Document:

Exhibit 10.1

AGREEMENT FOR
PURCHASE AND SALE OF SERVICING

BY AND BETWEEN

NETBANK

SELLER

AND

EVERBANK

PURCHASER

 

DATED

AS OF

JUNE 15, 2007

TABLE OF
CONTENTS

	
  1.

  	
  DEFINITIONS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  SALE AND TRANSFER OF SERVICING

  	
   

  	
  7

  
	
   

  	
  2.1

  	
  Sale

  	
   

  	
  7

  
	
   

  	
  2.2

  	
  Investor Approval

  	
   

  	
  7

  
	
   

  	
  2.3

  	
  Transfer Documents

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  CONSIDERATION

  	
   

  	
  8

  
	
   

  	
  3.1

  	
  Purchase Price

  	
   

  	
  8

  
	
   

  	
  3.2

  	
  Accounts Receivable

  	
   

  	
  8

  
	
   

  	
  3.3

  	
  Payment of the Purchase Price; Holdback

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  COVENANTS OF PURCHASER

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  COVENANTS OF SELLER

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  POST CLOSING REQUIREMENTS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  REPRESENTATIONS AND WARRANTIES OF SELLER

  	
   

  	
  13

  
	
   

  	
  7.1

  	
  Due Incorporation and Good Standing

  	
   

  	
  13

  
	
   

  	
  7.2

  	
  Authority and Capacity

  	
   

  	
  13

  
	
   

  	
  7.3

  	
  Effective Agreement

  	
   

  	
  13

  
	
   

  	
  7.4

  	
  No Conflict

  	
   

  	
  13

  
	
   

  	
  7.5

  	
  Approvals and Compliance

  	
   

  	
  13

  
	
   

  	
  7.6

  	
  Filing of Reports

  	
   

  	
  14

  
	
   

  	
  7.7

  	
  Related Escrow Accounts

  	
   

  	
  14

  
	
   

  	
  7.8

  	
  Accounts Receivable

  	
   

  	
  14

  
	
   

  	
  7.9

  	
  The Mortgage Loans

  	
   

  	
  14

  
	
   

  	
  7.10

  	
  Insurance

  	
   

  	
  17

  
	
   

  	
  7.11

  	
  Litigation

  	
   

  	
  17

  
	
   

  	
  7.12

  	
  No Accrued Liabilities

  	
   

  	
  17

  
	
   

  	
  7.13

  	
  Offering Information

  	
   

  	
  17

  
	
   

  	
  7.14

  	
  Facts and Omissions

  	
   

  	
  17

  
	
   

  	
  7.15

  	
  No Cooperative Loans

  	
   

  	
  17

  
	
   

  	
  7.16

  	
  No Recourse Loans

  	
   

  	
  18

  
	
   

  	
  7.17

  	
  Restricted Mortgage Loans

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  REPRESENTATIONS AND WARRANTIES OF PURCHASER

  	
   

  	
  18

  
	
   

  	
  8.1

  	
  Due Incorporation and Good Standing

  	
   

  	
  18

  
	
   

  	
  8.2

  	
  Authority and Capacity

  	
   

  	
  18

  
	
   

  	
  8.3

  	
  Enforceability

  	
   

  	
  18

  
	
   

  	
  8.4

  	
  Effective Agreement

  	
   

  	
  18

  
	
   

  	
  8.5

  	
  Statements Made

  	
   

  	
  18

  
	
   

  	
  8.6

  	
  Investor Good Standing

  	
   

  	
  18

  
	
   

  	
  8.7

  	
  Litigation; Compliance with Laws

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER

  	
   

  	
  19

  
	
   

  	
  9.1

  	
  Correctness of Representations and Warranties

  	
   

  	
  19

  
	
   

  	
  9.2

  	
  Compliance with Conditions

  	
   

  	
  19

  
	
   

  	
  9.3

  	
  Corporate Resolution

  	
   

  	
  19

  

 

 i
 

 

	
  

  	
  9.4

  	
  Fannie Mae Waiver of Representations and Warranties

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER

  	
   

  	
  19

  
	
   

  	
  10.1

  	
  Correctness of Representations and Warranties

  	
   

  	
  19

  
	
   

  	
  10.2

  	
  Compliance with Conditions

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  SCHEDULE OF SERVICING

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  INDEMNIFICATION OF PURCHASER AND SELLER

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Indemnification of Purchaser

  	
   

  	
  20

  
	
   

  	
  12.2

  	
  Indemnification of Seller

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  MISCELLANEOUS

  	
   

  	
  22

  
	
   

  	
  13.1

  	
  Notification of Transfer

  	
   

  	
  22

  
	
   

  	
  13.2

  	
  Supplementary Information

  	
   

  	
  22

  
	
   

  	
  13.3

  	
  Further Assurances

  	
   

  	
  22

  
	
   

  	
  13.4

  	
  Access to Information

  	
   

  	
  22

  
	
   

  	
  13.5

  	
  Broker’s Fees

  	
   

  	
  22

  
	
   

  	
  13.6

  	
  Survival of Covenants, Agreements, Representations
  and Warranties

  	
   

  	
  23

  
	
   

  	
  13.7

  	
  Form of Payment to be Made

  	
   

  	
  23

  
	
   

  	
  13.8

  	
  Notices

  	
   

  	
  23

  
	
   

  	
  13.9

  	
  Waivers

  	
   

  	
  24

  
	
   

  	
  13.10

  	
  Entire Agreement

  	
   

  	
  24

  
	
   

  	
  13.11

  	
  Binding Effect

  	
   

  	
  24

  
	
   

  	
  13.12

  	
  Headings

  	
   

  	
  24

  
	
   

  	
  13.13

  	
  Applicable Laws

  	
   

  	
  24

  
	
   

  	
  13.14

  	
  Transfer Instructions

  	
   

  	
  25

  
	
   

  	
  13.15

  	
  Severability

  	
   

  	
  25

  
	
   

  	
  13.16

  	
  Written Agreement

  	
   

  	
  25

  
	
   

  	
  13.17

  	
  Default by Seller

  	
   

  	
  25

  
	
   

  	
  13.18

  	
  Default by Purchaser

  	
   

  	
  25

  
	
   

  	
  13.19

  	
  Dispute Resolution.

  	
   

  	
  25

  
	
   

  	
  13.20

  	
  Wire Instructions

  	
   

  	
  26

  
	
   

  	
  13.21

  	
  Counterparts Execution

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX I - MORTGAGE LOANS

  	
   

  	
  28

  
	
  APPENDIX II - ASSIGNMENT OF MORTGAGE LOANS

  	
   

  	
  29

  
	
  APPENDIX III - TRANSFER OF SERVICING

  	
   

  	
  30

  
	
  APPENDIX IV - TRANSFER INSTRUCTIONS

  	
   

  	
  31

  
	
  APPENDIX V - RESTRICTED MORTGAGE LOANS

  	
   

  	
   

  

 

 ii

AGREEMENT FOR PURCHASE
AND SALE

OF
SERVICING

THIS AGREEMENT FOR PURCHASE AND SALE OF SERVICING
(the “Agreement”) is dated as of the 15th day of June,
2007, between EVERBANK, a federal savings
association (“Purchaser”), whose address is 8100 Nations Way, Jacksonville,
Florida 32256, and NETBANK, a
federal savings association (“Seller”), whose mailing address is 9710 Two Notch
Road, Columbia, South Carolina 29223. 
All defined terms utilized herein shall have the meaning assigned
thereto in the Definitions below.

R E C I T A L S:

WHEREAS, Seller is the owner of
the Servicing for the Mortgage Loans; and

WHEREAS, Seller desires to sell,
transfer and assign to Purchaser all of its right, title and interest in and to
the Servicing for the Mortgage Loans and Purchaser desires to acquire and
assume all right, title and interest in and to the Servicing from Seller; and

NOW, THEREFORE, in consideration
of the mutual promises, covenants and conditions, and upon the terms and
subject to the conditions set forth herein, the parties hereto agree as
follows:

1.                                       DEFINITIONS.

For
purposes of this Agreement, the following terms shall have the following
meanings when used herein.  The terms
defined herein include the plural as well as the singular and the singular as
well as the plural.

“Accounts Receivable”.  Amounts due Seller by virtue of documented
advances made prior to the Sale and Transfer Date in connection with the
Servicing of the Mortgage Loans in accordance with Investor Guidelines or
FHA/VA regulations, as applicable and which are deemed recoverable by Purchaser
in accordance with this Agreement.

“Affiliate”.  With respect to any specified Person, any
other Person that directly, or indirectly through on or more intermediaries,
controls, is controlled by, or is under common control with the specified
Person.  For purposes of this definition,
the term “control” means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting stock, by contract or otherwise.

“Agreement”.  This Agreement and all attachments hereto, as
the same may from time to time be amended or supplemented by one or more
instruments executed by Seller and Purchaser.

“Ancillary Income”.  Late Mortgagor payment charges, charges for
dishonored checks (NSF Fees), pay-off fees, assumption fees, commissions
and administrative fees on insurance and similar fees and charges collected
from or assessed against the Mortgagor.

 3
 

“Applicable Requirements”.
As of the time of reference, with respect to the Mortgage Loans and the
Servicing, all of the following: (i) all contractual obligations of Seller and
any prior originator or servicers, including without limitation those
contractual obligations contained herein or in the Mortgage Loan documents for
which Seller or the servicer is responsible or at any time was responsible;
(ii) all applicable federal, state and local legal and regulatory requirements
(including statutes, rules, regulations and ordinances) binding upon Seller
and/or the servicer or any prior servicer; (iii) all other applicable
requirements and guidelines of each governmental agency, board, commission,
instrumentality and other governmental body or office having jurisdiction over
the Mortgage Loans; (iv) all other applicable judicial and administrative
judgments, orders, stipulations, awards, writs and injunctions; and (v) the
reasonable and customary mortgage servicing practices of prudent mortgage
lending institutions which service mortgage loans of the same type as the
Mortgage Loans in the jurisdiction in which the related mortgaged properties
are located.

“Bankruptcy”.  The Mortgagor under a Mortgage Loan has
sought protection under or is subject to continuing proceedings under the
bankruptcy or insolvency laws of the United States or any other similar laws of
general application for the relief of debtors.

 “Business
Day”.  Any day
other than (i) a Saturday or Sunday, or (ii) a day on which national banking
institutions are authorized or obligated by law or executive order to be
closed.

“Buy-Down Funds”.  The remaining amount of funds collected at
the closing of a Mortgage Loan to cover a portion of the mortgage payment for a
stated term and which are held by or on behalf of Seller.

“Closing Documents”.  This Agreement, the Assignment of the
Servicing of the Mortgage Loans attached hereto as Appendix II and the Transfer
of Servicing attached hereto as Appendix III.

“Excluded Mortgage Loans”.  A Mortgage Loan for which a foreclosure sale
has occurred.

“Fannie Mae”.  Federal National Mortgage Association.

 “FHA”.  Federal Housing Administration.

“Foreclosure”.  A Mortgage Loan where payment has been
accelerated and the Mortgage Loan has been referred to an attorney for
collection and enforcement proceedings or is in the process of liquidation
after the foreclosure sale.

“Freddie Mac”.  Federal Home Loan Mortgage Corporation.

“Holdback”.  Ten percent (10%) of the Purchase Price, less
any sums deducted therefrom pursuant to this Agreement.

“Insurer”.  Any insurer under any applicable hazard
insurance policy, any federal flood insurance policy, or any title insurance
policy.

“Investor”.  The beneficial owner of the Mortgage Loans
which shall include Fannie Mae and Freddie Mac and  more particularly described in the Mortgage
Loan Schedule.

 4
 

“Investor Approval”.  The written acknowledgment provided by an
Investor to Purchaser unconditionally approving the purchase and sale of the
Servicing.

“Investor Guidelines”.  Rules and regulations set forth by each Investor,
as outlined in their respective Selling and Servicing Guides or other published
or written rules and regulations, and as amended from time to time, including
project guidelines, setting forth the manner in which Mortgage Loans shall be
originated, underwritten, sold or serviced, excluding any special commitments.

“Litigation”.  A legal action in foreclosure of a Mortgage
Loan, or for a deficiency thereunder, in which the sale of the mortgaged
property in foreclosure (whether by action, power of sale, or otherwise) has
been delayed by reason of the defense of such action by the Mortgagor, or any
other action commenced or pending in court which involves the Mortgage Loan
(excluding class actions), and which action materially and adversely, in
Purchaser’s reasonable opinion, affects the Mortgagor’s obligation to make
payments under the Mortgage Loan or the enforceability or priority of the
Mortgage or results in a material increase in the cost to service the Mortgage
Loan.

“MERS”.  Mortgage Electronic Registration System®.

“MERS Loan”.  Each Mortgage registered on the MERS® System
and for which MERS is listed as the record mortgagee or beneficiary on the
related Mortgage or assignment thereof.

“MERS® System”.  The system of electronically recording
transfers of mortgages maintained by MERS.

“Mortgage”.   A security instrument, including without
limitation a mortgage or deed of trust, creating a first lien on real property
securing the payment of a Mortgage Note.

