the aggregate unpaid Repurchase Price owed by the Seller.

	 	(3)	 	Upon the occurrence of one or more Events of Default, the Buyer
shall have the right to obtain physical possession of the Servicing Records
(subject to the provisions of the Custodial and Disbursement Agreement) and all
other files of the Seller relating to the Purchased Assets and all documents
relating to the Purchased Assets which are then or may thereafter come in to
the possession of the Seller or any third party acting for the Seller and the
Seller shall deliver to the Buyer such assignments as the Buyer shall request
and the Buyer shall have the right to appoint any Person to act as the Servicer
for the Purchased Assets. The Buyer shall be entitled to specific performance
of all agreements of the Seller contained in the Repurchase Documents.

	 	(4)	 	At any time on the Business Day following notice to the Seller
(which notice may be the notice given under subsection (a)(1) of this Section
13), in the event the Seller has not repurchased all Purchased Assets, the
Buyer may (A) immediately sell, without demand or further notice of any kind,
at a public or private sale and at such price or prices as the Buyer may deem
satisfactory any or all Purchased Assets subject to such Transactions hereunder
and apply the proceeds thereof to the aggregate unpaid Repurchase Price and any
other amounts owing by the Seller hereunder or (B) in its sole discretion
elect, in lieu of selling all or a portion of such Purchased Assets, to give
the Seller credit for such Purchased Assets in an amount equal to the Market
Value of the Purchased Assets against the aggregate unpaid Repurchase Price and
any other amounts owing by the Seller hereunder. The proceeds of any
disposition of Purchased Assets shall be applied first to the costs and
expenses incurred by the Buyer in connection with the Seller’s default; second
to costs of related covering and/or related hedging transactions; third to the
Repurchase Price; and fourth to any other outstanding obligations of the Seller
to the Buyer or its Affiliates. In connection with any sale pursuant to clause
(A) of this subsection (a)(4), the Buyer may (i) sell any such Purchased Assets
without giving any warranties and (ii) specifically disclaim or modify any
warranties of title or the like, and this procedure shall not be considered to
adversely affect the commercial reasonableness of any such sale of the
Purchased Assets.

	 	(5)	 	the Seller agrees that the Buyer may obtain an injunction or an
order of specific performance to compel the Seller to fulfill its obligations
as set forth in Section 24, if the Seller fails or refuses to perform its
obligations as set forth therein.

	 	(6)	 	the Seller shall be liable to the Buyer, payable as and when
incurred by the Buyer, for (A) the amount of all actual out-of-pocket expenses,
including legal or other expenses incurred by the Buyer in connection with or
as a consequence of an Event of Default, and (B) all costs incurred in
connection with hedging or covering transactions.

	 	(7)	 	the Buyer shall have, in addition to its rights hereunder, any
rights otherwise available to it under any other agreement or applicable law.

	 	(b)	 	The Buyer may exercise one or more of the remedies available to the Buyer
immediately upon the occurrence of an Event of Default and, except to the extent
provided in subsections (a)(1) and (4) of this Section 13, at any time thereafter
without notice to the Seller. All rights and remedies arising under this Agreement as
amended from time to time hereunder are cumulative and not exclusive of any other
rights or remedies which the Buyer may have.

	 	(c)	 	the Buyer may enforce its rights and remedies hereunder without prior judicial
process or hearing, and the Seller hereby expressly waives any defenses the Seller
might otherwise have to require the Buyer to enforce its rights by judicial process.
The Seller also waives any defense (other than a defense of payment or performance) the
Seller might otherwise have arising from the use of nonjudicial process, enforcement
and sale of all or any portion of the Purchased Items, or from any other election of
remedies. The Seller recognizes that nonjudicial remedies are consistent with the
usages of the trade, are responsive to commercial necessity and are the result of a
bargain at arm’s-length.

	 	(d)	 	To the extent permitted by applicable law, the Seller shall be liable to the
Buyer for interest on any amounts owing by the Seller hereunder, from the date the
Seller becomes liable for such amounts hereunder until such amounts are (i) paid in
full by the Seller or (ii) satisfied in full by the exercise of the Buyer’s rights
hereunder. Interest on any sum payable by the Seller to the Buyer under this paragraph
13(d) shall be at a rate equal to the Post-Default Rate.

	14.	 	INDEMNIFICATION AND EXPENSES

	 	(a)	 	NCCC, NCAH, NCMC, New Century and Home123, jointly and severally, agree to hold
the Buyer and its Affiliates and their present and former respective officers,
directors, employees, agents, advisors and other representatives (each an
“Indemnified Party”) harmless from and indemnify any Indemnified Party against
all third party liabilities, losses, damages, judgments, costs and expenses of any kind
which may be imposed on, incurred by or asserted against such Indemnified Party
(including counsel’s fees and disbursements) (collectively, “Costs”), relating
to or arising out of this Agreement, any other Repurchase Document or any transaction
contemplated hereby or thereby, or any amendment, supplement or modification of, or any
waiver or consent under or in respect of, this Agreement, any other Repurchase Document
or any transaction contemplated hereby or thereby, that, in each case, results from
anything other than the Indemnified Party’s gross negligence or willful misconduct.
Without limiting the generality of the foregoing, each of NCCC, NCAH, NCMC, New Century
and Home123, jointly and severally, agrees to hold any Indemnified Party harmless from
and indemnify such Indemnified Party against all Costs with respect to all Mortgage
Loans relating to or arising out of any violation or alleged violation of any
environmental law, rule or regulation or any consumer credit laws, including without
limitation the federal Truth in Lending Act and/or the federal Real Estate Settlement
Procedures Act, that, in each case, results from anything other than the Indemnified
Party’s gross negligence or willful misconduct. In any suit, proceeding or action
brought by an Indemnified Party in connection with any Mortgage Loan for any sum owing
thereunder, or to enforce any provisions of any Mortgage Loan, each of NCCC, NCAH,
NCMC, New Century and Home123, jointly and severally, will save, indemnify and hold
such Indemnified Party harmless from and against all expense, loss or damage suffered
by reason of any defense, set-off, counterclaim, recoupment or reduction or liability
whatsoever of the account debtor or obligor thereunder, arising out of a breach by
NCCC, NCAH, NCMC, New Century or Home123 of any obligation thereunder or arising out of
any other agreement, indebtedness or liability at any time owing to or in favor of such
account debtor or obligor or its successors from NCCC, NCAH, NCMC, New Century or
Home123. Each of NCCC, NCAH, NCMC, New Century and Home123, jointly and severally,
also agrees to reimburse an Indemnified Party as and when billed by such Indemnified
Party for all the Indemnified Party’s costs and expenses incurred in connection with
the enforcement or the preservation of the Buyer’s rights under this Agreement, any
other Repurchase Document or any transaction contemplated hereby or thereby, including
without limitation the fees and disbursements of its counsel.

