Document:

Third Amend. to First Amended and Restated Warehousing Credit Agreement

 Exhibit 10.6 
  
 THIRD AMENDMENT TO FIRST AMENDED AND 
 RESTATED WAREHOUSING CREDIT 
 AND SECURITY AGREEMENT 
  
 THIRD AMENDMENT TO FIRST AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENT (this
“Amendment”) dated as of August 6, 2003, between HOMEBANC MORTGAGE CORPORATION, a Delaware corporation (“Borrower”) and RESIDENTIAL FUNDING CORPORATION, a Delaware corporation (“Lender”).

  

	A.	Borrower and Lender have entered into a revolving mortgage warehousing facility with a present Warehousing Commitment Amount of $150,000,000, which is evidenced by a Promissory Note
dated May 31, 2003 (the “Note”), and by a First Amended and Restated Warehousing Credit and Security Agreement dated as of May 31, 2003 (as the same may have been and may be amended or supplemented, the
“Agreement”). 

  

	B.	Borrower has requested that Lender temporarily increase the Warehousing Commitment Amount and to amend certain other terms of the Agreement, and Lender has agreed to such temporary
increase and amendments, subject to the terms and conditions of this Amendment. 

  
 NOW, THEREFORE, the parties to this Amendment agree as follows: 
  

	1.	Subject to Borrower’s satisfaction of the conditions set forth in Section 7, the effective date of this Amendment is August 4, 2003 (“Effective Date”).

  

	2.	Unless otherwise defined in this Amendment, all capitalized terms have the meanings given to those terms in the Agreement. Defined terms may be used In the singular or the plural,
as the context requires, The words “include,” “includes” and “including” are deemed to be followed by the phrase “without limitation.” Unless the context in which it is used otherwise clearly requires, the
word “or” has the inclusive meaning represented by the phrase “and/or,” References to Sections and Exhibits are to Sections and Exhibits of this Amendment unless otherwise expressly provided. 

  

	3.	Article 12 of the Agreement is amended and restated in its entirety as set forth in Article 12 attached to this Amendment. All references in the Agreement and other
Loan Documents to Article 12 (including each and every Section in Article 12) are deemed to refer to the new Article 12. 

  

	4.	Exhibit H to the Agreement is amended and restated in its entirety as set forth in Exhibit H to this Amendment. All references in the Agreement and the other Loan
Documents to Exhibit H are deemed to refer to the new Exhibit H. 

  

	5.	Upon execution of this Amendment, Borrower must pay to Lender the pro rata Warehousing Commitment Fee on the increased portion of the Warehousing Commitment Amount for the time
period from August 4, 2003, to and including August 22, 2003 (the “Additional Commitment Fee”). 

  

	6.	In consideration of Lender’s agreement to increase the Warehousing Commitment Amount temporarily, Borrower must pay Lender an additional fee in the amount of $2,500
(“Temporary Increase Fee”). 

  

	7.	Except as expressly modified, the Agreement is unchanged and remains in full force and effect, and Borrower ratifies and reaffirms all of its obligations under the Agreement and the
other Loan Documents. 

  

	8.	This Amendment may be executed in any number of counterparts, each of which will be deemed an original, but all of which shall together constitute but one and the same instrument.

  
 IN WITNESS WHEREOF, Borrower and Lender have caused this
Amendment to be duly executed on their behalf by their duly authorized officers as of the day and year above written. 
  

			
	 HOMEBANC MORTGAGE CORPORATION,
 a Delaware corporation

		
	 By:
	 	 /s/ Debra F. Watkins

	 	 	

	 Its:
	 	 Debra F. Watkins
 Executive Vice President

  

			
	 RESIDENTIAL FUNDING CORPORATION,
 a Delaware corporation

		
	 By:
	 	 /s/ Samuel W. Bryan

	 	 	

	 Its:
	 	 Samuel W. Bryan
 Director

  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 1	 	 

	12.	DEFINITIONS 

  

	12.1.	  Defined Terms 

  
 Capitalized terms defined below or elsewhere in this Agreement have the following meanings or, as applicable, the meanings given to those terms in Exhibits to this Agreement: 
  
 “Accrual-Basis” has the meaning set forth in Section 3.1(c). 
  
 “Advance Rate” means, with respect to any Eligible Loan, the Advance Rate
set forth in Exhibit H for that type of Eligible Loan. 
  
 “Affiliate” means, when used with reference to any Person, (a) each Person that, directly or indirectly, controls, is controlled by or is under common control with, the Person referred to, (b) each Person that beneficially
owns or holds, directly or indirectly, 5% or more of any class of voting Equity Interests of the Person referred to, (c) each Person, 5% or more of the voting Equity Interests of which is beneficially owned or held, directly or indirectly, by the
Person referred to, and (d) each of such Person’s officers, directors, joint venturers and partners. For these purposes, the term “control” (including the terms “controlled by” and “under common control with”)
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the Person in question. 
  
 “Aged Mortgage Loans” means Mortgage Loans against which a Warehousing Advance has been outstanding for longer than the Standard Warehouse Period,
provided that Aged Mortgage Loans are permitted for such type of Mortgage Loan. 
  
 “Aged Warehouse Period” means the maximum number of days a Warehouse Advance against Aged Mortgage Loans of a particular type may remain outstanding as set forth in Exhibit H. 
  
 “Agency Security” means a Mortgage-backed Security issued or guaranteed by
Fannie Mae, Freddie Mac or Ginnie Mae. 
  
 “Agreement” means this
First Amended and Restated Warehousing Credit and Security Agreement, either as originally executed or as it may be amended, restated, renewed or replaced. 
  
 “Appraised Property Value” means with respect to an interest in real property, the then current fair market value of the real property and any
improvements on it as of recent date determined in accordance with Title XI of FIRREA by a qualified appraiser who is a member of the American Institute of Real Estate Appraisers or other group of professional appraisers. 
  
 “Approved Custodian” means a pool custodian or other Person that Lender
deems acceptable, in its sole discretion, to hold Mortgage Loans for inclusion in a Mortgage Pool or to hold Mortgage Loans as agent for an Investor that has issued a Purchase Commitment for those Mortgage Loans. 
  
 “Audited Statement Date” means the date of Borrower’s most recent
audited financial statements (and, if applicable, Borrower’s Subsidiaries, on a consolidated basis) delivered to Lender under the Existing Agreement or this Agreement. 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-1	 	 

 “Bank of Montreal Indebtedness” means the obligations of Holdings to The Bank of Montreal pursuant to
that certain Unsecured Note dated as of April 28, 2000, as in effect on the date hereof and as hereafter amended, supplemented, restated or otherwise modified with the prior written consent of Lender. 
  
 “Bank One” means Bank One, National Association, or any successor bank.

  
 “Bank One Prime Rate” means, as of any date of determination,
the highest prime rate quoted by Bank One and most recently published by Bloomberg L.P. If the prime rate for Bank One is not quoted or published for any period, then during that period the term “Bank One Prime Rate” means the highest
prime rate published in the most recent edition of The Wall Street Journal in its regular column entitled “Money Rates.” 
  
 “Bond Program Mortgage Loan” has the maning set forth in Exhibit H. 
  
 “Borrower” has the meaning set forth in the first paragraph of this Agreement. 
  
 “Business Day” means any day other than Saturday, Sunday or any other day on
which national banking associations are closed for business. 
  
 “Buydown” has the meaning set forth in Section 3.4. 
  
 “Calendar Quarter” means the 3 month period beginning on each January 1, April 1, July 1 or October 1. 
  
 “Cash Collateral Account” means a demand deposit account maintained at the Funding Bank in Lender’s name and designated for receipt of the proceeds
of the sale or other disposition of Collateral. 
  
 “Check Disbursement
Account” means a demand deposit account maintained at the Funding Bank In Borrower’s name and under the control of Lender for clearing checks written by Borrower to fund Mortgage Loans funded by Warehousing Advances. 
  
 “Client Contract” means the Client Contract dated April 28, 2000 between
Borrower and Lender, as originally executed or as it may be amended, restated, renewed or replaced. 
  
 “Closing Date” has the meaning set forth in the Recitals to this Agreement. 
  
 “Collateral” has the meaning set forth in Section 4.1. 
  
 “Collateral Documents” means, with respect to each Mortgage Loan, (a) the Mortgage Note, the Mortgage and all other documents including, if applicable,
any Security Agreement, executed in connection with or relating to the Mortgage Loan; (b) as applicable, the original lender’s ALTA Policy of Title Insurance or Its equivalent, documents evidencing the FHA Commitment to Insure, the VA Guaranty
or private mortgage insurance, the appraisal, the Regulation Z statement, the environmental assessment, the engineering report, certificates of casualty or hazard insurance, credit information on the maker of the Mortgage Note, the HUD-1 or
corresponding purchase advice; (c) any other document listed in Exhibit B; and (d) any other document that is customarily desired for inspection or transfer incidental to the purchase of any Mortgage Note by an Investor or that is customarily
executed by the seller of a Mortgage Note to an Investor. 
  
 “Committed
Purchase Price” means for an Eligible Loan (a) the dollar price as set forth In the Purchase Commitment or, if the price is not expressed in dollars, the product of the Mortgage 

  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-2	 	 

 
Note Amount multiplied by the price (expressed as a percentage) as set forth in the Purchase Commitment for the Eligible Loan, or (b) if the Eligible Loan is
to be used to back an Agency Security, an amount equal to the product of the Mortgage Note Amount multiplied by the price (expressed as a percentage) as set forth in the Purchase Commitment for the Agency Security. 
  
 “Compliance Certificate” means a certificate executed on behalf of Borrower
by its chief financial officer or its treasurer or by another officer approved by Lender, substantially in the form of Exhibit E. 
  
 “Credit Score” means a mortgagor’s overall consumer credit rating, represented by a single numeric credit score using the Fair, Isaac consumer
credit scoring system, provided by a credit repository acceptable to Lender and the Investor that issued the Purchase Commitment covering the related Mortgage Loan (if a Purchase Commitment is required by Exhibit H). 
  
 “Debt” means (a) all indebtedness or other obligations of a Person (and, if
applicable, that Person’s Subsidiaries, on a consolidated basis) that, in accordance with GAAP, would be included in determining total liabilities as shown on the liabilities side of a balance sheet of that Person on the date of determination,
plus (b) all indebtedness or other obligations of that Person (and, if applicable, that Person’s Subsidiaries, on a consolidated basis) for borrowed money or for the deferred purchase price of property or services. For purposes of calculating a
Person’s Debt, Subordinated Debt not due within 1 year of that date may be excluded from that Person’s indebtedness. 
  
 “Default” means the occurrence of any event or existence of any condition that, but for the giving of Notice or the lapse of time, would constitute an
Event of Default. 
  
 “Default Rate” means, for any Warehousing
Advance, the Interest Rate applicable to that Warehousing Advance plus 4% per annum, If no Interest Rate is applicable to a Warehousing Advance, “Default Rate” means, for that Warehousing Advance, the highest Interest Rate then applicable
to any outstanding Warehousing Advance plus 4% per annum. 
  
 “Depository
Benefit” means the compensation received by Lender, directly or indirectly, as a result of Borrower’s maintenance of Eligible Balances with a Designated Bank. 
  
 “Designated Bank” means any bank designated by Lender as a Designated Bank, but only for as long as Lender has an agreement
under which Lender receives Depository Benefits from that bank. 
  
 “Designated Bank Charges” means any fees, Interest or other charges that would otherwise be payable to a Designated Bank in connection with Eligible Balances maintained at the Designated Bank, including deposit insurance
premiums, service charges and any other charges that may be imposed by governmental authorities from time to time. 
  
 “Discontinued Loan” has the meaning set forth in the GMAC-RFC Client Guide. 
  
 “Earnings Allowance” has the meaning set forth in Section 3.1(b). 
  
 “Earnings Credit” has the meaning set forth in Section 3.1(b). 

 
 “Electronic Advance Request” means an electronic transmission through
RFConnects Delivery containing the same Information as Exhibit A to this Agreement. 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-3	 	 

 “Electronic Tracking Agreement” means an Electronic Tracking Agreement, on the form prescribed by
Lender, among Borrower, Lender, MERS and MERCORP, Inc. 
  
 “Eligible Balances” means all funds of or maintained by Borrower (and, if applicable, Borrower’s Subsidiaries) in demand deposit or time deposit accounts at a Designated Bank, minus balances to support float,
reserve requirements and any other reductions that may be imposed by governmental authorities from time to time. 
  
 “Eligible Loan” means a Single Family Mortgage Loan that satisfies the conditions and requirements set forth in Exhibit H. 
  
 “Eligible Mortgage Pool” means a Mortgage Pool for which (a) an Approved
Custodian has issued its initial certification, (b) there exists a Purchase Commitment covering the Agency Security to be issued on the basis of that certification and (c) the Agency Security will be delivered to Lender. 
  
 “Equity Interests” means all shares, interests, participations or other
equivalents, however, designated, of or in a Person (other than a natural person), whether or not voting, including common stock, membership interests, warrants, preferred stock, convertible debentures and all agreements, instruments and documents
convertible, in whole or in part, into any one or more of the foregoing. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974 and all rules and regulations promulgated under that statute, as amended, and any successor statute, rules, and regulations. 
  
 “ERISA Affiliate” means any trade or business (whether or not incorporated)
that is a member of a group of which Borrower is a member and that is treated as a single employer under Section 414 of the Internal Revenue Code. 
  
 “Event of Default” means any of the conditions or events set forth in Section 10.1. 
  
 “Excess Buydown” has the meaning set forth in Section 3.4. 
  
 “Exchange Act” means the Securities Exchange Act of 1934 and all rules and regulations promulgated under that statute, as
amended, and any successor statute, rules, and regulations. 
  
 “Exhibit
B” means Exhibit B, Exhibit B-REP, as applicable to the type of Eligible Loan against which a Warehousing Advance is to be made. 
  
 “Existing Agreement” means the Warehousing Credit and Security Agreement dated as of April 28, 2000, as amended, between Borrower and Lender. 

 
 “Fair Market Value” means, at any time for an Eligible Loan or a related
Agency Security (if the Eligible Loan is to be used to back an Agency Security) as of any date of determination, (a) the Committed Purchase Price if the Eligible Loan is covered by a Purchase Commitment from Fannie Mae or Freddie Mac or the Eligible
Loan is to be exchanged for an Agency Security and that Agency Security is covered by a Purchase Commitment from an Investor, or (b) otherwise, the market price for such Eligible Loan or Agency Security, determined by Lender based on market data for
similar Mortgage Loans or Agency Securities and such other criteria as Lender deems appropriate in its sole discretion. 
  
 “Fannie Mae” means Fannie Mae, a corporation created under the laws of the United States, and any successor corporation or other entity. 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-4	 	 

 “FHA” means the Federal Housing Administration and any successor agency or other entity. 
  
 “FHA Mortgage Loan” means an FHA-insured Mortgage Loan included in the
Pledged Loans. 
  
 “FICA” means the Federal Insurance
Contributions Act and all rules and regulations promulgated under that statute, as amended, and any successor statute, rules and regulations. 
  
 “FIRREA” means the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and all rules and regulations promulgated under that statute, as
amended, and any successor statute, rules, and regulations. 
  
 “First
Mortgage” means a Mortgage that constitutes a first Lien on the real property and improvements described in or covered by that Mortgage. 
  
 “First Mortgage Loan” means a Mortgage Loan secured by a First Mortgage. 
  
 “Freddie Mac” means Freddie Mac, a corporation created under the laws of the United States, and any successor corporation
or other entity. 
  
 “Funding Bank” means Bank One or any other
bank designated by Lender as a Funding Bank. 
  
 “Funding Bank
Agreement” means a letter agreement on the form prescribed by Lender between the Funding Bank and Borrower authorizing Lender’s access to the Operating Account and the Check Disbursement Account. 
  
 “GAAP” means generally accepted accounting principles set forth in opinions
and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and in statements and pronouncements of the Financial Accounting Standards Board, or in opinions, statements or pronouncements of any
other entity approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 
  
 “Ginnie Mae” means the Government National Mortgage Association, an agency of the United States government, and any successor agency or other entity.

  
 “GMAC-RFC Client Guide” means the applicable loan
purchase guide issued by Lender, as the same may be amended or replaced. 
  
 “Government Mortgage Loan” means a closed-end First Mortgage Loan that is either HUD/FHA insured (other than a HUD 203(K) Mortgage Loan or a Title I Mortgage Loan) or VA guaranteed. 
  
 “GTCR” means GTCR Fund VII, L.P., Chicago, Illinois. 
  
 “Hedging Arrangements” means, with respect to any Person, any agreements or
other arrangements (including interest rate swap agreements, interest rate cap agreements and forward sale agreements) entered into to protect that Person against changes in interest rates or the market value of assets. 
  
 “High LTV Mortgage Loan” has the meaning set forth in Exhibit H.

  
 “Holdings” means Abetterwayhome Corp., a Delaware
corporation. 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-5	 	 

 “HUD” means the Department of Housing and Urban Development, and any successor agency or other entity.

  
 “HUD 203(K) Mortgage Loan” means an FHA-insured closed-end
First Mortgage Loan to an individual obligor the proceeds of which will be used for the purpose of rehabilitating and repairing the related single family property, and which satisfies the definition of “rehabilitation loan” in 24 C.F.R.
203.50(a) 
  
 “Indemnified Liabilities” has the meaning set forth
in Section 11.2. 
  
 “Indemnities” has the meaning set forth in
Section 11.2. 
  
 “Interest Rate” means, for any Warehousing
Advance, the floating rate of interest specified for that Warehousing Advance in Exhibit H. 
  
 “Interim Statement Date” means the date of the most recent unaudited financial statements of Borrower (and, if applicable, Borrower’s Subsidiaries, on a consolidated basis) delivered to Lender
under the Existing Agreement or this Agreement. 
  
 “Internal Revenue
Code” means the Internal Revenue Code of 1986, Title 26 of the United States Code, and all rules, regulations and interpretations issued under those statutory provisions, as amended, and any subsequent or successor federal income tax law or
laws, rules, regulations and interpretations. 
  
 “Investment Company
Act” means the Investment Company Act of 1940 and all rules and regulations promulgated under that statute, as amended, and any successor statute, rules, and regulations. 
  
 “Investor” means Fannie Mae, Freddie Mac or a financially responsible private institution that Lender deems acceptable, in
its sole discretion, to issue Purchase Commitments with respect to a particular category of Eligible Loans. 
  
 “Lender” has the meaning set forth in the first paragraph of this Agreement. 
  
 “Leverage Ratio” means the ratio of a Person’s Debt to Tangible Net Worth. For purposes of calculating a Person’s Leverage Ratio, Debt arising
under Hedging Arrangements, to the extent of assets arising under those Hedging Arrangements, may be excluded from that Person’s Debt. 
  
 “LIBOR” means, for each week, the rate of interest per annum that is equal to the arithmetic mean of the U.S. Dollar London Interbank Offered Rates for 1
month periods of certain US. banks as of 11;00 a.m. (London time) on the first Business Day of each week on which the London Interbank market is open, as published by Bloomberg L.P. If those interest rates are not offered or published for any
period, then during that period LIBOR means the London interbank Offered Rate for 1 month periods as published in The Wall Street Journal in its regular column entitled “Money Rates” on the first Business Day of each week on which the
London Interbank market is open. 
  
 “Lien” means any lien,
mortgage, deed of trust, pledge, security interest, charge or encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in the nature of such an agreement and any agreement to give any security interest).

  
 “Liquid Assets” means the following assets owned by a Person
(and, if applicable, that Person’s Subsidiaries, on a consolidated basis) as of any date of determination: (a) unrestricted and 

  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-6	 	 

 
unencumbered cash, funds on deposit in accounts with any bank located in the United States (net of the aggregate amount payable under all outstanding and
unpaid checks, drafts and similar items drawn by a Person against those accounts), investment grade commercial paper, money market funds, or marketable securities; and (b) the excess, if any, of Mortgage Loans and Mortgage-backed Securities held for
sale (valued in accordance with GAAP) over the outstanding aggregate principal amount of any Debt against which those Mortgage Loans or Mortgage-backed Securities are pledged as collateral; and (c) the amount available to be borrowed under any
Working Capital Line. 
  
 “Loan Documents” means this Agreement,
the Warehousing Note, any agreement of Borrower relating to Subordinated Debt, and each other document, instrument or agreement executed by Borrower in connection with any of those documents, instruments and agreements, as originally executed or as
any of the same may be amended, restated, renewed or replaced. 
  
 “Loan
Package Fee” has the meaning set forth in Section 3.6. 
  
 “Loan
Sale Commitment” means the Master Commitment dated February 28, 2003 between Borrower and Lender, as originally executed or as it may be amended, restated, renewed or replaced. 
  
 “Loan-to-Value Ratio” means, for any Mortgage Loan, the ratio of (a) the maximum amount that may be borrowed under the
Mortgage Loan (whether or not borrowed) at the time of origination, plus the Mortgage Note Amounts of all other Mortgage Loans secured by senior or pari passu Liens on the related property, to (b) the Appraised Property Value of the related
property. 
  
 “Manufactured Home” means a structure that is built
on a permanent chassis (steel frame) with the wheel assembly necessary for transportation in one or more sections to a permanent site or semi-permanent site. 
  
