Document:

exv10w1

EXHIBIT 10.1

FORM OF MANAGEMENT AGREEMENT

     THIS
MANAGEMENT AGREEMENT is made as of ________, 2012 by and among PROVIDENT MORTGAGE CAPITAL
ASSOCIATES, INC., a Maryland corporation (the “Company”), PMCA ASSET I, LLC, a Delaware
limited liability company (“Asset I”), PMCA ASSET II, LLC, a Delaware limited liability
company (“Asset II”) and PMF ADVISORS, LLC, a Delaware limited liability company (together
with its permitted assignees, the “Manager”).

     WHEREAS, the Company is a corporation that intends to elect and to qualify to be taxed as a
REIT for federal income tax purposes; and

     WHEREAS, the Company and each of the Subsidiaries desire to retain the Manager to provide
investment advisory services to them on the terms and conditions hereinafter set forth, and the
Manager wishes to be retained to provide such services.

     NOW THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto
agree as follows:

     Section 1. Definitions. The following terms have the following meanings assigned to
them:

          (a) “Agreement” means this Management Agreement, as amended, restated or supplemented
from time to time.

          (b) “Asset I” means PMCA Asset I, LLC, a Delaware limited liability company.

          (c) “Asset II” means PMCA Asset II, LLC, a Delaware limited liability company.

          (d) “Assets” means the assets of the Company and the Subsidiaries.

          (e) “Bankruptcy” means, with respect to any Person, (i) the filing by such Person of a
voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form,
of its debts under Title 11 of the United States Code or any other federal, state or foreign
insolvency law, or such Person’s filing an answer consenting to or acquiescing in any such
petition, (ii) the making by such Person of any assignment for the benefit of its creditors, (iii)
the expiration of 60 days after the filing of an involuntary petition under Title 11 of the Unites
States Code, an application for the appointment of a receiver for a material portion of the assets
of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or
readjustment of its debts under any other federal, state or foreign insolvency law, provided that
the same shall not have been vacated, set aside or stayed within such 60-day period or (iv) the
entry against it of a final and non-appealable order for relief under any bankruptcy, insolvency or
similar law now or hereinafter in effect.

          (f) “Base Management Fee” means a base management fee, calculated and paid quarterly
in arrears (in cash) equal to 1.5% per annum of the Stockholders’ Equity.

          (g) “Board of Directors” means the Board of Directors of the Company.

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

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          (i) “common stock” means the common stock, par value $0.01 per share, of the Company.

          (j) “Company Account” shall have the meaning set forth in Section 5 of this
Agreement.

          (k) “Company Indemnified Party” shall have the meaning set forth in Section
11(b) of this Agreement.

          (l) “Core
Earnings” means GAAP net income (loss) excluding the
incentive fee and non-cash equity
compensation expense (but including any expense as a result of the
Base Management Fee), excluding any unrealized gains, losses or other items that do not affect realized net income
(regardless of whether such items are included in other comprehensive income or loss, or in net
income), and adjusted to exclude one-time events pursuant to changes in GAAP and certain non-cash
items after discussions between the Manager and the Company’s Independent Directors and after
approval by a majority of the Company’s Independent Directors.

          (m) “Current Quarter” shall have the meaning set forth in Section 8(b) of this
Agreement.

          (n) “Effective Termination Date” shall have the meaning set forth in Section
13(a) of this Agreement.

          (o) “Excess Funds” shall have the meaning set forth in Section 2(m) of this
Agreement.

          (p) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (q) “Expenses” shall have the meaning set forth in Section 9 of this
Agreement.

          (r) “Fair Value” means as of the end of any fiscal quarter, the average closing price
of the common stock on the principal national securities exchange or national quotation system in
which the common stock is admitted for trading or quotation over the 30 trading days preceding the
end of such quarter, or if closing prices are not available, the average of the averages of the
closing bid and asked prices over such period on such exchange or system.

          (s) “GAAP” means generally accepted accounting principles, as applied in the United
States.

          (t) “Governing Instruments” means, with regard to any entity, the articles of
incorporation and bylaws in the case of a corporation, certificate of limited partnership (if
applicable) and the partnership agreement in the case of a general or limited partnership, the
articles of formation and the operating agreement in the case of a limited liability company, the
trust instrument in the case of a trust, or similar governing documents, in each case as amended
from time to time.

          (u) “Guidelines” shall have the meaning set forth in Section 2(b)(i) of this
Agreement.

          (v) “Hurdle” shall have the meaning set forth in Section 8(b) of this
Agreement.

          (w) “Incentive Fee” shall have the meaning set forth in Section 8(b) hereof.

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          (x) “Indemnitee” shall have the meaning set forth in Section 11(b) of this
Agreement.

          (y) “Indemnitor” shall have the meaning set forth in Section 11(c) of this
Agreement.

          (z) “Independent Directors” means the members of the Board of Directors who are not
officers or employees of the Manager or any Person directly or indirectly controlling or controlled
by the Manager, and who are otherwise “independent” in accordance with the Company’s Governing
Instruments and corporate governance guidelines and, if applicable, the rules of any national
securities exchange on which the Company’s common stock is listed.

          (aa) “Initial Term” shall have the meaning set forth in Section 12 of this
Agreement.

          (bb) “Investment Company Act” means the Investment Company Act of 1940, as amended.

          (cc) “IPO” means the initial public offering of shares of common stock of the Company.

          (dd) “Manager Indemnified Party” shall have the meaning set forth in Section
11(a) of this Agreement.

          (ee) “Manager’s
Ownership Limit” means the ownership of more than 10.25% by value or
number of shares, whichever is more restrictive, of the Company’s outstanding shares of common
stock, or 10.25% by value or number of shares, whichever is more restrictive, of the Company’s
outstanding shares of any class or series of preferred stock.

          (ff) “Monitoring Services” shall have the meaning set forth in Section 2(b) of
this Agreement.

          (gg) “Notice of Proposal to Negotiate” shall have the meaning set forth in Section
13(a) of this Agreement.

          (hh) “Person” means any individual, corporation, partnership, joint venture, limited
liability company, estate, trust, unincorporated association, any federal, state, county or
municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.

          (ii) “Portfolio Management Services” shall have the meaning set forth in Section
2(b) of this Agreement.

          (jj) “Provident” means Provident Funding Associates, L.P., a California limited
partnership.

          (kk) “REIT” means a “real estate investment trust,” as defined under the Code.

          (ll) “Renewal Term” shall have the meaning set forth in Section 13(a) of this
Agreement.

          (mm) “RMBS” means residential mortgage-backed securities.

          (nn) “Securities Act” means the Securities Act of 1933, as amended.

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          (oo) “Stockholders’ Equity” means:

               (i) the sum of the net proceeds from all issuances of the Company’s equity securities since
inception (allocated on a pro rata  basis for such issuances during the fiscal quarter of any
such issuance), plus

               (ii) the Company’s retained earnings at the end of the most recently completed fiscal quarter
(without taking into account any non-cash equity compensation expense incurred in current or prior
periods), less

               (iii) any
amount that the Company pays for repurchases of its common stock since inception,
any common stock issued to the Manager in respect of the Incentive Fee and
any unrealized gains, losses or other items that do not affect realized net income (regardless of
whether such items are included in other comprehensive income or loss, or in net income), as
adjusted to exclude

               (iv) one-time
events pursuant to changes in GAAP and certain non-cash items (such
as depreciation   and amortization) after discussions
between the Manager and the Company’s Independent Directors and approved by a majority of the
Company’s Independent Directors.

          (pp) “Strategic Alliance
Agreement” means the strategic alliance agreement by and between the Company and Provident.

          (qq) “Subsidiary” means any subsidiary of the Company; any partnership, the general
partner of which is the Company or any subsidiary of the Company; any limited liability company,
the managing member of which is the Company or any subsidiary of the Company; and any corporation
or other entity of which a majority of (i) the voting power of the voting equity securities or (ii)
the outstanding equity interests is owned, directly or indirectly, by the Company or any subsidiary
of the Company. Initially, the Subsidiaries shall be Asset I and Asset II.

          (rr) “Termination Fee” shall have the meaning set forth in Section 13(b) of
this Agreement.

          (ss) “Termination Notice” shall have the meaning set forth in Section 13(a) of
this Agreement.

          (tt) “Treasury Regulations” means the regulations promulgated under the Code as
amended from time to time.

     Section 2. Appointment and Duties of the Manager.

          (a) The Company and each of the Subsidiaries hereby appoints the Manager to manage the Assets
of the Company and the Subsidiaries subject to the further terms and conditions set forth in this
Agreement and the Manager hereby agrees to use its commercially reasonable efforts to perform each
of the duties set forth herein. The appointment of the Manager shall be exclusive to the Manager
except to the extent that the Manager otherwise agrees, in its sole and absolute discretion, and
except to the extent that the Manager elects, pursuant to the terms of this Agreement, to cause the
duties of the Manager hereunder to be provided by third parties.

