Document:

EX-10.1(a)

Exhibit 10.1(a)

EXECUTION VERSION

AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

CREDIT SUISSE, NEW YORK BRANCH, as administrative agent (“Administrative Agent”)

FIELDSTONE INVESTMENT CORPORATION, as seller (“Seller”),

FIELDSTONE MORTGAGE COMPANY, as seller (“Seller”) and

THE SEVERAL GROUP AGENTS, CONDUIT BUYERS AND COMMITTED BUYERS PARTY HERETO FROM TIME TO TIME

Dated November 14, 2006

1

TABLE OF CONTENTS

Page

	1.	 	Applicability

	2.	 	Definitions

	3.	 	Program; Initiation of Transactions

	4.	 	Repurchase

	5.	 	Price Differential.

	6.	 	Margin Maintenance

	7.	 	Income Payments

	8.	 	Security Interest

	9.	 	Payment and Transfer

	10.	 	Conditions Precedent

	11.	 	Program; Costs; Illegality

	12.	 	Servicing

	13.	 	Representations and Warranties

	14.	 	Covenants

	15.	 	Events of Default

	16.	 	Remedies Upon Default

	17.	 	Reports

	18.	 	Repurchase Transactions

	19.	 	Single Agreement

	20.	 	Notices and Other Communications

	21.	 	Entire Agreement; Severability

	22.	 	Non assignability

	23.	 	Set-off

	24.	 	Binding Effect; Governing Law; Jurisdiction

	25.	 	No Waivers, Etc.

	26.	 	Intent

	27.	 	Disclosure Relating to Certain Federal Protections

	28.	 	Power of Attorney

	29.	 	Buyers and Administrative Agent May Act Through Affiliates

	30.	 	Indemnification; Obligations

	31.	 	Counterparts

	32.	 	Confidentiality

	33.	 	Recording of Communications

	34.	 	Actions Requiring Consent

	35.	 	No Proceedings; Waiver of Setoff

	36.	 	Periodic Due Diligence Review

	37.	 	Authorizations

	38.	 	Acknowledgement Of Anti-Predatory Lending Policies

	39.	 	Documents Mutually Drafted

	40.	 	General Interpretive Principles.

	41.	 	The Administrative Agent; The Group Agents

	42.	 	Wire Instructions

	43.	 	Joint and Several

	44.	 	Amendments and Waivers

	 	 	SCHEDULES

	 	 	Schedule 1 — Representations and Warranties with Respect to Purchased Mortgage Loans

	 	 	Schedule 2 – Authorized Representatives

	 	 	Schedule 3 – Buyers

	 	 	EXHIBITS

	 	 	Exhibit A – Form of Transaction Request

	 	 	Exhibit B – Form of Purchase Confirmation

	 	 	Exhibit C – Form of Mortgage Loan Schedule

	 	 	Exhibit D – Form of Officer’s Compliance Certificate

	 	 	Exhibit E – Reserved

	 	 	Exhibit F – Form of Opinion of Sellers’ counsel

	 	 	Exhibit G – Underwriting Guidelines

	 	 	Exhibit H – Officer’s Certificate of the Sellers and Corporate Resolutions of Sellers

	 	 	Exhibit I – Sellers’ Tax Identification Number

	 	 	Exhibit J – Existing Indebtedness

	 	 	Exhibit K — Escrow Instruction Letter

	 	 	Exhibit L – Reserved

	 	 	Exhibit M – Form of Servicer Notice

	 	 	Exhibit N – Commitments

	 	 	Exhibit O – Mortgage Loan Reports

2

PRELIMINARY STATEMENTS

WHEREAS, the parties previously entered into a master repurchase agreement, dated November 8,
2005 (the “Existing Repurchase Agreement”).

WHEREAS, the parties have requested that the Existing Repurchase Agreement be amended and
restated on the terms and conditions set forth herein.

Accordingly, the parties hereby agree, in consideration of the mutual promises and mutual
obligations set forth herein, that the Existing Repurchase Agreement is hereby amended and restated
as set forth herein.

1. Applicability

From time to time the parties hereto may enter into transactions in which a Seller agrees to
transfer to the Administrative Agent for the benefit of the Buyers Mortgage Loans (as hereinafter
defined) against the transfer of funds by the Administrative Agent for the benefit of the Buyers,
and the Administrative Agent on behalf of the Buyers shall be obligated to transfer to such Seller
such Mortgage Loans at a date certain or on demand, against the transfer of funds by such Seller.
This Agreement is a commitment by Committed Buyers to engage in the Transactions as set forth
herein up to their respective Commitments; provided, that the Committed Buyers shall have no
commitment to enter into any Transaction requested which would result in the aggregate Purchase
Price of then outstanding Transactions to exceed the Maximum Committed Purchase Price. No more
than one (1) Transaction shall be made by the Administrative Agent for the benefit of the Buyers on
any Business Day. Each such transaction shall be referred to herein as a “Transaction”
and, unless otherwise agreed in writing, shall be governed by this Agreement, including any
supplemental terms or conditions contained in any annexes identified herein, as applicable
hereunder.

On the date hereof and subject to the conditions to the initial Transaction as set forth in
Section 10(a), the JPM Buying Group shall pay to the Credit Suisse Buying Group an amount equal to
$59,883,365.35 and upon receipt by the Credit Suisse Buying Group of such payment, the JPM Buying
Group shall own fifty percent (50%) of the interests in the outstanding Purchase Price on the date
hereof.  Each member of the Credit Suisse Buying Group represents and warrants that the portion of
the Purchase Price to be sold by it hereunder is owned by it free and clear of any liens, claims or
encumbrances created by it.  The parties acknowledge and agree that this assignment is being made
to effect the allocation of the Purchase Price as of the date hereof among the Buying Groups on a
pro rata basis in accordance with the Buying Group Limits.

2. Definitions

All capitalized terms used herein but not defined shall have the meanings set forth in the
Custodial Agreement. Whenever used in this Agreement, the following words and phrases, unless the
context otherwise requires, shall have the following meanings:

“30/40 Mortgage Loan” means a Mortgage Loan which (a) has an original term to maturity
of not more than thirty years from commencement of amortization, with a balloon payment in year
thirty based upon a forty year amortization schedule and (b) is originated in accordance with the
Underwriting Guidelines.

“Acceptable SPV” means a Person which issues Structured Securities Debt.

“Acceptable State” means any state acceptable pursuant to Sellers’ Underwriting
Guidelines.

“Accepted Servicing Practices” means, with respect to any Mortgage Loan, those
mortgage servicing practices of prudent mortgage lending institutions which service mortgage loans
of the same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is
located.

“Act of Insolvency” means, with respect to any Person or its Affiliates, (i) the
filing of a petition, commencing, or authorizing the commencement of any case or proceeding, or the
voluntary joining 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; (ii) the seeking of the appointment of a receiver,
trustee, custodian or similar official for such party or an Affiliate or any substantial part of
the property of either; (iii) the appointment of a receiver, conservator, or manager for such party
or an Affiliate by any governmental agency or authority having the jurisdiction to do so; (iv) the
making or offering by such party or an Affiliate of a composition with its creditors or a general
assignment for the benefit of creditors; (v) the admission by such party or an Affiliate of such
party 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 party or of any of its Affiliates, or shall have taken any action to displace the management
of such party or of any of its Affiliates or to curtail its authority in the conduct of the
business of such party or of any of its Affiliates.

“Administrative Agent” means Credit Suisse, New York Branch or any affiliate or
successor thereto.

“Administrative Fee” shall have the meaning set forth in the Pricing Side Letter.

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

“Agency” means Freddie Mac, Fannie Mae or GNMA, as applicable.

“Agency Security” means a mortgage-backed security issued by an Agency.

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

“Appraised Value” means 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.

“Asset Tape” means a remittance report on a monthly basis or requested by
Administrative Agent pursuant to Section 17d hereof containing servicing information, including,
without limitation, those fields reasonably requested by Administrative Agent from time to time, on
a loan-by-loan basis and in the aggregate, with respect to the Purchased Mortgage Loans serviced by
Sellers or any Servicer for the month (or any portion thereof) prior to the Reporting Date.

“Asset Value” shall have the meaning set forth in the Pricing Side Letter.

“Assignment of Mortgage” means an assignment of the Mortgage, 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 sale of the Mortgage to the Administrative
Agent for the benefit of the Buyers.

“Available Collections” means, on any date of determination, all Collections, together
with any investment income from funds on deposit in the Collection Account; provided that,
Available Collections shall not include any Collections that have been set aside or removed by the
Servicer solely in payment of the Servicer’s accrued and unpaid servicing fee.

“Bailee Letter” has the meaning assigned to such term in the Custodial Agreement.

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

“Bid” has the meaning set forth in Section 4(c) hereof.

“BPO” means an opinion of the fair market value of a Mortgaged Property given by a
licensed real estate agent or broker which generally includes three comparable sales and three
comparable listings.

“Business Day” means any day other than (a) a Saturday or Sunday; (b) a public or bank
holiday in New York City; and (c) if the applicable Business Day relates to any computation to be
made with respect to LIBOR, any day on which dealings in dollar deposits are carried on in the
London interbank market.

“Buydown Amount” has the meaning set forth in Section 5(c) hereof.

“Buyers” means, at any time, any of the Conduit Buyers and the Committed Buyers.

“Buying Group” means, at any time, a group consisting of one or more Conduit Buyers,
such Conduit Buyer’s related Committed Buyers and the applicable Group Agent.

“Buying Group Limit” means, for any Buying Group at any time, the aggregate amount of
the Commitments of Committed Buyers in such Buying Group at such time.

“Capital Lease Obligations” means, 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 Equivalents” means (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 the Administrative Agent or of
any commercial bank having capital and surplus in excess of $500,000,000, (c) repurchase
obligations of the Administrative Agent or 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 S&P or P-1 or the equivalent
thereof by Moody’s and in either case maturing within 90 days after the day 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 A 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 the Administrative Agent or any commercial bank satisfying the
requirements of clause (b) of this definition or (g) shares of money market mutual or similar funds
which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this
definition.

“Change in Control” means:

(A) any transaction or event as a result of which (i) any Person or Persons own,
beneficially or of record, at least 15% of the outstanding stock of FIC or (ii) FIC
shall cease to own, directly or indirectly, 100% of any of its Subsidiaries; or

(B) the sale, transfer, or other disposition of all or substantially all of a
Seller’s assets (excluding any such action taken in connection with any
securitization transaction in the ordinary course of business) except the sale,
transfer or other disposition of substantially all of FMC’s assets to FIC.

“Code” means the Internal Revenue Code of 1986, as amended.

“Collection Account” means one or more accounts established by the Servicer for the
benefit of Buyers, into which all collections and proceeds on or in respect of the Mortgage Loans
shall be deposited by Servicer.

“Collections” means, with respect to any Mortgage Loan, all cash collections and other
proceeds of such Mortgage Loan and Repurchase Assets with respect thereto.

“Combined Loan to Value Ratio” or “CLTV” means, 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 Appraised Value of the Mortgaged Property as of the origination date.

“Commercial Paper” means the short-term promissory notes of a Conduit Buyer issued by
such Conduit Buyer in the commercial paper market.

“Committed Buyer” means (a) any Person listed as such on Schedule 3 hereto and
(b) any other Person that becomes a party to this Agreement as a “Committed Buyer”
hereunder.

“Commitment” means, at any time with respect to each Committed Buyer, the amount set
forth opposite such Committed Buyer’s name on Exhibit N hereto (as such Exhibit N
may be amended, supplemented or otherwise modified and in effect).

“Conduit Buyer” means (a) any Person listed as such on Schedule 3 hereto and
(b) any other Person that becomes a party to this Agreement as a “Conduit Buyer” hereunder.

“Consolidated Adjusted Tangible Net Worth” means, for the Sellers, the amount that
would, in conformity with GAAP, equal the stockholder’s equity included on the balance sheet of the
Sellers and their Subsidiaries, plus any preferred stock not already included in the calculation of
stockholder’s equity, plus any Indebtedness of the Sellers and their Subsidiaries that is fully
subordinated to any obligations arising under this Repurchase Agreement, plus other comprehensive
loss arising from the FASB 133, minus any intangibles or goodwill (as defined under GAAP), minus
any advances between the Sellers and their Affiliates (other than consolidated subsidiaries or
between FIC and FMC), minus any loans or advances to officers or directors of the Sellers (as
reported under GAAP), minus other comprehensive income arising from FASB 133; provided, however,
that the non-cash effect (gain or loss) of any mark-to-market adjustments impacting stockholder’s
equity for fluctuation of the value of financial instruments as mandated under FASB 133 shall be
excluded from the calculation of Consolidated Adjusted Tangible Net Worth.

“Credit Grade” means, with respect to a Mortgagor, the risk category for such
Mortgagor as determined in accordance with the Underwriting Guidelines.

“Credit Suisse Buying Group” means, at any time, a group consisting of those Persons
listed as such on Schedule 3 hereto and the Credit Suisse Group Agent.

“Credit Suisse Group Agent” means Credit Suisse, New York Branch or any affiliate or
successor thereto.

“Custodial Agreement” means the amended and restated custodial agreement dated as of
the date hereof, among Sellers, Administrative Agent and Custodian as the same may be amended from
time to time.

“Custodial Fee” means the fee payable by the Sellers to the Custodian pursuant to the
Custodial Agreement.

“Custodial Mortgage Loan Schedule” has the meaning assigned to such term in the
Custodial Agreement.

“Custodian” means Wells Fargo Bank, National Association or such other party specified
by Administrative Agent (with the consent of the Group Agents) and agreed to by Sellers, which
approval shall not be unreasonably withheld.

“Defaulted Mortgage Loan” means a Mortgage Loan (i) as to which any scheduled payment,
or part thereof, remains unpaid for sixty (60) days or more from the original scheduled due date
for such payment; (ii) as to which an Act of Insolvency has occurred and is continuing with respect
to the Mortgagor thereof; (iii) as to which the related Mortgagor has failed to pay in full the
first scheduled payment thereunder; (iv) which has been identified by a Seller or the Servicer as
uncollectible; (v) which, consistent with the Underwriting Guidelines and the Accepted Servicing
Practices, has been or should be written off as uncollectible; or (vi) as to which the related
Mortgagor is otherwise in default thereunder; provided that any Mortgage Loan as to which
any scheduled payment remains unpaid in full after the scheduled due date therefor for more than
thirty (30) days, but less than sixty (60) days, shall not constitute a Defaulted Mortgage Loan
unless such Mortgage Loan is otherwise a Defaulted Mortgage Loan for a reason described in clauses
(i)-(v) above.

“Dollars” and “$” means dollars in lawful currency of the United States of
America.

“Due Date” means the day of the month on which the Monthly Payment is due on a
Mortgage Loan, exclusive of any days of grace.

“Effective Date” means the date upon which the conditions precedent set forth in
Section 10 shall have been satisfied.

“Electronic Tracking Agreement” means an amended and restated Electronic Tracking
Agreement among Administrative Agent, Sellers, MERS and MERSCORP, Inc., to the extent applicable as
the same may be amended from time to time.

“Eligible Mortgage Loan” means a Purchased Mortgage Loan which complies with the
representations and warranties set forth on Schedule 1 to this Agreement.

“Eligible Subservicer” means JPMorgan Chase Bank, National Association, or such other
Person as may be approved in writing as a subservicer of Mortgage Loans by the Administrative Agent
(acting at the direction of the Group Agents).

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

“ERISA Affiliate” means 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 a 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 a Seller is a member.

“Escrow Instruction Letter” means the Escrow Instruction Letter from Sellers to the
Settlement Agent, in the form of Exhibit K hereto, as the same may be modified,
supplemented and in effect from time to time.

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

“Event of Default” has the meaning specified in Section 15 hereof.

“Existing Indebtedness” has the meaning specified in Section 13(a)(24) hereof.

“Facility Outstanding Principal” means, at any time, the aggregate outstanding
principal balance of all Mortgage Loans sold to the Administrative Agent for the benefit of the
Buyers by the Sellers.

“Fannie Mae” means Fannie Mae, the government sponsored enterprise formerly known as
the Federal National Mortgage Association.

“FASB 133” means the Statement of Financial Accounting Standards No. 133, or any
successor statement thereto.

“FHA” means the Federal Housing Administration, an agency within the United States
Department of Housing and Urban Development, or any successor thereto, and including the Federal
Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the
FHA Regulations.

“FIC” means Fieldstone Investment Corporation, a Maryland corporation, and its
permitted successors and assigns.

“FICO” means Fair Isaac & Co., or any successor thereto.

“Fidelity Insurance” means insurance coverage with respect to employee errors,
omissions, dishonesty, forgery, theft, disappearance and destruction, robbery and safe burglary,
property (other than money and securities) and computer fraud in an aggregate amount acceptable to
Sellers’ regulators.

“Fitch” means Fitch Ratings, Inc., or any successor thereto.

“Fixed Rate Mortgage Loan” means a Mortgage Loan that bears interest at a single fixed
rate for its entire term.

“Floating Rate Mortgage Loan” means a Mortgage Loan that is not a Fixed Rate Mortgage
Loan.

“FMC” means Fieldstone Mortgage Company, a Maryland corporation, or its permitted
successors and assigns.

“Foreclosed Loan” means a Mortgage Loan, the property securing which has been
foreclosed upon by a Seller.

“Freddie Mac” means the Federal Home Loan Mortgage Corporation or any successor
thereto.

“Full Documentation” means, with respect to a Mortgage Loan, that the related
Mortgagor has provided the highest level of information to the applicable Seller about its assets,
liabilities, income, credit history and employment history, as determined for “full documentation”
in accordance with the Underwriting Guidelines.

“GAAP” means generally accepted accounting principles in effect from time to time in
the United States of America and applied on a consistent basis.

“GNMA” means the Government National Mortgage Association and any successor thereto.

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

“Governmental Authority” means any nation or government, any state or other political
subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory or
administrative functions over any Seller or Buyer, as applicable.

“Gross Margin” means, with respect to each adjustable rate Mortgage Loan, the fixed
percentage amount set forth in the related Mortgage Note.

“Group Agent” means (a) with respect to the Credit Suisse Buying Group, the Credit
Suisse Group Agent; (b) with respect to the JPM Buying Group, the JPM Group Agent and (c) any
Person that becomes a party to the Repurchase Agreement as a “Group Agent” hereunder.

“Guarantee” means, as to any Person, any obligation of such Person directly or
indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the
payment of any Indebtedness of any other Person or otherwise protecting the holder of such
Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities or services, or to take-or-pay 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, to the
extent required by Administrative Agent. 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.

“High Cost Mortgage Loan” means a Mortgage Loan classified as (a) a “high cost” loan
under the Home Ownership and Equity Protection Act of 1994 or (b) a “high cost,” “threshold,”
“covered,” or “predatory” loan under any other applicable state, federal or local law (or a
similarly classified loan using different terminology under a law, regulation or ordinance imposing
heightened regulatory scrutiny or additional legal liability for residential mortgage loans having
high interest rates, points and/or fees).

“Income” means with respect to any Purchased Mortgage Loan at any time until
repurchased by a Seller, any principal received thereon or in respect thereof and all interest,
dividends or other distributions thereon.

“Indebtedness” means, for any Person, such Person’s: (a) obligations for borrowed
money; (b) obligations representing the deferred purchase price of Property other than accounts
payable arising in the ordinary course of such Person’s business on terms customary in the trade;
(c) obligations, whether or not assumed, secured by Liens or payable out of the proceeds or
production from property now or hereafter owned or acquired by such Person; (d) obligations that
are evidenced by notes, acceptances, or other instruments; (e) obligations under repurchase
agreements, sale/buy-back agreements or like arrangements; (f) obligations (contingent or
otherwise) of such Person in respect of letters of credit for the account of such Person; and (g)
Capital Lease Obligations.

“Index” means, with respect to any adjustable rate Mortgage Loan, the index identified
on the Mortgage Loan Schedule and set forth in the related Mortgage Note for the purpose of
calculating the applicable Mortgage Interest Rate.

“Interest Only Adjustment Date” means, with respect to each Interest Only Loan, the
date, specified in the related Mortgage Note on which the Monthly Payment will be adjusted to
include principal as well as interest.

“Interest Only Loan” means a Mortgage Loan which only requires payments of interest
for a period of time specified in the related Mortgage Note.

“Interest Rate Adjustment Date” means the date on which an adjustment to the Mortgage
Interest Rate with respect to each Mortgage Loan becomes effective.

“Interest Rate Protection Agreement” means, with respect to any or all of the
Purchased Mortgage Loans, any short sale of a US Treasury Security, or futures contract, or
mortgage related security, or eurodollar 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, entered into by a Seller and an Affiliate of Buyers or such other
party acceptable to Group Agents in their sole discretion, which agreement is acceptable to
Administrative Agent in its sole discretion.

“JPM Buying Group” means, at any time, a group consisting of those Persons listed as
such on Schedule 3 hereto and the JPM Group Agent.

“JPM Group Agent” means JPMorgan Chase Bank, N.A. or any affiliate or successor
thereto.

“Jumbo Mortgage Loan” means an A quality first lien Mortgage Loan which is not
eligible for sale to an Agency.

“Law” means any law (including common law), constitution, statute, treaty, regulation,
rule, ordinance, order, injunction, writ, decree or award of any Official Body.

“LIBOR” means for each day, the rate of interest (calculated on a per annum basis)
equal to the overnight British Bankers Association Rate as reported on the display designated as
“BBAM” “Page DG8 4a” on Bloomberg (or such other display as may replace “BBAM” “Page DG8 4a” on
Bloomberg) on such date of determination, and if such rate shall not be so quoted, the rate per
annum at which Administrative Agent or an Affiliate is offered Dollar deposits at or about 11:00
a.m., (New York City time), on such day, by prime banks in the interbank eurodollar market where
the eurodollar and foreign currency exchange operations in respect of its loans are then being
conducted for delivery on such day for an overnight period, and in an amount comparable to the
amount of the Purchase Price of Transactions to be outstanding on such day.

“Lien” means any mortgage, lien, pledge, charge, security interest or similar
encumbrance; provided, however, that a Lien shall not include Permitted Liens.

“Loan to Value Ratio” or “LTV” means the ratio of (i)(a) with respect to any
first lien Mortgage Loan, the original outstanding principal amount of such Mortgage Loan and (b)
with respect to any Second Lien Mortgage Loan, the outstanding principal amount of any related
first lien as of the date of origination of such Mortgage Loan, to (ii) the lesser of (a) the
Appraised Value of the Mortgaged Property at origination or (b) if the Mortgaged Property was
purchased within 12 months of the origination of such Mortgage Loan, the purchase price of the
Mortgaged Property.

“Margin Call” has the meaning specified in Section 6(a) hereof.

“Margin Deadline” has the meaning specified in Section 6(b) hereof.

“Margin Deficit” has the meaning specified in Section 6(a) hereof.

“Market Value” means, with respect to any Purchased Mortgage Loan as of any date of
determination, the whole-loan servicing released fair market value of such Purchased Mortgage Loan
on such date as determined by Administrative Agent (or an Affiliate thereof) in its good faith
discretion.

“Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, condition (financial or otherwise) or
prospects of the Servicer or the Sellers, taken as a whole; (b) a material impairment of the
ability of any of the Sellers or the Servicer to perform under any Program Agreement; or (c) a
material adverse effect upon the legality, validity, binding effect or enforceability of any
Program Agreement against Sellers or the Servicer.

“Maximum Aggregate Purchase Price” shall have the meaning set forth in the Pricing
Side Letter.

“Maximum Committed Purchase Price” means, at any time, the sum of the Commitments of
the Committed Buyers then in effect.

“Maximum Credit Suisse Group Purchase Price” shall have the meaning set forth in the
Pricing Side Letter.

“Maximum JPM Group Purchase Price” shall have the meaning set forth in the Pricing
Side Letter.

“MERS” means Mortgage Electronic Registration Systems, Inc., a corporation organized
and existing under the laws of the State of Delaware, or any successor thereto.

“MERS System” means the system of recording transfers of mortgages electronically
maintained by MERS.

“Monthly Payment” means the scheduled monthly payment of principal and/or interest on
a Mortgage Loan.

“Moody’s” means Moody’s Investors Service, Inc. or any successors thereto.

“Mortgage” means each mortgage, assignment of rents, security agreement and fixture
filing, or deed of trust, assignment of rents, security agreement and fixture filing, deed to
secure debt, assignment of rents, security agreement and fixture filing, or similar instrument
creating and evidencing a lien on real property and other property and rights incidental thereto.

“Mortgage File” means, with respect to a Mortgage Loan, the documents and instruments
relating to such Mortgage Loan and set forth in Exhibit F to the Custodial Agreement.

“Mortgage Interest Rate” means the rate of interest borne on a Mortgage Loan from time
to time in accordance with the terms of the related Mortgage Note.

“Mortgage Interest Rate Cap” means, with respect to an adjustable rate Mortgage Loan,
the limit on each Mortgage Interest Rate adjustment as set forth in the related Mortgage Note.

“Mortgage Loan” means any closed-end, fixed or floating-rate, first lien or Second
Lien Mortgage Loan, on a one-to-four-family residential mortgage or home equity loan evidenced by a
promissory note and secured by a mortgage, which Mortgage Loan has closed and been funded by a
Seller, and which satisfies the requirements set forth in the Underwriting Guidelines and Section
13(b) hereof; provided, however, that, except as expressly approved in writing by Administrative
Agent, Mortgage Loans shall not include any “high-LTV” loans (i.e., a mortgage loan having
a loan-to-value ratio in excess of 100% or in excess of such lower percentage set forth in the
Underwriting Guidelines or with respect to Second Lien Mortgage Loans, a combined loan-to value
ratio, in excess of the lower of (i) the percentage specified in the Underwriting Guidelines or
(ii) 100%) or any High Cost Mortgage Loans and; provided, further, that the origination date with
respect to such Mortgage Loan is no earlier than thirty (30) days prior to the related Purchase
Date.

“Mortgage Loan Documents” means the documents in the related Mortgage File to be
delivered to the Custodian.

“Mortgage Loan Schedule” means with respect to any Transaction as of any date, a
mortgage loan schedule in the form of either (a) Exhibit C attached hereto or (b) a
computer tape or other electronic medium generated by a Seller, and delivered to Administrative
Agent and Custodian, which provides information (including, without limitation, the information
set forth on Exhibit C attached hereto) relating to the Purchased Mortgage Loans in a
format acceptable to Administrative Agent.