 “Margin Stock” has the meaning assigned to that term in Regulation U of the Board of Governors of the Federal Reserve System, as amended. 
  
 “MERS” means Mortgage Electronic Registrations Systems, Inc. and any
successor entity. 
  
 “Miscellaneous Fees and Charges” means the
miscellaneous fees set forth on Lender’s fee schedule attached as Exhibit I and all miscellaneous disbursements, charges and expenses incurred by or on behalf of Lender for the handling and administration of Warehousing Advances and
Collateral, including costs for Uniform Commercial Code, tax lien and judgment searches conducted by Lender, filing fees, charges for wire transfers and check processing charges, charges for security delivery fees, charges for overnight delivery of
Collateral to investors, recording fees, Funding Bank service fees and overdraft charges and Designated Bank Charges. Upon not less than 3 Business Days’ prior Notice to Borrower, Lender may modify Exhibit I and the fees set forth in it
to conform to current Lender practices and, as so modified, the revised Exhibit I will become part of this Agreement. 
  
 “Mortgage” means a mortgage or deed of trust on real property that is improved and substantially completed (including real property to which a
Manufactured Home has been affixed in a manner such that the Lien of a mortgage or deed of trust would attach to the Manufactured Home under applicable real property law). 
  
 “Mortgage-backed Securities” means securities that are secured or otherwise backed by Mortgage Loans. 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-7	 	 

 “Mortgage Loan” means any loan evidenced by a Mortgage Note and secured by a Mortgage and, if
applicable, a Security Agreement. 
  
 “Mortgage Note” means a
promissory note secured by one or more Mortgages and, if applicable, one or more Security Agreements. 
  
 “Mortgage Note Amount” means, as of any date of determination, the then outstanding and unpaid principal amount of a Mortgage Note (whether or not an additional amount is available to be drawn under
that Mortgage Note). 
  
 “Mortgage Pool” means a pool of one or
more Pledged Loans on the basis of which a Mortgage-backed Security is to be Issued. 
  
 “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA, to which either Borrower or any ERISA Affiliate of Borrower has any obligation with respect to its employees.

  
 “Net Worth Increment” has the meaning set forth in Section
8.9. 
  
 “Notices” has the meaning set forth in Section 11.1.

  
 “Obligations” means all indebtedness, obligations and
liabilities of Borrower to Lender and Lender’s Subsidiaries (whether now existing or arising after the date of this Agreement, voluntary or involuntary, joint or several, direct or indirect, absolute or contingent, liquidated or unliquidated,
or decreased or extinguished and later increased and however created or incurred), Including Borrower’s obligations and liabilities to Lender under the Loan Documents disbursements made by Lender for Borrower’s account, and Borrower’s
obligations and liabilities to Lender under the Client Contract and the Loan Sale Commitment. 
  
 “Operating Account” means a demand deposit account maintained at the Funding Bank in Borrower’s name and designated for funding that portion of each Eligible Loan not funded by a Warehousing
Advance made against that Eligible Loan and for returning any excess payment from an Investor for a Pledged Loan or Pledged Security. 
  
 “Overdraft Advance” has the meaning set forth in Section 3.8. 
  
 “Participant” has the meaning set forth in Section 11.8. 
  
 “Person” means and includes natural persons, corporations, limited liability companies, limited liability partnerships, limited partnerships, general
partnerships, joint stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not legal entities, and governments and agencies and political subdivisions
of those governments. 
  
 “Plan” means each employee benefit plan
(whether in existence on the date of this Agreement or established after that date), as that term is defined in Section 3 of ERISA, maintained for the benefit of directors, officers or employees of Borrower or any ERISA Affiliate. 
  
 “Pledged Assets” means, collectively, Pledged Loans and Pledged Securities.

  
 “Pledged Hedging Accounts” has the meaning set forth in
Section 4.1 (h). 
  
 “P|edged Hedging Arrangements” has the
meaning set forth in Section 4.1 (h). 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-8	 	 

 “Pledged Loans” has the meaning set forth in Section 4.1(b). 
  
 “Pledged Securities” has the meaning set forth in Section 4.1(c).

  
 “Prime Mortgage Loan” has the meaning set forth in Exhibit
H. 
  
 “Prohibited Transaction” has the meanings set forth
for such term in Section 4975 of the Internal Revenue Code and Section 406 of ERISA. 
  
 “Purchase Commitment” means a written commitment, in form and substance satisfactory to Lender, issued in favor of Borrower by an Investor under which that Investor commits to purchase Mortgage Loans or Mortgage-backed
Securities. 
  
 “Rating Agency” means any nationally recognized
statistical rating organization that in the ordinary course of its business rates Mortgage-backed Securities. 
  
 “Receivables” has the meaning set forth in Section 4.1(e). 
  
 “Rejected Mortgage Loan” has the meaning set forth In Exhibit H. 
  
 “Release Amount” has the meaning set forth In Section 4.3(f). 
  
 “Restriction List” and ‘Restriction Lists” means each and every list of Persons to whom the Government of the United States prohibits or
otherwise restricts the provision of financial services. For the purposes of this Agreement, Restriction Lists include the list of Specifically Designated Nationals and Blocked Persons established pursuant to Executive Order 13224 (September 23,
2001) and maintained by the Office of Foreign Assets Control, U.S. Department of the Treasury, current as of the day the Restriction List is used for purposes of comparison in accordance with the requirements of this Agreement. 
  
 “RFC Mortgage Loan” means a Mortgage Loan covered by a Purchase Commitment
Issued by Lender. 
  
 “RFConnects Delivery” means Lender’s
proprietary service to support the electronic exchange of information between Lender and Borrower, including Warehousing Advance Requests, shipping requests, payoff requests, wire transfer instructions, security delivery instructions, activity
reports and exception reports. 
  
 “RFConnects Pledge Agreement”
means an agreement (on the then current form prescribed by Lender) granting Lender a security Interest in Mortgage Loans for which Borrower has requested Warehousing Advances using RFConnects Delivery. 
  
 “Second Mortgage” means a Mortgage that constitutes a second Lien on the
real property and improvements described in or covered by that Mortgage. 
  
 “Second Mortgage Loan” means a Mortgage Loan secured by a Second Mortgage. 
  
 “Security Agreement” means a security agreement or other agreement that creates a Lien on personal property, including furniture, fixtures and equipment, to secure repayment of a Mortgage Loan.

  
 “Servicing Contract” means, with respect to any Person, the
arrangement, whether or not in writing, under which that Person has the right to service Mortgage Loans. 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-9	 	 

 “Servicing Portfolio” means, as to any Person, the unpaid principal balance of Mortgage Loans serviced
by that Person under Servicing Contracts, minus the principal balance of all Mortgage Loans that are serviced by that Person for others under subservicing arrangements. 
  
 “Servicing Portfolio Report” has the meaning set forth in Section 7.3(a). 
  
 “Single Family Mortgage Loan” means a Mortgage Loan secured by a Mortgage on
improved real property on which is located a 1-to-4 family residence. 
  
 “Standard Warehouse Period” means, for any Mortgage Loan, the maximum number of days a Warehousing Advance against that type of Mortgage Loan, other than against an Aged Mortgage Loan, may remain outstanding, as set forth
in Exhibit H. 
  
 “Statement Date” means the Audited
Statement Date or the Interim Statement Date, as applicable. 
  
 “Sublimit” means the aggregate amount of Warehousing Advances (expressed as a dollar amount or as a percentage of the Warehousing Commitment Amount) that is permitted to be outstanding at any one time against a specific
type of Eligible Loan. 
  
 “Subordinated Debt” means (a) all
indebtedness of Borrower for borrowed money that is effectively subordinated in right of payment to all present and future Obligations either (1) under a Subordination of Debt Agreement on the form prescribed by Lender or (2) otherwise on terms
acceptable to Lender, and (b) solely for purposes of Section 8.5, all indebtedness of Borrower that is required to be subordinated by Sections 5.1(b) and 7.11. 
  

“Subprime Mortgage Loan” has the meaning set forth in Exhibit H. 
  
 “Subsidiary” means any corporation, partnership, association or other business entity in which more than 50% of the shares
of stock or other ownership interests having voting power for the election of directors, managers, trustees or other Persons performing similar functions is at the time owned or controlled by any Person either directly or indirectly through one or
more Subsidiaries of that Person. 
  
 “Tangible Net Worth” means
the excess of a Person’s (and, if applicable, that Person’s Subsidiaries, on a consolidated basis) total assets over total liabilities as of the date of determination, each determined in accordance with GAAP applied in a manner consistent
with the most recent audited financial statements delivered to Lender under the Existing Agreement, plus that portion of Subordinated Debt not due within 1 year of that date. For purposes of calculating a Person’s Tangible Net Worth, advances
or loans to shareholders, directors, officers, employees or Affiliates, investments in Affiliates, assets pledged to secure any liabilities not included in the Debt of that Person, intangible assets, those other assets that would be deemed by HUD to
be non-acceptable in calculating adjusted net worth in accordance with its requirements in effect as of that date, as those requirements appear in the “Consolidated Audit Guide for Audits of HUD Programs,” and other assets Lender deems
unacceptable, in its sole discretion, must be excluded from that Person’s total assets. 
  
 “Third Party Originated Loan” means a Mortgage Loan originated and funded by a third party (other than with funds provided by Borrower at closing to purchase the Mortgage Loan) and subsequently
purchased by Borrower. 
  
 “Title I Mortgage Loan” means an FHA
co-insured closed-end First Mortgage Loan or Second Mortgage Loan that is underwritten in accordance with HUD underwriting standards for the Title I 

  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-10	 	 

 
Property Improvement Program set forth in, and that is reported for insurance under, the Mortgage Insurance Program authorized and administered under Title I
of the National Housing Act of 1934, as amended, and the regulations related to that statute 
  
 “Trust Receipt” means a trust receipt in a form approved by and under which Lender may deliver any document relating to the Collateral to Borrower for correction or completion. 
  
 “Warehousing Advance” means a disbursement by Lender under Section 1.1.

  
 “Warehousing Advance Request” has the meaning set forth in
Section 2.1. 
  
 “Warehousing Collateral Value” means, as of any
date of determination, (a) with respect to any Eligible Loan, the lesser of (1) the amount of any Warehousing Advance made, or that could be made, against such Eligible Loan under Exhibit H or (2) an amount equal to the Advance Rate for the
applicable type of Eligible Loan multiplied by the Fair Market Value of such Eligible Loan; (b) if Eligible Loans have been exchanged for Agency Securities, the lesser of (1) the amount of any Warehousing Advances outstanding against the Eligible
Loans backing the Agency Securities or (2) an amount equal to the Advance Rates for the applicable types of Eligible Loans backing the Agency Securities multiplied by the Fair Market Value of the Agency Securities; and 

	(c)	with respect to cash, the amount of the cash. 

  
 “Warehousing Commitment” means the obligation of Lender to make Warehousing Advances to Borrower under Section 1.1. 
  
 “Warehousing Commitment Amount” means $150,000,000. Notwithstanding the
foregoing, during the period from August 4, 2003, to and including August 22, 2003, the Warehousing Commitment Amount will be temporarily increased to $175,000,000, On the first Business Day following the expiration of the temporary increase of the
Warehousing Commitment Amount, Borrower must repay to Lender the amount by which the outstanding Warehousing Advances exceed the Warehousing Commitment Amount. 
  

“Warehousing Commitment Fee” has the meaning set forth in Section 3.5. 
  
 “Warehousing Fee” has the meaning set forth in Section 3.6. 
  
 “Warehousing Maturity Date” has the meaning set forth in Section 1.2. 
  
 “Warehousing Note” has the meaning set forth in Section 1.3. 
  
 “Wet Settlement Advance” means with respect to any Warehousing Advance, the
time from the date the Warehousing Advance is made until the date of Lender’s receipt of the Collateral Documents required by Article 2 and the Exhibits and documents referenced in that Article. 
  
 “Wire Disbursement Account” means a demand deposit account maintained at the
Funding Bank in Lender’s name for clearing wire transfers requested by Borrower to fund Warehousing Advances. 
  
 “Wire Fee” has the meaning set forth in Section 3.6. 
  
 “Working Capital Line” means any line of credit available to Borrower for general working capital purposes and approved by Lender (which approval may be
rescinded by Notice to Borrower). 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-11	 	 

	12.2. 	Other Definitional Provisions; Terms of Construction 

  

	12.2 (a) 	Accounting terms not otherwise defined in this Agreement have the meanings given to those terms under GAAP. 

  

	12.2 (b) 	Defined terms may be used in the singular or the plural, as the context requires. 

  

	12.2 (c) 	All references to time of day mean the then applicable time in Chicago, Illinois, unless otherwise expressly provided. 

  

	12.2 (d) 	References to Sections, Exhibits, Schedules and like references are to Sections, Exhibits, Schedules and the like of this Agreement unless otherwise expressly provided.

  

	12.2 (e) 	The words “include,” “includes” and “including” are deemed to be followed by the phrase “without limitation.” 

  

	12.2 (f) 	Unless the context in which it is used otherwise clearly requires, the word “or” has the inclusive meaning represented by the phrase “and/or.”

  

	12.2 (g) 	All incorporations by reference of provisions from other agreements are incorporated as if such provisions were fully set forth into this Agreement, and include all necessary
definitions and related provisions from those other agreements. All provisions from other agreements incorporated into this Agreement by reference survive any termination of those other agreements until the Obligations of Borrower under this
Agreement and the Warehousing Note are irrevocably paid in full and the Warehousing Commitment is terminated. 

  

	12.2 (h) 	All references to the Uniform Commercial Code shall be deemed to be references to the Uniform Commercial Code in effect on the date of this Agreement in the applicable jurisdiction.

  

	12.2 (i) 	Unless the context in which it is used otherwise clearly requires, all references to days, weeks and months mean calendar days, weeks and months. 

  
 End of Article 12 
  

					
	 Dated: 5/31/2003
 Amended: 8/6/2003
	 	Page 12-12Master Repurchase Agreement, dated 08/08/2003

 EXHIBIT 10.7 
  
 EXECUTION COPY 

  
 MASTER REPURCHASE AGREEMENT 
  
 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC, as buyer 
 (“Buyer”, which term shall include any “Principal” 
 as defined and provided for in Annex I) or as agent pursuant hereto (“Agent”), and 
  
 HOMEBANC MORTGAGE CORPORATION, as seller (“Seller”), 
  
 Dated August 8, 2003 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

			
	 1.
	  	 Applicability
	  	1
			
	 2.
	  	 Definitions
	  	1
			
	 3.
	  	 Program; Initiation of Transactions
	  	19
			
	 4.
	  	 Repurchase
	  	20
			
	 5.
	  	 Price Differential
	  	21
			
	 6.
	  	 Margin Maintenance
	  	22
			
	 7.
	  	 Income Payments
	  	22
			
	 8.
	  	 Security Interest
	  	23
			
	 9.
	  	 Payment and Transfer
	  	23
			
	 10.
	  	 Conditions Precedent
	  	24
			
	 11.
	  	 Program; Costs
	  	26
			
	 12.
	  	 Servicing
	  	27
			
	 13.
	  	 Representations and Warranties
	  	28
			
	 14.
	  	 Covenants
	  	33
			
	 15.
	  	 Events of Default
	  	38
			
	 16.
	  	 Remedies Upon Default
	  	40
			
	 17.
	  	 Reports
	  	42
			
	 18.
	  	 Repurchase Transactions
	  	44
			
	 19.
	  	 Single Agreement
	  	44
			
	 20.
	  	 Notices and Other Communications
	  	44
			
	 21.
	  	 Entire Agreement; Severability
	  	46
			
	 22.
	  	 Non assignability
	  	46
			
	 23.
	  	 Set-off
	  	46

  

 -i- 

					
			
	 24.
	  	 Binding Effect; Governing Law; Jurisdiction
	  	47
			
	 25.
	  	 No Waivers, Etc.
	  	47
			
	 26.
	  	 Intent
	  	47
			
	 27.
	  	 Disclosure Relating to Certain Federal Protections
	  	48
			
	 28.
	  	 Power of Attorney
	  	48
			
	 29.
	  	 Buyer May Act Through Affiliates
	  	49
			
	 30.
	  	 Indemnification; Obligations
	  	49
			
	 31.
	  	 Counterparts
	  	49
			
	 32.
	  	 Confidentiality
	  	49
			
	 33.
	  	 Recording of Communications
	  	50
			
	 34.
	  	 [RESERVED]
	  	50
			
	 35.
	  	 Periodic Due Diligence Review
	  	50
			
	 36.
	  	 Authorizations
	  	51

  
 SCHEDULES 
  
 Schedule 1 – Representations and Warranties with Respect to Purchased Mortgage Loans

  
 Schedule 2 – Authorized Representatives 
  
 ANNEXES 
  
 Annex I – Buyer Acting as Agent 
  
 EXHIBITS 
  
 Exhibit A – Form of Transaction Request 
  
 Exhibit B – Form of Purchase Confirmation 
  
 Exhibit C – Form
of Mortgage Loan Schedule and Exception Report 
  
 Exhibit D – Form of
Officer’s Compliance Certificate 
  
 Exhibit E – Form of Opinion of
Seller’s counsel 
  
 Exhibit F – Underwriting Guidelines 
  

 -ii- 

 Exhibit G – Officer’s Certificate of the Seller and Corporate Resolutions of Seller 
  
 Exhibit H – Seller’s Tax Identification Number 
  
 Exhibit I – Existing Indebtedness 
  
 Exhibit J – [RESERVED] 
  
 Exhibit K – Custodial and Bank Fee Schedule 
  

Exhibit L – Form of Servicer Notice 
  
 Exhibit M – Approved Takeout Investors 
  

 -iii- 

	 	1.	Applicability 

  
 From time to time the parties hereto may enter into transactions in which Seller agrees to transfer to Buyer Mortgage Loans (as hereinafter defined)
against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller such Mortgage Loans at a date certain or on demand, against the transfer of funds by Seller. Each such transaction shall be referred to herein as a
“Transaction” and, unless otherwise agreed in writing, shall be governed by this Agreement, including any supplemental terms or conditions contained in any annexes identified herein, as applicable hereunder. 
  

	 	2.	Definitions 

  
 Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings: 
  
 “Acceptable State” means any state acceptable pursuant to
Seller’s 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. 
  

 “Adjusted Tangible Net Worth” means, on any day: 
  
 (a) the excess of the Seller’s total assets over total liabilities on
that day – including assets and liabilities of its wholly-owned subsidiaries – each being determined in accordance with GAAP; 
  
 less (b) the value included in the financial statements for mortgage loan servicing rights and capitalized excess mortgage loan servicing fees;

  
 less (c) aggregate investments in Subsidiaries and
Affiliates included in the financial statements; 
  
 less
(d) net total advances to Subsidiaries and Affiliates outstanding; 
  
 less (e) goodwill and all other assets not supported by or representative of a tangible asset, which intangible assets would be deemed by HUD to be unacceptable for the purpose of calculating adjusted net worth in accordance with HUD
requirements in effect as of such day; 
  
 less (f)
encumbered cash and cash equivalents; 
  
 plus (g) a value
for the capitalized mortgage loan servicing rights excluded in clause (b) above that is an amount equal to the lesser of (i) seventy-five percent (75%) of the value of such capitalized mortgage loan servicing rights as determined by the most recent
appraisal thereof approved by the Buyer and (ii) one percent (1%) of the unpaid principal balance of the portfolio of Serviced Loans in respect of such capitalized mortgage loan servicing rights. 
  
 “Affiliate” means, with respect to any Person, any
“affiliate” of such Person, as such term is defined in the Bankruptcy Code. 
  
 “Aged Loan” means any Mortgage Loan for which the Funding Date is more than 90 days but no more than 120 days earlier than any date of determination. 
  
 “Agency” means Freddie Mac, Fannie Mae or GNMA, as
applicable. 
  
 “Agency Security” means a
mortgage-backed security issued by an Agency. 
  
 “Agent” means Credit Suisse First Boston Mortgage Capital LLC or any affiliate or successor thereto. 
  
 “Agreement” means this Master Repurchase Agreement, as it may be amended, supplemented or otherwise modified from time to time.

  
 “Alt A Mortgage Loan” means a first lien
Mortgage Loan originated in accordance with the criteria established by Buyer for Alt-A Mortgage Loans, as determined by Buyer in its sole discretion and which has a FICO score of at least 600. 
  
 “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. 
  

 -2- 

 “Asset Tape” means a remittance report on a monthly basis or requested by Buyer pursuant
to Section 17d hereof containing servicing information, including, without limitation, those fields reasonably requested by Buyer from time to time, on a loan-by-loan basis and in the aggregate, with respect to the Purchased Mortgage Loans serviced
by Seller or any Servicer for the month (or any portion thereof) prior to the Reporting Date. 
  
 “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 Buyer. 
  
 “Authorized Parties” has the meaning set forth in Section 32 hereof. 
  
 “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. 
  
 “Bid
Fee” 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 and (B) a public or bank holiday in New York City. 
  
 “Buyer” means Credit Suisse First Boston Mortgage Capital LLC, and any successor hereunder. 
  
