Document:

Amended and Restated Guaranty and Pledge Agmt., dated as of 10/01/2004

 Exhibit 10.6 
  
 AMENDED AND RESTATED GUARANTY AND PLEDGE AGREEMENT 
  
 THIS AMENDED AND RESTATED GUARANTY AND PLEDGE AGREEMENT, dated as of October 1, 2004, (this “Guaranty”), is made
by and among NEW CENTURY FINANCIAL CORPORATION (f/k/a New Century REIT, Inc.) (“NCFC”) and NEW CENTURY MORTGAGE CORPORATION (“NCMC”; and jointly and severally with NCFC, the “Guarantors”) and CITIGROUP GLOBAL MARKETS
REALTY CORP. (the “Buyer”, which term shall include any buyer for whom Buyer acts as Agent as defined and provided for in the Master Repurchase Agreement referred to below). 
  
 RECITALS 
  
 WHEREAS, New Century Financial Corporation, NCMC and the Buyer entered into that certain Guaranty and Pledge Agreement, dated as of May 30, 2002
(“Original Guaranty”); and 
  
 WHEREAS, the
parties are entering into this Guaranty to reflect the reorganization of New Century Financial Corporation and New Century REIT, Inc., a Maryland corporation (“New Century REIT”), through the merger of NC Merger Sub, Inc., a
wholly-owned subsidiary of New Century REIT, with and into NCFC, resulting in New Century REIT becoming the parent company of New Century Financial Corporation (the “REIT Conversion”) on October 1, 2004 (the “REIT Conversion
Date”); and 
  
 WHEREAS, as a result of the REIT
Conversion, New Century Financial Corporation is now known as New Century TRS Holdings, Inc. and New Century REIT is now known as New Century Financial Corporation; and 
  
 WHEREAS, New Century Financial Corporation (f/k/a New Century REIT), NCMC and Buyer desire to enter into this Guaranty in
order to replace New Century TRS Holdings, Inc. (f/k/a/ New Century Financial Corporation) as a Guarantor with New Century Financial Corporation (f/k/a New Century REIT), and to amend, restate and replace the Original Guaranty in its entirety; and

  
 WHEREAS, pursuant to the Master Repurchase Agreement, dated as
of May 30, 2002 (as amended, supplemented or otherwise modified from time to time, the “Master Repurchase Agreement”), between New Century Funding SB-1 (the “Seller”) and the Buyer, the Buyer has agreed to purchase certain loans
(the “Loans”) from the Seller and the Seller has agreed to repurchase such Loans upon the terms and subject to the conditions set forth therein; and 
  

WHEREAS, as of the date hereof, NCMC holds all of the outstanding equity of the Seller and will therefore derive a benefit from the Buyer’s
purchase and sale of Loans from and to the Seller pursuant to the Master Repurchase Agreement. As of the date hereof, NCFC holds all of the outstanding shares of NCMC and will therefore derive a benefit from the Buyer’s purchase and sale of
Loans from and to the Seller pursuant to 

  

 
the Master Repurchase Agreement. To induce the Buyer to enter into the Master Repurchase Agreement and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Guarantors have agreed to guaranty the Seller’s obligations with respect to the Master Repurchase Agreement and the documents referenced therein, and NCMC has agreed to pledge and grant a
security interest in the Pledged Collateral (as defined herein) as security for such guaranty; and 
  
 WHEREAS, it is a condition precedent to the Buyer entering into the Master Repurchase Agreement and to the obligation of the Buyer to purchase the Loans
from the Seller under the Master Repurchase Agreement that the Guarantors shall have executed and delivered this Guaranty to the Buyer. 
  
 NOW, THEREFORE, for good and valuable consideration, receipt of which by the parties hereto is hereby acknowledged, the parties hereto hereby agree as
follows: 
  
 1. Defined Terms. (a) Unless otherwise defined
herein, terms defined in the Master Repurchase Agreement and used herein shall have the meanings given to them in the Master Repurchase Agreement. 
  
 (b) “Expiration Date” shall have the meaning set forth in Section 2(d) herein. 
  
 (c) “Obligations” shall mean the obligations and liabilities
of the Seller and the Guarantors to the Buyer, including, without limitation, the obligations whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, or out of or in
connection with the Master Repurchase Agreement, this Guaranty, any other Program Documents and any other document made, delivered or given in connection therewith or herewith, whether on account of covenants, Repurchase Prices, reimbursement
obligations, fees, indemnities, costs, expenses (including, without limitation, all fees and disbursements of counsel to the Buyer that are required to be paid by the Seller pursuant to the terms of the Master Repurchase Agreement) or otherwise.

  
 (d) “Pledged Collateral” shall have the
meaning assigned thereto in Section 3 hereof. 
  
 (e)
“Pledged Equity” shall mean all of the beneficial ownership interest of the Seller acquired by NCMC from time to time. 
  
 (f) “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York at any time; provided, that if, by reason of
mandatory provisions of law, the validity or perfection of the Buyer’s security interest in any item of Pledged Collateral is governed by the UCC as in effect in a jurisdiction other than New York, “UCC” shall mean the UCC as in
effect in such other jurisdiction for purposes of the provisions hereof relating to such validity or perfection. 
  

 (g) The words “hereof,” “herein” and “hereunder” and words of similar
import when used in this Guaranty shall refer to this Guaranty as a whole and not to any particular provision of this Guaranty, and section and paragraph references are to this Guaranty unless otherwise specified. 
  
 (h) The meanings given to terms defined herein shall be equally applicable to
both the singular and plural forms of such terms. 
  
 2.
Guaranty. (a) The Guarantors hereby, unconditionally and irrevocably, guarantee to the Buyer and its successors, indorsees, transferees and assigns the prompt and complete payment and performance by the Seller when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations. 
  
 (b) The Guarantors further agree to pay any and all expenses (including, without limitation, all reasonable fees and disbursements of counsel) which may be paid or incurred by the Buyer in enforcing any rights with respect to, or
collecting, any or all of the Obligations and/or enforcing any rights with respect to, or collecting against, the Guarantors under this Guaranty. This Guaranty shall remain in full force and effect until the Obligations are paid in full,
notwithstanding that from time to time prior thereto the Seller may be free from any Obligations. 
  
 (c) Each Guarantor agrees that the Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder
without impairing this Guaranty or affecting the rights and remedies of the Buyer hereunder. 
  
 (d) No payment or payments made by the Seller, the Guarantors, any other guarantor or any other Person or received or collected by the Buyer from the Seller, the Guarantors, any other guarantor or any other Person by
virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of the
Guarantors hereunder which shall, notwithstanding any such payment or payments other than payments made by the Guarantors in respect of the Obligations or payments received or collected from the Guarantors in respect of the Obligations, remain
liable for the Obligations up to the maximum liability of the Guarantors hereunder until the Obligations are paid in full and the Master Repurchase Agreement is terminated (such date, the “Expiration Date”). 
  
 (e) Each Guarantor agrees that whenever, at any time, or from time to time,
it shall make any payment to the Buyer on account of its liability hereunder, it will notify the Buyer in writing that such payment is made under this Guaranty for such purpose. 
  
 (f) Each Guarantor shall be jointly and severally liable to the Buyer for all obligations of the Guarantors hereunder.

  

 3. Pledge of Equity. 
  
 3.01 Pledged Collateral. As collateral security for the prompt payment in full when due of the Obligations and solely
to secure such debt, NCMC hereby pledges, collaterally assigns and hypothecates to the Buyer, and hereby grants to the Buyer, for the benefit of both the Buyer’s own account and the account of affiliates of the Buyer for which the Buyer is
acting as agent pursuant to the Master Netting Agreement, a lien on and first priority security interest in, all of NCMC’s right, title and interest in, to and under the following, whether now owned by NCMC or hereafter acquired and whether now
existing or hereafter coming into existence and wherever located (all being collectively referred to herein as the “Pledged Collateral”): 
  
 (a) the Pledged Equity, including, without limitation, (i) all rights of NCMC to receive moneys due but unpaid or to become due thereunder and all
property received in substitution or exchange therefore, (ii) all of NCMC’s rights and privileges with respect to the Pledged Equity, (iii) all rights of NCMC to property of the Seller, (iv) all rights of NCMC to receive proceeds of any
insurance, bond, indemnity, warranty or guaranty with respect to the Seller, and (v) all proceeds, payments, income and profits of the foregoing; 
  
 (b) the official records and ledgers of the Seller; and 
  
 (c) to the extent not included in the foregoing, all proceeds, products, offspring, rents, revenues, issues, profits, royalties, income, benefits,
accessions, additions, substitutions and replacements of and to any and all of the foregoing. 
  
 3.02 Later Acquired Equity, Ownership Dividends, Options or Adjustments. Until the Expiration Date, NCMC shall deliver to the Buyer any and all additional equity or any other property of any kind distributable
on or by reason of the Pledged Collateral, whether in the form of or by way of ownership dividends, warrants, total or partial liquidation, conversion, prepayments, redemptions or otherwise, including, but not limited to, cash dividends or cash
interest payments, as the case may be; provided, however, that prior to an Event of Default under the Master Repurchase Agreement, NCMC may receive any cash dividends from Seller which are permitted to be retained by Seller pursuant to the terms of
the Master Repurchase Agreement. If any additional equity, instruments, or other property, a security interest in which can only be perfected by possession by the Buyer, which are distributable on or by reason of the Pledged Collateral, shall come
into the possession or control of NCMC, NCMC shall forthwith transfer and deliver such property to the Buyer as Pledged Collateral hereunder. 
  
 3.03 Delivery of Ownership Certificates and Conveyance Powers. Simultaneously with the delivery of this Guaranty, NCMC is delivering to the Buyer
all certificated instruments and ownership certificates representing the Pledged Equity, together with conveyance powers duly executed in blank by NCMC and the registration book maintained by the Seller with respect to the Pledged Equity. NCMC shall
promptly deliver to the Buyer, or cause the Seller or any other entity issuing the Pledged Collateral 

  

 
to deliver directly to the Buyer, (i) ownership certificates or other instruments representing any Pledged Equity acquired or received by NCMC after the date
of this Guaranty and (ii) a conveyance power or bond power duly executed in blank by NCMC. If at any time the Buyer notifies NCMC that it requires additional conveyance powers endorsed in blank, NCMC shall promptly execute in blank and deliver the
requested power to the requesting party. 
  
 3.04 Power of
Attorney, Irrevocable Proxy. (a) NCMC hereby constitutes and irrevocably appoints the Buyer, with full power of substitution and revocation, as NCMC’s true and lawful attorney-in-fact, with the power, to the full extent permitted by law, to
affix to any notes and documents representing the Pledged Collateral the conveyance or bond powers delivered with respect thereto, and to transfer or cause the transfer of the Pledged Collateral, or any part thereof, on the books of the Seller or
other entity issuing such Pledged Collateral, to the name of the Buyer or any nominee, and thereafter to exercise with respect to such Pledged Collateral, all the rights, powers and remedies of an owner. The power of attorney granted pursuant to
this Guaranty and all authority hereby conferred are granted and conferred solely to protect the Buyer’s interest in the Pledged Collateral and shall not impose any duty upon the Buyer to exercise any power. This power of attorney shall be
irrevocable as one coupled with an interest until the Expiration Date. 
  
 (b) As of the date hereof, NCMC hereby constitutes and irrevocably appoints the Buyer, with full power of substitution and revocation, as NCMC’s true and lawful attorney-in-fact, with the power, to the full extent permitted by law, to
vote as proxy the Pledged Collateral at a meeting, or to express consent or dissent to corporate action in writing without a meeting, with respect to those actions described in Article VII of the Trust Agreement of the Seller or Section 18 of the
Administration Agreement of the Seller. This proxy shall be irrevocable as one coupled with an interest and shall be valid until the Expiration Date. 
  
 3.05 Dividends. NCMC agrees that it shall not cause the Seller to declare or make payment of (i) any dividend or other distribution on any
ownership interest; provided, however, that prior to an Event of Default under the Master Repurchase Agreement, NCMC may receive any cash dividends from Seller which are permitted to be retained by Seller pursuant to the terms of the Master
Repurchase Agreement or (ii) any payment on account of the purchase, redemption, retirement or acquisition of any option, warrant or other right to acquire an interest in its own equity. 
  