          (b) The Manager, in its capacity as manager of the Assets and the day-to-day operations of the
Company and the Subsidiaries, at all times will be subject to the supervision of the

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Board of Directors and will have only such functions and authority as the Company may delegate
to it including, without limitation, the functions and authority identified herein and delegated to
the Manager hereby. The Manager will be responsible for the day-to-day operations of the Company
and the Subsidiaries and will perform (or cause to be performed) such services and activities
relating to the Assets and operations of the Company and the Subsidiaries as may be appropriate,
including, without limitation:

               (i) serving as
the Company’s and the Subsidiaries’ consultant with respect to the periodic
review of the asset acquisition guidelines and other policies for the
Company’s acquisitions of Assets, financing
activities and operations, any modification to which shall be approved by a majority of the
Independent Directors (such guidelines as initially approved and attached hereto as Exhibit
A, as the same may be modified with such approval, the “Guidelines”);

               (ii) investigating, identifying, analyzing, evaluating and selecting possible opportunities
and negotiating, acquiring, financing, retaining, monitoring, selling, restructuring, hedging or
disposing of Assets consistent with the Guidelines;

               (iii) with respect to prospective purchases, sales or exchanges of assets, conducting
negotiations on behalf of the Company and the Subsidiaries with sellers, purchasers and brokers
and, if applicable, their respective agents and representatives;

               (iv) advising the Company on and negotiating and entering into, on behalf of the Company and
the Subsidiaries, repurchase agreements, warehouse facilities, securitizations, bank credit
facilities (including term loans and revolving facilities), credit finance agreements, commercial
paper agreements, interest rate swap agreements and other hedging instruments and all other
agreements and engagements required for the Company and the Subsidiaries to conduct their business;

               (v) assisting the Company and the Subsidiaries in developing criteria for asset purchase
commitments that are specifically tailored to the Company’s objectives and strategies and making
available to the Company and the Subsidiaries its knowledge and experience with respect to RMBS,
mortgage loans, real estate, real estate-related securities and other real estate-related assets;

               (vi) serving as the Company’s consultant with respect to arranging for the issuance of RMBS
from pools of mortgage loans or with respect to RMBS owned by the Company;

               (vii) representing and making recommendations to the Company and the Subsidiaries in
connection with the purchase and finance of, and commitment to purchase and finance, RMBS, mortgage
loans (including on a portfolio basis), real estate, real estate-related securities and other real
estate-related assets, and the sale and commitment to sell such assets;

               (viii) coordinating and managing operations of any co-investment interests or joint venture
held by the Company and the Subsidiaries and conducting all matters with the co-investment partners
or joint venture;

               (ix) providing executive and administrative personnel, office space and office services
required in rendering services to the Company and the Subsidiaries;

               (x) administering the day-to-day operations and performing and supervising the performance of
such other administrative functions necessary to the management of the Company and the Subsidiaries
as may be agreed upon by the Manager and the Board of Directors, including, without limitation, the
collection of revenues and the payment of the debts and obligations of the Company and

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the Subsidiaries and maintenance of appropriate computer services to perform such
administrative functions;

               (xi) communicating on behalf of the Company  with the holders of any of
their equity or debt securities as required to satisfy the reporting and other requirements of any
governmental bodies or agencies or trading markets and to maintain effective relations with such
holders, including the maintenance of the Company’s  website, logo design,
analyst presentations, annual meeting arrangements and investor conferences;

               (xii) evaluating and recommending to the Board of Directors hedging strategies and engaging in
hedging activities on behalf of the Company and the Subsidiaries, consistent with the Company’s
qualification as a REIT and with the Guidelines;

               (xiii) counseling the Company regarding the maintenance of its qualification as a REIT and
monitoring compliance with the various REIT qualification tests and other rules set out in the Code
and Treasury Regulations thereunder and using commercially reasonable efforts to cause the Company
to qualify for taxation as a REIT;

               (xiv) counseling the Company and the Subsidiaries regarding the maintenance of their
exemptions from the status of an investment company required to register under the Investment
Company Act, monitoring compliance with the requirements for maintaining such exemptions and using
commercially reasonable efforts to cause them to maintain such exemptions from such status;

               (xv) engaging and supervising,
on behalf of the Company and the Subsidiaries and at the
Company’s expense, independent contractors that provide real estate, investment banking, mortgage
brokerage, appraisal, securities brokerage, underwriting review, due
diligence, insurance, legal
and accounting and other financial services, and all other services as may be required relating to
the Company’s and the Subsidiaries’ operations and Assets, including potential asset acquisition;

               (xvi) furnishing reports and statistical and economic research to the Company and the
Subsidiaries regarding their activities and services performed for the Company and the Subsidiaries
by the Manager;

               (xvii) monitoring the operating performance of Assets and providing periodic reports with
respect thereto to the Board of Directors, including comparative information with respect to such
operating performance and budgeted or projected operating results;

               (xviii) deploying and redeploying any moneys and securities of the Company and the
Subsidiaries (including acquiring short-term investments pending the acquisition of other assets,
payment of fees, costs and expenses, or payments of dividends or distributions to stockholders and
partners of the Company and the Subsidiaries) and advising the Company and the Subsidiaries as to
their capital structure and capital raising;

               (xix) assisting the Company and the Subsidiaries in retaining qualified accountants and legal
counsel, as applicable, to assist in developing appropriate accounting systems and procedures,
internal controls and other compliance procedures and testing systems with respect to financial
reporting obligations and compliance with the provisions of the Code applicable to REITs and to
conduct quarterly compliance reviews with respect thereto;

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               (xx) assisting the Company and the Subsidiaries to qualify to do business in all applicable
jurisdictions and to obtain and maintain all appropriate licenses;

               (xxi) assisting
the Company and the Subsidiaries in complying with all regulatory requirements applicable
to them in respect of their business activities, including preparing or causing to be prepared all
financial statements required under applicable regulations and contractual undertakings and all
reports and documents, if any, required under the Exchange Act, the Securities Act, stock exchange
requirements or pursuant to contractual undertakings;

               (xxii) assisting the Company and the Subsidiaries in taking all necessary action to enable
them to make required tax filings and reports, including soliciting stockholders for required
information to the extent required by the provisions of the Code applicable to REITs;

               (xxiii) placing, or facilitating the placement of, all orders pursuant to the Manager’s
investment determinations for the Company and the Subsidiaries, either directly with the issuer or
with a broker or dealer (including any affiliated broker or dealer);

               (xxiv) handling and resolving all claims, disputes or controversies (including all litigation,
arbitration, settlement or other proceedings or negotiations) on the Company’s and/or the
Subsidiaries’ behalf in which the Company and/or the Subsidiaries may be involved or to which they
may be subject arising out of their day-to-day operations (other than with the Manager or its
affiliates), subject to such limitations or parameters as may be imposed from time to time by the
Board of Directors;

               (xxv) using commercially reasonable efforts to cause expenses incurred by the Company and the
Subsidiaries or on their behalf to be commercially reasonable or commercially customary and within
any budgeted parameters or expense guidelines set by the Board of Directors from time to time;

               (xxvi) counseling the Company in connection with policy decisions to be made by the Board of
Directors;

               (xxvii) performing such other services as may be required from time to time for management and
other activities relating to the Assets and business of the Company and the Subsidiaries as the
Board of Directors shall reasonably request or the Manager shall deem appropriate under the
particular circumstances; and

               (xxviii) using commercially reasonable efforts to cause the Company and the Subsidiaries to
comply with all applicable laws.

Without limiting the foregoing, the Manager will perform portfolio management services (the
“Portfolio Management Services”) on behalf of the Company and the Subsidiaries with respect
to the Assets. Such services will include, but not be limited to, consulting with the Company and
the Subsidiaries on the purchase and sale of, and other opportunities in connection with, the
portfolio of Assets; the collection of information and the submission of reports pertaining to the
Assets, interest rates and general economic conditions; periodic review and evaluation of the
performance of the portfolio of Assets; acting as liaison between the Company and the Subsidiaries
and banking, mortgage banking, investment banking and other parties with respect to the purchase,
financing, hedging and disposition of Assets; and other customary functions related to portfolio
management. Additionally, the Manager will perform monitoring services (the “Monitoring
Services”) on behalf of the Company and the Subsidiaries with respect to any loan servicing or
sub-servicing activities provided by third parties. Such Monitoring Services will include, but not
be limited to, assisting the Company in complying with the Strategic Alliance Agreement,
negotiating

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other servicing agreements; acting as a liaison between the servicers of the Assets and the Company
and the Subsidiaries; review of servicers’ delinquency, foreclosure and other reports on Assets;
supervising claims filed under any insurance policies; and enforcing the obligation of any servicer
to repurchase Assets.