 “Buyer’s Margin Amount” means with respect to any Transaction as of any date of determination, an amount equal to the product of (A)
Buyer’s Margin Percentage and (B) the Purchase Price for such Transaction. 
  
 “Buyer’s Margin Percentage” means, with respect to any Transaction as of any date, a percentage equal to the percentage obtained by dividing the (A) Market Value of the Purchased Mortgage Loans
on the Purchase Date for such Transaction by (B) the Purchase Price on the Purchase Date for such Transaction; provided, that, with respect to any Mortgage Loan which was not an Exception Mortgage Loan on the related Purchase Date and which, as of
the date of determination, is an Exception Mortgage Loan, Buyer’s Margin Percentage as of such date of determination shall be equal to the percentage obtained by dividing (A) the Market Value of such Mortgage Loan on the related Purchase Date
by (B) the amount the Purchase Price would have been on the Purchase Date if such Mortgage Loan had been categorized as the type of Mortgage Loan (e.g., Exception Mortgage Loan, etc.) that it is categorized on the date of determination. 

 

 -3- 

 “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. 
  
 “Change in Control” means: 
  
 (A) any transaction or event as a result of which GTCR ceases to own, beneficially or of record, at least 51% of the stock of Seller;

  
 (B) the sale, transfer, or other disposition
of all or substantially all of Seller’s assets (excluding any such action taken in connection with any securitization transaction); or 
  
 (C) the consummation of a merger or consolidation of Seller with or into another entity or any other corporate reorganization, if more
than 50% of the combined voting power of the continuing or surviving entity’s stock outstanding immediately after such merger, consolidation or such other reorganization is owned by Persons who were not stockholders of Seller immediately prior
to such merger, consolidation or other reorganization. 
  
 “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 Buyer, into which all collections and proceeds on or in respect of the Mortgage Loans shall be deposited
by Servicer. 
  
 “Committed Mortgage Loan” means
a Mortgage Loan which is the subject of a Take-out Commitment with a Take-out Investor. 
  
 “Confidential Information” means all information relating to the Mortgage Loans provided by Seller to Buyer, including, without -limitation; (i) information regarding the mortgagor of any Mortgage Loan (including any “non-public personal information” as that term is defined in Title V of the
Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801 et seq.), to the extent no exemption is accorded thereunder and (ii) analyses, compilations, studies or other documents prepared by Seller, or by its agents, representatives
(including attorneys, accountants, consultants and financial advisors) or employees which contain or otherwise reflect such information or the Seller’s review of such information. Notwithstanding the foregoing or anything to the contrary set
forth herein, the term “Confidential Information” shall not be deemed to include information which (1) was already in the Buyer’s or its representatives’ possession prior to the date hereof, (2) is or becomes available to the
Buyer or its representatives’ from a source other than Seller, provided that such source is not known by Buyer to be bound by a confidentiality agreement with Seller, (3) is or becomes generally available to the public, (4) was or is
independently developed by the Buyer and/or its representatives, and/or (5) is required by law or requested by judicial or regulatory process, or deemed necessary by Buyer in connection with the enforcement of its rights, to be disclosed.

  

 -4- 

 “Conforming Mortgage Loan” means a first lien Mortgage Loan originated in accordance
with the criteria of an Agency for purchase of Mortgage Loans, including, without limitation, conventional Mortgage Loans, FHA Loans and VA Loans, as determined by Buyer in its sole discretion. 
  
 “CSFBMC Mortgage Loan” means a Mortgage Loan which is the
subject of a Take-out Commitment with Buyer or any Affiliate thereof. 
  
 “Custodial Agreement” means the custodial agreement dated as of the date hereof, among Seller, Buyer and Custodian as the same may be amended from time to time. 
  
 “Custodian” means JPMorgan Chase Bank, a New York banking corporation, or such other party specified by
Buyer and agreed to by Seller, which approval shall not be unreasonably withheld. 
  
 “Default” means an Event of Default or an event that with notice or lapse of time or both would become an Event of Default. 
  
 “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. 
  
 “E&O Insurance” means insurance coverage with respect to employee errors, omissions, 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. 
  
 “Effective Date” means the date upon which the conditions precedent set forth in Section 10 shall have been satisfied. 
  
 “Electronic Tracking Agreement” means an Electronic Tracking
Agreement among Buyer, Seller, MERS and MERSCORP; Inc, to the extent applicable. 
  
 “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 Seller is a member and (ii) solely for purposes of potential liability under Section 302(c)(ll) of ERISA and Section 412(c)(ll) 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 Seller is a member. 
  
 “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 

  

 -5- 

 
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. 
  
 “Event of Termination” means with
respect to Seller (i) with respect to any Plan, a reportable event, as defined in Section 4043 of ERISA, as to which the PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified with 30 days of the occurrence
of such event, or (ii) the withdrawal of Seller or any ERISA Affiliate thereof from a Plan during a plan year in which it is a substantial employer, as defined in Section 4001 (a)(2) of ERISA, or (iii) the failure by Seller or any ERISA Affiliate
thereof to meet the minimum funding standard of Section 412 of the Code or Section 302 of ERISA with respect to any Plan, 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, or (iv) the distribution under Section 4041 of ERISA of a notice of intent to terminate any Plan or any action taken by Seller or any ERISA Affiliate thereof to terminate any plan, or (v) the adoption of an amendment
to any Plan that, pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, would result in the loss of tax-exempt status of the trust of which such Plan is a part if Seller or any ERISA Affiliate thereof fails to timely provide security
to the Plan in accordance with the provisions of said sections, or (vi) the institution by the PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or (vii) the receipt by
Seller or any ERISA Affiliate thereof of a notice from a Multiemployer Plan that action of the type described in the previous clause (vi) has been taken by the PBGC with respect to such Multiemployer Plan, or (viii) any event or circumstance exists
which may reasonably be expected to constitute grounds for Seller or any ERISA Affiliate thereof to incur liability under Title IV of ERISA or under Sections 412(c)(ll) or 412(n) of the Code with respect to any Plan. 
  
 “Exception Mortgage Loan” means any Mortgage Loan which is
otherwise ineligible for purchase hereunder, or which otherwise becomes ineligible for purchase hereunder and which is approved by Buyer in its sole discretion; provided, however, that Seller shall pay to Buyer a fee of $25 with
respect to any such approval of an Exception Mortgage Loan; and provided, that upon 30 days’ notice to the Seller, Buyer may change such Exception Mortgage Loan approval fee. The Pricing Rate, Market Value, Purchase Price and
Buyer’s Margin Percentage with respect to Exception Mortgage Loans shall be set in the sole discretion of Buyer. Buyer may at any time, and in its sole discretion, no longer consider a Mortgage Loan an Exception Mortgage Loan, in which case
such Mortgage Loan shall have a Market Value of zero. 
  
 “Existing Indebtedness” has the meaning specified in Section 13(a)(23) hereof. 
  
 “Fannie Mae” means Fannie Mae, the government sponsored enterprise formerly known as the Federal National Mortgage Association.

  
 “FHA” means the Federal Housing
Administration, an agency within the United States Department of Housing and Urban Development, or any successor thereto, and including 

  

 -6- 

 
the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the FHA Regulations. 
  
 “FHA Approved Mortgagee” means a corporation or institution
approved as a mortgagee by the FHA under the National Housing Act, as amended from time to time, and applicable FHA Regulations, and eligible to own and service mortgage loans such as the FHA Loans. 
  
 “FHA Loan” means a Mortgage Loan which is the subject of an
FHA Mortgage Insurance Contract or is eligible for FHA Mortgage Insurance and which will be promptly submitted and will be subject to an FHA Mortgage Insurance Contract within 60 days of the related Funding Date. 
  
 “FHA Mortgage Insurance” means, mortgage insurance
authorized under the National Housing Act, as amended from time to time, and provided by the FHA. 
  
 “FHA Mortgage Insurance Contract” means the contractual obligation of the FHA respecting the insurance of a Mortgage Loan. 
  
 “FHA Regulations” means the regulations promulgated by the
Department of Housing and Urban Development under the National Housing Act, as amended from time to time and codified in 24 Code of Federal Regulations, and other Department of Housing and Urban Development issuances relating to FHA Loans, including
the related handbooks, circulars, notices and mortgagee letters. 
  
 “FICO” means Fair Isaac & Co., or any successor thereto. 
  
 “Foreclosed Loan” means a Mortgage Loan, the property securing which has been foreclosed upon by Seller or the Servicer. 
  
 “Freddie Mac” means the Federal Home Loan Mortgage Corporation or any successor thereto. 
  
 ”Funding Date” means with respect to each Mortagage
Loan, the date of the disbursement of funds to the related Mortgagor in connection with the origination of such Mortgage Loan. 
  
 “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. 
  
 “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 Seller, or
Buyer, as applicable. 
  

 -7- 

 “Gross Margin” means, with respect to each adjustable rate Mortgage Loan, the fixed
percentage amount set forth in the related Mortgage Note. 
  
 “GTCR” means GTCR Fund VII, L.P., a limited partnership organized under the laws of Delaware. 
  
 “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 Buyer. 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 Loans” means any Mortgage Loans classified as (a) “high cost” loans under the Home Ownership and Equity
Protection Act of 1994, as amended or (b) “high cost,” “threshold,” “covered” or “predatory” loans under any other applicable state, federal or local law (or a similarly classified loan using different
terminology under a law imposing heightened 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 the Seller, any
principal received thereon or in respect thereof and all interest, dividends or other distributions thereon. 
  
 “Indebtedness” means, for any Person: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the
issuance and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, Contingent or otherwise, to repurchase such Property from such Person); (b) obligations of such Person to pay the deferred
purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business, so long as such trade accounts payable are payable
within 90 days of the date the respective goods are delivered or the respective services are rendered; (c) Indebtedness of others secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so secured has been
assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments issued or accepted by banks and other financial institutions for the account of such Person (excluding letters of
credit fully secured by cash or marketable securities); (e) Capital Lease Obligations of such Person; (f) obligations of such Person under repurchase agreements, sale/buy-back agreements or like arrangements; (g) Indebtedness of others Guaranteed by
such Person; (h) all obligations of 

  

 -8- 

 
such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; and (i) Indebtedness of general partnerships of which
such Person is a general partner. 
  
 “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 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 Take-out Commitment, 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 Seller and an Affiliate of Buyer or such other party acceptable to Buyer in its sole discretion, which agreement is acceptable to Buyer in its sole discretion.

  
 “Jumbo Mortgage Loan” means an A or Alt-A
Loan whose original principal amount is more than the maximum allowed by Fannie Mae and Freddie Mac. 
  
 “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 4 a” 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 Buyer is offered Dollar deposits at or about 11:00 a.m., (Eastern 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. 
  
 “Liquidity”
means the Seller’s unencumbered cash and cash equivalents plus (x) the lesser of the book value or the par value of Mortgage Loans that has either not been pledged to the Buyer or any other Person or otherwise encumbered, (y) the sum of the
unused borrowing availability under any of the Seller’s credit agreements to the extent (if any) that the collateral value of Mortgage Loans that have been pledged to secure the Seller’s debt to the lenders under such credit agreements
exceeds the outstanding borrowings thereunder and (z) the excess (if any) of (i) the lesser of the book value or the par value of Mortgage Loans under this Agreement or any such other credit agreement over (ii) the collateral value (or its
equivalent under such other credit agreement) of such Mortgage Loans under the agreement which it is pledged to secure (the value described in this clause (z) being commonly referred to in the mortgage banking industry as the “haircut”).

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

 -9- 

 “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 Buyer (or an Affiliate thereof) in its sole discretion. Without limiting
the generality of the foregoing, Seller acknowledges that (a) in the event that a Purchased Mortgage Loan is not subject to a Take-out Commitment, Buyer may deem the Market Value for such Mortgage Loan to be no greater than par and (b) the Market
Value of a Purchased Mortgage Loan may be reduced to zero by Buyer if: 
  
 (i) a breach of a representation, warranty or covenant made by Seller in this Agreement with respect to such Purchased Mortgage Loan has occurred and is continuing; 
  
 (ii) such Purchased Mortgage Loan (other than a Repurchased
Mortgage Loan) is a Non-Performing Mortgage Loan; 
  
 (iii) such Purchased Mortgage Loan has been released from the possession of the Custodian under the Custodial Agreement (other than to a Take-out Investor pursuant to a Bailee Letter) for a period in excess of ten (10) calendar days;

  
 (iv) such Purchased Mortgage Loan has been
released from the possession of the Custodian under the Custodial Agreement to a Take-out Investor pursuant to a Bailee Letter for a period in excess of 45 calendar days; 
  
 (v) such Purchased Mortgage Loan has been subject to a Transaction hereunder for a period of greater than
(a) 90 days for all Mortgage Loans other than Aged Loans or Repurchased Mortgage Loans or (b) 120 days with respect to each Aged Loan or (c) or 180 days with respect to each Repurchased Mortgage Loan; 
  
 (vi) when the Purchase Price for such Purchased Mortgage
Loan is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all Repurchased Mortgage Loans that are Purchased Mortgage Loans exceeds $2.5 million; 
  
 (vii) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans,
the aggregate Purchase Price of all Aged Loans that are Purchased Mortgage Loans exceeds $10 million; 
  
 (viii) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans, the aggregate Purchase Price
of all Alt A Mortgage Loans that are Purchased Mortgage Loans exceeds $50 million; 
  

 -10- 

 (ix) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased
Mortgage Loans, the aggregate Purchase Price of all Second Lien Mortgage Loans that are Purchased Mortgage Loans exceeds $20 million; 
  
 (x) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans, the aggregate Purchase Price of
all Sub-Prime Mortgage Loans that are Purchased Mortgage Loans exceeds $5 million; or 
  
 (xi) such Purchased Mortgage Loan is a Repurchased Mortgage Loan for which the Mortgaged Property has been foreclosed upon or has been
converted to REO Property. 
  
 “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 Seller or any Affiliate that is a party to any Program Agreement
taken as a whole; (b) a material impairment of the ability of Seller or any Affiliate that is a party to any Program Agreement to perform under any Program Agreement and to avoid any Event of Default; or (c) a material adverse effect upon the
legality, validity, binding effect or enforceability of any Program Agreement against Seller or any Affiliate that is a party to any Program Agreement. 
  
 “Maximum Aggregate Purchase Price” means ONE HUNDRED MILLION DOLLARS ($100,000,000). 
  
 “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 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 E 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. 
  

 -11- 

 “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 Sub-Prime Mortgage Loan, Exception Mortgage Loan, Jumbo Mortgage Loan, Alt A Mortgage Loan, Second Lien Mortgage Loan or Conforming Mortgage Loan which is a closed-end, fixed
or floating-rate, one-to-four-family residential mortgage or home equity loan evidenced by a promissory note and secured by a mortgage, 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 Buyer, 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 Funding Date with respect to such Mortgage Loan is no earlier than sixty (60) 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 Seller or Custodian, and delivered to Buyer 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 Buyer. 
  
 “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 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. 
  

 -12- 

 “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-Performing Mortgage Loan” means (i) any Mortgage Loan for which any payment of principal or interest is more than twenty-nine (29)
days past due, (ii) any Mortgage Loan with respect to which the related mortgagor is in bankruptcy or (iii) any Mortgage Loan with respect to which the related mortgaged property is in foreclosure. 
  
 “Notice Date” has the meaning given to it in Section 3(b)
hereof. 
  
 “Obligations” means (a) all of
Seller’s 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 Buyer, its 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 Buyer or on behalf of Buyer 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 Seller’s 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 Buyer of its rights under the Program Agreements, including, without limitation, attorneys’ fees and disbursements and court costs; and (d) all of Seller’s indemnity
obligations to Buyer or Custodian or both pursuant to the Program Agreements. 
  
 “PBCG” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA. 
  
 “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” means an annual rate of interest equal to the greater of (a) the Pricing Rate plus 2% or (b) the Mortgage Interest Rate. 
  
 “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 Repurchase Date. 
  
 “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 

  

 -13- 

 
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” means LIBOR plus: 
  
 (a) 2.00% with respect to Transactions the subject of which are Repurchased Mortgage Loans; 
  
 (b) 1.50% with respect to Transactions the subject of which
are Aged Loans (other than Repurchased Mortgage Loans); 
  
 (c) 1.20% with respect to Transactions the subject of which are Second Lien Mortgage Loans (other than Aged Loans or Repurchased Loans); 
  
 (d) 1.20% with respect to Transactions the subject of which are Sub-Prime Mortgage Loans (other than Aged
Loans or Repurchased Mortgage Loans); 
  
 (e)
0.90% with respect to Transactions the subject of which are Conforming Mortgage Loans (other than Second Lien Mortgage Loans or Aged Loans or Repurchased Mortgage Loans); 
  
 (f) 0.90% with respect to Transactions the subject of which are Alt A Mortgage Loans (other than Second Lien
Mortgage Loans or Aged Loans or Repurchased Mortgage Loans); 
  
 (g) 0.90% with respect to Transactions the subject of which are Jumbo Mortgage Loans (other than Second Lien Mortgage Loans or Aged Loans or Repurchased Mortgage Loans); and 
  
 (h) the rate determined in the sole discretion of Buyer with
respect to Transactions the subject of which are Exception Mortgage Loans and any other Transactions so identified by the .Buyer in agreeing to enter into Transaction with respect to such Exception Mortgage Loan. 
  
 The Pricing Rate shall change in accordance with LIBOR, as provided in
Section 5(a). 
  
 “Principal” has the meaning
given to it in Annex I. 
  
 “Program Agreements”
means, collectively, the Custodial Agreement, this Agreement, the Electronic Tracking Agreement, if entered into, and, with respect to each Exception Mortgage Loan, a Purchase Confirmation. 
  
 “Property” means any right or interest in or to property of
any kind whatsoever, whether real, personal or mixed and whether tangible or intangible. 
  

 -14- 

 “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 Seller to Buyer. 
  
 “Purchase Price” means the price at which each Purchased Mortgage Loan is transferred by Seller to Buyer, which shall equal: 
  
 (i) on the Purchase Date, in the case of Purchased Mortgage Loans which are Conforming Mortgage Loans, Jumbo Mortgage Loans,
Alt-A Mortgage Loans, Sub-Prime Mortgage Loans and Second Lien Mortgage Loans (other than, in all cases, Purchased Mortgage Loans which are Repurchased Mortgage Loans), the lesser of either: (x) the product of (1) the Market Value of such Purchased
Mortgage Loan multiplied by (2) the applicable Purchase Price Percentage for such Mortgage Loan or (y) the outstanding principal amount thereof as set forth on the related Mortgage Loan Schedule; 
  
 (ii) On the Purchase Date, in the case of Purchased Mortgage Loans which are
Repurchased Mortgage Loans, the lesser of (1) the product of (A)(x) for the first 30 days in which the Purchased Mortgage Loan is subject to a Transaction, 75%; and (y) thereafter, 75% minus an additional 10% for each 30-day period following the
90th day in which the Purchased Mortgage Loan is subject to a Transaction multiplied by (B) the outstanding
principal balance thereof as set forth in the related Mortgage Loan Schedule or (2) 90% of the value reflected in the most recent BPO; or 
  
 (iii) on any day after the Purchase Date, except where Buyer and the Seller agree otherwise, the amount determined under the immediately preceding clauses
(i) or (ii) decreased by the amount of any cash transferred by the Seller to Buyer pursuant to Section 4(c) hereof or applied to reduce the Seller’s obligations under clause (ii) of Section 4(b) hereof or under Section 6 hereof. 
  
 “Purchase Price Percentage” means, with respect to each
Mortgage Loan, the following percentage, as applicable: 
  
 (a) 98% with respect to Purchased Mortgage Loans that are Alt A Mortgage Loans; 
  
 (b) 98% with respect to Purchased Mortgage Loans that are Jumbo Mortgage Loans; 
  
 (c) 98% with respect to Transactions the subject of which
are first lien Conforming Mortgage Loans; 
  
 (d)
97% with respect to Transactions the subject of which are Second Lien Mortgage Loans; 
  
 (e) 97% with respect to Purchased Mortgage Loans that are Sub-Prime Mortgage Loans; 
  

 -15- 

 (f) with respect to Transactions the subject of which are Exception Mortgage Loans, a
percentage to be determined by Buyer in its sole discretion. 
  
 “Purchased Mortgage Loans” means the collective reference to Mortgage Loans together with the Repurchase Assets related to such Mortgage Loans transferred by Seller to Buyer 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. 
  
 “Records” means all instruments, agreements and other books,
records, and reports and data generated by other media for the storage of information maintained by Seller 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 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 thereto in Section 8 hereof. 
  
 “Repurchase
Date” means the earlier of (i) the Termination Date, (ii) the date set forth in the applicable Purchase Confirmation, (iii) the date determined by application of Section 16 hereof or (iv) the date identified to Buyer by Seller as the date
that the related Mortgage Loan is to be sold pursuant to a Takeout Commitment. 
  
 “Repurchase Price” means the price at which Purchased Mortgage Loans are to be transferred from Buyer to Seller upon termination of a Transaction, which will be determined in each case (including
Transactions terminable upon demand) as the sum of the Purchase Price and the accrued but unpaid Price Differential as of the date of such determination. 
  