“Mortgage Loan Schedule and Exception Report” has the meaning assigned to such term in
the Custodial Agreement.

“Mortgage Note” means the promissory note or other evidence of the indebtedness of a
Mortgagor secured by a Mortgage.

“Mortgaged Property” means the real property securing repayment of the debt evidenced
by a Mortgage Note.

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

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

“Net Income” means, for any period and any Person, the net income of such Person for
such period as determined in accordance with GAAP.

“Net Worth” means, with respect to any Person, an amount equal to, on a consolidated
basis, such Person’s stockholder equity (determined in accordance with GAAP).

“1934 Act” means the Securities Exchange Act of 1934, as amended from time to time.

“Non-Utilization Fee” shall have the meaning set forth in the Pricing Side Letter.

“Notice Date” has the meaning given to it in Section 3(b) hereof.

“Obligations” means (a) all of Sellers’ indebtedness, obligations to pay the
Repurchase Price on the Repurchase Date, the Price Differential on each Price Differential Payment
Date, and other obligations and liabilities, to Buyers, the Administrative Agent, Group Agents,
their Affiliates or Custodian arising under, or in connection with, the Program Agreements, whether
now existing or hereafter arising; (b) any and all sums paid by the Buyers or the Administrative
Agent or the Group Agents on behalf of Buyers in order to preserve any Purchased Mortgage Loan or
its interest therein; (c) in the event of any proceeding for the collection or enforcement of any
of Sellers’ indebtedness, obligations or liabilities referred to in clause (a), the reasonable
expenses of retaking, holding, collecting, preparing for sale, selling or otherwise disposing of or
realizing on any Purchased Mortgage Loan, or of any exercise by Administrative Agent, Group Agents
or Buyers of their rights under the Program Agreements, including, without limitation, attorneys’
fees and disbursements and court costs; and (d) all of Sellers’ indemnity obligations to Buyers,
the Administrative Agent, Group Agents, Custodian and other indemnified parties pursuant to the
Program Agreements.

“OFAC” has the meaning set forth in Section 13(a)(28) hereof.

“Official Body” means any government or political subdivision or any agency,
authority, bureau, central bank, commission, department or instrumentality of any such government
or political subdivision, or any court, tribunal, grand jury or arbitrator, in each case whether
foreign or domestic.

“Outstanding Principal Balance” means, with respect to any Mortgage Loan at any time,
the then outstanding principal amount thereof.

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

“Permitted Guarantee Obligations” means (a) mortgage, repurchase and warehouse
facilities whereby Sellers are jointly and severally liable thereunder; (b) mortgage repurchase and
warehouse facilities or other ordinary course transactions whereby FIC guarantees the obligations
of any of its Subsidiaries thereunder; and (c) the obligations of either Seller pursuant to surety
bonds required in connection with state licensing and branch offices.

“Permitted Liens” means (i) liens of current real property taxes and assessments not
yet due and payable, (ii) covenants, conditions and restrictions, rights of way, easements and
other matters of the public record as of the date of recording being acceptable to mortgage lending
institutions generally and specifically referred to in the lender’s title insurance policy
delivered to the Seller and which does not adversely affect the Appraised Value of the Mortgaged
Property, (iii) in the case of a Mortgaged Property that is a condominium or an individual unit in
a planned unit development, liens for common charges permitted by statute, (iv) other matters to
which like properties are commonly subject, which do not, individually or in the aggregate,
materially interfere with the benefits of the security intended to be provided by the related
Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property.

“Person” means an individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated association, joint venture or
other entity, or a government or any political subdivision or agency thereof.

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

“Post Default Rate” shall have the meaning set forth in the Pricing Side Letter.

“Price Differential” means with respect to any Transaction as of any date of
determination, an amount equal to the product of (A) the Pricing Rate for such Transaction and
(B) the Purchase Price for such Transaction, calculated daily on the basis of a 360-day year 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 date of determination.

“Price Differential Payment Date” means, with respect to a Purchased Mortgage Loan,
the 5th day of the month following the related Purchase Date and each succeeding
5th day of the month thereafter; provided, that, with respect to such Purchased Mortgage
Loan, the final Price Differential Payment Date shall be the related Repurchase Date; and provided,
further, that if any such day is not a Business Day, the Price Differential Payment Date shall be
the next succeeding Business Day.

“Pricing Rate” shall have the meaning set forth in the Pricing Side Letter.

“Pricing Side Letter” means that certain Pricing Side Letter, dated as of the date
hereof, between the Administrative Agent and the Sellers, as the same may be amended from time to
time.

“Principal” has the meaning given to it in Annex I.

“Program Agreements” means, collectively, the Pricing Side Letter, the Servicing
Agreement, if any, the Servicer Notice, if any, the Custodial Agreement, this Agreement and the
Electronic Tracking Agreement, if entered into.

“Prohibited Person” has the meaning set forth in Section 13(a)(28) hereof.

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

“Pro Rata Share” means at any time,

(a) for each Committed Buyer, the Commitment of such Committed Buyer, divided by the
Maximum Committed Purchase Price at such time; and

(b) for Conduit Buyers in any Buying Group, an amount equal to the aggregate Commitments of
each Committed Buyer in such Conduit Buyers’ Buying Group, divided by the Maximum Committed
Purchase Price at such time.

“Purchase Confirmation” means a confirmation of a Transaction, in the form attached as
Exhibit B hereto.

“Purchase Date” means the date on which Purchased Mortgage Loans are to be transferred
by the applicable Seller to the Administrative Agent for the benefit of the Buyers.

“Purchase Price” means the price at which each Purchased Mortgage Loan is transferred
by the applicable Seller to the Administrative Agent for the benefit of the Buyers, which shall
equal:

(i) on the Purchase Date, the Asset Value of the Purchased Mortgage Loan on such date; and

(ii) on any day after the Purchase Date, except where Administrative Agent and the Sellers
agree otherwise, the amount determined under the immediately preceding clause (i) decreased by the
amount of any cash applied to reduce the Sellers’ obligations under clause (ii) of Section 4(b)
hereof or under Section 6 hereof.

“Purchase Price Percentage” shall have the meaning set forth in the Pricing Side
Letter.

“Purchase Price Share” means with respect to any Buyer in respect of any Transaction,
such Buyer’s Pro Rata Share of the Purchase Price for such Transaction.

“Purchased Mortgage Loans” means the collective reference to Mortgage Loans together
with the Repurchase Assets related to such Mortgage Loans transferred by the applicable Seller to
the Administrative Agent for the benefit of the Buyers in a Transaction hereunder, listed on the
related Mortgage Loan Schedule attached to the related Transaction Request, which such Mortgage
Loans the Custodian has been instructed to hold pursuant to the Custodial Agreement.

“Qualified Insurer” means a mortgage guaranty insurance company duly authorized and
licensed where required by law to transact mortgage guaranty insurance business and approved as an
insurer by Fannie Mae or Freddie Mac.

“Qualified Originator” means an originator of Mortgage Loans which is acceptable under
the Underwriting Guidelines.

“Rating Agency” means each of Moody’s, S&P or Fitch or any successor thereof.

“Records” means all instruments, agreements and other books, records, and reports and
data generated by other media for the storage of information maintained by Sellers or any other
person or entity with respect to a Purchased Mortgage Loan. Records shall include the Mortgage
Notes, any Mortgages, the Mortgage Files, the credit files related to the Purchased Mortgage Loan
and any other instruments necessary to document or service a Mortgage Loan.

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

“Reporting Date” means the 5th day of each month or, if such day is not a
Business Day, the next succeeding Business Day.

“Repurchase Assets” has the meaning assigned hereto in Section 8 hereof.

“Repurchase Date” means the earlier of (i) the Termination Date, (ii) the date set
forth in the applicable Purchase Confirmation or (iii) the date determined by application of
Section 16 hereof; provided that in no event may the Repurchase Date be later than one year after
the Purchase Date set forth in the applicable Purchase Confirmation.

“Repurchase Price” means the price at which Purchased Mortgage Loans are to be
transferred from the Administrative Agent for the benefit of the Buyers to Sellers 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 accrued but unpaid Price Differential as of the
date of such determination.

“Request for Certification” means a notice sent to the Custodian reflecting the sale
of one or more Purchased Mortgage Loans to the Administrative Agent for the benefit of the Buyers
hereunder.

“Required Committed Buyers” means, at any time, Committed Buyers having Commitments
equal to 100% of the Maximum Committed Purchase Price, or, if the Commitments have been terminated,
having equal to 100% of the Purchase Price outstanding with respect to Transactions hereunder.

“Requirement of Law” means, with respect to any Person, any law, treaty, rule or
regulation or determination of an arbitrator, a court or other governmental authority, applicable
to or binding upon such Person or any of its property or to which such Person or any of its
property is subject.

“Responsible Officer” means as to any Person, the chief executive officer or, with
respect to financial matters, the chief financial officer of such Person, or, with respect to any
certificates to be provided to Administrative Agent hereunder, any of the chief executive officer,
the chief financial officer or the treasurer or such Person.

“S&P” means Standard & Poor’s Ratings Services, or any successor thereto.

“SEC” means the Securities and Exchange Commission, or any successor thereto.

“Second Lien Mortgage Loan” means a Mortgage Loan secured by a second lien on the
related Mortgaged Property.

“Seller” means each of (i) Fieldstone Investment Corporation, a Maryland corporation,
or its permitted successors and assigns and (ii) Fieldstone Mortgage Company, a Maryland
corporation, or its permitted successors and assigns.

“Servicer” means any servicer approved by Group Agents in their sole discretion, which
may be a Seller.

“Servicer Advance” has the meaning specified in Section 7(g) hereof.

“Servicer Notice” means the notice acknowledged by the Servicer substantially in the
form of Exhibit M hereto.

“Servicing Agreement” means any servicing agreement entered into among Sellers,
Servicer, and/or Eligible Subservicer as the same may be amended from time to time.

“Settlement Agent” means, with respect to any Transaction the subject of which is a
Wet-Ink Mortgage Loan, the entity approved by a Group Agent, in its sole good-faith discretion,
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. A Settlement
Agent is deemed approved unless such Group Agent notifies Sellers otherwise at any time
electronically or in writing.

“SIPA” means the Securities Investor Protection Act of 1970, as amended from time to
time.

“Structured Securities Debt” means any Indebtedness incurred by an Acceptable SPV,
provided that (i) such Indebtedness is non-recourse to any shareholder or equity owner of
such Acceptable SPV, (ii) such Indebtedness is publicly issued or privately placed pursuant to a
144(a) offering and (iii) such Indebtedness is rated by at least one of the Rating Agencies.

“Subordinated Debt” means, Indebtedness of Sellers which is (i) unsecured, (ii) no
part of the principal of such Indebtedness is required to be paid (whether by way of mandatory
sinking fund, mandatory redemption, mandatory prepayment or otherwise) prior to the date which is
one year following the Termination Date and (iii) the payment of the principal of and interest on
such Indebtedness and other obligations of Sellers in respect of such Indebtedness are subordinated
to the prior payment in full of the principal of and interest (including post-petition obligations)
on the Transactions and all other obligations and liabilities of Sellers to Buyers hereunder on
terms and conditions approved in writing (which may be by facsimile or electronic mail) by
Administrative Agent and all other terms and conditions of which are satisfactory in form and
substance to Administrative Agent.

“Subsidiary” means, with respect to any Person, any corporation, partnership or other
entity of which at least a majority of the securities or other ownership interests having by the
terms thereof ordinary voting power to elect a majority of the board of directors or other persons
performing similar functions of such corporation, partnership or other entity (irrespective of
whether or not at the time securities or other ownership interests of any other class or classes of
such corporation, partnership or other entity shall have or might have voting power by reason of
the happening of any contingency) is at the time directly or indirectly owned or controlled by such
Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of
such Person.

“Termination Date” shall have the meaning set forth in the Pricing Side Letter.

“Test Period” means any calendar quarter.

“Transaction” has the meaning set forth in Section 1 hereof.

“Transaction Request” means a request from a Seller to Administrative Agent, in the
form attached as Exhibit A hereto, to enter into a Transaction.

“Trust Receipt and Certification” means, with respect to any Transaction as of any
date, a receipt and certification in the form attached as an exhibit to the Custodial Agreement.

“Underwriting Guidelines” means the standards, procedures and guidelines of the
Sellers for underwriting and acquiring Mortgage Loans, which are set forth in the written policies
and procedures of the Sellers, a copy of which is attached hereto as Exhibit G and such
other guidelines as are identified and approved in writing by Administrative Agent.

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

“VA” means the U.S. Department of Veterans Affairs, an agency of the United States of
America, or any successor thereto including the Secretary of Veterans Affairs.

“Violation Deadline” has the meaning assigned thereto in Section 4(c) hereof.

“Weighted Average CLTV” means, at any time with respect to a group of Purchased
Mortgage Loans, the weighted average of all of the CLTVs for such Purchased Mortgage Loans,
weighted on the basis of the current Outstanding Principal Balance of such Purchased Mortgage
Loans.

“Weighted Average FICO Score” means, at any time with respect to a group of Purchased
Mortgage Loans, the weighted average of all FICO Scores for such Purchased Mortgage Loans, weighted
on the basis of the current Outstanding Principal Balance of such Purchased Mortgage Loans.

“Weighted Average LTV” means, at any time with respect to a group of Purchased
Mortgage Loans, the weighted average of all of the LTVs for such Purchased Mortgage Loans, weighted
on the basis of the current Outstanding Principal Balance of such Purchased Mortgage Loans.

“Weighted Average Mortgage Interest Rate” means, at any time with respect to a group
of Purchased Mortgage Loans, the weighted average of all Mortgage interest rates for such Purchased
Mortgage Loans, weighted on the basis of the current Outstanding Principal Balance of such
Purchased Mortgage Loans.

“Wet-Ink Documents” means, with respect to any Wet-Ink Mortgage Loan, the (a)
Transaction Request and (b) the Mortgage Loan Schedule.

“Wet-Ink Mortgage Loan” means a Mortgage Loan which a Seller is selling to the
Administrative Agent for the benefit of the Buyers prior to the delivery of the related Mortgage
File to the Custodian.

3. Program; Initiation of Transactions

a. From time to time, Conduit Buyers may in their sole discretion, and if Conduit
Buyers in any Buying Group shall decline to purchase, the related Committed Buyers
shall, direct the related Group Agent, which shall direct the Administrative Agent
to purchase from Sellers certain Mortgage Loans that have been either originated by
Sellers or purchased by Sellers from other originators, subject to the terms and
conditions hereof. This Agreement is a commitment by each Committed Buyer to direct
their applicable Group Agent to direct the Administrative Agent to enter into
Transactions with the Sellers for an amount equal to such Committed Buyer’s
Commitment, subject to the terms and conditions hereof. This Agreement is neither a
commitment by Conduit Buyers to direct their applicable Group Agent to direct the
Administrative Agent to enter into Transactions with the Sellers nor a commitment by
any Committed Buyer to direct their applicable Group Agent to direct the
Administrative Agent to enter into Transactions with the Sellers for amounts
exceeding such Committed Buyer’s Commitment, but rather sets forth the procedures to
be used in connection with periodic requests for Administrative Agent for the
benefit of Buyers to enter into Transactions with the Sellers. Each Seller hereby
acknowledges that, beyond the Maximum Committed Purchase Price, Buyers are not under
any obligation to direct their applicable Group Agent to direct the Administrative
Agent to agree to enter into, or to enter into, any Transaction pursuant to this
Agreement. Furthermore, each Committed Buyer’s commitment to enter into any
Transactions shall be several from the obligations of any other Committed Buyer so
that no Committed Buyer shall be responsible for the failure of any other Committed
Buyer to honor its funding obligations hereunder. All Purchased Mortgage Loans
shall exceed or meet the Underwriting Guidelines, and shall be serviced by Servicer.
The aggregate Purchase Price of Purchased Mortgage Loans subject to outstanding
Transactions shall not exceed the Maximum Aggregate Purchase Price. Administrative
Agent for the benefit of Buyers shall only be required to enter into Transactions in
which the Purchase Price with respect thereto is at least $25,000,000.

b. With respect to each Transaction involving Mortgage Loans which are not Wet-Ink
Mortgage Loans, Sellers shall give Group Agents, Administrative Agent and Custodian
prior notice by no later than 11:00 a.m. (New York City time) at least two (2)
Business Days prior to any proposed Purchase Date (the date on which such notice is
given, the “Notice Date”); provided, that the requested Purchase Price must
be an aggregate amount of at least $25 million. With respect to Wet-Ink Mortgage
Loans, Sellers shall deliver notice of any proposed purchase on or before 12:00 noon
(New York City time) on the Purchase Date. On the Notice Date, Sellers shall
(i) request that the Administrative Agent for the benefit of Buyers enter into a
Transaction by furnishing to Administrative Agent a Transaction Request,
(ii) deliver to Administrative Agent, each Group Agent and Custodian a Mortgage Loan
Schedule and (iii) deliver to Custodian, or the Administrative Agent, either a
Request for Certification and each Mortgage File or Wet-Ink Documents for each
Wet-Ink Mortgage Loan, as applicable, in accordance with Section 10(b)(3) hereof.
Following receipt of such request, Administrative Agent for the benefit of Buyers
may enter into such requested Transaction or may notify Sellers of its intention not
to enter into such Transaction in accordance with the conditions precedent set forth
in Section 10 hereof. In the event the Mortgage Loan Schedule provided by a Seller
contains erroneous computer data, is not formatted properly or the computer fields
are otherwise improperly aligned, Administrative Agent shall provide written or
electronic notice to Sellers describing such error and Sellers shall correct the
computer data, reformat or properly align the computer fields itself and resubmit
the Mortgage Loan Schedule as required herein. Each Transaction Request shall be
irrevocable and binding on the applicable Seller, and the Sellers shall indemnify
the Administrative Agent, Group Agents and Buyers against any loss or expense
incurred by the Administrative Agent, Group Agents or Buyers, either directly or
indirectly, as a result of any failure by the applicable Seller to complete such
Transaction, including, without limitation, any actual loss or expense incurred by
the Administrative Agent, Group Agents or the Buyers, either directly or indirectly,
by reason of the liquidation or reemployment of funds acquired by the Administrative
Agent or Group Agents (including, without limitation, funds obtained by Buyers by
issuing Commercial Paper or promissory notes, obtaining deposits as loans from third
parties and reemployment of funds) for the Buyers to fund such Transaction. The
funding of each Transaction shall be made ratably among the Buying Groups in
accordance with their Buying Group Limits.

c. Upon the satisfaction of the applicable conditions precedent set forth in Section
10 hereof, each Group Agent shall select a Buyer or Buyers in its Buying Group to
fund such Transaction and such Group Agent, in its sole discretion, may allocate the
portion of the Transaction to be funded by its Buying Group among one or more Buyers
in its Buying Group. All of Sellers’ interest in the Repurchase Assets shall pass
to the Administrative Agent for the benefit of the Buyers on the Purchase Date,
against the transfer of the Purchase Price to Sellers. The portion of each
Transaction funded by a Conduit Buyer shall be in such Conduit Buyer’s sole and
absolute discretion, and any portion of such Transaction not funded by the Conduit
Buyer of a Buying Group will be funded by the Committed Buyers of such Buying Group.
On each Purchase Date, the Administrative Agent for the benefit of Buyers shall
record on its books and records each Buying Group’s pro rata share of the Purchase
Price paid to the applicable Seller with respect to each Transaction, which records
shall be conclusive evidence of the Purchase Price paid to the applicable Seller
with respect to such amounts, absent manifest error. Upon transfer of the Mortgage
Loans to the Administrative Agent for the benefit of Buyers as set forth in this
Section and until termination of any related Transactions as set forth in Sections 4
or 16 of this Agreement, ownership of each Mortgage Loan, including each document in
the related Mortgage File and Records, is vested in the Administrative Agent for the
benefit of the Buyers; provided that, prior to the recordation by the Custodian as
provided for in the Custodial Agreement record title in the name of the applicable
Seller to each Mortgage shall be retained by the Sellers in trust, for the benefit
of the Administrative Agent for the benefit of Buyers, for the sole purpose of
facilitating the servicing and the supervision of the servicing of the Mortgage
Loans.

d. With respect to each Wet-Ink Mortgage Loan, by no later than 12:00 noon, (New
York City time) on the fifth Business Day following the applicable Purchase Date,
Sellers shall cause the related Settlement Agent to deliver to the Custodian the
remaining documents in the Mortgage File.

e. At the request of the Sellers made no later than forty-five (45) days prior to,
but no earlier than sixty (60) days prior to, the Termination Date of this
Agreement, each Group Agent may, on behalf of the Committed Buyers in its Buying
Group, in its sole discretion extend the Termination Date for a period of 364
additional days or such other period to be determined by each Group Agent in its
sole discretion by giving written notice of such extension to the Sellers. Any
failure by a Group Agent to deliver such notice of extension shall be deemed to be
such Group Agent’s determination not to extend the then current Termination Date.

f. Notwithstanding that multiple Buyers are purchasing Purchase Price Shares of the
Transactions entered into under the Repurchase Agreement, all Transactions shall be
deemed a single Transaction and all of the Repurchase Assets shall be security for
all of the Obligations thereunder.

4. Repurchase

a. The related Seller shall repurchase the related Purchased Mortgage Loans from the
Administrative Agent on behalf of Buyers on each related Repurchase Date. Such
obligation to repurchase exists without regard to any prior or intervening
liquidation or foreclosure with respect to any Purchased Mortgage Loan (but
liquidation or foreclosure proceeds received by Administrative Agent, Group Agents
or any Buyer shall be applied to reduce the Repurchase Price for such Purchased
Mortgage Loan on each Price Differential Payment Date except as otherwise provided
herein). The related Seller is obligated to repurchase and take physical possession
of the Purchased Mortgage Loans from the Administrative Agent on behalf of Buyers or
its designee (including the Custodian) at such Seller’s expense on the related
Repurchase Date.

b. Provided that no Event of Default shall have occurred and is continuing, and each
Group Agent has received its Buying Group’s ratable portion of the related
Repurchase Price (based upon the portion of the Purchase Price funded by such Group
Agent for such Transaction) upon repurchase of the Purchased Mortgage Loans by the
related Seller, Administrative Agent and Buyers agree to release their ownership
interest hereunder in the Purchased Mortgage Loans (including, the Repurchase Assets
related thereto) at the request of the related Seller. With respect to payments in
full by the related Mortgagor of a Purchased Mortgage Loan, Sellers agree to
(i) provide Administrative Agent and Group Agents with a copy of a report from the
related Servicer indicating that such Purchased Mortgage Loan has been paid in full,
(ii) remit to each Group Agent, within two Business Days, its Buying Group’s portion
of the Repurchase Price with respect to such Purchased Mortgage Loans and (iii) 
provide Administrative Agent and Group Agents a notice specifying each Purchased
Mortgage Loan that has been prepaid in full. Administrative Agent and Buyers agree
to release their ownership interest in Purchased Mortgage Loans which have been
prepaid in full after receipt of evidence of compliance with clauses (i) through
(iii) of the immediately preceding sentence.

5. Price Differential

a. On each Business Day that a Transaction is outstanding, the Pricing Rate shall be
reset and, unless otherwise agreed, the accrued and unpaid Price Differential shall
be settled in cash on each related Price Differential Payment Date. Two Business
Days prior to the Price Differential Payment Date, Administrative Agent shall give
Sellers written or electronic notice of the amount of the Price Differential due to
them on such Price Differential Payment Date. On the Price Differential Payment
Date, Sellers shall pay to the Administrative Agent (for the benefit of the Buyers
and Group Agents) the Price Differential for such Price Differential Payment Date
(along with any other amounts to be paid pursuant to Section 7 hereof), by wire
transfer in immediately available funds.

b. If Sellers fail to pay all or part of the Price Differential by 11:00 a.m. (New
York City time) on the related Price Differential Payment Date, with respect to any
Purchased Mortgage Loan, Sellers shall be obligated to pay to the Administrative
Agent for the benefit of the Buyers (in addition to, and together with, the amount
of such Price Differential) interest on the unpaid Repurchase Price at a rate per
annum equal to the Post Default Rate until the Price Differential is received in
full by the Administrative Agent.

6. Margin Maintenance

a. If at any time the Asset Value of the Purchased Mortgage Loans subject to
Transactions is less than the then outstanding Purchase Price for all Transactions
(a “Margin Deficit”), then the Administrative Agent may by notice to Sellers
require Sellers to transfer to Administrative Agent cash in an amount equal to the
Margin Deficit (such requirement, a “Margin Call”).

b. Any notice given before 10:00 a.m. (New York City time) on a Business Day shall
be met, and the related Margin Call satisfied, no later than 5:00 p.m. (New York
City time) on such Business Day; notice given after 10:00 a.m. (New York City time)
on a Business Day shall be met, and the related Margin Call satisfied, no later than
5:00 p.m. (New York City time) on the following Business Day (the foregoing time
requirements for satisfaction of a Margin Call are referred to as the “Margin
Deadlines”). The failure of Administrative Agent, on any one or more occasions,
to exercise its rights hereunder, shall not change or alter the terms and conditions
to which this Agreement is subject or limit the right of Administrative Agent to do
so at a later date. Sellers, Administrative Agent and Buyers each agree that a
failure or delay by Administrative Agent to exercise its rights hereunder shall not
limit or waive Administrative Agent’s rights under this Agreement or otherwise
existing by law or in any way create additional rights for Sellers.

c. In the event that a Margin Deficit exists with respect to any Purchased Mortgage
Loan, the Administrative Agent may retain any funds received by it to which the
Sellers would otherwise be entitled hereunder up to an amount not to exceed the
Margin Deficit and upon providing notice to the Sellers, which funds (i) shall be
held by Administrative Agent against the related Margin Deficit and (ii) may be
applied by Administrative Agent against any Purchased Mortgage Loan for which the
related Margin Deficit remains otherwise unsatisfied. Notwithstanding the
foregoing, the Administrative Agent retains the right, in its sole discretion, to
make a Margin Call in accordance with the provisions of this Section 6 to the extent
that Administrative Agent has not exercised its rights under this subsection (c).
The Administrative Agent shall exercise its rights under this Section 6 at the
direction of any Buyer.

