Document:

Confirmation for Swap Transaction, dated 09/05/2003

 EXHIBIT 10.8 
  
 CONFIRMATION FOR SWAP TRANSACTION 
 UNDER EXISTING 1992 MASTER AGREEMENT 
  

	TO:	NC Capital Corporation (“Party B”) 

	    	18400 Von Karman, Suite 1000 

	    	Irvine, CA 92616 

  

	ATTN:	Kevin Cloyd 

	TEL:	949-440-7030 

	FAX:	949-440-7033 

  

	FROM:	Citibank, N.A. (“Party A”) 

	    	333 W. 34th Street, 2nd Floor 

  

	New	York, New York 10002 

  

	ATTN:	Confirmations Unit 

	TEL:	212-615-8981 

	FAX	212-615-8985 

  

	Date:	September 5, 2003 

  
 Our Reference No. 50034057 
  
 The purpose of this
confirmation is to confirm the terms and conditions of the Swap Transaction entered into between us on the Trade Date specified below (the “Swap Transaction”). This letter constitutes a “Confirmation” as referred to in the ISDA
Master Agreement specified below. 
  
 The definitions and provisions contained in
the 2000 ISDA Definitions (the “Definitions”) and the defined terms set forth in the Reference Transaction (as defined below), to the extent used but not defined herein, are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation this Confirmation will govern. Each party represents and warrants to the other that (i) it is duly authorized to enter into this Transaction and to perform its obligations hereunder and
(ii) the person executing this Confirmation is duly authorized to execute and deliver it. 
  

	1.	This Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement dated as of September 5, 2003, as amended and supplemented from time to time (the
“Agreement”), between you and us. All provisions contained in the Agreement shall govern this Confirmation except as expressly modified below. 

  

	2.	The terms of the Swap Transaction to which this Confirmation relates are as follows: 

	 Notional Amount:
	  	The Notional Amount as set forth in the Reference Transaction.
	 	  	 
	 Trade Date:
	  	September 5, 2003
	 	  	 
	 Effective Date:
	  	September 17, 2003
	 	  	 
	 Termination Date:
	  	The Termination Date of the Reference Transaction. For the avoidance of doubt, neither party may designate an Early Termination Date under this Transaction.
	 	  	 
	 Business Day:
	  	As specified in the Reference Transaction
	 	  	 
	 Business Day Convention:
	  	Following
	 	  	 
	 3.    Floating Amounts:
	  	 
	 	  	 
	 A.    Party A Floating Amounts
	  	 
	 	  	 
	 Party A First Floating Rate Amounts:
	  	Any and all amounts actually received by Party A from its Counterparty under and pursuant to the Reference Transaction.
	 	  	 
	 Party A First Floating Rate
 Payer Amount Payment Dates:
	  	Each day on which Party A receives such payment under the Reference Transaction; provided however, that if such payment is received after 3:00 p.m. New York City time such Party A
First Floating Rate Payer Amount Payment Date shall be the next following Business Day.
	 	  	 
	 B.    Party B Floating Amounts
	  	 
	 	  	 
	 Party B First Floating
 Rate Amounts:
	  	Any and all amounts due from Party A under and pursuant to the Reference Transaction (excluding costs or fees relating to a Swap Counterparty Default); provided,
however, that if a Swap Counterparty Default (as defined below) has occurred, it shall be a condition precedent to the payment of any such Party B First Floating Rate Amount that Party A shall actually have paid such amount under the
Reference Transaction.

	 Increase in Party B First Floating Rate
 Amounts Receivable:
	  	 In the event that the amount payable by Party A under the Reference Transaction with respect to any Payment Date, Interim Payment Date or
Termination Date, as applicable, referred to in the Reference Transaction must be increased by (i) any withholding taxes or (ii) the Party B Additional Payment (defined below), if any, the amount payable by Party B to Party A pursuant to this
Transaction on the related Party B First Floating Rate Payer Amount Payment Date shall be increased accordingly.
 “Party B Additional Payment”
shall mean, any amounts that would have been owed to Party A pursuant to Section 2(e) or 11 of the ISDA Master Agreement relating to the Reference Transaction but for Part 5(h) or (j), as the case may be, of the Schedule to such ISDA Master
Agreement shall be paid by Party B to Party A upon demand by Party A but only to the extent that Party A is neither the Defaulting Party with respect to an Event of Default nor sole Affected Party with respect to a Termination Event under the
Reference Transaction.

	 	  	 
	 Party B First Floating Rate
 Payer Amount Payment Dates:
	  	Each Payment Date, Interim Payment Date and Termination Date referred to in the Reference Transaction, and any Business Day on which Party A owes any Party A Accrued Interest Payment
(as defined in the Reference Transaction).
	 	  	 