 “Repurchased Mortgage Loan” means a Mortgage Loan (a) which is repurchased by Seller from DLJ Mortgage Capital, Inc. as a result of a
breach of representations and warranties under the agreed upon terms in which the claimed breach is not a result of fraud or material misrepresentation of fact by any party to the Mortgage Loan or consumer credit law violation, (b) where the claimed
breach is expressly identified to Buyer in writing and (c) which is subject to a Transaction hereunder for no more than 180 days. In no event will a Repurchased Mortgage Loan be subject to a Transaction hereunder as a “Repurchased Mortgage
Loan” if (i) there is a breach of representation and warranty in respect of such Repurchased Mortgage Loan 

  

 -16- 

 
other than the breach identified in writing to the Buyer pursuant to subclause (b) of this definition or (ii) the related Mortgaged Property has been
foreclosed upon or has been converted to REO Property. 
  
 “Request for Certification” means a notice sent to the Custodian reflecting the sale of one or more Purchased Mortgage Loans to Buyer 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, the chief operating officer, the executive vice president, the senior vice president, the treasurer or, with respect to financial matters, the chief financial officer of 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 where there is a second lien on the related Mortgaged Property. 
  
 “Seller” means HomeBanc Mortgage Corporation or its permitted successors and assigns. 
  
 “Serviced Loans” means all Mortgage Loans serviced or
required to be serviced by Seller under any arrangement, whether or not in writing, pursuant to which Seller acts as servicer of such Mortgage Loans, irrespective of whether the actual servicing is done by another Person (i.e.- a subservicer)
retained by Seller for that purpose. 
  
 “Servicer” means Seller, or any other servicer approved by Buyer in its sole discretion. 
  
 “Servicer Notice” means the notice acknowledged by a Servicer substantially in the form of Exhibit L hereto. 
  
 “Servicing Agreement” means any servicing agreement entered
into among Seller, Buyer and a Servicer as the same may be amended from time to time. 
  
 “SIPA” means the Securities Investor Protection Act of 1970, as amended from time to time. 
  
 “Subordinated Debt” means, Indebtedness of Seller 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 Seller in respect of such Indebtedness are 

  

 -17- 

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

  
 “Sub-Prime Mortgage Loan” means a first lien
Mortgage Loan originated in accordance with the criteria established by Buyer for sub-prime mortgage loans, as determined by Buyer in its sole discretion. 
  
 “Take-out Commitment” means a commitment of Seller to either (a) sell one or more identified Mortgage Loans to a Take-out Investor or (b)
(i) swap one or more identified Mortgage Loans with a Take-out Investor that is an Agency for an Agency Security, and (ii) sell the related Agency Security to a Take-out Investor, and in each case, the corresponding Take-out Investor’s
commitment back to Seller to effectuate any of the foregoing, as applicable. With respect to any Take-out Commitment with an Agency, the applicable agency documents list Buyer as sole subscriber. 
  
 “Take-out Investor” means (i) an Agency or (ii) other
institution which has made a Take-out Commitment and has been approved by Buyer as listed on Exhibit M, as amended from time to time in the sole good faith discretion of the Buyer. 
  
 “Termination Date” means the earlier of (a) August 7, 2004, and (b) the date of the occurrence of an Event
of Default. 
  
 “Test Period” means any calendar
quarter. 
  
 “Transaction” has the meaning set
forth in Section 1 hereof. 
  
 “Transaction
Request” means a request from Seller to Buyer, 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 Seller for underwriting and acquiring Mortgage Loans, which are set forth in the written policies and procedures of the Seller, a copy of which
is attached hereto as Exhibit F and such other 

  

 -18- 

 
guidelines as are identified and approved in writing by Buyer, as amended from time to time in the sole discretion of the Buyer. 
  
 “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. 
  
 “VA Approved
Lender” means a lender which is approved by the VA to act as a lender in connection with the origination of VA Loans. 
  
 “VA Loan” means a Mortgage Loan which is the subject of a VA Loan Guaranty Agreement as evidenced by a VA Loan Guaranty Agreement, or a
Mortgage Loan which is eligible for a VA Loan Guaranty Agreement and which will be promptly submitted and subject to a VA Loan Guaranty Agreement within 60 days of the Funding Date. 
  
 “VA Loan Guaranty Agreement” means the obligation of the United States to pay a specific percentage of a
Mortgage Loan (subject to a maximum amount) upon default of the Mortgagor pursuant to the Servicemen’s Readjustment Act, as amended. 
  
 “Violation Deadline” has the meaning assigned thereto in Section 4(c) hereof.  
  

	 	3.	Program; Initiation of Transactions 

  
 a. From time to time, Buyer may purchase from Seller certain Mortgage Loans that have been either originated by Seller or purchased by Seller from other
originators. This Agreement is not a commitment by Buyer to enter into Transactions with Seller but rather sets forth the procedures to be used in connection with periodic requests for Buyer to enter into Transactions with Seller. Seller
hereby acknowledges that Buyer is under no obligation to agree to enter into, or to enter into, any Transaction pursuant to this Agreement. 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. 
  
 b. With respect to each Transaction involving Mortgage Loans, Seller shall give Buyer and Custodian at least 1 Business Day’s prior notice of any
proposed Purchase Date (the date on which such notice is given, the “Notice Date”); provided, that if Seller is delivering 25 or fewer Mortgage Loans on a Purchase Date, the notice shall be delivered on or before 10:30 a.m. (Eastern
time) on the Purchase Date. On the Notice Date, Seller shall (i) request that Buyer enter into a Transaction by furnishing to Buyer a Transaction Request, (ii) deliver to Buyer and Custodian a Mortgage Loan Schedule and (iii) deliver to Custodian a
Request for Certification and each Mortgage File in accordance with Section 10(b)(3) hereof. Following receipt of such request, Buyer may enter into such requested Transaction or may notify Seller of its intention not to enter into such Transaction.
In the event the Mortgage Loan Schedule provided by Seller contains erroneous computer data, is not formatted properly or the computer fields are otherwise improperly aligned, Buyer shall provide written or electronic notice to Seller describing
such 

  

 -19- 

 
error and Seller may either (a) give Buyer written or electronic authority to correct the computer data, reformat the Mortgage Loans or properly align the
computer fields or (b) correct the computer data, reformat or properly align the computer fields itself and resubmit the Mortgage Loan Schedule as required herein. In the event that the Seller gives Buyer authority to correct the computer data,
reformat the Mortgage Loan Schedule or properly align the computer fields, the Seller shall pay $10 per change and any other direct expenses incurred by Buyer; provided, that upon 30 days’ notice to the Sellers, Buyer may change such computer
correction fee. The Seller shall hold Buyer harmless for such correction, reformatting or realigning, as applicable, except as otherwise expressly provided herein. 
  
 c. With respect to each Exception Mortgage Loan, upon receipt of the Transaction Request, Buyer shall, consistent with this
Agreement, specify the terms for such proposed Transaction, including the Purchase Price, the Pricing Rate, the Market Value and the Repurchase Date in respect of such Transaction. The terms thereof shall be set forth in the Purchase Confirmation to
be delivered to Seller on or prior to the Purchase Date. 
  
 d.
With respect to each Exception Mortgage Loan, the Purchase Confirmation, together with this Agreement, shall constitute conclusive evidence of the terms agreed between Buyer and Seller with respect to the Transaction to which the Purchase
Confirmation relates, and Seller’s acceptance of the related proceeds shall constitute Seller’s agreement to the terms of such Purchase Confirmation. It is the intention of the parties that, with respect to each Exception Mortgage Loan,
each Purchase Confirmation shall not be separate from this Agreement but shall be made a part of this Agreement. In the event of any conflict between this Agreement and, with respect to each Exception Mortgage Loan, a Purchase Confirmation, the
terms of the Purchase Confirmation shall control with respect to the related Transaction. 
  
 e. Upon the satisfaction of the applicable conditions precedent set forth in Section 10 hereof, all of Seller’s interest in the Repurchase Assets shall pass to Buyer on the Purchase Date, against the transfer of
the Purchase Price to Seller. Upon transfer of the Mortgage Loans to Buyer 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 Buyer; provided that, prior to the recordation by the Custodian as provided for in the Custodial Agreement record title in the name of Seller to each Mortgage shall be retained by
Seller in trust, for the benefit of Buyer, for the sole purpose of facilitating the servicing and the supervision of the servicing of the Mortgage Loans. 
  

	 	4.	Repurchase 

  
 a. Seller shall repurchase the related Purchased Mortgage Loans from Buyer 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 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). Seller is obligated to repurchase and take physical possession of the Purchased Mortgage Loans from Buyer or its designee (including the Custodian) at Seller’s expense
on the related Repurchase Date. 
  

 -20- 

 b. Provided that no Default shall have occurred and is continuing, and Buyer has received the related
Repurchase Price upon repurchase of the Purchased Mortgage Loans, Buyer agrees to release its ownership interest hereunder in the Purchased Mortgage Loans (including, the Repurchase Assets related thereto) at the request of Seller. With respect to
payments in full by the related Mortgagor of a Purchased Mortgage Loan, Seller agrees to (i) provide Buyer with a copy of a report from the related Servicer indicating that such Purchased Mortgage Loan has been paid in full, (ii) remit to Buyer,
within two Business Days, the Repurchase Price with respect to such Purchased Mortgage Loans and (iii) provide Buyer a notice specifying each Purchased Mortgage Loan that has been prepaid in full. Buyer agrees to release its 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. 
  
 c. In the event that at any time any Purchased Mortgage Loan violates the applicable sublimit set forth in the definition of
Market Value, Buyer may, in its sole discretion, redesignate such Mortgage Loan as an Exception Mortgage Loan. If Buyer does not redesignate such Mortgage Loan as an Exception Mortgage Loan, and if Seller fails to notify Buyer within five (5)
Business Days following notice or knowledge of such violation that Seller does not want to receive a bid for such Mortgage Loan as described below, Buyer or an Affiliate of Buyer may offer to terminate Seller’s right and obligation to
repurchase such Mortgage Loan by paying Seller a price to be set by Buyer in its sole discretion (a “Bid”). Seller, within five (5) Business Days of receipt of Buyer’s bid (the “Violation Deadline”) may, in its
sole discretion, either (i) accept Buyer’s bid, terminating Seller’s right to repurchase such Mortgage Loan under this Agreement or (ii) immediately repurchase the Mortgage Loan at the Repurchase Price in accordance with this Section 4.
Seller shall pay Buyer a bid fee equal to $150 (the “Bid Fee”) with respect to each Mortgage Loan on which Buyer or its Affiliate makes a Bid, regardless of whether the Bid is accepted and such Bid Fee shall be due and payable to
Buyer on or before the Violation Deadline. Any amount paid by Buyer or its Affiliate to terminate Seller’s right to repurchase a Purchased Mortgage Loan if a Bid is accepted pursuant to this Section shall be applied by Buyer toward the
outstanding Repurchase Price for the applicable Transaction. 
  

	 	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, Buyer shall give Seller written or electronic notice of the amount of the Price Differential due
on such Price Differential Payment Date. On the Price Differential Payment Date, Seller shall pay to Buyer the Price Differential for such Price Differential Payment Date (along with any other amounts to be paid pursuant to Sections 7 hereof), by
wire transfer in immediately available funds. 
  
 b. If Seller
fails to pay all or part of the Price Differential by 3:00 p.m. (Eastern time) on the related Price Differential Payment Date, with respect to any Purchased Mortgage Loan, Seller shall be obligated to pay to Buyer (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 Buyer. 
  

 -21- 

	 	6.	Margin Maintenance 

  
 a. If at any time the Market Value of any Purchased Mortgage Loan subject to a Transaction is less than Buyer’s Margin Amount for such Transaction (a
“Margin Deficit”), then Buyer may by notice to any Seller require Seller to transfer to Buyer cash in an amount at least equal to the Margin Deficit (such requirement, a “Margin Call”) . 
  
 b. Notice delivered pursuant to Section 6(a) may be given by any written
means. Any notice given before 10:00 a.m. (Eastern time) on a Business Day shall be met, and the related Margin Call satisfied, no later than 5:00 p.m. (Eastern time) on such Business Day; notice given after 10:00 a.m. (Eastern time) on a Business
Day shall be met, and the related Margin Call satisfied, no later than 5:00 p.m. (Eastern 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 Buyer, on any one or more occasions, to exercise its rights hereunder, shall not change or alter the terms and conditions to which this Agreement is subject or limit the right of Buyer to do so at a later date.
Seller and Buyer each agree that a failure or delay by Buyer to exercise its rights hereunder shall not limit or waive Buyer’s rights under this Agreement or otherwise existing by law or in any way create additional rights for Seller.

  
 c. In the event that a Margin Deficit exists with respect to
any Purchased Mortgage Loan, Buyer may retain any funds received by it to which the Seller would otherwise be
entitled hereunder, which funds (i) shall be held by Buyer against the related Margin Deficit and (ii) may be applied by Buyer against any Purchased Mortgage Loan for which the related Margin Deficit remains otherwise unsatisfied. Notwithstanding
the foregoing, the Buyer retains the right, in its sole discretion, to make a Margin Call in accordance with the provisions of this Section 6. 
  

	 	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 Buyer.
Notwithstanding the foregoing, and provided no Event of Default has occurred and is continuing, Buyer 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. Seller shall deposit all income received in its capacity as Servicer of any Purchased Mortgage Loans to the Collection Account in accordance with Section 12(c) hereof. 
  
 b. Provided no Event of Default has occurred and is continuing, on each Price Differential Payment Date, Seller shall remit
to Buyer an amount equal to the Price Differential out of the interest portion of the Income paid in respect to the Purchased Mortgage Loans for the preceding month in accordance with Section 5 of this Agreement. Upon termination of any Transaction,
to the extent that there is any excess Income after repayment of all amounts to be transferred to Buyer by Seller, Buyer, in its sole option, may apply the excess income to reduce the Repurchase Price due upon termination of any other outstanding
Transactions. 
  
 c. In the event that an Event of Default has
occurred and is continuing, notwithstanding any provision set forth herein, Seller shall remit to Buyer all Income received 

  

 -22- 

 
with respect to each Purchased Mortgage Loan on the related Price Differential Payment Date or on such other date or dates as Buyer notifies Seller in
writing. 
  
 d. Notwithstanding any provision to the contrary in
this Section 7, within two (2) Business Days of receipt by Seller of any prepayment of principal in full, with respect to a Purchased Mortgage Loan, Seller shall remit such amount to Buyer and Buyer shall immediately apply any such amount received
by Buyer to reduce the amount of the Repurchase Price due upon termination of the related Transaction. 
  
 e. Notwithstanding anything to the contrary set forth herein, upon notice by Buyer to Seller, Seller shall remit to Buyer all collections received by
Servicer or Seller on the Purchased Mortgage Loans in accordance with Buyer’s directions no later than the day on which aggregate collections of principal and interest (excluding principal prepayments) on the Purchased Mortgaged Loans reaches
an amount to be indicated by Buyer in its sole discretion. 
  

	 	8.	Security Interest 

  
 Although the parties intend that all Transactions hereunder be sales and purchases and not loans, in the event any such Transactions are deemed to be
loans, Seller hereby pledges to Buyer as security for the performance by Seller of its Obligations and hereby grants, assigns and pledges to Buyer 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 Seller’s right thereunder relate to the Purchased Mortgage Loans), any related Take-out Commitments, 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 and FHA
Mortgage Insurance Contracts and VA Loan Guaranty Agreements (if any), Income, the Collection Account, Interest Rate Protection Agreements, accounts (including any interest of Seller 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”). Seller agrees to execute, deliver and/or file such documents and
perform such acts as may be reasonably necessary to fully perfect Buyer’s security interest created hereby. Furthermore, the Seller hereby authorizes the Buyer to file financing statements relating to the Repurchase Assets, as the Buyer, at its
option, may deem appropriate. The Seller 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 by Seller hereunder shall be made in Dollars, in immediately available
funds, without deduction, set-off or counterclaim, to Buyer at the following account maintained by Buyer: Account No. 

  

 -23- 

 
3053-5137, for the account of CSFB Buyer/Homebanc Seller-Inbound Account, Citibank, ABA No. 021 000 089 or such other account as Buyer shall specify to
Seller in writing. Seller 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 Buyer in suitable form for
transfer or shall be accompanied by duly executed instruments of transfer or assignment in blank and such other documentation as Buyer may reasonably request. All Purchased Mortgage Loans shall be evidenced by a Trust Receipt and Certification. Any
Repurchase Price received by Buyer after 3:00 p.m. (Eastern time) shall be deemed received on the next succeeding Business Day. 
  

	 	10.	Conditions Precedent 

  
 a. Initial Transaction. As conditions precedent to the initial Transaction, Buyer shall have received on or before the day of such initial
Transaction the following, in form and substance satisfactory to Buyer and duly executed by Seller and each other party thereto: 
  
 (1) Program Agreements. The Program Agreements (including without limitation a Custodial Agreement in a form acceptable to Buyer)
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 Buyer, desirable to perfect and protect
Buyer’s 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 certificate of the
corporate secretary of Seller substantially in the form of Exhibit G hereto, attaching certified copies of 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 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 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. An opinion of Seller’s
internal counsel, in form and substance substantially as set forth in Exhibit E attached hereto. 
  

 -24- 

 (7) Underwriting Guidelines. A true and correct copy of the Underwriting
Guidelines certified by an officer of the Seller. 
  
 (8) Fees. Payment of any fees due to Buyer hereunder. 
  
 (9) Insurance. Evidence that Seller has added Buyer as a loss payee under the Seller’s E&O Insurance. 
  
 b. All Transactions. The obligation of Buyer 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 35 hereof, Buyer shall have completed, to its satisfaction, its due diligence review of the related Mortgage Loans and Seller. 
  
 (2) Required Documents. 
  
 (a) With respect to each Purchased Mortgage Loan, the Mortgage File has been delivered to the Custodian (i)
with respect to any purchase of 25 or fewer Mortgage Loans on a single Purchase Date, on or prior to 3:00 p.m. (Eastern time) on the Purchase Date, and (ii) with respect to any purchase of 26 or more Mortgage Loans on a single Purchase Date, at
least 24 hours prior to the Purchase Date; 
  
 (b) [Reserved]. 
  
 (3) Transaction
Documents. Buyer or its 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 Buyer 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 Mortgage Loan Schedule and Exception Report, and the Trust Receipt. 
  
 (c) Such certificates, opinions of counsel or other documents as Buyer may reasonably request. 
  
 (4) No Default. No Default or Event of Default shall
have occurred and be continuing; 
  
 (5)
Requirements of Law. Buyer shall not have determined that the introduction of or a change in any Requirement of Law or in the interpretation or administration of any Requirement of Law applicable to Buyer has made it unlawful, and no
Governmental Authority shall have asserted that it is unlawful, for Buyer to enter into Transactions with a Pricing Rate based on LIBOR. 
  

 -25- 

 (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 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
Seller is 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 Change. None of the following
shall have occurred and/or be continuing: 
  
 (a)
Credit Suisse First Boston, New York Branch’s corporate bond rating as calculated by S&P or Moody’s has been lowered or downgraded to a rating below investment grade by S&P or Moody’s; 
  
 (b) an event or events shall have occurred in the good faith
determination of Buyer resulting in the effective absence of a “repo market” or comparable “lending market” for financing debt obligations secured by mortgage loans or securities or an event or events shall have occurred
resulting in Buyer not being able to finance Purchased Mortgage Loans through the “repo market” or “lending market” with traditional counterparties at rates which would have been reasonable prior to the occurrence of such event
or events; or 
  
 (c) an event or events shall
have occurred resulting in the effective absence of a “securities market” for securities backed by mortgage loans or an event or events shall have occurred resulting in Buyer not being able to sell securities backed by mortgage loans at
prices which would have been reasonable prior to such event or events; or 
  
 (d) there shall have occurred a material adverse change in the financial condition of Buyer which affects (or can reasonably be expected to affect) materially and adversely the ability of Buyer to fund its obligations
under this Agreement. 
  

	 	11.	Program; Costs 

  
 a. Seller shall reimburse Buyer for any of Buyer’s reasonable out-of-pocket costs, including due diligence review costs and reasonable
attorney’s fees, incurred by Buyer in determining the acceptability to Buyer of any Mortgage Loans. Seller shall also pay, or reimburse Buyer if Buyer shall pay, any termination fee, which may be due any servicer. Seller shall pay the fees and
expenses of Buyer’s counsel in connection with the Program Agreements. Legal fees for any subsequent amendments to this Agreement or related documents shall be 

  

 -26- 

 
borne by Seller. Seller shall pay ongoing custodial and bank fees and expenses as set forth on Exhibit K hereto, and any other ongoing fees and
expenses under any other Program Document. 
  
 b. If Buyer
determines that, due to the introduction of, any change in, or the compliance by Buyer with (i) any eurocurrency reserve requirement or (ii) the interpretation of any law, regulation or any guideline or request from any central bank or other
Governmental Authority (whether or not having the force of law), there shall be an actual increase in the cost to Buyer in engaging in the present or any future Transactions, then Seller agrees to pay to Buyer, from time to time, upon demand by
Buyer (with a copy to Custodian) the actual cost of additional amounts as specified by Buyer to compensate Buyer for such increased costs. 
  
 c. With respect to any Transaction, Buyer may conclusively rely upon, and shall incur no liability to Seller in acting upon, any request or other
communication that Buyer reasonably believes to have been given or made by a person authorized to enter into a Transaction on Seller’s behalf, whether or not such person is listed on the certificate delivered pursuant to Section 10(a)(5)
hereof. In each such case, Seller hereby waives the right to dispute Buyer’s record of the terms of the Purchase Confirmation, request or other communication. 
  
 d. Notwithstanding the assignment of the Program Agreements with respect to each Purchased Mortgage Loan to Buyer, Seller
agrees and covenants with Buyer to enforce diligently Seller’s rights and remedies set forth in the Program Agreements. 
  
 e. Any payments made by Seller to Buyer shall be free and clear of, and without deduction or withholding for, any taxes; provided, however, that if such
payer shall be required by law to deduct or withhold any taxes from any sums payable to Buyer, 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 Buyer 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 Buyer all additional amounts as specified by Buyer to preserve the after-tax yield Buyer would have
received if such tax had not been imposed. 
  