7. Income Payments

a. If Income is paid in respect of any Purchased Mortgage Loan during the term of a
Transaction, such Income shall be the property of Administrative Agent for the
benefit of the Buyers. Notwithstanding the foregoing, and provided no Event of
Default has occurred and is continuing, Administrative Agent agrees that if a
third-party Servicer is in place for any Purchased Mortgage Loans, such Servicer
shall deposit such Income to the Collection Account. Sellers shall deposit all
Income received in its capacity as Servicer of any Purchased Mortgage Loans or
pursuant to the preceding sentence to the Collection Account in accordance with
Section 12(c) hereof.

b. In the event that an Event of Default has occurred and is continuing,
notwithstanding any provision set forth herein, Sellers shall remit to
Administrative Agent all Income received with respect to each Purchased Mortgage
Loan on the related Price Differential Payment Date or on such other date or dates
as Administrative Agent notifies Sellers in writing.

c. The Servicer shall be permitted, in its reasonable discretion, to set aside and
pay from the Collection Account any accrued and unpaid servicing fee under any
Servicing Agreement due and owing to it, and such amounts shall not constitute
Available Collections. All moneys held by Servicer in the Collection Account shall,
to the extent available for distribution, be distributed by the Servicer on each
Price Differential Payment Date, in the following order of priority:

(1) first, to the Servicer, to repay any outstanding Servicer Advances;

(2) second, on a pro rata basis, (A) to the Servicer, the servicing fee under
any Servicing Agreement and other reasonable amounts due and owing to the Servicer
(to the extent any portion of the accrued and unpaid servicing fees have not been
previously set aside from Collections by the Servicer in accordance with the first
sentence of this Section 7(c)) and (ii) to the Custodian, the Custodial Fee and the
reasonable out-of-pocket costs and expenses of the Custodian not covered by the
Custodial Fee;

(3) third, to the Administrative Agent on behalf of itself and the Buyers (as
applicable) in an amount sufficient to pay (as applicable and in the following order
of priority):

A. the Administrative Fee;

B. to the Group Agents for the benefit of their respective Buyers, all
accrued and unpaid Price Differential due and owing to the Buyers for the
immediately preceding calendar month (to be distributed pro rata in
proportion to each Buying Group’s portion of the outstanding Purchase
Price);

C. to the Group Agents for the benefit of their respective Buyers, all
accrued and unpaid fees and other costs and expenses under the Pricing Side
Letter (to be distributed pro rata in proportion to each Buying Group’s
portion of such fees, costs and expenses);

D. to the Group Agents for the benefit of their respective Buyers, (i)
prior to the Termination Date, any amount selected by the Sellers in their
discretion toward a reduction of the outstanding Purchase Price, or any
amount necessary to reduce the outstanding Purchase Price to cure an Event
of Default or to satisfy the Margin Deficit and (ii) following the
Termination Date, on a pro rata basis, all remaining Available Collections
will be used to reduce the outstanding Purchase Price to zero, in both cases
to be distributed pro rata in proportion to each Buying Group’s portion of
the outstanding Purchase Price;

E. on a pro rata basis, to the Group Agents for the benefit of their
respective Buyers, all costs, expenses and indemnification payments, if any,
due and owing to such Persons under this Agreement and the other Program
Agreements (to be distributed pro rata in proportion to each Buying Group’s
portion of such fees, costs and expenses); and

(4) fourth, any remaining funds shall be paid to the Sellers (prior to the
Termination Date if, after giving effect to such payment, no Event of Default shall
occur) or to the Group Agents for the benefit of their respective Buyers and the
Administrative Agent to reduce the outstanding Obligations to zero (following the
Termination Date), to the extent outstanding Obligations remain due and owing (to be
distributed pro rata in proportion to each Buying Group’s portion of the outstanding
Purchase Price).

d. If on any Price Differential Payment Date Available Collections are not
sufficient to pay the sum of the amounts described in clauses (2) through (4) above
that are due and payable, the Servicer may, in its sole discretion and solely to the
extent that the Servicer reasonably expects to be reimbursed in full pursuant to
Section 7(c)(1), advance an amount equal to such amounts due and payable on such
Price Differential Payment Date (each, a “Servicer Advance”).

8. Security Interest

Although the parties intend that all Transactions hereunder be sales and purchases and not
financings, in the event any such Transactions are deemed to be financings, each Seller hereby
pledges to Administrative Agent for the benefit of the Buyers as security for the performance by
such Seller of its Obligations and hereby grants, assigns and pledges to Administrative Agent for
the benefit of the Buyers a fully perfected first priority security interest in the Purchased
Mortgage Loans, the Records, and all related servicing rights, the Program Agreements (to the
extent such Program Agreements and Sellers’ right thereunder relate to the Purchased Mortgage
Loans), any Property relating to the Purchased Mortgage Loans, all insurance policies and insurance
proceeds relating to any Purchased Mortgage Loan or the related Mortgaged Property, including, but
not limited to, any payments or proceeds under any related primary insurance, hazard insurance,
Income, the Collection Account, Interest Rate Protection Agreements, accounts (including any
interest of Sellers in escrow accounts) and any other contract rights, instruments, accounts,
payments, rights to payment (including payments of interest or finance charges) general intangibles
and other assets relating to the Purchased Mortgage Loans (including, without limitation, any other
accounts) or any interest in the Purchased Mortgage Loans, and any proceeds (including the related
securitization proceeds) and distributions with respect to any of the foregoing and any other
property, rights, title or interests as are specified on a Transaction Request and/or Trust Receipt
and Certification, in all instances, whether now owned or hereafter acquired, now existing or
hereafter created (collectively, the “Repurchase Assets”); provided, however, as to any
Purchased Mortgage Loan the security interest shall automatically terminate upon payment in full to
Administrative Agent of the Repurchase Price with respect thereto. In such event, (i) this
Agreement shall constitute a security agreement, and the Administrative Agent shall have all of the
rights of a secured party under applicable law and (ii) each of the Sellers and each Buyer
represents and warrants as to itself that each remittance of amounts by a Seller to such Buyer
under this Agreement will have been (x) in payment of a debt incurred by such Seller in the
ordinary course of business or financial affairs of such Seller and such Buyer and (y) made in the
ordinary course of business or financial affairs of such Seller and such Buyer. Sellers agree to
execute, deliver and/or file such documents and perform such acts as may be reasonably necessary to
fully perfect Administrative Agent’s security interest created hereby for the benefit of the
Buyers. Furthermore, the Sellers hereby authorize the Administrative Agent to file financing
statements relating to the Repurchase Assets, as the Administrative Agent, at its option, may deem
appropriate. The Sellers shall pay the filing costs for any financing statement or statements
prepared pursuant to this Section.

9. Payment and Transfer

Unless otherwise mutually agreed in writing, all transfers of funds to be made hereunder shall
be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to
the party entitled thereto to the account specified in Section 42, or such other account as such
party shall specify to the others in writing. Each party acknowledges that it has no rights of
withdrawal from the foregoing account. All Purchased Mortgage Loans transferred by one party
hereto to the other party shall be in the case of a purchase by the Administrative Agent for the
benefit of the Buyers in suitable form for transfer or shall be accompanied by duly executed
instruments of transfer or assignment in blank and such other documentation as Administrative Agent
may reasonably request. All Purchased Mortgage Loans shall be evidenced by a Trust Receipt and
Certification. Any Repurchase Price received by Administrative Agent after 2:00 p.m. (New York
City time) shall be deemed received on the next succeeding Business Day; provided, that
Administrative Agent shall credit to the Sellers interest, if any, earned on such funds overnight.

10. Conditions Precedent

a. Initial Transaction. As conditions precedent to the initial Transaction,
Administrative Agent shall have received on or before the day of such initial
Transaction the following, in form and substance satisfactory to Administrative
Agent and duly executed by Sellers and each other party thereto:

(1) Program Agreements. The Program Agreements (including without
limitation a Custodial Agreement in a form acceptable to Administrative Agent) duly
executed and delivered by the parties thereto and being in full force and effect,
free of any modification, breach or waiver.

(2) Security Interest. Evidence that all other actions necessary or,
in the opinion of Administrative Agent, desirable to perfect and protect Buyers’
interest in the Purchased Mortgage Loans and other Repurchase Assets have been
taken, including, without limitation, duly authorized and filed Uniform Commercial
Code financing statements on Form UCC-1.

(3) Organizational Documents. A certified copy of each Seller’s
charter, bylaws and corporate resolutions approving the Program Agreements and
transactions thereunder (either specifically or by general resolution) and all
documents evidencing other necessary corporate action or governmental approvals as
may be required in connection with the Program Agreements.

(4) Good Standing Certificate. A certified copy of a good standing
certificate from the jurisdiction of organization of each Seller, dated as of no
earlier than the date 10 Business Days prior to the Purchase Date with respect to
the initial Transaction hereunder.

(5) Incumbency Certificate. An incumbency certificate of the corporate
secretary of each Seller, certifying the names, true signatures and titles of the
representatives duly authorized to request transactions hereunder and to execute the
Program Agreements.

(6) Opinion of Counsel. In-house and outside counsel opinions of each
Seller’s counsel, in form and substance substantially as set forth in
Exhibit F attached hereto.

(7) Underwriting Guidelines. A true and correct copy of the
Underwriting Guidelines certified by an officer of Sellers.

(8) Fees. Payment of any fees due to Administrative Agent hereunder.

(9) Insurance. Evidence that Sellers have added Administrative Agent,
for the benefit of the Buyers, as additional loss payees under the Sellers’ Fidelity
Insurance.

b. All Transactions. The obligation of the Administrative Agent and the
Group Agents on behalf of the Buyers to enter into each Transaction pursuant to this
Agreement is subject to the following conditions precedent:

(1) Due Diligence Review. Without limiting the generality of Section
36 hereof, the respective Group Agent shall have completed, to its satisfaction, its
due diligence review of the related Mortgage Loans and Sellers and the Servicer.

(2) Required Documents.

(a) With respect to each Purchased Mortgage Loan which is not a Wet-Ink
Mortgage Loan, the Mortgage File has been delivered to the Custodian on or prior to
3:00 p.m. (New York City time) two (2) Business Days prior to the Purchase Date;

(b) With respect to each Wet-Ink Mortgage Loan, the Wet-Ink Documents have been
delivered to Administrative Agent or Custodian, as the case may be, by 3:00 p.m.
(New York City time) on the Purchase Date.

(3) Transaction Documents. Administrative Agent, the respective Group
Agent or their designee shall have received on or before the day of such Transaction
(unless otherwise specified in this Agreement) the following, in form and substance
satisfactory to Administrative Agent and such Group Agent and (if applicable) duly
executed:

(a) A Transaction Request delivered pursuant to Section 3(c) hereof and a
Purchase Confirmation.

(b) The Request for Certification and the related Custodial Mortgage Loan
Schedule, and the Trust Receipt.

(c) Such certificates, opinions of counsel or other documents as Administrative
Agent may reasonably request.

(4) No Event of Default. No Event of Default shall have occurred and
be continuing;

(5) Requirements of Law. Administrative Agent 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 Buyers has
made it unlawful, and no Governmental Authority shall have asserted that it is
unlawful, for Buyers to enter into Transactions with a Pricing Rate based on LIBOR.

(6) Representations and Warranties. Both immediately prior to the
related Transaction and also after giving effect thereto and to the intended use
thereof, the representations and warranties made by each Seller in each Program
Agreement 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).

(7) Electronic Tracking Agreement. To the extent Sellers are selling
Mortgage Loans which are registered on the MERS® System, an Electronic Tracking
Agreement entered into, duly executed and delivered by the parties thereto and being
in full force and effect, free of any modification, breach or waiver.

(8) Material Adverse Effect. No event has occurred and is continuing
that, under the sole discretion of the Administrative Agent, is reasonably likely to
result in a Material Adverse Effect.

(9) Maximum Aggregate Purchase Price. After giving effect to the
requested Transaction, the aggregate outstanding Purchase Price for all Purchased
Mortgage Loans subject to then outstanding Transactions under this Agreement shall
not exceed the Maximum Aggregate Purchase Price.

(10) Satisfactory Standards. The credit, risk management and collection
policies of the Sellers are satisfactory to each Group Agent, and the Sellers have
adequate ability to underwrite Mortgage Loans and to administer the Underwriting
Guidelines and Accepted Servicing Practices.

11. Program; Costs; Illegality

a. Sellers shall reimburse each Group Agent and the Administrative Agent for any of
such Person’s reasonable out-of-pocket costs, including due diligence review costs
and reasonable attorney’s fees, incurred by such Person in determining the
acceptability to such Person of any Mortgage Loans. Sellers shall also pay, or
reimburse Administrative Agent if Administrative Agent shall pay, any termination
fee, which may be due any servicer. Sellers shall pay the fees and expenses of each
Group Agent’s and the Administrative Agent’s counsel in connection with the Program
Agreements (without duplication), unless otherwise agreed to in writing between a
Group Agent and the Sellers. Legal fees for any subsequent amendments to this
Agreement or related documents shall be borne by Sellers. Sellers shall pay ongoing
custodial and bank fees and expenses, and any other ongoing fees and expenses under
any other Program Agreement.

b. If any Group Agent determines that, due to the introduction of, any change in, or
the compliance by any Buyer or any Conduit Buyer’s liquidity provider or program
support provider with (i) any eurocurrency reserve requirement or (ii) the
interpretation of any law, regulation or any guideline or request from any central
bank or other Governmental Authority (whether or not having the force of law), there
shall be an increase in the cost to such Buyer or such Conduit Buyer’s liquidity
provider or program support provider in engaging in the present or any future
Transactions, or providing its commitment to engage in any future Transaction, then
Sellers agree to pay (without duplication) to Administrative Agent or to such Group
Agent, from time to time, upon demand by such Group Agent (with a copy to Custodian)
the actual cost of additional amounts as specified by such Group Agent to compensate
such Buyer or such Conduit Buyer’s liquidity provider or program support provider
for such increased costs (the “Additional Costs”), provided that (A) such
Group Agent delivers to the Sellers (without a copy to Administrative Agent) a
certificate setting forth in reasonable detail the amount and basis of determination
of such Additional Costs and such certificate as to any Additional Costs submitted
by such Group Agent to the Sellers shall be conclusive in the absence of manifest
error and (B) notwithstanding anything contained herein, neither Seller shall be
obligated to compensate Buyers or any Conduit Buyer’s liquidity provider or program
support provider for any Additional Costs that such Buyers or any Conduit Buyer’s
liquidity provider or program support provider become entitled to claim hereunder
for any period prior to the date that is 120 days prior to a notice of such claim if
Buyers, any Conduit Buyer’s liquidity provider or program support provider or such
Group Agent knew or reasonably would have been expected to know of the circumstances
giving rise to such Additional Costs and of the fact that such circumstances could
be expected to result in a claim for Additional Costs.

c. Notwithstanding any other provision herein, if, after the Effective Date, the
adoption of any law or bank regulatory guideline or any amendment or change in the
interpretation of any existing or future Law or bank regulatory guideline by any
Official Body charged with the administration, interpretation or application
thereof, or the compliance with any directive of any Official Body (in the case of
any bank regulatory guideline, whether or not having the force of Law), shall make
it unlawful for any Buyer or any Conduit Buyer’s liquidity provider or program
support provider to acquire or maintain or to commit to acquire or maintain a
Mortgage Loan as contemplated by this Agreement, (i) such Buyer or liquidity
provider or program support provider to any Conduit Buyer shall, within ten (10)
days after receiving actual knowledge thereof, deliver a certificate to the Sellers
(with a copy to the Administrative Agent) setting forth the basis for such
illegality, which certificate shall be conclusive absent manifest error and (ii) the
commitment of such Buyer or such Conduit Buyer’s liquidity provider or program
support provider hereunder to make a portion of a Mortgage Loan and continue any
portion of a Mortgage Loan as such shall forthwith be suspended, and such suspension
shall remain in effect so long as the circumstance described above exists.

If circumstances subsequently change so that it is no longer unlawful for an
affected Buyer or any Conduit Buyer’s liquidity provider or program support provider
to acquire or to maintain a portion of a Mortgage Loan as contemplated hereunder,
such Buyer or such Conduit Buyer’s liquidity provider or program support provider
will, as soon as reasonably practicable after such Buyer or such Conduit Buyer’s
liquidity provider or program support provider knows of such change in
circumstances, notify the Sellers and the Administrative Agent, and upon receipt of
such notice, the obligations of such Buyer or such Conduit Buyer’s liquidity
provider or program support provider to acquire or maintain its acquisition of
portions of Mortgage Loans shall be reinstated.

Each Buyer agrees that, upon the occurrence of any event giving rise to the
operation of Section 11(c) with respect to such Buyer, it will, if requested by the
Sellers and to the extent permitted by law or by the relevant Official Body,
endeavor in good faith to change the office at which it books its portions of
Mortgage Loans hereunder if such change would make it lawful for such Buyer to
continue to acquire or to maintain its acquisition of portions of Mortgage Loans
hereunder; provided, however, that such change may be made in such manner that such
Buyer, in its sole determination, suffers no unreimbursed cost or expense or any
other disadvantage whatsoever.

d. With respect to any Transaction, Administrative Agent, for the benefit of the
Buyers, may conclusively rely upon, and shall incur no liability to Sellers in
acting upon, any request or other communication that Administrative Agent reasonably
believes to have been given or made by a person on the certificate delivered
pursuant to Section 10(a)(5) hereof. In each such case, each Seller hereby waives
the right to dispute Administrative Agent’s record of the terms of the Purchase
Confirmation, request or other communication.

e. Notwithstanding the assignment of the Program Agreements with respect to each
Purchased Mortgage Loan to Buyers, each Seller agrees and covenants with (x) Buyers
and Administrative Agent to enforce diligently Sellers’ rights and remedies set
forth in the Program Agreements and (y) to provide Administrative Agent with prompt
written notice of any Material Adverse Effect or event which, with the passage of
time, is reasonably likely to become a Material Adverse Effect, by any party to any
Program Agreement and of which any Seller is aware.

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

12. Servicing

a. Sellers, on Buyers’ behalf, shall contract with Servicer to, or if a Seller is
the Servicer, such Seller shall, service the Mortgage Loans consistent with the
degree of skill and care that such Seller customarily requires with respect to
similar Mortgage Loans owned or managed by it and in accordance with Accepted
Servicing Practices. The Servicer shall (i) comply with all applicable Federal,
State and local laws and regulations, (ii) maintain all state and federal licenses
necessary for it to perform its servicing responsibilities hereunder and (iii) not
impair the rights of Buyers in any Mortgage Loans or any payment thereunder.
Administrative Agent may terminate the servicing of any Mortgage Loan with the
then-existing servicer in accordance with Section 12(e) hereof.

b. Sellers shall cause the Servicer to hold or cause to be held all escrow funds
collected by Servicer with respect to any Purchased Mortgage Loans in trust accounts
and shall apply the same for the purposes for which such funds were collected.

c. Sellers shall cause the Servicer to deposit all collections received by Servicer
on the Purchased Mortgage Loans in the Collection Account in accordance with Section
7(c) no later than two (2) Business Days following receipt.

d. Upon Administrative Agent’s request, Sellers shall provide promptly to
Administrative Agent (i) a Servicer Notice addressed to and agreed to by the
Servicer of the related Purchased Mortgage Loans, advising such Servicer of such
matters as Administrative Agent may reasonably request, including, without
limitation, recognition by the Servicer of Buyers’ interest in such Purchased
Mortgage Loans and the Servicer’s agreement that upon receipt of notice of an Event
of Default from Administrative Agent, it will follow the instructions of
Administrative Agent with respect to the Purchased Mortgage Loans and any related
Income with respect thereto.

e. Upon the occurrence of an Event of Default hereunder or a material default under
the Servicing Agreement, Administrative Agent shall have the right to immediately
terminate the Servicer’s right to service the Purchased Mortgage Loans under the
Servicing Agreement without payment of any penalty or termination fee. Sellers and
the Servicer shall cooperate in transferring the servicing of the Purchased Mortgage
Loans to a successor servicer appointed by Administrative Agent in its sole
discretion.

f. If any Seller should discover that, for any reason whatsoever, any Seller or any
entity responsible to Seller for managing or servicing any such Purchased Mortgage
Loan has failed to materially perform such Seller’s obligations under the Program
Agreements or any of the obligations of such entities with respect to the Purchased
Mortgage Loans, Sellers shall promptly notify Administrative Agent.

g. Servicer may not delegate any of its rights, duties or obligations except to an
Eligible Subservicer upon notice to the Administrative Agent; provided that
such delegation shall not relieve Servicer of its duties and obligations as Servicer
hereunder and under the other Program Agreements or the Servicing Agreement.

h. Sellers shall cause the Servicer to distribute moneys held by Servicer in the
Collection Account in the order of priority set forth in Section 7(c) of this
Agreement.

13. Representations and Warranties

a. Each Seller represents and warrants to Buyers, Group Agents and Administrative
Agent as of the date hereof and as of each Purchase Date for any Transaction that:

(1) Seller Existence. Each Seller has been duly organized and is
validly existing as a corporation in good standing under the laws of the State of
Maryland.

(2) Licenses. Each Seller is duly licensed or is otherwise qualified
in each jurisdiction in which it transacts business for the business which it
conducts and is not in default of any applicable federal, state or local laws, rules
and regulations unless, in either instance, the failure to take such action is not
reasonably likely (either individually or in the aggregate) to cause a Material
Adverse Effect (hereinbefore defined) and is in material compliance with such
state’s applicable laws, rules and regulations. FMC has the requisite power and
authority and legal right to originate and purchase Mortgage Loans (as applicable)
and to own, sell and grant a lien on all of its right, title and interest in and to
the Mortgage Loans, and to execute and deliver, engage in the transactions
contemplated by, and perform and observe the terms and conditions of, this
Agreement, each Program Agreement and any Transaction Request or, if applicable,
Purchase Confirmation. FMC is an FHA Approved Mortgagee and VA Approved Lender. FIC
is a qualified REIT as defined by the Code.

(3) Power. Each Seller 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.

(4) Due Authorization. Each Seller has all necessary corporate or
other power, authority and legal right to execute, deliver and perform its
obligations under each of the Program Agreements, as applicable. This Agreement,
any Transaction Request, Purchase Confirmation and the Program Agreements have been
(or, in the case of Program Agreements and any Transaction Request, Purchase
Confirmation not yet executed, will be) duly authorized, executed and delivered by
each Seller and Servicer, all requisite or other corporate action having been taken,
and each is valid, binding and enforceable against each Seller in accordance with
its terms except as such enforcement may be affected by bankruptcy, by other
insolvency laws, or by general principles of equity.

(5) Financial Statements. FIC has heretofore furnished to
Administrative Agent a copy of (a) its consolidated and consolidating balance sheet
for the fiscal year of FIC ended December 31, 2005 and the related consolidated
statements of income and retained earnings and of cash flows for FIC and its
consolidated Subsidiaries for such fiscal year, setting forth in each case in
comparative form the figures for the previous year, with the opinion thereon of a
member of AICPA and (b) its consolidated and consolidating balance sheet for the
fiscal quarters of FIC ended March 31, 2006 and June 30, 2006, and the related
consolidated statements of income and retained earnings and of cash flows for FIC
and its consolidated Subsidiaries for such quarterly fiscal periods, 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 condition of FIC and its Subsidiaries and the
consolidated results of their operations as at such dates and for such fiscal
periods, all in accordance with GAAP applied on a consistent basis. Since
December 31, 2005, there has been no material adverse change in the consolidated
business, operations or financial condition of FIC and its consolidated Subsidiaries
taken as a whole from that set forth in said financial statements nor is any Seller
aware of any state of facts which (without notice or the lapse of time) would or
could result in any such material adverse change. Each Seller has, on the date of
the statements delivered pursuant to this Section (the “Statement Date”) no
knowledge of any liabilities, direct or indirect, fixed or contingent, matured or
unmatured, or liabilities for taxes, long-term leases or unusual forward or
long-term commitments not disclosed by, or reserved against in, said balance sheet
and related statements, and at the present time there are no material unrealized or
anticipated losses from any loans, advances or other commitments of such Seller
except as heretofore disclosed to Administrative Agent in writing.

(6) Event of Default. There exists no Event of Default.

(7) Solvency. Each Seller is solvent and will not be rendered
insolvent by any Transaction and, after giving effect to such Transaction, will not
be left with an unreasonably small amount of capital with which to engage in its
business. Neither Seller intends to incur, nor does it believe that it has
incurred, debts beyond its ability to pay such debts as they mature and is not
contemplating the commencement of insolvency, bankruptcy, liquidation or
consolidation proceedings or the appointment of a receiver, liquidator, conservator,
trustee or similar official in respect of such entity or any of its assets. Sellers
are not transferring any Purchased Mortgage Loans with any intent to hinder, delay
or defraud any of their respective creditors.

(8) No Conflicts. The execution, delivery and performance by each
Seller and Servicer of this Agreement, any Transaction Request or Purchase
Confirmation hereunder and the Program Agreements do not conflict with any term or
provision of the certificate of incorporation or by-laws of such Seller or any law,
rule, regulation, order, judgment, writ, injunction or decree applicable to any
Seller of any court, regulatory body, administrative agency or governmental body
having jurisdiction over any Seller, which conflict would have a Material Adverse
Effect and will not result in any violation of any such mortgage, instrument,
agreement or obligation to which any Seller is a party.

(9) True and Complete Disclosure. All information, reports, exhibits,
schedules, financial statements or certificates of any Seller or Servicer or any
Affiliate thereof or any of their officers furnished or to be furnished to
Administrative Agent in connection with the initial or any ongoing due diligence of
any Seller or any Affiliate or officer thereof, negotiation, preparation, or
delivery of the Program Agreements are true and complete in all material respects
and do not omit to disclose any material facts necessary to make the statements
herein or therein, in light of the circumstances in which they are made, not
misleading. All financial statements have been prepared in accordance with GAAP.

(10) Approvals. No consent, approval, authorization or order of,
registration or filing with, or notice to any governmental authority or court is
required under applicable law in connection with the execution, delivery and
performance by any Seller of this Agreement, any Transaction Request, Purchase
Confirmation and the Program Agreements.

(11) Litigation. Except as is disclosed in writing by Sellers and
approved by the Group Agents in writing, there are no actions, suits or proceedings
pending or, to the knowledge of the Sellers threatened, against or affecting the
Sellers or their respective properties, in or before any court, arbitrator or other
body, which, individually or in the aggregate, is reasonably likely to result in a
Material Adverse Effect.