	 	(b)	 	the Seller agrees to pay as and when billed by the Buyer all of the
out-of-pocket costs and expenses (including legal fees) incurred by the Buyer in
connection with the development, preparation and execution of, and any amendment,
supplement or modification to, this Agreement, any other Repurchase Document or any
other documents prepared in connection herewith or therewith. The Seller agrees to pay
as and when billed by the Buyer all of the out-of-pocket costs and expenses incurred in
connection with the consummation and administration of the transactions contemplated
hereby and thereby including without limitation all fees, disbursements and expenses of
counsel to the Buyer which amount shall be deducted from the Purchase Price paid for
the first Transaction hereunder. Subject to the limitations set forth in Section 28,
the Seller agrees to pay the Buyer all the out of pocket due diligence, inspection,
appraisals, testing and review costs and expenses incurred by the Buyer with respect to
Mortgage Loans submitted by the Seller for purchase under this Agreement, including,
but not limited to, those out of pocket costs and expenses incurred by the Buyer
pursuant to Sections 28.

	15.	 	RECORDING OF COMMUNICATIONS

The Buyer and the Seller shall have the right (but not the obligation) from time to time to
make or cause to be made tape recordings of communications between its employees and those
of the other party with respect to Transactions upon notice to the other party of such
recording. The Buyer and the Seller consent to the admissibility of such tape recordings in
any court, arbitration, or other proceedings. The parties agree that a duly authenticated
transcript of such a tape recording shall be deemed to be a writing conclusively evidencing
the parties’ agreement.

	16.	 	SINGLE AGREEMENT

The Buyer and the Seller 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 that
each has been entered into in consideration of the other Transactions. Accordingly, each of
the Buyer and the Seller agrees (i) to perform all of its obligations in respect of each
Transaction hereunder, and that a default in the performance of any such obligations shall
constitute a default by it in respect of all Transactions hereunder, (ii) that each of them
shall be entitled to set off claims and apply property held by them in respect of any
Transaction against obligations owing to them in respect of any other Transaction hereunder;
(iii) that payments, deliveries, and other transfers made by either 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 Transactions hereunder, and the obligations to
make any such payments, deliveries, and other transfers may be applied against each other
and netted and (iv) to promptly provide notice to the other after any such set off or
application.

	17.	 	NOTICES AND OTHER COMMUNICATIONS

Except as otherwise expressly permitted by this Agreement, all notices, requests and other
communications provided for herein and under the Custodial and Disbursement Agreement
(including without limitation any modifications of, or waivers, requests or consents under,
this Agreement) shall be given or made in writing (including without limitation by email,
telex or telecopy) delivered to the intended recipient at the “Address for Notices”
specified below its name on the signature pages hereof or thereof); or, as to any party, at
such other address as shall be designated by such party in a written notice to each other
party. Except as otherwise provided in this Agreement and except for notices given under
Section 3 (which shall be effective only upon receipt), all such communications shall be
deemed to have been duly given when transmitted by telecopy or personally delivered or, in
the case of a mailed notice, upon receipt.

	18.	 	ENTIRE AGREEMENT; SEVERABILITY; MODIFICATIONS

This Agreement together with the other Repurchase Documents constitutes the entire
understanding between the Buyer and the Seller with respect to the subject matter it covers
and shall supersede any existing agreements between the parties containing general terms and
conditions for repurchase transactions involving Purchased Assets. By acceptance of this
Agreement, the Buyer and the Seller acknowledge that they have not made, and are not relying
upon, any statements, representations, promises or undertakings not contained in this
Agreement. Each provision and agreement herein shall be treated as separate and independent
from any other provision or agreement herein and shall be enforceable notwithstanding the
unenforceability of any such other provision or agreement. No amendment, modification or
release from any provision of this Agreement shall be effective unless in writing and
executed by or on behalf of the party or parties to be charged therewith and shall be
effective only in the specific instance and for the specific purpose for which given.

	19.	 	NON-ASSIGNABILITY

The rights and obligations of the parties under this Agreement and under any Transaction
shall not be assigned by the Seller or the Buyer without the prior written consent of the
other party, and any attempted assignment without such consent shall be null and void.
Notwithstanding the foregoing, the Buyer may assign its rights and remedies under this
Agreement and under any Transaction without the consent of the Seller (a) to any Affiliate
of the Buyer (with notice to the Seller), and (b) in connection with any pledge,
rehypothecation or other right permitted pursuant to Section 9. Subject to the foregoing,
this Agreement and any Transactions shall be binding upon and shall inure to the benefit of
the parties and their respective successors and assigns. Nothing in this Agreement express
or implied, shall give to any person, other than the parties to this Agreement and their
successors hereunder, any benefit of any legal or equitable right, power, remedy or claim
under this Agreement.

	20.	 	TERMINABILITY

Except as set forth below, this Agreement may be terminated by the Seller upon giving
written notice to the Buyer and payment of the Minimum Pricing Amount except that this
Agreement shall, notwithstanding such notice, remain applicable to any Transaction then
outstanding; provided that the Repurchase Date for any such Transaction outstanding shall be
the earlier to occur of (i) the original Repurchase Date pursuant to the applicable
Confirmation and (ii) 20 days from the date of such notice of termination. Each
representation and warranty made or deemed to be made by entering into a Transaction, herein
or pursuant hereto shall survive the making of such representation and warranty, and the
Buyer shall not be deemed to have waived any Default that may arise because any such
representation or warranty shall have proved to be false or misleading, notwithstanding that
the Buyer may have had notice or knowledge or reason to believe that such representation or
warranty was false or misleading at the time the Transaction was made. Notwithstanding any
such termination or the occurrence of an Event of Default, all of the representations and
warranties and covenants hereunder shall continue and survive. The obligations of the
Seller under Section 14 shall survive the termination of this Agreement.

	21.	 	GOVERNING LAW

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES.