	 	12.	Servicing 

  
 a. Seller, on Buyer’s behalf, shall contract with Servicer to, Seller shall, service the Mortgage Loans consistent with the degree of skill
and care that 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 Buyer in any Mortgage Loans or any payment thereunder. Buyer may terminate the
servicing of any Mortgage Loan with the then-existing servicer in accordance with Section 12(e) hereof. 
  
 b. Seller 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. 
  

 -27- 

 c. Seller shall cause the Servicer to deposit all collections received by Servicer on the Purchased
Mortgage Loans in the Collection Account no later than the 5th Business Day following receipt; provided, however,
that any amounts required to be remitted to Buyer shall be deposited in the Collection Account on or prior to the day on which such remittance is to occur. 
  
 d. Upon Buyer’s request, Seller shall provide promptly to Buyer (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 Buyer may reasonably request, including, without limitation, recognition by the Servicer of Buyer’s interest in such Purchased Mortgage Loans and the Servicer’s agreement
that upon receipt of notice of an Event of Default from Buyer, it will follow the instructions of Buyer 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, Buyer 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. Seller and the
Servicer shall cooperate in transferring the servicing of the Purchased Mortgage Loans to a successor servicer appointed by Buyer in its sole discretion. 
  
 f. If Seller should discover that, for any reason whatsoever, Seller or any entity responsible to Seller for managing or servicing any such Purchased
Mortgage Loan has failed to perform fully Seller’s obligations under the Program Agreements or any of the obligations of such entities with respect to the Purchased Mortgage Loans, Seller shall promptly notify Buyer. 
  

	 	13.	Representations and Warranties 

  
 a. Seller represents and warrants to Buyer as of the date hereof and as of each Purchase Date for any Transaction that: 
  
 (1) Seller Existence. Seller has been duly organized
and is validly existing as a corporation in good standing under the laws of the State of Delaware. 
  
 (2) Licenses. 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 and is not in default of such state’s applicable laws, rules and regulations.
Seller 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. Seller is an FHA Approved Mortgagee and VA
Approved Lender. 
  
 (3) Power. Seller has
all requisite corporate or other power, and has all governmental licenses, authorizations, consents and approvals necessary to own its assets 

  

 -28- 

 
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. 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 Seller, all requisite or other corporate action having been taken, and each is valid, binding and enforceable against 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. The Seller has heretofore furnished to Buyer a copy of (a) its balance sheet for the fiscal year of the Seller ended December 31, 2002 and the related consolidated statements of income and retained earnings and of cash
flows for the Seller for such fiscal year, setting forth in each case in comparative form the figures for the previous year, with the opinion thereon of Ernst & Young and (b) its balance sheet for the quarterly fiscal periods of the Seller ended
March 31, 2003 and June 30, 2003 and the related consolidated statements of income and retained earnings and of cash flows for the Seller 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 financial condition of the Seller and the results of its operations as at such dates and for such fiscal periods, all in accordance with
GAAP applied on a consistent basis. Since December 31, 2002, there has been no material adverse change in the business, operations or financial condition of the Seller from that set forth in said financial statements nor is Seller aware of any state
of facts which (with notice or the lapse of time) would or could result in any such material adverse change. The Seller has, on the date of the statements delivered pursuant to this Section (the “Statement Date”) no liabilities,
direct or indirect, fixed or contingent, matured or unmatured, known or unknown, 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 Seller except as heretofore disclosed to Buyer in writing. 
  
 (6) Event of Default. There exists no Event of
Default under Section 15(b) hereof other than an Event of Default that has been waived by the Buyer in writing, which default gives rise to a right to accelerate indebtedness as referenced in Section 15(b) hereof, under any mortgage, borrowing
agreement or other instrument or agreement pertaining to indebtedness for borrowed money or to the repurchase of mortgage loans or securities. 
  
 (7) Solvency. 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. Seller does 

  

 -29- 

 
not intend to incur and does not 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. The amount of consideration being
received by Seller upon the sale of the Purchased Mortgage Loans to Buyer constitutes reasonably equivalent value and fair consideration for such Purchased Mortgage Loans. Seller is not transferring any Purchased Mortgage Loans with any intent to
hinder, delay or defraud any of its creditors. 
  
 (8) No Conflicts. The execution, delivery and performance by Seller 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 Seller or any law, rule, regulation, order, judgment, writ, injunction or decree applicable to Seller of any court, regulatory body, administrative agency or governmental body having jurisdiction over
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 Seller is a party. 
  
 (9) True and Complete Disclosure. All information, reports, exhibits, schedules, financial statements
or certificates of Seller or any Affiliate thereof or any of their officers furnished or to be furnished to Buyer in connection with the initial or any ongoing due diligence of Seller or any Affiliate or officer thereof, negotiation, preparation, or
delivery of the Program Agreements are 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 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 Seller of this Agreement, any Transaction Request, Purchase Confirmation and the Program Agreements. 
  
 (11) Litigation. There is no action, proceeding or investigation pending with respect to which Seller has received service of
process or, to the best of Seller’s knowledge threatened against it before any court, administrative agency or other tribunal (A) asserting the invalidity of this Agreement, any Transaction, Transaction Request, Purchase Confirmation or any
Program Agreement, (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, any Transaction Request, Purchase Confirmation or any Program Agreement, (C) makes a claim individually in an amount greater than
$1,000,000 or in an aggregate amount greater than $5,000,000, (D) which requires filing with the Securities and Exchange Commission in accordance with the 1934 Act or any rules thereunder or (E) which might materially and adversely affect the
validity of the Mortgage Loans or the performance by it of its obligations under, or the validity or enforceability of, this Agreement, any Transaction Request, Purchase Confirmation or any Program Agreement. 
  

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 (12) Material Adverse Change. There has been no material adverse change in the
business, operations, financial condition, properties or prospects of Seller or its Affiliates since the date set forth in the most recent financial statements supplied to Buyer. 
  
 (13) Ownership. Upon payment of the Purchase Price and the filing of the financing statement and
delivery of the Mortgage Files to the Custodian and the Custodian’s receipt of the related Request for Certification, Buyer 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 Buyer are the true and correct Underwriting Guidelines of the Seller. 
  
 (15) Taxes. 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 Seller and its Subsidiaries in respect of taxes and other governmental charges are, in the opinion of Seller,
adequate. 
  
 (16) Investment Company.
Neither 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 of
Organization. On the Effective Date, Seller’s chief executive office, is, and has been, located at 5555 Glenridge Connector NE, Suite 800, Atlanta, Georgia 30342. On the Effective Date, Seller’s jurisdiction of organization is the
State of Delaware. Seller shall provide Buyer with thirty days advance notice of any change in Seller’s principal office or place of business or jurisdiction. Seller has no trade name. During the preceding five years, Seller has not been known
by or done business under any other name, corporate or fictitious, and has not filed or had filed against it any bankruptcy receivership or similar petitions nor has it made any assignments for the benefit of creditors. Seller was incorporated under
the laws of the State of Delaware in March 2000. Prior thereto, it had structurally operated under the fictitious name of, and had been owned by, First Horizon Home Loan Corporation (f/k/a FT Mortgage Companies), d/b/a HomeBanc Mortgage Corporation.

  
 (18) Location of Books and Records.
The location where Seller keeps its books and records, including all computer tapes and records relating to the Purchased Mortgage Loans and the related Repurchase Assets is its chief executive office or its operations facility located at 5775-B
Glenridge Drive, Suite 500, Atlanta, Georgia 30328. 
  
 (19) Adjusted Tangible Net Worth. On the Effective Date, Seller’s Adjusted Tangible Net Worth is not less than $25,000,000. 
  

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 (20) ERISA. Each Plan to which Seller or its Subsidiaries make direct
contributions, and, to the knowledge of 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. Seller has not selected the Purchased Mortgage Loans in a manner so as to adversely affect Buyer’s interests. 
  
 (22) Agreements. Neither Seller nor any Subsidiary of 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. Neither Seller nor any Subsidiary of 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 on the business, operations, properties,
or financial condition of Seller as a whole. No holder of any indebtedness of Seller or of any of its Subsidiaries has given notice of any asserted default thereunder. 
  
 (23) Other Indebtedness. All Indebtedness (other than Indebtedness evidenced by this Agreement) of
Seller existing on the date hereof is listed on Exhibit I hereto (the “Existing Indebtedness”). 
  
 (24) Agency Approvals. With respect to each Agency Security and to the extent necessary, Seller is an FHA Approved Mortgagee, a VA
Approved Lender and a GNMA Approved Lender. Seller 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, Seller is in good standing, with no event having occurred or Seller having any reason whatsoever to believe or suspect will occur prior to the issuance of the Agency Security or
the consummation of the Take-out Commitment, as the case may be, including, without limitation, a change in insurance coverage which would either make Seller 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 Seller 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, Seller shall so notify Buyer immediately in writing. Seller 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. 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 

  

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necessary. Seller is not relying upon any advice from Buyer as to any aspect of the Transactions, including without limitation, the legal, accounting or tax
treatment of such Transactions. 
  
 (26) Plan
Assets. Seller is not 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 the Seller’s hands. 
  
 b. With respect
to every Purchased Mortgage Loan, Seller represents and warrants to Buyer 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 Buyer and shall continue for so long as the Purchased Mortgage Loans are subject to this Agreement. Upon discovery by Seller, Servicer or Buyer of any 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. Buyer has the right to require, in its unreviewable but good faith discretion, Seller to
repurchase within 1 Business Day after receipt of notice from Buyer any Purchased Mortgage Loan (i) 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 Buyer or (ii) which is determined by Buyer, in its good faith discretion, to be unacceptable for inclusion in a securitization. 
  

	 	14.	Covenants 

  
 Seller covenants with Buyer that, during the term of this facility: 
  
 a. Adjusted Tangible Net Worth. Seller shall maintain an Adjusted Tangible Net Worth of at least $25 million,
increasing by $1 million per fiscal quarter, beginning with the first full fiscal quarter end following the Effective Date. 
  
 b. Indebtedness to Adjusted Tangible Net Worth Ratio. For the period beginning on the Effective Date through and including September 30, 2003,
Seller’s ratio of Indebtedness to Adjusted Tangible Net Worth shall not exceed 14:1. For the period beginning on October 31, 2003 through and including December 31, 2003, Seller’s ratio of Indebtedness to Adjusted Tangible Net Worth shall
not exceed 13.5:1. For the period beginning on January 1, 2004 through and including March 31, 2004, Seller’s ratio of Indebtedness to Adjusted Tangible Net Worth shall not exceed 13:1. For the period beginning on April 1, 2004 through and
including the Termination Date, Seller’s ratio of Indebtedness to Adjusted Tangible Net Worth shall not exceed 12.5:1. For the purposes of this Section 14(b) only, the term “Indebtedness” as used in this Section 14(b) shall exclude
accrued but unfunded obligations to fund Mortgage Loan originations or acquisitions, which obligations the Seller has not borrowed from any source. 
  
 c. Liquidity. Seller shall maintain minimum Liquidity at least $10 million at all times. 
  

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 d. Litigation. Seller will promptly, and in any event within ten (10) days after service of
process on any of the following, give to Buyer notice of all litigation, actions, suits, arbitrations, investigations (including, without limitation, any of the foregoing which are threatened or pending) or other legal or arbitrable proceedings
affecting Seller or any of their Subsidiaries or affecting any of the Property of any of them before any Governmental Authority that (i) questions or challenges the validity or enforceability of any of the Program Agreements or any action to be
taken in connection with the transactions contemplated hereby, (ii) makes a claim individually in an amount greater than $1,000,000 or in an aggregate amount greater than $5,000,000, or (iii) which, individually or in the aggregate, if adversely
determined, could be reasonably likely to have a Material Adverse Effect. Seller will promptly provide notice of any judgment, which with the passage of time, could cause an Event of Default hereunder. 
  
 e. Prohibition of Fundamental Changes. Seller shall not 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 Seller may merge or consolidate
with (a) any wholly owned subsidiary of Seller, or (b) any other Person if Seller is the surviving corporation; and provided further, that if after giving effect thereto, no Default would exist hereunder. 
  
 f. Maintenance of Profitability. Seller shall not permit, for any Test
Period, Net Income for such Test Period, before income taxes for such Test Period and distributions made during such Test Period, to be less than $1.00. 
  
 g. Servicer; Asset Tape. Seller shall cause Servicer to provide to Buyer, electronically, in a format mutually acceptable to Buyer and Seller, an
Asset Tape by no later than the Reporting Date or otherwise on reasonable request of Buyer. Seller shall not cause the Mortgage Loans to be serviced by any servicer other than a servicer expressly approved in writing by Buyer, which approval shall
be deemed granted by Buyer with respect to Seller with the execution of this Agreement. 
  
 h. Insurance. Seller or their Affiliates, will continue to maintain, for 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 Fanme Mac and Freddie Mac. 
  
 i. No Adverse Claims. Seller warrants and will defend, and shall cause any Servicer to defend, the right, title and
interest of Buyer in and to all Purchased Mortgage Loans and the related Repurchase Assets against all adverse claims and demands. 
  
 j. Assignment. Except as permitted herein, neither Seller nor any Servicer shall sell, assign, transfer or otherwise dispose of, or grant any
option with respect to, or pledge, hypothecate or grant a security interest in or lien on or otherwise encumber (except pursuant to the Program 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. 
  

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 k. Security Interest. Seller shall do all things necessary to preserve the Purchased Mortgage
Loans and the related Repurchase Assets so that they remain subject to a first priority perfected security interest hereunder. Without limiting the foregoing, Seller will comply with all rules, regulations and other laws of any Governmental
Authority and cause the Purchased Mortgage Loans or the related Repurchase Assets to comply with all applicable rules, regulations and other laws. Seller will not allow any default for which Seller is responsible to occur under any Purchased
Mortgage Loans or the related Repurchase Assets or any Program Agreement and Seller shall fully perform or cause to be performed when due all of its obligations under any Purchased Mortgage Loans or the related Repurchase Assets and any Program
Agreement. 
  
 1. Records. 
  
 (1) Seller 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 Buyer otherwise approves. Seller 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 Seller will obtain or cause to be obtained a receipt from a financially responsible person for any such paper, record or file. Seller or the Servicer 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 Buyer has an interest in or lien on any
Purchased Mortgage Loan, Seller will hold or cause to be held all related Records in trust for Buyer. Seller shall notify, or cause to be notified, every other party holding any such Records of the interests and liens in favor of Buyer granted
hereby. 
  
 (3) Upon reasonable advance notice
from Custodian or Buyer, Seller shall (x) make any and all such Records available to Custodian or Buyer to examine any such Records, either by its own officers or employees, or by agents or contractors, or both, and make copies of all or any portion
thereof, and (y) permit Buyer or its authorized agents to discuss the affairs, finances and accounts of Seller with its chief operating officer and chief financial officer and to discuss the affairs, finances and accounts of Seller with its
independent certified public accountants. 
  
 m. Books.
Seller shall keep or cause to be kept in reasonable detail books and records of account of its assets and business and shall clearly reflect therein the transfer of Purchased Mortgage Loans to Buyer. 
  
 n. Approvals. Seller shall maintain all licenses, permits or other
approvals necessary for Seller to conduct its business and to perform its obligations under the Program Agreements, and Seller shall conduct its business strictly in accordance with applicable law. 
  

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 o. Material Change in Business. Seller shall not make any material change in the nature of its
business as carried on at the date hereof. There shall be no material change in the senior management of Seller. 
  
 p. Underwriting Guidelines. Without the prior written consent of Buyer, which will not be unreasonably withheld, Seller shall not amend or
otherwise modify the Underwriting Guidelines. Without limiting the foregoing, in the event that Seller makes any amendment or modification to the Underwriting Guidelines, Seller shall promptly deliver to Buyer a complete copy of the amended or
modified Underwriting Guidelines. 
  
 q. Distributions.
Seller shall not declare or pay any dividend or make any distribution (whether in cash, property or other form) directly or indirectly to Seller’s shareholders when any Default or Event of Default has occurred and is continuing or, after the
payment of which dividend or distribution, would exist. 
  
 r.
Applicable Law. Seller shall comply with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority. 
  
 s. Existence. Seller shall preserve and maintain its legal existence and all of its material rights, privileges, licenses and franchises.

  
 t. Chief Executive Office; Jurisdiction of
Organization. Seller shall not 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
Buyer 30 days’ prior written notice of such change. Seller hereby notifies Buyer that during the month of December 2003, Seller will move its chief executive office from the address referred to in Section 13(a)(17) to 2002 Summit Boulevard,
Atlanta, Georgia, 30319. 
  
 u. Taxes. Seller shall pay and
discharge all taxes, assessments and governmental charges or levies imposed on it or on its income or profits or on any of its property prior to the date on which penalties attach thereto, except for any such tax, assessment, charge or levy the
payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained. 
  
 v. Transactions with Affiliates. Seller 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 unless such transaction is (a) otherwise permitted under the Program Agreements, (b) in the ordinary course of Seller’s business and (c) upon fair and reasonable terms no less
favorable to 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. 
  
 w. Guarantees. Seller shall not create, incur, assume or suffer to
exist any Guarantees, except (i) to the extent reflected in Seller’s financial statements or notes thereto and (ii) to the extent the aggregate Guarantees of Seller do not exceed $2,000,000. 
  
 x. Indebtedness. Seller shall not incur any additional material
Indebtedness (other than (i) the Existing Indebtedness in amounts not to exceed the amounts specified on 

  

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Exhibit I hereto and (ii) usual and customary accounts payable for a mortgage company) without the prior written consent of Buyer. 
  
 y. Hedging. Seller has entered into Interest Rate Protection
Agreements with respect to the Alt A Mortgage Loans, Jumbo Mortgage Loans and Conforming Mortgage Loans, having terms with respect to protection against fluctuations in interest rates acceptable to Buyer in its good faith discretion. 
  
 z. True and Correct Information. All information, reports, exhibits,
schedules, financial statements or certificates of Seller, any Affiliate thereof or any of their officers furnished to Buyer hereunder and during Buyer’s diligence of Seller 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 Seller to Buyer 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. Agency Approvals; Servicing. Seller 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. Seller shalls service all Purchased Mortgage Loans which are Committed Mortgage Loans in accordance with the applicable agency guide. Should Seller, 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 V A be required, such Seller shall so notify Buyer immediately in writing. Notwithstanding the preceding sentence, Seller
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. Seller 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. 
  
 bb. Take-out Payments. With respect to each Committed Mortgage Loan,
Seller shall arrange that all payments under the related Take-out Commitment shall be paid directly to Buyer at the
account set forth in Section 9 hereof, or to an account approved by Buyer in writing prior to such payment. With respect to any Agency Take-out Commitment, if applicable, (1) with respect to the wire transfer instructions as set forth in Freddie Mac
Form 987 (Wire Transfer Authorization for a Cash Warehouse Delivery) such wire transfer instructions are identical to Buyer’s wire instructions or Buyer has approved such wire transfer instructions in writing in its sole discretion, or (2) the
Payee Number set forth on Fannie Mae Form 1068 (Fixed-Rate, Graduated-Payment, or Growing-Equity Mortgage Loan Schedule) or Fannie Mae Form 1069 (Adjustable-Rate Mortgage Loan Schedule), as applicable, is identical to the Payee Number that has been
identified by Buyer in writing as Buyer’s Payee Number or Buyer has previously approved the related Payee Number in writing in its sole discretion; with respect to any Take-out Commitment with an Agency, the applicable agency documents list
Buyer as sole subscriber, unless otherwise agreed to in writing by Buyer, in Buyer’s sole discretion. 
  
 cc. No Pledge. Seller shall not pledge, transfer or convey any security interest in the Collection Account to any Person without the express
written consent of Buyer. 
  

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 dd. Plan Assets. Seller shall not 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 the Seller shall not use “plan assets” within the meaning of 29 CFR §2510.3-101 to engage in this Repurchase Agreement or any Transaction hereunder. 
  