          (c) For the period and on the terms and conditions set forth in this Agreement, the Company
and each of the Subsidiaries hereby constitutes, appoints and authorizes the Manager as its true
and lawful agent and attorney-in-fact, in its name, place and stead, to negotiate, execute, deliver
and enter into such credit finance, warehouse finance, securities repurchase and reverse repurchase
agreements and arrangements, brokerage agreements, interest rate swap agreements and other hedging
instruments, custodial agreements and such other agreements, instruments and authorizations on
their behalf, on such terms and conditions as the Manager, acting in its sole and absolute
discretion, deems necessary or appropriate. This power of attorney is deemed to be coupled with an
interest.

          (d) The Manager may enter into agreements with other parties, including its affiliates, for
the purpose of engaging one or more parties for and on behalf, and at the sole cost and expense, of
the Company and the Subsidiaries to provide property management, asset management, leasing,
development and/or other services to the Company and the Subsidiaries pursuant to agreement(s) with
terms which are then customary for agreements regarding the provision of services to companies that
have assets similar in type, quality and value to the Assets of the Company and the Subsidiaries;
provided that (i) any such agreements entered into with affiliates of the Manager shall be (A) on
terms no more favorable to such affiliate than would be obtained from a third party on an
arm’s-length basis and (B) approved by a majority of the Independent Directors, and (ii) with
respect to Portfolio Management Services, the Manager shall remain liable for the performance of
such Portfolio Management Services. Notwithstanding anything contained herein to the contrary, the
Manager shall not have any liability under the Strategic Alliance Agreement in connection with any
action undertaken in accordance with the terms and conditions of this Agreement. For the avoidance
of doubt, any transaction undertaken pursuant to the terms of the Strategic Alliance Agreement
shall be deemed to comply with this clause (d) in all respects.

          (e) In addition, to the extent that the Manager deems necessary or advisable, the Manager may,
from time to time, propose to retain one or more additional entities for the provision of
sub-advisory services to the Manager in order to enable the Manager to provide the services to the
Company and the Subsidiaries specified by this Agreement; provided that any such agreement (i)
shall be on terms and conditions substantially identical to the terms and conditions of this
Agreement or otherwise not adverse to the Company and the Subsidiaries, and (ii) shall be approved
by the Independent Directors.

          (f) The Manager may retain, for and on behalf and at the sole cost and expense of the Company
and the Subsidiaries, such services of accountants, legal counsel, appraisers, insurers, brokers,
transfer agents, registrars, developers, investment banks, financial advisors, due diligence firms,
underwriting review firms, banks and other lenders and others as the Manager deems necessary or
advisable in connection with the management and operations of the Company and the Subsidiaries.
Notwithstanding anything contained herein to the contrary, the Manager shall have the right to
cause any such services to be rendered by its employees or affiliates. Except as otherwise
provided herein, the Company and the Subsidiaries shall pay or reimburse the Manager or its
affiliates performing such services for the cost thereof; provided that such costs and
reimbursements are no greater than those which would be payable to outside professionals or
consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length
basis.

          (g) The Manager may effect transactions by or through the agency of another Person with it or
its affiliates which have an arrangement under which that party or its affiliates will from time to
time provide to or procure for the Manager and/or its affiliates goods, services or other benefits

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(including, but not limited to, research and advisory services; economic and political
analysis, including valuation and performance measurement; market analysis, data and quotation
services; computer hardware and software incidental to the above goods and services; clearing and
custodian services and investment related publications), the nature of which is such that provision
can reasonably be expected to benefit the Company and the Subsidiaries as a whole and may
contribute to an improvement in the performance of the Company and the Subsidiaries or the Manager
or its affiliates in providing services to the Company and the Subsidiaries on terms that no direct
payment is made but instead the Manager and/or its affiliates undertake to place business with that
party.

          (h) In executing transactions and selecting brokers or dealers, the Manager will seek, on
behalf of the Company and the Subsidiaries, the best overall terms available. In assessing the
best overall terms available for any transaction, the Manager shall consider all factors that it
deems relevant, including, without limitation, the breadth of the market in the asset, the price of
the asset, the financial condition and execution capability of the broker or dealer, and the
reasonableness of the commission, if any, both for the specific transaction and on a continuing
basis. In evaluating the best overall terms available, and in selecting the broker or dealer to
execute a particular transaction, the Manager may also consider whether such broker or dealer
furnishes research and other information or services to the Manager.

          (i) The Manager has no duty or obligation to seek in advance competitive bidding for the most
favorable commission rate applicable to any particular purchase, sale or other transaction, or to
select any broker-dealer on the basis of its purported or “posted” commission rate, but will
endeavor to be aware of the current level of charges of eligible broker-dealers and to minimize the
expense incurred for effecting purchases, sales and other transactions to the extent consistent
with the interests and policies of the Company and the Subsidiaries. Although the Manager will
generally seek competitive commission rates, it is not required to pay the lowest commission or
commission equivalent, provided that such decision is made in good faith to promote the best
interests of the Company and the Subsidiaries.

          (j) As frequently as the Manager may deem necessary or advisable, or at the direction of the
Board of Directors, the Manager shall, at the sole cost and expense of the Company and the
Subsidiaries, prepare, or cause to be prepared, with respect to any Asset, reports and other
information with respect to such Asset as may be reasonably requested by the Company.

          (k) The Manager shall prepare, or cause to be prepared, at the sole cost and expense of the
Company and the Subsidiaries, all reports, financial or otherwise, with respect to the Company and
the Subsidiaries that are reasonably required by the Board of Directors in order for the Company
and the Subsidiaries to comply with their Governing Instruments or any other materials required to
be filed with any governmental body or agency or delivered to any other third party as may be
contractually required, and shall prepare, or cause to be prepared, all materials and data
necessary to complete such reports and other materials including, without limitation, an annual
audit of the Company’s and the Subsidiaries’ books of account by a nationally recognized registered
independent public accounting firm and the preparation of a tax return for each of the Company and
its Subsidiaries as may be required by law, rule or regulation.

          (l) The Manager shall prepare regular reports for the Board of Directors to enable the Board
of Directors to review the Company’s and the Subsidiaries’ acquisitions, portfolio composition and
characteristics, credit quality, performance and compliance with the Guidelines and policies
approved by the Board of Directors.

          (m) Notwithstanding anything contained in this Agreement to the contrary, except to the extent
that the payment of additional moneys is proven by the Company to have been required as a

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direct result of the Manager’s acts or omissions which result in the right of the Company and
the Subsidiaries to terminate this Agreement pursuant to Section 15, the Manager shall not
be required to expend money (“Excess Funds”) in connection with any expenses that are
required to be paid for or reimbursed by the Company and the Subsidiaries pursuant to Section
9 in excess of that contained in any applicable Company Account (as herein defined) or
otherwise made available by the Company and the Subsidiaries to be expended by the Manager
hereunder. Failure of the Manager to expend Excess Funds out-of-pocket shall not give rise or be a
contributing factor to the right of the Company and the Subsidiaries under Section 13(a) to
terminate this Agreement due to the Manager’s unsatisfactory performance.

          (n) In performing its duties under this Section 2, the Manager shall be entitled to
rely reasonably on qualified experts and professionals (including, without limitation, accountants,
legal counsel and other service providers) hired by the Manager at the Company’s and the
Subsidiaries’ sole cost and expense.

     Section 3. Devotion of Time; Additional Activities.

     The Manager and its affiliates will provide the Company and the Subsidiaries with a management
team, including a Chief Executive Officer, a Chief Financial Officer, and other appropriate support
personnel. The Manager is not obligated to dedicate any of its employees exclusively to the
Company, nor is the Manager or its employees obligated to dedicate any specific portion of its or
their time to the Company.

          (a) Subject to the terms of the Strategic Alliance Agreement, nothing in this Agreement shall
(i) prevent the Manager or any of its affiliates, officers, directors, employees or personnel, from
engaging in other businesses or from rendering services of any kind to any other Person, including,
without limitation, investing in, or rendering advisory services to others investing in, any type
of business (including, without limitation, acquisitions of assets that meet the principal
objectives of the Company), whether or not the objectives or policies of any such other Person or
entity are similar to those of the Company or (ii) in any way bind or restrict the Manager or any
of its affiliates, officers, directors, employees or personnel from buying, selling or trading any
securities or assets for their own accounts or for the account of others for whom the Manager or
any of its affiliates, officers, directors, employees or personnel may be acting. When making
decisions where a conflict of interest may arise, the Manager will endeavor to allocate acquisition
and financing opportunities, in a fair and equitable manner over time as between the Company and
the Subsidiaries and the Manager’s other funds and clients.