“Mortgage File”.  The file containing the photostatic and/or
imaged copies of Mortgage Loan Documents with respect to a Mortgage Loan, as
well as the credit and closing packages, disclosures, custodial documents, and
all other files, books, records and documents, all as called for pursuant to
the Transfer Instructions at Appendix IV to this Agreement and which are
required in accordance with Investor Guidelines.  All imaged files and/or documents shall be in
a format reasonably acceptable to Purchaser.

“Mortgage Loan”. Any
loan, evidenced by a Mortgage Note and secured by a Mortgage, described in the
Mortgage Loan Schedule and thereby subject to this Agreement.

“Mortgage Loan Documents”.  The original collateral documents as
specified in Section II.B.1 in the Transfer Instructions.

“Mortgage Loan Schedule”.  The schedule of Mortgage Loans attached
hereto as Appendix I, which has been prepared as of the close of business on
June 29, 2007.

“Mortgage Note”.  The evidence of indebtedness from a Mortgagor
to a lender which is secured by a Mortgage.

“Mortgagor”.  The obligor on a Mortgage Note.

 5
 

“Ninety (90) Days Delinquent”.
With respect to a Mortgage Loan, when three (3) regularly scheduled monthly
Mortgage Loan payments are due and unpaid. 
By way of example:  A Mortgage
Loan due and unpaid for the April 2007 payment as of the Sale and Transfer Date

“Offering Information”.            The information, data,
tapes and statements provided to Purchaser by Seller or Broker in the
preparation of Purchaser’s bid with respect to the Servicing.

 “Person”.  Any individual, corporation, partnership,
joint venture, association, limited liability company, joint-stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof.

“Pools”.  One or more Mortgage Loans that have been
aggregated pursuant to the requirements of the applicable Investor and have
been pledged to secure or support payments on specific securities.

“Purchase Price”.  The amount paid by Purchaser to Seller for
the Servicing of the Mortgage Loans, as provided in Paragraph 3 hereof, and as
subsequently adjusted pursuant to this Agreement.

“Purchaser’s Indemnified Matters”.  As defined in subparagraph 12.2 of this
Agreement.

“Recorded Assignments”.  All assignments of the Mortgage Loans,  notices of transfer or equivalent instruments
in recordable form sufficient under Investor Guidelines and the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the
transfer of the Mortgage Loan to the Purchaser, or if the related Mortgage has
been recorded in the name of MERS, such actions as are necessary to cause the
Purchaser as the owner of the related Servicing of the Mortgage Loan on the
records of MERS for purposes of the MERS® System.

“Recourse Obligation”.  Any obligation with respect to any Mortgage
Loan in any master commitment or pool purchase contract, whether described as a
limited or full repurchase requirement, limited or full recourse, credit
support reimbursement or other obligation, indemnification, loss sharing
arrangement or otherwise which would subject the servicer of such Mortgage Loan
to losses on the liquidation of such Mortgage Loan or which would entitle the
Investor to demand the repurchase of a Mortgage Loan for any reason except for
standard repurchase requirements in accordance with Investor Guidelines as a
result of origination errors and/or servicing errors occurring prior to the
Sale and Transfer Date.  The fact that
any of the Mortgage Loans may have been classified by an Investor as “non-recourse”
because of the existence of any pool insurance policy shall not, for purposes
of this Agreement, remove any such Mortgage Loan from the definition of
Recourse Obligation.

“Related Escrow Accounts”.  Segregated trust accounts maintained by
Seller in accordance with Investor Guidelines and established to hold funds for
principal and interest, taxes and insurance in escrow pursuant to the terms of
the Mortgage Loans.

“Sale and Transfer Date”.  The date on which the ownership of the
Servicing and other assets specified herein are transferred to Purchaser and
date on which Purchaser assumes the obligations for Servicing the Mortgage
Loans in accordance with Investor Approvals, which shall be the open of
business on July 2, 2007, unless extended in writing by Seller and Purchaser.

“Seller’s Indemnified Matters”.  As defined in subparagraph 12.1.

 6
 

“Servicing”.  With respect to the Mortgage Loans (a) the
management of operational functions related to servicing each Mortgage Loan
including without limitation (i) the collection and disbursement of funds being
held in escrow to pay taxes, insurance and other items as they become due, (ii)
the collection and remittance of principal and interest payments in accordance
with Investor Guidelines, and (iii) the resolution of defaulted loans in accordance
with Investor Guidelines, (b) the right to all service fees, Ancillary Income,
the value of Related Escrow Accounts, the right to solicit the Mortgagors for
other services and all other customary rights related to servicing the Mortgage
Loans, and (c) the title to all Mortgage Files and other related records.

 “Tax
Identification Number”. 
The number used by the Internal Revenue Service to identify a taxpayer
for income tax reporting purposes.

“Third Party Originated Loans”.  Mortgage Loans originated by a lender other
than Seller.

 “Transfer Instructions”.  The Transfer Instructions attached hereto as
Appendix IV.

“Transferred Assets”.  Collectively, the Servicing, Accounts
Receivable, Mortgage Files and Buy-Down Funds.

“VA”.  Veteran’s Administration, or any successor
thereto.

2.                                       SALE AND TRANSFER OF SERVICING.

2.1                                 Sale.

Subject to, and upon the
terms and conditions of this Agreement, Seller shall, on the Sale and Transfer
Date, sell, convey, transfer, assign and deliver to Purchaser and Purchaser
shall purchase, assume and accept all right, title and interest of Seller, as
of the Sale and Transfer Date, in and to the Transferred Assets.

Purchaser
will assume only those contractual duties, obligations and liabilities of
Seller which prospectively and directly relate to Purchaser’s acquisition,
ownership and performance of the Servicing, and Purchaser will not assume or
otherwise be responsible for, in any way whatsoever, any other duties,
obligations and liabilities of, or claims against, Seller or its shareholders
(or any of their respective, agents, officers, directors, trustee, or
Affiliates), with respect to the Servicing or otherwise.

2.2                                 Investor Approval.  The purchase and sale of the Servicing are
subject to Investor Approval.  If Seller
fails, for whatever reason, to obtain written approval from any Investor by no
later than the Business Day prior to the Sale and Transfer Date, Purchaser
shall have the option to terminate this Agreement.

2.3                                 Transfer Documents.  On the Sale and Transfer Date, Seller shall
execute and deliver to Purchaser (a) the Assignment of Servicing of the
Mortgage Loans attached hereto and made a part hereof as Appendix II and (b)
the Transfer of Servicing attached hereto and made a part hereof as Appendix
III.  Prior to the Sale and Transfer
Date, Purchaser and Seller shall execute and deliver any documents required by
the Investors in connection with the transfer of the Transferred Assets
hereunder, in form and substance reasonably satisfactory to Purchaser and
Seller, and shall execute and deliver such other instruments or documents as
Purchaser and Seller shall reasonably determine are necessary to consummate the
transactions contemplated hereby.

 7
 

3.                                       CONSIDERATION.

3.1                                 Purchase Price.  In full consideration for the sale of the Transferred
Assets and upon the terms and conditions of this Agreement, Purchaser shall pay
to Seller (in accordance with subparagraph 3.3), an amount equal to the
following:

(a)                                  As
to Mortgage Loans which are not (i) Restricted Mortgage Loans or (ii) Excluded
Mortgage Loans, the aggregate outstanding principal balance of such Mortgage
Loans as of the Sale and Transfer Date, multiplied by0.882% (0.00882). All of
the above determinations shall be made based upon the status of each Mortgage
Loan on the Sale and Transfer Date.

(b)                                 As
to Restricted Mortgage Loans which are not Excluded Mortgage Loans, the
aggregate outstanding principal balance of such Restricted Mortgage Loans, as
of the close of business on the Sale and Transfer Date, multiplied by0.732%
(0.00732). All of the above determinations shall be made based upon the status
of each Restricted Mortgage Loan on the Sale and Transfer Date.

(c)                                  The
Purchase Price due and payable under this Agreement shall be reduced by an
amount equal to $300.00 for each Excluded Mortgage Loan.

3.2                                 Accounts Receivable.  Within five (5) Business Days after Purchaser
receives documentation which is reasonably satisfactory to it as to Accounts
Receivable on the Mortgage Loans transferred to Purchaser, Purchaser shall pay
such documented amount to Seller. 
Accounts Receivable which are not considered by Purchaser to be
recoverable (by way of example, Accounts Receivable considered to be
unrecoverable shall include property inspections, default related advances on
Mortgage Loans Ninety (90) Days Delinquent or less, advances on Mortgage Loans
past Foreclosure sale, advances without proper supporting documentation or any
advance  not in accordance with Investor
Guidelines), will be reimbursed on a monthly basis only if and when recovered
by Purchaser and shall be pursued by Purchaser with the same diligence and
standard of care that it would use if it were pursuing for its own account.

3.3                                 Payment of the Purchase Price; Holdback.

Subject to the conditions
precedent set forth in Paragraph 9 of this Agreement, the Purchase Price shall
be due and payable as follows:

(a)                                  Within
four (4) Business Days after the Sale and Transfer Date, Purchaser shall pay to
Seller a sum equal to ninety percent (90%) of the Purchase Price.

(b)                                 The
balance of the Purchase Price, which is represented by the Holdback, shall be
paid as herein provided; (i) fifty percent (50%) of the Holdback shall be paid
to Seller upon Seller’s completion in all material respects of the delivery
requirements set forth in the Transfer Instructions and Purchaser’s receipt of
seventy-five percent (75%) of the Recorded Assignments, (ii) the remaining
balance of the Holdback, less $300,000.00, will be paid to Seller upon
Purchaser’s receipt of ninety-five percent (95%) of the Recorded Assignments,
and (iii) the balance of the Holdback will be paid to Seller upon Seller’s
completion of all delivery requirements set forth in this Agreement.  Notwithstanding the foregoing, Purchaser may
elect to withhold such portion of the Holdback as Purchaser determines, in good
faith, is equivalent to the out-of-pocket damages and expenses it expects to
sustain if any of Seller’s representations and warranties are found to be
untrue in any material respect or if Seller has otherwise materially defaulted
under this Agreement and Seller has been placed on written notice of such
misrepresentation or default, and as of the date such 

 8
 

payment of the
Holdback is due, such default or defaults have not been cured to the reasonable
satisfaction of Purchaser. Provided, however, Purchaser shall fund the Holdback
or such portion thereof as is due to Seller at such time as the
misrepresentations or defaults have been cured.

(c)                                  Any
amounts owed to Purchaser by Seller due to Buy-Down Funds or Related Escrow
Accounts shall be transferred to Purchaser by Seller by wire transfer of
federal funds within three (3) Business Days after the Sale and Transfer Date,
based upon the certification of Seller to Purchaser as provided in paragraph 11
herein.

(d)                                 If,
within six (6) months after the Sale and Transfer Date, the outstanding
principal balance of any of the Mortgage Loans is found to be in error, or if
for any reason the Purchase Price or such other amounts is found to be in
error, the party benefiting from the error shall pay an amount sufficient to
correct and reconcile the Purchase Price or such other amounts and shall
provide a reconciliation statement and other such documentation to reasonably
satisfy the other party concerning the accuracy of such reconciliation.  Such amounts shall be paid by the proper
party within ten (10) Business Days from receipt of satisfactory written
verification of amounts due.

4.                                       COVENANTS OF PURCHASER.  Purchaser covenants and agrees with Seller as
follows:

(a)                                  Performance of Obligations.  Purchaser shall, subject to the terms and
conditions of this Agreement, pay, perform and discharge or cause to be paid,
performed, and discharged all of the obligations relating to the Servicing and
Related Escrow Accounts assigned to Purchaser from and after the Sale and
Transfer Date. Purchaser further agrees to accept and assume such obligations
relating to the Servicing and the Mortgage Loans as shall be required by the
Investors and as provided in the agreements and documents executed by the
parties pursuant to subparagraph 2.3 of this Agreement.

(b)                                 Non Solicitation.  Purchaser acknowledges that (i) certain of the Mortgage
Loans identified on Appendix V hereto (the “Restricted Mortgage Loans”) are
subject to a separate agreement by and between Seller and ICBA Mortgage
Corporation (“ICBA”) and (ii) as a condition to Seller obtaining the consent of
ICBA to the sale contemplated under this Agreement, Purchaser or any of its
affiliates, except as set forth below, shall not (a) transfer or sell the
Servicing of the Restricted Mortgage Loans unless required by law, or an order,
decree, ruling, directive or instruction of any governmental, regulatory,
accounting, tax or licensing agency, body or authority or without the consent
of ICBA which shall not be unreasonably withheld , (b) solicit Mortgagors of
Restricted Mortgage Loans for any purposes, including, but not limited to, for
financial services, insurance coverage or prepayment of Restricted Mortgage
Loans, on a targeted basis.  Without the
prior written consent of ICBA, Purchaser shall not sell or distribute any
customer list incorporating the names of Mortgagors of Restricted Mortgage
Loans and shall not itself use any such list to solicit or promote, or to allow
any other person on behalf of Purchaser to solicit or promote, the sale of any
services or products to any such Mortgagor. The foregoing restrictions shall
not apply to: (i) any advertising or marketing campaign by or on behalf of the
Purchaser offering financial services, including mortgages or insurance-related
products and services, directed to its own customer base or the general public
or any segment thereof provided such segment does not target the Mortgagors of
Restricted Mortgage Loans; (ii) a solicitation for financial services to any
such Mortgagor with whom Purchaser has a customer relationship unrelated to the
Restricted Mortgage Loan; provided that such solicitation is part of a
solicitation program not directed primarily to such Mortgagors; (iii) any
activities directly related to the servicing of the Restricted Mortgage Loans,
including ACH and other electronic payment services for the payment of the
Restricted Mortgage Loans; and (iv) responding to an inquiry from any such
Mortgagor relating to a refinance or a request for information pertaining to a
mortgage loan product.