 4. Representations and Warranties of the Guarantors. 
  
 4.01 Each Guarantor hereby represents and warrants that: 
  
 (a) It is duly organized and validly existing in good standing under the laws of the jurisdiction under which it is
organized and is duly qualified to do business and is in good standing in every other jurisdiction as to which the nature of the business conducted by it makes such qualification necessary. 
  

 (b) It has the full power, authority and legal right to execute, deliver and perform its obligations
under this Guaranty. This Guaranty has been duly executed and delivered by it, has not been amended or otherwise modified, is in full force and effect and is the legal, valid and binding obligation of each Guarantor, enforceable against it in
accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally and to the application of general principles of equity
(regardless of whether considered in a proceeding in equity or at law). 
  
 (c) Neither the execution and delivery of this Guaranty nor the consummation of the transactions contemplated herein will conflict with or result in a breach of, or require any consent under, any applicable law or regulation, or any order,
writ, injunction or decree of any court or governmental authority or agency, or any material agreement or instrument to which the Guarantors are a party or by which the Guarantors or their property is bound or to which the Guarantors are subject, or
constitute a default under any such material agreement or instrument, or (except for the liens created pursuant hereto) result in the creation or imposition of any lien or encumbrance upon the Guarantors’ revenues or assets pursuant to the
terms of any such material agreement or instrument. 
  
 (d) The
Guarantors have received and reviewed copies of the Program Documents. 
  
 (e) There is no action, suit or proceeding at law or in equity by or before any governmental authority, arbitral tribunal or other body now pending, or to the best of the Guarantors’ knowledge, threatened against or affecting the
Guarantors or any of their property or, with respect to NCMC, the Pledged Collateral that has a reasonable likelihood of having a material adverse effect on the Guarantors’ condition, financial or otherwise. 
  
 (f) No authorizations, approvals or consents of, and no filings or
registrations with, any governmental authority are necessary for the execution, delivery or performance by the Guarantors of this Guaranty, except for the filings of the UCC-1s. 
  
 4.02 NCMC hereby represents and warrants that: 
  
 (a) The chief place of business and chief executive office of the Seller is Delaware. NCMC has heretofore delivered to the
Buyer a certified copy of the Trust Agreement and Administration Agreement of the Seller (collectively, the “Operating Documents”) as in effect on the date hereof. 
  
 (b) Upon the filing of UCC-1 financing statements (“UCC-1s”) in the State of Delaware and, to the extent that the
Pledged Collateral or any part thereof constitutes “securities” for purposes of Article 8 of the UCC, registration of such pledge on the registration book maintained by the Seller, the pledge and security interest 

  

 
hereunder in favor of the Buyer constitutes a first priority pledge and security interest in and to all of the Pledged Collateral pledged by the Guarantors
hereunder. 
  
 (c) It is the sole beneficial owner of the Pledged
Collateral pledged under Section 3 hereof free and clear of all claims, mortgages, pledges, liens, security interests and other encumbrances of any nature whatsoever (and no right or option to acquire the same exists in favor of any other person or
entity), except for the assignment, pledge and security interest in favor of the Buyer created or provided for herein, and the Guarantor agrees that it will not encumber or grant any security interest in or with respect to the Pledged Collateral or
permit any of the foregoing. 
  
 (d) NCMC and the Seller do not,
in connection with selling, transferring and assigning any Loan and pledging the Pledged Collateral, have any actual intent to hinder, delay or defraud any entity to which NCMC or the Seller are or are to become indebted. 
  
 (e) In exchange for the pledge and guaranty hereunder, NCMC, as holder of the
Pledged Equity, will derive a benefit from the sale, transfer and assignment of the Loans to the Buyer. 
  
 (f) It is solvent on the date hereof and will not become insolvent as a result of the pledge. 
  
 (g) It does not intend to incur, or believe in respect of the pledge of the
Pledged Collateral, that it will incur, debts that would be beyond its ability to pay such debts as such debts mature. 
  
 (h) The Pledged Equity are validly issued, fully paid for and nonassessable. No options, warrants or other agreements with respect to the Pledged Equity
are outstanding. The Pledged Equity represent all of the ownership interest in the Seller. 
  
 4.03 NCFC hereby represents and warrants that it is a qualified real estate investment trust (“REIT”) under Section 856 of the Internal Revenue Code of 1986, as amended and it is in compliance with all
provisions of the Code governing its REIT status. 
  
 5.
Covenants of Guarantors. 
  
 5.01 Each Guarantor covenants
and agrees that: 
  
 (a) It shall pay and discharge all taxes now
or hereafter imposed on it, on its income or profits, on any of its property or upon the liens provided herein prior to the date on which penalties attach thereto; it shall promptly pay any valid, final judgment enforcing any such tax and cause the
same to be satisfied of record and shall also pay, or 

  

 
cause to be paid, when due all claims for labor, material, supplies or services that, if unpaid, could by law result in a mechanics’ lien. 

 
 (b) It shall notify the Buyer promptly upon obtaining knowledge of any
material action, suit or proceeding at law or in equity by or before any government authority, arbitral tribunal or other body pending or threatened against it or the Seller. 
  
 5.02 NCMC covenants and agrees that: 
  
 (a) It shall not (i) create, incur, assume or permit to exist any lien upon any of the Pledged Collateral, or (ii) directly
or indirectly create, incur or suffer to exist any indebtedness payable by the Seller except any indebtedness incurred under the Program Documents. 
  
 (b) Without the prior written consent of the Buyer, it will not (i) vote to enable, or take any other action to permit, the Seller to issue any ownership
or other equity securities of any nature or to issue any other securities convertible into or granting the right to purchase or exchange for any ownership interest or other equity securities of the Seller or (ii) sell, assign, transfer, exchange or
otherwise dispose of, or grant any option with respect to, the Pledged Collateral. 
  
 (c) It shall not file or cause or suffer to be filed with respect to the Seller a voluntary petition in bankruptcy to seek relief for the Seller under any provision of any bankruptcy, reorganization, moratorium,
delinquency, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction whether now or subsequently in effect, or consent to the filing of any petition against the Seller under any such law, or consent to the
appointment of or taking possession by a custodian, receiver, conservator, trustee, liquidator, sequestrator or similar official for the Seller, or of all or any part of the Seller’s property, or make an assignment for the benefit of the
Seller. 
  
 5.03 NCFC covenants and agrees that it will take all
steps necessary to maintain its status as a REIT. 
  
 6.
Further Assurances; Remedies. In furtherance of the grant of the pledge and security interest pursuant to Section 3 hereof, NCMC hereby agrees with the Buyer as follows: 
  
 6.01 Delivery and Other Perfection. NCMC shall: 
  
 (a) if any Pledged Collateral required to be pledged by NCMC under Section 3 hereof is received by NCMC, forthwith either
(x) transfer and deliver to the Buyer such certificates or securities so received by NCMC (together with the ownership certificates and securities duly endorsed in blank or accompanied by undated conveyance powers duly executed in blank), all of
which thereafter shall be held by the Buyer, pursuant to the terms of this Guaranty, as part of the Pledged Collateral or (y) take such other action as the Buyer shall deem necessary or appropriate to record duly the lien 

  

 
created hereunder in such ownership interests, equity, securities, moneys, property or other interests in said clauses; and 
  
 (b) give, execute, deliver, file and/or record any financing statements,
continuation statement, notice, instrument, document, agreement or other papers that may be necessary or desirable (in the judgment of the Buyer) to create, preserve, perfect or validate the security interest granted pursuant hereto or to enable the
Buyer to exercise and enforce its rights hereunder with respect to such pledge and security interest (including, without limitation, causing any or all of the Pledged Collateral to be transferred of record into the name of the Buyer or its nominee
(and the Buyer agrees that if any Pledged Collateral is transferred into its name or the name of its nominee, it will thereafter promptly give to NCMC copies of any notices and communications received by it with respect to the applicable Pledged
Collateral)); without limiting the generality of the foregoing, if any Pledged Collateral shall be evidenced by a promissory note or other instrument, NCMC shall deliver and pledge to the Buyer such note or instrument duly endorsed or accompanied by
duly executed instruments of transfer or assignment, all in form and substance satisfactory to the Buyer. 
  
 6.02 Other Financing Statements and Liens. Without the prior consent of the Buyer, NCMC shall not file or suffer to be on file or filed, or
authorize or permit to be filed or to be on file, in any jurisdiction, any financing statement or like instrument with respect to the Pledged Collateral in which the Buyer is not named as the sole secured party. 
  
 6.03 Preservation of Rights. The Buyer shall not be required to take
any steps necessary to preserve any rights against prior parties to any of the Pledged Collateral. 
  
 6.04 Pledged Collateral. 
  
 (a) Except as provided in Section 3.04(b) above and notwithstanding anything to the contrary herein or in the Master Repurchase Agreement or any documents
referenced therein, so long as no Event of Default shall have occurred and be continuing, NCMC shall have the right to exercise all voting and corporate rights pertaining to the Pledged Collateral for all purposes not inconsistent with the terms of
this Agreement, the Master Repurchase Agreement or any documents referenced therein; provided that 
  
 (i) NCMC agrees that it will not vote the Pledged Collateral in any manner that is inconsistent with the terms of this Guaranty, the Master Repurchase
Agreement or any documents referenced therein and (ii) the Buyer shall execute and deliver to NCMC or cause to be executed and delivered to NCMC all such proxies, powers of attorney, dividend and other orders, and all such instruments, without
recourse, as NCMC may reasonably request for the purpose of enabling NCMC to exercise the rights and powers which it is entitled to exercise pursuant to this Section 6.04. 
  

 (b) Any provisions of the Operating Documents of the Seller restricting the transferability of the
ownership interests in the Seller shall not apply to the exercise by the Buyer of any of its rights and remedies under the Master Repurchase Agreement or any document referenced therein or to any sale, assignment, transfer or other disposition by
the Buyer of all or any part of any ownership interest in the Seller. 
  
 (c) NCMC recognizes and agrees that the Buyer has an absolute and unconditional right to liquidate the Pledged Collateral upon an Event of Default. NCMC agrees not to seek any equitable or other relief to delay or prevent the Buyer from
exercising its right to liquidate the Pledged Collateral upon an Event of Default. Further, NCMC recognizes and agrees that (i) the Pledged Collateral is not unique, (ii) NCMC will not be irreparably harmed if the Pledged Collateral is liquidated by
the Buyer upon an Event of Default, and (iii) in the event NCMC has a claim or cause of action against the Buyer for liquidation of the Pledged Collateral or other actions of the Buyer, money damages will be sufficient to satisfy such claim or cause
of action. 
  
 6.05 Events of Default, Etc. During the
period during which an Event of Default has occurred and be continuing: 
  
 (a) the Buyer shall have all of the rights and remedies with respect to the Pledged Collateral of a secured party under the UCC and such additional rights and remedies to which a secured party is entitled under the laws in effect in any
jurisdiction where any rights and remedies hereunder may be asserted (including, without limitation, the right, to the maximum extent permitted by law, to exercise all voting, consensual and other powers of ownership pertaining to the Pledged
Collateral as if the Buyer were the sole and absolute owner thereof (and NCMC agrees to take all such action as may be appropriate to give effect to such right)); 
  
 (b) the Buyer may make any reasonable compromise or settlement deemed desirable with respect to any of the Pledged
Collateral and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms of, any of the Pledged Collateral; 
  
 (c) the Buyer may, in its name or in the name of NCMC or otherwise, demand, sue for, collect or receive any money or property at any time payable or
receivable on account of, or in exchange for, any of the Pledged Collateral, but shall be under no obligation to do so; and 
  
 (d) the Buyer may, with respect to the Pledged Collateral or any part thereof which shall then be or shall thereafter come into the possession, custody or
control of the Buyer or any of its agents, sell, lease, assign or otherwise dispose of all or any part of such Pledged Collateral, at such place or places as the Buyer deems best, and for cash or for credit or for future delivery (without thereby
assuming any credit risk), at public or private sale, without demand of performance or notice of intention to effect any such disposition or of the time or place thereof (except such notice as is required above or by applicable statute and cannot be
waived), and any Person may be the purchaser, 

  

 
lessee, assignee or recipient of any or all of the Pledged Collateral so disposed of at any public sale (or, to the extent permitted by law, at any private
sale) and thereafter hold the same absolutely free from any claim or right of whatsoever kind, including any right or equity of redemption (statutory or otherwise), of NCMC, any such demand, notice and right or equity being hereby expressly waived
and released. The Buyer may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for the sale, and such sale may be made at any time or
place to which the sale may be so adjourned. 
  