	22.	 	SUBMISSION TO JURISDICTION; WAIVERS

EACH OF BUYER, NCCC, NCAH, NCMC, NEW CENTURY AND HOME123 HEREBY IRREVOCABLY AND
UNCONDITIONALLY:

(A) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT AND THE OTHER REPURCHASE DOCUMENTS, OR FOR RECOGNITION AND ENFORCEMENT OF ANY
JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE PERSONAL JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN, 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 VENUE 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 BUYER SHALL HAVE BEEN NOTIFIED;

(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; AND

(E) WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER
REPURCHASE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

	23.	 	NO WAIVERS, ETC.

No failure on the part of the Buyer or the Seller to exercise and no delay in exercising,
and no course of dealing with respect to, any right, power or privilege under any Repurchase
Document shall operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege under any Repurchase Document preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. The remedies
provided herein are cumulative and not exclusive of any remedies provided by law. An Event
of Default shall be deemed to be continuing unless expressly waived by the Buyer in writing.

	24.	 	SERVICING

	 	(a)	 	Each of NCCC, NCAH, NCMC, New Century and Home123 covenants to maintain or
cause the servicing of the Mortgage Loans to be maintained in conformity with accepted
and prudent servicing practices in the industry for the same type of mortgage loans as
the Mortgage Loans and in a manner at least equal in quality to the servicing the
Seller provides for mortgage loans which it owns. In the event that the preceding
language is interpreted as constituting one or more servicing contracts, each such
servicing contract shall terminate automatically upon the earliest of (i) an Event of
Default, (ii) the date on which this Agreement terminates or (iii) the transfer of
servicing approved by the Buyer.

	 	(b)	 	If the Mortgage Loans are serviced by the Seller, the Seller agrees that the
Buyer is the owner of all servicing records, including but not limited to any and all
servicing agreements, files, documents, records, data bases, computer tapes, copies of
computer tapes, proof of insurance coverage, insurance policies, appraisals, other
closing documentation, payment history records, and any other records relating to or
evidencing the servicing of the Mortgage Loans (the “Servicing Records”). The
Seller covenants to safeguard such Servicing Records and to deliver them promptly to
the Buyer or its designee (including the Custodian) at the Buyer’s request.

	 	(c)	 	If the Mortgage Loans are serviced by a person other than the Seller (such
third party the “Servicer”), the Seller (i) shall, in accordance with Section
(3)(b)(7), provide a copy of the servicing agreement to the Buyer, which shall be in
form and substance acceptable to the Buyer (the “Servicing Agreement”), and
shall provide a Servicer Notice to the Buyer substantially in the form of
Exhibit VIII hereto, fully executed by the Seller and the Servicer; and
(ii) hereby irrevocably assigns to the Buyer and the Buyer’s successors and assigns all
right, title and interest of the Seller in, to and under, and the benefits of, any
Servicing Agreement with respect to the Mortgage Loans. The Seller agrees that no
Person shall assume the servicing obligations with respect to the Mortgage Loans as
successor to the Servicer unless such successor is approved in writing by the Buyer
prior to such assumption of servicing obligations.

	 	(d)	 	If the servicer of the Mortgage Loans is the Seller, upon the occurrence of an
Event of Default, the Buyer shall have the right to terminate the Seller as servicer of
the Mortgage Loans and transfer servicing to the Buyer’s designated Servicer, at no
cost or expense to the Buyer, at any time thereafter. If the Servicer of the Mortgage
Loans is not the Seller, the Buyer shall have the right, as contemplated in the
applicable Servicer Notice, upon the occurrence of an Event of Default, to terminate
any applicable Servicing Agreement and transfer servicing to the Buyer’s designated
Servicer, at no cost or expense to the Buyer, it being agreed that the Seller will pay
any and all fees required to terminate such Servicing Agreement and to effectuate the
transfer of servicing to the Buyer’s designated Servicer, as well as any servicing fees
and expenses payable to such Servicer.

	 	(e)	 	After the Purchase Date, until the repurchase of any Mortgage Loan, the Seller
will have no right to modify or alter the terms of such Mortgage Loan and the Seller
will have no obligation or right to repossess such Mortgage Loan or substitute another
Mortgage Loan, in each case except as provided in the Custodial and Disbursement
Agreement.

	 	(f)	 	In the event the Seller or its Affiliate is servicing the Mortgage Loans, the
Seller shall permit the Buyer to inspect the Seller’s or its Affiliate’s servicing
facilities, as the case may be, for the purpose of satisfying the Buyer that the Seller
or its Affiliate, as the case may be, has the ability to service the Mortgage Loans as
provided in this Agreement.

	25.	 	INTENT

	 	(a)	 	The parties 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 (except insofar as the type of Purchased Assets subject to such Transaction or
the term of such Transaction would render such definition inapplicable), and a
“securities contract” as that term is defined in Section 741 of Title 11 of the
United States Code, as amended (except insofar as the type of Purchased Assets subject
to such Transaction would render such definition inapplicable).

	 	(b)	 	It is understood that either party’s right to liquidate Purchased Assets
delivered to it in connection with Transactions hereunder or to exercise any other
remedies pursuant to Section 16 hereof is a contractual right to liquidate such
Transaction as described in Sections 555 and 559 of Title 11 of the United States Code,
as amended.

	 	(c)	 	The parties agree and acknowledge that if a party hereto is an “insured
depository institution,” as such term is defined in the Federal Deposit Insurance
Act, as amended (“FDIA”), then each Transaction hereunder is a “qualified
financial contract,” as that term is defined in FDIA and any rules, orders or
policy statements thereunder (except insofar as the type of Purchased Assets subject to
such Transaction would render such definition inapplicable).

	 	(d)	 	It is understood that this Agreement constitutes a “netting contract”
as defined in and subject to Title IV of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment
obligation under any Transaction hereunder shall constitute a “covered contractual
payment entitlement” or “covered contractual payment obligation”,
respectively, as defined in and subject to FDICIA (except insofar as one or both of the
parties is not a “financial institution” as that term is defined in FDICIA or
regulations promulgated thereunder).

	26.	 	BUYER’S REPRESENTATIONS

The Buyer represents and warrants to the Seller that as of the Effective Date and as of the
Repurchase Date for the repurchase of any Purchased Assets by the Seller from the Buyer hereunder:

	 	(a)	 	Action. The Buyer has all necessary corporate or other power,
authority and legal right to execute, deliver and perform its obligations under each of
the Repurchase Documents to which it is a party; the execution, delivery and
performance by the Buyer of each of the Repurchase Documents to which it is a party
have been duly authorized by all necessary corporate or other action on its part; and
each Repurchase Document to which it is a party has been duly and validly executed and
delivered by the Buyer, and constitutes a legal, valid and binding obligation of the
Buyer, enforceable against the Buyer, in accordance with its terms.

	 	(b)	 	Approvals. No authorizations, approvals or consents of, and no filings
or registrations with, any Governmental Authority or any securities exchange are
necessary for the execution, delivery or performance by the Buyer of the Repurchase
Documents to which it is a party or for the legality, validity or enforceability
thereof, except for filings and recordings in respect of the Liens created pursuant to
the Repurchase Documents.