(12) Material Adverse Change. There has been no material adverse
change in the business, operations, financial condition, properties or prospects of
any Seller or their Affiliates on a consolidated basis since the date set forth in
the most recent financial statements supplied to Administrative Agent.

(13) Ownership. Upon payment of the Purchase Price and the filing of
the financing statement, Buyers shall become the sole owner of the Purchased
Mortgage Loans and related Repurchase Assets, free and clear of all liens and
encumbrances.

(14) Underwriting Guidelines. The Underwriting Guidelines provided to
Administrative Agent are the true and correct Underwriting Guidelines of the
Sellers.

(15) Taxes. Each Seller and its 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 any of them, 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 each Seller and its Subsidiaries in
respect of taxes and other governmental charges are, in the opinion of such Seller,
adequate.

(16) Investment Company. No Seller nor any of its 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.

(17) Chief Executive Office; Jurisdiction or Organization. On the
Effective Date, FMC’s jurisdiction of organization is Maryland. FIC’s chief
executive office is, and has been, located at 11000 Broken Land Parkway, Suite 600,
Columbia, MD 21044. On the Effective Date, FIC’s jurisdiction of organization is
Maryland. The Sellers shall provide Administrative Agent with thirty days advance
notice of any change in any Seller’s chief executive office or jurisdiction. During
the preceding five years, neither Seller (a) has been known by or done business
under any other name, corporate or fictitious, except with respect to FMC, during
the period from January 1, 2000 to February 28, 2006 under the name Broad Street
Mortgage Co. and (b) has filed or had filed against it any bankruptcy receivership
or similar petitions nor has it made any assignments for the benefit of creditors.

(18) Location of Books and Records. The location where Sellers keep
their books and records, including all computer tapes and records relating to the
Purchased Mortgage Loans and the related Repurchase Assets is their chief executive
offices.

(19) Minimum Consolidated Adjusted Tangible Net Worth. On the
Effective Date, the Sellers’ Consolidated Adjusted Tangible Net Worth is not less
than $400 million.

(20) ERISA. Each Plan to which a Seller or its Subsidiaries make
direct contributions, and, to the knowledge of any Seller, each other Plan and each
Multiemployer Plan, is in compliance in all material respects with, and has been
administered in all material respects in compliance with, the applicable provisions
of ERISA, the Code and any other Federal or State law.

(21) Adverse Selection. No Seller has selected the Purchased Mortgage
Loans in a manner so as to adversely affect Buyers’ interests.

(22) Agreements. No Seller nor any Subsidiary of such Seller is a
party to any agreement, instrument, or indenture or subject to any restriction
materially and adversely affecting its business, operations, assets or financial
condition, except as disclosed in the financial statements described in Section
13(a)(5) hereof. No Seller nor any Subsidiary of such Seller is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in any agreement, instrument, or indenture which default could
have a Material Adverse Effect. No holder of any Indebtedness in excess of
$20,000,000 of the Sellers or of any of their Subsidiaries has given notice of any
asserted default thereunder.

(23) Other Credit Facilities. Each Seller hereby represents and
warrants that all credit facilities of the Sellers (other than Structured Securities
Debt) which are presently in effect are listed on Exhibit J (the
“Existing Credit Facilities”) hereto.

(24) Agency Approvals. With respect to each Agency Security and to the
extent necessary, FMC is an FHA Approved Mortgagee and a VA Approved Lender. FMC is
also approved by Fannie Mae as an approved lender and Freddie Mac as an approved
seller/servicer, and, to the extent necessary, approved by the Secretary of Housing
and Urban Development pursuant to Sections 203 and 211 of the National Housing Act.
In each such case, FMC is in good standing, with no event having occurred or FMC
having any reason whatsoever to believe or suspect will occur prior to the issuance
of the Agency Security, including, without limitation, a change in insurance
coverage which would either make FMC unable to comply with the eligibility
requirements for maintaining all such applicable approvals or require notification
to the relevant Agency or to the Department of Housing and Urban Development, FHA or
VA. Should FMC for any reason cease to possess all such applicable approvals, or
should notification to the relevant Agency or to the Department of Housing and Urban
Development, FHA or VA be required, FMC shall so notify Administrative Agent
immediately in writing. FMC has adequate financial standing, servicing facilities,
procedures and experienced personnel necessary for the sound servicing of mortgage
loans of the same types as may from time to time constitute Mortgage Loans and in
accordance with Accepted Servicing Practices.

(25) No Reliance. Each Seller has made its own independent decisions
to enter into the Program Agreements 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. Neither Seller is relying upon any advice
from Buyer or Administrative Agent as to any aspect of the Transactions, including
without limitation, the legal, accounting or tax treatment of such Transactions.

(26) Plan Assets. Neither Seller is an employee benefit plan as defined
in Section 3 of Title I of ERISA, or a plan described in Section 4975(e)(1) of the
Code, and the Purchased Mortgage Loans are not “plan assets” within the meaning of
29 CFR §2510.3-101 in any Seller’s hands.

(27) Real Estate Investment Trust. FIC has not engaged in any
“prohibited transactions” as defined in Section 857(b)(6)(B)(iii) and (C) of the
Code, which, either in any one instance or in the aggregate, is reasonably likely to
result in a Material Adverse Effect or in any material impairment of the right or
ability of FIC to carry on its business substantially as now conducted, or in any
material liability on the part of FIC. FIC for its current “tax year” (as defined
in the Code) is entitled to a dividends paid deduction, as described in Section
857(b)(2)B) of the Code, with respect to applicable dividends paid or deemed paid by
it with respect to each tax year for which it claims such a deduction in its Form
1120-REIT filed with the United States Internal Revenue Service.

(28) No Prohibited Persons. Neither Seller nor any of their Affiliates,
officers, directors, partners or members, is an entity or person (or to any Seller’s
knowledge, owned or controlled by an entity or person): (i) that is listed in the
Annex to, or is otherwise subject to the provisions of Executive Order 13224 issued
on September 24, 2001 (“EO13224”); (ii) whose name appears on the United
States Treasury Department’s Office of Foreign Assets Control (“OFAC”) most
current list of “Specifically Designated National and Blocked Persons” (which list
may be published from time to time in various mediums including, but not limited to,
the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens
to commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who
is otherwise affiliated with any entity or person listed above (any and all parties
or persons described in clauses (i) through (iv) above are herein referred to as a
“Prohibited Person”).

(29) Use of Proceeds. No proceeds of any Transaction will be used by
any Seller in any way which would violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System.

b. With respect to every Purchased Mortgage Loan, each Seller represents and
warrants to Buyer and Administrative Agent as of the applicable Purchase Date for
any Transaction and each date thereafter that each representation and warranty set
forth on Schedule 1 is true and correct.

c. The representations and warranties set forth in this Agreement shall survive
transfer of the Purchased Mortgage Loans to Administrative Agent for the benefit of
the Buyers and shall continue for so long as the Purchased Mortgage Loans are
subject to this Agreement. Upon discovery by Sellers, Servicer, Administrative
Agent or Buyers of any material breach of any of the representations or warranties
set forth in this Agreement, the party discovering such breach shall promptly give
notice of such discovery to the others. Subject to Administrative Agent’s right to
determine the Market Value of the Purchased Mortgage Loans, the Sellers shall have
up to five (5) Business Days to verify any alleged breach of representation or
warranty for any Purchased Mortgage Loan. Administrative Agent has the right to
require, in its unreviewable discretion, Sellers to repurchase within 1 Business Day
after receipt of notice from Administrative Agent any Purchased Mortgage Loan for
which a breach of one or more of the representations and warranties referenced in
Section 13(b) exists and which breach has a material adverse effect on the value of
such Mortgage Loan or the interests of Buyers.

14. Covenants

Each Seller covenants with each Buyer, each Group Agent and Administrative Agent that, during
the term of this facility:

a. Minimum Consolidated Adjusted Tangible Net Worth. The Sellers shall
maintain a Consolidated Adjusted Tangible Net Worth of at least $400 million.

b. Indebtedness to Consolidated Adjusted Tangible Net Worth Ratio. The
Sellers’ (i) combined ratio of consolidated Indebtedness to Consolidated Adjusted
Tangible Net Worth shall not exceed 16:1 and (ii) combined ratio of consolidated
Indebtedness (net of non-recourse Indebtedness) to Consolidated Adjusted Tangible
Net Worth shall not exceed 10:1.

c. Litigation. The Sellers will promptly, and in any event within ten (10)
days after service of process on any of the following, give to Administrative Agent
notice of all actions, suits or proceedings pending or, to the knowledge of the
Sellers threatened, against or affecting the Sellers or their respective properties,
in or before any court, arbitrator or other body, which, individually or in the
aggregate, is reasonably likely to result in a Material Adverse Effect.

d. Prohibition of Fundamental Changes. No Seller shall 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 any Seller may merge or
consolidate with (a) any wholly owned subsidiary of such Seller, or (b) any other
Person if such Seller, is the surviving corporation; and provided further, that if
after giving effect thereto, no Event of Default would exist hereunder.

e. Maintenance of Profitability. FIC shall not permit, for any two
consecutive Test Periods, its consolidated Net Income for any Test Period, before
income taxes for such Test Period, distributions made during such Test Period, and
without regard to unrealized gains or losses from mark to market valuations
resulting from Sellers’ Interest Rate Protection Agreements during such Test Period,
to be less than $1.00.

f. Servicer; Asset Tape. Sellers shall cause Servicer to provide to
Administrative Agent, electronically, in a format mutually acceptable to
Administrative Agent and Sellers, an Asset Tape by no later than the Reporting Date.
The Sellers shall not cause the Purchased Mortgage Loans to be serviced by any
servicer other than a servicer expressly approved in writing by Administrative
Agent, which approval shall be deemed granted by Administrative Agent with respect
to the Sellers with the execution of this Agreement. The Purchased Mortgage Loans
(other than those Purchased Mortgage Loans sold to the Administrative Agent for the
benefit of the Buyers by FMC) shall at all times be subserviced by an Eligible
Subservicer pursuant to a binding and enforceable agreement between the Servicer and
such Eligible Subservicer (copies of which, together with all amendments and
modifications thereto, shall be provided to the Administrative Agent).

g. Reserved.

h. Insurance. The Sellers will continue to maintain, for each Seller and
its subsidiaries, insurance coverage with respect to employee dishonesty, forgery or
alteration, theft, disappearance and destruction, robbery and safe burglary,
property (other than money and securities) and computer fraud in an aggregate amount
acceptable to Fannie Mae and Freddie Mac.

i. No Adverse Claims. The Sellers warrant and will defend, and shall cause
any Servicer to defend, the right, title and interest of Buyers in and to all
Repurchase Assets against all adverse claims and demands.

j. Assignment. Except as permitted herein, neither Seller shall sell,
assign, transfer or otherwise dispose of, or grant any option with respect to, or
pledge, hypothecate or grant a security interest in or lien on or otherwise encumber
(except pursuant to the Program Agreements), any of the Purchased Mortgage Loans or
any interest therein, provided that this Section shall not prevent any transfer of
Purchased Mortgage Loans in accordance with the Program Agreements.

k. Security Interest. The Sellers shall do all things necessary to preserve
the Repurchase Assets so that they remain subject to a first priority perfected
security interest hereunder. Without limiting the foregoing, the Sellers will
comply in all material respects with all rules, regulations and other laws of any
Governmental Authority and cause the Repurchase Assets to comply in all material
respects with all applicable rules, regulations and other laws. The Sellers will
not allow any default for which any Seller is responsible to occur under any
Repurchase Assets or any Program Agreements and the Sellers shall fully perform or
cause to be performed when due all of its obligations under any Repurchase Assets or
the Program Agreements.

l. Records.

(1) Sellers shall collect and maintain or cause to be collected and maintained
all Records relating to the Purchased Mortgage Loans in accordance with industry
custom and practice for assets similar to the Purchased Mortgage Loans, including
those maintained pursuant to the preceding subparagraph, and all such Records shall
be in Custodian’s possession unless Administrative Agent otherwise approves.
Sellers will not allow any such papers, records or files that are an original or an
only copy to leave Custodian’s possession, except for individual items removed in
connection with servicing a specific Mortgage Loan, in which event Sellers will
obtain or cause to be obtained a receipt from a financially responsible person for
any such paper, record or file. Sellers of the Purchased Mortgage Loans will
maintain all such Records not in the possession of Custodian in good and complete
condition in accordance with industry practices for assets similar to the Purchased
Mortgage Loans and preserve them against loss.

(2) For so long as Buyers have an interest in or lien on any Purchased Mortgage
Loan, Seller swill hold or cause to be held all related Records in trust for Buyers.
Sellers shall notify, or cause to be notified, every other party holding any such
Records of the interests and liens in favor of Buyers granted hereby.

(3) Upon reasonable advance notice from Custodian, any Group Agent or
Administrative Agent, Sellers shall (x) make any and all such Records available to
Custodian, such Group Agent or Administrative Agent during normal business hours to
examine any such Records, either by its own officers or employees, or by agents or
contractors, or both, and make copies of all or any portion thereof, and (y) permit
Buyers, any Group Agent, Administrative Agent or their authorized agents to discuss
the affairs, finances and accounts of Sellers with its chief operating officer and
chief financial officer and to discuss the affairs, finances and accounts of Sellers
with its independent certified public accountants.

m. Books. Sellers shall keep or cause to be kept in reasonable detail books
and records of account of their assets and business and shall clearly reflect
therein the transfer of Purchased Mortgage Loans to Administrative Agent for the
benefit of the Buyers.

n. Approvals. Each Seller shall maintain all licenses, permits or other
approvals necessary for Sellers to conduct their business and to perform their
obligations under the Program Agreements, and Sellers shall conduct their business
strictly in accordance with applicable law.

o. Material Change in Business. No Seller shall make any material change in
the nature of its business as carried on at the date hereof.

p. Underwriting Guidelines. The Sellers shall give each Group Agent prior
notice of all intended material changes, amendments or modifications to the related
Underwriting Guidelines which may affect the Purchased Mortgage Loans and the Group
Agents shall have three (3) Business Days following receipt of such notice to notify
the Sellers of their approval, which shall not be unreasonably withheld, or
disapproval of the Sellers’ proposed amendments or modifications. If no Group Agent
notifies the Sellers of its disapproval within three (3) Business Days, the proposed
amendments or modifications shall be deemed approved.

q. Distributions. If an Event of Default has occurred and is continuing, the
Sellers shall not pay any dividends with respect to any capital stock or other
equity interests in such entity, whether now or hereafter outstanding, or make any
other distribution in respect thereof, either directly or indirectly, whether in
cash or property or in obligations of any Seller.

r. Applicable Law. The Sellers shall comply, in all material respects, with
the requirements of all applicable laws, rules, regulations and orders of any
Governmental Authority.

s. Existence. The Sellers shall preserve and maintain their legal existence
and all of their material rights, privileges, licenses and franchises.

t. Chief Executive Office; Jurisdiction of Organization. No Seller shall
move its chief executive office from the address referred to in Section 13(a)(17) or
change its jurisdiction of organization from the jurisdiction referred to in Section
13(a)(17) unless it shall have provided Administrative Agent 30 days’ prior written
notice of such change.

u. Taxes. Sellers shall timely file all tax returns that are required to be
filed by it and shall timely 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 (i) the payment of which is being contested in
good faith and by proper proceedings and against which adequate reserves are being
maintained or (ii) of which the Sellers have no knowledge.

v. Transactions with Affiliates. The Sellers will not enter into any
transaction, including, without limitation, any purchase, sale, lease or exchange of
property or the rendering of any service, with any Affiliate which is not also a
Seller hereunder, unless such transaction is (a) otherwise permitted under the
Program Agreements, (b) in the ordinary course of such Seller’s business, or
(c) upon fair and reasonable terms no less favorable to such Seller than it would
obtain in a comparable arm’s-length transaction with a Person which is not an
Affiliate, or make a payment that is not otherwise permitted by this Section to any
Affiliate which is not also a Seller hereunder.

w. Reserved.

x. Indebtedness. Neither Seller shall enter into any credit agreement or
otherwise incur any additional Indebtedness (1) except as expressly set forth in
clause (2) below, without prior written notice to Administrative Agent (other than
(a) pursuant to Existing Credit Facilities specified on Exhibit J hereto or
any incremental increases thereto, (b) Structured Securities Debt, (c) Permitted
Guarantee Obligations and (d) usual and customary accounts payable for a mortgage
company) or (2) without the prior written consent of Administrative Agent in its
sole good faith discretion with respect to any Seller’s acquisition or operation of
any new line of business unrelated to that of a REIT or a mortgage banker. The
relevant Seller shall provide prompt written notice of any increase in its Existing
Credit Facilities specified on Exhibit J.

y. Hedging. The Sellers (i) have entered into Interest Rate Protection
Agreements, in accordance with the Sellers’ written policies regarding hedging, or a
letter detailing such policies to be delivered to the any Group Agent upon such
Group Agent’s request, with respect to Purchased Mortgage Loans having terms with
respect to protection against fluctuations in interest rates acceptable to the Group
Agents in their sole good faith discretion; and (ii) shall give the Group Agents
prior notice of all intended material changes, amendments or modifications to the
Sellers’ related written policies regarding hedging or letters delivered to the
Group Agents detailing such policies.

z. True and Correct Information. All information, reports, exhibits,
schedules, financial statements or certificates of Sellers, any Affiliate thereof or
any of their officers furnished to Administrative Agent hereunder and during
Administrative Agent’s diligence of Sellers are and will be true and complete and do
not omit to disclose any material facts necessary to make the statements herein or
therein, in light of the circumstances in which they are made, not misleading. All
required financial statements, information and reports delivered by Sellers or
Servicer to Administrative Agent pursuant to this Agreement shall be prepared in
accordance with U.S. GAAP, or, if applicable, to SEC filings, the appropriate SEC
accounting regulations.

aa. Delivery to Custodian. Prior to the purchase of a Mortgage Loan
pursuant to this Agreement, the Sellers shall deliver, or cause to be delivered, to
Administrative Agent or Custodian, as applicable, the documentation set forth in the
Custodial Agreement with respect to such Mortgage Loan. If upon examination of the
documents included in the related Mortgage File, the Custodian determines that such
documents do not satisfy the requirements set forth in the Custodial Agreement, the
Custodian shall mark such Mortgage Loan as an exception on the related Mortgage Loan
Schedule and Exception Report.

bb. Agency Approvals; Servicing. FMC shall maintain its status with Fannie
Mae as an approved lender and Freddie Mac as an approved seller/servicer, in each
case in good standing. Should FMC, for any reason, cease to possess all such
applicable Agency Approvals, or should notification to the relevant Agency or to The
Department of Housing and Urban Development, FHA or VA be required, FMC shall so
notify Administrative Agent immediately in writing. Notwithstanding the preceding
sentence, FMC shall take all necessary action to maintain all of their applicable
Agency Approvals at all times during the term of this Agreement and each outstanding
Transaction. FMC has adequate financial standing, servicing facilities, procedures
and experienced personnel necessary for the sound servicing of mortgage loans of the
same types as may from time to time constitute Mortgage Loans and in accordance with
Accepted Servicing Practices.

cc. Reserved.

dd. No Pledge. No Seller shall pledge, transfer or convey any security
interest in the Collection Account to any Person without the express written consent
of Administrative Agent.

ee. Non-Structured Securities Indebtedness to Consolidated Adjusted Tangible Net
Worth Ratio. The Sellers’ ratio of consolidated Indebtedness less Structured
Securities Debt to Consolidated Adjusted Tangible Net Worth shall not exceed 10:1.

ff. Plan Assets. Neither Seller shall be an employee benefit plan as
defined in Section 3 of Title I of ERISA, or a plan described in Section 4975(e)(1)
of the Code and no Seller shall use “plan assets” within the meaning of 29 CFR
§2510.3-101 to engage in this Repurchase Agreement or any Transaction hereunder.

gg. Maintenance of Liquidity. The Sellers shall maintain cash, Cash
Equivalents as well as unencumbered Mortgage Loans held for sale or securitization
of at least $15 million.

hh. Committed Warehouse Facility. While FIC or an Affiliate of FIC is the
Servicer, the Servicer shall cause the Sellers to maintain, at all times during the
term of this Agreement, one or more committed loan facilities with one or more
nationally recognized and established lenders (other than the Group Agents and their
Affiliates) that, in the aggregate on a committed basis, have an aggregate committed
amount of funds available to the Sellers equal to at least $500,000,000.

15. Events of Default

Each of the following shall constitute an “Event of Default” hereunder:

a. Payment Failure. Failure of any Seller or Servicer to (i) make any
payment of Price Differential or Repurchase Price or any other sum which has become
due, on a Price Differential Payment Date or a Repurchase Date or otherwise, whether
by acceleration or otherwise, under the terms of this Agreement, or (ii) cure any
Margin Deficit when due pursuant to Section 6 hereof.

b. Cross Default. Any Seller shall fail to pay when due any amounts due
under any agreement to which any such Person is a party and under which any
Indebtedness greater than $20,000,000 is governed (after giving effect to any
applicable cure periods); or any Indebtedness owing by the Sellers greater than
$20,000,000 shall be declared to be due and payable or required to be prepaid (other
than by a regularly scheduled payment) prior to the date of maturity thereof.

c. Assignment. Assignment or attempted assignment by any Seller of this
Agreement or any rights hereunder without first obtaining the specific written
consent of Administrative Agent, or the granting by any Seller of any security
interest, lien or other encumbrances on any Purchased Mortgage Loans to any person
other than Buyers.

d. Insolvency. An Act of Insolvency shall have occurred with respect to any
Seller.

e. Material Adverse Change. Any event having a Material Adverse Effect
shall occur, in each case as determined by the Administrative Agent in its sole good
faith discretion.

f. Breach of Financial Representation or Covenant or Obligation. A breach by
any Seller of any of the representations, warranties or covenants or obligations set
forth in Sections 13(a)(1), 13(a)(7), 13(a)(12), 13(a)(19), 13(a)(24), 14a, 14b,
14d, 14e, 14s, 14v, 14x, 14dd, 14ee, 14ff, 14gg or 14hh of this Agreement.

g. Breach of Non-Financial Representation or Covenant. A breach by any
Seller or Servicer, as applicable, of any other material representation, warranty or
covenant set forth in this Agreement (and not otherwise specified in Section 15(f)
above), if such breach is not cured within five (5) Business Days (other than the
representations and warranties set forth in Schedule 1, which shall be considered
solely for the purpose of determining the Market Value, the existence of a Margin
Deficit and the obligation to repurchase such Mortgage Loan) unless (i) such party
shall have made any such representations and warranties with knowledge that they
were materially false or misleading at the time made or (ii) any such
representations and warranties have been determined by Administrative Agent in its
sole discretion to be materially false or misleading on a regular basis.

h. Change of Control. The occurrence of a Change in Control.

i. Failure to Transfer. Sellers fail to transfer the Purchased Mortgage
Loans to the Administrative Agent for the benefit of the Buyers on the applicable
Purchase Date (provided the Administrative Agent for the benefit of the Buyers has
tendered the related Purchase Price).

j. Judgment. A final judgment or judgments for the payment of money in
excess of $20,000,000 in the aggregate shall be rendered against any Seller or any
of its 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.

k. Government Action. Any Governmental Authority or any person, agency or
entity acting or purporting to act under governmental authority shall have taken any
action to condemn, seize or appropriate, or to assume custody or control of, all or
any substantial part of the Property of Sellers, Servicer or any Affiliate thereof,
or shall have taken any action to displace the management of Sellers, Servicer or
any Affiliate thereof or to curtail its authority in the conduct of the business of
Sellers, Servicer or any Affiliate thereof, or takes any action in the nature of
enforcement to remove, limit or restrict the approval of Sellers, Servicer or
Affiliate as an issuer, buyer or a seller/servicer of Mortgage Loans or securities
backed thereby, and such action provided for in this subparagraph k shall not have
been discontinued or stayed within 30 days.

l. Inability to Perform. An officer of a Seller shall admit its inability
to, or its intention not to, perform any of the Sellers’ Obligations hereunder.

m. Security Interest. The Administrative Agent shall for any reason cease
to have a valid, first priority security interest in any material portion of the
Purchased Mortgage Loans or other Repurchase Assets purported to be covered hereby.

n. Financial Statements. Sellers’ or Servicer’s audited annual financial
statements or the notes thereto or other opinions or conclusions stated therein
shall be qualified or limited by reference to the status of Sellers or Servicer as a
“going concern” or a reference of similar import.

o. Amendments. Any material amendment is made to the Underwriting
Guidelines which was not previously approved by Administrative Agent pursuant to
Section 14(p).

p. REIT Status. The failure of FIC to at any time continue to be qualified
as a real estate investment trust as defined in Section 856 of the Code.

q. Eligible Subservicer. Except with respect to FMC, the failure at any
time to have a Person satisfying the definition of “Eligible Subservicer”
obligated to perform the duties of Eligible Subservicer with respect to Mortgage
Loans and related property originated by FIC.

An Event of Default shall be deemed to be continuing unless expressly waived by Administrative
Agent in writing.