 NCMC recognizes
that, by reason of certain prohibitions contained in the Securities Act of 1933, as amended (the “Securities Act”), and applicable state securities laws, the Buyer may be compelled, with respect to any sale of all or any part of the
Pledged Collateral which constitutes a “security” under the Securities Act, to limit purchasers to those who will agree, among other things, to acquire such Pledged Collateral for their own account, for investment and not with a view to
the distribution or resale thereof. NCMC acknowledges that any such private sale may be at prices and on terms less favorable to the Buyer than those obtainable through a public sale without such restrictions, and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner and that the Buyer shall not have any obligation to engage in public sales and no obligation to delay the sale of any such Pledged
Collateral for the period of time necessary to permit the respective issuer thereof to register it for public sale. 
  
 6.06 Removals, Etc. Without at least thirty (30) days’ prior notice to the Buyer, NCMC shall not change the name under which it does business
from the name shown on the signature pages hereto. 
  
 6.07
Private Sale. The Buyer shall not incur any liability as a result of the sale of the Pledged Collateral, or any part thereof, at any private sale pursuant to Section 6.05 hereof conducted in good faith. NCMC hereby waives any claims against
the Buyer by reason of the fact that the price at which the Pledged Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale or was less than the aggregate amount of the
Obligations. 
  
 6.08 Attorney-in-Fact. Upon the occurrence
and during the continuance of any Event of Default, the Buyer is hereby appointed the attorney-in-fact of NCMC for the purpose of carrying out the provisions of this Section 6 and taking any action and executing any instruments which the Buyer may
deem necessary or advisable to accomplish the purposes hereof, which appointment as attorney-in-fact is irrevocable and coupled with an interest. Without limiting the generality of the foregoing, so long as the Buyer shall be entitled under this
Section 6 to make collections in respect of the Pledged Collateral, the Buyer shall have the right and power to receive, endorse and collect all checks made payable to the order of NCMC representing any dividend, payment or other distribution in
respect of the Pledged Collateral or any part thereof and to give full discharge for the same. 
  

 6.09 Termination. When all of the Obligations shall have been paid in full, this Agreement shall
terminate and the Buyer shall forthwith cause to be assigned, transferred and delivered, against receipt but without any recourse, warranty or representation whatsoever, any remaining Pledged Collateral and money received in respect thereof, to or
on the order of NCMC. 
  
 6.10 Expenses. NCMC agrees to
pay, and the Obligations shall include, all out-of-pocket expenses (including reasonable expenses for legal services of every kind) of, or incident to the enforcement of any of the provisions of this Section 6, or performance by the Buyer of any
obligations of NCMC in respect of the Pledged Collateral which NCMC has failed or refused to perform, or any actual or attempted sale, or any exchange, enforcement, collection, compromise or settlement in respect of any of the Pledged Collateral,
and for the care of the Pledged Collateral and defending or asserting rights and claims of the Buyer in respect thereof, by litigation or otherwise. 
  
 6.11 Further Assurances. NCMC agrees to, from time to time upon the request of the Buyer, execute and deliver such further documents and do such
other acts and things as the Buyer may reasonably request in order to effectuate the purposes of this Guaranty. 
  
 7. Right of Set-off. Upon the occurrence of any Event of Default, the Guarantors hereby irrevocably authorize the Buyer or any of its Affiliates at
any time and from time to time without notice to the Guarantors, any such notice being expressly waived by the Guarantors, to set-off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the Buyer or any of its Affiliates to or for the credit or
the account of the Guarantors, or any part thereof in such amounts as the Buyer may elect, against and on account of the obligations and liabilities of the Guarantors to the Buyer hereunder and claims of every nature and description of the Buyer or
any of its Affiliates against the Guarantors, in any currency, whether arising hereunder, under the Master Repurchase Agreement as the Buyer may elect, whether or not the Buyer has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. The Buyer shall notify the Guarantors promptly of any such set-off and the application made by the Buyer, provided that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of the Buyer and its Affiliates under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Buyer and its Affiliates may have. 
  
 8. No Subrogation. Notwithstanding any payment or payments made by the
Guarantors hereunder or any set-off or application of funds of the Guarantors by the Buyer or any of its Affiliates, the Guarantors shall not be entitled to be subrogated to any of the rights of the Buyer against the Seller or any other guarantor or
any collateral security or guarantee or right of offset held by the Buyer for the payment of the Obligations, nor shall the Guarantors seek or be entitled to seek any contribution or 

  

 
reimbursement from the Seller or any other guarantor in respect of payments made by the Guarantors hereunder, until all amounts owing to the Buyer by the
Seller on account of the Obligations are paid in full and the Master Repurchase Agreement is terminated. If any amount shall be paid to the Guarantors on account of such subrogation rights at any time when all of the Obligations shall not have been
paid in full, such amount shall be held by the Guarantors in trust for the Buyer, segregated from other funds of each Guarantor, and shall, forthwith upon receipt by the Guarantors, be turned over to the Buyer in the exact form received by the
Guarantors (duly indorsed by the related Guarantor to the Buyer, if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Buyer may determine. 
  
 9. Amendments, Etc. with Respect to the Obligations. The Guarantors
shall remain obligated hereunder notwithstanding that, without any reservation of rights against the Guarantors and without notice to or further assent by the Guarantors, any demand for payment of any of the Obligations made by the Buyer may be
rescinded by the Buyer and any of the Obligations continued, and the Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from
time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Buyer, and the Master Repurchase Agreement and any other documents executed and delivered in connection
therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Buyer may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Buyer for the payment of the
Obligations may be sold, exchanged, waived, surrendered or released. The Buyer shall not have any obligation to protect, secure, perfect or insure any lien at any time held by it as security for the Obligations or for this Guaranty or any property
subject thereto. When making any demand hereunder against any Guarantor, the Buyer may, but shall be under no obligation to, make a similar demand on the Seller or any other guarantor, and any failure by the Buyer to make any such demand or to
collect any payments from the Seller or any such other guarantor or any release of the Seller or such other guarantor shall not relieve the Guarantors of their obligations or liabilities hereunder, and shall not impair or affect the rights and
remedies, express or implied, or as a matter of law, of the Buyer against the Guarantors. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
  
 10. Waiver of Rights. The Guarantors waive any and all notice of the
creation, renewal, extension or accrual of any of the Obligations, and notice of or proof of reliance by the Buyer upon this Guaranty or acceptance of this Guaranty; the Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Guaranty; and all dealings between the Seller and the Guarantors, on the one hand, and the Buyer, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon this Guaranty. The Guarantors waive diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Seller or the Guarantors with respect to the
Obligations. 
  

 11. Guaranty Absolute and Unconditional. The Guarantors understand and agree that this Guaranty
shall be construed as a continuing, absolute and unconditional guarantee of the full and punctual payment and performance by the Seller of the Obligations and not of their collectibility only, and is in no way conditioned upon any requirement that
the Buyer first attempt to collect any of the obligations from the Seller, without regard to (a) the validity, regularity or enforceability of the Master Repurchase Agreement, any of the Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to time held by the Buyer, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by
the Seller against the Buyer, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Seller or the Guarantors) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Seller
from the Obligations, or of the Guarantors from this Guaranty, in bankruptcy or in any other instance. When pursuing its rights and remedies hereunder against the Guarantors, the Buyer may, but shall be under no obligation to, pursue such rights and
remedies as it may have against the Seller or any other Person or against the Pledged Collateral or any other collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Buyer to pursue
such other rights or remedies or to collect any payments from the Seller or any such other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Seller or any such other
Person or any such collateral security, guarantee or right of offset, shall not relieve the Guarantors of any liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of
the Buyer against the Guarantors. This Guaranty shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Guarantors and the successors and assigns thereof, and shall inure to the benefit of the
Buyer, and its successors, indorsees, transferees and assigns, until all the Obligations and the obligations of the Guarantors under this Guaranty shall have been satisfied by payment in full and the Master Repurchase Agreement shall be terminated,
notwithstanding that from time to time during the term of the Master Repurchase Agreement the Seller may be free from any Obligations. 
  
 12. Reinstatement. This Guaranty shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof,
of any of the Obligations is rescinded or must otherwise be restored or returned by the Buyer upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Seller or any of the Guarantors, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Seller or any of the Guarantors or any substantial part of its property, or otherwise, all as though such payments had not been made. 
  
 13. Payments. The Guarantors hereby guarantee that payments hereunder
will be paid to the Buyer without set-off or counterclaim in U.S. Dollars in accordance with the wiring instructions of the Buyer. 
  

 14. Notices. All notices, requests and other communications provided for herein (including without
limitation any modifications of, or waivers, requests or consents under, this Guaranty) shall be given or made in writing (including without limitation by telex or telecopy) and delivered to the intended recipient at the “Address for
Notices” specified on the signature page hereto; or, as to any party, at such other address as shall be designated by such party in a written notice to each other party. All such communications shall be deemed to have been duly given when
transmitted by telex or telecopy or personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid. 
  
 15. Severability. Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. 
  
 16. Integration. This Guaranty
and the Master Repurchase Agreement represent the agreement of the Guarantors with respect to the subject matter hereof and thereof and there are no promises or representations by the Buyer relative to the subject matter hereof or thereof not
reflected herein or therein. 
  
 17. Amendments in Writing; No
Waiver; Cumulative Remedies. (a) None of the terms or provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the Guarantors and the Buyer, provided that any provision of
this Guaranty may be waived by the Buyer. 
  
 (b) The Buyer shall
not by any act (except by a written instrument pursuant to Section 17(a) hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or in any
breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of the Buyer, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Buyer of any right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy which the Buyer would otherwise have on any future occasion. 
  
 (c) The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. 
  
 18. Section Headings. The section headings used in this Guaranty are
for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof. 
  

 19. Successors and Assigns. This Guaranty shall be binding upon the successors and assigns of the
Guarantors and shall inure to the benefit of the Buyer and its successors and assigns. This Guaranty may not be assigned by any of the Guarantors without the express written consent of the Buyer. 
  
 20. Governing Law. THIS GUARANTY SHALL BE GOVERNED BY NEW YORK LAW
WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE. 
  
 21.
SUBMISSION TO JURISDICTION; WAIVERS. EACH GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY: 
  
 (A) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY AND THE MASTER REPURCHASE AGREEMENT, OR FOR
RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;

  
 (B) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE
BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT
AND AGREES NOT TO PLEAD OR CLAIM THE SAME; 
  
 (C) AGREES
THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT
SUCH OTHER ADDRESS OF WHICH THE BUYER SHALL HAVE BEEN NOTIFIED; AND 
  
 (D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION. 
  
 22. WAIVER OF JURY TRIAL. EACH GUARANTOR HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, THE MASTER REPURCHASE AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

  

 23. Security Agreement. This Guaranty shall constitute a “security agreement” within the
meaning of the UCC. NCMC, by executing and delivering this Guaranty, has granted and hereby grants to the Buyer, as security for the Obligations, a security interest in the Pledged Collateral that may be subject to the UCC. 
  
 24. Other Liens. Notwithstanding anything to the contrary contained
herein, liens previously granted by the Guarantors in favor of the Buyer or future liens that are granted by the Guarantors in favor of the Buyer will not constitute a breach of this Guaranty. 
  
 25. Agents. The Buyer may employ agents and attorneys-in-fact in
connection herewith and shall not be responsible for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good faith. 
  