	 	(c)	 	No Breach. Neither (a) the execution and delivery of the Repurchase
Documents nor (b) the consummation of the transactions therein contemplated to be
entered into by the Buyer in compliance with the terms and provisions thereof will
conflict with or result in a breach of the organizational documents of the Buyer, or
any applicable law, rule or regulation, or any order, writ, injunction or decree of any
Governmental Authority or other material agreement or instrument to which the Buyer or
any of its Subsidiaries is a party or by which the Buyer or any of its Property is
bound or to which the Buyer is subject, or constitute a default under any such material
agreement or instrument or result in the creation or imposition of any Lien upon any
Property of the Buyer, or any of its respective Subsidiaries pursuant to the terms of
any such agreement or instrument.

	 	(d)	 	Purchased Assets. Immediately prior to the repurchase of any Purchased
Assets by the Seller, the Buyer was the sole owner of such Purchased Assets and had
good and marketable title thereto, free and clear of all Liens, in each case except for
Liens to be released simultaneously with the repurchase by the Seller hereunder.

	27.	 	NETTING

If the Buyer and the Seller are “financial institutions” as now or hereinafter defined in
Section 4402 of Title 12 of the United States Code (“Section 4402”) and any rules or
regulations promulgated thereunder,

	 	(a)	 	All amounts to be paid or advanced by one party to or on behalf of the other
under this Agreement or any Transaction hereunder shall be deemed to be “payment
obligations” and all amounts to be received by or on behalf of one party from the other
under this Agreement or any Transaction hereunder shall be deemed to be “payment
entitlements” within the meaning of Section 4402, and this Agreement shall be deemed to
be a “netting contract” as defined in Section 4402.

	 	(b)	 	The payment obligations and the payment entitlements of the parties hereto
pursuant to this Agreement and any Transaction hereunder shall be netted as follows.
In the event that either party (the “Defaulting Party”) shall fail to honor any
payment obligation under this Agreement or any Transaction hereunder, the other party
(the “Nondefaulting Party”) shall be entitled to reduce the amount of any
payment to be made by the Nondefaulting Party to the Defaulting Party by the amount of
the payment obligation that the Defaulting Party failed to honor.

	28.	 	PERIODIC DUE DILIGENCE REVIEW

The Seller acknowledges that the Buyer has the right to perform continuing due diligence
reviews with respect to the Mortgage Loans, for purposes of verifying compliance with the
representations, warranties and specifications made hereunder, or otherwise, and the Seller
agrees that upon reasonable (but no less than one (1) Business Day’s) prior notice unless an
Event of Default shall have occurred, in which case no notice is required, to the Seller,
the Buyer or its authorized representatives will be permitted during normal business hours
to examine, inspect, and make copies and extracts of, the Mortgage Files and any and all
documents, records, agreements, instruments or information relating to such Mortgage Loans
in the possession or under the control of the Seller and/or the Custodian. The Seller also
shall make available to the Buyer a knowledgeable financial or accounting officer for the
purpose of answering questions respecting the Mortgage Files and the Mortgage Loans.
Without limiting the generality of the foregoing, the Seller acknowledges that the Buyer may
purchase Mortgage Loans from the Seller based solely upon the information provided by the
Seller to the Buyer in the Seller Asset Schedule and the representations, warranties and
covenants contained herein, and that the Buyer, at its option, has the right at any time to
conduct a partial or complete due diligence review on some or all of the Mortgage Loans
purchased in a Transaction, including without limitation ordering new credit reports and new
appraisals on the related Mortgaged Properties and otherwise re-generating the information
used to originate such Mortgage Loan. The Buyer may underwrite such Mortgage Loans itself
or engage a mutually agreed upon third party underwriter to perform such underwriting. The
Seller agrees to cooperate with the Buyer and any third party underwriter in connection with
such underwriting, including, but not limited to, providing the Buyer and any third party
underwriter with access to any and all documents, records, agreements, instruments or
information relating to such Mortgage Loans in the possession, or under the control, of the
Seller. The Buyer shall pay all out-of-pocket costs and expenses incurred by the Buyer in
connection with the Buyer’s activities pursuant to this Section 28 (“Due Diligence
Costs”); provided that, (i) in the event that a Default or an Event of Default shall
have occurred or (ii) in the event that the Buyer shall determine the need to confirm
compliance with local, state or federal laws concerning the regulation of predatory lending
practices, the Seller shall reimburse the Buyer for all Due Diligence Costs for any and all
reasonable out-of-pocket costs and expenses incurred by the Buyer in connection with the
Buyer’s activities pursuant to this Section 28; provided further, that the Buyer shall not
be obligated to pay such costs and expenses in any 12-month period in excess of $50,000
unless an Event of Default shall have occurred.

	29.	 	BUYER’S APPOINTMENT AS ATTORNEY-IN-FACT

	 	(a)	 	Each of NCCC, NCAH, NCMC, New Century and Home123 hereby irrevocably
constitutes and appoints the Buyer and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power and
authority in the place and stead of the Seller and in the name of the Seller or in its
own name, from time to time in the Buyer’s discretion, for the purpose of carrying out
the terms of this Agreement, to take any and all appropriate action and to execute any
and all documents and instruments which may be reasonably necessary or desirable to
accomplish the purposes of this Agreement, and, without limiting the generality of the
foregoing, the Seller hereby gives the Buyer the power and right, on behalf of the
Seller, without assent by, but with notice to, the Seller, to do the following:

	 	(1)	 	in the name of the Seller, or in its own name, or otherwise, to
take possession of and endorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due under any
mortgage insurance with respect to a Purchased Item or with respect to any
other Purchased Items and to file any claim or to take any other action or
proceeding in any court of law or equity or otherwise deemed appropriate by the
Buyer for the purpose of collecting any and all such moneys due under any such
mortgage insurance with respect to a Purchased Item or with respect to any
other Purchased Items whenever payable;

	 	(2)	 	to pay or discharge taxes and Liens levied or placed on or
threatened against the Purchased Items;