          (b) Managers, partners, officers, employees, personnel and agents of the Manager or affiliates
of the Manager may serve as directors, officers, employees, personnel, agents, nominees or
signatories for the Company and/or any Subsidiary, to the extent permitted by their Governing
Instruments or by any resolutions duly adopted by the Board of Directors pursuant to the Company’s
Governing Instruments. When executing documents or otherwise acting in such capacities for the
Company or the Subsidiaries, such persons shall use their respective titles in the Company or the
Subsidiaries.

     Section 4. Agency. The Manager shall act as agent of the Company and the Subsidiaries
in making, acquiring, financing and disposing of Assets, disbursing and collecting the funds of the
Company and the Subsidiaries, paying the debts and fulfilling the obligations of the Company and
the Subsidiaries, supervising the performance of professionals engaged by or on behalf of the
Company and the Subsidiaries and handling, prosecuting and settling any claims of or against the
Company and the Subsidiaries, the Board of Directors, holders of the Company’s securities or
representatives or properties of the Company and the Subsidiaries and in performing all other
matters contemplated hereunder.

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     Section 5. Bank Accounts. At the direction of the Board of Directors, the Manager may
establish and maintain one or more bank accounts in the name of the Company or any Subsidiary (any
such account, a “Company Account”), and may collect and deposit funds into any such Company
Account or Company Accounts, and disburse funds from any such Company Account or Company Accounts,
under such terms and conditions as the Board of Directors may approve; and the Manager shall from
time to time render appropriate accountings of such collections and payments to the Board of
Directors and, upon request, to the auditors of the Company or any Subsidiary.

     Section 6. Records; Confidentiality. The Manager shall maintain appropriate books of
accounts and records relating to services performed under this Agreement, and such books of account
and records shall be accessible for inspection by representatives of the Company or any Subsidiary
at any time during normal business hours upon reasonable advance notice. The Manager shall keep
confidential any and all information obtained in connection with the services rendered under this
Agreement and shall not disclose any such information (or use the same except in furtherance of its
duties under this Agreement) to unaffiliated third parties except (i) with the prior written
consent of the Board of Directors; (ii) to legal counsel, accountants and other professional
advisors; (iii) to appraisers, financing sources and others in the ordinary course of the Company’s
business; (iv) to governmental officials having jurisdiction over the Company or any Subsidiary;
(v) in connection with any governmental or regulatory filings of the Company or any Subsidiary or
disclosure or presentations to Company investors; (vi) as required by law or legal process to which
the Manager or any Person to whom disclosure is permitted hereunder is a party; or (vii) to the
extent such information is otherwise publicly available. The foregoing shall not apply to
information which has previously become publicly available through the actions of a Person other
than the Manager not resulting from the Manager’s violation of this Section 6. The
provisions of this Section 6 shall survive the expiration or earlier termination of this
Agreement for a period of one year.

     Section 7. Obligations of Manager; Restrictions.

          (a) The Manager shall require each seller or transferor of investment assets to the Company
and the Subsidiaries to make such representations and warranties regarding such assets as may, in
the judgment of the Manager, be necessary and appropriate; provided that the representations and
warranties contained in any agreement entered into between the Company, on the one hand, and
Provident or any of its Subsidiaries or affiliates on the other hand, shall be approved and/or
ratified by a majority of the Independent Directors. In addition, the Manager shall take such
other action as it deems necessary or appropriate with regard to the protection of the Assets.

          (b) The Manager shall refrain from any action that, in its sole judgment made in good faith,
(i) is not in compliance with the Guidelines, (ii) would adversely and materially affect the status
of the Company as a REIT under the Code, (iii) would adversely and materially affect the Company’s
or any Subsidiary’s status as an entity intended to be exempted or excluded from investment company
status under the Investment Company Act or (iv) would violate any law, rule or regulation of any
governmental body or agency having jurisdiction over the Company or any Subsidiary or that would
otherwise not be permitted by the Company’s Governing Instruments. If the Manager is ordered to
take any such action by the Board of Directors, the Manager shall promptly notify the Board of
Directors of the Manager’s judgment that such action would adversely and materially affect such
status or violate any such law, rule or regulation or the Governing Instruments. Notwithstanding
the foregoing, the Manager, its directors, members, officers, stockholders, managers, personnel,
employees and any Person controlling or controlled by the Manager and any Person providing
sub-advisory services to the Manager shall not be liable to the Company or any Subsidiary, the
Board of Directors, or the Company’s or any Subsidiary’s stockholders, members or partners, for any
act or omission by the Manager, its directors, officers, stockholders or employees except as
provided in Section 11 of this Agreement.

11

 

          (c) The Board of Directors shall periodically review the Guidelines and the portfolio of
Assets but will not review each proposed Asset, except as otherwise provided herein. If a majority
of the Independent Directors determines in their periodic review of transactions that a particular
transaction does not comply with the Guidelines, then a majority of the Independent Directors will
consider what corrective action, if any, can be taken. The Manager shall be permitted to rely upon
the direction of the Secretary of the Company to evidence the approval of the Board of Directors or
the Independent Directors with respect to a proposed acquisition.

          (d) At all times, the Manager shall not, on behalf of the Company and the Subsidiaries,
acquire any security structured or issued by an entity managed by the Manager or any affiliate
thereof, or purchase or sell any Asset from or to any entity managed by the Manager or its
affiliates unless (i) the transaction is made in accordance with the Guidelines; (ii) the
transaction is approved by a majority of the Independent Directors; and (iii) the transaction is
made in accordance with applicable laws; provided that the foregoing conditions shall not apply to
any transaction governed by the Strategic Alliance Agreement.

          (e) The Manager shall at all times during the term of this Agreement maintain “errors and
omissions” insurance coverage and other insurance coverage which is customarily carried by
property, asset and investment managers performing functions similar to those of the Manager under
this Agreement with respect to assets similar to the Assets of the Company and the Subsidiaries, in
an amount which is comparable to that customarily maintained by other managers or servicers of
similar assets.

     Section 8. Compensation.

          (a) Base Management Fee.

               (i) During the Initial Term and any Renewal Term, the Company shall pay the Manager the Base
Management Fee commencing with the quarter in which this Agreement was executed (with such initial
payment pro-rated based on the number of days during such quarter that this Agreement was in
effect); provided that for the 12-month period following the completion of the IPO, the Manager hereby agrees
to waive its right to receive the Base Management Fee, in an amount equal to 50% of the Expenses (as defined
in Section 9 hereof) during such 12-month period.

               (ii) The Manager shall compute each installment of the Base Management Fee within 30 days
after the end of the fiscal quarter with respect to which such installment is payable. A copy of
the computations made by the Manager to calculate such installment shall thereafter, for
informational purposes only and subject in any event to Section 13(a), promptly be
delivered to the Board of Directors and, upon such delivery, payment of such installment of the
Base Management Fee shown therein shall be due and payable no later than the date which is five
business days after the date of delivery to the Board of Directors of such computations.

               (iii) The Base Management Fee is subject to adjustment pursuant to and in accordance with the
provisions of Section 13(a).

12

 

          (b) Incentive Fee.

               (i) In addition to the Base Management Fee otherwise payable hereunder, the Company shall pay
the Manager a quarterly Incentive Fee (the “Incentive Fee”) as follows: The Company shall
pay the Manager an amount equal to 20.0% of the dollar amount by which Core Earnings for the most
recently completed fiscal quarter (the “Current Quarter”) before the Incentive Fee received
in relation to such fiscal quarter, exceeds the product of (A) the weighted average of the issue
price per share of common stock in all of the Company’s offerings of shares of common stock
multiplied by the weighted average number of shares of the Company’s common stock outstanding
during the Current Quarter and (B) 8% (the “Hurdle”), expressed on a quarterly basis;
provided, that no incentive fee shall be accrued or earned by the
Manager, or payable by the Company to the Manager, until the completion of the
first four full fiscal quarters following the completion of the IPO.