 26. Counterparts. This Guaranty may be executed in any number of counterparts, all of which when taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Guaranty by signing any such counterpart. 
  
 [Signature Page Follows] 
  

 IN WITNESS WHEREOF, the parties hereto have caused this Guaranty to be duly executed and delivered as of
the day and year first above written. 
  

									
	NEW CENTURY MORTGAGE CORPORATION, jointly and severally as Guarantor	 	 	 	 	 	Address for Notices with respect to each of the foregoing:
					
	 By:
	 	 /s/ Kevin Cloyd
	 	 	 	 	 	 18400 Von Karman, Suite 1000

	 Name:
	 	 Kevin Cloyd
	 	 	 	 	 	 Irvine, California 92612

	 Title:
	 	 Executive Vice President
	 	 	 	 	 	 Attention: Stergios Theologides, Esq.

	 	 	 	 	 	 	 	 	 Telephone: (949) 863-7243

	 	 	 	 	 	 	 	 	 Facsimile: (949) 440-7030

  

			
	NEW CENTURY FINANCIAL CORPORATION (f/k/a New Century REIT, Inc.), jointly and severally as Guarantor
		
	 By:
	 	 /s/ Kevin Cloyd

	 Name:
 Title:
	 	 Kevin Cloyd
 Executive Vice President

		
	 By:
	 	 /s/ Brad A. Morrice

	 Name:
 Title:
	 	 Brad A. Morrice
 Vice Chairman, President, Chief Operating Officer

  

									
	 CITIGROUP GLOBAL MARKETS REALTY CORP.
  
	 	 	 	 Address for Notices:
 390 Greenwich Street, 6th Floor
 New York, New York 10013
 Attention: James Xanthos
 Telephone: (212) 723-4144
 Facsimile: (212) 723-8591

	 By:
	 	 /s/ Evan Mitnick
	 	 	 
	 Name:
	 	 Evan Mitnick
	 	 	 
	 Title:
	 	 DirectorAmended and Restated Purchase and Sale Agmt., dated as of 10/01/2004

 Exhibit 10.7 
  
 AMENDED AND RESTATED PURCHASE AND SALE AGREEMENT 
  
 From time to time Citigroup Global Markets Realty Corp. (“Citigroup”) and NC Capital Corporation (“NC
Capital”) and New Century Credit Corporation (“NC Credit”; and jointly and severally with NC Capital, the “Sellers”) may engage in purchase and sale transactions whereby either Seller sells to Citigroup adjustable rate and
fixed rate one- to-four family first lien and second lien mortgage loans acceptable to Citigroup in its sole discretion (“Eligible Mortgage Loans”) and related servicing rights at a price equal to the Purchase Price (as defined herein) and
whereby, on a date fixed by agreement between Citigroup and such Seller, the Seller agrees to repurchase such Eligible Mortgage Loans and related servicing rights from Citigroup, and Citigroup agrees to resell such Mortgage Loans and related
servicing rights to the Seller, at the repurchase price, which is based on the Purchase Price and reflects the agreed upon return to Citigroup (the “Repurchase Price”), all subject to and in accordance with the terms and conditions set
forth below. All such Eligible Mortgage Loans which shall at any time have been delivered to Citigroup and not yet repurchased by the related Seller hereunder, together with all rights related thereto, shall hereinafter be referred to as the
“Mortgage Loans” and the date on which Citigroup purchases each such Mortgage Loan shall be referred to as the “Purchase Date.” Capitalized terms used but not defined herein shall have the meanings set forth in the amended and
restated letter agreement, dated October 1, 2004 (the “Letter Agreement”) among Citigroup, NC Credit, NC Capital and New Century Mortgage Corporation (“NC Mortgage”) and the Seller. This Amended and Restated Purchase and Sale
Agreement shall be deemed to amend and restate that certain Purchase and Sale Agreement dated as of January 1, 2003, as amended, between Citigroup and NC Capital. 
  
 The “Purchase Price,” with respect to Standard Mortgage Loans, Special Risk Mortgage Loans, High Balance/High LTV
Mortgage Loans and Fallout Mortgage Loans, is defined in Sections 2(a), (b), (c) and (d), respectively of the Letter Agreement. Notwithstanding the foregoing, the “Purchase Price” for each Mortgage Loan will be reduced by the amount of any
Collateral Value Deficiency paid by the related Seller with respect to such Mortgage Loan. 
  
 Terms and conditions applicable to each purchase and sale transaction: 
  
 1. If a Seller and Citigroup agree to enter into a purchase and sale transaction, then on the same day such Seller shall sell and deliver to Citigroup or
its agent the agreed upon Eligible Mortgage Loans, together with all rights related thereto, against the crediting of the Purchase Price for such transaction to an account of the Seller in immediately available funds. Each of the Sellers represents
and warrants that it has the unqualified right to sell, transfer, assign or pledge the Eligible Mortgage Loans that will become Mortgage Loans and that such Mortgage Loans, upon delivery to Citigroup, will be free and clear of any lien, claim or
encumbrance. Each of the Sellers further represents that this Agreement is legally entered into by such Seller, does not violate any ordinance, charter, rule or statute applicable to it and that the person executing this Agreement on behalf of such
Seller has been duly and properly authorized to do so. Each of the Sellers hereby represents and warrants that as of the Purchase Date of any Mortgage Loan, each of the representations and warranties specified on Exhibit A attached hereto are true
and correct and each of the representations and warranties specified on Exhibit B attached hereto are true and correct as to each of the Mortgage Loans delivered to 

  

 
Citigroup on such date. With respect to the representations and warranties contained in Exhibit B attached hereto which are made to the knowledge or the best
of knowledge of the Sellers, or as to which the Sellers have no knowledge, if it is discovered that the substance of any such representation and warranty was materially inaccurate as of the date such representation and warranty was made or deemed to
be made, and such inaccuracy materially and adversely affects the value of the related Mortgage Loan or the interest therein of Citigroup, then notwithstanding the lack of knowledge by the Sellers, with respect to the substance of such
representation and warranty being materially inaccurate at the time the representation and warranty was made, Citigroup shall have the rights set forth in the preceding sentence. 
  
 2. No later than the business day on which each purchase and sale transaction as described in paragraph 1 is effected,
Citigroup shall send to the related Seller a confirmation (the “Confirmation”) setting forth with respect to such purchase and sale transaction: the Eligible Mortgage Loans subject thereto; the Purchase Price of such Eligible Mortgage
Loans; the applicable interest rate charged; the date fixed for the resale to the Seller of the Mortgage Loans; and the Repurchase Price. Each Confirmation shall be binding upon the parties hereto unless written notice of objection is given by the
objecting party within one (1) business day after the objecting party’s receipt of such confirmation. Each purchase of Mortgage Loans from the related Seller by Citigroup and sale of Mortgage Loans by Citigroup to the related Seller shall also
be evidenced by a trade confirmation between Citigroup and such Seller. In addition, such Seller shall deliver to Citigroup on each Purchase Date a Bill of Sale with respect to the related Mortgage Loans in the form of Exhibit C hereto. 

 
 3. On the date fixed for repurchase of any Mortgage Loan, such repurchase
will be effected by delivery to the related Seller or its agent of the Mortgage Loans against the crediting of the Repurchase Price to an account of Citigroup in immediately available funds. 
  
 4. If, with respect to the Mortgage Loans, Citigroup at any time determines,
in its sole discretion, that there exists a Collateral Value Deficiency (as defined below) and Citigroup notifies the Seller in writing of such Collateral Value Deficiency, the related Seller shall, no later than one (1) Business Days after receipt
of such notice, pay to Citigroup an amount equal to such Collateral Value Deficiency, such that after giving effect to such payment, the Collateral Value Deficiency is reduced to zero. With respect to the Mortgage Loans, Collateral Value Deficiency
shall mean any time the excess, if any, of (a) the outstanding Purchase Price of such Mortgage Loan over (b) the Market Value of such Mortgage Loan. “Purchase Price,” with respect to Standard Mortgage Loans, Special Risk Mortgage Loans,
High Balance/High LTV Mortgage Loans and Fallout Mortgage Loans, is defined in Sections 2(a), (b), (c) and (d), respectively of the Letter Agreement. “Market Value” shall mean, as of any date in respect of any Standard Mortgage Loan or any
Non-Standard Mortgage Loan, the value of such Mortgage Loan as determined by Citigroup in its sole discretion. Citigroup shall have the right to mark-to-market the Mortgage Loan on a daily basis. 
  
 5. Upon a Seller Event of Default (as defined in paragraph 7 hereof),
Citigroup may re-register any of the Mortgage Loans in its name or the name of its agent and may resell the Mortgage Loans, with the right to re-register given to the purchaser. 
  

 6. Each Seller has delivered to Citigroup its most recent financial statements and represents that such
statements fairly represent its financial condition as to the date of such statements. Each Seller also represents that there has been no material adverse change in its financial condition since that date. Each Seller shall promptly deliver to
Citigroup all financial statements subsequently made available by it to any creditor of such Seller or any regulator of a substantial portion of its business. Each Seller agrees that its agreement to enter into each repurchase transaction shall
constitute a representation that there has been no material adverse change in its financial condition since the date of the latest such statement. 
  
 7. The occurrence of any of the following shall constitute a “Seller Event of Default”: 
  
 (a) the judgment by Citigroup in good faith that a material
adverse change has occurred with respect to the business, properties, assets or condition (financial or otherwise) of a Seller; 
  
 (b) Citigroup shall reasonably request, specifying the reasons for such request, information, and/or written responses to such requests,
regarding the financial well-being of a Seller and such information and/or responses shall not have been provided within three business days of such request; 
  

(c) Either (A) a change in control of a Seller shall have occurred without the consent of Citigroup, other than in connection with and
as a result of the issuance and sale by a Seller of registered, publicly offered common stock; or (B) Citigroup determines in its sole discretion that any material adverse change has occurred in the management of a Seller; 
  
 (d) There is (A) a material breach by a Seller of any
representation and warranty contained in this Agreement, other than a representation or warranty relating to a particular Mortgage Loan, and Citigroup has reason to believe in good faith either that such breach is not curable within 30 days or that
such breach may not have been cured in all material respects at the expiration of 30 days following discovery thereof by a Seller or (B) a failure by a Seller to make any payment payable by it hereunder or (C) any other failure by a Seller to
observe and perform in any material respect its material covenants, agreements and obligations with Citigroup, including without limitation those contained in this Agreement or any other agreement between Citigroup and a Seller, and Citigroup has
reason to believe in good faith that such failure may not have been cured in all material respects at the expiration of 30 days following discovery thereof by any Seller; 
  
 (e) [Reserved]; 
  
 (f) If a Seller shall fail to fully and timely perform any obligation to Citigroup or to any broker, dealer, bank or other financial
institution in respect of a transaction involving securities, commodities or other instruments (“Instruments”) (regardless of whether Citigroup has any right, title or interest therein); 
  

 (g) If a Seller admits its inability or Citigroup reasonably believes a Seller is unable
to perform fully when such performance will become due any obligation on such Seller’s part to any broker, dealer, bank or other financial institution in respect of a transaction involving Instruments not then due (regardless of whether
Citigroup has any right, title or interest therein); 
  
 (h) If a Seller shall make an assignment for the benefit of creditors, or admit in writing its inability to pay debts as they become due, or generally not pay its debts as they become due, or file any petition, application or answer seeking
for itself any entry of an order for relief, protective decree, reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the Bankruptcy Code or any other federal, state or foreign, present or future,
statute, law or regulation, or be subject to any such order for relief or protective decree entered by a court, or file any answer admitting or not controverting the material allegations of such a petition or application filed against a Seller, or
seek or acquiesce in the appointment or designation of, on taking possession by, any trustee, receiver, liquidator or agent in respect of all or a substantial part of a Seller’s property, or a Seller’s trustees, directors, majority
shareholders, partners or other principals, as the case may be, shall take any action looking to the dissolution or liquidation of a Seller or to the taking of any action described in this paragraph (h), or any of the foregoing shall occur in
respect of any one or more of a Seller’s general partners, principals or parent entities or other persons exercising control over a Seller; 
  