 9
 

5.                                       COVENANTS OF SELLER.  Seller covenants and agrees with Purchaser as
follows:

(a)                                  Remaining Obligations.  Seller shall pay, perform or discharge all of
its liabilities and obligations accruing before the Sale and Transfer Date
relating to the Servicing, the Related Escrow Accounts and the Mortgage Loans,
to the extent the same are unpaid or unfulfilled on the Sale and Transfer Date
and except as expressly assumed by Purchaser pursuant to the terms hereof.

(b)                                 Servicing Income.  All monies received by Seller after the Sale
and Transfer Date relating to the Mortgage Loans and the Accounts Receivable
shall be promptly turned over to Purchaser and all servicing fees and Ancillary
Income accruing after the Sale and Transfer Date with respect to the Servicing
shall inure to the benefit of Purchaser.

(c)                                  Correction of Material Errors.  Seller shall, at the request of Purchaser,
make a good faith effort and diligently pursue the correction of any material
errors or deficiencies in any of the Mortgage Loans or related loan
documentation, which errors or deficiencies existed as of the Sale and Transfer
Date.  For purposes of this provision, “material”
shall refer to errors or deficiencies which are required to be corrected by the
Investors.  Purchaser shall reasonably
cooperate in good faith with Seller in connection with any such effort.

(d)                                 Assignment and Transfer.  Unless previously recorded in the Investor’s
name or MERS, as evidenced of record in the Mortgage File, Seller shall, at its
expense, cause to be prepared, executed, and, where applicable, record all
documents necessary to legally transfer and assign all right, title and
interest in and to the Servicing of the Mortgage Loans from Seller to MERS
including, without limitation, the Mortgage Note endorsements and the Recorded
Assignments.  Seller shall provide a
special purpose resolution authorizing those officers of Purchaser to sign such
documents on Seller’s behalf.  Seller
shall be responsible for obtaining and shall pay the cost of securing the
approval of the Investors, including payment of any investor fees, sub-servicer
fees or transfer fees due.  In addition,
Seller shall pay any costs related to (i) obtaining the release of the Mortgage
Loan Documents from the Seller’s custodian of the Mortgage Loans, (ii) the cost
of shipping the Mortgage File and related Mortgage Loan documentation to
Purchaser or a custodian designated by Purchaser, and (iii) obtaining and
delivering complete master file tape information and any other electronically
stored information.

(e)                                  Tax Payments.  Provided the tax bill has been released by
the taxing authority prior to the Sale and Transfer Date, Seller shall pay to
Purchaser any penalty charges or the amount of any discounts lost as a result
of a failure to pay tax bills which are due and payable on or before the Sale
and Transfer Date or thirty (30) days subsequent thereto, which are
subsequently incurred by Purchaser.

(f)                                    Defects. If any Mortgage Loan,
including the Related Escrow Account for such Mortgage Loan, is found defective
or deficient in accordance with Investor Guidelines or such defect or
deficiency limits the Purchaser’s ability to properly service the Mortgage
Loan, other than a servicing error by Purchaser after the Sale and Transfer
Date, Seller shall upon written notification by Purchaser (i) correct or cure
the defect to the reasonable satisfaction of Purchaser and/or Investor within
thirty (30) days or such time period allowed by the Investors, or if such
defect cannot be cured within such time period, and (ii) hold harmless and
indemnify Purchaser from any and all claims, demands, liabilities or actual
out-of-pocket losses incidental thereto including reasonable attorney’s fees
and costs.

 10
 

(g)                                 Casualty Loss.  Seller shall be liable for any actual
out-of-pocket loss incurred by Purchaser as the result of a casualty loss to
any property subject to a Mortgage Loan where the loss occurs either prior to
or on the Sale and Transfer Date for such Mortgage Loan, if such loss is the
direct result of the expiration of any such insurance policies prior to the
Sale and Transfer Date or is due to the insufficiency (in accordance with
Investor Guidelines) of any such insurance coverage.  Further, if any insurance coverage is
insufficient in accordance with Investor Guidelines, Seller warrants to
Purchaser that the costs incurred for providing such insurance are secured by
the Mortgage Loan and payable by the Mortgagor under the Mortgage Loan.  In the event there is no evidence of insurance
coverage on any Mortgage Loan as of the Sale and Transfer Date for such
Mortgage Loan, Seller shall provide such evidence within five (5) days of
written request by Purchaser or shall be responsible for the cost of Purchaser’s
obtaining the necessary insurance coverage to the extent such costs are not
otherwise due, collectible, and payable by the Mortgagor under the Mortgage
Loan.

(h)                                 No Solicitation or Refinancing.
After the Sale and Transfer Date, neither Seller nor any Affiliate, parent,
subsidiary, sub-servicer, or agent of Seller (the “Related Parties”) shall,
during the remaining term of any of the Mortgage Loans, (a) use information
derived from the origination, sale, or servicing of the Mortgage Loans to
refinance any Mortgage Loan, or (b) solicit in any manner any of the Mortgagors
of the Mortgage Loans for the purpose of refinancing or the sale of any other
products.  For purposes of this
subparagraph, advertising directed to (i) the general public, and (ii) mailings
to parties whose names were obtained through commercially available mailing
lists shall not be deemed to be a prohibited solicitation.  Seller shall not direct any promotion or
creations of a mass mailing list nor shall Seller use a mass mailing list
prepared where such mailing list is structured to target Mortgagors of the
Mortgage Loans.

In the event
Seller or the Related Parties violate the above covenant, Seller shall, upon
demand by Purchaser, pay to Purchaser a sum equal to the Purchase Price paid by
Purchaser for the Servicing of each Mortgage Loan which Seller or Related
Parties has refinanced for a period of time three (3) months before the
violation and three (3) months after the violation.  Provided that such violation is within three (3)
months of the Sale and Transfer Date, Purchaser shall receive a full six (6)
months protection from the Seller as to any violation.

(i)                                     Investor Reports/Remittances.  Seller has filed, on a timely basis, all
reports and remittances required by Investor Guidelines.  As of the Sale and Transfer Date, Seller will
be in compliance with all applicable federal, state and municipal laws,
regulations and ordinances affecting the Servicing of the Mortgage Loans.
Seller shall report the interest payments of the Mortgagors under the Mortgage
Loans and other related payments and disbursements made during the period prior
to the Sale and Transfer Date, during which period Seller serviced or
sub-serviced the Mortgage Loans.  Seller
shall be responsible for providing Purchaser with accurate Tax Identification
Numbers on all of the Mortgagors of the Mortgage Loans.

(j)                                     Investor Approval.  The sale and assignment of Servicing under
this Agreement is subject to the consent and approval of the Investors.  Seller agrees to (i) pay all costs and fees
relating to obtaining such approval, and (ii) use due diligence to obtain such
approval.  Purchaser will assist Seller
and complete any documentation and supply any information reasonably required
in order to obtain the approval of the Investors.  If the unconditional consent of an Investor
is not timely received or within such later date as Purchaser may approve in
writing, or if such consent is given only upon terms which are not reasonably
acceptable to Purchaser, then Purchaser may elect to terminate this Agreement, or
to exclude the Mortgage Loans for which Investor Approval was not obtained with
a commensurate reduction in the Purchase Price. 
In the event Purchaser elects to terminate this Agreement as provided
above, Purchaser will provide written notice to Seller.  Within three (3) Business Days after notice
of termination is given by Purchaser, Seller shall 

 11
 

repurchase the
Servicing from Purchaser and shall immediately pay to Purchaser the Purchase
Price which Purchaser has paid to Seller together with any unreimbursed
advances incurred by Purchaser.  In the
event Investor consent is not granted due to the acts, errors or omissions of a
party hereto, then such party shall reimburse the party not at fault for its
unreimbursed costs and expenses associated with this Agreement, including its
reasonable attorney’s fees and costs.

(k)                                  Optional Insurance Premiums.  If, at any time after the Sale and Transfer
Date, Purchaser determines that Seller received unearned optional insurance
premiums from any Mortgagor, Seller shall, upon written demand from Purchaser
reimburse Purchaser therefor within ten (10) days after Purchaser’s written
request for such reimbursement.

(l)                                     Tax and Flood Reporting Service.  Seller shall, at its expense, provide
Purchaser with transferable full service lifetime tax and flood servicing
contracts with First American Real Estate Tax Service on all Mortgage
Loans.  Seller shall pay all costs, if
any, associated with transferring such contracts to Purchaser.

(m)                               Master Commitments.  Seller shall make available to Purchaser,
upon request, copies of all commitments under which the Mortgage Loans were
sold to the Investors.

(n)                                 ARM Adjustments.  Seller shall audit all Mortgage Loans prior
to the Sale and Transfer Date and shall make all appropriate rate and payment
adjustments to each Mortgage Note prior to the Sale and Transfer Date.

(o)                                 Custodial Account Adjustments.  On or before the Sale and Transfer Date,
Seller shall correct and fund all cash and collateral deficiencies with respect
to the custodial accounts as required by Investor Guidelines.

(p)                                 Mortgage Loans in Litigation.  On or before ten (10) Business Days prior to
the Sale and Transfer Date, Seller shall disclose to Purchaser, in writing, all
Litigation relating to any Mortgage Loan.

6.                                       POST CLOSING REQUIREMENTS.  Seller agrees to complete the following
subsequent to the Sale and Transfer Date:

(a)                                  Assignments.  As provided for in subparagraph 5(d), Seller
shall be responsible for preparing and delivering all documents necessary to
legally transfer and assign all right, title and interest in and to the
Servicing of the Mortgage Loans, including the Recorded Assignments.  With respect to any Mortgage Loan that is not
a MERS Loan, Seller shall send the Recorded Assignments for recording within ten
(10) Business Days after the Sale and Transfer Date. Seller shall diligently
pursue obtaining the Recorded Assignments and shall deliver same to Purchaser
immediately upon receipt.

(b)                                 Documentation.  Seller shall diligently pursue obtaining all
documentation required for the due transfer of the Servicing to Purchaser and
for delivering such documentation to Purchaser within the prescribed time
limits set forth in the Investor Guidelines.

(c)                                  Delivery.  Seller shall deliver, or cause to be
delivered to Purchaser within two (2) days after the Sale and Transfer Date,
all Mortgage Files.

 12
 

7.                                       REPRESENTATIONS AND WARRANTIES OF SELLER.

The
representations and warranties of Seller contained in this Agreement shall
continue and survive the purchase of the Servicing and the delivery and
assignment to Purchaser of such Servicing and shall inure to the benefit of
Purchaser, its successors and assigns. 
Purchaser is purchasing, and any subsequent transferee or assignee will
assume or purchase, the Servicing in reliance on the truth and accuracy of each
such representation or warranty.  In
addition to representations and warranties made elsewhere in this Agreement,
Seller represents and warrants to Purchaser, as of the Sale and Transfer Date,
as follows:

7.1                                 Due Incorporation and Good Standing.  Seller is a federally chartered savings
association, validly existing and in good standing under the laws of the United
States.  Seller has in full force and
effect (without notice of possible suspension, revocation or impairment) all
required qualifications, permits, approvals, licenses, and registrations (or is
exempt from same) to conduct all activities in all states in which its
activities with respect to the Mortgage Loans or the Servicing require it to be
qualified or licensed.

7.2                                 Authority and Capacity.  Seller has all requisite corporate power,
authority and capacity to execute and deliver this Agreement and to perform all
of its obligations hereunder.  Seller
does not believe, nor does it have any cause or reason to believe, that it
cannot perform each and every covenant contained in this Agreement.

7.3                                 Effective Agreement.  The execution, delivery and performance of
this Agreement by Seller and consummation of the transactions contemplated
hereby and thereby have been or will be duly and validly authorized by all
necessary corporate, shareholder or other action.  This Agreement has been duly and validly
executed and delivered by Seller, and this Agreement is a valid and legally
binding agreement of Seller enforceable against Seller in accordance with its
respective terms, subject to applicable insolvency, bankruptcy, reorganization,
moratorium, or similar laws and principles of equity.  Any requisite consents or approvals of third
parties (including the Investors and any other applicable regulatory
authorities) to the execution and delivery of this Agreement or the performance
of the transactions contemplated hereby by Seller have been or will be obtained
prior to the Sale and Transfer Date or such other earlier date as expressly
provided herein.