               (ii) Subject to all applicable stock exchange regulations and U.S. federal securities laws and
regulations, the Incentive Fee payable to the Manager shall be paid 100% in shares of common stock.
The number of shares of common stock payable to the Manager in respect of the Incentive Fee, if
any, in respect of any fiscal quarter shall equal 100% of the Incentive Fee for such quarter,
divided by the Fair Value as of the end of such quarter; provided that if the Company’s shares of
common stock are no longer listed on a national securities exchange or quoted on a national
quotation system, the Incentive Fee shall be payable 100% in cash until such time as such shares
are listed or quoted. The shares of common stock payable to the Manager in respect of its
Incentive Fee, if any, for a fiscal quarter shall, subject to Section 13(e), vest over a
three-year period following the quarter in which such fee was earned, with 60% vesting on the date
that is two years following the last business day of such quarter and the remaining 40% vesting on
the date that is three years following the last business day of such quarter. The holder of these
shares of common stock shall be entitled to receive dividends on such shares of common stock prior
to the time that such shares have vested. Notwithstanding the foregoing, if the ownership of the
shares of common stock to be paid to the Manager in respect of its Incentive Fee in respect of any
fiscal quarter would result in a violation of the Manager’s Ownership Limit, then the Incentive Fee (or the
portion thereof that would cause such violation) in respect of any fiscal quarter shall be payable
in cash, provided that the Manager shall not receive any such cash payment until such time as the
shares of common stock that would have been issued to the Manager in respect of its Incentive Fee
would have vested as described in this Section 8(b)(ii).

               (iii) The Manager shall compute each installment of the Incentive Fee within 30 days after the
end of each fiscal quarter with respect to which such installment is payable. A copy of the
computations made by the Manager to calculate such installment shall thereafter, for informational
purposes only and subject in any event to Section 13(a), promptly be delivered to the Board
of Directors and, upon such delivery, payment of such installment of the Incentive Fee shown
therein shall be due and payable no later than the date which is five business days after the date
of delivery to the Board of Directors of such computations.

13

 

     Section 9. Expenses of the Company. The Company shall pay all of its expenses and
shall reimburse the Manager for documented expenses of the Manager incurred on its behalf
(collectively, the “Expenses”) excepting those expenses that are specifically the
responsibility of the Manager as set forth herein. Such costs and reimbursements shall not be in
amounts which are greater than those which would be payable to outside professionals or consultants
engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis.
Expenses include all costs and expenses which are expressly designated elsewhere in this Agreement
as the Company’s, together with the following:

          (a) expenses in connection with the issuance and transaction costs incident to the
acquisition, disposition and financing of Assets;

          (b) costs associated with the Company’s year-end audit and quarterly reviews, including the
costs associated with compliance with the Sarbanes-Oxley Act of 2002, tax preparation and legal
counsel;

          (c) the compensation and expenses of the Company’s directors and the cost of directors’ and
officers’ liability, and any non-covered indemnification expense;

          (d) costs associated with the purchase, financing, sale or other disposition of
an Asset, the establishment and maintenance of any of the Company’s repurchase agreements,
warehouse facilities, securitizations and bank credit facilities (including term loans and
revolving facilities) or other indebtedness of the Company (including commitment fees, transaction
fees, accounting fees, legal fees, negotiating, closing and other similar costs) or any of the
Company’s or any Subsidiary’s securities offerings;

          (e) expenses connected with communications to holders of the Company’s or any Subsidiary’s
securities, including web hosting, all costs of preparing and filing required reports with the
Securities and Exchange Commission, the costs payable by the Company to any transfer agent and
registrar in connection with the listing and/or trading of the Company’s stock on any exchange, the
fees payable by the Company to any such exchange in connection with its listing, and the costs of
preparing, printing and mailing the Company’s annual report to its stockholders and proxy materials
with respect to any meeting of the Company’s stockholders;

          (f) expenses incurred by managers, officers, personnel and agents of the Manager for travel on
the Company’s behalf and other out-of-pocket expenses incurred by managers, officers, personnel and
agents of the Manager in connection with the purchase, financing, refinancing, sale or other
disposition of an Asset or establishment and maintenance of any repurchase agreements, warehouse
facilities, securitizations, bank credit facilities (including term leases and revolving
facilities) or any of the Company’s or any of the Subsidiaries’ securities offerings;

          (g) costs and expenses incurred with respect to Bloomberg and other market data information
systems and publications, research publications and materials, and settlement, clearing and
custodial fees and expenses;

          (h) compensation and expenses of the Company’s custodian and transfer agent, if any;

          (i) the costs of maintaining compliance with all federal, state and local rules and
regulations or any other regulatory agency;

          (j) all taxes and license fees;

14

 

          (k) all insurance costs incurred in connection with the operation of the Company’s business,
except for the costs attributable to the insurance that the Manager elects to carry for itself and
its personnel;

          (l) expenses relating to any office(s) or office facilities, including, but not limited to,
disaster backup recovery sites and facilities, maintained for the Company and the Subsidiaries or
Assets separate from the office or offices of the Manager;

          (m) expenses connected with the payments of interest, dividends or distributions in cash or
any other form authorized or caused to be made by the Board of Directors to or on account of
holders of the Company’s or any Subsidiary’s securities, including, without limitation, in
connection with any dividend reinvestment plan;

          (n) any judgment or settlement of pending or threatened proceedings (whether civil, criminal
or otherwise) against the Company or any Subsidiary, or against any trustee, director or officer of
the Company or of any Subsidiary in his capacity as such for which the Company or any Subsidiary is
required to indemnify such trustee, director or officer by any court or governmental agency;

          (o) expenses incurred in connection with obtaining and maintaining the insurance coverage
referred to in Section 7(e) above; and

          (p) all other expenses actually incurred by the Manager, which are reasonably necessary for
the performance by the Manager of its duties and functions under this Agreement.

     Other than with respect to the Manager’s performance of certain legal, compliance,
accounting, due diligence tasks and other services outside professional or outside consultants
would otherwise perform for the Company,

  the Company shall have no obligation to reimburse the Manager or its affiliates for the
salaries and other compensation of the Manager’s personnel who provide services to the Company
under this Agreement.

     The Manager may, at its option, elect not to seek reimbursement for certain expenses during a
given quarterly period, which determination shall not be deemed to construe a waiver of
reimbursement for similar expenses in future periods. 

     The provisions of this Section 9 shall survive the expiration or earlier termination
of this Agreement to the extent such expenses have previously been incurred or are incurred in
connection with such expiration or termination.

     Section 10. Calculations of Expenses. The Manager shall prepare a statement
documenting the Expenses of the Company and the Subsidiaries and the Expenses incurred by the
Manager on behalf of the Company and the Subsidiaries during each fiscal quarter, and shall deliver
such statement to the Company within 30 days after the end of each fiscal quarter. Expenses
incurred by the Manager on behalf of the Company and the Subsidiaries shall be reimbursed by the
Company to the Manager on the fifth business day immediately following the date of delivery of such
statement; provided, however, that such reimbursements may be offset by the Manager against amounts
due to the Company and the Subsidiaries. The provisions of this Section 10 shall survive
the expiration or earlier termination of this Agreement.

     Section 11. Limits of Manager Responsibility; Indemnification.

          (a) The Manager assumes no responsibility under this Agreement other than to render the
services called for under this Agreement and shall not be responsible for any action of the

15

 

Board of Directors in following or declining to follow any advice or recommendations of the
Manager, including as set forth in Section 7(b). The Manager, its officers, members,
managers, directors, personnel, any Person controlling or controlled by the Manager and any Person
providing sub-advisory services to the Manager will not be liable to the Company or any Subsidiary,
to the Board of Directors, or the Company’s or any Subsidiary’s stockholders, members or partners
for any acts or omissions by any such Person (including, without limitation, trade errors that may
result from ordinary negligence, such as errors in the investment decision making process or in the
trade process), pursuant to or in accordance with this Agreement, except by reason of acts or
omissions constituting bad faith, willful misconduct, gross negligence or reckless disregard of the
Manager’s duties under this Agreement, as determined by a final non-appealable order of a court of
competent jurisdiction. The Company shall, to the full extent lawful, reimburse, indemnify and
hold the Manager, its officers, stockholders, members, managers, directors, personnel, any Person
controlling or controlled by the Manager and any Person providing sub-advisory services to the
Manager, together with such Person’s managers, officers, directors and personnel (each a
“Manager Indemnified Party”), harmless of and from any and all expenses, losses, damages,
liabilities, demands, charges and claims of any nature whatsoever (including attorneys’ fees) in
respect of or arising from any acts or omissions of such Manager Indemnified Party made in good
faith in the performance of the Manager’s duties under this Agreement and not constituting such
Manager Indemnified Party’s bad faith, willful misconduct, gross negligence or reckless disregard
of the Manager’s duties under this Agreement.

          (b) The Manager shall, to the full extent lawful, reimburse, indemnify and hold the Company
(or any Subsidiary), its  directors and officers and each other Person, if any,
controlling the Company (each, a “Company Indemnified Party” and together with a Manager
Indemnified Party, the “Indemnitee”), harmless of and from any and all expenses, losses,
damages, liabilities, demands, charges and claims of any nature whatsoever (including attorneys’
fees) in respect of or arising from the Manager’s bad faith, willful misconduct, gross negligence
or reckless disregard of its duties under this Agreement or any claims by the Manager’s personnel
relating to the terms and conditions of their employment by the Manager.