	 	(3)	 	(A) to direct any party liable for any payment under any
Purchased Items to make payment of any and all moneys due or to become due
thereunder directly to the Buyer or as the Buyer shall direct; (B) to ask or
demand for, collect, receive payment of and receipt for, any and all moneys,
claims and other amounts due or to become due at any time in respect of or
arising out of any Purchased Items; (C) to sign and endorse any invoices,
assignments, verifications, notices and other documents in connection with any
Purchased Items; (D) to commence and prosecute any suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to
collect the Purchased Items or any proceeds thereof and to enforce any other
right in respect of any Purchased Items; (E) to defend any suit, action or
proceeding brought against the Seller with respect to any Purchased Items; (F)
to settle, compromise or adjust any suit, action or proceeding described in
clause (E) above and, in connection therewith, to give such discharges or
releases as the Buyer may deem appropriate; and (G) generally, to sell,
transfer, pledge and make any agreement with respect to or otherwise deal with
any Purchased Items as fully and completely as though the Buyer were the
absolute owner thereof for all purposes, and to do, at the Buyer’s option and
the Seller’s expense, at any time, and from time to time, all acts and things
which the Buyer deems necessary to protect, preserve or realize upon the
Purchased Items and the Buyer’s Liens thereon and to effect the intent of this
Agreement, all as fully and effectively as such the Seller might do;

	 	(4)	 	after a Default or an Event of Default, to direct the actions
of the Custodian with respect to the Purchased Items under the Custodial and
Disbursement Agreement; and

	 	(5)	 	to execute, from time to time, in connection with any sale
provided for in Section 13, any endorsements, assignments or other instruments
of conveyance or transfer with respect to the Purchased Items.

Each of NCCC, NCAH, NCMC, New Century and Home123 hereby ratifies all that said attorneys
shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power
coupled with an interest and shall be irrevocable. Until the occurrence of a Default or
Event of Default, the Buyer shall not direct a Servicer in its servicing of the Purchased
Assets or commence any servicing actions with respect to the Mortgage Loans pursuant to this
Section 29(a). Neither the Buyer nor any of its officers, directors, employers or agents
shall be responsible to the Seller for any failure to act hereunder prior to a Default or
Event of Default.

	 	(b)	 	The powers conferred on the Buyer hereunder are solely to protect the Buyer’s
interests in the Purchased Items and Purchased Assets and shall not impose any duty
upon it to exercise any such powers. The Buyer shall be accountable only for amounts
that it actually receives as a result of the exercise of such powers, and neither it
nor any of its officers, directors, employees or agents shall be responsible to the
Seller for any act or failure to act hereunder, except for its or their own gross
negligence or willful misconduct.

	30.	 	MISCELLANEOUS

	 	(a)	 	If there is any conflict between the terms of this Agreement or any Transaction
entered into hereunder and the Custodial and Disbursement Agreement, this Agreement
shall prevail.

	 	(b)	 	This Agreement may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument, and any of the parties
hereto may execute this Agreement by signing any such counterpart.

	 	(c)	 	The captions and headings appearing herein are included solely for convenience
of reference and are not intended to affect the interpretation of any provision of this
Agreement.

	 	(d)	 	Each of NCCC, NCAH, NCMC, New Century and Home123 hereby acknowledges that:

	 	(1)	 	it has been advised by counsel in the negotiation, execution
and delivery of this Agreement and the other Repurchase Documents;

	 	(2)	 	the Buyer has no fiduciary relationship to the Seller; and

	 	(3)	 	no joint venture exists between the Buyer and the Seller.

	31.	 	CONFIDENTIALITY

Each of the Seller and the Buyer hereby acknowledges and agrees that all information
regarding the terms set forth in any of the Repurchase Documents or the Transactions
contemplated thereby (the “Confidential Terms”) shall be kept confidential and shall
not be divulged to any party without the prior written consent of such other party except to
the extent that (i) it is necessary to do so in working with legal counsel, auditors, taxing
authorities or other governmental agencies or regulatory bodies or in order to comply with
any applicable federal or state laws, (ii) any of the Confidential Terms are in the public
domain other than due to a breach of this covenant, (iii) in the event of a Default or an
Event of Default, the Buyer determines such information to be necessary or desirable to
disclose in connection with the re-hypothecation or marketing and sales of the Purchased
Assets or to enforce or exercise the Buyer’s rights hereunder. The provisions set forth in
this Section 31 shall survive the termination of this Agreement for a period of one year
following such termination. Notwithstanding the foregoing or anything to the contrary
contained herein or in any other Repurchase Document, the parties hereto may disclose to any
and all Persons, without limitation of any kind, the federal income tax treatment of the
Transactions, any fact relevant to understanding the federal tax treatment of the
Transactions, and all materials of any kind (including opinions or other tax analyses)
relating to such federal income tax treatment; provided that the Seller may not disclose the
name of or identifying information with respect to the Buyer or any pricing terms
(including, without limitation, the Pricing Spread, Purchase Percentage and Purchase Price)
or other nonpublic business or financial information (including any sublimits and financial
covenants) that is unrelated to the purported or claimed federal income tax treatment of the
Transactions and is not relevant to understanding the purported or claimed federal income
tax treatment of the Transactions, without the prior written consent of the Buyer. The
Buyer acknowledges that this Agreement will be filed with the SEC.

	32.	 	CONFLICTS

In the event of any conflict among the terms of this Agreement, any other Repurchase
Document and any Confirmation, the documents shall control in the following order of
priority: first, the terms of the Confirmation shall prevail, then the terms of
this Agreement shall prevail, and then the terms of the other Repurchase Documents shall
prevail.

	33.	 	SET-OFF

In addition to any rights and remedies of the Buyer provided by this Agreement and by law,
the Buyer shall have the right, without prior notice to the Seller, any such notice being
expressly waived by the Seller to the extent permitted by applicable law, upon any amount
becoming due and payable by the Seller to the Buyer hereunder or otherwise (whether at the
stated maturity, by acceleration or otherwise) to set-off and appropriate and apply against
such amount any and all monies and other property of the Seller, any and all deposits
(general or special, time or demand, provisional or final), in any currency, and any and all
other credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, and in each case at any time held or
owing by the Buyer or any Affiliate thereof to or for the credit or the account of the
Seller. The Buyer agrees promptly to notify the Seller after any such set-off and
application made by the Buyer; provided that the failure to give such notice shall not
affect the validity of such set-off and application.

	34.	 	OBLIGATIONS JOINT AND SEVERAL

	 	(a)	 	Each of NCCC, NCAH, NCMC, New Century and Home123 hereby acknowledges and
agrees that it shall be jointly and severally liable to the Buyer for all
representations, warranties, covenants, obligations and indemnities of the Seller
hereunder.