7.4                                 No Conflict.  Neither the execution and delivery of this
Agreement nor the consummation of the transaction contemplated hereby, nor
compliance with its respective terms and conditions, shall (a) violate,
conflict with, result in a material breach of, constitute a default under any
of the terms, conditions or provisions of the Articles of Incorporation or By-Laws
or any similar corporate or organizational documents of Seller, or other
agreement or instrument to which Seller is now a party or by which Seller is
bound, or of any law, ordinance, rule or regulation of any governmental
authority applicable to Seller, or of any order, judgment or decree of any
court or governmental authority applicable to Seller, or (b) result in the creation
or imposition of any lien, charge or encumbrance of any nature upon, the
Servicing or any of the Mortgage Loans or the properties or assets of Seller.

7.5                                 Approvals and Compliance.  Seller is approved and in good standing with
the Investors.  Seller is not in default
with respect to Seller’s obligations under Investor Guidelines, and Seller is
in compliance in all material respects with all applicable laws, regulations,
rules and requirements (including, without limitation, the rules, regulations
and requirements of the Investors, to the extent applicable) relating to the
Servicing.

 13
 

7.6                                 Filing of Reports.  Seller has filed all reports required by the
Investors with respect to the Mortgage Loans and the Servicing, and Seller has
complied in all material respects with federal, state and municipal laws,
regulations and ordinances affecting the Mortgage Loans and the Servicing.  Seller has filed all IRS Forms, as
appropriate, which are required to be filed with respect to the Servicing.

7.7                                 Related Escrow Accounts.  All Related Escrow Accounts required to be
maintained by Seller have been established and continuously maintained in
accordance with Applicable Requirements. Except as to payments which are past
due under the Mortgage Loans, all Related Escrow Account balances required by
the Mortgage Loans and paid to Seller for the account of the Mortgagors under
the Mortgage Loans are on deposit in the appropriate Related Escrow
Accounts.  Within the last twelve (12)
months, Seller has analyzed the payments required to be deposited into the
Related Escrow Account and adjusted the payment thereto in order to eliminate
any deficiency it may have discovered.

7.8                                 Accounts Receivable.  The Accounts Receivable are valid and
subsisting accounts owing to Seller, are carried on the books of Seller at
values determined in accordance with generally accepted accounting principles
and are not subject to any set-offs or claims of the account debtor
arising from acts or omissions of, or otherwise known to, Seller.

7.9                                 The Mortgage Loans.

(a)                                  Investor Requirements.  Each Mortgage Loan conforms in all material
respects to the requirements and specifications of the Investors.

(b)                                 Enforceability of Mortgage Loan.  The Mortgage Note and the related Mortgage
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 and the
Mortgage had legal capacity to execute the Mortgage Note and the Mortgage and
each Mortgage Note and Mortgage have been duly and properly executed by such
parties.  None of the Mortgage Loans are
subject to any right of rescission, set-off, counterclaim or defense,
including 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, or subject to any right of rescission, set-off, counterclaim or
defense, including the defense of usury, and no such right of rescission, set-off,
counterclaim or defense has been asserted with respect thereto.

(c)                                  Disbursement.  The full original principal amount of each
Mortgage Loan (net of any discounts) has been fully advanced or disbursed to
the Mortgagor named therein, there is no requirement for future advances and
any and all requirements as to completion of any on-site or off-site
improvements and as to disbursements of any escrow funds therefor have been
satisfied.  All costs, fees and expenses
incurred in making, closing or recording the Mortgage Loan were paid.  There is no obligation on the part of Seller,
or of any other party, to make supplemental payments in addition to those made
by the Mortgagor.

(d)                                 Priority of Lien.  Each Mortgage Loan has been duly acknowledged
and recorded and is a valid and subsisting first lien and the mortgaged
property is free and clear of all encumbrances and liens having priority over
the lien of the Mortgage Loan, except for (i) liens for real estate taxes and
special assessments not yet due and payable, (ii) covenants, conditions and
restrictions, rights of way, easements and other matters of the public record
as of the date of recording, acceptable to mortgage lending institutions
generally and (iii) other matters to which like properties are commonly subject
which do not materially interfere with the benefits of the security intended to
be provided by the Mortgage Loan or the use, enjoyment, 

 14
 

value or
marketability of the related mortgaged property.  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 law could give rise to such lien) affecting the
mortgaged property which are or may be liens prior to, or equal or coordinate
with, the lien of the Mortgage Loan.  A
valid mortgagee’s title policy or attorney’s opinion letter which meets
Investor Guidelines has been issued and is and shall remain in full force and
effect for each such Mortgage Loan in an amount not less than the original
principal amount of such Mortgage Loan, which title policy insures that the
related Mortgage Loan is a valid first lien on the mortgaged property therein
described and that the mortgaged property is free and clear of all encumbrances
and liens having priority over the lien of the Mortgage Loan, subject to the
exceptions set forth in this subparagraph, and otherwise in compliance with the
requirements of the Investors and the applicable insurer.  All tax identifications and property
descriptions are legally sufficient; tax segregation, where required, has been
completed.  The failure of Seller or any
servicer to have recorded intervening assignments of the Mortgage Loan will not
cause a delay in the subsequent release of any Mortgage Loan or otherwise
subject Purchaser to any liabilities or costs.

(e)                                  No Default/No Waiver.  There is no default, breach, violation or
event of acceleration (except as disclosed by Seller to Purchaser prior to the
Sale and Transfer Date) existing under any Mortgage Loan, 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 Seller has not waived any default, breach, violation or event
of acceleration.  The terms of the
Mortgage Loan have in no way been waived, impaired, changed or modified, except
by written instrument which has been recorded, if necessary, and approved by
the applicable Investor.  Seller has not
advanced its funds to cure a default or delinquency with respect to any such
Mortgage Loans, except for escrowed items.

(f)                                    Application of Funds.  All payments received by Seller or any prior
servicer with respect to any Mortgage Loans have been remitted and properly
accounted for as required by Applicable Requirements.  All funds received by Seller or any prior
servicer in connection with the satisfaction of Mortgage Loans, including but
not limited to foreclosure proceeds and insurance proceeds from hazard losses,
have been deposited in the appropriate principal and interest account or taxes
and insurance account included among the Related Escrow Accounts, and all such
funds have been applied to reduce the principal balance of the Mortgage Loans
in question, or for reimbursement of repairs to the mortgaged property or as
otherwise required by Applicable Requirements or are and will be in one of the
Related Escrow Accounts on the Sale and Transfer Date.  The unpaid balances of the Mortgage Loans are
as stated in the Mortgage Files to be delivered to Purchaser.

(g)                                 Compliance with Laws.  Seller and any other party originally named
as payee under the Mortgage Notes have complied with every applicable federal,
state, or local law, statute, and ordinance, and any rule, regulation, or order
issued thereunder, pertaining to the subject matter of this Agreement,
including, without limitation, real estate settlement procedures, anti-predator
laws, fair credit reporting, and every other prohibition against unlawful
discrimination or governing consumer credit, and also including, without
limitation, the Consumer Credit Reporting Act, Equal Credit Opportunity Act of
1975 and Regulation B, Fair Credit Reporting Act, Truth in Lending Law, in
particular, Regulation Z as amended, the Flood Disaster Protection Act of 1973,
and state consumer credit codes and laws. 
Each party originally named as payee under the Mortgage Notes and as
mortgagee under the related Mortgage Loan was qualified to do business, and had
all requisite licenses, permits and approvals, in the state in which the
applicable mortgaged properties are located as well as the states in which such
notes or mortgages were executed.

(h)                                 Taxes.  All taxes, governmental assessments,
insurance premiums, water, sewer and municipal charges, leasehold payments,
ground rents relating to the Mortgage Loans have been paid by Seller as
required pursuant to Applicable Requirements and as herein provided.

 15
 

(i)                                     Insurance.  All mortgaged properties are currently
insured against loss by fire, hazards or extended coverage insurance policies
in accordance with Applicable Requirements and in an amount at least equal to
the outstanding principal balance of the applicable Mortgage Loans or, where
applicable, carry a sufficient amount of guaranteed replacement cost coverage unless
prohibited by applicable state law.  If
required by the Flood Disaster Protection Act of 1973, each such property is
covered by a flood insurance policy in an amount not less than the lesser of
(i) the outstanding principal balance of the applicable Mortgage Loan, or (in)
the maximum amount of insurance that is available under such Act.  All such insurance policies are in full force
and effect, and all premiums with respect to such policies have been paid.  With respect to each FHA Mortgage Loan, the related
FHA insurance is in full force and effect. 
With respect to each VA Mortgage Loan, the related VA guaranty is in
full force and effect.  All necessary
steps have been taken to keep such guaranty or insurance valid, binding and
enforceable as of the Sale and Transfer Date.

(j)                                     Damage; Condemnation.  There exists no physical damage to the
mortgaged property from fire, flood, windstorm, earthquake, tornado, hurricane
or any other similar casualty, which physical damage would cause any Mortgage
Loan to become delinquent or adversely affect the value or marketability of any
Mortgage Loan, the Servicing or the mortgaged property or the eligibility of
the Mortgage Loan for insurance benefits, or the amount of insurance benefits,
by any Insurer.  To the best of Seller’s
knowledge, there is no proceeding pending for the total or partial condemnation
of, or eminent domain with respect to, the mortgaged property.

(k)                                  Pools.  All pools relating to the Mortgage Loans have
been initially certified, finally certified and/or re-certified in accordance
with Applicable Requirements and Investor Guidelines.  All Pools relating to the Mortgage Loans
shall be, when transferred to Purchaser, eligible for recertification by
Purchaser’s custodian, and Seller will be responsible for curing any
deficiencies, unless caused by Purchaser, that must be cured in order for
Purchaser to obtain such recertification. 
The principal balance outstanding and owing on the Mortgage Loans in
each pool equals or exceeds the amount owing to the corresponding security
holder of such pool.

(l)                                     Mortgage File.  The Mortgage File contains each of the
documents and instruments specified to be included therein and required to be
maintained by the Investors, duly executed and in due and proper form.  Each such document or instrument is genuine
and in form acceptable to the Investor and the information contained therein is
true, accurate and complete in all material respects.

(m)                               Good Title.  The sale, transfer and assignment by Seller
to Purchaser of the Servicing, and the instruments required to be executed by
Seller and delivered to Purchaser pursuant to Investor Guidelines or other
contractual provisions, are, or will be on the Sale and Transfer Date, valid
and enforceable in accordance with their terms and will effectively vest in
Purchaser good and marketable title to the Servicing, free and clear of any and
all liens, claims, or encumbrances, except for those encumbrances required by
Investors’ rules and regulations.  Seller
has not previously assigned, transferred or encumbered the Servicing.  Except as permitted under Investor
Guidelines, there are no contracts affecting the Mortgage Loans or the
Servicing to which Purchaser will be bound and no other party has any interest
in the Mortgage Loans or the Servicing.

 16
 

(n)                                 Origination, Sale and Collection Practices.  The origination, sale and collection
practices used by Seller or any prior originator or servicer with respect to
each Mortgage Loan have been in all material respects legal, proper, prudent and
customary in the mortgage lending business and consistent with Applicable
Requirements.  With respect to escrow
deposits and payments in those instances where such were required, there exist
no deficiencies in connection therewith for which customary arrangements for
repayment thereof have not been made, and no escrow deposits or payments or
other charges or prepayments due to the Mortgagor have been capitalized under
any Mortgage Loan or the related Mortgage Note.

(o)                                 Hazardous Material.  To the best of Seller’s knowledge, no
hazardous material, including oil and asbestos, is present on, in, at or under
the mortgaged property securing a Mortgage Loan such that (a) the value of such
mortgaged property is materially and adversely affected, or (b) under applicable
federal, state or local law, (i) such hazardous material would be required to
be eliminated before such mortgaged property could be altered, renovated,
demolished or transferred or (ii) the presence of such hazardous material would
(upon action by the appropriate governmental authorities) subject the owner of
such mortgaged property, or the holder of a security interest therein, to
liability for the cost of eliminating such hazardous material or the hazard
created thereby.

7.10                           Insurance.  Error and omissions and fidelity insurance
coverage, in amounts as required by the Investors, is in effect with respect to
Seller and will be maintained until the transactions contemplated by this
Agreement has been consummated in accordance with the terms hereof.

7.11                           Litigation.  There is no litigation, claim, demand,
proceeding or governmental investigation existing or pending, or to the
knowledge of Seller, threatened, or any order, injunction or decree
outstanding, against or relating to Seller that could have a material adverse
effect upon the Servicing being purchased by Purchaser hereunder with respect
to any Mortgage Loan or the performance by Seller of its obligations under
Investor Guidelines, or result in loss or liability to Purchaser, nor does
Seller know of any basis for any such litigation, claim, demand, proceeding, or
governmental investigation.

7.12                           No Accrued Liabilities.  There are no accrued or contingent
liabilities of Seller with respect to the Mortgage Loans or Servicing or
circumstances under which such accrued or contingent liabilities will arise
against Purchaser, with respect to occurrences prior to the Sale and Transfer
Date.

7.13                           Offering Information.  The Offering Information was true and correct
in every material respect as of the date such materials were furnished to
Purchaser.  The trial balances utilized
in the computation of the payments of the Purchase Price are true and correct
in all material respects.