	 	15.	Events of Default 

  
 Each of the following shall constitute an “Event of Default” hereunder: 
  
 a. Payment Failure. Failure of Seller 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, any other warehouse and security agreement or any other document evidencing or
securing Indebtedness of Seller to Buyer or to any Affiliate of Buyer, or (ii) cure any Margin Deficit when due pursuant to Section 6 hereof. 
  
 b. Cross Default. Seller or any of Seller’s Affiliates shall be in default under (i) any Indebtedness which Indebtedness is in excess of
$5,000,000 in the aggregate of Seller or of such Affiliate which default (1) involves the failure to pay a matured obligation, or (2) permits the acceleration of the maturity of obligations by any other party to or beneficiary with respect to such
Indebtedness, or (ii) any other contract to which Seller or such Affiliate is a party which contract requires payment of amounts in excess of $5,000,000 in the aggregate which default (1) involves the failure to pay a matured obligation, or (2)
permits the acceleration of the maturity of obligations by any other party to or beneficiary of such contract. 
  
 c. Assignment. Assignment or attempted assignment by Seller of this Agreement or any rights hereunder without first obtaining the specific written
consent of Buyer, or the granting by Seller of any security interest, lien or other encumbrances on any Purchased Mortgage Loans to any person other than Buyer. 
  

d. Insolvency. An Act of Insolvency shall have occurred with respect to Seller, or any Affiliate. 
  
 e. Material Adverse Change. Any material adverse change in the
Property, business, financial condition or operations of Seller or any of its Affiliates shall occur, in each case as determined by Buyer in its sole good faith discretion, or any other condition shall exist which, in Buyer’s sole good faith
discretion, constitutes a material impairment of Seller’s ability to perform its obligations under this Agreement or any other Program Agreement. 
  
 f. Breach of Financial Representation or Covenant or Obligation. A breach by Seller of any of the representations, warranties or covenants or
obligations set forth in Sections 13(a)(l), 13(a)(7), 13(a)(12), 13(a)(19), 13(a)(23), 14a, 14b, 14d, 14e, 14r, 14v, 14w or 14bb of this Agreement. 
  
 g. Breach of Non-Financial Representation or Covenant. A breach by Seller 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 

  

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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, (ii) any such representations and warranties have been determined by Buyer in its sole but
good faith discretion to be materially false or misleading on a regular basis, or (iii) Buyer, in its sole discretion, determines that such breach of a material representation, warranty or covenant materially and adversely affects (A) the condition
(financial or otherwise) of such party, its Subsidiaries or Affiliates; or (B) Buyer’s determination to enter into this Agreement or Transactions with such party, then such breach shall constitute an immediate Event of Default and Seller shall
have no cure right hereunder). 
  
 h. Change of Control.
The occurrence of a Change in Control. 
  
 i. Failure to
Transfer. Seller fails to transfer the Purchased Mortgage Loans to Buyer on the applicable Purchase Date (provided Buyer has tendered the related Purchase Price). 
  
 j. Judgment. A final judgment or judgments for the payment of money in excess of $5,000,000 in the aggregate shall be
rendered against the 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 Seller or any Affiliate thereof, or shall have taken any action to displace the management of Seller or any
Affiliate thereof or to curtail its authority in the conduct of the business of Seller or any Affiliate thereof, or takes any action in the nature of enforcement to remove, limit or restrict the approval of Seller 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 Seller shall admit its inability to, or its intention not to, perform any of
Seller’s Obligations hereunder. 
  
 m. Security
Interest. This Agreement shall for any reason cease to create 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. Seller’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 Seller as a “going concern” or a reference of similar import. 
  
 An Event of Default shall be deemed to be continuing unless expressly waived
by Buyer in writing. 
  

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	 	16.	Remedies Upon Default 

  
 In the event that an Event of Default shall have occurred: 
  
 a. Buyer may, at its option (which option shall be deemed to have been exercised immediately upon the occurrence of an Act of Insolvency of 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). Buyer shall (except upon the occurrence of an Act
of Insolvency) give notice to Seller of the exercise of such option as promptly as practicable. 
  
 b. If Buyer exercises or is deemed to have exercised the option referred to in subparagraph (a) of this Section, (i) Seller’s 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 Buyer and applied, in Buyer’s sole discretion, to the aggregate unpaid Repurchase Prices for all outstanding Transactions and any other amounts owing by Seller hereunder, and (iii)
Seller shall immediately deliver to Buyer the Mortgage Files relating to any Purchased Mortgage Loans subject to such Transactions then in Seller’s possession or control. 
  
 c. Buyer also shall have the right to obtain physical possession, and to commence an action to obtain physical possession,
of all Records and files of Seller 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 Seller or any third party acting for Seller. To obtain physical possession of any Purchased Mortgage Loans held by Custodian, Buyer shall present to Custodian a Trust Receipt and
Certification. Buyer shall be entitled to specific performance of all agreements of Seller contained in this Agreement. 
  
 d. Buyer shall have the right to direct all servicers then servicing any Purchased Mortgage Loans to remit all collections thereon to Buyer, and if any
such payments are received by Seller, Seller shall not commingle the amounts received with other funds of Seller and shall promptly pay them over to Buyer. Buyer 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, Buyer 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 Buyer’s
option, on either a servicing-released or a servicing-retained basis. Buyer 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. Buyer shall also be entitled to sell any or all of such Mortgage Loans individually for the prevailing price. Buyer 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 Seller credit for such Purchased Mortgage Loans and the Repurchase Assets in an amount equal to the Market Value 

  

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of the Purchased Mortgage Loans against the aggregate unpaid Repurchase Price and any other amounts owing by the Seller hereunder. 
  
 e. Upon the happening of one or more Events of Default, Buyer 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 Buyer deems appropriate in its sole discretion. 
  
 f. Seller shall be liable to Buyer for (i) the amount of all reasonable legal
or other expenses (including, without limitation, all costs and expenses of Buyer 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 Buyer) 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, Seller shall be liable to Buyer for interest on any amounts owing by Seller
hereunder, from the date Seller becomes liable for such amounts hereunder until such amounts are (i) paid in full by Seller or (ii) satisfied in full by the exercise of Buyer’s rights hereunder. Interest on any sum payable by Seller under this
Section 16(g) shall be at a rate equal to the Post-Default Rate. 
  
 h. Buyer shall have, in addition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law. 
  
 i. Buyer may exercise one or more of the remedies available to Buyer 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 Seller. All rights and remedies arising under this Agreement as amended from time to time hereunder are cumulative and not exclusive of any other rights or
remedies which Buyer may have. 
  
 j. Buyer may enforce its rights
and remedies hereunder without prior judicial process or hearing, and Seller hereby expressly waives any defenses Seller might otherwise have to require Buyer to enforce its rights by judicial process. Seller also waives any defense (other than a
defense of payment or performance) 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. 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. Buyer shall have the right to perform reasonable due diligence with respect to Seller and the Mortgage Loans, which review shall be at the expense
of Seller. 
  

 -41- 

	 	17.	Reports 

  
 a. Notices. Seller shall furnish to Buyer (x) promptly, copies of any material and adverse notices (including, without limitation, notices of
defaults, breaches, potential defaults or potential breaches) and any material financial information that is not otherwise required to be provided by Seller hereunder which is given to Seller’s lenders, (y) immediately, notice of the occurrence
of any Event of Default hereunder or default or breach by Seller or Servicer of any obligation under any Program Agreement or any material contract or agreement of Seller or Servicer or the occurrence of any event or circumstance that such party
reasonably expects has resulted in, or will, with the passage of time, result in, a Material Adverse Effect or an Event of Default or such a default or breach by such party and (z) the following: 
  
 (1) as soon as available and in any event within forty-five
(45) calendar days after the end of each calendar month, the unaudited balance sheets of Seller as at the end of such period and the related unaudited statements of income and retained earnings and of cash flows for the Seller 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 Seller, which certificate shall state that said financial statements fairly present in all material respects the financial
condition and results of operations of Seller 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
Seller, the balance sheets of Seller as at the end of such fiscal year and the related statements of income and retained earnings and of cash flows for the Seller for such year, setting forth in each case in comparative form the figures for the
previous year, accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion and the scope of audit shall be acceptable to Buyer in its sole discretion, shall have no “going
concern” qualification and shall state that said financial statements fairly present the financial condition and results of operations of Seller as at the end of, and for, such fiscal year in accordance with GAAP; 
  
 (3) such other prepared statements that Buyer 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 Seller, within 5 Business Days of their filing with the SEC; provided, that, Seller or any Affiliate will provide Buyer and Credit
Suisse First Boston Corporation with a copy of the annual 10-K filed with the SEC by Seller or its 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,
(ii) material sanctions proposed, imposed or required, including without limitation notices of defaults, notices of termination of 

  

 -42- 

 
approved status, notices of imposition of supervisory agreements or interim servicing agreements, and notices of probation, suspension, or non-renewal, or
(iii) “report cards,” “grades” or other classifications of the quality of Seller’s operations; 
  
 (6) from time to time such other information regarding the financial condition, operations, or business of the Seller as Buyer may
reasonably request; 
  
 (7) as soon as reasonably
possible, and in any event within thirty (30) days after a Responsible Officer of the Seller has knowledge of the occurrence of any Event of Termination, stating the particulars of such Event of Termination in reasonable detail; 
  
 (8) As soon as reasonably possible, notice of any of the
following events: 
  
 (a) change in the insurance
coverage required of Seller, Servicer or any other Person pursuant to any Program Agreement, with a copy of evidence of same attached; 
  
 (b) any material dispute, litigation, investigation, proceeding or suspension between Seller or Servicer, on the one hand, and any
Governmental Authority or any Person; 
  
 (c) any
material change in accounting policies or financial reporting practices of Seller or Servicer; 
  
 (d) 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; 
  
 (e) any material issues raised upon examination of Seller or
Seller’s facilities by any Governmental Authority; 
  
 (f) any material change in the Indebtedness of the Seller, including without limitation, any default, renewal, non-renewal, termination, increase in available amount or decrease in available amount related thereto;

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

 -43- 

 b. Officer’s Certificates. Seller will furnish to Buyer, at the time the Seller furnishes
each set of financial statements pursuant to Section 17(a)(l) or (2) above, a certificate of a Responsible Officer of Seller in the form of Exhibit D hereto. 
  
 c. Mortgage Loan Reports. With respect to Purchased Mortgage Loans, Seller will furnish to Buyer monthly electronic
performance data, including, without limitation, delinquency reports (i.e., delinquency, foreclosure and net charge-off reports). 
  
 d. Asset Tape. Seller shall provide to Buyer, electronically, in a format mutually acceptable to Buyer and Seller, an Asset Tape by no later than
the Reporting Date. 
  
 e. Other. Seller shall deliver to
Buyer any other reports or information reasonably requested by Buyer or as otherwise required pursuant to this Agreement. 
  

	 	18.	Repurchase Transactions 

  
 Buyer may, in its sole election, engage in repurchase transactions with the Purchased Mortgage Loans or otherwise pledge, hypothecate, assign, transfer or
otherwise convey the Purchased Mortgage Loans with a counterparty of Buyer’s choice. Unless an Event of Default shall have occurred, no such transaction shall relieve Buyer of its obligations to transfer Purchased Mortgage Loans to Seller
pursuant to Section 4 hereof, or of Buyer’s obligation to credit or pay Income to, or apply Income to the obligations of, Seller pursuant to Section 7 hereof. In the event Buyer engages in a repurchase transaction with any of the Purchased
Mortgage Loans or otherwise pledges or hypothecates any of the Purchased Mortgage Loans, Buyer shall have the right to assign to Buyer’s counterparty any of the applicable representations or warranties herein and the remedies for breach
thereof, as they relate to the Purchased Mortgage Loans that are subject to such repurchase transaction. 
  

	 	19.	Single Agreement 

  
 Buyer and 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 Buyer and 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 only), statements,
demands or other 

  

 -44- 

 
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 Seller: 

 
 HomeBanc Mortgage Corporation 
 5555 Glenridge Connector NE, Suite 800 
 Atlanta, GA 30342 
 Attention: Debra F. Watkins 
 Phone Number: (404) 459-7411 
 Fax Number: (404) 705-2301 
  
 with a copy to: 
  
 HomeBanc Mortgage Corporation 
 5555 Glenridge Connector NE, Suite 800 
 Atlanta, GA 30342 
 Attention: General Counsel 
 Phone Number: (404) 459-7602 
 Fax Number: (404) 705-2309 
  
 If to Buyer: 
  
 For Transaction Requests and Purchase Confirmations: 
  
 Credit Suisse First Boston Mortgage Capital LLC 
 302 Carnegie Center, 2nd Floor 
 Princeton, NJ 08540 
 Attention: Kelly Phinney 
 Phone Number: 609-627-5053 
 Fax Number: 609-627-5080 
  
 For all other Notices: 
  
 Credit Suisse First Boston Mortgage Capital LLC 

302 Carnegie Center, 2nd Floor 
 Princeton, NJ 08540 
 Attention: Gary Timmerman 

	 	  	       Terry Farley 

  

 -45- 

 with a copy to: 
  
 Credit Suisse First Boston Mortgage Capital LLC 
 Eleven Madison Avenue 
 New York, NY 10010 
 Attention: Legal Department 
  

	 	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 Seller without the prior consent of the Buyer, which may be withheld in the Buyer’s sole discretion.
Buyer 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 Buyer shall maintain, for review by Seller upon written request, a register of assignees and a
copy of an executed assignment and acceptance by Buyer and assignee (“Assignment and Acceptance”), specifying the percentage or portion of such rights and obligations assigned. Upon such assignment, (a) such assignee shall be a
party hereto and to each Program 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 Buyer hereunder, and (b) Buyer shall, to the extent that
such rights and obligations have been so assigned by it to either (i) an Affiliate of Buyer which assumes the obligations of Buyer or (ii) to another Person approved by Seller (such approval not to be unreasonably withheld) which assumes the
obligations of Buyer, be released from its obligations hereunder and under the Program Agreements. Unless otherwise stated in the Assignment and Acceptance, Seller shall continue to take directions solely from Buyer unless otherwise notified by
Buyer in writing. Buyer may distribute to any prospective assignee any document or other information delivered to Buyer by Seller. So long as no Event of Default has occurred and is continuing, in no event shall any such assignment(s) impose upon
Seller greater obligations and liabilities than those contained herein. 
  

	 	23.	Set-off 

  
 In addition to any rights and remedies of Buyer provided by law, Buyer shall have the right, without prior notice to Seller, any such notice being
expressly waived by Seller to the extent permitted by applicable law, upon any amount becoming due and payable by Seller 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 Buyer or any branch or agency thereof to or for the credit or the account of Seller. Buyer agrees to provide simultaneous notification to Seller of any such set-off 

  

 -46- 

 
and application made by Buyer; provided, that the failure to give such notice shall not affect the validity of such set-off and application. 
  

	 	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. Seller
acknowledges that the obligations of Buyer hereunder or otherwise are not the subject of any guaranty by, or recourse to, any direct or indirect parent or other Affiliate of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED
BY, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. 
  
 b. SELLER HEREBY WAIVES TRIAL BY JURY. 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. 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. 
  

 -47- 

 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).

  

	 	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 

  
 Seller hereby authorizes Buyer to file such financing statement or statements relating to the Repurchase Assets without Seller’s signature thereon as
Buyer, at its option, may deem appropriate. Seller hereby appoints Buyer as Seller’s agent and attorney-in-fact to execute any such financing statement or statements in Seller’s name and to perform all other acts which Buyer deems
appropriate to perfect and continue 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 Seller as its agent and attorney-in-fact. This agency and power of attorney is coupled with an interest and is irrevocable without Buyer’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. Seller shall pay the filing costs for any financing statement or statements prepared
pursuant to this Section 28. 
  

 -48- 

	 	29.	Buyer May Act Through Affiliates 

  
 Buyer may, from time to time, designate one or more affiliates for the purpose of performing any action hereunder. 
  

	 	30.	Indemnification; Obligations 

  
 a. Seller agrees to hold Buyer and each of its 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. Seller also agrees to reimburse each Indemnified Party for all reasonable
expenses actually incurred 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. 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. Seller hereby acknowledges that its obligations
hereunder are recourse obligations of Seller and are not limited to recoveries each Indemnified Party may have with respect to the Purchased Mortgage Loans. 
  
 b. Without limitation to the provisions of Section 4, if any payment of the Repurchase Price of any Transaction is made by Seller other than on the then
scheduled Repurchase Date thereto as a result of an acceleration of the Repurchase Date pursuant to Section 16 or for any other reason, Seller shall, upon demand by Buyer, pay to Buyer an amount sufficient to compensate Buyer 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 Seller fails to pay when due any costs, expenses or other amounts payable by it under this Agreement, including, without limitation, fees and expenses of
counsel and indemnities, such amount may be paid on behalf of Seller by Buyer, in its sole good faith 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 Buyer and Agent and shall be held by
Seller in strict confidence and shall not be disclosed to any third party without the written consent of Buyer 

  

 -49- 

 
except for (i) disclosure to Seller’s 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, or (ii) disclosure required by law, rule, regulation or order of a court or other regulatory body. Buyer shall receive and keep the Confidential Information in
confidence and shall not distribute, disclose or disseminate any Confidential Information in any way to anyone, except as provided in this Agreement or as otherwise required by applicable law. Buyer shall not disclose any Confidential Information
except to those of its employees, agents or representatives (collectively, the “Authorized Parties”) who need to know such information for the purpose of evaluating and servicing the Mortgage Loans (it being understood that such
Authorized Parties shall be informed by Buyer of the confidential nature of such information and shall be directed by Buyer, and shall each agree, to treat such information confidentially in accordance with this Agreement). 
  
 Notwithstanding anything to the contrary contained herein or in any other
Program Agreement, all Persons may disclose to any and all Persons, without limitation of any kind, the federal income tax treatment of the Transactions, any fact relevant to understanding the federal tax treatment of the Transactions, and all
materials of any kind (including opinions or other tax analyses) relating to such federal income tax treatment; provided, that Seller may not disclose the name of or identifying information with respect to Buyer or Agent or any pricing terms
(including, without limitation, the Pricing Rate, Non-Utilization Fee, Purchase Price Percentage and Purchase Price) or other nonpublic business or financial information (including any sublimits and financial covenants) that is unrelated to the
purported or claimed federal income tax treatment of the Transaction and is not relevant to understanding the purported or claimed federal income tax treatment of the Transaction, without the prior consent of the Buyer. 
  

	 	33.	Recording of Communications 

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

	 	34.	[RESERVED] 

  

	 	35.	Periodic Due Diligence Review 

  
 Seller acknowledges that Buyer has the right to perform continuing due diligence reviews with respect to the Seller and the Mortgage Loans, for purposes
of verifying compliance with the representations, warranties and specifications made hereunder, or otherwise, and Seller agrees that upon reasonable (but no less than three (3) Business Days’) prior notice unless an Event of Default shall have
occurred, in which case no notice is required, to Seller, Buyer or its authorized representatives will be permitted during normal business hours to examine, inspect, and make copies and extracts of, the Mortgage Files and any and all documents,
records, agreements, instruments or information relating to such Mortgage Loans in the possession or under the control of Seller and/or the Custodian. Seller also shall make available to Buyer a 

  

 -50- 

 
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, Seller acknowledges that Buyer may purchase Mortgage Loans from Seller based solely upon the information provided by Seller to Buyer in the Mortgage Loan Schedule and the representations, warranties and covenants
contained herein, and that Buyer, at its option, has the right at any time to conduct a partial or complete due diligence review on some or all of the Mortgage Loans purchased in a Transaction, including, without limitation, ordering Broker’s
price opinions, new credit reports and new appraisals on the related Mortgaged Properties and otherwise regenerating the information used to originate such Mortgage Loan. Buyer may underwrite such Mortgage Loans itself or engage a mutually agreed
upon third party underwriter to perform such underwriting. Seller agrees to cooperate with Buyer and, any third party underwriter in connection with such underwriting, including, but not limited to, providing Buyer and any third party underwriter
with access to any and all documents, records, agreements, instruments or information relating to such Mortgage Loans in the possession, or under the control, of Seller. Seller further agrees that Seller shall pay all out-of-pocket costs and
expenses incurred by Buyer in connection with Buyer’s activities pursuant to this Section 35 (“Due Diligence Costs”) ; provided that such Due Diligence Costs shall not exceed $10,000 per calendar year unless a Default or Event
of Default shall have occurred, in which event Buyer shall have the right to perform due diligence, at the sole expense of Seller. 
  

	 	36.	Authorizations 

  
 Any of the persons whose signatures and titles appear on Schedule 2 are authorized, acting singly, to act for Seller or Buyer, as the case may be, under
this Agreement. 
  
 [Signature Page Follows] 
  

 -51- 

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

			
	 Credit Suisse First Boston Mortgage Capital LLC, as Buyer

		
	By:	 	 /s/

	 	 	

	 Title:
	 	 
	 	 	

	 Date:
	 	 August 8, 2003

	 	 	

  

			
	 HomeBanc Mortgage Corporation, as Seller

		
	By:	 	 /s/    JAMES KRAKAU

	 	 	

	 	 	 James Krakau, Senior Vice President

		
	 Date:
	 	 August 8, 2003

	 	 	

  

 SCHEDULE 1 
  

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO PURCHASED 
 MORTGAGE LOANS 
  
 (a)
Payments Current. All payments required to be made up to the Purchase Date for the Mortgage Loan under the terms of the Mortgage Note have been made and credited. No payment required under the Mortgage Loan is delinquent nor has any payment
under the Mortgage Loan been delinquent 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, or an escrow of funds has been
established in an amount sufficient to pay for every such item which remains unpaid and which has been assessed but is not yet due and payable. Neither Seller nor the Qualified Originator from which Seller 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, other than “buydown” funds, subject to the restrictions of clause (y) below, 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 Buyer, and which has been delivered to the Custodian and the terms of which are reflected in the Mortgage Loan Schedule and Exception Report. 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 and Exception Report. 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 and Exception
Report. 
  