  

	 Party B Second Floating
 Rate Amounts:
	  	The product of (a) the “Party B Rate” (as such term is defined in the Side Letter), (b) the average of the aggregate outstanding face amount of the Secured Liquidity Notes
and Extended Notes, if any, each day from and including the preceding Party B Second Floating Rate Payer Amount Payment Date (or, if none, the Effective Date) to, but excluding, such Party B Second Floating Rate Payer Amount Payment Date, and (c)
the actual number of days from and including the preceding Party B Second Floating Rate Payer Amount Payment Date to, but excluding, such Party B Second Floating Rate Payer Amount Payment Date divided by 360.

	 Party B Second Floating Rate
 Payer Amount Payment Dates:
	  	Each Party B First Floating Rate Payer Amount Payment Date.
	 	  	 
	 C. Payment by Party A and Party B following
 a Distressed Termination Event:
	  	 Upon the occurrence and continuation of a Distressed Termination Event (as defined in the Mortgage Loan Purchase and Servicing
Agreement), all payments by Party A and Party B under this Confirmation shall cease and be replaced by the following payment provision:
  
 On the Program Termination Date, Party A shall pay to Party B an amount equal to the excess, if any, of (A) the aggregate amounts paid by Van Karman Funding LLC to Party
A pursuant to the Reference Transaction from and including the date on which the Distressed Termination Event occurred to and including the Program Termination Date (the “Wind-down Period”) over (B) the sum of (a) the aggregate amount paid
by Party A to Van Karman Funding LLC pursuant the Reference Transaction during the Wind-down Period, (b) the Party B Second Floating Rate Amount that accrued during the Wind-down Period and (c) the amount, if any, payable pursuant to “Increase
in Party B First Floating Rate Amount Receivable” above during the Wind-down Period. If the amount equal to the sum of (A) minus (B) above is a negative number, Party B shall pay an amount equal to the absolute value of such amount to Party A
on the Program Termination Date.

	 	  	 
	 4. Other Provisions
	  	 
	 	  	 
	 Calculation Agent:
	  	Party B

	 Assignment:
	  	This Swap Transaction shall be assigned concurrently with any assignment or transfer of the Reference Transaction pursuant to the terms thereof. The parties acknowledge that any
out-of-pocket costs reasonably incurred by Party B associated with the assignment of this Transaction concurrently with the Reference Transaction shall be included in the fees paid by Party A to transfer its obligations to a Successor Counterparty
pursuant to the Reference Transaction. Party A shall bear its own cost associated with the assignment of this Transaction.
	 	  	 
	 Reference Transaction:
	  	The Swap Transaction between Party A and Von Karman Funding LLC dated as of the date hereof as amended from time to time.
	 	  	 
	 Swap Counterparty Default:
	  	The occurrence of an Event of Default or Termination Event under Section 5(b)(v) of the Reference Transaction, as to which Party A is the Defaulting Party or Affected
Party.
	 	  	 
	 Payment Instructions:
	  	 
	 	  	 
	 Payment to Citibank N.A.:
	  	Payment to NC Capital Corporation:
	 	  	 
	 To be provided in written instructions.
	  	To be provided in written instructions

 Please confirm that the foregoing correctly sets forth the terms and conditions of our agreement. 
  
 Yours Sincerely, 
  
 CITIBANK N.A. 
  
 By:     /s/    STEVE INCONTRO                     
         
 Name:  Steve Incontro 
 Title:    Director 
  
 Confirmed and agreed as of the date first written above: 
  
 NC
CAPITAL CORPORATION 
  
 By:     /s/    KEVIN CLOYD                      
               
 Name:  Kevin Cloyd 
 Title:    PresidentSchedule to ISDA Master Agreement, dated 09/05/2003

 EXHIBIT 10.9 
  
 SCHEDULE 
  
 to the 
  
 ISDA Master Agreement 
  
 dated as of September 5, 2003, 
  
 between 
  
 CITIBANK, N.A., 
 a national banking association organized under the laws of the United States 
 (“Party A”) 
  
 and

  
 NC CAPITAL CORPORATION 
 a corporation organized and existing 
 under the
laws of California 
 (“Party B”) 
  
 Part 1 
  
 Termination Provisions 
  
 In
this Agreement: 
  

	(a)	“Specified Entity” with respect to both Party A and Party B: None. 

  

	(b)	“Specified Transaction” will have the meaning specified in Section 14 of this Agreement. 