          (c) The Indemnitee will promptly notify the party against whom indemnity is claimed (the
“Indemnitor”) of any claim for which it seeks indemnification; provided, however, that the
failure to so notify the Indemnitor will not relieve the Indemnitor from any liability which it may
have hereunder, except to the extent such failure actually prejudices the Indemnitor. The
Indemnitor shall have the right to assume the defense and settlement of such claim; provided, that
the Indemnitor notifies the Indemnitee of its election to assume such defense and settlement within
30 days after the Indemnitee gives the Indemnitor notice of the claim. In such case, the
Indemnitee will not settle or compromise such claim, and the Indemnitor will not be liable for any
such settlement made without its prior written consent. If the Indemnitor is entitled to, and
does, assume such defense by delivering the aforementioned notice to the Indemnitee, the Indemnitee
will (i) have the right to approve the Indemnitor’s counsel (which approval will not be
unreasonably withheld, delayed or conditioned), (ii) be obligated to cooperate in furnishing
evidence and testimony and in any other manner in which the Indemnitor may reasonably request and
(iii) be entitled to participate in (but not control) the defense of any such action, with its own
counsel and at its own expense.

     Section 12. No Joint Venture. Nothing in this Agreement shall be construed to make
the Company and the Manager partners or joint venturers or impose any liability as such on either
of them.

     Section 13. Term; Termination.

          (a) Until this Agreement is terminated in accordance with its terms, this Agreement shall be
in effect until _______ ___,
2015 (the “Initial Term”) and shall be automatically renewed
for a

16

 

one-year term each anniversary date thereafter (a “Renewal Term”) unless at least
two-thirds of the Independent Directors or the holders of a majority of the outstanding shares of
common stock (other than those shares held by members of the Company’s senior management team and
affiliates of the Manager) agree that (i) there has been unsatisfactory performance by the Manager
that is materially detrimental to the Company and the Subsidiaries or (ii) the compensation payable
to the Manager hereunder is unfair; provided that the Company shall not have the right to terminate
this Agreement under clause (ii) above if the Manager agrees to continue to provide the services
under this Agreement at a reduced fee that at least two-thirds of the Independent Directors
determines to be fair pursuant to the procedure set forth below. If the Company elects not to
renew this Agreement at the expiration of the Initial Term or any Renewal Term as set forth above,
the Company shall deliver to the Manager prior written notice (the “Termination Notice”) of
the Company’s intention not to renew this Agreement based upon the terms set forth in this
Section 13(a) not less than 180 days prior to any such termination. If
the Company so elects not to renew this Agreement, the Company shall designate the date (the
“Effective Termination Date”), not less than 180 days from the date of the notice, on which
the Manager shall cease to provide services under this Agreement, and this Agreement shall
terminate on such date; provided, however, that in the event that such Termination Notice is given
in connection with a determination that the compensation payable to the Manager is unfair, the
Manager shall have the right to renegotiate such compensation by delivering to the Company, no
fewer than 45 days prior to the prospective Effective Termination Date, written notice (any such
notice, a “Notice of Proposal to Negotiate”) of its intention to renegotiate its
compensation under this Agreement. Thereupon, the Company (represented by the Independent
Directors) and the Manager shall endeavor to negotiate in good faith the revised compensation
payable to the Manager under this Agreement; provided that if the Manager and at least two-thirds
of the Independent Directors agree to the terms of the revised compensation to be payable to the
Manager within 45 days following the receipt of the Notice of Proposal to Negotiate, the
Termination Notice shall be deemed of no force and effect and this Agreement shall continue in full
force and effect on the terms stated in this Agreement, except that the compensation payable to the
Manager hereunder shall be the revised compensation then agreed upon by the parties to this
Agreement. The Company and the Manager agree to execute and deliver an amendment to this Agreement
setting forth such revised compensation promptly upon reaching an agreement regarding same. In the
event that the Company and the Manager are unable to agree to the terms of the revised compensation
to be payable to the Manager during such 45-day period, this Agreement shall terminate, such
termination to be effective on the date which is the later of (A) 10 days following the end of such
45-day period and (B) the Effective Termination Date originally set forth in the Termination
Notice.

          (b) In recognition of the level of the upfront effort required by the Manager to structure and
acquire the Assets of the Company and the Subsidiaries and the commitment of resources by the
Manager, in the event that this Agreement is terminated in accordance with the provisions of
Section 13(a), the Company shall pay to the Manager, on the date on which such termination
is effective, a termination fee (the “Termination Fee”) equal to three times the sum of (i)
the average annual Base Management Fee and (ii) the average annual Incentive Fee earned by the
Manager during the 24-month period immediately preceding the date of such termination, calculated
as of the end of the most recently completed fiscal quarter prior to the date of termination. In
the event that any such termination occurs prior to the 24-month anniversary of this Agreement, the
average annual Base Management Fee and average annual Incentive Fee shall be calculated from the
date of this Agreement until such termination date on an annualized basis. The obligation of the
Company to pay the Termination Fee shall survive the termination of this Agreement.

          (c) No later than 180 days prior to the anniversary date of this Agreement of any year during
the Initial Term or Renewal Term, the Manager may deliver written notice to the Company informing
it of the Manager’s intention to decline to renew this Agreement, whereupon this Agreement shall
not be renewed and extended and this Agreement shall terminate effective on the anniversary date of

 17

 

this Agreement next following the delivery of such notice. The Company is not required to pay
to the Manager the Termination Fee if the Manager terminates this Agreement pursuant to this
Section 13(c).

          (d) If this Agreement is terminated pursuant to Section 13, such termination shall be
without any further liability or obligation of either party to the other, except as provided in
Sections 6, 9, 10, 13(b), 15(b), and 16. In addition, Sections 11 and
21 shall survive termination of this Agreement.

          (e) If this Agreement is terminated for any reason, including pursuant to Section 13
or Section 15 hereof, the shares of common stock issued to the Manager in respect of the
 Incentive Fee shall vest immediately to the extent such shares have not
already vested.

     Section 14. Assignment.

          (a) Except as set forth in Section 14(b), this Agreement shall terminate automatically
in the event of its assignment, in whole or in part, by the Manager, unless such assignment is
consented to in writing by the Company with the approval of a majority of the Independent
Directors; provided, however, that no such approval shall be required in the case of an assignment
by the Manager to an affiliate of the Manager if such assignment does not require the Company’s
approval under the Investment Advisers Act of 1940. Any such permitted assignment shall bind the
assignee under this Agreement in the same manner as the Manager is bound, and the Manager shall be
liable to the Company for all errors or omissions of the assignee under any such assignment. In
addition, the assignee shall execute and deliver to the Company a counterpart of this Agreement
naming such assignee as Manager. This Agreement shall not be assigned by the Company without the
prior written consent of the Manager, except in the case of assignment by the Company to another
REIT or other organization which is a successor (by merger, consolidation, purchase of assets, or
similar transaction) to the Company, in which case such successor organization shall be bound under
this Agreement and by the terms of such assignment in the same manner as the Company is bound under
this Agreement.

          (b) Notwithstanding any provision of this Agreement to the contrary, the Manager may assign
any or all of its responsibilities under Sections 2(b), 2(c) and 2(d) to any of its
affiliates in accordance with the terms of this Agreement applicable to any such assignment, and
the Company hereby consents to any such assignment. In addition, provided that the Manager
provides prior written notice to the Company for informational purposes only, nothing contained in
this Agreement shall preclude any pledge, hypothecation or other transfer of any amounts payable to
the Manager under this Agreement.

     Section 15. Termination for Cause.

          (a) The Company may terminate this Agreement effective upon 30 days’ prior written notice of
termination from the Board of Directors of the Company to the Manager, without payment of any
Termination Fee, if (i) the Manager, its agents or its assignees materially breaches any provision
of this Agreement and such breach shall continue for a period of 30 days after written notice
thereof specifying such breach and requesting that the same be remedied in such 30-day period (or
45 days after written notice of such breach if the Manager takes steps to cure such breach within
30 days of the written notice), (ii) the Manager engages in any act of fraud, misappropriation of
funds, or embezzlement against the Company or any Subsidiary, (iii) there is an event of any gross
negligence on the part of the Manager in the performance of its duties under this Agreement, (iv)
there is a commencement of any proceeding relating to the Manager’s Bankruptcy or insolvency,
including an order for relief in an involuntary bankruptcy case or the Manager authorizing or
filing a voluntary bankruptcy petition, (v) the Manager is convicted (including a plea of nolo
contendere) of a felony, or (vi) there is a

 18 

 

dissolution of the Manager and the Manager has not assigned its rights and obligations under
this Agreement pursuant to the terms and conditions of this Agreement.