 (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 no Mortgagor in respect of the Mortgage Loan was a
debtor in any state or Federal bankruptcy or insolvency proceeding at the time the Mortgage Loan was originated. Seller has 

  

 Schedule 1-1 

 
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 Mortgaged
Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property is located, and to the extent required by Seller as of the date of
origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the least of (i) 100% of the
replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of the Mortgage Loan, or (iii) the amount necessary to avoid the operation of any co-insurance provisions with respect to the Mortgaged Property,
and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as
having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing
coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan and, with respect to any Second Lien Mortgage Loan, the outstanding principal balance of the prior mortgage loan, (2) the full insurable value of the
Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance policies (collectively, the “hazard insurance
policy”) contain a standard mortgagee clause naming 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 Seller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, at such Mortgagor’s
failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. 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. 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 Seller. 
  
 (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 

  

 Schedule 1-2 

 
Buyer, and shall deliver to Buyer, upon demand, evidence of compliance with all such requirements. 
  
 (g) No Satisfaction of Mortgage. The Mortgage has not been satisfied,
canceled, subordinated or rescinded, in whole or in part, 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. 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 Exception Report and consists of a single parcel of real property or contiguous parcels bearing one legal
description and tax assessment number with a single family residence erected thereon, or a two-to four-family dwelling, or an individual condominium unit in a low-rise (i.e.- 1-4 stories) or mid-rise (i.e.- 5-9 stories) 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 Buyer 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 Buyer in its sole discretion. 
  
 (i) Valid First or Second Lien. The 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: 
  
 a. the lien of current real property taxes and assessments not yet due and payable; 
  
 b. 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; 
  
 c. other matters to which like properties are commonly
subject which do not materially interfere with the benefits of the security intended to be 

  

 Schedule 1-3 

 
provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property; and 
  
 d. with respect to each Mortgage Loan which is a Second Lien
Mortgage Loan, a first lien on the Mortgaged Property. 
  
 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 first lien and first priority security interest or (b) with respect to each Second Lien
Mortgage Loan, second priority lien and second priority security interest on the property described therein and Seller has full right to pledge and assign the same to Buyer. 
  
 (j) Validity of Mortgage Documents. The Mortgage Note and the Mortgage and any other agreement executed and delivered
by a Mortgagor or guarantor, 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. 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. No fraud, error, omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place on the part of any Person, including, without
limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan. Seller has reviewed all of the documents constituting the Mortgage File and has made such inquiries as it deems
necessary to make and confirm the accuracy of the representations set forth herein. To the best of Seller’s knowledge, except as disclosed to Buyer in writing, all tax identifications and property descriptions are legally sufficient; and tax
segregation, where required, has been completed. 
  
 (k) Full
Disbursement of Proceeds. Except as otherwise escrowed for repairs or other improvements to be made, and for which funds sufficient to complete such repairs or improvements have been escrowed, as specified in the Underwriting Guidelines, 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. Seller has full right to sell the Mortgage Loan to
Buyer 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 and following the sale of each Mortgage Loan, Buyer will own such Mortgage Loan free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest except any
such security interest created pursuant to the terms of this Agreement. 
  

 Schedule 1-4 

 (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. 
  
 (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 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 included in the Appraised Value 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, or does not otherwise contain, the standard survey exception or to replace the standard survey exception
with a specific survey reading. 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 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 Seller. 
  
 (o) No Defaults. Except with respect to Repurchased Mortgage Loans and as disclosed to Buyer in writing, there is no default, breach, violation or
event of acceleration existing under the Mortgage or the Mortgage Note and no event has occurred which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of
acceleration, and neither Seller nor its predecessors have waived any default, breach, violation or event of acceleration. 
  

 Schedule 1-5 

 (p) No Mechanics’ Liens. 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. 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 otherwise affirmatively insured pursuant to a title insurance policy issued in accordance with section (n) hereof. 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 payments on the Mortgage Loan commenced no more than 60 days after funds were
disbursed in connection with the Mortgage Loan. The Mortgage Interest Rate is adjusted, with respect to adjustable rate Mortgage Loans, 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 interest (except with respect to “Interest-Only Adjustable Rate Mortgage Loans”
as defined in the Seller’s Underwriting Guidelines), which installments of interest, with respect to adjustable rate Mortgage Loans, are subject to change due to the adjustments to the Mortgage Interest Rate on each Interest Rate Adjustment
Date, 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. 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. As of the Purchase Date the Mortgaged Property is lawfully occupied under applicable law. All inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged

  

 Schedule 1-6 

 
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. Seller has not 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. Seller has not received notice of any violation or failure to conform with any such law, ordinance, regulation, standard, license or
certificate. 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 Buyer 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 GNMA 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 GNMA, 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 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 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, in the case of Second Lien Mortgage Loans, a 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

  

 Schedule 1-7 

 
Mae and Freddie Mac. The consolidated principal amount does not exceed the original principal amount of the Mortgage Loan. 
  
 (aa) No Condemnation Proceeding. There have not been any condemnation
proceedings with respect to the Mortgaged Property and Seller has no knowledge of any such proceedings. 
  
 (bb) Collection Practices; Escrow Deposits; Interest Rate Adjustments. The origination and collection practices used by the originator, each
servicer of the Mortgage Loan and 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,
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. An escrow of funds 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
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 as allowed by Fannie Mae or Freddie Mac or otherwise as expressly approved in writing by Buyer, 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
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) Soldiers’ and Sailors’ Civil Relief Act. The Mortgagor
has not notified Seller, and Seller has no knowledge, of any relief requested or allowed to the Mortgagor under the Soldiers’ and Sailors’ Civil Relief Act of 1940. 
  
 (ff) Appraisal. The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to the
approval of the Mortgage Loan application by a qualified appraiser, duly appointed by 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 

  

 Schedule 1-8 

 
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; or the Mortgaged Property value is determined by means other than an appraisal in accordance with the Seller’s Underwriting Guidelines for
Mortgage Loans without appraisals; provided, that such Seller Underwriting Guidelines conform with the underwriting guidelines or guidelines of at least one Take-out Investor who regularly purchases from the Seller Mortgage Loans of the same type(s)
as such Mortgage Loans without appraisals, and the Seller has in its possession and will make available to the Buyer or the Custodian on request evidence of such value and how it was determined in accordance with the Seller’s Underwriting
Guidelines. 
  
 (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 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) 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 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 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. 
  
 (jj) Capitalization of Interest. The
Mortgage Note does not by its terms provide for the capitalization or forbearance of interest. 
  
 (kk) 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 Seller has not financed nor does it own directly or
indirectly, any equity of any form in the Mortgaged Property or the Mortgagor. 
  
 (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 Seller or any Affiliate or
correspondent of Seller, except in connection with a refinanced Mortgage Loan. 
  

 Schedule 1-9 

 (mm) Origination Date. The origination date is no earlier than sixty (60) days prior to the
related Purchase Date. 
  
 (nn) No Exception. The Custodian
has not noted any material exceptions on a Mortgage Loan Schedule and Exception Report with respect to the Mortgage Loan which would materially adversely affect the Mortgage Loan or Buyer’s interest in the Mortgage Loan. 
  
 (oo) 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. 
  
 (pp) Documents Genuine. 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 Seller and held in Seller’s name. 
  
 (qq) 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. 
  
 (rr) Other Encumbrances. To the best of 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. 
  
 (ss) Description. Each Purchased Mortgage Loan conforms to the
description thereof as set forth on the related Mortgage Loan Schedule and Exception Report delivered to the Custodian and Buyer. 
  
 (tt) 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. 
  

(uu) Underwriting Guidelines. Each Purchased Mortgage Loan has been originated in accordance with the Underwriting Guidelines (including all
supplements or amendments thereto) previously provided to Buyer.] 
  
 (vv) Aging. Such Purchased Mortgage Loan has not been subject to a Transaction hereunder for more than 180 days. 
  
 (ww) Committed Mortgage Loans. Each Committed Mortgage Loan is covered by a Take-out Commitment, does not exceed the availability under such
Take-out Commitment (taking into consideration mortgage loans which have been purchased by the respective Take-out Investor under the Take-out Commitment and mortgage loan which Seller has identified to Buyer as covered by such Take-out Commitment)
and conforms to the requirements and the specifications set forth in such Take-out Commitment and the related regulations, rules, requirements and/or handbooks of the applicable Take-out Investor and is eligible for sale to and 

  

 Schedule 1-10 

 
insurance or guaranty by, respectively the applicable Take-out Investor and applicable insurer. Each Take-out Commitment is a legal, valid and binding
obligation of Seller enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 (xx) 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 Buyer 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 Seller 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, Seller has 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. 
  
 (yy) Predatory Lending Regulations; High Cost Loans. None of the
Mortgage Loans are classified as High Cost Mortgage Loans. 
  
 (zz) Reserved. 
  
 (aaa) FHA Mortgage
Insurance; VA Loan Guaranty. With respect to the FHA Loans, the FHA Mortgage Insurance Contract is in full force and effect or the FHA Loan is eligible for FHA Mortgage Insurance and will be the subject of an FHA Mortgage Insurance Contract
within 60 days of the Funding Date, 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 or the VA Loan is eligible for a VA Loan Guaranty Agreement and will be the subject of a VA Loan Guaranty Agreement within 60 days of the Funding Date. 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. 
  

 Schedule 1-11 

 SCHEDULE 2 
 AUTHORIZED REPRESENTATIVES 
  
 SELLER
NOTICES 
  

					
	 Name: Debra F. Watkins
	  	Address:	  	5555 Glenridge Connector NE
	 Telephone: (404) 459-7411
	  	 	  	Suite 800
	 Facsimile:  (404) 705-2301
	  	 	  	Atlanta, GA 30342

  
 SELLER AUTHORIZATIONS

  
 Any of the persons whose signatures and titles appear below are authorized,
acting singly, to act for Seller under this Agreement: 
  

					
	 Name

	  	 Title

	  	 Signature

			
	 Patrick S. Flood
	  	Chief Executive Officer	  	 
			
	 Kevin D. Race
	  	President and Chief Operating Officer	  	 
			
	 Debra F. Watkins
	  	Executive Vice President	  	 
			
	 Steven McClellan
	  	Chief Financial Officer	  	 
			
	 James Krakau
	  	Senior Vice President and Treasurer	  	 
			
	 Greg Herron
	  	Senior Vice President	  	 
			
	 Richard Lutch
	  	Senior Vice President	  	 
			
	 Todd Vickery
	  	Senior Vice President	  	 
			
	 Donna Cribbs
	  	Vice President	  	 
			
	 Pamela Detrow
	  	Vice President	  	 
			
	 Robert Purser
	  	Vice President	  	 
			
	 Daniel Starowicz
	  	Vice President	  	 
			
	 Chuck Wells
	  	Vice President	  	 
			
	 Jesse Lehn
	  	Assistant Vice President	  	 
			
	 Heidi Buck
	  	Limited Vice President	  	 
			
	 Syreeta Butler
	  	Limited Vice President	  	 

  

 A-I-1 

					
			
	 Dorotny Cooper
	  	Limited Vice President	  	 
			
	 Teresa Crowell
	  	Limited Vice President	  	 
			
	 Yancy Lockie
	  	Limited Vice President	  	 
			
	 Sarah Meroney
	  	Limited Vice President	  	 
			
	 Janet Miller
	  	Limited Vice President	  	 
			
	 Valandrea Randall
	  	Limited Vice President	  	 
			
	 Benita Tyler
	  	Limited Vice President	  	 
			
	 Jacque D. Williams
	  	Limited Vice President	  	 

  

 A-I-2 

 BUYER NOTICES 
  

					
	 Name: Gary Timmerman
	  	Address:	  	Credit Suisse First Boston
	            Terry Farley
	  	 	  	Mortgage Capital LLC
	 Telephone: 609-627-5026
	  	 	  	302 Carnegie Center, 2nd Floor
	 Facsimile:  609-627-5011
	  	 	  	Princeton, NJ 08540

  
 BUYER AUTHORIZATIONS

  
 Any of the persons whose signatures and titles appear below, including any
other authorized officers, are authorized, acting singly, to act for Buyer under this Agreement: 
  

					
	 Name

	  	 Title

	  	 Signature

  

 A-I-3 

 Annex I 
  
 Buyer Acting as Agent 
  
 This Annex I forms a part of the Master Repurchase Agreement dated as of April     , 2003 (the “Agreement”)
among Credit Suisse First Boston Mortgage Capital LLC and HomeBanc Mortgage Corporation. This Annex I sets forth the terms and conditions governing all transactions in which a party selling assets or buying assets, as the case may be
(“Agent”), in a Transaction is acting as agent for one or more third parties (each, a “Principal”). Capitalized terms used but not defined in this Annex I shall have the meanings ascribed to them in the Agreement.

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

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

 A-I-1 

 3. Limitation of Agent’s Liability. The parties expressly acknowledge that if the
representations of Agent under the Agreement, including this Annex I, are true and correct in all material respects during the term of any Transaction and Agent otherwise complies with the provisions of this Annex I, then (a) Agent’s
obligations under the Agreement shall not include a guarantee of performance by its Principal or Principals and (b) the other party’s remedies shall not include a right of setoff in respect of rights or obligations, if any, of Agent arising in
other transactions in which Agent is acting as principal. 
  
 4.
Multiple Principals. 
  

	 	(a)	In the event that Agent proposes to act for more than one Principal hereunder, Agent and the other party shall elect whether (i) to treat Transactions under the Agreement as
transactions entered into on behalf of separate Principals or (ii) to aggregate such Transactions as if they were transactions by a single Principal. Failure to make such an election in writing shall be deemed an election to treat Transactions under
the Agreement as transactions on behalf of separate Principals. 

  

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

  

	 	(c)	In the event that Agent and the other party elect to treat Transactions under the Agreement as if they were transactions by a single Principal, the parties agree that (i)
Agent’s notice under Section 2(b) of this Annex I need only identify the names of its Principals but not the portion of each Transaction allocable to each Principal’s account; (ii) the margin maintenance obligations of Seller under Section
6(a) of the Agreement shall, subject to any greater requirement imposed by applicable law, be determined on an aggregate basis for all Transactions entered into by Agent on behalf of any Principal; and (iii) Buyer’s and Seller’s remedies
upon the occurrence of an Event of Default shall be determined as if all Principals were a single Seller or Buyer, as the case may be. 

  

 A-I-2 

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

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

  

 A-I-3 

 EXHIBIT A 
  
 FORM OF TRANSACTION REQUEST 
  
 [Date] 
  
 Credit Suisse First Boston Mortgage Capital LLC 
 [Address] 
 Attention:
                                     
  

	Re:	Master Repurchase Agreement dated as of August 8, 2003 

	 	(the “Master Repurchase Agreement”) by and among HomeBanc Mortgage  

	 	Corporation and Credit Suisse First Boston Mortgage Capital LLC 

  
 [Name] hereby requests that Credit Suisse First Boston Mortgage Capital LLC (“CSFBMCL”) enter into a Transaction with respect to the Mortgage Loans listed on
the Mortgage Loan Schedule and Exception Report attached hereto on Attachment 1 and as set forth below, pursuant to the Master Repurchase Agreement. 
  

			
	 TOTAL NUMBER OF MORTGAGE
 LOANS

	  	 Mortgage Loans – (See Mortgage Loan
 Schedule and Exception Report)

		
	 ORIGINAL PRINCIPAL AMOUNT OF MORTGAGE
 LOANS:
	  	$
		
	 CURRENT PRINCIPAL AMOUNT OF
 MORTGAGE
LOANS:
	  	$
		
	PROPOSED PURCHASE PRICE:	  	$
		
	PURCHASE PRICE INCREASE:	  	$
		
	AGGREGATE PURCHASE PRICE:	  	$
		
	PROPOSED PURCHASE DATE:	  	 

  
 The Master Repurchase Agreement is
incorporated by reference into this Transaction Request and is made a part hereof as if it were fully set forth herein. (All capitalized terms used herein but not defined herein shall have the meanings specified in the Master Repurchase Agreement.)

  

			
	 [Name]

		
	By:	 	 
	 	 	

	 Name:
	 	 
	Title:	 	 

  
 [wire instructions] 
  

 A-1 

 EXHIBIT B 
  
 FORM OF PURCHASE CONFIRMATION 
  
 [Date] 
  
 [Name] 
 ____________ 
 ____________ 
  
 Attention: 
  
 Credit Suisse First Boston Mortgage Capital LLC (“CSFBMCL”) is pleased to confirm
your sale and our purchase of the Mortgage Loans described below and on the attached Mortgage Loan Schedule and Exception Report pursuant to the Master Repurchase Agreement dated as of August 8, 2003 (the “Master Repurchase Agreement”) by
and between HomeBanc Mortgage Corporation and CSFBMCL under the following terms and conditions: 
  

			
		
	Market Value:	  	$
		
	Current Principal Amount of Mortgage Loans:	  	$
		
	Aggregate Purchase Price:	  	$
		
	Purchase Date:	  	 
		
	Repurchase Date:	  	 
		
	Pricing Rate:	  	 
		
	ADDITIONAL INFORMATION:	  	 
		
	Aggregate Purchase Price (date):	  	$
		
	Less Previous Aggregate Purchase Price:	  	$
		
	Less Price Differential due on (date):	  	$
		
	Net funds due [CSFB]/[Name] on (date):	  	$

  
 The Master Repurchase Agreement is
incorporated by reference into this Transaction Confirmation, is made a part hereof as if it were fully set forth herein and is extended hereby until all amounts due in connection with this Transaction are paid in full. 
  

 B-1 

 All capitalized terms used herein but not defined herein shall have the meanings specified in the Master Repurchase
Agreement. 
  

			
	 CREDIT SUISSE FIRST BOSTON
 MORTGAGE CAPITAL
LLC

		
	By:	 	 
	 	 	

	 Name:
	 	 
	Title:	 	 

  

			
	 HOMEBANC MORTGAGE CORPORATION

		
	By:	 	 
	 	 	

	Name:	 	 
	 Title:
	 	 

  

 B-2 

 EXHIBIT C 
  
 MORTGAGE LOAN SCHEDULE AND EXCEPTION REPORT 
  
 MORTGAGE LOAN CHARACTERISTICS 
  

	1.	Seller’s Mortgage Loan identifying number; 

  

	2.	the Mortgagor’s and Co-Mortgagor’s name; 

  

	3.	the street address of the Mortgaged Property including the city, state, county, and the zip code; 

  

	4.	a code indicating whether the Mortgaged Property is a single family residence, a 2-4 family dwelling, a PUD, a townhouse or a unit in a high-rise or low-rise condominium project;

  

	5.	a code indicating the type of Mortgage Loan (e.g. Alt-A Mortgage Loan, etc.); 

  

	6.	the number of units for all Mortgaged Properties; 

  

	7.	a code indicating whether the loan is an adjustable rate, fixed rate or balloon Mortgage Loan; 

  

	8.	a code indicating whether the loan is a FHA, VA or conventional Mortgage Loan; 

  

	9.	a code indicating the lien status of the Mortgage Loan; 

  

	10.	the loan-to-value ratio at origination; 

  

	11.	the combined loan-to-value ratio at origination, if applicable; 

  

	12.	the Mortgage Interest Rate at the time of origination; 

  

	13.	the loan approval/commitment date; 

  

	14.	the original principal amount of the Mortgage Loan; 

  

	15.	the original monthly principal and interest; 

  

	16.	the original interest rate; 

  

	17.	the original date of the Mortgage Note; 

  

	18.	the first Payment Date; 

  

	19.	the maturity date; 

  

 C-1 

	20.	the certificate number for each loan with primary mortgage insurance; 

  

	21.	the Mortgage Loan purpose type; 

  

	22.	the Mortgagor’s and Co-Mortgagor’s FICO score; 

  

	23.	Mortgagor Social Security Number; 

  

	24.	co-Mortgagor Social Security Number; 

  

	25.	Margin;* 

  

	26.	life floor;* 

  

	27.	index type;* 

  

	28.	initial rate floor;* 

  

	29.	periodic rate cap;* 

  

	30.	life cap;* and 

  

	31.	first interest rate adjustment date.* 

  

	*	If applicable. 

  

 C-2 

 EXHIBIT D 
  
 OFFICER’S COMPLIANCE CERTIFICATE 
  
 I,                                , do hereby certify that I am duly
elected, qualified and authorized officer of HomeBanc Mortgage Corporation (“Seller”). This Certificate is delivered to you in connection with Section 17b of the Master Repurchase Agreement dated as of August 8, 2003, among Seller and
Credit Suisse First Boston Mortgage Capital LLC (the “Agreement”). I hereby certify that, as of the date of the financial statements attached hereto and as of the date hereof, Seller is and has been in compliance with all the terms of the
Agreement and, without limiting the generality of the foregoing, I certify that: 
  
 (i) Adjusted Tangible Net Worth. Seller has maintained an Adjusted Tangible Net Worth of at least $25 million; provided, that
beginning with the first full fiscal quarter end following the Effective Date such amount shall increase by $1,000,000. 
  