	 	(b)	 	Each Seller waives any and all notice of the creation, renewal, extension or
accrual of any of the Repurchase Obligations and notice of or proof of reliance by the
Buyer upon the obligations of such Seller set forth herein or acceptance of such
obligations by such Seller hereunder. Each Seller waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon each other
Seller with respect to the Repurchase Obligations. Each Seller’s obligations shall be
construed as continuing, absolute and unconditional obligations without regard to (i)
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 (ii) any other circumstance whatsoever (with or without notice to or knowledge of
any Seller) which constitutes, or might be construed to constitute, an equitable or
legal discharge of such Seller for the Repurchase Obligations. Each Seller hereby
waives any defense arising by reason of, and any and all right to assert against the
Buyer any claim or defense based upon, an election of remedies by the Buyer which in
any manner impairs, affects, reduces, releases, destroys and/or extinguishes such
Seller’s subrogation rights, rights to proceed against such Seller or any other party
for reimbursement or contribution, and/or any other rights of such Seller to proceed
against any other Seller, against any other guarantor, or against any other person or
security.

	 	(c)	 	The parties intend that each of NCCC’s, NCAH’s, NCMC’s, New Century’s and Home
123’s Repurchase Obligations are primary obligations and not in the nature of a
guaranty or suretyship.

[SIGNATURE PAGE FOLLOWS]

1

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date set
forth above.

BUYER:

IXIS REAL ESTATE CAPITAL INC.

By: /s/ Anthony Malanga

Name: Anthony Malanga

Title: Managing Director

By: /s/ Christopher Hayden

Name: Christopher Hayden

Title: Managing Director

	 
	 

	Address for Notices:

	9 West 57th Street

New York, NY 10019

Attn: Ray Sullivan

Telecopier No.: (212) 891-3347

Telephone No.: (212) 891-5815

Email: r.sullivan@ixiscm.com

	 

	 

	with a copy to:

	9 West 57th Street

New York, NY 10019

Attn: Al Zakes, Esq., General Counsel

Telecopier No.: (212) 891-1922

Telephone No.: (212) 891-6137

Email: albert.zakes@ixiscm.com

	 

	and with a copy to:

	9 West 57th Street

New York, NY 10019

Attn: Michael Friedman

Telecopier No.: (212) 891-6143

Telephone No.: (212) 891-6261

Email: m.friedman@ixiscm.com

	 

SELLER:

NEW CENTURY MORTGAGE CORPORATION

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: President

Address for Notices:

18400 Von Karman, Suite 1000

Irvine, California 92612

Attn: General Counsel

Telecopier No.: (949) 440-7033

Telephone No: (949) 225-7808

NC CAPITAL CORPORATION

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: President

Address for Notices:

18400 Von Karman, Suite 1000

Irvine, California 92612

Attn: General Counsel

Telecopier No.: (949) 440-7033

Telephone No: (949) 225-7808

NC ASSET HOLDING, L.P.

By: NC DELTEX, its general partner

By: NC CAPITAL CORPORATION, its sole member

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: President

Address for Notices:

18400 Von Karman, Suite 1000

Irvine, California 92612

Attn: General Counsel

Telecopier No.: (949) 440-7033

Telephone No: (949) 225-7808

NEW CENTURY CREDIT CORPORATION

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: President

Address for Notices:

18400 Von Karman, Suite 1000

Irvine, California 92612

Attn: General Counsel

Telecopier No.: (949) 440-7033

Telephone No: (949) 225-7808

HOME123 CORPORATION

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: Executive Vice President

Address for Notices:

18400 Von Karman, Suite 1000

Irvine, California 92612

Attn: General Counsel

Telecopier No.: (949) 440-7033

Telephone No: (949) 225-7808

The undersigned guarantor hereby (a) consents and agrees to the foregoing Fifth Amended and
Restated Master Repurchase Agreement, dated as of November 10, 2006 (the “Repurchase
Agreement”), and (b) acknowledges that the terms of the Repurchase Agreement shall be covered
by the Guaranty, as defined therein:

NEW CENTURY FINANCIAL CORPORATION

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: Executive Vice President

By: /s/ Brad A. Morrice

Name: Brad A. Morrice

Title: President and CEO

2EX-10.2

EXHIBIT 10.2

AMENDED AND RESTATED GUARANTEE

AMENDED AND RESTATED GUARANTEE, dated as of November 10, 2006, made by New Century Financial
Corporation (the “Guarantor”), on behalf of New Century Mortgage Corporation, (“NCMC”), NC
Capital Corporation (“NCCC”), NC Asset Holding, L.P. (“NCAH”), New Century Credit Corporation (“New
Century”), Home123 Corporation (“Home123” and, together with NCMC, NCCC, NCAH and New Century, the
“Sellers”), in favor of IXIS Real Estate Capital Inc. (“IXIS”), a party to the Repurchase
Agreement and the Custodial Agreement, each referred to below.

RECITALS

The Guarantor made a Guarantee on behalf of NCMC, NCCC, NCAH and New Century in favor of IXIS,
dated as of September 29, 2004 (as amended from time to time, the “Existing Guarantee” and, as
amended by this Amended and Restated Guarantee, the “Guarantee”).

Pursuant to that certain Fifth Amended and Restated Master Repurchase Agreement, dated as of
November 10, 2006 (as amended, supplemented or otherwise modified from time to time, the
“Repurchase Agreement”), between IXIS and the Sellers, the Sellers have agreed to sell,
from time to time, to IXIS certain mortgage loans (the “Mortgage Loans”) as whole loans
upon the terms and subject to the conditions set forth therein. The Guarantor owns directly and
indirectly all interests in the Sellers. Pursuant to the terms of that certain Amended and
Restated Custodial and Disbursement Agreement, dated as of November 10, 2006 (the “Custodial
Agreement”, and collectively with the Repurchase Agreement, the “Agreements”), Deutsche
Bank National Trust Company (the “Custodian”) is required to take possession of the
Mortgages and the Mortgage Notes, along with certain other documents specified in the Agreements,
as the Custodian of IXIS and any future purchaser, on several delivery dates, in accordance with
the terms and conditions of the Custodial Agreement. It is a condition precedent to the obligation
of IXIS to purchase the Mortgage Loans under the Repurchase Agreement that the Guarantor shall have
executed and delivered this Guarantee with respect to any and all prior and future representations,
warranties, covenants and other obligations (collectively, the “Obligations”) of the
Sellers with respect to IXIS under each of the Repurchase Agreement and the Custodial Agreement.

NOW, THEREFORE, in consideration of the premises and to induce IXIS to enter into the
Repurchase Agreement and the Custodial Agreement, the Guarantor hereby agrees, for the benefit of
IXIS, as follows:

1. Defined Terms.

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

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

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

2. Guarantee.

(a) The Guarantor hereby, unconditionally and irrevocably, guarantees, for the benefit of IXIS
and its successors, indorsees, transferees and assigns, the prompt and complete payment and
performance by the Sellers when such payment is due or performance required in accordance with the
Obligations.