16. Remedies Upon Default

In the event that an Event of Default shall have occurred:

a. Administrative Agent may, at its option (which option shall be deemed to have
been exercised immediately upon the occurrence of an Act of Insolvency of any Seller
or any Affiliate), declare an Event of Default to have occurred hereunder and, upon
the exercise or deemed exercise of such option, the Repurchase Date for each
Transaction hereunder shall, if it has not already occurred, be deemed immediately
to occur (except that, in the event that the Purchase Date for any Transaction has
not yet occurred as of the date of such exercise or deemed exercise, such
Transaction shall be deemed immediately canceled). Administrative Agent shall
(except upon the occurrence of an Act of Insolvency) give notice to Sellers of the
exercise of such option as promptly as practicable.

b. If Administrative Agent exercises or is deemed to have exercised the option
referred to in subparagraph (a) of this Section, (i) Sellers’ obligations in such
Transactions to repurchase all Purchased Mortgage Loans, at the Repurchase Price
therefor on the Repurchase Date determined in accordance with subparagraph (a) of
this Section, shall thereupon become immediately due and payable, (ii) all Income
paid after such exercise or deemed exercise shall be retained by Administrative
Agent and applied, in Administrative Agent’s sole discretion, to the aggregate
unpaid Repurchase Prices for all outstanding Transactions and any other amounts
owing by Sellers hereunder, and (iii) Sellers shall immediately deliver to
Administrative Agent the Mortgage Files relating to any Purchased Mortgage Loans
subject to such Transactions then in Sellers’ possession or control.

c. Administrative Agent also shall have the right to obtain physical possession, and
to commence an action to obtain physical possession, of all Records and files of
Sellers relating to the Purchased Mortgage Loans and all documents relating to the
Purchased Mortgage Loans (including, without limitation, any legal, credit or
servicing files with respect to the Purchased Mortgage Loans) which are then or may
thereafter come in to the possession of Sellers or any third party acting for
Sellers. To obtain physical possession of any Purchased Mortgage Loans held by
Custodian, Administrative Agent shall present to Custodian a Trust Receipt and
Certification. Buyer and Administrative Agent shall be entitled to specific
performance of all agreements of Sellers contained in this Agreement.

d. Administrative Agent shall have the right to direct all servicers then servicing
any Purchased Mortgage Loans to remit all collections thereon to Administrative
Agent, and if any such payments are received by Sellers, Seller shall not commingle
the amounts received with other funds of Sellers and shall promptly pay them over to
Administrative Agent. Administrative Agent shall also have the right to terminate
any one or all of the servicers then servicing any Purchased Mortgage Loans with or
without cause. In addition, Administrative Agent shall have the right to
immediately sell the Purchased Mortgage Loans and liquidate all Repurchase Assets.
Such disposition of Purchased Mortgage Loans may be, at Administrative Agent’s
option, on either a servicing-released or a servicing-retained basis. The
Administrative Agent for the benefit of the Buyers shall be entitled to place the
Purchased Mortgage Loans in a pool for issuance of mortgage-backed securities at the
then-prevailing price for such securities and to sell such securities for such
prevailing price in the open market. Administrative Agent shall also be entitled to
sell any or all of such Mortgage Loans individually for the prevailing price.
Administrative Agent shall also be entitled, in its sole discretion to elect, in
lieu of selling all or a portion of such Purchased Mortgage Loans, to give the
Sellers credit for such Purchased Mortgage Loans and the Repurchase Assets in an
amount equal to the Market Value of the Purchased Mortgage Loans against the
aggregate unpaid Repurchase Price and any other amounts owing by the Sellers
hereunder.

e. Upon the happening of one or more Events of Default, Administrative Agent may
apply any proceeds from the liquidation of the Purchased Mortgage Loans and
Repurchase Assets to the Repurchase Prices hereunder and all other Obligations in
the manner Administrative Agent deems appropriate in its sole discretion.

f. Sellers shall be liable to Buyers, Group Agents and Administrative Agent for
(i) the amount of all reasonable legal or other expenses (including, without
limitation, all costs and expenses of Buyers, Group Agents and Administrative Agent
in connection with the enforcement of this Agreement or any other agreement
evidencing a Transaction, whether in action, suit or litigation or bankruptcy,
insolvency or other similar proceeding affecting creditors’ rights generally,
further including, without limitation, the reasonable fees and expenses of counsel
(including the costs of internal counsel of Buyers, Group Agents and Administrative
Agent) incurred in connection with or as a result of an Event of Default,
(ii) damages in an amount equal to the cost (including all fees, expenses and
commissions) of entering into replacement transactions and entering into or
terminating hedge transactions in connection with or as a result of an Event of
Default, and (iii) any other loss, damage, cost or expense directly arising or
resulting from the occurrence of an Event of Default in respect of a Transaction.

g. To the extent permitted by applicable law, Sellers shall be liable to Buyers,
Group Agents and Administrative Agent for interest on any amounts owing by Sellers
hereunder, from the date Sellers become liable for such amounts hereunder until such
amounts are (i) paid in full by Sellers or (ii) satisfied in full by the exercise of
Buyers’, Group Agents’ or Administrative Agent’s rights hereunder. Interest on any
sum payable by Sellers under this Section 16(g) shall be at a rate equal to the
Post-Default Rate.

h. Buyers, Group Agents and Administrative Agent shall have, in addition to its
rights hereunder, any rights otherwise available to it under any other agreement or
applicable law.

i. Buyers, Group Agents and Administrative Agent may exercise one or more of the
remedies available to them immediately upon the occurrence of an Event of Default
and, except to the extent provided in subsections (a) and (d) of this Section, at
any time thereafter without notice to Sellers. 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 Buyers, Group Agents and
Administrative Agent may have.

j. Buyers, Group Agents and Administrative Agent may enforce their rights and
remedies hereunder without prior judicial process or hearing, and each Seller hereby
expressly waives any defenses such Seller might otherwise have to require Buyers,
Group Agents or Administrative Agent to enforce their rights by judicial process.
Each Seller also waives any defense (other than a defense of payment or performance)
such Seller might otherwise have arising from the use of nonjudicial process,
enforcement and sale of all or any portion of the Repurchase Assets, or from any
other election of remedies. Each 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.

k. Administrative Agent and Group Agents shall have the right to perform reasonable
due diligence with respect to each Seller and the Mortgage Loans, which review shall
be at the expense of Sellers.

17. Reports

a. Notices. The Sellers shall immediately furnish to Administrative Agent
and each Group Agent notice of the occurrence of any Event of Default hereunder or
material default or breach by the Sellers or Servicer of any obligation under any
Program Agreement or any material contract or agreement of the Sellers or Servicer
or the occurrence of any event or circumstance that such party reasonably expects
will, with the passage of time, become an Event of Default or such a default or
breach by such party and the following:

(1) as soon as available and in any event within thirty (30) calendar days
after the end of each calendar month, the unaudited consolidated and consolidating
balance sheets of FIC and its consolidated Subsidiaries as at the end of such period
and the related unaudited consolidated statements of income and retained earnings
and of cash flows for FIC and its 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 FIC, which certificate shall state that said
consolidated financial statements fairly present in all material respects the
consolidated financial condition and results of operations of FIC and its
consolidated Subsidiaries in accordance with GAAP, consistently applied, as at 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 FIC, the consolidated and consolidating balance sheets of FIC
and its consolidated Subsidiaries as at the end of such fiscal year and the related
consolidated statements of income and retained earnings and of cash flows for FIC
and its 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, a member of AICPA, which
opinion shall not be qualified as to scope of audit or going concern and shall state
that said consolidated and consolidating financial statements fairly present the
consolidated financial condition and results of operations of FIC and its respective
consolidated Subsidiaries as at the end of, and for, such fiscal year in accordance
with GAAP;

(3) such other prepared statements that Administrative Agent or any Group Agent
may reasonably request;

(4) if applicable, copies of any 10-Ks, 10-Qs, registration statements and
other “corporate finance” SEC filings (other than 8-Ks) by Sellers, within
5 Business Days of their filing with the SEC; provided, that, Sellers or any
Affiliate will provide each Group Agent, the Administrative Agent and Credit Suisse
First Boston Corporation with a copy of the annual 10-K filed with the SEC by
Sellers or their Affiliates, no later than 90 days after the end of the year;

(5) as soon as available, and in any event within thirty (30) days of receipt,
copies of relevant portions of all final written Agency, FHA, VA, Governmental
Authority and investor audits, examinations, evaluations, monitoring reviews and
reports of its operations (including those prepared on a contract basis) which
provide for or relate to (i) material corrective action required or (ii) material
sanctions proposed, imposed or required, including without limitation notices of
defaults, notices of termination of approved status, notices of imposition of
supervisory agreements or interim servicing agreements, and notices of probation,
suspension, or non-renewal;

(6) from time to time such other information regarding the financial condition,
operations, or business of the Sellers as Administrative Agent or any Group Agent
may reasonably request;

(7) as soon as reasonably possible, and in any event within thirty (30) days
after a Responsible Officer of any Seller knows, or with respect to any Plan or
Multiemployer Plan to which any Seller or any of its Subsidiaries makes direct
contributions, has reason to believe, that any of the events or conditions specified
below with respect to any Plan or Multiemployer Plan has occurred or exists, a
statement signed by a senior financial officer of such Seller setting forth details
respecting such event or condition and the action, if any, that such Seller or its
ERISA Affiliate proposes to take with respect thereto (and a copy of any report or
notice required to be filed with or given to PBGC by such Seller or an ERISA
Affiliate with respect to such event or condition);

(8) any reportable event, as defined in Section 4043(c) of ERISA and the
regulations issued thereunder, with respect to a Plan, as to which PBGC has not by
regulation waived the requirement of Section 4043(a) of ERISA that it be notified
within thirty (30) days of the occurrence of such event (provided that a failure to
meet the minimum funding standard of Section 412 of the Code or Section 302 of
ERISA, including, without limitation, the failure to make on or before its Due Date
a required installment under Section 412(m) of the Code or Section 302(e) of ERISA,
shall be a reportable event regardless of the issuance of any waivers in accordance
with Section 412(d) of the Code); and any request for a waiver under Section 412(d)
of the Code for any Plan;

(9) the distribution under Section 4041(c) of ERISA of a notice of intent to
terminate any Plan or any action taken by the any Seller or an ERISA Affiliate to
terminate any Plan;

(10) the institution by PBGC of proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer any Plan, or the
receipt by the any Seller or any ERISA Affiliate of a notice from a Multiemployer
Plan that such action has been taken by PBGC with respect to such Multiemployer
Plan;

(11) the complete or partial withdrawal from a Multiemployer Plan by any Seller
or any ERISA Affiliate that results in liability under Section 4201 or 4204 of ERISA
(including the obligation to satisfy secondary liability as a result of a purchaser
default) that would have a Material Adverse Effect or the receipt by any Seller or
any ERISA Affiliate of notice from a Multiemployer Plan that it is in reorganization
or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends to
terminate or has terminated under Section 4041A of ERISA;

(12) the institution of a proceeding by a fiduciary of any Multiemployer Plan
against any Seller or any ERISA Affiliate to enforce Section 515 of ERISA, which
proceeding is not dismissed within thirty (30) days;

(13) the adoption of an amendment to any Plan that would result in the loss of
tax-exempt status of the trust of which such Plan is a part if the related Seller or
an ERISA Affiliate fails to provide timely security to such Plan in accordance with
the provisions of Section 401(a)(29) of the Code or Section 307 of ERISA.

(14) As soon as reasonably possible, notice of any of the following events:

(a) change in the insurance coverage required of Sellers, Servicer or any other
Person pursuant to any Program Agreement, with a copy of evidence of same attached;

(b) immediately following notice or knowledge of any material litigation
against any Seller;

(c) any material dispute, litigation, investigation, proceeding or suspension
between any Seller or Servicer, on the one hand, and any Governmental Authority;

(d) any material change in accounting policies or financial reporting practices
of any Seller or Servicer;

(e) the occurrence of any material employment dispute and a description of the
strategy for resolving it that has the possibility of resulting in a Material
Adverse Effect;

(f) with respect to any Purchased Mortgage Loan, immediately upon receipt of
notice or knowledge thereof, that the underlying Mortgaged Property has been damaged
by waste, fire, earthquake or earth movement, windstorm, flood, tornado or other
casualty, or otherwise damaged so as to affect adversely the value of such Mortgaged
Loan;

(g) any material issues raised upon examination of Sellers or Sellers’
facilities by any Governmental Authority;

(h) any material change in the Indebtedness of any Seller, including, without
limitation, any material default, renewal, non-renewal, termination, increase in
available amount or decrease in available amount related thereto;

(i) promptly upon receipt of notice or knowledge of (i) any default related to
any Repurchase Asset, (ii) any lien or security interest (other than security
interests created hereby or by the other Program Agreements) on, or claim asserted
against, any of the Purchased Mortgage Loans; and

(j) any other event, circumstance or condition that has resulted, or has a
possibility of resulting, in a Material Adverse Effect with respect to any Seller or
Servicer.

b. Officer’s Certificates. Sellers will furnish to Administrative Agent and
Group Agents, at the time Sellers furnish each set of financial statements pursuant
to Section 17(a)(1) or (2) above, a certificate of a Responsible Officer of each
Seller in the form of Exhibit D hereto certifying that, as of the date of
such financial statements and as of the date of such certificates, such Seller is in
compliance with all the terms of this Agreement and setting forth the basis for such
compliance, including the calculation of each financial ratio and covenant required
to be satisfied herein.

c. Compliance Certificate. For each month, FIC shall deliver to
Administrative Agent and Group Agents a compliance certificate certifying Sellers’
compliance with the covenants in Section 14(a), (b), (e), (ee) and (gg) above and
setting forth its calculation thereof and identifying all Mortgage Loans purchased
by the Administrative Agent for the benefit of the Buyers and held by Custodian
pending repurchase.

d. Mortgage Loan Reports. The Sellers will furnish to Administrative Agent
and Group Agents, in the form of Exhibit O hereto, monthly electronic
Mortgage Loan performance data, including, without limitation, delinquency reports,
pool analytic reports and static pool reports (i.e., delinquency, foreclosure and
net charge-off reports) and monthly stratification reports summarizing the
characteristics of the Purchased Mortgage Loans.

e. Asset Tape. Sellers shall provide to Administrative Agent and Group
Agents, electronically, in a format mutually acceptable to Administrative Agent and
Sellers, an Asset Tape by no later than the Reporting Date.

f. Other. Sellers shall deliver to Administrative Agent and Group Agents any
other reports or information reasonably requested by Administrative Agent or any
Group Agent or as otherwise required pursuant to this Agreement.

18. Reserved

19. Single Agreement

Buyers, Administrative Agent and each Seller acknowledge that, and have entered hereunto, and
will enter into each Transaction hereunder, in consideration of and in reliance upon the fact that,
all Transactions hereunder constitute a single business and contractual relationship and have been
made in consideration of each other. Accordingly, each of Buyers, Administrative Agent and each
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 Transactions hereunder and (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.

20. Notices and Other Communications

Any and all notices (with the exception of Transaction Requests or Purchase Confirmations,
which shall be delivered via facsimile or electronically only), statements, demands or other
communications hereunder may be given by a party to the other by mail, facsimile, messenger or
otherwise to the address specified below, or so sent to such party at any other place specified in
a notice of change of address hereafter received by the other. All notices, demands and requests
hereunder may be made orally, to be confirmed promptly in writing, or by other communication as
specified in the preceding sentence.

	 	 	 	If to a Seller:

Fieldstone Mortgage Company

11000 Broken Land Parkway

Suite 600

Columbia, MD 21044

Attention: Treasurer

Phone Number: 410-772-7275

Fax Number: 443-367-2172

mkrebs@fmcmortgage.com

Fieldstone Investment Corporation

11000 Broken Land Parkway

Suite 600

Columbia, MD 21044

Attention: Treasurer

Phone Number: 410-772-7275

Fax Number: 443-367-2172

mkrebs@fmcmortgage.com

	 	 	 	with a copy to:

Fieldstone Mortgage Company

11000 Broken Land Parkway

Suite 600

Columbia, MD 21044

Attention: General Counsel

Phone Number: 410-772-7200

	 	 	 	If to Administrative Agent:

Credit Suisse, New York Branch

11 Madison Avenue, 5th Floor

New York, NY 10010

Attention: Joseph Soave and Alex Smith

Phone Number: (212) 325-9103

Fax Number: (212) 325-0873

	 	 	 	with a copy to:

Credit Suisse, New York Branch

Eleven Madison Avenue

New York, NY 10010

Attention: Legal Department

	 	 	 	If to the JPM Group Agent:

Asset-Backed Securities – Conduit

Chase Tower

Suite IL 1-0079

Chicago, IL 60670

Fax Number: 312-732-1844

21. Entire Agreement; Severability

This Agreement shall supersede any existing agreements between the parties containing general
terms and conditions for repurchase transactions. 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.

22. Non assignability

The Program Agreements are not assignable by any Seller. Buyers may from time to time assign
all or a portion of its rights and obligations under this Agreement and the Program Agreements;
provided, however that any such assignment shall be delivered to the Administrative Agent and the
Administrative Agent shall maintain as agent of Sellers, for review by Sellers upon written
request, a register of assignees and a copy of an executed assignment and acceptance by Buyers and
assignee (“Assignment and Acceptance”), specifying the percentage or portion of such rights
and obligations assigned. Upon such assignment, (a) such assignee shall be a party hereto and to
each Program Agreement to the extent of the percentage or portion set forth in the Assignment and
Acceptance, and shall succeed to the applicable rights and obligations of Buyers hereunder, and
(b) Buyers shall, to the extent that such rights and obligations have been so assigned by it to
(i) an Affiliate of a Buyer which assumes the obligations of such Buyer, (ii) any other Buyer,
(iii) any commercial paper conduit administered by any Buyer or any Affiliate of a Buyer, (iv) any
liquidity provider to any Conduit Buyer or (v) to another Person approved by Sellers (such approval
not to be unreasonably withheld) which assumes the obligations of any Buyer, be released from its
obligations hereunder and under the Program Agreements. Unless otherwise stated in the Assignment
and Acceptance, Sellers shall continue to take directions solely from Administrative Agent unless
otherwise notified by Administrative Agent in writing. Administrative Agent may distribute to any
prospective assignee any document or other information delivered to Administrative Agent by
Sellers.

23. Set-off

a. In addition to any rights and remedies of Buyers and Administrative Agent provided by law,
Buyers and Administrative Agent shall have the right, without prior notice to Sellers, any such
notice being expressly waived by Sellers to the extent permitted by applicable law, upon any amount
becoming due and payable by Sellers hereunder (whether at the stated maturity, by acceleration or
otherwise) to set-off and appropriate and apply against such amount 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 Buyers or any branch or agency
thereof to or for the credit or the account of Sellers. Administrative Agent agrees promptly to
notify Sellers after any such set-off and application made by Buyers or Administrative Agent;
provided, that the failure to give such notice shall not affect the validity of such set-off and
application.

b. If Administrative Agent for the benefit of any Buyer (a “Benefited Buyer”) shall at
any time receive any payment of all or part of the Obligations owed to such Buyer, or Price
Differential in respect thereof, or receive any assets in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in
Section 15(d), or otherwise), in a greater proportion than any such payment to or asset received by
any other Buyer, if any, in respect of such other Buyer’s Transactions, such Price Differential or
such other Obligations, the Administrative Agent for the benefit of such Benefited Buyer shall
purchase for cash from the other Buyers a participating interest in such portion of each such other
Buyer’s Transactions, or shall provide such other Buyers with the benefits of any such asset, or
the proceeds thereof, as shall be necessary to cause such Benefited Buyer to share the excess
payment or benefits of such asset or proceeds ratably with each of the Buyers based upon the
respective aggregate Purchase Prices of the Transactions held by them; provided, however, that if
all or any portion of such excess payment or benefits is thereafter recovered from such Benefited
Buyer, such purchase shall be rescinded, and the purchase price and benefits returned, to the
extent of such recovery, but without interest. Each Seller agrees that each Buyer so purchasing a
portion of another Buyer’s Transactions and any participant may exercise all rights of payment
(including, without limitation, rights of set-off) with respect to such portion as fully as if such
Buyer were the direct holder of such portion.

24. Binding Effect; Governing Law; Jurisdiction

a. This Agreement shall be binding and inure to the benefit of the parties hereto
and their respective successors and permitted assigns. Each Seller acknowledges
that the obligations of Buyers and Administrative Agent hereunder or otherwise are
not the subject of any guaranty by, or recourse to, any direct or indirect parent or
other Affiliate of Buyers or Administrative Agent. THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK,
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

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

25. No Waivers, Etc.

No express or implied waiver of any Event of Default by either party shall constitute a waiver
of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute
a waiver of its right to exercise any other remedy hereunder. No modification or waiver of any
provision of this Agreement and no consent by any party to a departure herefrom shall be effective
unless and until such shall be in writing and duly executed by both of the parties hereto. Without
limitation on any of the foregoing, the failure to give a notice pursuant to Section 6(a), 16(a) or
otherwise, will not constitute a waiver of any right to do so at a later date.

26. 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 Mortgage Loans 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 assets subject to such Transaction would render such definition
inapplicable).

b. It is understood that either party’s right to liquidate Purchased Mortgage Loans
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 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).

e. This Agreement is intended to be a “repurchase agreement” and a “securities
contract,” within the meaning of Section 555 and Section 559 under the Bankruptcy
Code.

27. Disclosure Relating to Certain Federal Protections

The parties acknowledge that they have been advised that:

a. in the case of Transactions in which one of the parties is a broker or dealer
registered with the SEC under Section 15 of the 1934 Act, the Securities Investor
Protection Corporation has taken the position that the provisions of the SIPA do not
protect the other party with respect to any Transaction hereunder;

b. in the case of Transactions in which one of the parties is a government
securities broker or a government securities dealer registered with the SEC under
Section 15C of the 1934 Act, SIPA will not provide protection to the other party
with respect to any Transaction hereunder; and

c. in the case of Transactions in which one of the parties is a financial
institution, funds held by the financial institution pursuant to a Transaction
hereunder are not a deposit and therefore are not insured by the Federal Deposit
Insurance Corporation or the National Credit Union Share Insurance Fund, as
applicable.

28. Power of Attorney

Each Seller hereby authorizes Administrative Agent to file such financing statement or
statements relating to the Repurchase Assets without Sellers’ signature thereon as Administrative
Agent, at its option, may deem appropriate. Each Seller hereby appoints Administrative Agent as
Sellers’ agent and attorney-in-fact to execute any such financing statement or statements in
Sellers’ name and to perform all other acts which Administrative Agent deems appropriate to perfect
and continue its ownership interest in and/or the security interest granted hereby, if applicable,
and to protect, preserve and realize upon the Repurchase Assets, including, but not limited to, the
right to endorse notes, complete blanks in documents, transfer servicing, and sign assignments on
behalf of Sellers as its agent and attorney-in-fact. This agency and power of attorney is coupled
with an interest and is irrevocable without Administrative Agent’s consent. Notwithstanding the
foregoing, the power of attorney hereby granted may be exercised only during the occurrence and
continuance of any Event of Default hereunder. Sellers shall pay the filing costs for any financing
statement or statements prepared pursuant to this Section 28.

29. Buyers and Administrative Agent May Act Through Affiliates

Buyers and Administrative Agent may, from time to time, designate one or more affiliates for
the purpose of performing any action hereunder.

30. Indemnification; Obligations

a. Each Seller agrees to hold Buyers, Administrative Agent, Group Agents and each of
their respective Affiliates and their officers, directors, employees, agents and
advisors (each, an “Indemnified Party”) harmless from and indemnify each
Indemnified Party (and will reimburse each Indemnified Party as the same is
incurred) against all liabilities, losses, damages, judgments, costs and expenses
(including, without limitation, reasonable fees and expenses of counsel) of any kind
which may be imposed on, incurred by, or asserted against any Indemnified Party
relating to or arising out of this Agreement, any Transaction Request, Purchase
Confirmation, any Program Agreement or any transaction contemplated hereby or
thereby resulting from anything other than the Indemnified Party’s gross negligence
or willful misconduct. Each Seller also agrees to reimburse each Indemnified Party
for all reasonable expenses in connection with the enforcement of this Agreement and
the exercise of any right or remedy provided for herein, any Transaction Request,
Purchase Confirmation and any Program Agreement, including, without limitation, the
reasonable fees and disbursements of counsel. Each Seller’s agreements in this
Section 30 shall survive the payment in full of the Repurchase Price and the
expiration or termination of this Agreement. Each Seller hereby acknowledges that
its obligations hereunder are recourse obligations of such Seller and are not
limited to recoveries each Indemnified Party may have with respect to the Purchased
Mortgage Loans. Each Seller also agrees not to assert any claim against Buyers,
Administrative Agent, Group Agents or any of their Affiliates, or any of their
respective officers, directors, employees, attorneys and agents, on any theory of
liability, for special, indirect, consequential or punitive damages arising out of
or otherwise relating to the facility established hereunder, the actual or proposed
use of the proceeds of the Transactions, this Agreement or any of the transactions
contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS
EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

b. Without limitation to the provisions of Section 4, if any payment of the
Repurchase Price of any Transaction is made by Sellers other than on the then
scheduled Repurchase Date thereto as a result of an acceleration of the Repurchase
Date pursuant to Section 16 or for any other reason, Sellers shall, upon demand by
Administrative Agent, pay to Administrative Agent an amount sufficient to compensate
Buyers or Administrative Agent for any losses, costs or expenses that it may
reasonably incur as of a result of such payment.

c. Without limiting the provisions of Section 30(a) hereof, if Sellers fail to pay
when due any costs, expenses or other amounts payable by them under this Agreement,
including, without limitation, fees and expenses of counsel and indemnities, such
amount may be paid on behalf of Sellers by Administrative Agent, in its sole
discretion.

31. Counterparts

This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original, and all such counterparts shall together constitute one and the same instrument.

32. Confidentiality

This Agreement and its terms, provisions, supplements and amendments, and notices hereunder,
are proprietary to Buyers, Administrative Agent and Agent and shall be held by Sellers in strict
confidence and shall not be disclosed by Sellers to any third party without the written consent of
Buyers and Administrative Agent except for (i) disclosure to Sellers’ direct and indirect
Affiliates and Subsidiaries, attorneys or accountants, but only to the extent such disclosure is
necessary and such parties agree to hold all information in strict confidence, (ii)  disclosure
required by law, rule, regulation or order of a court or other regulatory body including, without
limitation, the SEC, (iii) disclosure to Persons performing due diligence investigations of Sellers
in connection with merger or acquisition transactions or in connection with any initial public
offering involving the Sellers or their Affiliates, or (iv) disclosure in connection with any
initial public offering involving the Sellers or their Affiliates only with respect to (a) the
existence of this Repurchase Agreement, (b) the Maximum Aggregate Purchase Price, (c) the range or
average of the calculation of the Purchase Price or Price Differential, (d) the restrictive
covenants set forth in Section 14, (e) the sub-limits related to Wet-Ink Mortgage Loans, (f) the
Termination Date, (g) the date of this Agreement and (h) the aggregate Purchase Price of
outstanding Transactions as of a certain date, or (v) disclosure to Sellers’ current and
prospective warehouse lenders; and provided that, in no event shall either Seller disclose to any
current or prospective warehouse lenders any other terms other than those referred to in (iv)(a),
(b) and (d) above, including without limitation, any information with respect to the calculation of
the Purchase Price, Price Differential or any fees, without the express written consent of
Administrative Agent or as is otherwise permitted pursuant to this Section 32. Notwithstanding the
foregoing or anything to the contrary contained herein or in any other Program Agreement, the
parties hereto may disclose to any and all Persons, without limitation of any kind, the federal,
state and local tax treatment of the Transactions, any fact relevant to understanding the federal,
state and local tax treatment of the Transactions, and all materials of any kind (including
opinions or other tax analyses) relating to such federal, state and local tax treatment and that
may be relevant to understanding such tax treatment; provided that Sellers may not disclose the
name of or identifying information with respect to Buyers, Administrative Agent or Agent or any
pricing terms (including, without limitation, the Pricing Rate, Purchase Price Percentage and
Purchase Price) or other nonpublic business or financial information (including any sublimits and
financial covenants) that is unrelated to the federal, state and local tax treatment of the
Transactions and is not relevant to understanding the federal, state and local tax treatment of the
Transactions, without the prior written consent of the Buyers and Administrative Agent.