7.14                           Facts and Omissions.  All of the representations and warranties of
Seller in this Agreement or furnished to Purchaser in any instrument or
document in connection herewith, including, without limitation, the Offering
Information, (which instruments or documents shall be deemed to be a part of
this Agreement) are true in all material respects as of the date of this
Agreement and will be true in all material respects as of the Sale and Transfer
Date.  None of the written
representations, information or documentation furnished or to be furnished by
Seller to Purchaser in this Agreement or in the transactions contemplated
hereby has materially changed since it was made or furnished, nor is it or will
it become materially false or misleading, nor does it or will it contain any
material misstatement of fact or omit to state a material fact necessary in
order to make the statements in light of the circumstances in which they are
made not misleading.

7.15                           No Cooperative Loans.  None of the Mortgage Loans are secured by
liens or security interests on cooperative properties.

 17
 

7.16                           No Recourse Loans.  None of the Mortgage Loans have Recourse
Obligations.

7.17                           Restricted Mortgage Loans.  There are no contractual obligations that
Purchaser will be required to assume with respect to the Restricted Mortgage
Loans except as provided for in subparagraph 4(b) of this Agreement.

8.                                       REPRESENTATIONS AND WARRANTIES OF PURCHASER.

The
representations and warranties of Purchaser contained in this Agreement shall
continue and survive the purchase of the Servicing and the delivery and
assignment to Purchaser of such Servicing and shall inure to the benefit of
Seller, its successors and assigns.  In
addition to representations and warranties made elsewhere in this Agreement,
Purchaser represents and warrants to Seller, as of the Sale and Transfer Date,
as follows:

8.1                                 Due Incorporation and Good Standing.  Purchaser is a federal savings association,
validly existing, and in good standing under the laws of the United
States.  Purchaser has in full force and
effect (without notice of possible suspension, revocation or impairment) all
required qualifications, permits, approvals, licenses, and registrations (or is
exempt from same) to conduct all activities in all states in which its
activities with respect to the Mortgage Loans or the Servicing require it to be
qualified or licensed.

8.2                                 Authority and Capacity.  Purchaser has all requisite corporate power,
authority, and capacity to enter into this Agreement and, subject to
appropriate regulatory approval, to perform the obligations required of it
hereunder.  Purchaser does not believe,
nor does it have any cause or reason to believe, that it cannot perform each
and every covenant contained in this Agreement.

8.3                                 Enforceability.  This Agreement constitutes a legal, valid and
binding obligation of Purchaser, enforceable against Purchaser, subject to
applicable insolvency, bankruptcy, reorganization, moratorium, or similar laws
and principles of equity.

8.4                                 Effective Agreement.  The execution, delivery and performance of
this Agreement by Purchaser and consummation of the transaction contemplated
hereby has been or will be duly and validly authorized by all necessary
corporate, shareholder or other action. 
This Agreement has been duly and validly executed and delivered by
Purchaser.  The execution and performance
of this Agreement by Purchaser, its compliance with the terms hereof and the
consummation of the transactions contemplated (assuming receipt of the various
consents required pursuant to this Agreement) will not violate any provision of
law applicable to it and will not conflict with the terms or provisions of its
charter or by-laws, or any other instrument relating to the conduct of its
business or the ownership of its property, or any other agreement to which
Purchaser is a party or by which it or its assets are bound.

8.5                                 Statements Made.  No representation, warranty, or statement
made by Purchaser in this Agreement or in any document referred to herein or in
any schedule, statement, or certificate hereafter furnished pursuant to this
Agreement or in connection with the transactions between Seller and Purchaser
provided for in this Agreement, contains or will contain any untrue statement
of a material fact or omits or will omit to state a material fact necessary to
make such statements not misleading.

8.6                                 Investor Good Standing.  Purchaser is an approved Investor servicer
and is in good standing with the Investors as required in order to perform the
Servicing.

 18

8.7                                 Litigation; Compliance with Laws.  There is no litigation, proceeding or
governmental investigation pending or, to the knowledge of Purchaser,
threatened, or any order, injunction or decree outstanding, against or relating
to Purchaser which would materially and adversely affect the ability of
Purchaser to execute, deliver, and perform the terms of this Agreement, nor
does Purchaser know of any basis for any such litigation, proceeding, or
governmental investigation.  Purchaser
has not violated any applicable state or federal law governing mortgage
lending, including but not limited to, the Real Estate Settlement Procedures
Act, Truth-in-Lending Act, Fair Credit Reporting Act, Equal Credit Opportunity
Act, usury laws, or any other regulation, ordinance, order, or decree, or any
other requirement of any governmental body or court, which would materially and
adversely affect the ability of Purchaser to execute, deliver, and perform the
terms of this Agreement.

9.                                       CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER.

The obligations of
Purchaser under this Agreement are subject to Purchaser’s satisfaction as to
each of the following conditions (unless waived in writing by Purchaser):

9.1                                 Correctness of Representations and Warranties.  The representations and warranties made by
Seller in this Agreement shall be true and correct in all material respects on
the Sale and Transfer Date.  All such
representations and warranties are continuing and shall survive closing and
funding pursuant to this Agreement.

9.2                                 Compliance with Conditions.  All of the terms, covenants and conditions of
this Agreement required to be complied with and performed by Seller at or prior
to the Sale and Transfer Date shall have been duly complied with and performed
to the reasonable satisfaction of Purchaser.

9.3                                 Corporate Resolution.  Purchaser shall have received a duly executed
Secretary’s Certificate certifying that (i) the Board of Directors of Seller
has specifically approved the sale of Servicing pursuant to this Agreement,
(ii) such approval is reflected in the minutes of the meetings of Seller’s
Board of Directors and (iii) Seller’s Board of Directors has authorized certain
officers (as listed in an incumbency certificate to be provided to Purchaser)
to execute this Agreement and all other documents necessary to consummate the
transactions contemplated herein.  A copy
of such Board resolution shall be attached to the Secretary’s Certificate.  In addition, Seller shall have provided to
Purchasers the special purpose resolution required under subparagraph 5(d) of
the Agreement.

9.4                                 Fannie Mae Waiver of Representations and
Warranties.  Seller,
Purchaser and Fannie Mae shall enter into a mutually acceptable tri-party
agreement for the purpose of obtaining Fannie Mae’s agreement that Purchaser shall
not assume any obligations with respect to origination or selling
representations and warranties or any servicing actions or inactions prior to
the Sale and Transfer Date related to the Fannie Mae Mortgage Loans.

10.                                 CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER.

The obligations of
Seller under this Agreement are subject, at Seller’s option, to the
satisfaction, at or prior to the Sale and Transfer Date, of each of the
following conditions:

10.1                           Correctness of Representations and Warranties.  The representations and warranties made by
Purchaser in this Agreement are true and correct in all material respects and
shall continue to be true and correct in all material respects on the Sale and
Transfer Date.  All such representations
and warranties are continuing and shall survive closing and funding pursuant to
this Agreement

 19
 

10.2                           Compliance with Conditions.  All of the terms, conditions, and covenants
of this Agreement required to be complied with and performed by Purchaser at or
prior to the Sale and Transfer Date shall have been duly complied with and
performed to the reasonable satisfaction of Seller.

11.                                 DELIVERY OF DOCUMENTS. 
Within two (2) Business Days following the Sale and Transfer Date,
Seller shall deliver to Purchaser via email to carolyn.cragg@everhomemortgage.com
an electronic schedule of the Mortgage Loans in Excel format reflecting the
information as of the close of business on the Sale and Transfer Date.  The schedule shall contain the following
information with respect to each Mortgage Loan: 
(i) Investor name, (ii) loan number, (iii) the Mortgagor’s name, (iv)
address of mortgaged property, (v) unpaid principal balance, (vi) the interest
rate provided in the Mortgage Note, (vii) next date on which the mortgage
payment is due, (viii) type of loan, (ix) amount held in escrow for the account
of the Mortgagor, (x) monthly principal and interest installment, (xi) monthly
escrow installment, (xii) Accounts Receivable, (xiii) net Servicing fee, (xiv)
Bankruptcy code, as applicable, and (xv) Foreclosure code, as applicable.

12.                                 INDEMNIFICATION OF PURCHASER AND SELLER.

12.1                           Indemnification of Purchaser.  Without
regard to any knowledge qualifier, Seller shall indemnify and hold
Purchaser harmless from, and will reimburse Purchaser for any and all liabilities,
actual out-of-pocket losses, damages, deficiencies, claims, penalties, fines,
actual out-of-pocket costs or expenses, including without limitation reasonable
attorneys’ fees and court costs in preparation for or at trial, on appeal or in
bankruptcy (“Seller’s Indemnified Matters”) incurred by Purchaser after the
Sale and Transfer Date to the extent that Seller’s Indemnified Matters result
from:

(a)                                  any
written misrepresentations made by Seller in this Agreement or in any schedule,
statement, Appendix, or certificate furnished pursuant to this Agreement, the
Offering Information or in connection with any of the foregoing;

(b)                                 any
breach of a representation or warranty by Seller, or the non-fulfillment of any
covenant of Seller contained in this Agreement or in any schedule, statement,
Appendix, or certificate furnished pursuant hereto;

(c)                                  any
defect in any Mortgage Loan existing as of the Sale and Transfer Date
(including those defects subsequently discovered by Purchaser) which adversely
affects the Mortgage Loans, the value of the Servicing, or which is required to
be cured pursuant to Investor Guidelines;

(d)                                 acts
or omissions of Seller, any originator of Third Party Originated Loans or any
prior servicer with respect to issuer, originator, or lender responsibilities
pursuant to Investor Guidelines, or Applicable Requirements, or acts or
omissions by any of the foregoing relating to the Servicing prior to the Sale
and Transfer Date, including, but not limited to, compliance with all
applicable Investor Guidelines, incomplete or erroneous loan documentation,
fraud at origination by any party, unapproved assumptions, data base errors and
omissions, inaccurate Tax Identification Numbers on the Mortgagors of the
Mortgage Loans, improper escrow disbursements, unrecoverable Accounts
Receivable, misquoted payoffs, misapplied payments, failure to file timely
notice of default or failure to pay or to provide evidence of payment of taxes,
insurance or other charges, including penalties and interest, or hazard insurance
claims not covered by insurance;

(e)                                  the
failure or inability of Seller to produce the payment history on any Mortgage
Loan from the date of origination thereof; or

 20
 

(f)                                    any
litigation, including without limitation, class action lawsuits due to acts or
omissions prior to the Sale and Transfer Date.

Purchaser agrees
to promptly notify Seller in writing of the existence of any fact known to
Purchaser giving rise to any obligations of Seller under this Paragraph 12 and,
in the case of any claim or any litigation brought by a third party which may
give rise to any such obligations, Purchaser agrees to promptly notify Seller
of the making of such claim or the commencement of such action by a third party
as and when the same become known to Purchaser. 
Seller shall be entitled to participate in the defense of any action
brought by a third party against Purchaser which may give rise to an obligation
of Seller and, at its election, to direct the defense thereof at its own
expense.

All
indemnifications, representations, and warranties under this Agreement shall
survive termination and/or consummation of this Agreement and may be assigned
by Purchaser to any subsequent purchaser of the Servicing.

12.2                           Indemnification of Seller.  Purchaser shall indemnify and hold Seller
harmless from and will reimburse Seller for any losses, damages, deficiencies,
claims, penalties, fines, out-of-pocket costs or expenses, including reasonable
attorney’s fees and court costs in preparation for or at trial or on appeal or
in bankruptcy (“Purchaser’s Indemnified Matters”), incurred by Seller after the
Sale and Transfer Date to the extent that Purchaser’s Indemnified Matters
result from:

(a)                                  Any
written misrepresentation made by Purchaser in this Agreement or in any
schedule, statement, Appendix, or certificate furnished pursuant to this
Agreement or in connection with any of the foregoing;

(b)                                 Any
breach of a representation or warranty by Purchaser, or the non-fulfillment of
any covenant of Purchaser contained in this Agreement or in any schedule,
statement, Appendix, or certificate furnished pursuant hereto;

(c)                                  Acts
or omissions of Purchaser relating to the Servicing subsequent to the Sale and
Transfer Date including, but not limited to, compliance with all applicable
Investor Guidelines, improper escrow disbursements, misquoted payoffs,
misapplied payments, failure to file timely notice of default or failure to pay
or to provide evidence of payment of taxes, insurance or other charges,
including penalties and interest, or hazard insurance claims not covered by
insurance;

(d)                                 Any
act taken by Purchaser pursuant to any special purpose resolution provided by
Seller to Purchaser for the use and purpose as expressly contain therein or any
use or misuse of such special purpose resolution in any manner or by any
employee of Purchaser not expressly authorized by the Seller; or

(e)                                  any
litigation, including without limitation, class action lawsuits due to acts or
omissions caused by Purchaser subsequent to the Sale and Transfer Date.

Seller agrees to
promptly notify Purchaser in writing of the existence of any fact known to
Seller giving rise to any obligations of Purchaser under this Paragraph 12 and,
in the case of any claim or any litigation brought by a third party which may
give rise to any such obligations, Seller agrees to promptly notify Purchaser
of the making of such claim or the commencement of such action by a third party
as and when the same become known to Seller. 
Purchaser shall be entitled to participate in the defense of any action
brought by 

 21
 

a third party
against Seller which may give rise to an obligation of Purchaser and, at its
election, to direct the defense thereof at its own expense.