 (i) If an action shall be commenced or a petition or application shall be filed against a Seller seeking any order for relief, protective
decree, reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the Bankruptcy Code, Securities Investor Protection Act or any federal, state or foreign present or future statute, law or regulation
and such action, petition or application shall not have been dismissed or all orders or proceedings thereunder stayed or vacated, or such stay shall be set aside, or any trustee, receiver, liquidator or agent of all or a substantial part of a
Seller’s property shall be appointed or designated and such appointment or designation shall not have been vacated, or any of the foregoing shall occur in respect of any one or more of a Seller’s general partners, principals or parent
entities or other persons exercising control over a Seller; 
  
 (j) If a judgment for the payment of money or affecting all or a substantial part of a Seller’s business or property shall be entered or rendered against such Seller, and such judgment shall not have been
discharged in full or effectively stayed as to enforcement and execution; 
  
 (k) If a Seller shall default (as principal, guarantor or surety) in the performance of any material contract or in the payment of any principal or interest on any indebtedness or in the performance of or compliance
with any agreement, instrument or other writing evidencing such indebtedness or delivered pursuant thereto or in connection therewith, which default shall have continued beyond any applicable period of grace and, in the case of a default in respect
of indebtedness, would permit the holder of such indebtedness to accelerate payment of the principal thereof; 
  

 (l) If any statement of a Seller’s financial condition prepared by such Seller or at
its request shall indicate that, or it shall have acknowledged that, such Seller has a negative net worth or is insolvent; 
  
 (m) If the Securities and Exchange Commission, Commodity Futures Trading Commission, any securities or commodities exchange or
association, any banking department or authority, or any other business association or governmental entity or authority shall revoke, cancel, enjoin, suspend or fail to renew a Seller’s registration, licensing, qualification or other
authorization to do business in respect of any type of business or any geographic area, or any of the foregoing shall occur in respect of any one or more of a Seller’s general partners, principals or parent entities or other persons exercising
control over a Seller; 
  
 (n) If a Seller shall
fail to maintain, or acknowledge that it has failed to maintain, sufficient net capital or any other indicia of financial condition as required by any rule or regulation applicable to such Seller of the Securities and Exchange Commission, Commodity
Futures Trading Commission, any securities or commodities exchange or association, any banking department or authority, or any other business association or governmental entity or authority; 
  
 (o) If any securities or commodities exchange or association
or other business association shall revoke, cancel, enjoin, suspend or fail to renew a Seller’s membership; 
  
 (p) If there shall have occurred any outbreak or material escalation of hostilities, declaration by the United States of a national
emergency or war or other calamity or crisis, the effect of which on the financial markets is such as to make it, in the judgment of Citigroup, impracticable to continue this Agreement; 
  
 (q) If a Seller or any of its affiliates shall default in respect of any transaction with Citigroup or any
of its affiliates; 
  
 (r) A Seller’s
default in the payment of the amount of any Collateral Value Deficiency for more than one (1) Business Day after receipt of written notice of such Collateral Value Deficiency as provided in Section 2(e) of the Letter Agreement; or 
  
 (s) A default by NC Residual II Corporation under the
provisions of the Global Master Repurchase Agreement, dated as of December 11, 1998, between Salomon Smith Barney Inc., as agent for Salomon Brothers International Ltd. and NC Residual II Corporation. 
  
 Notwithstanding any other provision of this Agreement, any grace or notice
period provided herein in respect of a notice to be given or action to be taken by Citigroup may be shortened or eliminated by Citigroup if, in its sole good faith discretion, it is reasonable to do so under the circumstances, taking into
consideration, among other things, the volatility of the market for the collateral involved, the extent and nature of any Seller Events of Default (or 

  

 
events which with the giving of such notice and passage of time would constitute Seller Events of Default), and the risks inherent in deferring the exercise
of remedies for the otherwise applicable grace or notice period. 
  
 8. If a Seller Event of Default shall have occurred and be continuing, Citigroup may, upon notice to the Sellers (which notice shall not be required to be given in advance in the case of a Seller Event of Default of a type described in
paragraph 6(h) or (i)), (a) terminate or accelerate to a date designated by Citigroup the date fixed for termination of the directly affected purchase and sale transaction or all of the purchase and sale transactions hereunder and (b) to the extent
any portion of the Repurchase Price is not repaid by the related Seller on such date, sell a sufficient amount of the Mortgage Loans in a commercially reasonable manner or elect to be deemed to have sold to the related Seller such Mortgage Loans,
and in either event apply the proceeds of such sale (excluding any reasonable expenses incurred in connection therewith) or, in the case of a deemed sale, the market value of such Mortgage Loans as of the date of such deemed sale, against the
payment of the Repurchase Price and any other amounts owing by the related Seller under this Agreement, upon which application the Repurchase Price or any such other amounts shall be reduced by the amount as applied and Citigroup shall be released
from any obligation to sell, return or redeliver such Mortgage Loans. If any Mortgage Loans remain after all obligations of the related Seller under this Agreement have been satisfied, Citigroup or its agent shall promptly return to the related
Seller or its agent the balance of the Mortgage Loans. If the Mortgage Loans are not sufficient to satisfy all such obligations, the Sellers shall be liable to Citigroup for the amount of remaining obligations plus interest at the then prevailing
effective Federal Funds Rate as determined by Citigroup in its sole discretion. Notwithstanding anything contained in this Agreement, except as expressly provided for in this paragraph 8, Citigroup shall under no circumstances whatsoever have any
obligation or liability to a Seller in respect of any purchase and sale transaction following the failure of the related Seller to pay the applicable Repurchase Price or deliver the applicable Mortgage Loans as and when required by the terms of this
Agreement. 
  
 In addition, the Sellers agree to provide written
notification to the Purchaser of any material change in its loan origination, acquisition or appraisal guidelines or practices and if the Sellers fail to provide such notification without the Purchaser’s consent, the Purchaser shall have the
right to refuse to provide financing for any Mortgage Loan originated, acquired or appraised under such materially different guidelines. 
  
 9. The occurrence of any of the following shall constitute a “Citigroup Event of Default”: 
  
 (a) If the Purchase Price is not paid as specified in the
second paragraph of this Agreement; 
  
 (b) If
Citigroup shall make a general assignment for the benefit of creditors; admit in writing its inability to pay its debts as they become due; file a petition in bankruptcy or a petition seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or future bankruptcy, reorganization, insolvency or similar statute, law or regulation or seek the 

  

 
appointment of any trustee, receiver, custodian or liquidator of Citigroup or of all or substantially all of its properties; 
  
 (c) If a proceeding is commenced against Citigroup seeking
relief or an appointment of a type described in paragraph 9(b) above and such proceeding is not dismissed within 30 days after the commencement thereof; 
  
 (d) If a final judgment for the payment of money shall be rendered against Citigroup, and such judgment shall not have been discharged or
its execution stayed pending appeal within 60 days of entry or such judgment shall not have been discharged within 60 days of expiration of any such stay; 
  
 (e) If Citigroup shall have defaulted under this Agreement by operation of clause (a) of the second sentence of paragraph 16 below, and
such default is not cured within three business days after notice; or 
  
 (f) If Citigroup or any of its affiliates shall default in respect of any transaction with a Seller or any of its affiliates. 
  
 10. If an Citigroup Event of Default shall have occurred and be continuing, the Sellers may, upon one business day’s prior notice to Citigroup, which
notice shall not be required to be given in advance in the case of an Citigroup Event of Default of a type described in paragraph 9(b) or (c), (a) terminate or accelerate to a date designated by the Sellers the date fixed for termination of the
directly affected purchase and sale transaction or all purchase and sale transactions hereunder and (b) purchase in a commercially reasonable manner Eligible Mortgage Loans with a market value equal to any Mortgage Loans required to be returned or
delivered by Citigroup but not so returned or delivered and apply the cost of such purchase (including any reasonable expenses incurred in connection therewith) against the Repurchase Price and any other amounts owing by the Sellers under this
Agreement, upon which application the Repurchase Price and any such other amounts shall be reduced by the amount so applied and Citigroup shall be released from any obligation to sell, return or deliver such Mortgage Loans. After all obligations of
Citigroup under this Agreement have been satisfied, the Sellers shall promptly pay Citigroup any portion of such positive amount (after such reduction) which has not previously been paid. Citigroup shall pay promptly to the Sellers any excess of
such cost of purchase of replacement Eligible Mortgage Loans (including expenses as aforesaid) over the amount of the Repurchase Price (prior to reduction), plus interest on such excess for the period from the date of such purchase until the date of
full payment by Citigroup at the then prevailing effective Federal Funds Rate. 
  
 11. Each Seller represents that it will have the authority to enter into and perform any purchase and sale transactions under this Agreement. Each party represents that the person executing this Agreement and the
persons executing transactions under this Agreement on its behalf have and will have the authority to do so and that this Agreement does not conflict with any other agreement binding on such party. 
  

 12. The Mortgage Loans shall be identified on a detailed listing to be provided by the related Seller to
Citigroup (a “Mortgage Loan Schedule”) by diskette or via modem. The Mortgage Loan Schedule must be received by Citigroup not less than 72 hours prior to each transfer of Mortgage Loans and must be in a format acceptable to Citigroup. The
Confirmation shall be sent by Citigroup to the related Seller and the documents contained in the Mortgage File (as defined herein) shall be delivered to U.S. Bank National Association (“U.S. Bank”) and held by U.S. Bank pursuant to the
terms of a Custodial Agreement, dated as of December 11, 1998 (the “Custodial Agreement”), among the Seller, Citigroup and U.S. Bank pursuant to which U.S. Bank shall, among other things, issue trust receipts, as defined therein (the
“Trust Receipts”). As a condition to closing any transaction on any Purchase Date, U.S. Bank must deliver to Citigroup a Trust Receipt in form and substance acceptable to Citigroup. The transfer of such Mortgage Loans for the purposes of
this paragraph 12 shall include the delivery to U.S. Bank of the following documents (the “Mortgage File”) with respect to each Mortgage Loan, as set forth in the Custodial Agreement: 
  
 (i) the original Mortgage Note bearing all intervening
endorsements, endorsed “Pay to the order of                         , without recourse” and signed in the name
of the Seller by an authorized officer showing an unbroken chain of endorsement from the originator thereof to the person endorsing; 
  
 (ii) the original Mortgage with evidence of recording thereon; or, with respect to any Mortgage which has been delivered for recording but
which has not been returned from the recorder’s office, a photocopy of such Mortgage, together with an officer’s certificate of the Company stating that such Mortgage has been delivered to the appropriate public recording office for
recordation on and that the original recorded Mortgage or a copy of such Mortgage certified by such public recording office to be a true and complete copy of the original recorded Mortgage will be delivered to U.S. Bank after receipt thereof by the
Seller; 
  
 (iii) if the Mortgage was executed
pursuant to a power of attorney, the power of attorney, with evidence of recording thereon or a copy, certified by the appropriate recorder’s office as true and correct, with evidence of recording thereon; 
  
 (iv) the original Assignment of Mortgage for each Mortgage
Loan, assigned in blank, without recourse; 
  
 (v) recorded originals of all intervening assignments of the Mortgage; 
  
 (vi) the original lender’s title insurance policy, certificate of insurance or binder, or a copy of the title insurance policy or
certificate of insurance certified by the applicable title insurer to be a true copy; 
  
 (vii) for each Mortgage Loan with a loan-to-value ratio at origination in excess of 80%, the original policy of primary mortgage guaranty
insurance or, if such insurance is provided by a master policy, the original certificate of insurance and a copy of such 

  

 
master policy (which master policy shall not be required to be held in each individual Mortgage File); and 
  
 (viii) the originals of all assumption, modification,
consolidation or extension agreements, with evidence of recording thereon. 
  
 In addition to the documents contained in the Mortgage File, the related Seller shall deliver to Citigroup on or prior to the Purchase Date for such Transaction a security release certification acceptable to
Citigroup, certifying the release of any security interest of a third party which may have existed with respect to any of the Mortgage Loans subject to such Transaction during the 45-day period prior to the related Purchase Date and a Bill of Sale
in the form of Exhibit C. 
  