33. Recording of Communications

Buyers, Administrative Agent, Group Agents and Sellers 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. Buyers, Administrative
Agent, Group Agents and Sellers 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.

34. Actions Requiring Consent

a. Actions Requiring All Buyers’ Consent. Without the written consent or ratification
of all Buyers, the Administrative Agent shall not (by written amendment or otherwise):

(1) agree to any change to the Maximum Aggregate Purchase Price;

(2) agree to any change in the Purchase Price Percentage, Pricing Rate, Post Default Rate,
Non-Utilization Fee (all as defined in the Pricing Side Letter) or any other fee provisions
(excluding the Administrative Fee) in this Agreement or the Pricing Side Letter;

(3) release any material Lien held under the Program Agreements other than in accordance with
the Program Agreements;

(4) accept, and enter into any Transaction with a non Eligible Mortgage Loan (other than
pursuant to the Administrative Agent’s discretionary powers under Section 34(d) hereof);

(5) change any Buyer’s Purchase Price Share or Pro Rata share of a Transaction other than in
accordance with the express provisions of the Repurchase Agreements;

(6) agree to any change in the nature of the Buyers’ respective Commitments from several to
joint, in whole or in part;

(7) agree to any change to the definition of “Required Committed Buyers”;

(8) extend the Termination Date or the Payment Date other than in accordance with the express
provisions of the Program Agreements;

(9) release a Seller from any of its obligations under the Program Agreements except as set
forth in this Section 34(a); or

(10) agree to any change in this Section.

Notwithstanding the foregoing, the Administrative Agent may (by written amendment or
otherwise) extend any applicable time period in respect of, or extend any cure period applicable to
the following obligations:  (i) 14(u); (ii) Section 14(y)(ii); (iii) Section 17(a)(1) and (iv)
Section 17(a)(4); provided that (i) neither the failure to comply with such covenant at the
time required by such section nor such extension shall have a Material Adverse Effect and (ii) any
such extensions in the aggregate for any single breach shall not exceed 10 days.  The
Administrative Agent will give the JPM Group Agent prompt notice of any such extension granted
pursuant to the preceding sentence.

b. Actions Requiring Required Committed Buyers’ Consent. Without the written consent
or ratification of the Required Committed Buyers, the Administrative Agent shall not (by written
amendment or otherwise):

(1) notify the Sellers that the Buyers do not intend to enter into Transactions as a result of
the failure of the conditions precedent (specified in Section 10 of this Agreement) to be satisfied
or that the maturity of all or any part of the Repurchase Price for the Transactions shall have
been declared due unless an Event of Default described in any of Sections 15(d), (e), (h), (l) or
(m) of this Agreement shall have occurred;

(2) agree to any change to any of the conditions precedent to Transactions specified in
Section 10 of this Agreement;

(3) exercise any of the remedies for default described in Section 15 or Section 16 of this
Agreement;

(4) waive any Event of Default under the Program Agreements;

(5) make or consent to any amendment, modification or waiver of any of the terms, covenants,
provisions or conditions of the Program Agreements (other than non-material clerical corrections or
updates to notice information or Exhibit J);

(6) increase the concentration limits set forth in the definition of Asset Value (or otherwise
modify such definition), or consent to any decrease in Purchase Price (as set forth in the
definition thereof); or

(7) approve the Sellers’ declaration or payment of any distribution directly or indirectly to
the Sellers’ shareholders when any Event of Default has occurred and is continuing or, after the
payment of which dividend or distribution, would exist, to the extent prohibited by Section 14(q)
of this Agreement.

c. Actions Requiring Certain Buyers’ Consent. Without the written consent or
ratification of the Credit Suisse Buying Group or the JPM Buying Group, as applicable, the
Administrative Agent shall not (by written amendment or otherwise):

(1) agree to any change to the Maximum Credit Suisse Group Purchase Price or the Commitments
of the Committed Buyers within Credit Suisse Buying Group without the consent of the Credit Suisse
Buying Group; and

(2) agree to any change to the Maximum JPM Suisse Group Purchase Price or the
Commitments of the Committed Buyers within the JPM Buying Group without the consent of the
JPM Buying Group.

d. Administrative Agent’s Discretionary Actions. Except as provided in
Sections 34(a), 34(b) and 34(c), in its capacity as Administrative Agent and without seeking or
obtaining the consent of any of the other Buyers (although it may elect to obtain such consent
before acting it if deems that desirable), the Administrative Agent may:

(1) agree or consent to any change in the handling of the Repurchase Assets which in the
Administrative Agent’s reasonable judgment is unlikely to have a Material Adverse Effect;

(2) release, reconvey or change, in whole or in part, any Repurchase Assets which is required
to be released or reconveyed in accordance with the Program Agreements; and

(3) grant the extensions pursuant to the last sentence of Section 34(a) hereof;

(4) do or perform any act or thing which, in the Administrative Agent’s reasonable judgment,
is necessary or appropriate to enable the Administrative Agent to properly discharge and perform
its duties under this Agreement, the Custodial Agreement or any other Program Agreement, or which
in its reasonable judgment is necessary or appropriate to preserve or protect the validity,
integrity or enforceability of the Program Agreements, the Repurchase Assets, the financial
condition, operations or prospects in respect of Sellers or to preserve and protect the interest of
the Buyers in any of the foregoing.

35. No Proceedings; Waiver of Setoff

Each of the Administrative Agent, the Group Agents, the Buyers and Sellers hereby agrees that
it will not institute against, or join any other Person in instituting against any Conduit Buyer,
any proceedings of the type referred to in the definition of “Act of Insolvency” hereunder until
one year and one day shall have elapsed since the last day on which any Commercial Paper remains
outstanding.

Each of the Administrative Agent, the Group Agents, the Sellers, the Servicer, and the Buyers
hereby waive any right of setoff it may have or to which it may be entitled under this Agreement
from time to time against any Conduit Buyer or its assets.

36. Periodic Due Diligence Review

Each Seller acknowledges that each Buyer, each Group Agent and Administrative Agent have the
right to perform separate continuing due diligence reviews with respect to the Sellers and the
Mortgage Loans, for purposes of verifying compliance with the representations, warranties and
specifications made hereunder, or otherwise, and each 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 Sellers, any Buyer, any Group Agent, Administrative Agent or
their 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 Sellers and/or the Custodian. Sellers also shall make available to Buyers, Group
Agents and Administrative Agent 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, each Seller acknowledges that Administrative Agent on behalf of Buyers
may purchase Mortgage Loans from Sellers based solely upon the information provided by Sellers to
Buyers, Group Agents and Administrative Agent in the Mortgage Loan Schedule and the
representations, warranties and covenants contained herein, and that any Buyer, any Group Agent and
Administrative Agent, at their option, have the right at any time to conduct a partial or complete
separate due diligence review on some or all of the Mortgage Loans purchased in a Transaction,
including, without limitation, ordering Broker’s price opinions, new credit reports and new
appraisals on the related Mortgaged Properties and otherwise re-generating the information used to
originate such Mortgage Loan. Such Person may underwrite such Mortgage Loans themselves or engage
a mutually agreed upon third party underwriter to perform such underwriting. Each Seller agrees to
cooperate with Buyers, Group Agents, Administrative Agent and any third party underwriter in
connection with such underwriting, including, but not limited to, providing Buyers, Group Agents,
Administrative Agent 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 Sellers. Each Seller further agrees that Sellers shall pay all out-of-pocket costs
and expenses incurred by each Buyer, each Group Agent and Administrative Agent in connection with
such Buyer’s, such Group Agent’s or Administrative Agent’s activities pursuant to this Section 36
(“Due Diligence Costs”).

37. Authorizations

Any of the persons whose signatures and titles appear on Schedule 2 are authorized, acting
singly, to act for Sellers, Buyers, Group Agents or Administrative Agent, as the case may be, under
this Agreement.

38. Acknowledgement Of Anti-Predatory Lending Policies

Buyers have in place internal policies and procedures that expressly prohibit its purchase of
any High Cost Mortgage Loan.

39. Documents Mutually Drafted

The Sellers, the Group Agents, the Buyers and the Administrative Agent agree that this
Agreement each other Program Agreement prepared in connection with the Transactions set forth
herein have been mutually drafted and negotiated by each party, and consequently such documents
shall not be construed against either party as the drafter thereof.

40. General Interpretive Principles

For purposes of this Agreement, except as otherwise expressly provided or unless the context
otherwise requires:

a. the terms defined in this Agreement have the meanings assigned to them in this
Agreement and include the plural as well as the singular, and the use of any gender
herein shall be deemed to include the other gender;

b. accounting terms not otherwise defined herein have the meanings assigned to them
in accordance with generally accepted accounting principles;

c. references herein to “Articles”, “Sections”, “Subsections”, “Paragraphs”, and
other subdivisions without reference to a document are to designated Articles,
Sections, Subsections, Paragraphs and other subdivisions of this Agreement;

d. a reference to a Subsection without further reference to a Section is a reference
to such Subsection as contained in the same Section in which the reference appears,
and this rule shall also apply to Paragraphs and other subdivisions;

e. the words “herein”, “hereof”, “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular provision;

f. the term “include” or “including” shall mean without limitation by reason of
enumeration; and

g. all times specified herein or in any other Program Agreement (unless expressly
specified otherwise) are local times in New York, New York unless otherwise stated.

41. The Administrative Agent; The Group Agents

a. Appointment. Each Buyer and Group Agent hereby irrevocably designates and appoints
the Administrative Agent as the Administrative Agent of such Buyer and Group Agent under this
Agreement and the other Program Agreements, and each such Buyer and Group Agent irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on its behalf under the
provisions of this Agreement and the other Program Agreements and to exercise such powers and
perform such duties as are expressly delegated to the Administrative Agent by the terms of this
Agreement and the other Program Agreements, together with such other powers as are reasonably
incidental thereto including, without limitation, all discretionary and ministerial rights of the
Buyers and Group Agents hereunder. The signature of the Administrative Agent, delivered pursuant
to this Agreement, shall be binding on the Buyers and Group Agents hereunder and shall have the
same effect as if signed by the Buyers and Group Agents hereunder. Notwithstanding any provision
to the contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or
responsibilities to any Buyer or Group Agent, except those expressly set forth herein, or any
fiduciary relationship with any Buyer or Group Agent, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Program Agreement or otherwise exist by any Buyer or Group Agent against the Administrative Agent.
The designation and appointment of the Administrative Agent shall not release any Buyer or Group
Agent from its obligations under this Agreement.

Each Buyer in the Credit Suisse Buying Group hereby irrevocably designates and appoints the
Credit Suisse Group Agent as the Group Agent of such Buying Group and Group Agent under this
Agreement and the other Program Agreements, and each such Buyer in the Credit Suisse Buying Group
irrevocably authorizes the Credit Suisse Group Agent, in such capacity, to take such action on its
behalf under the provisions of this Agreement and the other Program Agreements and to exercise such
powers and perform such duties as are expressly delegated to the Credit Suisse Group Agent by the
terms of this Agreement and the other Program Agreements, together with such other powers as are
reasonably incidental thereto including, without limitation, all discretionary and ministerial
rights of the Buyers in the Credit Suisse Buying Group hereunder. The signature of the Credit
Suisse Group Agent, delivered pursuant to this Agreement, shall be binding on the Buyers in the
Credit Suisse Buying Group hereunder and shall have the same effect as if signed by such Buyers in
the Credit Suisse Buying Group. Notwithstanding any provision to the contrary elsewhere in this
Agreement, the Credit Suisse Group Agent shall not have any duties or responsibilities to any Buyer
in the Credit Suisse Buying Group, except those expressly set forth herein, or any fiduciary
relationship with any Buyer in the Credit Suisse Buying Group, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Program Agreement or otherwise exist by any Buyer in the Credit Suisse Buying Group against the
Credit Suisse Group Agent. The designation and appointment of the Credit Suisse Group Agent shall
not release any Buyer in the Credit Suisse Buying Group from its obligations under this Agreement.

Each Buyer in the JPM Buying Group hereby irrevocably designates and appoints the JPM Group
Agent as the Group Agent of such Buying Group and Group Agent under this Agreement and the other
Program Agreements, and each such Buyer in the JPM Buying Group irrevocably authorizes the JPM
Group Agent, in such capacity, to take such action on its behalf under the provisions of this
Agreement and the other Program Agreements and to exercise such powers and perform such duties as
are expressly delegated to the JPM Group Agent by the terms of this Agreement and the other Program
Agreements, together with such other powers as are reasonably incidental thereto including, without
limitation, all discretionary and ministerial rights of the Buyers in the JPM Buying Group
hereunder. The signature of the JPM Group Agent, delivered pursuant to this Agreement, shall be
binding on the Buyers in the JPM Buying Group hereunder and shall have the same effect as if signed
by such Buyers in the JPM Buying Group. Notwithstanding any provision to the contrary elsewhere in
this Agreement, the JPM Group Agent shall not have any duties or responsibilities to any Buyer in
the JPM Buying Group, except those expressly set forth herein, or any fiduciary relationship with
any Buyer in the JPM Buying Group, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Program Agreement or
otherwise exist by any Buyer in the JPM Buying Group against the JPM Group Agent. The designation
and appointment of the JPM Group Agent shall not release any Buyer in the JPM Buying Group from its
obligations under this Agreement.

b. Delegation of Duties. Each of the Administrative Agent and Group Agents may
execute any of its duties under this Agreement and the other Program Agreements by or through
agents or attorneys-in- fact and shall be entitled to advice of counsel concerning all matters
pertaining to such duties. Each of the Administrative Agent and Group Agents shall not be
responsible for the negligence to misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

c. Exculpatory Provisions. Neither the Administrative Agent, the Group Agents nor any
of their officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be
(i) liable for any action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Program Agreement (except for its or such Person’s own
gross negligence or willful misconduct) or (ii) responsible in any manner to any of the Buyers for
any recitals statements, representations or warranties made by the Sellers or any officer thereof
contained in this Agreement or any other Program Agreement or in any certificate, report,
statements or other document referred to or provided for in, or received by the Administrative
Agent or any Group Agents under or in connection with, this Agreement or any other Program
Agreement or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or any other Program Agreement or for any failure of the Sellers to perform their
obligations hereunder or thereunder. Neither the Administrative Agent nor the Group Agents shall
be under any obligation to any Buyer to ascertain or to inquire as to the observance or performance
of any of the agreements contained in, or conditions of, this Agreement or any other Program
Agreement, or to inspect the properties, books or records of the Sellers. The parties expressly
acknowledge that (a) Administrative Agent’s obligations under the Agreement shall not include a
guarantee of performance by the Buyers or the Group Agents, (b) each Group Agent’s obligations
under the Agreement shall not include a guarantee of performance by the Buyers, and (b) the other
party’s remedies shall not include a right of setoff in respect of rights or obligations, if any,
of Administrative Agent or any Group Agent arising in other transactions in which Administrative
Agent or Group Agent is acting as principal.

d. Reliance by Administrative Agent; Group Agents. The Administrative Agent and each
Group Agent shall be entitled to rely, and shall be fully protected in relying, upon any
Transaction Request, writing, resolution, notice, consent, certificate, affidavit, letter,
cablegram, telegram, telecopy, telex, or teletype message, statement, order or other document or
conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel (including counsel to the
Sellers or any other party to this Agreement), independent accountants and other experts selected
by the Administrative Agent or any Group Agent. The Administrative Agent and each Group Agent
shall be fully justified in failing or refusing to take any action under this Agreement or any
other Program Agreement unless it shall first receive such advice or concurrence of the Required
Committed Buyers as it deems appropriate or it shall first be indemnified to its satisfaction by
the Buyers against any and all liability and expense which may be incurred by it by reason of
taking or continuing to take any such action. The Administrative Agent and each Group Agent shall
in all cases be fully protected in acting, or in refraining from acting, under this Agreement and
the other Program Agreement in accordance with a request of Required Committed Buyers, and such
request and any action taken or failure to act pursuant thereto shall be binding upon all the
Buyers and all future holders of the Purchased Mortgage Loans.

e. Notices. Any (i) notices, requests, confirmations, Mortgage Loan Schedules, Trust
Receipts, Income, cash or additional Mortgage Loans to be received by any Buyer or Group Agent and
(ii) judgments, approvals, agreements, determinations or notices to be made by any Buyer or Group
Agent under this Agreement shall be delivered to and made by the Administrative Agent. Any
(i) notices, requests, confirmations, Mortgage Loan Schedules, Trust Receipts, Income, cash or
additional Mortgage Loans to be received by any Buyer and (ii) judgments, approvals, agreements,
determinations or notices to be made by any Buyer under this Agreement shall be delivered to and
made by such Buyer’s Group Agent. Notwithstanding any provision to the contrary elsewhere in this
Agreement, none of the Group Agents or the Administrative Agent shall be deemed to have knowledge
or notice of the occurrence of any Event of Default hereunder unless such Group Agent or the
Administrative Agent has received notice from a Buyer or the Sellers referring to this Agreement,
describing such Event of Default and stating that such notice is a “notice of default”. In the
event that the Administrative Agent receives such a notice, the Administrative Agent shall give
notice thereof to the Buyers. The Administrative Agent shall take such action with respect to such
Event of Default as shall be reasonably directed by the Required Committed Buyers; provided that
unless and until the Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Event of Default as it shall deem advisable in the best interests of the
Buyers. The Administrative Agent shall provide to the Buyers, on each Business Day, the rate of
the Pricing Differential and, not later than the opening of business on the Business Day following
the receipt thereof by the Administrative Agent, a copy of the most recent margin base report.

f. Non-Reliance on Administrative Agent, Group Agents and Other Buyers. Each Buyer
and each Group Agent expressly acknowledges that neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Administrative Agent hereinafter taken,
including any review of the affairs of the Sellers, shall be deemed to constitute any
representation or warranty by the Administrative Agent to any Buyer or any Group Agent. Each Buyer
and Group Agent represents to the Administrative Agent that it has, independently and without
reliance upon the Administrative Agent or any other Buyer or any other Group Agent, and based on
such documents and information as it deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other condition and
creditworthiness of the Sellers and made its own decision to enter into Transactions and purchase
its interests hereunder and enter into this Agreement. Each Buyer and each Group Agent also
represents that it will, independently and without reliance upon the Administrative Agent or any
other Buyer or any other Group Agent, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Program Agreements, and to make such
investigation as it deems necessary to inform itself as to the business, operations, property,
financial and other conditions and creditworthiness of the Sellers. Except for notices, reports
and other documents expressly required to be furnished to the Buyers and the Group Agents by the
Administrative Agent hereunder or other under the other Program Agreement, the Administrative Agent
shall not have any duty or responsibility to provide any Buyer or any Group Agent with any credit
or other information concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of the Sellers which may come into the possession of the
Administrative Agent or any of its officers, directors, employees, agents attorneys-in-fact or
Affiliates.

Each Buyer expressly acknowledges that neither its respective Group Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by such Group Agent hereinafter taken,
including any review of the affairs of the Sellers, shall be deemed to constitute any
representation or warranty by such Group Agent to any Buyer. Each Buyer represents to its
respective Group Agent that it has, independently and without reliance upon such Group Agent or any
other Buyer or any other Group Agent, and based on such documents and information as it deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Sellers and made its own decision to
enter into Transactions and purchase its interests hereunder and enter into this Agreement. Each
Buyer also represents that it will, independently and without reliance upon its respective Group
Agent or any other Buyer or any other Group Agent, and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and
decisions in taking or not taking action under this Agreement and the other Program Agreements, and
to make such investigation as it deems necessary to inform itself as to the business, operations,
property, financial and other conditions and creditworthiness of the Sellers. Except for notices,
reports and other documents expressly required to be furnished to the Buyer by such Buyer’s
respective Group Agent hereunder or other under the other Program Agreement, the Group Agent shall
not have any duty or responsibility to provide any Buyer with any credit or other information
concerning the business, operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Sellers which may come into the possession of such Group Agent or any of
its officers, directors, employees, agents attorneys-in-fact or Affiliates.

g. Indemnification. The Committed Buyers agree to indemnify the Administrative Agent
in its capacity as such (to the extent not reimbursed by the Sellers and without limiting or
expanding the obligation of the Sellers to do so), ratably according to their respective Pro Rata
Shares in effect on the date on which indemnification is sought, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time (including, without limitation, at any
time following the payment of the Repurchase Price) be imposed on, incurred by or asserted against
the Administrative Agent in any way relating to or arising out of, this Agreement, any of the other
Program Agreements or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by the Administrative
Agent under or in connection with any of the foregoing; provided that no Committed Buyer shall be
liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting solely from the
Administrative Agent’s gross negligence or willful misconduct. The agreements in this Section
shall survive the payment of the Repurchase Prices and all other amounts payable hereunder.

The Committed Buyers in the Credit Suisse Buying Group agree to indemnify the Credit Suisse
Group Agent in its capacity as such (to the extent not reimbursed by the Sellers and without
limiting or expanding the obligation of the Sellers to do so), ratably according to their
respective pro rata share of the Maximum Credit Suisse Group Purchase Price in effect on the date
on which indemnification is sought, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including, without limitation, at any time following the payment
of the Repurchase Price) be imposed on, incurred by or asserted against the Credit Suisse Group
Agent in any way relating to or arising out of, this Agreement, any of the other Program Agreements
or any documents contemplated by or referred to herein or therein or the transactions contemplated
hereby or thereby or any action taken or omitted by the Credit Suisse Group Agent under or in
connection with any of the foregoing; provided that no Committed Buyer in the Credit Suisse Buying
Group shall be liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely
from the Credit Suisse Group Agent’s gross negligence or willful misconduct. The agreements in
this Section shall survive the payment of the Repurchase Prices and all other amounts payable
hereunder.

The Committed Buyers in the JPM Buying Group agree to indemnify the JPM Group Agent in its
capacity as such (to the extent not reimbursed by the Sellers and without limiting or expanding the
obligation of the Sellers to do so), ratably according to their respective pro rata share of the
Maximum JPM Group Purchase Price in effect on the date on which indemnification is sought, from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including,
without limitation, at any time following the payment of the Repurchase Price) be imposed on,
incurred by or asserted against the JPM Group Agent in any way relating to or arising out of, this
Agreement, any of the other Program Agreements or any documents contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted
by the JPM Group Agent under or in connection with any of the foregoing; provided that no Committed
Buyer in the JPM Buying Group shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting solely from the JPM Group Agent’s gross negligence or willful misconduct.
The agreements in this Section shall survive the payment of the Repurchase Prices and all other
amounts payable hereunder.

h. Administrative Agent in Its Individual Capacity. The Administrative Agent and its
Affiliates may purchase assets from, make loans to, accept deposits from and generally engage in
any kind of business with the Sellers as though the Administrative Agent were not the
Administrative Agent hereunder and under the other Program Agreements. With respect to the
Transactions entered into by it and the interests purchased made by it, the Administrative Agent
shall have the same rights and powers under this Agreement and the other Program Agreements as any
Buyer and may exercise the same as though it were not the Administrative Agent, and the terms
“Buyer” and “Buyers” shall include the Administrative Agent in its individual capacity.

i. Group Agents in their Individual Capacity. Each Group Agent and its Affiliates may
purchase assets from, make loans to, accept deposits from and generally engage in any kind of
business with the Sellers as though such Group Agent were not a Group Agent hereunder and under the
other Program Agreements. With respect to the Transactions entered into by it and the interests
purchased made by it, each Group Agent shall have the same rights and powers under this Agreement
and the other Program Agreements as any Buyer and may exercise the same as though it were not a
Group Agent, and the terms “Buyer” and “Buyers” shall include such Group Agent in its individual
capacity.

j. Successor Administrative Agent. The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Buyers. If the Administrative Agent shall resign
as Administrative Agent under this Agreement and the other Program Agreements, then the Required
Committed Buyers shall appoint from among the Buyers a successor Administrative Agent for the
Buyers, which successor Administrative Agent shall be approved by the Sellers (unless an Event of
Default has occurred and is continuing), and any such successor Administrative Agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term “Administrative Agent”
shall mean such successor Administrative Agent effective upon such appointment and approval, and
the former Administrative Agent’s rights, powers and duties as Administrative Agent shall be
terminated, without any other or further act or deed on the part of such former Administrative
Agent or any of the parties to this Agreement or any holders of the Purchased Mortgage Loans or the
Interests. If no successor Administrative Agent has been appointed and shall have accepted such
appointment within 30 days after the retiring Administrative Agent’s giving notice of its
resignation, then the retiring Administrative Agent, on behalf of the Buyers, may appoint a
Administrative Agent which shall be a Buyer or a commercial bank organized under the laws of the
United States of America or any State thereof and having a combined capital and surplus of at least
$100,000,000 and which shall (unless and Event of Default has occurred and is continuing) be
reasonably acceptable to the Sellers. Upon the acceptance of any appointment as the Administrative
Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its
duties and obligations, under this Agreement and the other Program Agreements. After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of this Section 36 shall
inure to the benefit as to any actions taken or omitted to be taken by it while it was Buyer under
this Agreement and the other Program Agreements.