All
indemnifications, representations, and warranties under this Agreement shall
survive termination and/or consummation of this Agreement.

13.                                 MISCELLANEOUS.

13.1                           Notification of Transfer.  In accordance with Investor Guidelines and
state laws, Seller shall transmit to the Mortgagors of the Mortgage Loans, the
requisite taxing authorities, insurance companies and/or agents, Insurers and
the banks at which escrow deposits are maintained, notification of the
assignment of the Transferred Assets and instructions to deliver all payments,
notices, tax bills, insurance statements, and escrow account statements, as the
case may be, to Purchaser from and after such date.  Seller shall use a mutually agreeable form of
letter to the Mortgagors and Seller shall deliver the completed form of the
letter to Purchaser ten (10) Business Days prior to mailing.  Purchaser shall, using reasonable discretion,
approve or disapprove the completed letter within three (3) Business Days after
receipt.

13.2                           Supplementary Information.  Subsequent to the Sale and Transfer Date,
Seller shall furnish Purchaser such information supplementary to the
information contained in the documents and schedules delivered pursuant hereto
as Purchaser may reasonably request. Seller will timely issue all appropriate
IRS tax forms or reports on all Mortgage Loans reflecting Seller’s servicing
activities during the time these loans were serviced or sub-serviced by
Seller.  In addition, Seller shall be
responsible for any reporting on the Mortgage Loans required under the Home
Mortgage Disclosure Act (HMDA), if applicable.

13.3                           Further Assurances.  Seller and Purchaser will each, at the
request of the other, execute and deliver to each other all such other
instruments that either may reasonably request in order to perfect the
conveyance, transfer, assignment, and delivery to Purchaser of the rights to be
conveyed, transferred, assigned, and delivered hereunder.

13.4                           Access to Information.  Seller shall provide Purchaser and its
counsel, accountants, and other representatives, reasonable access during
normal business hours throughout the period prior to the Sale and Transfer Date
to all of Seller’s files, books, and records relating to the Servicing rights
being conveyed, transferred, assigned, and delivered to Purchaser pursuant
hereto.  If the transactions contemplated
by this Agreement are not consummated, Purchaser and its representatives and
Affiliates shall treat all information obtained in such investigation, not
otherwise in the public domain, as confidential and Purchaser shall return, or
at Seller’s option, destroy all documents and information obtained from Seller
in conjunction with the proposed transaction. 
Purchaser shall provide Seller and its counsel, accountants, and other
representatives, reasonable access during normal business hours to all of
Purchaser’s files, books, and records relating to the collection of Accounts
Receivable and in connection with all matters pertaining to any claim of
Purchaser for indemnification by Seller.

13.5                           Broker’s Fees.  Seller represents and warrants to Purchaser
that there are no brokers, finders or originators due a fee in this
transaction.  Seller hereby indemnifies
and agrees to defend and hold Purchaser harmless from and against any claim,
demand, liability, loss or damage arising from any claim made (including
reasonable attorneys’ fees and court costs at trial or on appeal) by any
broker, finder, or originator who asserts a claim based upon an engagement by
Seller.  Purchaser hereby agrees to
indemnify and hold Seller harmless from and against any loss or damage arising
from any claim made (including reasonable attorneys’ fees and court costs) by
any broker, finder, or originator who asserts a claim based upon an engagement
by Purchaser.

 22
 

13.6                           Survival of Covenants, Agreements, Representations
and Warranties.  Each
party hereto covenants and agrees that its covenants, agreements,
representations and warranties in this Agreement and in any document delivered
or to be delivered pursuant hereto, shall survive the consummation of this
Agreement. Each Appendix attached to this Agreement shall be executed by the
parties hereto simultaneously with the execution of this Agreement and shall
survive the consummation of this Agreement.

13.7                           Form of Payment to be Made.  All payments to be made hereunder shall be
made by wire transfer in immediately available federal funds, unless otherwise
directed in writing by the recipient.

13.8                           Notices.  All notices, requests, demands, and other
communications which are required or permitted to be given under this Agreement
shall be in writing and shall be given to the party at its address or facsimile
number set forth below.  Each notice
shall be deemed to have been duly given and received:  (a) as of the date and time the same are
personally delivered with a receipted copy, (b) if given by facsimile, when the
facsimile is transmitted to the party’s facsimile number specified below and
confirmation of complete receipt is received by that transmitting party during
normal business hours or the next Business Day if not confirmed during normal
business hours; (c) if delivered by U. S. Mail, within three (3) days after
depositing with the United States Postal Service, postage prepaid by certified
mail, return receipt requested, or (d) if given by a nationally recognized or
reputable overnight delivery service within one (1) day after deposit with such
delivery service.

	
  

  	
  (a)

  	
  If to Purchaser, to:

  	
   

  	
  Ms. Carolyn Cragg

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  EverBank

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  8100 Nations Way

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Jacksonville, FL 32256

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile No. (904) 281-6206

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  	
   

  	
  Mr. Tom Hajda

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  EverBank

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  8100 Nations Way

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Jacksonville, FL 32256

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile No. (904) 281-6206

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  If to Seller, to:

  	
   

  	
  Mr. Steven F. Herbert

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NetBank

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  9710 Two Notch Road

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Columbia, South Carolina 29223

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile No. (803) 462-7624

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  	
   

  	
  Powell Goldstein LLP

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1201 West Peachtree Street, 14th Floor

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Atlanta, Georgia 30303

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: Walter G. Moeling, IV, Chief Legal Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile No. (404) 572-6999

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  and,

  	
   

  	
   

  

 

 23
 

 

	
  

  	
   

  	
   

  	
   

  	
  Mr. Charles E. Mapson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Legal Counsel

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NetBank

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  4901 Belfort Road, Ste. 160

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Jacksonville, FL 332256

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile No. (803) 462-7998

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  and,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Mr. David C. Gaffney

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Counsel

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NetBank

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  9710 Two Notch Road

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Columbia, South Carolina 29223

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile No. (803) 462-7856

  	
   

  	
   

  

or to such other
address or facsimile number as Purchaser or Seller shall have specified in
writing to the other.

13.9                           Waivers.  Either Purchaser or Seller may, by written
notice to the other:

(a)                                  Extend
the time for the performance of any of the obligations or other transactions of
the other;

(b)                                 Waive
compliance with any of the terms, conditions or covenants required to be
complied with by the other hereunder; and

(c)                                  Waive
or modify performance of any of the obligations of the other hereunder.

The waiver of any
party hereto or a breach of any provisions of this Agreement shall not operate
or be construed as a waiver of any other or subsequent breach.

13.10                     Entire Agreement.  This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all other agreements between the parties.

13.11                     Binding Effect.  This Agreement shall inure to the benefit of
and bind the parties hereto and their successors and assigns.  Nothing in this Agreement, express or
implied, is intended to confer on any person other than the parties hereto and
their successors and assigns, any rights, obligations, remedies or
liabilities.  Nothing contained herein
shall prevent Purchaser from selling the Servicing to a third party subsequent
to the Sale and Transfer Date.

13.12                     Headings.  Headings of the paragraphs in this Agreement
are for reference purposes only and shall not be deemed to have any substantive
effect.

13.13                     Applicable Laws.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida.

 24
 

13.14                     Transfer Instructions.  Seller agrees to abide by all the terms and
conditions of Purchaser’s Transfer Instructions attached on Appendix IV and
made a part hereof.  If Purchaser finds
that Seller has not followed the Transfer Instructions after the Servicing has
been transferred to Purchaser, Seller agrees to reimburse Purchaser for any and
all reasonable costs incurred by Purchaser to comply with the Transfer
Instructions.

13.15                     Severability.  If any provision of this Agreement or the
application thereof to any person or circumstance shall, for any reason and to
any extent, be invalid or unenforceable, the remainder of this Agreement and
the application of such provision to other persons or circumstances shall not
be affected thereby but rather shall be enforced to the greatest extent
permitted by law.

13.16                     Written Agreement.  This Agreement, the Appendices attached
hereto and applicable Investor Guidelines constitute the “written agreement”
governing Seller’s sale of Servicing to Purchaser and Seller shall continuously
maintain all components of such “written agreement” as an official record of
Seller.  If any of the Appendices are on
magnetic media format, Seller agrees that either the magnetic media version or
a physical, printed version that may be hereafter produced constitute a part of
the “written agreement”, which Seller shall continuously maintain as provided
above.

13.17                     Default by Seller.  Any breach or default by Seller under this
Agreement shall entitle Purchaser to recover from Seller any sums due
hereunder, including damages, and to pursue any rights and remedies it may have
at law or in equity under the laws of the State of Florida.

13.18                     Default by Purchaser.  If Purchaser defaults in its obligation to
purchase the Servicing in accordance with the terms and conditions set forth
herein, Seller shall be entitled to recover damages and exercise any and all
rights and remedies it may have at law or in equity under the laws of the State
of Florida.

13.19                     Dispute Resolution. Each party
covenants and agrees that any dispute, controversy or claim arising out of or
relating to this Agreement, or the breach thereof, will be resolved by binding
arbitration in accordance with the then current Commercial Arbitration Rules of
the American Arbitration Association (“AAA”).

In the event of
any dispute or claim of any kind or nature, the prevailing party in such
dispute shall be entitled to recover from the nonprevailing party all fees and
costs associated with any arbitration, together with all of its reasonable
costs, fees, and expenses, including, but not limited to, witness fees, expert
fees, consultant fees, attorney (in-house and outside counsel), paralegal and
legal assistant fees, costs, and expenses and other professional fees, costs,
and expenses whether suit be brought or not, and whether at trial or on appeal,
arising from or relating to:

(a)                                  Any
arbitration proceedings, in which event the arbitrators shall have the power to
enter such an award; and/or

(b)                                 Any
court, or other judicial or administrative proceedings (including, without
limitation, proceedings in bankruptcy, proceedings to enforce this subparagraph
13.19, and proceedings in the nature of an appeal), in which event the
court or governing body having jurisdiction thereover shall have the power to
enter such an award.

Arbitration
pursuant to this subparagraph 13.19 may be initiated by either party to
this Agreement by making a written demand for arbitration and giving written
notice to the other party of such demand for arbitration, which written notice
shall specify the provisions of this Agreement alleged to be in dispute or in
breach.  The dispute shall be submitted
to three arbitrators chosen from a list provided by the AAA, one arbitrator
being selected by Seller, one arbitrator being selected by Purchaser, and
within ten (10) days after the selection of the 

 25
 

second arbitrator,
the two selected arbitrators shall select a third arbitrator.  No individual who is, or has at any time
been, an officer, employee, representative, attorney or consultant of Seller or
Purchaser or any Affiliate of either may serve as an arbitrator without the
express written consent of Seller and Purchaser.  All arbitration hearings and proceedings
shall be held in Jacksonville, Florida. 
Each of the parties shall submit to discovery and produce documents
reasonably required by the arbitrators during arbitration and in accordance
with the then current Commercial Arbitration Rules of the AAA.  Judgment of the arbitrators shall be final
and binding, and may be enforced in any court having jurisdiction.  During the pendency of any arbitration
proceeding, either party may retain any payments that may relate to the matter
in dispute provided that such amounts do not exceed the amount subject to
dispute.

13.20                     Wire Instructions.  The parties wire transfer instructions are as
follows:

If to Seller:

Bank: JP Morgan
Chase Bank

Address: 712 Main
Street, Houston, Texas 77002

Name of Account:
NetBank

ABA No.: 021000021

Account No.:
00113324801

(Sender’s name
must be referenced on wire.)

If to Purchaser:

Bank:  EverBank

Address: 8100
Nations Way, Jacksonville, Florida 32256

Name of Account:
EverBank GOA

ABA No.: 063000225

Account No.:
0067601044

(Sender’s name and
purpose of wire must be referenced on wire.)

13.21                     Counterparts Execution.  This Agreement may be executed in
counterparts, each of which will constitute an original, but all of which taken
together will constitute one and the same agreement.  A facsimile signature shall be deemed an
original for purposes of execution and delivery of this Agreement in the
absence of the original ink signature of a party.

IN
WITNESS WHEREOF, each of the parties to this Agreement has
caused this Agreement to be duly executed in its corporate name by one of its
duly authorized officers, all as of the date first above written.

 

	
  Witnesses:

  	
  EVERBANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Carolyn Cragg

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its: Senior Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (CORPORATE SEAL)

  
							

 

 26
 

 

	
  

  	
  NETBANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Steven F. Herbert

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its: Chief Executive
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (CORPORATE SEAL)

  
							

 

 27
 

APPENDIX
I - MORTGAGE LOANS

 28
 

APPENDIX
II - ASSIGNMENT OF THE SERVICING OF THE MORTGAGE LOANS

That NETBANK, a federally chartered savings
association, whose mailing address is 9710 Two Notch Road, Columbia, South
Carolina 29223, assignor, in consideration of the sum of TEN DOLLARS,
and other valuable considerations, received from or on behalf of EVERBANK, a federal savings association, whose address is 8100
Nations Way, Jacksonville, Florida 32256, assignee, at or before the ensealing
and delivery of these presents, the receipt whereof is hereby acknowledged,
does hereby grant, bargain, sell, assign, transfer and set over unto the
assignee, all of its right, title and interest in and to the Servicing of those
certain Mortgage Loans more particularly described at Appendix I to that
certain Agreement for Purchase and Sale of Servicing by and between assignor
and assignee dated as of June 15, 2007 (the “Purchase Agreement”, which such
Appendix I is incorporated by reference herein, subject to the terms and
conditions of such Purchase Agreement.