 13. Unless otherwise agreed to
between Citigroup and the Sellers, Citigroup hereby covenants and agrees to hire NC Mortgage to service; and NC Mortgage hereby covenants and agrees to service each Mortgage Loan for a term beginning on the related Purchase Date of such Mortgage
Loan and related servicing rights to the date such Mortgage Loan and related servicing rights are resold to the Sellers; provided that in the event the Seller fails to repurchase a Mortgage Loan on the related repurchase date or if a Seller Event of
Default shall have occurred and be continuing, NC Mortgage shall immediately be terminated as servicer. NC Mortgage shall service such Mortgage Loan substantially in accordance with the servicing provisions specified in the Pooling and Servicing
Agreement, Series 2000-NC1, dated as of March 1, 2000 (the “Pooling and Servicing Agreement”), among U.S. Bank, Salomon Brothers Mortgage Securities VII, Inc., NC Mortgage and Firstar Bank, N.A. including the following: NC Mortgage shall
remit or cause to remit payments of principal and interest to Citigroup on a date prior to the 25th day of each month beginning with the month after the Purchase Date to permit remittances to certificateholders on the 25th day of each month in
connection with a securitization, shall enforce “due-on-sale” provisions to the extent permitted by law, shall administer all escrow/impound deposits, shall pay compensating interest on principal prepayments in any month up to the amount
of its servicing compensation in such month and shall make all servicing advances on any Mortgage Loan (including advances of delinquent principal and interest payments) on the Mortgage Loans. NC Mortgage shall segregate and hold all funds collected
and received pursuant to each Mortgage Loan separate and apart from any of its own funds and general assets and shall establish and maintain one or more accounts prior to a securitization in the form of time deposit or demand accounts entitled
“[name of sub-servicer] in trust for Citigroup Global Markets Realty Corp.” and deposit all principal and interest daily within one day of receipt. NC Mortgage shall be required to make advances in respect of delinquent payments of
principal and interest on the Mortgage Loans through foreclosure and in connection with any properties acquired by the related trustee in any securitization transaction through liquidation of such properties, subject to NC Mortgage’s
determination regarding recoverability. The Mortgage Loans shall be serviced for a servicing fee equal to 0.50% per annum payable monthly on the then-outstanding principal balance of each Mortgage Loan (the “Servicing Fee”). NC
Mortgage’s entitlement to such fee is subordinate to any rights and interests of Citigroup under this Agreement. Any fee payable to any sub-servicer shall be paid by NC Mortgage without any right to reimbursement from Citigroup. Notwithstanding
the foregoing, in the event the Seller fails to repurchase a Mortgage Loan on the 

  

 
related repurchase date or if a Seller Event of Default has occurred and is continuing, NC Mortgage and any related subservicer will no longer be servicer
with respect to such Mortgage Loan or Mortgage Loans, unless the term of servicing is extended by Citigroup in its sole discretion. In such event, Citigroup shall have the right to transfer such servicing to another servicer without payment of any
fee to NC Mortgage. NC Mortgage will cooperate in good faith to effect such servicing transfer and shall pay all costs associated with such servicing transfer. In connection with a termination of NC Mortgage as servicer, neither NC Mortgage nor the
Sellers shall be responsible for the costs (other than the costs of transferring servicing files) associated with the appointment of a successor servicer. 
  
 The parties hereto acknowledge that Ocwen Federal Bank FSB shall be the sub-servicer for NC Mortgage. 
  
 14. All notices, deliveries and payments under this Agreement shall be
sufficient if in writing and delivered to the party entitled to receive such notices, deliveries or payments, or if transmitted to such party by facsimile transfer, at the following address or facsimile number: (i) if to Citigroup: Citigroup Global
Markets Realty Corp., 390 Greenwich Street, 6th Floor, New York, New York 10013, Attention: Secretary (facsimile
no.: (212) 723-8604); (ii) if to NC Capital: to NC Capital Corporation, 18400 Von Karman, Suite 1000, Irvine, California 92612, Attention: Pat Flanagan (facsimile no.: (949) 224-5750); (iii) if to NC Credit: to NC Credit Corporation, 18400 Von
Karman, Suite 1000, Irvine, California 92612, Attention: Pat Flanagan (facsimile no.: (949) 224-5750) or to such other addresses as either party may furnish the other party by written notice under this paragraph. 
  
 15. It is the intention of the parties to this Agreement that transactions
entered into hereunder be considered purchases and sales of Mortgage Loans notwithstanding their treatment for certain accounting purposes as financing transactions. Notwithstanding any other provision of this Agreement, in the event that a
transaction hereunder is deemed not to constitute a purchase and sale (a) the Sellers shall be deemed to have hereby pledged to Citigroup the related Mortgage Loans applicable to such transaction as security for the performance by the related Seller
of its obligations in respect of such purchase and sale transaction and any other purchase and sale transaction between Citigroup and a Seller and (b) the existence of such pledge shall be deemed not to violate the representations and warranties in
respect of such Mortgage Loans made by a Seller in paragraph 1 above. 
  
 16. Citigroup and the Sellers hereby acknowledge that they consider each transaction hereunder and all other transactions under this Agreement or any other agreement between the parties, either party and any affiliate of the other party or
any affiliates of the parties to constitute a single business and contractual relationship and to have been made in consideration of each other. Therefore, (a) each party and each affiliate of each party hereby agrees to fulfill all of its
obligations to the other party and any affiliate of the other party with respect to any transaction or agreement between them or any of their affiliates, and agrees that a default in the performance of any such obligations shall constitute a default
hereunder, (b) each party and any of its affiliates shall have a right of setoff against the other party and any of its affiliates of amounts owing hereunder and any other amounts or obligations owing in respect of any other agreement or transaction
whatsoever and (c) payments and deliveries made by either 

  

 
party or any of either party’s affiliates hereunder shall be considered to have been made in consideration of payments and deliveries made by the other
party or any of the other party’s affiliates with respect to any other agreement or transaction between them, and the obligations to make any such payments and deliveries may be applied against each other and netted. In order to secure any
obligation of either party to the other party or to any affiliate of the other party under this Agreement or any other agreement, each party grants to the other party and the affiliates of the other party a security interest in all property
heretofore or hereafter held by or for the benefit of such other party or the affiliates of such other party. 
  
 17. In the event, for any reason, any purchase by Citigroup hereunder on any Purchase Date is construed by a court as a secured loan rather than a
purchase and sale, the parties intend that Citigroup shall have a perfected first priority security interest in all of the related Mortgage Loans. The Sellers shall pay all fees and expenses associated with perfecting such security interest,
including, without limitation, the cost of filing financing statements under the Uniform Commercial Code to the extent required by Citigroup. 
  
 18. The most recent Confirmation by Citigroup to a Seller of each transaction delivered pursuant to paragraph 2 hereof, as supplemented by this Agreement,
shall constitute a binding agreement between Citigroup and such Seller. In the event of any conflict between the provisions of this Agreement and any other agreement, confirmation, instrument or other document, the provisions of this Agreement shall
govern; provided that, in the event of any conflict between the terms of this Agreement and any Confirmation duly executed pursuant to Section 2 hereof, such Confirmation shall govern. This Agreement shall not be assignable by the Seller without
prior written consent of Citigroup, shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, shall not be changed except by an instrument in writing signed by each of the parties, and shall be
governed by the laws of the State of New York. This Agreement may be executed in any number of counterparts, each of which counterparts shall constitute but one and the same instrument. The Sellers shall promptly provide such further assurances or
agreements as Citigroup may request in order to effect the purposes of this Agreement. 
  
 19. In connection with each Transaction entered into between a Seller and Citigroup, the Sellers and Citigroup agree as follows: 
  
 (a) In the case of any Transaction for which the Repurchase Date is other than the business day immediately
following the Purchase Date and with respect to which the related Seller does not have any existing right to substitute substantially the same mortgage loans for the Mortgage Loans, such Seller shall have the right, subject to the proviso to this
sentence, upon notice to Citigroup, which notice shall be given at or prior to 10 A.M. New York time on such business day, to substitute substantially the same mortgage loans for any Mortgage Loans; provided, however, that Citigroup may elect, by
the close of business on the business day notice is received, or by the close of the next business day if notice is given after 10 A.M. New York time on such day, not to accept such substitution. In the event such substitution is accepted by
Citigroup, such substitution shall be made by the related Seller’s transfer to Citigroup of such other mortgage loans and Citigroup’s transfer to Seller of such Mortgage Loans, and after such 

  

 
substitution, the substituted mortgage loans shall be deemed to be Mortgage Loans. In the event Citigroup elects not to accept such substitution, Citigroup
shall offer the related Seller the right to terminate such Transaction. 
  
 (b) In the event a Seller exercises its right to substitute or terminate under sub-paragraph (a), such Seller shall be obligated to pay to Citigroup, by the close of the business day of such substitution or
termination, as the case may be, an amount equal to (A) Citigroup’s actual cost (including all fees, expenses and commissions) of (i) entering into replacement transactions; (ii) entering into or terminating hedge transactions; and/or (iii)
terminating transactions or substituting mortgage loans in like transactions with third parties in connection with or as a result of such substitution or termination, and (B) to the extent Citigroup determines not to enter into replacement
transactions, the loss incurred by Citigroup directly arising or resulting from such substitution or termination. The foregoing amounts shall be solely determined and calculated by Citigroup. 
  
 20. With respect to either Seller or NC Mortgage, the Sellers shall provide
Citigroup with a litigation report on a monthly basis on or before the 30th day of each month which report shall be current through the 25th day of such month (or later date if noted on the report) and shall briefly describe all ongoing legal or arbitration proceedings (each a “Civil Action”) including as to each Civil Action: (1) the tile of the Civil
Action; (2) a brief summary of the plaintiff’s allegations taken from the complaint; and (3) the mount of in controversy to the extent that the complaint specifically pleads a dollar amount of compensatory damages. In addition, the Sellers
shall give notice to Citigroup within ten (10) days after receipt of service of process on a Seller or NC Mortgage (or any agent thereof designated for service of process) of any Civil Action where a Seller or NC Mortgage is a named party thereto
and such Civil Action: (1) seeks certification of a class of plaintiffs; (2) specifically pleads compensatory damages in excess or $1,000,000 against a Seller or NC Mortgage based on such Seller’s or NC Mortgage’s activities in the
origination or servicing of the plaintiff’s mortgage loan; or (3) the Civil Action if adversely determined would in the reasonable judgment of the Sellers result in a judgment of compensatory damages in favor of the plaintiff and against a
Seller or NC Mortgage in excess of $1,000,000. 
  
 [Signature Page
Follows] 
  

 IN WITNESS WHEREOF, Citigroup and the Sellers have caused their names to be signed hereto by their
respective officers thereunto duly authorized as of October 1, 2004. 
  

			
	CITIGROUP GLOBAL MARKETS REALTY CORP.
		