(b) Anything herein to the contrary notwithstanding, the maximum liability of the Guarantor
hereunder shall in no event exceed the amount which can be guaranteed by the Guarantor under
applicable federal and state laws relating to the insolvency of the debtors.

(c) The Guarantor further agrees to pay any and all expenses (including, without limitation,
all fees and disbursements of counsel) which may be paid or incurred by IXIS in enforcing, or
obtaining advice of counsel in respect of, 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 Guarantee. This Guarantee shall remain in full force and effect until the Obligations
are performed and/or paid in full and the Agreements are terminated, notwithstanding that from time
to time prior thereto the Sellers may be free from any Obligations.

(d) No actions or payments made by the Sellers, the Guarantor, any other guarantor or any
other Person or received or collected by IXIS from the Sellers, 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 hereunder until the Obligations are paid in full
and the Agreements are terminated.

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

3. Right of Set-off. The Guarantor hereby irrevocably authorizes IXIS 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 IXIS to or for the credit or the account of the Guarantor,
or any part thereof in such amounts as IXIS may elect, against and on account of the obligations
and liabilities of the Guarantor to IXIS hereunder and claims of every nature and description of
IXIS against the Guarantor, in any currency, whether arising hereunder, or otherwise, as IXIS may
elect, whether or not IXIS has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. IXIS shall notify the Guarantor promptly of
any such set-off and the application made by IXIS, provided that the failure to give such
notice shall not affect the validity of such set-off and application. The rights of IXIS under
this Section are in addition to other rights and remedies (including, without limitation, other
rights of set-off) which IXIS may otherwise have.

4. No Subrogation. Notwithstanding any payment or payments made by the Guarantor
hereunder or any set off or application of funds of the Guarantor by IXIS, the Guarantor shall not
be entitled to be subrogated to any of the rights of IXIS against the Sellers or any other
guarantor or any collateral security or guarantee or right of offset held by IXIS 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 any payments made by the
Guarantor hereunder, until all amounts owing to IXIS are paid in full and the Agreements are
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 IXIS segregated from other funds of the Guarantor, and shall, forthwith
upon receipt by the Guarantor, be turned over to IXIS, in the exact form received by the Guarantor
(duly indorsed by the Guarantor to IXIS, if required), to be applied against the Obligations,
whether matured or unmatured, in such order as IXIS may determine.

5. Amendments, etc. with respect to the Obligations; Waiver of Rights. 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 repurchase
or other performance or payment under any of the Obligations made by IXIS may be rescinded by such
party 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 IXIS, and the
Agreements and any other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as IXIS may deem advisable from time to
time, and any collateral security, guarantee or right of offset at any time held by IXIS for the
payment of the Obligations may be sold, exchanged, waived, surrendered or released. IXIS shall
have no obligation to protect, secure, perfect or insure any lien at any time held by it as
security for the Obligations or for this Guarantee or any property subject thereto. When making
any demand hereunder against the Guarantor, IXIS may, but shall be under no obligation to, make a
similar demand on the Sellers or any other guarantor, and any failure by IXIS to make any such
demand or to collect any payments from the Sellers or any such other guarantor or any release of
the Sellers 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 IXIS against the Guarantor. For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings.

6. Guarantee Absolute and Unconditional. 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 IXIS upon this Guarantee or acceptance of this Guarantee, and any creation, renewal
extension or accrual of any of the Obligations, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Guarantee;
and all dealings between the Sellers and the Guarantor, on the one hand, and IXIS and the Sellers,
on the other hand, likewise shall be conclusively presumed to have been had or consummated in
reliance upon this Guarantee. 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. The Guarantor understands and agrees that this Guarantee shall be construed as a
continuing, absolute and unconditional guarantee of payment and not of collection without regard to
(a) the validity, regularity or enforceability of the Repurchase Agreement, the Custodial
Agreement, or any other document, 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 IXIS,
(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 the Sellers against IXIS, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the Sellers 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 under this Guarantee, in bankruptcy or in any
other instance. When pursuing its rights and remedies hereunder against the Guarantor, IXIS 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 against any collateral security or guarantee for the Obligations or
any right of offset with respect thereto and any failure by IXIS 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 the Sellers 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 IXIS against
the Guarantor. This Guarantee shall remain in full force and effect and be binding in accordance
with and to the extent of its terms upon the Guarantor and the successors and assigns thereof, and
shall inure to the benefit of IXIS, and its respective successors, indorsees, transferees and
assigns, until all the Obligations and the obligations of the Guarantor under this Guarantee shall
have been satisfied by complete performance and payment in full and the Agreements shall be
terminated, notwithstanding that from time to time during the term of the Agreements, the Guarantor
may be free from any Obligations.

7. Reinstatement. This Guarantee shall continue to be effective, or be reinstated, as
the case may be, if at any time payment and/or performance, or any part thereof, of any of the
Obligations is rescinded or must otherwise be restored or returned by IXIS upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Sellers 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, the Sellers or the Guarantor or any substantial part of their respective property, or
otherwise, all as though such payments had not been made.

8. Payments. The Guarantor hereby guarantees that payments hereunder will be paid to
IXIS without set-off or counterclaim in U.S. Dollars at the office of IXIS as specified in Section
8 of the Repurchase Agreement.

9. Representations and Warranties. The Guarantor hereby represents and warrants that:

(a) it is duly organized, validly existing and in good standing under the laws of the state of
Maryland and has the corporate power and authority and the legal right to own and operate its
property, to lease the property it operates as lessee and to conduct the business in which it is
currently engaged;

(b) it has the corporate power and authority and the legal right to execute and deliver, and
to perform its obligations under, this Guarantee, and has taken all necessary corporate action to
authorize its execution, delivery and performance of this Guarantee;

(c) this Guarantee has been duly executed and delivered on behalf of the Guarantor, and
constitutes a legal, valid and binding obligation of the Guarantor enforceable in accordance with
its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally, general
equitable principles (whether considered in a proceeding in equity or at law) and an implied
covenant of good faith and fair dealing;

(d) neither the execution and delivery of this Guarantee, nor the fulfillment of or compliance
with the terms and conditions of this Guarantee, will conflict with or result in a breach of any of
the terms, conditions or provisions of the Guarantor’s charter or by-laws or any legal restriction
or any agreement or instrument to which the Guarantor is now a party or by which it is bound, or
constitute a default or result in an acceleration under any of the foregoing, or result in the
violation of any law, rule, regulation, order, judgment or decree to which the Guarantor or its
property is subject;

(e) no consent or authorization of, filing with, notice to, or other act by or in respect of,
any governmental authority or any other Person (including, without limitation, any stockholder or
creditor of the Guarantor) is required in connection with the execution, delivery, performance,
validity or enforceability of this Guarantee;

(f) there are no actions, suits, arbitrations, investigations (including, without limitation,
any of the foregoing which are pending or threatened) or other legal or arbitrable proceedings
affecting the Guarantor or any of its subsidiaries or affecting any of its properties before any
governmental authority which (i) questions or challenges the validity or enforceability of the
Agreements or any action to be taken in connection with the transactions contemplated thereby, (ii)
makes a claim or claims in an aggregate amount greater than $5,000,000, or (iii) individually or in
the aggregate, if adversely determined, could reasonably be likely to have a Material Adverse
Effect (as defined in the Repurchase Agreement).