          (b) The Manager may terminate this Agreement effective upon 60 days’ prior written notice of
termination to the Company in the event that the Company shall default in the performance or
observance of any material term, condition or covenant contained in this Agreement and such default
shall continue for a period of 30 days after written notice thereof specifying such default and
requesting that the same be remedied in such 30-day period. The Company is required to pay to the
Manager the Termination Fee if the termination of this Agreement is made pursuant to this
Section 15(b).

          (c) The Manager may terminate this Agreement, without payment of any Termination Fee, in the
event the Company becomes regulated as an “investment company” under the Investment Company Act,
with such termination deemed to have occurred immediately prior to such event.

     Section 16. Action Upon Termination. From and after the effective date of termination
of this Agreement, pursuant to Sections 13 or 15 of this Agreement, the Manager
shall not be entitled to compensation for further services under this Agreement, but shall be paid
all compensation accruing to the date of termination in cash (to the extent not already paid in
common stock) and, if terminated pursuant to Section 13(a) or Section 15(b), the
applicable Termination Fee. Upon such termination, the Manager shall forthwith:

               (i) after deducting any accrued compensation and reimbursement for its expenses to which it is
then entitled, pay over to the Company or a Subsidiary all money collected and held for the account
of the Company or a Subsidiary pursuant to this Agreement;

               (ii) deliver to the Board of Directors a full accounting, including a statement showing all
payments collected by it and a statement of all money held by it, covering the period following the
date of the last accounting furnished to the Board of Directors with respect to the Company or a
Subsidiary; and

               (iii) deliver to the Board of Directors all property and documents of the Company or any
Subsidiary then in the custody of the Manager.

     Section 17. Release of Money or Other Property Upon Written Request. The Manager
agrees that any money or other property of the Company or any Subsidiary held by the Manager under
this Agreement shall be held by the Manager as custodian for the Company or Subsidiary, and the
Manager’s records shall be appropriately marked clearly to reflect the ownership of such money or
other property by the Company or such Subsidiary. Upon the receipt by the Manager of a written
request signed by a duly authorized officer of the Company requesting the Manager to release to the
Company or any Subsidiary any money or other property then held by the Manager for the account of
the Company or any Subsidiary under this Agreement, the Manager shall release such money or other
property to the Company or any Subsidiary within a reasonable period of time, but in no event later
than 30 days following such request. The Manager shall not be liable to the Company, any
Subsidiary, the Independent Directors, or the Company’s or a Subsidiary’s stockholders or partners
for any acts performed or omissions to act by the Company or any Subsidiary in connection with the
money or other property released to the Company or any Subsidiary in accordance with the second
sentence of this Section 17. The Company and any Subsidiary shall indemnify the Manager
and its officers, directors, personnel, managers, and officers and against any and all expenses,
losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in
connection with the Manager’s release of such money or other property to the Company or any
Subsidiary in accordance with the terms of this

19

 

Section 17. Indemnification pursuant to this provision shall be in addition to any
right of the Manager to indemnification under Section 11.

     Section 18. Notices. Unless expressly provided otherwise in this Agreement, all
notices, requests, demands and other communications required or permitted under this Agreement
shall be in writing and shall be deemed to have been duly given, made and received when delivered
against receipt or upon actual receipt of (i) personal delivery, (ii) delivery by reputable
overnight courier, (iii) delivery by facsimile transmission with telephonic confirmation or (iv)
delivery by registered or certified mail, postage prepaid, return receipt requested, addressed as
set forth below:

          (a) If to the Company:

Provident Mortgage Capital Associates, Inc.

851 Traeger, Suite 380

San Bruno, CA 94066

Attention: Chief Financial Officer

Facsimile: 855-653-4300

          (b) If to the Manager:

PMF Advisors, LLC

851 Traeger, Suite 380

San Bruno, CA 94066

Attention: Chief Administrative Officer

Facsimile: 855-653-4300

Either party may alter the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this Section 18 for
the giving of notice.

     Section 19. Binding Nature of Agreement; Successors and Assigns. This Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and permitted assigns as provided in this Agreement.

     Section 20. Entire Agreement. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter of this Agreement, and
supersedes all prior and contemporaneous agreements, understandings, inducements and conditions,
express or implied, oral or written, of any nature whatsoever with respect to the subject matter of
this Agreement. The express terms of this Agreement control and supersede any course of
performance and/or usage of the trade inconsistent with any of the terms of this Agreement. This
Agreement may not be modified or amended other than by an agreement in writing signed by the
parties hereto.

     Section 21. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES TO THE
CONTRARY.

     Section 22. No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of any party hereto, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not

20

 

exclusive of any rights, remedies, powers and privileges provided by law. No waiver of any
provision hereunder shall be effective unless it is in writing and is signed by the party asserted
to have granted such waiver.

     Section 23. Headings. The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed part of this Agreement.

     Section 24. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts of this Agreement, individually or
taken together, shall bear the signatures of all of the parties reflected hereon as the
signatories.

     Section 25. Severability. Any provision of this Agreement that 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.

     Section 26. Gender. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number, singular or plural,
and any other gender, masculine, feminine or neuter, as the context requires.

[SIGNATURE PAGE FOLLOWS]

21

 

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

	 	 	 	 	 
	 	PROVIDENT MORTGAGE CAPITAL ASSOCIATES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PMCA ASSET I, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PMCA ASSET II, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PMF ADVISORS, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

22

 

Exhibit A

Guidelines

	•	 	No acquisition shall be made that would cause the Company to fail to qualify as a REIT for
U.S. federal income tax purposes;

	•	 	No acquisition shall be made that would cause the Company to be required to register as an
investment company under the Investment Company Act;

	•	 	The Company’s acquisitions will be in the types of Assets described under “Business—
Target Assets” in the Company’s prospectus dated
_______ ___, 2012, relating to the IPO,
subject to, and including any changes to these Guidelines that may be approved by the Manager
and the Company from time to time (the “Target Assets”); and

	•	 	Until appropriate opportunities to acquire Target Assets are identified, the Manager may
invest the proceeds of the IPO and any future offerings of the Company’s securities for cash
in interest-bearing short-term investments.

These Guidelines may be amended, restated, modified, supplemented or waived by a majority of the
Board of Directors (which must include a majority of the Independent Directors) without the
approval of the Company’s stockholders.

Exh. Aexv10w2

EXHIBIT 10.2

FORM OF STRATEGIC ALLIANCE AGREEMENT

     This Strategic Alliance Agreement (“Agreement”) is made on ___________ ___, 2012 by
and between Provident Mortgage Capital Associates, Inc., a Maryland corporation (“PMCA” and
together with its subsidiaries, the “Company”), and Provident Funding Associates, L.P., a
California limited partnership (“Provident”):

     WHEREAS, PMCA has filed a registration statement on Form S-11 with the Securities and Exchange
Commission pursuant to which PMCA intends to conduct a public offering of shares of the Company’s
common stock (the “IPO”);

     WHEREAS, upon completion of the IPO, the Company will be externally managed and advised by PMF
Advisors, LLC, a Delaware limited liability company (the “Manager”);

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1. Defined Terms. Capitalized words and phrases used in this Agreement shall have the
meanings set forth below unless defined elsewhere herein:

          (a) “Acceptance Notice” has the meaning set forth in Section 2(a)(ii)

          (b) “Acceptance Period” has the meaning set forth in Section 2(a)(ii).

          (c) “Affiliate” of any specified Person means any other Person, directly or
indirectly, controlling or controlled by or under direct or indirect common control with such
specified Person. For the purposes of this definition, “control”, when used with respect to any
Person, means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing; provided that
beneficial ownership of 10% or more of the capital stock of a Person entitled to vote in the
election of the board of directors or other governing body of such Person shall be deemed to be
control.

          (d) “Agreement” has the meaning set forth in the recitals.

          (e) “Business Day” means any day that is not a Saturday or a Sunday and excludes any
day on which banking institutions are authorized or required by law or executive order to be closed
in the States of New York or California.

          (f) “Company” has the meaning set forth in the recitals.

          (g) “Independent Directors” means the members of the board of directors of the Company
who are not officers or employees of the Manager or any Person directly or indirectly controlling
or controlled by the Manager and who are otherwise “independent” in accordance with the Company’s
articles of incorporation, bylaws and corporate governance guidelines and, if applicable, the rules
of any national securities exchange on which the Company’s common stock is listed.

 - 1 - 

 

          (h) “IPO” has the meaning set forth in the recitals.

          (i) “Manager” has the meaning set forth in the recitals.