 (ii) Indebtedness to Adjusted Tangible Net Worth Ratio. For the period beginning on the Effective Date through and including
September 30, 2003, Seller’s ratio of Indebtedness to Adjusted Tangible Net Worth shall not exceed 14:1. For the period beginning on October 31, 2003 through and including December 31, 2003, Seller’s ratio of Indebtedness to Adjusted
Tangible Net Worth shall not exceed 13.5:1. For the period beginning on January 1, 2004 through and including March 31, 2004, Seller’s ratio of Indebtedness to Adjusted Tangible Net Worth shall not exceed 13:1. For the period beginning on April
1, 2004 through and including the Termination Date, Seller’s ratio of Indebtedness to Adjusted Tangible Net Worth shall not exceed 12.5:1. 
  
 (iii) Liquidity. Seller’s has maintained Liquidity of at least $10 million at all times. 
  
 (iv) Maintenance of Profitability. Seller has not
permitted, for any Test Period, Net Income for such Test Period determined on a monthly basis, before income taxes for such Test Period and distributions made during such Test Period, to be less than $1.00. 
  
 (v) Insurance. Seller or their Affiliates, will
continue to maintain, for 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. 
  
 (vi) Documentation. Seller has performed the documentation procedures required by its operational guidelines with respect to
endorsements and assignments, including the recordation of assignments, or has verified that such documentation procedures have been performed by a prior holder of such Mortgage Loan. 
  
 (vii) Compliance. Seller has observed or performed in all material respects all of its covenants and
other agreements, and satisfied every condition, contained in the 

  

 D-1 

 
Agreement and the other Program Agreements to be observed, performed and satisfied by it. 
  
 (viii) No Default. No Default or Event of Default has occurred or is continuing. [If any Default or
Event of Default has occurred and is continuing, Seller shall describe the same in reasonable detail and describe the action the Seller has taken or proposes to take with respect thereto.] 
  
 (vix) Indebtedness. All Indebtedness (other than
Indebtedness evidenced by the Repurchase Agreement) of Seller existing on the date hereof is listed on Schedule 1 hereto. 
  
 (vx) Purchased Mortgage Loans. Attached hereto as Schedule 2 is a true and correct list of all Mortgage Loans purchased by
Buyer and held by Custodian pending repurchase. 
  
 (vxi) Originations. Attached hereto as Schedule 3 is a true and correct summary of all Mortgage Loans originated by Buyer during the calendar quarter ending on [DATE]. 
  

 D-2 

 IN WITNESS WHEREOF, I have set my hand this
                     day of             ,
            . 
  

			
		
	By:	 	 
	 	 	

	 Name:
	 	 
	 	 	

	 Title:
	 	 
	 	 	

  

 D-3 

 SCHEDULE 1 TO OFFICER’S COMPLIANCE CERTIFICATE 
  
 INDEBTEDNESS 
  

					
	 LENDER

	  	 TOTAL COMMITMENT

	  	 OUTSTANDING INDEBTEDNESS

			
	
	  	
	  	

			
	
	  	
	  	

			
	
	  	
	  	

			
	
	  	
	  	

  

 D-4 

 SCHEDULE 2 TO OFFICER’S COMPLIANCE CERTIFICATE 
  
 PURCHASED MORTGAGE LOANS 
  

 D-5 

 SCHEDULE 3 TO OFFICER’S COMPLIANCE CERTIFICATE 
  
 OVERALL MORTGAGE LOAN ORIGINATIONS 
  

					
	 MORTGAGE LOAN TYPE

	  	 TOTAL NUMBER OF
 MORTGAGE LOANS
 ORIGINATED

	  	 AGGREGATE PRINCIPAL
 BALANCE OF MORTGAGE
 LOANS ORIGINATED

	 Alt-A Mortgage Loans
	  	 	  	 
	 Conforming Mortgage Loans
	  	 	  	 
	 Jumbo Mortgage Loans
	  	 	  	 
	 Second Lien Mortgage Loans
	  	 	  	 
	 Sub-Prime Mortgage Loans
	  	 	  	 

  

 D-6 

 EXHIBIT E 
  
 FORM OF OPINION OF SELLER’S COUNSEL 
  
                     ,
             
  
 Credit Suisse First Boston Mortgage Capital LLC 
 Eleven Madison Avenue 
 New York, New York 10010 
  
 Ladies and Gentlemen:

  
 We have acted as counsel to HomeBanc Mortgage Corporation
(“Seller”) in connection with the sale and repurchase by Seller of certain loans (the “Mortgage Loans”) purchased from time to time (each such date, a “Purchase Date”) by Credit Suisse First Boston
Mortgage Capital LLC (“Buyer”) pursuant to a Master Repurchase Agreement, dated as of August 8, 2003, among Seller and Buyer (the “Master Repurchase Agreement”). Capitalized terms used but not defined herein shall
have the meanings set forth in the Master Repurchase Agreement. 
  
 We have acted
as counsel to Seller in connection with the preparation, execution and delivery of, and the initial purchase of Mortgage Loans made under, the Master Repurchase Agreement. 
  
 In connection with rendering this opinion, we have examined such documents as we have deemed necessary or advisable, including the following
documents: 
  
 a. The Program Agreements; 
  
 b. The organizational documents of Seller; 
  
 c. The certified Consents of the Officer of Seller relating to the transactions provided for
in the Program Agreements; 
  
 d. A copy of a UCC-1 financing statement describing
the Repurchase Assets naming Seller as debtor and Buyer as secured party, which will be filed under the Uniform Commercial Code as in effect in the State of
                     with the office of the [Secretary of the State] of
             (the “Filing Office”) on or about             
        , 20     (the “Financing Statement”): 
  
 e. The reports attached hereto as Exhibit A (the “Search Reports”), which set forth the results of an examination conducted by [Federal Research
Corporation] of all currently indexed UCC-1 financing statements naming Seller as debtor that are on file in the Filing Office; 
  
 f. Good standing certificates, as of a recent date, for Seller from each of the States listed on Schedule 1 attached hereto; and 
  
 g. The certificates, letters and opinions required to be furnished by Seller and others in
connection with the execution of the Program Agreements, and the additional certificates, letter and documents delivered by or on behalf of such parties concurrently herewith. 
  

 E-1 

 For purposes of the opinions expressed below, we have assumed the authenticity of all documents submitted to us as
originals, the genuineness of all signatures, the legal capacity of natural persons and the conformity to the originals of all documents. 
  
 Based solely upon the foregoing, we are of the opinion that: 
  
 1. Seller is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware, and has the corporate power and authority to
own its properties and transact the business in which it is engaged. Seller is duly qualified as a foreign corporation to transact business in, and is in good standing under, the laws of each state in which a mortgaged property is located or is
otherwise exempt under applicable law from such qualification. The principal place of business of Seller is located at 5555 Glenridge Connector NE, Suite 800, Atlanta, Georgia 30342. 
  
 2. Seller has the power to engage in the transactions contemplated by the Program Agreements, and has all requisite power, authority and
legal right to execute and deliver the Program Agreements, to transfer and deliver the Repurchase Assets and to perform and observe the terms and conditions of the Program Agreements. 
  
 3. The Program Agreements have been duly and validly authorized, executed and delivered by Seller and are valid, legal and binding
agreements, enforceable against Seller in accordance with their respective terms, subject to the effect of bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the enforcement of creditors’ rights
generally, none of which will materially interfere with the realization of the benefits provided thereunder or with Buyer’s ownership of the Mortgage Loans. 
  
 4. No consent, approval, authorization or order of, or notice, filing or registration with, any court or governmental agency or body is
required for the execution, delivery and performance by Seller of, or compliance by such entity with, the Program Agreements, or the transfer of the Repurchase Assets or the consummation of the transactions contemplated by the Program Agreements.

  
 5. Neither the transfer or delivery of the Mortgage Loans, nor the
consummation of any other of the transactions contemplated in the Program Agreements, nor the fulfillment of the terms of the Program Agreements will result in a breach of or constitutes or will constitute a default under (a) the charter or by-laws
of Seller, or the terms of any material indenture or other agreement or instrument to which Seller is a party or by which it is bound or to which it is subject, (b) any contractual or legal restriction contained in any indenture, mortgage, deed of
trust, agreement, instrument or other similar document to which Seller is a party or by which it is bound or to which it is subject, or (c) any statute or order, rule, regulation, writ, injunction or decree of any court, governmental authority or
regulatory body to which Seller or any of its properties is subject or by which it is bound. 
  
 6. There are no actions, suits, proceedings or investigations pending or, to the best of our knowledge, threatened against Seller that, in our judgment, either in any one instance or in the aggregate, may result in
any material adverse change in the business, operations, financial condition, properties or assets of Seller or in any material impairment of the right or ability of 

  

 E-2 

 
Seller to carry on its business substantially as now conducted or in any material liability on the part of Seller that would draw into question the validity
of the Program Agreements, or of any action taken or to be taken in connection with the transactions contemplated thereby, or that would be likely to impair materially the ability of Seller to perform under the terms of, the Program Agreements.

  
 7. The conveyance of each Purchased Mortgage Loan as and in the manner
contemplated by the Program Agreements is sufficient fully to transfer to Buyer all right, title and interest of Seller thereto as owner, noteholder and mortgagee. 
  
 8. The Repurchase Agreement is effective to create, in favor of Buyer, either a valid sale of the Repurchase Assets to Buyer or a valid
security interest under the Uniform Commercial Code in all of the right, title and interest of Seller in, to and under the Repurchase Assets as collateral security for the payment of Seller’s obligations under the Repurchase Agreement, except
that (a) such security interests will continue in the Repurchase Assets after its sale, exchange or other disposition only to the extent provided in Section 9-315 of the Uniform Commercial Code, (b) the security interests in Repurchase Assets in
which Seller acquires rights after the commencement of a case under the Bankruptcy Code in respect of Seller may be limited by Section 552 of the Bankruptcy Code. 
  
 9. When the Mortgage Notes are delivered to the Custodian, endorsed in blank by a duly authorized officer of Seller, the security interest
referred to in Section 8 above in the Mortgage Notes will constitute a fully perfected first-priority security interest in all right, title and interest of Seller therein. 
  

	10.	(a) Upon the filing of Financing Statements wit the Filing Office, the security interests referred to in Section 8 above will constitute a fully perfected security interest under
the Uniform Commercial Code in all right, title and interest of Seller in, to and under such Repurchase Assets, to the extent that a security interest therein can be perfected by filing under the Uniform Commercial Code. 

  
 (b) The UCC Search Report sets forth the proper filing offices and the
proper debtors necessary to identify those Persons who have on file in the jurisdictions listed on Schedule 1 financing statements covering the Repurchase Assets as of the dates and times specified on Schedule 2. The UCC Search Report identifies no
Person who has filed in any Filing Office a financing statement describing the Repurchase Assets prior to the effective dates of the UCC Search Report. 
  
 11. Seller is not an “investment company”, or a company “controlled” by an “investment company,” within the meaning of the Investment
Company Act of 1940, as amended. 
  
 This opinion is intended for
the sole benefit of the addressee, and its successors and assigns, and shall not be distributed to any other party except in strict conformance with the Program Agreements. 
  

			
	 Very truly yours,

	
	 
	

	 	 	 

  

 E-3 

 EXHIBIT F 
  
 UNDERWRITING GUIDELINES 
  

 F-1 

 EXHIBIT G 
  
 Certificate of an Officer of the Seller 
  
 The undersigned, Charles W. McGuire, Secretary of HomeBanc Mortgage Corporation, a Delaware corporation (the “Seller”), hereby certifies
as follows: 
  
 1. Attached hereto as Exhibit A is a copy
of the Certificate of Incorporation of the Seller, as certified by the Secretary of State of the State of Delaware. 
  
 2. Neither any amendment to the Certificate of Incorporation of the Seller nor any other charter document with respect to the Seller has been filed,
recorded or executed since                         , 200   , and no authorization for the filing,
recording or execution of any such amendment or other charter document is outstanding. 
  
 3. Attached hereto as Exhibit B is a true, correct and complete copy of the By-laws of the Seller as in effect as of the date hereof and at all times
since                         , 200  . 
  
 4. Attached hereto as Exhibit C is a true, correct and complete copy
of resolutions adopted by the Board of Directors of the Seller by unanimous written consent on                     
    , 200   (the “Resolutions”). The Resolutions have not been further amended, modified or rescinded and are in full force and effect in the form adopted, and they are the only
resolutions adopted by the Board of Directors of the Seller or by any committee of or designated by such Board of Directors relating to the execution and delivery of, and performance of the transactions contemplated by the Master Repurchase
Agreement dated as of August 8, 2003 (the “Repurchase Agreement”), between the Seller and Credit Suisse First Boston Mortgage Capital LLC (the “Buyer”) and the Custodial Agreement dated as of August 8, 2003, among
the Seller, the Buyer and LaSalle Bank, National Association, as custodian (the “Custodian”). 
  
 5. The Repurchase Agreement and the Custodial Agreement are substantially in the form approved by the Resolutions or pursuant to authority duly granted by the Resolutions. 
  
 6. The undersigned, as officers of the Seller or as attorney-in-fact, are authorized to and have signed manually the
Repurchase Agreement, the Custodial Agreement or any other document delivered in connection with the transactions contemplated thereby, were duly elected or appointed, were qualified and acting as such officer or attorney-in-fact at the respective
times of the signing and delivery thereof, and were duly authorized, to sign such document on behalf of the Seller, and the signature of each such person appearing on any such document is the genuine signature of each such person. 
  

					
	 Name

	 	 Title

	 	 Signature

  

 G-1 

 IN WITNESS WHEREOF, the undersigned has hereunto executed this Certificate as of the
             day of                     , 200  .

  

			
	 HomeBanc Mortgage Corporation, as Seller

		
	By:	 	 
	 	 	

	 Name:
 Title:
	 	 

  

 G-2 

 Exhibit C to Officer’s Certificate of the Seller 
  
 CORPORATE RESOLUTIONS OF SELLER 
  
 Consent of the Board of Directors 
 Without a Meeting Pursuant to 
 Section
             of              
  
 The undersigned, being the directors of HomeBanc Mortgage Corporation, a Delaware corporation (the “Seller”), do hereby
consent to the taking of the following action without a meeting and do hereby adopt the following resolutions by written consent pursuant to Section              of
             of the State of             : 
  
 WHEREAS, it is in the best interests of the Seller to transfer from time to time to Buyer Mortgage Loans against the
transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller such Mortgage Loans at a date certain or on demand, against the transfer of funds by Seller pursuant to the terms of the Repurchase Agreement (as defined
below). 
  
 NOW, THEREFORE, be it 
  
 RESOLVED, that the execution, delivery and performance by the Seller of the
Master Repurchase Agreement (the “Repurchase Agreement”) to be entered into by the Seller and Credit Suisse First Boston Mortgage Capital LLC, as Buyer, substantially in the form of the draft dated August 8, 2003, attached hereto as
Exhibit A, are hereby authorized and approved and that the President or any Executive Vice President, Senior Vice President or Treasurer (collectively, the “Authorized Officers”) of the Seller be and each of them hereby is
authorized and directed to execute and deliver the Repurchase Agreement to the Buyer with such changes as the officer executing the same shall approve, his execution and delivery thereof to be conclusive evidence of such approval; 
  
 RESOLVED, that the execution, delivery and performance by the Seller of the
Custodial Agreement (the “Custodial Agreement”) to be entered into by the Seller, the Buyer and LaSalle Bank, National Association, as custodian (the “Custodian”) substantially in the form of the draft dated August
8, 2003, attached hereto as Exhibit B, are hereby authorized and approved and that the Authorized Officers of the Seller be and each of them hereby is authorized and directed to execute and deliver the Custodial Agreement to the Buyer and
Custodian with such changes as the officer executing the same shall approve, his execution and delivery thereof to be conclusive evidence of such approval; 
  

 G-3 

 RESOLVED, that the Authorized Officers hereby are, and each hereby is, authorized to execute and deliver
all such aforementioned agreements on behalf of the Seller and to do or cause to be done, in the name and on behalf of the Seller, any and all such acts and things, and to execute, deliver and file in the name and on behalf of the Seller, any and
all such agreements, applications, certificates, instructions, receipts and other documents and instruments, as such Authorized Officer may deem necessary, advisable or appropriate in order to carry out the purposes of the foregoing resolutions.

  
 RESOLVED, that the proper officers, agents and counsel of the
Seller are, and each of such officers, agents and counsel is, hereby authorized for and in the name and on behalf of the Seller to take all such further actions and to execute and deliver all such other agreements, instruments and documents, and to
make all governmental filings, in the name and on behalf of the Seller and such officers are authorized to pay such fees, taxes and expenses, as advisable in order to fully carry out the intent and accomplish the purposes of the resolutions
heretofore adopted hereby. 
  
 Dated as of:
                         , 200   
  

 G-4 

 EXHIBIT H 
  
 SELLER’S TAX IDENTIFICATION NUMBER 
  
 The Tax Identification Number for HomeBanc Mortgage Corporation is 58-2532745. 
  

 H-1 

 EXHIBIT J 
  
 [RESERVED] 
  

 J-1 

 EXHIBIT K 
  
 CUSTODIAL AND BANK FEE SCHEDULE 
 [CSFB TO PROVIDE] 
  

 K-1 

 EXHIBIT L 
  
 FORM OF SERVICER NOTICE 
  
 [Date] 
  
 [                    ], as Servicer 
 [ADDRESS] 
 Attention:
                     
  

	 	Re:	Master Repurchase Agreement, dated as of August 8, 2003 (the “Repurchase Agreement”), by and between HomeBanc Mortgage Corporation (the “Seller”)
and Credit Suisse First Boston Mortgage Capital LLC (the “Buyer”). 

  
 Ladies and Gentlemen: 
  
 [                    ] (the “Servicer”) is servicing certain mortgage loans for Seller pursuant to that certain
Servicing Agreement between the Servicer and Seller. Pursuant to the Repurchase Agreement between Buyer and Seller, the Servicer is hereby notified that Seller has pledged to Buyer certain mortgage loans which are serviced by Servicer which are
subject to a security interest in favor of Buyer. 
  
 Upon receipt of a Notice of
Event of Default from Buyer in which Buyer shall identify the mortgage loans which are then pledged to Buyer under the Repurchase Agreement (the “Mortgage Loans”), the Servicer shall segregate all amounts collected on account of
such Mortgage Loans, hold them in trust for the sole and exclusive benefit of Buyer, and remit such collections in accordance with Buyer’s written instructions. Following such Notice of Event of Default, Servicer shall follow the instructions
of Buyer with respect to the Mortgage Loans, and shall deliver to Buyer any information with respect to the Mortgage Loans reasonably requested by Buyer. 
  
 Notwithstanding any contrary information which may be delivered to the Servicer by Seller, the Servicer may conclusively rely on any information or Notice of Event of
Default delivered by Buyer, and Seller shall indemnify and hold the Servicer harmless for any and all claims asserted against it for any actions taken in good faith by the Servicer in connection with the delivery of such information or Notice of
Event of Default. 
  

 L-1 

 Please acknowledge receipt of this instruction letter by signing in the signature block below and forwarding an executed
copy to Buyer promptly upon receipt. Any notices to Buyer should be delivered to the following addresses: 302 Carnegie Center, 2nd Floor, Princeton, New Jersey 08540; Attention: Mr. Gary Timmerman and Ms. Terry Farley; Telephone:; Facsimile:; with a copy to Eleven Madison Avenue, New York, New York 10010; Attention: Legal Department; Telephone:; Facsimile:.

  

			
	 Very truly yours,

	
	 [                                      
                          ]

		
	By:	 	 
	 	 	

	 Name:

	 Title:
	 	 

  

			
	 ACKNOWLEDGED:

	
	 [                                      
                          ],

	 as Servicer

		
	By:	 	 
	 	 	

	 Title:

	 Telephone:

	 Facsimile:

  

 L-2 

 APPROVED TAKE-OUT INVESTORS 
  
 Bear Stearns (and its subsidiary EMC) 
 Merrill
Lynch Credit Corporation 
 CS First Boston 
 Countrywide

 Residential Funding Corporation 
 Federal National Mortgage
Corporation 
 Federal Home Loan Mortgage Corporation 
 Government
National Mortgage Corporation 
 GreenPoint Mortgage 
 Impac
Funding 
 Aurora Loan Services 
 Astoria Federal Savings

 CitiCorp Mortgage 
 Bank United of Florida 
 Leader Mortgage (Bond Authority) 
 Georgia Housing Finance Authority (GHFA)

 Urban Residential Finance Authority (URFA) 
 EquiBanc Mortgage
(Subsidiary of Southtrust) 
 Southstar Funding 
 First Horizon

 RBMG/NetBank 
 Union Planters 
 Matrix 
  
 Hedge Transaction Investors 
 Bear Stearns 
 CS First
Boston 
 Salomon, Smith, Barney 
 REFCO 
 Vining Sparks, IBG 
 Stephens, Inc. 
 Countrywide Securities 
 Lehman Bros. 
 FNMA CSTD 
  

 L-3

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