	 By:
	 	 /s/ Evan Mitnick

	 Name:
	 	 Evan Mitnick

	 Title:
	 	 Director

	
	NC CAPITAL CORPORATION
		
	 By:
	 	 /s/ Patrick Flanagan

	 Name:
	 	 Patrick Flanagan

	 Title:
	 	 Chief Executive Officer

	
	NEW CENTURY CREDIT CORPORATION
		
	 By:
	 	 /s/ Patrick Flanagan

	 Name:
	 	 Patrick Flanagan

	 Title:
	 	 President

  

			
	 WITH RESPECT TO SECTION 13 HEREOF,
 ACKNOWLEDGED AND AGREED TO AS OF
 THIS 1st DAY OF OCTOBER, 2004

	
	 NEW CENTURY MORTGAGE CORPORATION

		
	 By:
	 	 /s/ Patrick Flanagan

	 Name:
	 	 Patrick Flanagan

	 Title:
	 	 President

  

 EXHIBIT A 
  

Each Seller represents, warrants and covenants, with respect to itself, to Citigroup as of each Purchase Date or as of such other date as specifically
provided herein: 
  
 (i) The Seller is duly
organized, validly existing and in good standing as a corporation under the laws of the State of California and is and will remain in compliance with the laws of each state in which any Mortgaged Property is located to the extent necessary to ensure
the enforceability of each Mortgage Loan in accordance with the terms of this Agreement; 
  
 (ii) The Seller has the full power and authority to hold each Mortgage Loan, to sell each Mortgage Loan, and to execute, deliver and
perform, and to enter into and consummate, all transactions contemplated by this Agreement. The Seller has duly authorized the execution, delivery and performance of this Agreement, has duly executed and delivered this Agreement, and this Agreement,
assuming due authorization, execution and delivery by Citigroup and the Seller, constitutes a legal, valid and binding obligation of the Seller, enforceable against it in accordance with its terms except as the enforceability thereof may be limited
by bankruptcy, insolvency or reorganization; 
  
 (iii) The execution and delivery of this Agreement by the Seller and the performance of and compliance with the terms of this Agreement will not violate the Seller’s articles of incorporation or by-laws or constitute a default under or
result in a breach or acceleration of, any material contract, agreement or other instrument to which the Seller is a party or which may be applicable to the Seller or its assets; 
  
 (iv) The Seller is not in violation of, and the execution and delivery of this Agreement by the Seller and
its performance and compliance with the terms of this Agreement will not constitute a violation with respect to, any order or decree of any court or any order or regulation of any federal, state, municipal or governmental agency having jurisdiction
over the Seller or its assets, which violation might have consequences that would materially and adversely affect the condition (financial or otherwise) or the operation of the Seller or its assets or might have consequences that would materially
and adversely affect the performance of its obligations and duties hereunder; 
  
 (v) The Seller does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in this Agreement; 
  
 (vi) Immediately prior to the payment of the Purchase Price
for each Mortgage Loan, the Seller was the owner of the related Mortgage and the indebtedness evidenced by the related Mortgage Note and upon the payment of the Purchase Price by Citigroup, in the event that the Seller retains record title, the
Seller shall retain such record title to each Mortgage, each related Mortgage Note and the related Mortgage Files with respect thereto in trust for the Citigroup as the owner thereof; 
  

 (vii) There are no actions or proceedings against, investigations known to it of, the
Seller before any court, administrative or other tribunal (A) that might prohibit its entering into this Agreement, (B) seeking to prevent the sale of the Mortgage Loans or the consummation of the transactions contemplated by this Agreement or (C)
that might prohibit or materially and adversely affect the performance by the Seller of its obligations under, or validity or enforceability of, this Agreement; 
  
 (viii) No consent, approval, authorization or order of any court or governmental agency or body is required
for the execution, delivery and performance by the Seller of, or compliance by the Seller with, this Agreement or the consummation of the transactions contemplated by this Agreement, except for such consents, approvals, authorizations or orders, if
any, that have been obtained; 
  
 (ix) The
consummation of the transactions contemplated by this Agreement are in the ordinary course of business of the Seller, and the transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant to this Agreement are
not subject to the bulk transfer or any similar statutory provisions; 
  
 (x) The information delivered by the Seller to Citigroup with respect to NC Mortgage’s loan loss, foreclosure and delinquency experience on mortgage loans underwritten to the same standards as the Mortgage Loans
and covering mortgaged properties similar to the Mortgaged Properties, is true and correct in all material respects and includes adjustments for payments which are timely received but which are not honored, due to insufficient funds or for any other
reason; 
  
 (xi) This Agreement does not contain
any untrue statement of material fact or omit to state a material fact necessary to make the statements contained herein not misleading. The written statements, reports and other documents prepared and furnished or to be prepared and furnished by
the Seller pursuant to this Agreement or in connection with the transactions contemplated hereby taken in the aggregate do not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements contained
therein not misleading; and 
  
 (xii) With
respect to each Mortgage Loan, the Seller is in possession of a complete Mortgage File, except for such documents as have been delivered to U.S. Bank. 
  
 NC Credit further hereby represents, warrants and covenants to Citigroup as of the date of this Agreement and as of each date a Mortgage Loan is purchased
hereunder each Purchase Date that it (i) is a qualified REIT subsidiary of New Century Financial Corporation (f/k/a New Century REIT, Inc.), and (ii) is in compliance with the provisions of the Internal Revenue Code of 1986, as amended, governing
its REIT status. 
  

 EXHIBIT B 
  

Each Seller hereby represents and warrants to Citigroup that, as to each related Mortgage Loan, as of the related Purchase Date, or as of such date
specifically provided herein: 
  
 (i) The
information set forth in the Mortgage Loan Schedule, including the field concerning any related Prepayment Charge, is complete, true and correct as of the related Purchase Date; 
  
 (ii) The Mortgage Loan is in compliance with all requirements set forth in the Confirmation, and the
characteristics of the Mortgage Loans as set forth in the Confirmation are true and correct; 
  
 (iii)(a) All payments required to be made on or before the first day of the month prior to the month of the Purchase Date, with respect to
such Mortgage Loan under the terms of the Mortgage Note have been made; provided, however, in the event that the first due date for a Mortgage Loan is on or after the Purchase Date, the first monthly payment for such Mortgage Loan will be or has
been made; (b) the Seller has not advanced funds, or induced, solicited or knowingly received any advance of funds from a party other than the owner of the related Mortgaged Property, directly or indirectly, for the payment of any amount required by
the Mortgage Note or Mortgage; and (c) no payment required under any Mortgage Loan has been 30 days delinquent more than once during the last twelve months and no Mortgage Loan has ever been 60 or more days delinquent; 
  
 (iv) There are no delinquent taxes, ground rents, water
charges, sewer rents, assessments, insurance premiums, leasehold payments, including assessments payable in future installments or other outstanding charges affecting the related Mortgaged Property; 
  
 (v) To the best knowledge of the Seller, the terms of the
Mortgage Note and the Mortgage have not been impaired, waived, altered or modified in any respect, except by written instruments, recorded in the applicable public recording office if necessary to maintain the lien priority of the Mortgage; and
which have been delivered to U.S. Bank; the substance of any such waiver, alteration or modification has been approved by the title insurer, to the extent required by the related policy, and is reflected on the Mortgage Loan Schedule. No instrument
of waiver, alteration or modification has been executed by the Seller or any other person in the chain of title from the Seller to Citigroup, and no Mortgagor has been released, in whole or in part, except in connection with an assumption agreement
approved by the title insurer, to the extent required by the policy, and which assumption agreement has been delivered to U.S. Bank and the terms of which are reflected in the Mortgage Loan Schedule; 
  
 (vi) Prior to the transfer to Citigroup from the Seller, the
Mortgage Note and the Mortgage are not 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 and the Mortgage, or the exercise of any
right thereunder, render 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; 
  
 (vii) All buildings upon the Mortgaged Property are insured by a generally acceptable insurer against loss by fire, hazards of extended
coverage and such other hazards as are customary in the area where the Mortgaged Property is located, pursuant to insurance policies conforming to the requirements of the Pooling and Servicing Agreement. All such insurance policies contain a
standard mortgagee clause naming the Seller, its successors and assigns as mortgagee and all premiums thereon have been paid. If upon origination of the Mortgage Loan, the Mortgaged Property was in an area identified on a Flood Hazard Map or Flood
Insurance Rate Map issued by the Federal Emergency Management Agency as having special flood hazards (and such flood insurance has been made available) a flood insurance policy meeting the requirements of the current guidelines of the Federal
Insurance Administration is in effect which policy conforms to the requirements of Fannie Mae and Freddie Mac. The Mortgage obligates the Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and expense, and on the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain such insurance at Mortgagor’s cost and expense and to seek reimbursement therefor from the Mortgagor; 
  
 (viii) Any and all requirements of any federal, state or
local law including, without limitation, usury, truth in lending, real estate settlement procedures, consumer credit protection, equal credit opportunity or disclosure laws applicable to the origination and servicing of the Mortgage Loan have been
complied with. Any and all statements or acknowledgments required to be made by the Mortgagor relating to such requirements are and will remain in the Mortgage File; 
  
 (ix) The Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole or in part, and the
Mortgaged Property has not been released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would effect any such satisfaction, cancellation, subordination, rescission or release; 
  
 (x) The Mortgage is a valid, existing and enforceable first
lien or second lien on the Mortgaged Property, including all improvements on the Mortgaged Property subject only to (a) the lien of current real property taxes and assessments not yet due and payable, (b) covenants, conditions and restrictions,
rights of way, easements and other matters of the public record as of the date of recording being acceptable to mortgage lending institutions generally and specifically referred to in the lender’s title insurance policy delivered to the
originator of the Mortgage Loan and which do not adversely affect the market value of the Mortgaged Property and (c) other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security
intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property. Any security agreement, chattel mortgage or equivalent document related to and delivered in connection with the Mortgage Loan
establishes and creates a valid, existing and enforceable first lien or second lien and first or second 

  

 
priority security interest on the property described therein and as of the time it sold each Mortgage Loan to the Purchaser, the Seller had full right full
right to sell and assign the same to the Purchaser. The Mortgaged Property was not, as of the date of origination of the Mortgage Loan, subject to a mortgage, deed of trust, deed to secure debt or other security instrument creating a lien
subordinate to the lien of the Mortgage; 
  
 (xi)
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; 
  
 (xii) All parties to the Mortgage Note and the Mortgage had legal capacity to enter into the Mortgage Loan
and to execute and deliver the Mortgage Note and the Mortgage, and the Mortgage Note and the Mortgage have been duly and properly executed by such parties. The Mortgagor is a natural person who is a party to the Mortgage Note and the Mortgage is in
an individual capacity or family trust that is guaranteed by a natural person; 
  
 (xiii) The proceeds of the Mortgage Loan have been fully disbursed to or for the account of the Mortgagor and there is no obligation for
the Mortgagee to advance additional funds thereunder and any and all requirements as to completion of any on-site or off-site improvement and as to disbursements of any escrow funds therefor have been complied with. All costs, fees and expenses
incurred in making or closing the Mortgage Loan and the recording of the Mortgage have been paid, and the Mortgagor is not entitled to any refund of any amounts paid or due to the Mortgagee pursuant to the Mortgage Note or Mortgage; 
  
 (xiv) Immediately prior to the sale of the Mortgage Loan
hereunder, the Seller is the sole legal, beneficial and equitable owner of the Mortgage Note and the Mortgage and has full right to transfer and sell the Mortgage Loan to Citigroup free and clear of any encumbrance, equity, lien, pledge, charge,
claim or security interest; 
  
 (xv) All parties
which have had any interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such interest, were) in compliance with any and all applicable “doing
business” and licensing requirements of the laws of the state wherein the Mortgaged Property is located; 
  
 (xvi) The Mortgage Loan is covered by an ALTA lender’s title insurance policy with, in the case of any adjustable rate Mortgage Loan,
an adjustable rate mortgage endorsement, such endorsement substantially in the form of ALTA Form 6.0 or 6.1, acceptable to Fannie Mae or Freddie Mac, issued by a title insurer acceptable to Fannie Mae and Freddie Mac and qualified to do business in
the jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained in (x)(a) and (b) above) the Seller, its successors and assigns as to the first priority lien of the Mortgage in the original principal amount of
the Mortgage Loan and against any loss by reason of the invalidity or unenforceability of the lien resulting from the provisions of the 

  

 
Mortgage providing for adjustment in the mortgage interest rate and monthly payment. Additionally, such lender’s title insurance policy affirmatively
insures ingress and egress to and from the Mortgaged Property, and against encroachments by or upon the Mortgaged Property or any interest therein. The Seller is the sole insured of such lender’s title insurance policy, and such lender’s
title insurance policy is in full force and effect and will be in full force and effect upon the consummation of the transactions contemplated by this Agreement. No claims have been made under such lender’s title insurance policy, and no prior
holder of the related Mortgage, including the Seller, has done, by act or omission, anything which would impair the coverage of such lender’s title insurance policy; 
  
 (xvii) There is no default, breach, violation or event of acceleration existing under the Mortgage or the
Mortgage Note and no event 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 the Seller has not waived any default, breach,
violation or event of acceleration; 
  