Any Group Agent may resign as Group Agent upon 30 days’ notice to the Buyers in its respective
Buying Group. If a Group Agent shall resign as Group Agent under this Agreement and the other
Program Agreements, then the Required Committed Buyers in such Group Agent’s Buying Group shall
appoint from among the Buyers in such Buying Group a successor Group Agent for such Buyers, and any
such successor Group Agent shall succeed to the rights, powers and duties of the Group Agent, and
the term “Group Agent” shall mean such successor Group Agent effective upon such appointment and
approval, and the former Group Agent’s rights, powers and duties as Group Agent shall be
terminated, without any other or further act or deed on the part of such former Group Agent or any
of the parties to this Agreement or any holders of the Purchased Mortgage Loans or the Interests.
If no successor Group Agent has been appointed and shall have accepted such appointment within 30
days after the retiring Group Agent’s giving notice of its resignation, then the retiring Group
Agent, on behalf of the Buyers in such Buying Group, may appoint a Group Agent. Upon the
acceptance of any appointment as the Group Agent hereunder by a successor Group Agent, such
successor Group Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Group Agent, and the retiring Group Agent shall be discharged
from its duties and obligations, under this Agreement and the other Program Agreements. After any
retiring Group Agent’s resignation as Group Agent, the provisions of this Section 36 shall inure to
the benefit as to any actions taken or omitted to be taken by it while it was Buyer under this
Agreement and the other Program Agreements.

k. Rights and Obligations of Sellers Not Affected. It is understood that the
provisions of this Section 36 are intended to control the relationship between the Administrative
Agent or Group Agents on the one hand and Buyers on the other hand, and nothing set forth herein
shall be deemed to diminish or add to any rights of Sellers hereunder or to impose additional
obligations on Sellers, except that any dealings by the Sellers with the Administrative Agent or
Group Agents shall be deemed to satisfy such requirement to deal with the Buyer hereunder.

l. Action Upon Certain Events. To the extent the Administrative Agent is entitled to
grant approvals or consent to or withhold its consent of any waiver or amendment or, except those
items set forth in Section 34(a), (b) and (c), take any action or exercise any rights under this
Agreement or other Program Agreements in accordance with the terms hereof or thereof, or otherwise
take action upon the occurrence of an Event of Default, the Administrative Agent shall (i) give
prompt notice to the Buyers of any such request for an approval, waiver, amendment, right or Event
of Default of which it is aware and (ii) take such action with respect to such request for
approval, waiver, amendment, right or Event of Default as shall be directed by the Required
Committed Buyers.

42. Wire Instructions

a. Any amounts to be transferred by the Buyers, the Group Agents or the
Administrative Agent to Sellers hereunder shall be sent by wire transfer in
immediately available funds to the account of Sellers at:

JPMorgan Chase Bank, National Association

ABA# 021000021

Account # 00113326327

Account Name: FIC Operating Account

b. Any amounts to be transferred by Sellers to the Administrative Agent or the
Credit Suisse Group Agent (for the account of the Credit Suisse Buying Group)
hereunder shall be sent by wire transfer in immediately available funds to the
account of the Administrative Agent at:

Bank of New York

ABA# 021-000-018

Account # 890-038-7025

Account Name: Alpine Securitization Corp.

c. Any amounts to be transferred to the JPM Group Agent (for the account of the JPM
Buying Group) hereunder shall be sent by wire transfer in immediately available
funds to the account of the JPM Group Agent at:

Falcon Asset Securitization Company LLC

JPMorgan Chase Bank, N.A.

ABA# 021000021

Acct # 5114810

SWIFT address: CHASUS33XXX

d. Any amounts to be transferred to the Buyers in the Credit Suisse Buying Group
hereunder shall be sent by wire transfer in immediately available funds to the
account of the applicable Buyers at:

Bank of New York

ABA# 021-000-018

Account # 890-038-7025

Account Name: Alpine Securitization Corp.

e. Any amounts to be transferred to the Buyers in the JPM Buying Group hereunder
shall be sent by wire transfer in immediately available funds to the account of the
applicable Buyers at:

Falcon Asset Securitization Company LLC

JPMorgan Chase Bank, N.A.

ABA# 021000021

Acct # 5114810

SWIFT address: CHASUS33XXX

f. Amounts received after 2:00 p.m., New York City time, on any Business Day shall
be deemed to have been paid and received on the next succeeding Business Day.

43. Joint and Several

Sellers, Administrative Agent, Group Agents and Buyers hereby acknowledge and agree that the
Sellers are each jointly and severally liable to Buyers, Group Agents and Administrative Agent for
all of their respective obligations hereunder.

44. Amendments and Waivers

Neither this Agreement nor any other Program Agreement, nor any terms hereof or thereof may be
amended, supplemented, waived or modified except in accordance with the provisions of Section 34.
All amendments, supplements, modifications and waivers will be effective if executed by each
Seller, the Administrative Agent and each Committed Buyer whose consent is required pursuant to
Section 34. Any such waiver and any such amendment, supplement or modification shall apply equally
to each of the Buyers and shall be binding upon Sellers, the Buyers, the Group Agents, the
Administrative Agent and all future holders of Purchased Mortgage Loans. In the case of any
waiver, Sellers, the Buyers, the Group Agents and the Administrative Agent shall be restored to
their former positions and rights hereunder and under the other Program Agreements, and any Event
of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend
to any subsequent or other Event of Default or impair any right consequent thereon.

[Signature Page Follows]

3

IN WITNESS WHEREOF, each party has caused its name to be signed hereto by its respective
officers thereunto duly authorized as of the date first above written.

FIELDSTONE MORTGAGE COMPANY, as Seller

By: /s/ Mark C. Krebs

Name: Mark C. Krebs

Title: Sr. Vice President & Treasurer

FIELDSTONE INVESTMENT CORPORATION, as Seller

By:  /s/ Mark C. Krebs

Name: Mark C. Krebs

Title: Sr. Vice President & Treasurer

CREDIT SUISSE, NEW YORK BRANCH, as Administrative Agent and as a
Group Agent

By: /s/ Anthony Giordano

Name: Anthony Giordano

Title: Director

By: /s/ Joseph Soave

Name: Joseph Soave

Title: Director

The JPMorgan Buying Group:

FALCON ASSET SECURITIZATION COMPANY LLC

By: JPMorgan Chase Bank, N.A., its attorney-in-fact

By: /s/ Daniel J. Clarke, Jr.

Name: Daniel J. Clarke, Jr.

Title: Managing Director

JPMORGAN CHASE BANK, N.A., as a Group Agent and as a Committed

Buyer

By: /s/ Daniel J. Clarke, Jr.

Name: Daniel J. Clarke, Jr.

Title: Managing Director

The Alpine Buying Group:

ALPINE SECURITIZATION CORP., as a Conduit Buyer

By: /s/ Mark Lengel

Name: Mark Lengel

Title: Director

By: /s/ Mark Golombeck

Name: Mark Golombeck

Title: Director

CREDIT SUISSE, NEW YORK BRANCH, individually and as a Committed
Buyer

By: /s/ Joseph Soave

Name: Joseph Soave

Title: Director

By: /s/ Anthony Giordano

Name: Anthony Giordano

Title: Director

4

SCHEDULE 1

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO PURCHASED MORTGAGE LOANS

With respect to those representations and warranties which are made to the best of each
Seller’s knowledge, if it is discovered by the Sellers, the Group Agents, the Buyers or the
Administrative Agent that the substance of such representation and warranty is inaccurate and such
inaccuracy materially and adversely affects the value of the related Mortgage Loan or the interest
of the Buyers, notwithstanding the Sellers’ lack of knowledge with respect to the substance of such
representation and warranty, such inaccuracy shall be deemed a breach of the applicable
representation and warranty.

(a) Payments Current. No payment required under the Mortgage Loan is delinquent more
than 30 days nor has any payment under the Mortgage Loan been delinquent more than 30 days at any
time since the origination of the Mortgage Loan. The first Monthly Payment shall be made, or shall
have been made, with respect to the Mortgage Loan on its Due Date or within the grace period, all
in accordance with the terms of the related Mortgage Note.

(b) No Outstanding Charges. All taxes, governmental assessments, insurance premiums,
water, sewer and municipal charges, leasehold payments or ground rents which previously became due
and owing have been paid. Neither Sellers nor the Qualified Originator from which Sellers acquired
the Mortgage Loan has advanced funds, or induced, solicited or knowingly received any advance of
funds by a party other than the Mortgagor, directly or indirectly, for the payment of any amount
required under the Mortgage Loan, except for interest accruing from the date of the Mortgage Note
or date of disbursement of the proceeds of the Mortgage Loan, whichever is earlier, to the day
which precedes by one month the Due Date of the first installment of principal and interest
thereunder.

(c) Original Terms Unmodified. The terms of the Mortgage Note and Mortgage have not
been impaired, waived, altered or modified in any respect, from the date of origination; except by
a written instrument which has been recorded, if necessary to protect the interests of Buyers, and
which has been delivered to the Custodian and the terms of which are reflected in the Mortgage Loan
Schedule. The substance of any such waiver, alteration or modification has been approved by the
title insurer, to the extent required, and its terms are reflected on the Mortgage Loan Schedule.
No Mortgagor in respect of the Mortgage Loan has been released, in whole or in part, except in
connection with an assumption agreement approved by the title insurer, to the extent required by
such policy, and which assumption agreement is part of the Mortgage File delivered to the Custodian
and the terms of which are reflected in the Mortgage Loan Schedule.

(d) No Defenses. The Mortgage Loan is not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render either the Mortgage Note or the Mortgage unenforceable, in whole or in part and
no such right of rescission, set-off, counterclaim or defense has been asserted with respect
thereto, and to the best of Sellers’ knowledge, since the date of origination of the Mortgage Loan,
the Mortgaged Property has not been subject to any bankruptcy proceeding or foreclosure proceeding
and the Mortgagor has not filed for protection under applicable bankruptcy laws. Seller has no
knowledge nor has it received any notice that any Mortgagor in respect of the Mortgage Loan is a
debtor in any state or federal bankruptcy or insolvency proceeding.

(e) Hazard Insurance. The Mortgage Loan obligates the Mortgagor thereunder to
maintain a hazard insurance policy issued by a Qualified Insurer (“hazard insurance”) in an
amount at least equal to the lesser of (i) the amount necessary to fully compensate for any damage
or loss to the improvements which are part of such Mortgaged Property on a replacement cost basis
and (ii) the outstanding principal balance of the Mortgage Loan, in either case in an amount
sufficient to avoid the application of any “co-insurance provisions and consistent with the amount
that would have been required as of the date of origination in accordance with the Underwriting
Guidelines”, and, if it was in place at origination of the Mortgage Loan, flood insurance, at the
Mortgagor’s cost and expense. If the Mortgaged Property is in an area identified by any federal
Governmental Authority in the Federal Register as having special flood hazards, a flood insurance
policy is in effect which met the requirements of Federal Emergency Management Agency at the time
such policy was issued. The Mortgage obligates the Mortgagor to maintain the hazard insurance and,
if applicable, flood insurance policy at the Mortgagor’s cost and expense, and on the Mortgagor’s
failure to do so, authorizes the holder of the Mortgage to obtain and maintain such insurance at
the Mortgagor’s cost and expense, and to seek reimbursement therefor from the Mortgagor. The
Mortgaged Property is covered by hazard insurance. The Hazard Insurance policies contain a
standard mortgagee clause naming the applicable Seller, its successors and assigns (including,
without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced,
terminated or canceled without 30 days’ prior written notice to the mortgagee. No such notice has
been received by Sellers. All premiums on such insurance policy have been paid. Where required by
state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the
required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance
policy covering a condominium, or any hazard insurance policy covering the common facilities of a
planned unit development. The hazard insurance policy is the valid and binding obligation of the
insurer and is in full force and effect. The applicable Seller has not engaged in, and has no
knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage
of any such policy, the benefits of the endorsement provided for herein, or the validity and
binding effect of either including, without limitation, no unlawful fee, commission, kickback or
other unlawful compensation or value of any kind has been or will be received, retained or realized
by any attorney, firm or other Person, and no such unlawful items have been received, retained or
realized by Sellers.

(f) Compliance with Applicable Laws. Any and all requirements of any federal, state
or local law including, without limitation, usury, truth-in-lending, real estate settlement
procedures, consumer credit protection, equal credit opportunity or disclosure laws applicable to
the Mortgage Loan have been complied with, the consummation of the transactions contemplated hereby
will not involve the violation of any such laws or regulations, and Seller shall maintain or shall
cause its agent to maintain in its possession, available for the inspection of Buyers, Group Agents
or Administrative Agent, and shall deliver to Administrative Agent and Group Agents, upon demand,
evidence of compliance with all such requirements.

(g) No Satisfaction of Mortgage. The Mortgage has not been satisfied, canceled,
subordinated (except in the case of a Second Lien Mortgage Loan, to the first Mortgage Loan) or
rescinded, in whole or in part (except for a release that does not materially impair the security
of the Mortgage Loan or a release the effect of which is reflected in the loan-to-value ratio for
the Mortgage Loan as set forth in the Mortgage Loan Schedule), and the Mortgaged Property has not
been released from the lien of the Mortgage, in whole or in part, nor has any instrument been
executed that would effect any such release, cancellation, subordination or rescission. The
applicable Seller has not waived the performance by the Mortgagor of any action, if the Mortgagor’s
failure to perform such action would cause the Mortgage Loan to be in default, nor has Seller
waived any default resulting from any action or inaction by the Mortgagor.

(h) Location and Type of Mortgaged Property. The Mortgaged Property is located in an
Acceptable State as identified in the Mortgage Loan Schedule and consists of either (i) a single
parcel of real property or (ii) more than one parcel of real property (as determined for tax
purposes only) which parcels are contiguous and are subject to a single deed or title, in each
case, with a detached single family residence erected thereon, or a two- to four-family dwelling,
or an individual condominium unit in a low-rise condominium project, or an individual unit in a
planned unit development or a de minimis planned unit development; provided, however, that any
condominium unit or planned unit development shall conform with the applicable Fannie Mae and
Freddie Mac requirements regarding such dwellings or shall conform to underwriting guidelines
acceptable to Administrative Agent in its sole discretion and that no residence or dwelling is a
mobile home. No portion of the Mortgaged Property is used for commercial purposes; provided, that,
the Mortgaged Property may be a mixed use property if such Mortgaged Property conforms to
underwriting guidelines acceptable to Administrative Agent in its sole discretion.

(i) Valid First or Second Lien. The related Mortgage is a valid, subsisting,
enforceable and perfected (a) with respect to each first lien Mortgage Loan, first priority lien
and first priority security interest, or (b) with respect to each Second Lien Mortgage Loan, second
priority lien and second priority security interest, in each case, on the real property included in
the Mortgaged Property, including all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems located in or annexed to
such buildings, and all additions, alterations and replacements made at any time with respect to
the foregoing. The lien of the Mortgage is subject only to:

(1) the lien of current real property taxes and assessments not yet due and payable;

(2) covenants, conditions and restrictions, rights of way, easements and other matters of the
public record as of the date of recording acceptable to prudent mortgage lending institutions
generally and specifically referred to in Buyer’s title insurance policy delivered to the
originator of the Mortgage Loan and (a) referred to or otherwise considered in the appraisal made
for the originator of the Mortgage Loan or (b) which do not adversely affect the Appraised Value of
the Mortgaged Property set forth in such appraisal;

(3) other matters to which like properties are commonly subject which do not materially
interfere with the benefits of the security intended to be provided by the Mortgage or the use,
enjoyment, value or marketability of the related Mortgaged Property;

(4) with respect to each Mortgage Loan which is a Second Lien Mortgage Loan a first lien on
the Mortgaged Property; and

(5) in the case of a Mortgaged Property that is a condominium or an individual unit in a
planned unit development, liens for common charges permitted by statute.

Any security agreement, chattel mortgage or equivalent document related to and delivered in
connection with the Mortgage Loan establishes and creates a valid, subsisting and enforceable
(i) with respect to each first lien Mortgage Loan, first priority lien and first priority security
interest, or (ii) with respect to each Second Lien Mortgage Loan, second priority lien and second
priority security interest, in each case, on the property described therein and Seller has full
right to pledge and assign the same to Administrative Agent for the benefit of the Buyers.

(j) Validity of Mortgage Documents. The Mortgage Note and the Mortgage and any other
agreement executed and delivered by a Mortgagor, if applicable, in connection with a Mortgage Loan
are genuine, and each is the legal, valid and binding obligation of the maker thereof enforceable
in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, receivership, moratorium or other similar laws relating to or affecting the rights
of creditors generally, and by general equity principles (regardless of whether such enforcement is
considered in a proceeding in equity or at law). All parties to the Mortgage Note, the Mortgage
and any other such related agreement had legal capacity to enter into the Mortgage Loan and to
execute and deliver the Mortgage Note, the Mortgage and any such agreement, and the Mortgage Note,
the Mortgage and any other such related agreement have been duly and properly executed by such
related parties.

(k) Full Disbursement of Proceeds. There is no further requirement for future
advances under the Mortgage Loan, and any and all requirements as to completion of any on-site or
off-site improvement and as to disbursements of any escrow funds therefor have been complied with.
All costs, fees and expenses incurred in making or closing the Mortgage Loan and the recording of
the Mortgage were paid, and the Mortgagor is not entitled to any refund of any amounts paid or due
under the Mortgage Note or Mortgage.

(l) Ownership. The applicable Seller is the sole owner of record and holder of the
Mortgage Loan. The Mortgage Loan is not assigned or pledged except as provided in this Agreement
and Sellers have good and marketable title thereto, and have full right to pledge and assign the
Mortgage Loan to Buyers or their designees free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest, and has full right and authority
subject to no interest or participation of, or agreement with, any other party, to sell each
Mortgage Loan pursuant to this Agreement.

(m) Doing Business. All parties which have had any interest in the Mortgage Loan,
whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (i) in compliance with any and all applicable licensing
requirements of the laws of the state wherein the Mortgaged Property is located, and (ii) either
(A) organized under the laws of such state, (B) qualified to do business in such state, (C) a
federal savings and loan association, a savings bank or a national bank having a principal office
in such state, or (D) not doing business in such state; provided, if a warehouse lender that was
the assignee of the Mortgage Loans was not authorized to do business in the jurisdiction where the
Mortgaged Property is located, the applicable Seller represents and warrants that the financing of
the Mortgage Loan and the holding of an interest in the Mortgage Loan by the warehouse lender did
not constitute doing business in that jurisdiction.

(n) Title Insurance. The Mortgage Loan is covered by either (i) an attorney’s opinion
of title and abstract of title, the form and substance of which is acceptable to prudent mortgage
lending institutions making mortgage loans in the area wherein the Mortgaged Property is located or
(ii) an ALTA lender’s title insurance policy or other generally acceptable form of policy or
insurance acceptable to Fannie Mae or Freddie Mac and each such title insurance policy is issued by
a title insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring the related Seller, its successors
and assigns, as to the first or second priority lien of the Mortgage, as applicable, in the
original principal amount of the Mortgage Loan (or to the extent a Mortgage Note provides for
negative amortization, the maximum amount of negative amortization in accordance with the
Mortgage), subject only to the exceptions contained in clauses (1), (2) and (3) and, with respect
to Second Lien Mortgage Loans, clause (4) of paragraph (i) of this Schedule 1, and in the
case of adjustable rate Mortgage Loans, against any loss by reason of the invalidity or
unenforceability of the lien resulting from the provisions of the Mortgage providing for adjustment
to the Mortgage Interest Rate and Monthly Payment. Where required by state law or regulation, the
Mortgagor has been given the opportunity to choose the carrier of the required mortgage title
insurance. Additionally, such lender’s title insurance policy affirmatively insures ingress and
egress and against encroachments by or upon the Mortgaged Property or any interest therein. The
title policy does not contain any special exceptions (other than the standard exclusions) for
zoning and uses and has been marked to delete the standard survey exception or to replace the
standard survey exception with a specific survey reading. The related Seller, its successors and
assigns, are the sole insureds of such lender’s title insurance policy, and such lender’s title
insurance policy is valid and remains in full force and effect and will be in force and effect upon
the consummation of the transactions contemplated by this Agreement. No claims have been made under
such lender’s title insurance policy, and no prior holder or servicer of the related Mortgage,
including the related Seller, has done, by act or omission, anything which would impair the
coverage of such lender’s title insurance policy, including without limitation, no unlawful fee,
commission, kickback or other unlawful compensation or value of any kind has been or will be
received, retained or realized by any attorney, firm or other Person, and no such unlawful items
have been received, retained or realized by the related Seller.

(o) No Event of Defaults. There is no material default, breach, violation or event of
acceleration existing under the Mortgage or the Mortgage Note which, with the passage of time or
with notice and the expiration of any grace or cure period, would constitute a material default,
breach, violation or event of acceleration, and neither any Seller nor its predecessors have waived
any default, breach, violation or event of acceleration.

(p) No Mechanics’ Liens. To the best of any Seller’s knowledge, there are no
mechanics’ or similar liens or claims which have been filed for work, labor or material (and no
rights are outstanding that under the law could give rise to such liens) affecting the Mortgaged
Property which are or may be liens prior to, or equal or coordinate with, the lien of the Mortgage.

(q) Location of Improvements; No Encroachments. Except as may be expressly noted and
considered in the appraisal of the Mortgaged Property, all improvements which were considered in
determining the Appraised Value of the Mortgaged Property lie wholly within the boundaries and
building restriction lines of the Mortgaged Property, and no improvements on adjoining properties
encroach upon the Mortgaged Property unless there exists in the Mortgage File a title policy with
endorsements which insure against losses sustained by the insured as a result of such
encroachments. No improvement located on or being part of the Mortgaged Property is in violation
of any applicable zoning and building law, ordinance or regulation.

(r) Origination; Payment Terms. The Mortgage Loan was originated by or in conjunction
with a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections
203 and 211 of the National Housing Act, a savings and loan association, a savings bank, a
commercial bank, credit union, insurance company or similar banking institution which is supervised
and examined by a federal or state authority. Principal and/or interest payments on the Mortgage
Loan commenced no more than 60 days after funds were disbursed in connection with the Mortgage
Loan. With respect to adjustable rate Mortgage Loans, the Mortgage Interest Rate is adjusted on
each Interest Rate Adjustment Date to equal the Index plus the Gross Margin (rounded up or down to
the nearest .125%), subject to the Mortgage Interest Rate Cap. The Mortgage Note is payable on the
first day of each month in equal monthly installments of principal and/or interest (subject to a
balloon payment in the case of a 30/40 Mortgage Loan and an “interest only” period in the case of
Interest Only Loans), which installments of interest (a) with respect to adjustable rate Mortgage
Loans are subject to change on the Interest Rate Adjustment Date due to adjustments to the Mortgage
Interest Rate on each Interest Rate Adjustment Date and (b) with respect to Interest Only Loans are
subject to change on the Interest Only Adjustment Date due to adjustments to the Mortgage Interest
Rate on each Interest Only Adjustment Date, in both cases with interest calculated and payable in
arrears, sufficient to amortize the Mortgage Loan fully by the stated maturity date, over an
original term of not more than 30 years from commencement of amortization (except with respect to
any 30/40 Mortgage Loans). No 30/40 Mortgage Loan has a balloon payment due prior to the date
which is 15 years following the origination date. The Due Date of the first payment under the
Mortgage Note is no more than 60 days from the date of the Mortgage Note.

(s) Customary Provisions. The Mortgage Note has a stated maturity. The Mortgage
contains customary and enforceable provisions such as to render the rights and remedies of the
holder thereof adequate for the realization against the Mortgaged Property of the benefits of the
security provided thereby, including, (i) in the case of a Mortgage designated as a deed of trust,
by trustee’s sale, and (ii) otherwise by judicial foreclosure. Upon default by a Mortgagor on a
Mortgage Loan and foreclosure on, or trustee’s sale of, the Mortgaged Property pursuant to the
proper procedures, the holder of the Mortgage Loan will be able to deliver good and merchantable
title to the Mortgaged Property. There is no homestead or other exemption available to a Mortgagor
which would interfere with the right to sell the Mortgaged Property at a trustee’s sale or the
right to foreclose the Mortgage. The Mortgage Note and Mortgage are on forms acceptable to Freddie
Mac or Fannie Mae.

(t) Occupancy of the Mortgaged Property. To the best of any Seller’s knowledge, as of
the Purchase Date (i) the Mortgaged Property is lawfully occupied under applicable law and (ii) all
inspections, licenses and certificates required to be made or issued with respect to all occupied
portions of the Mortgaged Property and, with respect to the use and occupancy of the same,
including but not limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities. Neither Seller has received notification
from any Governmental Authority that the Mortgaged Property is in material non-compliance with such
laws or regulations, is being used, operated or occupied unlawfully or has failed to have or obtain
such inspection, licenses or certificates, as the case may be. With respect to any Mortgage Loan
originated with an “owner-occupied” Mortgaged property, the Mortgagor represented at the time of
origination of the Mortgage Loan that the Mortgagor would occupy the Mortgaged Property as the
Mortgagor’s primary residence.

(u) No Additional Collateral. The Mortgage Note is not and has not been secured by
any collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in clause (i) above.

(v) Deeds of Trust. In the event the Mortgage constitutes a deed of trust, a trustee,
authorized and duly qualified under applicable law to serve as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses are or will become
payable by the Custodian or Administrative Agent for the benefit of the Buyers to the trustee under
the deed of trust, except in connection with a trustee’s sale after default by the Mortgagor.

(w) Transfer of Mortgage Loans. Except with respect to Mortgage Loans intended for
purchase by Ginnie Mae and for Mortgage Loans registered with MERS, the Assignment of Mortgage is
in recordable form and is acceptable for recording under the laws of the jurisdiction in which the
Mortgaged Property is located.

(x) Due-On-Sale. Except with respect to Mortgage Loans intended for purchase by
Ginnie Mae, the Mortgage contains an enforceable provision for the acceleration of the payment of
the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged Property is sold
or transferred without the prior written consent of the mortgagee thereunder.

(y) No Buydown Provisions; No Graduated Payments or Contingent Interests. Except with
respect to Agency Mortgage Loans, the Mortgage Loan does not contain provisions pursuant to which
Monthly Payments are paid or partially paid with funds deposited in any separate account
established by the applicable Seller, the Mortgagor, or anyone on behalf of the Mortgagor, or paid
by any source other than the Mortgagor nor does it contain any other similar provisions which may
constitute a “buydown” provision. The Mortgage Loan is not a graduated payment mortgage loan
(except with respect to 30/40 Mortgage Loans) and the Mortgage Loan does not have a shared
appreciation or other contingent interest feature.

(z) Consolidation of Future Advances. Any future advances made to the Mortgagor prior
to the Purchase Date have been consolidated with the outstanding principal amount secured by the
Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and
single repayment term. The lien of the Mortgage securing the consolidated principal amount is
expressly insured as having first or second lien priority by a title insurance policy, an
endorsement to the policy insuring the mortgagee’s consolidated interest or by other title evidence
acceptable to Fannie Mae and Freddie Mac. The consolidated principal amount does not exceed the
original principal amount of the Mortgage Loan.