(g) it has good record and marketable title in fee simple to, or a valid leasehold interest
in, all its real property, and good title to, or a valid leasehold interest in, all its other
property, and none of such property is subject to any lien of any nature whatsoever except such as
are disclosed in the balance sheet referred to in Section 9(h) hereof;

(h) it has filed or caused to be filed all tax returns which, to its knowledge, are required
to be filed and has paid all taxes shown to be due and payable on said returns or on any
assessments made against it or any of its property and all other taxes, fees or other charges
imposed on it or any of its property by any governmental authority (other than any amount the
validity of which is currently being contested in good faith by appropriate proceedings and with
respect to which reserves in conformity with GAAP have been provided on the books of the
Guarantor); no tax lien has been filed, and, to the knowledge of the Guarantor, no claim is being
asserted, with respect to any such tax, fee or other charge; and

(i) it has heretofore furnished to IXIS a copy of (a) its consolidated balance sheet for the
most recently ended fiscal year (the “Last Fiscal Year”), and the related consolidated statements
of income and retained earnings and of cash flows for the Guarantor and its consolidated
subsidiaries for such fiscal year, each audited by and accompanied by an opinion thereon of KPMG
LLP, which opinion shall not be qualified as to scope of audit or going concern and shall state
that said consolidated financial statements fairly present the consolidated financial condition and
results of operations of the Gurantor and its consolidated subsidiaries as of the end of, and for,
such fiscal year in accordance with GAAP and (b) its consolidated balance sheet and the
consolidated balance sheets of its consolidated subsidiaries for the quarterly fiscal periods of
the Guarantor since the Last Fiscal Year and the related consolidated statements of income and
retained earnings and of cash flows for the Seller and its consolidated Subsidiaries for such
quarterly fiscal period, setting forth in each case in comparative form the figures for the
previous year. All such financial statements are complete and correct and fairly present, in all
material respects, the consolidated financial position of the Guarantor and its subsidiaries and
the consolidated results of their operations as of such dates and for such fiscal periods, all in
accordance with GAAP applied on a consistent basis. Since the date of the most recently such
delivered balance sheet, there has been no material adverse change in the consolidated business,
operations or financial condition of the Guarantor and its consolidated subsidiaries taken as a
whole from that set forth in said financial statements.

10. Notices. All notices, requests and demands which are required or permitted to be
given under this Guarantee shall be in writing (or by telex, fax or similar electronic transfer
confirmed in writing) and shall be deemed to have been duly given or made (1) when delivered by
hand or (2) if given by mail, when deposited in the mail by certified mail, return receipt
requested, or (3) if by telex, fax or similar electronic transfer, when sent and receipt has been
confirmed, addressed as follows:

(a) if to IXIS or to the Sellers, at their respective addresses or transmission numbers for
notices provided in Section 17 of the Repurchase Agreement; and

(b) if to the Guarantor, at its address or transmission number for notices set forth under its
signature below.

IXIS, the Sellers and the Guarantor may change its address and transmission numbers for
notices by notice in the manner provided in this Section.

11. Severability. Any provision of this Guarantee 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.

12. Integration. This Guarantee represents the agreement of the Guarantor with
respect to the subject matter hereof.

13. Amendments in Writing; No Waiver; Cumulative Remedies.

(a) None of the terms or provisions of this Guarantee may be waived, amended, supplemented or
otherwise modified except by a written instrument executed by the Guarantor, the Sellers and IXIS.

(b) IXIS shall not by any act, delay, indulgence, omission or otherwise be deemed to have
waived any right or remedy hereunder or to have acquiesced in any breach of any of the terms and
conditions hereof. No failure to exercise, nor any delay in exercising, on the part of IXIS, 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 IXIS of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which
IXIS would otherwise have on any future occasion.

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.

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

15. Successors and Assigns. This Guarantee shall be binding upon the successors and
assigns of the Guarantor and shall inure to the benefit of IXIS and its successors and assigns.
This Guarantee may not be assigned by the Guarantor without the prior written consent of IXIS,
which consent shall be at IXIS’s sole discretion. This Guarantee may be assigned by IXIS without
the consent of the Guarantor to any assignee of the Repurchase Agreement.

16. GOVERNING LAW. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPALS.

17. 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
GUARANTEE AND THE AGREEMENTS, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT
THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, 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 IXIS
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.

(e) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTEE, THE
AGREEMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

(f) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR
RECOVER IN ANY LEGAL ACTION OR PROCEEDING REFERRED TO IN THIS SECTION ANY SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES.

18. Acknowledgments. The Guarantor hereby acknowledges that:

(a) it has been advised by counsel in the negotiation, execution and delivery of this
Guarantee;

(b) IXIS does not have any fiduciary relationship with or duty to the Guarantor arising out of
or in connection with this Guarantee, and the relationship between the Guarantor, the Sellers and
IXIS; and

(c) no joint venture is created hereby or otherwise exists by virtue of the transactions
contemplated hereby among the Guarantor, the Sellers and IXIS.

19. WAIVER OF JURY TRIAL. THE GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE OR ANY OTHER DOCUMENT
RELATING HERETO OR THE MORTGAGE LOANS AND FOR ANY COUNTERCLAIM THEREIN.

1

IN WITNESS WHEREOF, the undersigned has caused this Guarantee to be duly executed and
delivered by its duly authorized officer as of the day and year first above written.

NEW CENTURY FINANCIAL CORPORATION

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: Executive Vice President

By: /s/ Brad A. Morrice

Name: Brad A. MOrrice

Title: President and CEO

	 	 	 
	Address for Notices:

	 	

	 
	 	 
	18400 Von Karman, Suite 1000

	 
	 	 
	Irvine, CA 92612

Telex:

	 	

(949) 225-7808

Fax: (949) 440-7033

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