  

	(c)	The “Default Under Specified Transactions” provision of Section 5(a)(v) will not apply to Party A and will not apply to Party B. 

  

	(d)	The “Cross Default” provisions of Section 5(a)(vi) will not apply to Party A and will not apply to Party B. 

  

 1 

	(e)	The “Credit Event Upon Merger” provisions of Section 5(b)(v) of this Agreement will apply to Party A and will apply to Party B. 

  

	(f)	The “Automatic Early Termination” provisions of Section 6(a) will not apply to Party A and will not apply to Party B. 

  

	(g)	Payment on Early Termination.  The provisions of Sections 6(d) and 6(e) of this Agreement shall not apply, therefore no termination payment under Section 6(e) shall
be payable by either party. 

  

	(h)	Restriction on Designating an Early Termination Date.  Notwithstanding any provisions in this Agreement to the contrary, an Early Termination Date may not be
designated under this Agreement by either party. The Termination Date as defined in the Confirmation is the sole Termination Date for this Agreement. 

  

	(i)	“Termination Currency” means United Sated Dollars (“USD”). 

  

	(j)	“Additional Termination Event” will not apply. 

  
 Part 2 
  
 Tax Representations 
  

	(a)	Payer Representations.  For the purpose of Section 3(e) of this Agreement, Party A will make the following representation and Party B will make the following
representation: 

  
 It is not required by any
applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 2(e),
6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party under this Agreement. In making this representation, it may rely on (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement,
(ii) the satisfaction of the agreement of th other party contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this
Agreement and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement, provided that it shall not be a breach of this representation where reliance is placed on clause (ii) above and the other party
does not deliver a form or documents under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position. 
  

 2 

	(b)	Payee Representations.  For the purpose of Section 3(f) of the Agreement, Party A and Party B make the representations specified below, if any:

  
 The following representation will apply to Party
A: 
  
 It is a national banking association organized under the
laws of the United States and its U.S. taxpayer identification number is 13-5266470. It is “exempt” within the meaning of Treasury Regulation sections 1.6041-3(p) and 1.6049-4(c) from information reporting on Form 1099 and backup
withholding. 
  
 The following representation will apply to Party
B: 
  
 It is a corporation created or organized in the United
States or under the laws of the State of California; and its U.S. taxpayer identification number is 33-0829437. 
  
 Part 3 
  
 Agreement to Deliver Documents 
  
 For the purpose of
Section 4(a) of this Agreement: 
  
 I. Tax forms, documents or
certificates to be delivered are: 
  

	 Party required to
 deliver document
	 	 Form/Document/
 Certificate
	 	 Date by which to
 be delivered

	

	 (i) Party A and Party B
	 	As required under Section 4(a)(i) of the Agreement, IRS Form W-9.	 	Promptly upon execution of this Agreement; and promptly upon learning that any form previously provided by Party B has become obsolete or incorrect.

  

 3 

 II. Other documents to be delivered are: 
  

	 Party required
 to deliver
 document
	 	 Form/Document/
 Certificate
	 	 Date by which to
 be
delivered
	 	 Covered by
 Section
3(d)

	

	 (a) Party A, Party B and Credit Support Provider
	 	Evidence reasonably satisfactory to the other party of the (i) authority of such entity to enter into the Agreement and each such Credit Support Document and any Transactions and
(ii) the authority and genuine signature of the individual signing the Agreement and each Credit Support Document on behalf of such entity to execute the same.	 	As soon as practicable after execution of this Agreement and, if requested by the other party, as soon as practicable after execution of any Confirmation of any other
Transaction.	 	Yes
				
	 (b) Party A and Party B
	 	The party’s (or the party’s Credit Support Provider’s) annual report containing audited consolidated financial statements prepared in accordance with accounting
principles that are generally accepted in such party’s country of organization and certified by independent certified public accountants for each fiscal year.	 	Upon request.	 	Yes

  

 4 

	 Party required
 to deliver
 document
	 	Form/Document/
Certificate	 	 Date by which to
 be
delivered
	 	 Covered by
 Section
3(d)

	

	 (c) Party A and Party B
	 	The party’s (or the party’s Credit Support Provider’s) unaudited consolidated financial statements, the consolidated balance sheet and related statements of income for
each fiscal quarter prepared in accordance with accounting principles that are generally accepted in such party’s country of organization.	 	Upon request.	 	Yes
				
	 (d) Party A, Party B and the Credit Support Provider for Party B
	 	Legal opinion in a form acceptable to the other party.	 	Upon execution of this Agreement.	 	No

  