 (xviii)
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 related Mortgaged Property which are or may be liens
prior to, or equal or coordinate with, the lien of the related Mortgage; 
  
 (xix) All improvements which were considered in determining the appraised value of the related Mortgaged Property lay wholly within the boundaries and building restriction lines of the Mortgaged Property, and no
improvements on adjoining properties encroach upon the Mortgaged Property. Each appraisal has been performed in accordance with the provisions of the Financial Institutions Reform, Recovery and Enforcement Act of 1989; 
  
 (xx) The Mortgage Loan was (i) originated by NC Mortgage or
by a savings and loan association, a savings bank, a commercial bank or similar banking institution which is supervised and examined by a federal or state authority, or by a mortgagee approved as such by the Secretary of HUD or (ii) acquired by NC
Mortgage directly through loan brokers or correspondents such that (a) the Mortgage Loan was originated in conformity with NC Mortgage’s underwriting guidelines, (b) NC Mortgage approved the Mortgage Loan prior to funding and (c) NC Mortgage
provided the funds used to originate the Mortgage Loan and acquired the Mortgage Loan on the date of origination thereof; 
  
 (xxi) Principal payments on the Mortgage Loan commenced no more than two months after the proceeds of the Mortgage Loan were disbursed.
The Mortgage Loan bears interest at the mortgage rate. The Mortgage Note is payable on the first day of each month in monthly payments which, in the case of each adjustable rate Mortgage Loan, are changed on each adjustment date to an amount which
will amortize the stated principal balance of the Mortgage Loan over its remaining term at the mortgage interest rate. Interest on the Mortgage Loan is calculated on the basis of a 360-day year consisting 

  

 
of twelve 30-day months. The Mortgage Note does not permit negative amortization. No Mortgage Loan permits the Mortgagor to convert an adjustable rate
Mortgage Loan to a fixed rate Mortgage Loan; 
  
 (xxii) The origination and collection practices used by NC Mortgage with respect to each Mortgage Note and Mortgage have been in all respects legal, proper, prudent and customary in the mortgage origination and servicing industry. The
Mortgage Loan has been serviced by NC Mortgage (directly or through a subservicer) and any predecessor servicer in accordance with the terms of the Mortgage Note. With respect to escrow deposits and escrow payments, if any, all such payments are in
the possession of, or under the control of, the Seller and there exist no deficiencies in connection therewith for which customary arrangements for repayment thereof have not been made. No escrow deposits or Escrow Payments or other charges or
payments due the Seller have been capitalized under any Mortgage or the related Mortgage Note; 
  
 (xxiii) The Mortgaged Property is free of damage and waste and there is no proceeding pending for the total or partial condemnation
thereof; 
  
 (xxiv) The Mortgage and related
Mortgage Note contain customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security provided thereby, including, (a)
in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (b) otherwise by judicial foreclosure. Since the date of origination of the Mortgage Loan, the Mortgaged Property has not been subject to any bankruptcy proceeding
or foreclosure proceeding and the Mortgagor has not filed for protection under applicable bankruptcy laws. There is no homestead or other exemption available to the Mortgagor which would interfere with the right to sell the Mortgaged Property at a
trustee’s sale or the right to foreclose the Mortgage. The Mortgagor has not notified the Seller and the Seller has no knowledge of any relief requested or allowed to the Mortgagor under the Soldiers and Sailors Civil Relief Act of 1940;

  
 (xxv) The related Mortgaged Property is not a
leasehold estate or, if such Mortgaged Property is a leasehold estate, the remaining term of such lease is at least ten (10) years greater than the remaining term of the related Mortgage Note; 
  
 (xxvi) The Mortgage Note is not and has not been secured by
any collateral except the lien of the corresponding Mortgage on the Mortgaged Property and the security interest of any applicable security agreement or chattel mortgage referred to in (x) above; 
  
 (xxvii) The Mortgage File contains an appraisal of the
related Mortgaged Property made and signed, prior to the approval of the Mortgage Loan application, by a qualified appraiser, approved by the Seller, who had no interest, direct or indirect in the Mortgaged Property or in any loan made on the
security thereof, whose compensation is not affected by the approval or disapproval of the Mortgage Loan and who met the minimum qualifications of Fannie Mae and Freddie Mac; 
  

 (xxviii) In the event the Mortgage constitutes a deed of trust, a trustee, duly qualified
under applicable law to serve as such, has been properly designated and currently so serves and is named in the Mortgage, and no fees or expenses are or will become payable by Citigroup to the trustee under the deed of trust, except in connection
with a trustee’s sale after default by the Mortgagor; 
  
 (xxix) No Mortgage Loan contains provisions pursuant to which monthly payments are (a) paid or partially paid with funds deposited in any separate account established by the Seller, the Mortgagor, or anyone on behalf
of the Mortgagor, (b) paid by any source other than the Mortgagor or (c) contains any other similar provisions which may constitute a “buydown” provision. The Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan
does not have a shared appreciation or other contingent interest feature; 
  
 (xxx) With respect to each adjustable rate Mortgage Loan, the Mortgagor has executed a statement to the effect that the Mortgagor has received all disclosure materials required by applicable law with respect to the
making of adjustable rate mortgage loans; and if the Mortgage Loan is a refinanced mortgage loan, the Mortgagor has received all disclosure and rescission materials required by applicable law with respect to the making of a refinanced mortgage loan,
and evidence of such receipt is and will remain in the Mortgage File; 
  
 (xxxi) No Mortgage Loan was made in connection with (a) the construction or rehabilitation of a Mortgaged Property or (b) facilitating the trade-in or exchange of a Mortgaged Property; 
  
 (xxxii) The Mortgage Note, the Mortgage, the Assignment of
Mortgage and any other documents required to be delivered with respect to each Mortgage Loan pursuant to the Custodial Agreement, have been delivered to U.S. Bank all in compliance with the specific requirements of the Custodial Agreement;

  
 (xxxiii) The Mortgaged Property is lawfully
occupied under applicable law; all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and, with respect to the use and occupancy of the same, including but not limited
to certificates of occupancy, have been made or obtained from the appropriate authorities; 
  
 (xxxiv) No error, omission, misrepresentation, negligence, fraud or similar occurrence with respect to a Mortgage Loan has taken place on
the part of any person, including, without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan or in the application of any insurance in relation to such Mortgage
Loan; 
  
 (xxxv) The Assignment of Mortgage is in
recordable form and is acceptable for recording under the laws of the jurisdiction in which the Mortgaged Property is located; 
  

 (xxxvi) Any principal advances made to the Mortgagor prior to the Purchase Date have been
consolidated with the outstanding principal amount secured by the Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term. The lien of the Mortgage securing the consolidated principal
amount is expressly insured as having first lien or second lien priority by a title insurance policy, an endorsement to the policy insuring the mortgagee’s consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie
Mac. The consolidated principal amount does not exceed the original principal amount of the Mortgage Loan; 
  
 (xxxvii) No Mortgage Loan has a balloon payment feature; 
  
 (xxxviii) If the Residential Dwelling on the Mortgaged Property is a condominium unit or a unit in a planned
unit development (other than a de minimis planned unit development) such condominium or planned unit development project meets the Fannie Mae’s eligibility requirements; 
  
 (xxxix) Neither the Seller nor any affiliate of the Seller has made a mortgage on any Mortgaged Property
other than the Mortgage Loan; 
  
 (xl) The
Mortgage Loan was not intentionally selected by the Seller in a manner intended to adversely affect the interest of Citigroup; 
  
 (xli) The Seller has not dealt with any broker or agent or other person who might be entitled to a fee, commission or compensation in
connection with the transaction contemplated by this Agreement other than Citigroup; 
  
 (xlii) Each Mortgaged Property consists of a parcel of real property with a single family residence erected thereon, or a two to
four-family dwelling, or an individual condominium unit in a low-rise or high-rise condominium project, or an individual unit in a planned unit development. Each Mortgaged Property is improved with a residential dwelling. Without limiting the
foregoing, the Mortgaged Property does not consist of any of the following property types: (a) co-operative units, (b) log homes, (c) earthen homes, (d) underground homes, (e) mobile homes and (f) manufactured homes (as defined in the Fannie Mae
Originator-Servicer’s Guide), except when the appraisal indicates that the home is of comparable construction to a stick or beam construction home, is readily marketable, has been permanently affixed to the site and is not in a mobile home
“park.” The Mortgaged Property is either a fee simple estate or a long-term residential lease. If the Mortgage Loan is secured by a long-term residential lease, unless otherwise specifically disclosed in the Mortgage Loan Schedule, (A) the
terms of such lease expressly permit the mortgaging of the leasehold estate, the assignment of the lease without the lessor’s consent (or the lessor’s consent has been obtained and such consent is the Mortgage File) and the acquisition by
the holder of the Mortgage of the rights of the lessee upon foreclosure or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar protection; (B) the terms of such lease do not (x) allow the termination
thereof upon the lessee’s default without the holder of the Mortgage being entitled to receive written notice of, and opportunity to cure, such default 

  

 
or (y) prohibit the holder of the Mortgage from being insured under the hazard insurance policy relating to the Mortgaged Property; (C) the original term of
such lease is not less than 15 years; (D) the term of such lease does not terminate earlier than 10 years after the maturity date of the Mortgage Note; and (E) the Mortgaged Property is located in a jurisdiction in which the use of leasehold estates
for residential properties is an accepted practice; 
  
 (xliii) At the time of origination, the loan-to-value ratio of the Mortgage Loan was not greater than 95.00%; 
  
 (xliv) The Mortgage, and if required by applicable law the related Mortgage Note, contains a provision for the acceleration of the payment
of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged Property is sold or transferred without the prior written consent of the Mortgagee, at the option of the Mortgagee; 
  
 (xlv) The Mortgage Loan either contains a customary
due-on-sale clause or may be assumed by a creditworthy purchaser of the related Mortgaged Property; 
  
 (xlvi) With respect to any adjustable rate Mortgage Loan, as of any Adjustment Date for such Mortgage Loan, the index applicable to the
determination of the Mortgage Rate on such Mortgage Loan will be the average of the interbank offered rates for six-month United States dollar deposits in the London market, generally as published in The Wall Street Journal and as most
recently available as of either (i) the first business day 45 days prior to such Adjustment Date or (ii) the first business day of the month preceding the month of such Adjustment Date, as specified in the related Mortgage Note; and 
  
 (xlvii) Each Mortgage Loan is an obligation that is
principally secured by real property. 
  

 EXHIBIT C 
  

BILL OF SALE 
  
 On this              day of
                    , 200  , [NC Capital Corporation] [New Century Credit Corporation] (“NCCC”) does hereby sell,
transfer, assign, set over and convey to Citigroup Global Markets Realty Corp. (“Citigroup”), without recourse, all of the right, title and interest of NCCC in and to each of the adjustable rate and/or fixed rate one-to-four family
residential first lien and second lien mortgage loans identified on the Mortgage Loan Schedule attached hereto as Exhibit One (the “Mortgage Loans”), and the related Mortgage Loan Files. Such Mortgage Loans are sold to Citigroup pursuant
to the Amended and Restated Purchase and Sale Agreement dated as of October 1, 2004 among Citigroup, NCCC and [NC Capital Corporation] [New Century Credit Corporation] (the “Agreement”). 
  
 NCCC hereby represents and warrants that NCCC is the sole legal, beneficial
and equitable owner of each Mortgage Loan and has full power and authority to transfer and sell each Mortgage Loan to Citigroup free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest that NCCC had or created in
the Mortgage Loans or the related Mortgage Loan Files and that as of the date hereof the representations and warranties specified in Exhibits A and B to the Agreement are true and correct as to NCCC and the Mortgage Loans. 
  
 This Bill of Sale shall be governed by, and construed in accordance with, the
laws of the State of New York. 
  

			
	[NC CAPITAL CORPORATION] or [NEW CENTURY CREDIT CORPORATION]
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 EXHIBIT ONE 
  
 MORTGAGE LOAN SCHEDULE

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