(aa) No Condemnation Proceeding. To the best of any Seller’s knowledge, there is no
proceeding pending for the total or partial condemnation and no eminent domain proceedings pending
affecting any Mortgaged Property.

(bb) Collection Practices; Escrow Deposits; Interest Rate Adjustments. The
origination and collection practices used by the originator, each servicer of the Mortgage Loan and
the applicable Seller with respect to the Mortgage Loan have been in all respects in compliance
with Accepted Servicing Practices, applicable laws and regulations, and have been in all respects
legal and proper. With respect to escrow deposits and Escrow Payments, (other than with respect to
each Second Lien Mortgage Loan and for which the mortgagee under the first lien is collecting
Escrow Payments) all such payments are in the possession of, or under the control of, the
applicable Seller and there exist no deficiencies in connection therewith for which customary
arrangements for repayment thereof have not been made. All Escrow Payments have been collected in
full compliance with state and federal law. If an escrow of funds has been established, it is not
prohibited by applicable law and has been established in an amount sufficient to pay for every item
that remains unpaid and has been assessed but is not yet due and payable. No escrow deposits or
Escrow Payments or other charges or payments due the applicable Seller have been capitalized under
the Mortgage or the Mortgage Note. All Mortgage Interest Rate adjustments have been made in strict
compliance with state and federal law and the terms of the related Mortgage Note. Any interest
required to be paid pursuant to state, federal and local law has been properly paid and credited.

(cc) Conversion to Fixed Interest Rate. Except (i) as allowed by Fannie Mae or
Freddie Mac, (ii) as would be allowed by Fannie Mae or Freddie Mac but for limits by such Agencies
on loan amounts, or (iii) or otherwise as expressly approved in writing by Administrative Agent,
with respect to adjustable rate Mortgage Loans, the Mortgage Loan is not convertible to a fixed
interest rate Mortgage Loan.

(dd) Other Insurance Policies. No action, inaction or event has occurred and no state
of facts exists or has existed that has resulted or will result in the exclusion from, denial of,
or defense to coverage under any applicable special hazard insurance policy, PMI Policy or
bankruptcy bond, irrespective of the cause of such failure of coverage. In connection with the
placement of any such insurance, no commission, fee, or other compensation has been or will be
received by the applicable Seller or by any officer, director, or employee of Seller or any
designee of Seller or any corporation in which Seller or any officer, director, or employee had a
financial interest at the time of placement of such insurance.

(ee) Servicemembers Civil Relief Act. The Mortgagor has not notified the applicable
Seller, and such Seller has no knowledge, of any relief requested or allowed to the Mortgagor under
the Servicemembers Civil Relief Act of 2003.

(ff) Appraisal. The Mortgage File contains an appraisal of the related Mortgaged
Property signed prior to the funding of the Mortgage Loan, duly appointed by the related Seller,
who had no interest, direct or indirect in the Mortgaged Property or in any loan made on the
security thereof, and whose compensation is not affected by the approval or disapproval of the
Mortgage Loan, and the appraisal and appraiser both satisfy the requirements of Fannie Mae or
Freddie Mac and Title XI of the Federal Institutions Reform, Recovery, and Enforcement Act of 1989
as amended and the regulations promulgated thereunder, all as in effect on the date the Mortgage
Loan was originated.

(gg) Disclosure Materials. The Mortgagor has executed a statement to the effect that
the Mortgagor has received all disclosure materials required by applicable law with respect to the
making of adjustable rate mortgage loans, and the applicable Seller maintains such statement in the
Mortgage File.

(hh) Construction or Rehabilitation of Mortgaged Property. No Mortgage Loan was made
in connection with the construction or rehabilitation of a Mortgaged Property or facilitating the
trade-in or exchange of a Mortgaged Property.

(ii) Capitalization of Interest. The Mortgage Note does not by its terms provide for
the capitalization or forbearance of interest.

(jj) No Equity Participation. No document relating to the Mortgage Loan provides for
any contingent or additional interest in the form of participation in the cash flow of the
Mortgaged Property or a sharing in the appreciation of the value of the Mortgaged Property. The
indebtedness evidenced by the Mortgage Note is not convertible to an ownership interest in the
Mortgaged Property or the Mortgagor and the applicable Seller has not financed nor does it own
directly or indirectly, any equity of any form in the Mortgaged Property or the Mortgagor.

(kk) No Defense to Insurance Coverage. No action has been taken or failed to be
taken, no event has occurred and no state of facts exists or has existed on or prior to the
Purchase Date (whether or not known to the applicable Seller on or prior to such date) which has
resulted or will result in an exclusion from, denial of, or defense to coverage under any private
mortgage insurance (including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of the loss otherwise due
thereunder to the insured) whether arising out of actions, representations, errors, omissions,
negligence, or fraud of the applicable Seller, the related Mortgagor or any party involved in the
application for such coverage, including the appraisal, plans and specifications and other exhibits
or documents submitted therewith to the insurer under such insurance policy, or for any other
reason under such coverage, but not including the failure of such insurer to pay by reason of such
insurer’s breach of such insurance policy or such insurer’s financial inability to pay.

(ll) Proceeds of Mortgage Loan. The proceeds of the Mortgage Loan have not been and
shall not be used to satisfy, in whole or in part, any debt owed or owing by the Mortgagor to the
applicable Seller or any Affiliate or correspondent of Seller, except in connection with a
refinanced Mortgage Loan; provided, however, that no such refinanced Mortgage Loan shall have been
originated pursuant to a streamlined mortgage loan refinancing program.

(mm) Origination Date. Unless otherwise approved by the Administrative Agent in
writing, the origination date is no earlier than thirty (30) days prior to the related Purchase
Date.

(nn) Mortgage Submitted for Recordation. The Mortgage either has been or will
promptly be submitted for recordation in the appropriate governmental recording office of the
jurisdiction where the Mortgaged Property is located.

(oo) Documents Genuine. To the best of any Seller’s knowledge, such Purchased
Mortgage Loan and all accompanying collateral documents are complete and authentic and all
signatures thereon are genuine. Such Purchased Mortgage Loan is a “closed” loan fully funded by
the applicable Seller and held in the applicable Seller’s name.

(pp) Bona Fide Loan. Such Purchased Mortgage Loan arose from a bona fide loan,
complying with all applicable State and Federal laws and regulations, to persons having legal
capacity to contract and is not subject to any defense, set-off or counterclaim.

(qq) Other Encumbrances. To the best of any Seller’s knowledge, any property subject
to any security interest given in connection with such Purchased Mortgage Loan is not subject to
any other encumbrances other than a stated first mortgage, if applicable, and encumbrances which
may be allowed under the Underwriting Guidelines.

(rr) Description. Each Purchased Mortgage Loan conforms to the description thereof as
set forth on the related Mortgage Loan Schedule delivered to the Custodian and Administrative
Agent.

(ss) Located in U.S. No collateral (including, without limitation, the related real
property and the dwellings thereon and otherwise) relating to a Purchased Mortgage Loan is located
in any jurisdiction other than in one of the fifty (50) states of the United States of America or
the District of Columbia.

(tt) Underwriting Guidelines. Each Purchased Mortgage Loan has been originated in
accordance with the Underwriting Guidelines (including all supplements or amendments thereto)
previously provided to Administrative Agent.

(uu) Aging. Such Purchased Mortgage Loan has not been subject to a Transaction
hereunder for more than 180 days.

(vv) Primary Mortgage Guaranty Insurance. Each Mortgage Loan is insured as to payment
defaults by a policy of primary mortgage guaranty insurance in the amount required where
applicable, and by an insurer approved, by the applicable Take-out Investor, if applicable, and all
provisions of such primary mortgage guaranty insurance have been and are being complied with, such
policy is in full force and effect, and all premiums due thereunder have been paid. Each Mortgage
Loan which is represented to Administrative Agent to have, or to be eligible for, FHA insurance is
insured, or eligible to be insured, pursuant to the National Housing Act. Each Mortgage Loan which
is represented by Sellers to be guaranteed, or to be eligible for guaranty, by the VA is
guaranteed, or eligible to be guaranteed, under the provisions of Chapter 37 of Title 38 of the
United States Code. As to each FHA insurance certificate or each VA guaranty certificate, Sellers
have complied with applicable provisions of the insurance for guaranty contract and federal
statutes and regulations, all premiums or other charges due in connection with such insurance or
guarantee have been paid, there has been no act or omission which would or may invalidate any such
insurance or guaranty, and the insurance or guaranty is, or when issued, will be, in full force and
effect with respect to each Mortgage Loan. There are no defenses, counterclaims, or rights of
setoff affecting the Mortgage Loans or affecting the validity or enforceability of any private
mortgage insurance or FHA insurance applicable to the Mortgage Loans or any VA guaranty with
respect to the Mortgage Loans.

(ww) Predatory Lending Regulations; High Cost Loans. None of the Mortgage Loans are
classified as a High Cost Mortgage Loan.

(xx) Wet-Ink Mortgage Loans. With respect to each Mortgage Loan that is a Wet-Ink
Mortgage Loan, the Settlement Agent has been instructed in writing by Sellers to hold the related
Mortgage Loan Documents as agent and bailee for Buyers or Buyers’ agent and to promptly forward
such Mortgage Loan Documents in accordance with the provisions of the Custodial Agreement and the
Escrow Instruction Letter.

(yy) FHA Mortgage Insurance; VA Loan Guaranty. With respect to the FHA Loans, the FHA
Mortgage Insurance Contract is in full force and effect and there exists no impairment to full
recovery without indemnity to the Department of Housing and Urban Development or the FHA under FHA
Mortgage Insurance. With respect to the VA Loans, the VA Loan Guaranty Agreement is in full force
and effect to the maximum extent stated therein. All necessary steps have been taken to keep such
guaranty or insurance valid, binding and enforceable and each of such is the binding, valid and
enforceable obligation of the FHA and the VA, respectively, to the full extent thereof, without
surcharge, set-off or defense. Each FHA Loan and VA Loan was originated in accordance with the
criteria of an Agency for purchase of such Mortgage Loans.

5EX-10.1(b)

Exhibit 10.1(b)

EXECUTION VERSION

CREDIT SUISSE, NEW YORK BRANCH

November 14, 2006

Fieldstone Investment Corporation

Fieldstone Mortgage Company

11000 Broken Land Parkway

Suite 600

Columbia, MD 21044

Attention: Mark C. Krebs

Re: Amended and Restated Pricing Side Letter

Ladies and Gentlemen:

Reference is hereby made to, and this amended and restated pricing side letter (the
“Pricing Side Letter”) is hereby incorporated by reference into, the Amended and Restated
Master Repurchase Agreement, dated as of November 14, 2006, (as amended, supplemented and otherwise
modified from time to time, the “Agreement”), among Fieldstone Investment Corporation (a
“Seller”), Fieldstone Mortgage Company (a “Seller”), the Buyers and Group Agents
party thereto and Credit Suisse, New York Branch (the “Administrative Agent”). Any
capitalized term used but not defined herein shall have the meaning assigned to such term in the
Agreement.

The Administrative Agent and the Sellers previously entered into a pricing side letter, dated
November 8, 2005 (the “Existing Pricing Side Letter”).

The Administrative Agent, the Group Agents and the Sellers have requested that the Existing
Pricing Side Letter be amended and restated on the terms and conditions set forth herein.

Accordingly, the parties hereby agree, in consideration of the mutual promises and mutual
obligations set forth herein, that the Existing Pricing Side Letter is hereby amended and restated
as set forth herein.

Section 1. Definitions. The following terms shall have the meanings set forth below.

1.1 “Asset Value” shall mean with respect to each Eligible Mortgage Loan, the lesser
of (a) the applicable Purchase Price Percentage for the related Purchased Mortgage Loan multiplied
by the Market Value of such Mortgage Loan and (b) the outstanding principal balance of such
Mortgage Loan. Without limiting the generality of the foregoing, the Sellers acknowledge that the
Asset Value of a Purchased Mortgage Loan shall be reduced to zero if:

(i) a material breach of a representation, warranty or covenant made by Seller in the
Agreement with respect to such Purchased Mortgage Loan has occurred and is continuing;

(ii) such Purchased Mortgage Loan is a Defaulted Mortgage Loan;

(iii) such Purchased Mortgage Loan has been released from the possession of the
Custodian under the Custodial Agreement for a period in excess of ten (10) Business Days;

(iv) such Purchased Mortgage Loan has been subject to a Transaction hereunder for a
period of greater than 180 days;

(v) such Purchased Mortgage Loan is a Wet-Ink Mortgage Loan for which the Mortgage File
has not been delivered to the Custodian on or prior to the fifth Business Day after the
related Purchase Date;

(vi) such Purchased Mortgage Loan is no longer acceptable for purchase by any Buyer (or
an Affiliate thereof) or the Administrative Agent (or an Affiliate thereof) under any of the
flow purchase or conduit programs for which Seller then has been approved due to a
Requirement of Law relating to consumer credit laws or otherwise;

(vii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Weighted Average Mortgage Interest Rate
of all Fixed Rate Mortgage Loans is less than 7.5%;

(viii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Weighted Average Mortgage Interest Rate
of all Floating Rate Mortgage Loans is less than 7%;

(ix) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Weighted Average FICO Score of all Fixed
Rate Mortgage Loans is less than 660;

(x) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added to
that of the other Purchased Mortgage Loans, the Weighted Average FICO Score of all Floating
Rate Mortgage Loans is less than 638;

(xi) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans having FICO Scores that are less than or equal to 500 is greater
than 1% of the Outstanding Principal Balance of all Fixed Rate Mortgage Loans;

(xii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans having FICO Scores that are less than or equal to 500 is
greater than 0.50% of the Outstanding Principal Balance of all Floating Rate Mortgage Loans;

(xiii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans having FICO Scores that are less than or equal to 550 is greater
than 3% of the Outstanding Principal Balance of all Fixed Rate Mortgage Loans;

(xiv) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans having FICO Scores that are less than or equal to 550 is
greater than 15% of the Outstanding Principal Balance of all Floating Rate Mortgage Loans;

(xv) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans having FICO Scores that are less than or equal to 600 is greater
than 10% of the Outstanding Principal Balance of all Fixed Rate Mortgage Loans;

(xvi) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans having FICO Scores that are less than or equal to 600 is
greater than 30% of the Outstanding Principal Balance of all Floating Rate Mortgage Loans;

(xvii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Weighted Average LTV of all Fixed Rate
Mortgage Loans is greater than or equal to 87%;

(xviii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Weighted Average LTV of all
Floating Rate Mortgage Loans is greater than or equal to 85%;

(xix) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans having an LTV that is greater than or equal to 95% but less than
or equal to 100% is greater than or equal to 40% of the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans;

(xx) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans having an LTV that is greater than or equal to 95% but less
than or equal to 100% is greater than or equal to 15% of the Outstanding Principal Balance
of all Floating Rate Mortgage Loans;

(xxi) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Weighted Average CLTV of all Fixed Rate
Mortgage Loans is greater than or equal to 95%;

(xxii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Weighted Average CLTV of all Floating
Rate Mortgage Loans is greater than or equal to 95%;

(xxiii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans having a CLTV that is greater than or equal to 95% but less
than or equal to 100% is greater than or equal to 40% of the Outstanding Principal Balance
of all Fixed Rate Mortgage Loans;

(xxiv) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans having a CLTV that is greater than or equal to 95% but less
than or equal to 100% is greater than or equal to 65% of the Outstanding Principal Balance
of all Floating Rate Mortgage Loans;

(xxv) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans having an Outstanding Principal Balance that is less than or equal
to $50,000 is greater than or equal to 20% of the Outstanding Principal Balance of all Fixed
Rate Mortgage Loans;

(xxvi) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans having an Outstanding Principal Balance that is less than or
equal to $50,000 is greater than or equal to 5% of the Outstanding Principal Balance of all
Floating Rate Mortgage Loans;

(xxvii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans having an Outstanding Principal Balance that is less than or
equal to $100,000 is greater than or equal to 45% of the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans;

(xxviii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Floating Rate Mortgage Loans having an Outstanding Principal Balance that is less than
or equal to $100,000 is greater than or equal to 10% of the Outstanding Principal Balance of
all Floating Rate Mortgage Loans;

(xxix) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans having a Credit Grade of “A” is less than 95% of the Outstanding
Principal Balance of all Fixed Rate Mortgage Loans;

(xxx) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans having a Credit Grade of “A” is less than 90% of the
Outstanding Principal Balance of all Floating Rate Mortgage Loans;

(xxxi) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans having a Credit Grade of “D” is greater than 0.50% of the
Outstanding Principal Balance of all Fixed Rate Mortgage Loans;

(xxxii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Floating Rate Mortgage Loans having a Credit Grade of “D” is greater than 1% of the
Outstanding Principal Balance of all Floating Rate Mortgage Loans;

(xxxiii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans with respect to which the related Mortgagors have provided
Full Documentation is less than or equal to 55% of the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans;

(xxxiv) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Floating Rate Mortgage Loans with respect to which the related Mortgagors have provided
Full Documentation is less than or equal to 37% of the Outstanding Principal Balance of all
Floating Rate Mortgage Loans;

(xxxv) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all 40
Year Mortgage Loans, 30/40 Mortgage Loans and Interest Only that are Fixed Rate Mortgage
Loans, combined, is greater than or equal to 10% of the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans;

(xxxvi) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all 40 Year Mortgage Loans, 30/40 Mortgage Loans and Interest Only Loans that are Floating
Rate Mortgage Loans, combined, is greater than or equal to 75% of the Outstanding Principal
Balance of all Floating Rate Mortgage Loans;

(xxxvii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans with respect to which the related Mortgagor occupies the
related Mortgaged Property is less than 93% of the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans;

(xxxviii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Floating Rate Mortgage Loans with respect to which the related Mortgagor occupies the
related Mortgaged Property is less than 90% of the Outstanding Principal Balance of all
Floating Rate Mortgage Loans;

(xxxix) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans with respect to which the related Mortgaged Property is
designated for single-family use is less than 65% of the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans;

(xl) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans with respect to which the related Mortgaged Property is
designated for single-family use is less than 65% of the Outstanding Principal Balance of
all Floating Rate Mortgage Loans;

(xli) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans with respect to which the related Mortgaged Property is designated
for other than single-family use is greater than 35% of the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans;

(xlii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans with respect to which the related Mortgaged Property is
designated for other than single-family use is greater than 35% of the Outstanding Principal
Balance of all Fixed Rate Mortgage Loans;

(xliii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans that are also Second Lien Mortgage Loans is greater than 40%
of the Outstanding Principal Balance of all Fixed Rate Mortgage Loans;

(xliv) such Purchased Mortgage Loan is a Floating Rate Mortgage Loan that is also a
Second Lien Mortgage Loan;

(xlv) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans with respect to which the related Mortgaged Property is located in
the State of California is greater than 42% of the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans;

(xlvi) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans with respect to which the related Mortgaged Property is located
in the State of California is greater than 55% of the Outstanding Principal Balance of all
Floating Rate Mortgage Loans;

(xlvii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans with respect to which the related Mortgaged Property is
located in the State of Texas is greater than 20% of the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans;

(xlviii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is
added to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of
all Fixed Rate Mortgage Loans with respect to which the related Mortgaged Property is
located in the States of California and Texas, combined, is greater than 50% of the
Outstanding Principal Balance of all Fixed Rate Mortgage Loans;

(xlix) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans with respect to which the related Mortgaged Property is located in
a particular state of the United States or the District of Columbia (other than the States
of California and Texas) is greater than 12% of the Outstanding Principal Balance of all
Fixed Rate Mortgage Loans;

(l) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added to
that of the other Purchased Mortgage Loans, the Outstanding Principal Balance of all
Floating Rate Mortgage Loans with respect to which the related Mortgaged Property is located
in a particular state of the United States or the District of Columbia (other than the State
of California) is greater than 15% of the Outstanding Principal Balance of all Floating Rate
Mortgage Loans;

(li) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the aggregate Outstanding Principal Balance
of all Fixed Rate Mortgage Loans that are Purchased Mortgage Loans exceeds 50% of the
Outstanding Principal Balance of all Purchased Mortgage Loans; or

(lii) when the Outstanding Principal Balance for such Purchased Mortgage Loan is added
to that of the other Purchased Mortgage Loans, the aggregate Outstanding Principal Balance
of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans exceeds the greater of (i)
20% of the Facility Outstanding Principal and (ii) $100 million.

1.2 “Administrative Fee” shall mean on each Price Differential Payment Date with
respect to the immediately preceding calendar month, the Seller agrees to pay to the Administrative
Agent, for its own account in accordance with the Repurchase Agreement, a fee (the
"Administrative Fee”) equal to the product of (i) 0.02% per annum multiplied by (ii) the
weighted average daily Facility Outstanding Principal for such calendar month.

1.3 “Maximum Aggregate Purchase Price” shall mean, the sum of (a) the Maximum Credit
Suisse Group Purchase Price and (b) the Maximum JPM Group Purchase Price; provided that
such amount may not at any time exceed the Maximum Committed Purchase Price then in effect.

1.4 “Maximum Credit Suisse Group Purchase Price” shall mean FOUR HUNDRED MILLION
DOLLARS ($400,000,000).

1.5 “Maximum JPM Group Purchase Price” shall mean FOUR HUNDRED MILLION DOLLARS
($400,000,000).

1.6 “Non-Utilization Fee” shall mean, on each Price Differential Payment Date with
respect to the immediately preceding calendar month, the Sellers agree to pay to the Administrative
Agent for the benefit of each Group Agent and its Buying Group, in accordance with the Repurchase
Agreement, a fee (the “Non-Utilization Fee”) equal to the product of (i) 0.125% per annum
multiplied by (ii) the difference between the weighted average daily Maximum JPM Group Purchase
Price or Maximum Credit Suisse Group Purchase Price, as applicable for such calendar month and such
Buying Group’s aggregate pro rata share of the weighted average daily Facility
Outstanding Principal for such calendar month.

1.7 “Post Default Rate” shall mean an annual rate of interest equal to the greater of
(a) the Pricing Rate plus 4% or (b) the Mortgage Interest Rate.

1.8 “Pricing Rate” shall mean LIBOR plus:

(a) 0.23% with respect to Transactions the subject of which are Purchased
Mortgage Loans (other than Wet-Ink Mortgage Loans); and

(b) 0.43% with respect to Transactions the subject of which are Wet-Ink
Mortgage Loans.

The Pricing Rate shall change in accordance with LIBOR, as provided in Section 5(a).

1.9 “Purchase Price Percentage” shall mean, with respect to each Mortgage Loan, 92.5%.

1.10 “Termination Date” shall mean the earliest of (i) the Business Day designated by
the Sellers to the Administrative Agent as the Termination Date at any time following thirty (30)
days’ written notice to each Group Agent, (ii) the day upon which a Termination Date is declared or
automatically occurs relating to an Event of Default pursuant to Section 15 hereof, or (iii) July
25, 2007.

Section 2. Computations. The Non-Utilization Fee and the Administration Fee shall be
computed on the basis of the actual number of calendar days in the related calendar month elapsed
in a year of 360 days.

Section 3. Fees. The Sellers agree to pay as and when billed by the Administrative
Agent all of the reasonable fees, disbursements and expenses of counsel to the Administrative Agent
and Buyers in connection with the development, preparation and execution of this Pricing Side
Letter or any other documents prepared in connection herewith in accordance with Sections 13 and 27
of the Agreement and receipt of payment thereof shall be a condition precedent to the Buyer
entering into any Transaction pursuant hereto.

Section 4. GOVERNING LAW. THIS PRICING SIDE LETTER SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 5. Counterparts. This Pricing Side Letter may be executed in one or more
counterparts and by different parties hereto on separate counterparts, each of which, when so
executed, shall constitute one and the same agreement.

Section 6. Amendments. This Pricing Side Letter may not be amended, supplemented,
waived or modified except in accordance with the provisions of this Section 6 and Section 34 of the
Repurchase Agreement. All amendments, supplements, modifications and waivers will be effective if
executed by each Seller, the Administrative Agent and each Committed Buyer whose consent is
required pursuant to Section 34 of the Repurchase Agreement. Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the Buyers and shall be
binding upon Sellers, the Buyers, the Group Agents, the Administrative Agent and all future holders
of Purchased Mortgage Loans. In the case of any waiver, Sellers, the Buyers, the Group Agents and
the Administrative Agent shall be restored to their former positions and rights hereunder and under
the other Program Agreements, and any Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Event of Default or impair
any right consequent thereon.

1

IN WITNESS WHEREOF, the Sellers and the Administrative Agent have caused their names to be
signed hereto by their respective officers thereunto duly authorized as of the date first above
written.

Credit Suisse, New York Branch, as Administrative Agent and as a
Group Agent

By: /s/ Anthony Giordano

Name: Anthony Giordano

Title: Director

By: /s/ Joseph Soave

Name: Joseph Soave

Title: Director

2

The JPMorgan Buying Group:

FALCON ASSET SECURITIZATION COMPANY LLC

By: JPMorgan Chase Bank, N.A., its attorney-in-fact

By: /s/ Daniel J. Clarke, Jr.

Name: Daniel J. Clarke, Jr.

Title: Managing Director

JPMORGAN CHASE BANK, N.A., as a Group Agent and as Committed Buyer

By: /s/ Daniel J. Clarke, Jr.

Name: Daniel J. Clarke, Jr.

Title: Managing Director

The Alpine Buying Group:

ALPINE SECURITIZATION CORP., as a Conduit Buyer

By: /s/ Mark Golombeck

Name: Mark Golombeck

Title: Director

By: /s/ Mark Lengel

Name: Mark Lengel

Title: Director

CREDIT SUISSE, NEW YORK BRANCH, individually and as a Committed
Buyer

By: /s/ Anthony Giordano

Name: Anthony Giordano

Title: Director

By: /s/ Joseph Soave

Name: Joseph Soave

Title: Director

3

Fieldstone Mortgage Company, as Seller

By: /s/ Mark C. Krebs

Name: Mark C. Krebs

Title: Sr. Vice President & Treasurer

Fieldstone Investment Corporation, as Seller

By: /s/ Mark C. Krebs

Name: Mark C. Krebs

Title: Sr. Vice President & Treasurer

4

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