 5 

 Part 4 
  
 Miscellaneous 
  
 (a)  Addresses for Notices. For the purpose of Section 12(a) of this Agreement: 
  
 Address for notices or communications to Party A: 
  

	 Address:
	 	250 West Street	  	 	  	 	  	 
	 	 	 10th Floor
	  	 	  	 	  	 
	 	 	 New York, New York 10013
	  	 	  	 
				
	 Attention:
	 	 Director Derivatives Operations
	  	 	  	 
					
	 Facsimile No.:
	 	 212 723 2956
	  	 	  	 	  	 
					
	 (For all purposes)
	 	 	  	 	  	 	  	 

  
 In addition, in the
case of notices or communications relating to Section 5, 6, 11 or 13 of this Agreement, a second copy of any such notice or communication shall be addressed to the attention of Party A’s legal department as follows: 
  

	 Address:
	 	Legal Department	  	 	  	 	  	 
	 	 	 77 Water Street
	  	 	  	 	  	 
	 	 	 9th Floor
	  	 	  	 	  	 
	 	 	 New York, New York 10004
	  	 	  	 
				
	 Attention:
	 	 Department Head
	  	 	  	 
					
	 Facsimile No.:
	 	 212 657 1452
	  	 	  	 	  	 

  

 6 

 Address for notices or communications to Party B: 
  

	 Address:
	 	18400 Von Karman Avenue, Suite 1000	  	 	  	 
	 	 	 Irvine,CA 92612
	  	 	  	 
				
	 Attention:
	 	 Kevin Cloyd
	  	 	  	 
					
	 Facsimile No.:
	 	 949-440-7033
	  	 	  	 	  	 
	 Telephone:
	 	 949-440-7030
	  	 	  	 	  	 

  
 In addition, in the
case of notices or communications relating to Section 5, 6, 11 or 13 of this Agreement, a second copy of any such notice or communication shall be addressed to the attention of Party B’s legal department as follows: 
  

	 Address:
	 	18400 Von Karman Avenue, Suite 1000	  	 	  	 
	 	 	 Irvine,CA 92612
	  	 	  	 
				
	 Attention:
	 	 General Counsel
	  	 	  	 
					
	 Facsimile No.:
	 	 949-440-7033
	  	 	  	 	  	 
	 Telephone:
	 	 949-440-7030
	  	 	  	 	  	 

  

	(b)	Process Agent.  For the purpose of Section 13(c) of this Agreement: 

  
 Party B appoints as its Process Agent: Not applicable. 
  

	(c)	Offices.  The provisions of Section 10(a) will apply to this Agreement. 

  

	(d)	Multibranch Party.  For the purpose of Section 10(c) of this Agreement: 

  
 Party A is not a Multibranch Party. 
  

Party B is not a Multibranch Party. 
  

	(e)	Calculation Agent.  Has the meaning specified in the Confirmation. 

  

	(f)	Credit Support Document.  Details of any Credit Support Document: 

  
 The Credit Support Document is the Guarantee made by the Credit Support Provider in favor of Party A, in a form satisfactory
to Party A. 
  

	(g)	Credit Support Provider.  With respect to Party A; not applicable, and with respect to Party B; New Century Financial Corporation. 

  

 7 

	(h)	Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of New York. 

  

	(i)	“Affiliate” will have the meaning specified in Section 14 of this Agreement. 

  

	(j)	Additional Representations.  For purposes of Section 3 of this Agreement, the following shall be added, immediately following paragraph (f) thereof:

  
 “(g) No Reliance.  It is
acting for its own account, and it has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisors as it has
deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into that Transaction; it being understood that information and explanations related to the terms and
conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction. It has not received from the other party any assurance or guarantee as to the expected results of that Transaction. 

 
 (h) Evaluation and Understanding.  It is capable of
evaluating and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes, the financial and other risks
of that Transaction. 
  
 (i) Status of
Parties.  The other party is not acting as a fiduciary or an advisor for it in respect of that Transaction. 
  
 (j) No Agency.  It is entering into this Agreement and each Transaction as principal and not as agent.” 
  

	(k)	Eligible Contract Participant.  Each party represents that (a) it is an “eligible contract participant” within the meaning of Section 1(a)(12) of the
Commodity Exchange Act, as amended (the “CEA”), (b) this Agreement and each Transaction is subject to individual negotiation by each party, and (c) neither this Agreement nor any Transaction will be executed or traded on a “trading
facility” within the meaning of Section 1a(33) of the CEA. 

  

	(l)	Financial Institution.  Party A represents that it is a “financial institution” as defined in the Federal Deposit Insurance Corporation Improvement Act of
1991 or Regulation EE promulgated by the Federal Reserve Board thereunder. 