Together with the notes
described in said mortgages, and the moneys due and to become due thereon, with
interest from July 2, 2007.

TO HAVE
AND TO HOLD, the same unto the assignee, its successors and
assigns forever.

IN
WITNESS WHEREOF, the assignor has caused these presents to be
executed as of June 15, 2007.

	
  Witnesses:

  	
   

  	
   

  
	
   

  	
  NETBANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Steven F. Herbert

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Steven F. Herbert

  
	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (CORPORATE SEAL)

  
								

STATE OF                  

COUNTY OF                  

The foregoing
instrument was acknowledged before me this 15th day of June, 2007, by Steven F. Herbert, Chief
Executive Officer of NetBank, a federally chartered savings
association, on behalf of the corporation, who either       
is personally known to me or       has produced
identification in the form of                       
driver’s license.

	
  

  	
                                                               

  
	
   

  	
  Print Name:                                        

  
	
   

  	
  Notary Public,
  State of                   

  
	
   

  	
  Commission No.                                  

  
	
   

  	
  My commission expires:

  

 

 29
 

APPENDIX
III - TRANSFER OF SERVICING

THIS
TRANSFER OF SERVICING, is made as of July 2, 2007, by and
between NETBANK, a federally chartered savings
association (“Transferor”), and EVERBANK, a
federal savings association.

R E C I T A L S:

1.                                       TRANSFEROR and EVERBANK
entered into that certain Agreement for Purchase and Sale of Servicing, dated
as of June 15, 2007 (the “Purchase Agreement”), providing for, among other
things, the sale by TRANSFEROR to EVERBANK and the purchase by EVERBANK
from TRANSFEROR of all the right, title and
interest of TRANSFEROR in and to the
Servicing, Related Escrow Accounts with respect to the Mortgage Loans, Mortgage
Files and Accounts Receivable, all as more particularly defined and described
in the Purchase Agreement.

2.                                       TRANSFEROR is the lawful owner of the Servicing, Mortgage
Files and Accounts Receivable and the custodian of the Related Escrow Accounts
and Buy-Down Funds, all as more particularly defined and described in the
Purchase Agreement.

NOW
THEREFORE, in consideration of Ten Dollars and other valuable
considerations, the receipt and sufficiency of which are hereby acknowledged, TRANSFEROR, as the lawful owner of the Servicing, Mortgage
Files and Accounts Receivable and the custodian of the Related Escrow Accounts
and Buy-Down Funds hereby sells, conveys, transfers, assigns and delivers to EVERBANK, all its right, title and interest, as of July 2,
2007, in and to the Servicing under applicable Investor Guidelines, the Related
Escrow Accounts and Buy-Down Funds with respect to the Mortgage Loans, Mortgage
Files and the Accounts Receivable, subject to the terms and conditions of the
Purchase Agreement.  TRANSFEROR
hereby represents to EVERBANK that
it has clear and unencumbered title to all of the assets transferred herein and
will warrant and defend such title against the claims of all parties
whomsoever.  All capitalized terms herein
which are not defined shall have the same meaning as set forth in the Purchase
Agreement.

IN
WITNESS WHEREOF, TRANSFEROR has caused this Transfer of
Servicing to be duly executed by its duly authorized officer as of June 15,
2007.

	
  Witnesses:

  	
   

  	
   

  
	
   

  	
  NETBANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Steven F. Herbert

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Steven F. Herbert

  
	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  	
  (CORPORATE SEAL)

  
								

 

 30
 

APPENDIX
IV - TRANSFER INSTRUCTIONS

 31

APPENDIX
V – RESTRICTED MORTGAGE LOANSEXHIBIT
10.1

AMENDED AND RESTATED ESCROW AGREEMENT

This
Amended and Restated Escrow Agreement, dated as of June 18, 2007, is entered
into by and among Cano Petroleum, Inc. (“Purchaser”), The Estate of Miles O’Loughlin
and Scott White (each, a “Seller” and collectively, the “Sellers”) and The Bank
of New York Trust Company, N.A., a national banking association, as escrow
agent (“Escrow Agent”) (the “Amended and Restated Escrow Agreement”).  This Amended and Restated Escrow Agreement
amends and represents the Escrow Agreement dated as of November 29, 2005
by and among the Purchaser, the Sellers and The Escrow Agent.

The
Amended and Restated Escrow Agreement is the escrow agreement referred to as
the “Cash Escrow Agreement” in the Stock Purchase Agreement dated as of
November 29, 2005, (the “Purchase Agreement”) among  the Purchaser, W.O. Energy of Nevada, Inc. (“W.O.”),  and the Sellers. Capitalized terms used in
this agreement without definition shall have the respective meanings given to
them in the Purchase Agreement.

The
parties, intending to be legally bound, hereby agree as follows:

1.                                       ESTABLISHMENT
OF ESCROW

(a)                                  Purchaser
previously deposited with Escrow Agent an amount equal to $2,000,000 in
immediately available funds (as increased by any earnings thereon, the “Escrow
Fund”).

(b)                                 Pursuant
to the terms of the Modification and Tolling Agreement dated June 18, 2007
by and among the Purchaser, the Sellers, Leslie O’Loughlin and Jamie White, the
Purchaser has agreed to release to the Sellers the Escrow Fund and the Sellers
have agreed to deposit with the Escrow Agent 434,783 shares of common stock of
the Purchaser owned by the Sellers (the “Escrow Shares”).  The Escrow Agent shall also receive
(i) all cash, securities, dividends, increases, distributions and profits
received from the Escrow Shares or in connection therewith, including
distributions or payments in partial or complete liquidation or redemption, or
as a result of reclassifications, readjustments, reorganizations or changes in
the capital structure of the Purchaser; (ii) all dividends, and
instruments and other property from time-to-time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Escrow
Shares; (iii) all securities hereafter delivered to any Seller or the
Escrow Agent in substitution of the foregoing, all certificates representing or
evidencing such securities, and all cash, securities, instruments, documents,
dividends, increases, distributions and profits received therefrom, and any
other property at any time and from time-to-time received by, receivable by,
otherwise distributed or delivered to any Seller or the Escrow Agent in respect
of or in exchange for any or all of the property described; and (iv) all
products and proceeds of the foregoing and all general intangibles and contract
rights related thereto, including, without limitation, all revenues,
distributions, dividends, property, registration rights, contract rights and
other rights and interests that the Sellers are, or may hereafter become,
entitled to receive as described in subsections (i) — (iv) above (all such
Escrow Shares, certificates, securities, instruments, documents, increases,
distributions, profits, intangibles, contract rights and other property being
herein collectively called the “Stock Escrow Fund”).

(c)                                  Escrow
Agent shall have physical possession of the certificates or instruments
representing or evidencing the Stock Escrow Fund.  Sellers will deposit with Escrow Agent, along
with the certificates or instruments representing or evidencing the Stock
Escrow Fund, duly

executed stock powers in blank.  In addition, Escrow Agent shall in connection
with any required payments pursuant to this Amended and Restated Escrow
Agreement have the right to exchange certificates or instruments representing
the Stock Escrow Fund for certificates or instruments of smaller or larger
denominations for any purpose consistent with its performance of this Amended
and Restated Escrow Agreement.

(d)                                 At
any time after the date of this Amended and Restated Escrow Agreement, the
Sellers may jointly request the Escrow Agent in writing and the Purchaser shall
join in the request (the “Substitution Request”) to release to the Sellers the
amount of Escrow Shares equal to the Fair Value (as defined below) on the date
of the Substitution Request of the amount of cash to be deposited with the
Escrow Agent in substitution of such Escrow Shares.  Such cash that is deposited shall be
considered part of the Stock Escrow Fund. 
The Escrow Agent shall make such release to the Sellers within 3
business days of receiving the cash specified in the Substitution Request.

(e)                                  Escrow
Agent hereby agrees to act as escrow agent and to hold, safeguard and disburse
the Stock Escrow Fund pursuant to the terms and conditions hereof.

2.                                       REPRESENTATIONS,
WARRANTIES AND COVENANTS OF SELLERS

Each
Seller hereby jointly and severally represents, warrants and covenants that:

(a)                                  Each
Seller will not sell, contract to sell, encumber or dispose of any of the Stock
Escrow Fund or any interest therein until this Amended and Restated Escrow
Agreement and the obligations hereunder have been satisfied pursuant to the
terms hereof.

(b)                                 The
deposit of the Stock Escrow Fund has been duly authorized by each Seller.  No consent of any other party is necessary if
each Seller to perform its obligations hereunder, or if any such consent is
required, such consent has been received.

(c)                                  Each
Seller shall possess all voting rights pertaining to the Escrow Shares so long
as no obligations of Seller under this Amended and Restated Escrow Agreement
have occurred and are continuing.

(d)                                 Sellers
are the record and beneficial owner of the Stock Escrow Fund, free and clear of
all liens, claims and encumbrances and have full right, power and authority to
enter into and perform their obligations under this Amended and Restated Escrow
Agreement.

(e)                                  Each
Seller will (i) from time-to-time, promptly execute and deliver to Escrow
Agent all such stock certificates representing the Escrow Shares, stock power,
assignments, supplemental writings, and all other items, and do all other acts
or things as Escrow Agent may reasonably request regarding the Stock Escrow
Fund; and (ii) promptly notify Escrow Agent of any claims action or
proceedings affecting title to the Stock Escrow Fund, or any part thereof, and,
at the request of the Escrow Agent, appear in and defend, at Seller’s expense,
any such action or proceeding.

3.                                       RELEASE
OF STOCK ESCROW FUND

(a)                                  At
any time there remains any portion of the Stock Escrow Fund, upon a final
determination of a claim by Purchaser pursuant to Article X of the
Purchase Agreement (an “Agreed Escrow Payment”), Purchaser and Sellers shall
provide a joint instruction to the Escrow

 2
 

Agent (an “Agreed Escrow
Payment Notice”) to release to Purchaser from the Stock Escrow Fund the Fair
Value (as defined below) on the date of the Agreed Escrow Payment Notice
necessary the equal the Agreed Escrow Payment. 
Within 3 business days of receipt of an Agreed Escrow Payment Notice,
Escrow Agent shall release to purchaser the Fair Value of the Agreed Escrow
Payment from (and only to the extent of) the Stock Escrow Fund.  Fair Value of (i) any Escrow Shares on a
per share basis shall be (a) if the Purchaser’s common stock is listed for
trading on a national securities exchange or is quoted on the Nasdaq National
Market or the Nasdaq Capital Market, then the current value per share shall be
the average closing price of a Purchaser’s share of common stock over a 10-day
period immediately preceding the measurement date; (b) if the Purchaser’s
common stock is quoted on the over-the-counter market, then the current value
per share shall be the average of the closing bid price and asked price over a
10-day period immediately preceding the measurement date; and (c) otherwise
the fair market value of a Purchaser share of common stock on the measurement
date as determined in good faith by the Board of Directors of the Purchaser;
(ii) any other portion of the Stock Escrow Fund that is a security  on a per share or per tradable unit base
shall be (a) if such security is listed for trading on a national
securities exchange or is quoted on the Nasdaq National Market or the Nasdaq
Capital Market, then the current value per share or other tradable unit shall
be the average closing price of such a share or tradable unit over a 10-day
period immediately preceding the measurement date; (b) if such security is
quoted on the over-the-counter market, then the current value per share or
tradable unit shall be the average of the closing bid price and asked price
over a 10-day period immediately preceding the measurement date; and
(c) otherwise the fair market value of the share or tradable unit on the
measurement date as determined in good faith by the Board of Directors of the
Purchaser; and (iii) any other portion of the Stock Escrow Fund that is
not a security, the fair market value of such portion of the Stock Escrow Fund
on the measurement date determined in good faith by the Board of Directors of
the Purchaser.

(b)                                 Upon
the later to occur of (i) the two (2) year anniversary of the Closing Date and
(ii) the date of the full and final disposition of the OneOK Gas Litigation and
all claims related thereto, whether on appeal or otherwise, the Purchaser shall
give a written notice signed by the Purchaser (a “Release of Stock Escrow Fund
Notice”) to Escrow Agent authorizing the Escrow Agent to release to Sellers the
remaining aggregate amount of the Stock Escrow Fund (after taking into account
any prior Agreed Escrow Payments) less the fair value on the date of the
Release of Stock Escrow Fund Notice of the aggregate amount of all claims made
by Purchaser pursuant to Article X of the Purchase Agreement that are still
pending and have not been paid to Purchaser from the Stock Escrow Fund (the “Pending
Claims”) (the aggregate remaining amount less the Pending Claims being the “Released
Stock Escrow Fund”).  Within 3 business
days of receipt of an Release of Stock Escrow Fund Notice, Escrow Agent shall
pay to the Sellers, as a whole, the Fair Value on the Release of Stock Escrow
Fund Notice from (and only to the extent of) the Stock Escrow Fund.