  

	(m)	“Netting of Payments” Subparagraph (ii) of Section 2(c) of this Agreement will apply to any Transaction. 

  

 8 

 Part 5 
  
 Other Provisions 
  

	(a)	Waiver of Right to Trial by Jury.  Each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury
in respect of any suit, action or proceeding relating to this Agreement. 

  

	(b)	Severability.  Any provision of this Agreement which is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition, unenforceability or non-authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other jurisdiction so long as
this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter of this Agreement and the deletion of such portion of this Agreement will not substantially impair the
respective benefits and expectations of the parties to this Agreement. The parties shall endeavor, in good faith negotiations, to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provisions. 

  

	(c)	Notice of Events of Default.  Each party agrees, upon learning of the occurrence of any event or commencement of any condition that constitutes (or that with the
giving of notice or passage of time or both would constitute) an Event of Default or Termination Event with respect to such party, promptly to give the other party notice of such event or condition (or, in lieu of giving notice of such event or
condition in the case of an event or condition that with the giving of notice or passage of time or both would constitute an Event of Default or Termination Event with respect to the party, to cause such event or condition to cease to exist before
becoming an Event of Default or Termination Event). 

  

	(d)	Recording of Conversations.  Each party hereto consents to the recording of its telephone conversations relating to this Agreement or any potential Transaction. To
the extent that one party records telephone conversations (the “Recording Party”) and the other party does not (the “Non-Recording Party”), the Recording Party shall, in the event of any dispute, make a complete and unedited copy
of such party’s tape of the entire day’s conversations with the Non-Recording Party’s personnel available to the Non-Recording Party. The Recording Party’s tapes may be used by either party in any forum in which a dispute is
sought to be resolved and the Recording Party will retain tapes for a consistent period of time in accordance with the Recording Party’s policy unless one party notifies the other that a particular transaction is under review and warrants
further retention. 

  

 9 

	(e)	Set-off.  Section 6 of the Agreement is amended by adding the following new subsection 6(f): 

  
 (f) In addition to any rights of set-off a party may have as a matter of law
or otherwise, upon the occurrence of an Event of Default or a Termination Event with respect to a party (“X”) the other party (“Y”) will have the right (but will not be obliged) without prior notice to X or any other person to
set-off any obligation of X owing to Y (whether or not arising under this Agreement, whether or not matured, whether or not contingent and regardless of the currency, place of payment or booking office of the obligation) against any obligation of Y
owing to X (whether or not arising under this Agreement, whether or not matured, whether or not contingent and regardless of the currency, place of payment or booking office of the obligation). 
  
 For the purpose of cross-currency set-off, Y may convert any obligation to
another currency at a market rate determined by Y. 
  
 If an
obligation is unascertained, Y may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained. 
  
 Nothing in this provision will be deemed to create a charge or other security
interest. 
  

	(f)	Definitions.  The definitions and provisions contained in the 2000 ISDA Definitions, without regard to any amendment or supplement thereof subsequent to the date of
this Agreement (together, the “Definitions”), are hereby incorporated into this Agreement, provided that any reference therein to a “Swap Transaction” shall be deemed to include a “Transaction” hereunder. In the event
of any inconsistency (1) between the provisions of the Definitions and this Agreement, this Agreement will prevail, (2) between the provisions of a Confirmation and the Definitions, the Confirmation will prevail and (3) between the provisions of a
Confirmation and this Agreement, the Confirmation will prevail. 

  

	(G)	Confirmation.  The Confirmation, as amended and supplemented from time to time, supplements, forms part of, and will be read and construed as one with the
Agreement. The parties hereby agree and acknowledge that the Transaction entered into pursuant to the Confirmation, dated as of the date hereof and bearing the Reference No. 50034057, between the parties shall constitute the sole Transaction under
this Agreement. 

  

	(h)	Conditions Precedent.  Section 2(a)(iii) of the Agreement shall not apply to the obligations of either party. 

  

	(i)	Failure to Pay.  Section 5(a)(i) of the Agreement shall be amended by deleting the word “third” in line three thereof and replacing it with the word
“first”. 

  

 10 

 IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below with effect from the
date specified on the first page of this document. 
  

	 CITIBANK, N.A.
	 	 	 	 NC CAPITAL CORPORATION

					
	By:	 	/s/    LINDA COOK        	 	 	 	By:	 	/s/    KEVIN CLOYD        
	 	
	 	 	 	 	

					
	Title:	 	Vice President	 	 	 	Title:	 	 President

	 	
	 	 	 	 	

  

 11

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