(c)                                  To
the extent that after the Released Stock Escrow Fund is paid to Sellers there
remains any amount in the Stock Escrow Fund due to Pending Claims and upon a
final determination of any Pending Claims and the payment of all final Agreed
Escrow Payments relating to such Pending Claims, there remains any amount in
the Stock Escrow Fund (the “Final Released Amount”), the Purchaser shall give a
written notice signed by the Purchaser (a “Final Release of Stock Escrow Fund
Notice”) to Escrow Agent authorizing the Escrow Agent to release to Sellers the
Final Released Amount.  Within 3 business
days of receipt of a Final Release of Funds Notice, Escrow Agent shall release
the Sellers, as a whole, the Final Released Amount from (and only to the extent
of) the Stock Escrow Fund.

 3
 

4.                                       TERMINATION
OF ESCROW

Once
the Stock Escrow Fund has been paid by the Escrow Agent in its entirety, this
Escrow Agreement shall terminate.  Section 5(e) and Section 5(b) shall survive
notwithstanding any termination of this Escrow Agreement or the resignation of
Escrow Agent.

5.                                       DUTIES
OF ESCROW AGENT

(a)                                  Escrow
Agent shall not be under any duty to give the Stock Escrow Fund held by it
hereunder any greater degree of care than it gives its own similar property and
shall not be required to invest any funds.

(b)                                 Escrow
Agent shall not be liable, except for its own negligence, gross negligence or
willful misconduct and, except with respect to claims based upon such
negligence, gross negligence or willful misconduct that are successfully
asserted against Escrow Agent, the other parties hereto shall jointly and
severally indemnify and hold harmless Escrow Agent (and any successor Escrow
Agent) from and against any and all losses, liabilities, claims, actions,
damages and expenses, including reasonable attorneys’ fees and disbursements,
arising out of and in connection with this Amended and Restated Escrow
Agreement.

(c)                                  Escrow
Agent shall be entitled to rely upon any order, judgment, certification,
demand, notice, instrument or other writing delivered to it in connection
herewith without being required to determine the authenticity or the
correctness of any fact stated therein or the propriety or validity of the
service thereof. Escrow Agent may act in reliance upon any instrument or
signature believed by it to be genuine and may assume that the person
purporting to give receipt or advice or make any statement or execute any
document in connection with the provisions hereof has been duly authorized to
do so. Escrow Agent may conclusively presume that the undersigned
representative of any party hereto which is an entity has full power and
authority to instruct Escrow Agent on behalf of that party unless written
notice to the contrary is delivered to Escrow Agent.

(d)                                 Escrow
Agent may act pursuant to the advice of counsel with respect to any matter
relating to this Amended and Restated Escrow Agreement and shall not be liable
for any action taken or omitted by it in good faith in accordance with such
advice.

(e)                                  Escrow
Agent does not have any interest in the Stock Escrow Fund deposited hereunder
but is serving as escrow holder only and having only possession thereof. It is
not acting in a fiduciary capacity. Any payments of income from this Stock
Escrow Fund shall be subject to withholding regulations then in force with
respect to United States taxes. The parties hereto will provide Escrow Agent
with appropriate Internal Revenue Service Forms W-9 for tax identification
number certification or non-resident alien certifications.  During the term of this Amended and Restated
Escrow Agreement, Escrow Agent shall provide Purchaser and Sellers such
information and reports concerning the Stock Escrow Fund as any of them may
reasonably request.  Promptly after the
termination of this Amended and Restated Escrow Agreement or the resignation of
Escrow Agent,  Escrow Agent shall make an
accounting of the Stock Escrow Fund to Purchaser and Sellers.  The fees and expenses of Escrow Agent with
respect to such reports and accountings shall be borne by Purchaser and Sellers
as provided in Section 5(j).

(f)                                    Escrow
Agent makes no representation as to the validity, value, genuineness or the
collectability of any security or other document or instrument held by or
delivered to it.

 4
 

(g)                                 Escrow
Agent shall not be called upon to advise any party as to the wisdom in selling
or retaining or taking or refraining from any action with respect to any
securities or other property deposited hereunder.

(h)                                 Escrow
Agent (and any successor Escrow Agent) may at any time resign as such by
delivering the Stock Escrow Fund to any successor Escrow Agent jointly
designated by the other parties hereto in writing, or to any court of competent
jurisdiction, whereupon Escrow Agent shall be discharged of and from any and
all further obligations arising in connection with this Amended and Restated
Escrow Agreement. The resignation of Escrow Agent will take effect on the
earlier of (i) the appointment of a successor (including a court of competent
jurisdiction) or (ii) the day which is 30 days after the date of delivery of
its written notice of resignation to the other parties hereto. If at that time
Escrow Agent has not received a designation of a successor Escrow Agent, Escrow
Agent’s sole responsibility after that time shall be to retain and safeguard
the Stock Escrow Fund until receipt of (i) a designation of successor Escrow
Agent, (ii) a joint written disposition instruction by the other parties hereto
or (iii) a final non-appealable order of a court of competent jurisdiction.

(i)                                     In
the event of any disagreement between the other parties hereto resulting in
adverse claims or demands being made in connection with the Stock Escrow Fund
or in the event that Escrow Agent is in doubt as to what action it should take
hereunder, Escrow Agent shall be entitled to retain the Stock Escrow Fund until
Escrow Agent shall have received (i) a final non-appealable order of a court of
competent jurisdiction directing delivery of the Stock Escrow Fund or (ii) a
written agreement executed by the other parties hereto directing delivery of
the Stock Escrow Fund, in which event Escrow Agent shall disburse the Stock
Escrow Fund in accordance with such order or agreement. Any court order shall
be accompanied by a legal opinion by counsel for the presenting party
satisfactory to Escrow Agent to the effect that the order is final and
non-appealable. Escrow Agent shall act on such court order and legal opinion
without further question.

(j)                                     Purchaser
and Sellers shall pay Escrow Agent compensation (as payment in full) for the
services to be rendered by Escrow Agent hereunder $3,500 in the aggregate
annually and agree to reimburse Escrow Agent for all reasonable expenses,
disbursements and advances incurred or made by Escrow Agent in performance of
its duties hereunder (including reasonable fees, expenses and disbursements of
its counsel). Except as specifically set forth above, any such compensation and
reimbursement to which Escrow Agent is entitled shall be borne 50% by Purchaser
and 50% by Sellers.

(k)                                  Except
as required by law, no printed or other matter in any language (including,
without limitation,  prospectuses,
notices, reports and promotional material) that mentions Escrow Agent’s name or
the rights, powers, or duties of Escrow Agent shall be issued by the other
parties hereto or on such parties’ behalf unless Escrow Agent shall first have
given its specific written consent thereto.

(l)                                     The
other parties hereto authorize Escrow Agent, for any securities held hereunder,
to use the services of any United States central securities depository it
reasonably deems appropriate, including, without limitation, the Depositary
Trust Company and the Federal Reserve Book Entry System.

 5
 

6.                                       LIMITED
RESPONSIBILITY

This
Amended and Restated Escrow Agreement expressly sets forth all the duties of
Escrow Agent with respect to any and all matters pertinent hereto. No implied
duties or obligations shall be read into this Amended and Restated Escrow Agreement
against Escrow Agent. Escrow Agent shall not be bound by the provisions of any
agreement among the other parties hereto except this Escrow Agreement.

7.                                       OWNERSHIP
FOR TAX PURPOSES

Sellers
agrees that, for purposes of federal and other taxes based on income, Sellers
will be treated as the owner of the Stock Escrow Fund and that Sellers will
report all income, if any, that is earned on, or derived from, the Stock Escrow
Fund as its income in the taxable year or years in which such income is
properly includible and pay any taxes attributable thereto.

8.                                       NOTICES

All
notices, consents, waivers and other communications under this Amended and
Restated Escrow Agreement must be in writing and will be deemed to have been
duly given when (a) delivered by hand (with written confirmation of receipt),
(b) sent by telecopier (with confirmation of receipt) provided that a copy is
mailed by registered mail, return receipt requested, or (c) received by the
addressee, if sent by a nationally recognized overnight delivery service, in
each case to the appropriate addresses and telecopier numbers set forth below
(or to such other addresses and telecopier numbers as a party may designate by
notice to the other parties):

To Buyer:

Cano Petroleum, Inc.

801 Cherry St., Suite
3200

Fort Worth, TX 76102

Attention:  James K. Teringo, Jr. 

Facsimile No.: 
817-698-0796

with copies to:

Haynes and Boone, LLP

901 Main Street, Suite
3100

Dallas, TX 75202

Attention:  W. Bruce Newsome

Facsimile No.: 
214-200-0636

To Sellers:

Estate of Miles O’Loughlin

Scott White

Hwy 152 West

P.O. Box 960

Pampa, TX 79066

Facsimile No.:  806-665-1960

 6
 

To the Escrow Agent:

The Bank Of New York
Trust Company, N.A.

10161 Centurion Parkway

Jacksonville, FL  32256

Attention: Corporate
Trust; Harley Jeanty

Facsimile: (904) 645-1921

9.                                       JURISDICTION;
SERVICE OF PROCESS

Any action or
proceeding seeking to enforce any provision of, or based on any right arising
out of, this Escrow Agreement may be brought against any of the parties in the
courts of the State of Texas, County of Tarrant, or, if it has or can acquire
jurisdiction, in the United States District Court for the Northern District of
Texas, and each of the parties consents to the jurisdiction of such courts (and
of the appropriate appellate courts) in any such action or proceeding and
waives any objection to venue laid therein. Process in any action or proceeding
referred to in the preceding sentence may be served on any party anywhere in
the world.

10.                                 COUNTERPARTS

This Amended and Restated
Escrow Agreement may be executed in one or more counterparts, each of which
will be deemed to be an original and all of which, when taken together, will be
deemed to constitute one and the same.

11.                                 SECTION
HEADINGS

The
headings of sections in this Amended and Restated Escrow Agreement are provided
for convenience only and will not affect its construction or interpretation.

12.                                 WAIVER

The
rights and remedies of the parties to this Amended and Restated Escrow
Agreement are cumulative and not alternative. Neither the failure nor any delay
by any party in exercising any right, power, or privilege under this Amended
and Restated Escrow Agreement or the documents referred to in this Amended and
Restated Escrow Agreement will operate as a waiver of such right, power, or
privilege, and no single or partial exercise of any such right, power, or
privilege will preclude any other or further exercise of such right, power, or
privilege or the exercise of any other right, power, or privilege. To the
maximum extent permitted by applicable law, (a) no claim or right arising
out  of this Amended and Restated Escrow
Agreement or the documents referred to in this Amended and Restated Escrow
Agreement can be discharged by one party, in whole or in part, by a waiver or
renunciation of the claim or right unless in writing signed by the other party,
(b) no waiver that may be given by a party will be applicable except in the
specific instance for which it is given, and (c) no notice to or demand on one
party will be deemed to be a waiver of any obligation of such party or of the
right of the party giving such notice or demand to take further action without
notice or demand as provided in this Amended and Restated Escrow Agreement or
the documents referred to in this Amended and Restated Escrow Agreement.

 7
 

13.                                 EXCLUSIVE
AGREEMENT AND MODIFICATION

This Amended and
Restated Escrow Agreement supersedes all prior agreements among the parties
with respect to its subject matter and constitutes (along with the documents
referred to in this Amended and Restated Escrow Agreement) a complete and
exclusive statement of the terms of the agreement between the parties with
respect to its subject matter. This Amended and Restated Escrow Agreement may
not be amended except by a written agreement executed by Purchaser, Sellers and
Escrow Agent.  Other than with respect to
the escrow of the Stock Escrow Fund as set forth herein, nothing herein shall
supersede or affect the rights and obligations of Purchaser, Sellers and their
successors and assigns under the Purchase Agreement.

14.                                 GOVERNING
LAW

This
Amended and Restated Escrow Agreement shall be governed by the laws of the
State of Texas, without regard to conflicts of law principles.

* * * * *

 8
 

IN
WITNESS WHEREOF, the parties have executed and delivered this Escrow Agreement
as of the date first written above.

	
  

  	
  BUYER

  
	
   

  	
   

  
	
   

  	
  CANO PETROLEUM, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ S. Jeffrey Johnson

  	
   

  
	
   

  	
   

  	
   Name:

  	
  S. Jeffrey Johnson

  
	
   

  	
   

  	
   Title:

  	
  Chairman and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLERS

  
	
   

  	
   

  
	
   

  	
  ESTATE OF MILES O’LOUGHLIN

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Scott B. White

  	
   

  
	
   

  	
   

  	
   Name:

  	
  Scott B. White

  
	
   

  	
   

  	
   Title:

  	
  Independent Executor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   /s/ Scott White

  	
   

  
	
   

  	
  Scott White

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ESCROW AGENT

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST COMPANY, N.A.,

  as Escrow Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/Harley Jeanty

  	
   

  
	
   

  	
   

  	
   Harley Jeanty, Vice President

  
						

 

 9

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