          (j) “Master Agreements” has the meaning set forth in Section 2(a)(ii).

          (k) “Master Loan Purchase and Sale Agreement” means the master loan purchase and sale
agreement substantially in the form attached hereto as Exhibit A.

          (l) “Master Security Sales Agreement” means the master security sales agreement
substantially in the form attached hereto as Exhibit B.

          (m)
“MSR” means mortgage servicing rights.

          (n) “Offer Notice” has the meaning set forth in Section 2(a)(i).

          (o) “Offered Asset” has the meaning set forth in Section 2(a).

          (p) “Person” means any individual, corporation, partnership, joint venture, limited
liability company, estate, trust, unincorporated association, any federal, state, county or
municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.

          (q) “PMCA” has the meaning set forth in the recitals.

          (r) “Pricing Information” has the meaning set forth in Section 2(a).

          (s) “Provident” has the meaning set forth in the recitals.

          (t)
“Qualifying Asset” means any loan, residential mortgage-backed security or MSR (and/or participation interests in MSRs)
originated or owned by Provident for itself or for any Related Entity.

          (u) “Rejection Notice” has the meaning set forth in Section 2(a)(ii).

          (v) “Related Entity” means any Affiliate of Provident, including Provident Mortgage
Trust Inc. and Colorado Federal Savings Bank, and any other fund, investment vehicle or other
entity that is sponsored, managed or advised by Provident, in each case, other than the Company and
for so long as such entity remains an Affiliate of Provident.

          (w) “Right of First Offer” has the meaning set forth in Section 2.

          (x) “ROFO Period” has the meaning set forth in Section 2(a).

          (y) “ROFO Price” has the meaning set forth in Section 2(a)(i).

          (z) “Servicing Purchase Price” has the meaning set forth in Section 5(b).

          (aa) “Servicing Rights Purchase Agreement” has the meaning set forth in Section
5(b).

          (bb) “Sub-servicing Agreement” has the meaning set forth in Section 4(b).

 - 2 - 

 

     2. Right of First Offer on Qualifying Assets. Except as set forth in Section
3, prior to (x) the sale by Provident of any Qualifying Asset during the term of this
Agreement, the Company shall have a first right to purchase the Qualifying Asset before any such
Qualifying Asset is offered for sale to a Related Entity or (y) the purchase by Provident of any
Qualifying Asset from a Related Entity during the term of this Agreement, the Company shall have
been afforded a first right to purchase such Qualifying Asset prior to Provident purchasing such
Qualifying Asset, in each case in accordance with the terms and conditions set forth below (the
“Right of First Offer”).

          (a) If the Right of First Offer provided under this Section 2 shall apply with respect
to a particular asset, Provident shall provide the Company with written notice (the “Initial
Notice”) stating: (x) Provident’s bona fide intention to sell or purchase any Qualifying Asset
(the “Offered Asset”); (y) to the extent available, information relating to any bids
received or bids available on Bloomberg Professional, Tradeweb Markets LLC’s Tradeweb platform, or
a similar service relating to such Offered Asset and any other bid information from two or more
unaffiliated third parties (the “Pricing Information”), as well as any other bid
information from a third party, and (z) the terms, if any, upon which it proposes to offer or has
been offered such Offered Asset. The Company shall then have the right, for a period of one full
Business Day after the Company’s receipt of the Initial Notice (the “ROFO Period”), to
offer to purchase the Offered Asset in accordance with the following provisions:

               (i) The Company may offer to purchase the Offered Asset described in the Initial Notice by
giving Provident written notice (the “Offer Notice”) of that election prior to the end of
the ROFO Period, which shall contain the Company’s proposed purchase price and/or other
consideration for the Offered Asset (the “ROFO Price”), which ROFO Price may be subject to
adjustment in accordance with Section 2(b) hereof. The Company’s failure to respond in
writing to the Initial Notice prior to the end of the ROFO Period shall constitute the Company’s
election not to exercise its right to offer to purchase the Offered Asset.

               (ii) In the event that the Company timely delivers the Offer Notice to Provident, Provident
may elect to accept or reject the Company’s ROFO Price by giving the Company written notice (an
“Acceptance Notice” or a “Rejection Notice,” as the case may be) of that election
within one full Business Day of the date of the Offer Notice (the “Acceptance Period”).
Provident’s failure to respond in writing to the Offer Notice within the Acceptance Period shall be
deemed to constitute delivery by Provident to the Company of a Rejection Notice. If Provident
accepts the ROFO Price in a timely Acceptance Notice, Provident and the Company shall enter into,
(A) for any Offered Asset that is a loan, a loan trade confirmation substantially in the form
attached to the Master Loan Purchase and Sale Agreement, or (B) for any Offered Asset that is a
residential mortgage-backed security, a security trade confirmation substantially in the form
attached to the Master Security Sales Agreement (the Master Security Sales Agreement, together with
the Master Loan Purchase and Sale Agreement, the “Master Agreements”), which Master
Agreements and related trade confirmations may be modified from time to time by the parties in
accordance with current industry practice.

               (iii) If (A) the Company fails to respond to the Initial Notice within the ROFO Period or
otherwise elects not to offer to purchase the Offered Asset or (B) Provident rejects the Company’s
ROFO Price in a Rejection Notice or otherwise fails to respond to the Offer Notice within the
Acceptance Period, Provident may, during the one full Business Day period following the end of the
ROFO Period or the Acceptance Period, as applicable, offer and sell or acquire, as the case may be,
the Offered Asset to or from, as the case may be, (x) any Related Entity, for an amount greater
than the ROFO Price, and upon terms no more favorable in any material respect to such Related
Entity than, those specified in the Offer Notice, or (y) any Person that is not a Related Entity,
for an amount and on such terms as it may determine in its sole discretion. If Provident does not
enter into an agreement for the sale of the Offered Asset within such one full Business Day period,
the Right of First Offer provided under

 - 3 - 

 

this Section 2 shall apply and such Offered Asset shall not be offered to or acquired
from any Related Person, as the case may be, unless first re-offered to the Company in accordance
with this Agreement and the Right of First Offer contained herein.

          (b) To the extent that Pricing Information for an Offered Asset is not available, the ROFO
Price shall be adjusted to equal the fair market value of the Offered Asset, which shall be
determined by a single independent third party. The Company and Provident  may, but shall not
be required to, retain the service of an independent third party if
Pricing Information for an
Offered Asset is available. The independent third party shall be selected from
a pool of at least three independent third parties selected from time to time by a majority of the
Independent Directors, subject to Provident’s reasonable consent, and no single independent third
party shall determine the fair market value of an Offered Asset more than three times in a row.
The determination of fair market value by the selected independent third party shall be performed
either prior to or following completion of the subject transaction. To the extent that fair market
value is determined by an independent third party prior to the completion of the subject
transaction, the ROFO Price shall be adjusted to reflect the fair market value as determined by the
third party. To the extent that fair market value is determined by the independent third party
following completion of any subject transaction, such third party shall complete the determination
of fair market value within 30 calendar days following the completion of the fiscal quarter in
which the transaction was consummated. To the extent that the independent third party determines
that the ROFO Price paid by the Company to Provident during the prior fiscal quarter was greater
than the fair market value of the Offered Asset purchased during such fiscal quarter, Provident
shall pay the difference in cash to the Company within five Business Days following such
determination by the independent third party. To the extent that the independent third party
determines that the ROFO Price paid by the Company to Provident was less than the fair market value
of the Offered Asset purchased during such quarter, the Company shall pay the difference in cash to
Provident within five Business Days following such determination by the independent third party.
The cost of any such independent third party shall be borne equally
by Provident and the Company.

     3. Right of First Offer Limitations/No Obligation to Purchase. Notwithstanding any
provision to the contrary contained herein, the Right of First Offer shall not apply (a) to any
sale by Provident of any Qualifying Asset to any Person that is not a Related Entity, (b) to a
Qualifying Asset held by a Related Entity, which Related Entity is a financing or securitization
vehicle, to the extent that exercise of the Right of First Offer would violate such financing or
securitization vehicle’s related documentation and (c) if it is in violation of any applicable law.
In addition, notwithstanding any provision to the contrary contained herein, the Company shall be
under no obligation to purchase any Qualifying Asset from Provident, and nothing herein shall be
deemed to restrict the Company’s ability to purchase Qualifying Assets and other assets from
sources other than Provident.

     4. Mortgage Loan Sub-servicing.

          (a) During the term of this Agreement, Provident shall have the right to act as mortgage loan
sub-servicer with respect to any loan that the Company purchases from Provident or any other Person
on a servicing-released basis; provided, that the Company shall have the right to engage an
alternative mortgage loan sub-servicer for a specific portfolio of loans based on a determination
by a majority of the Independent Directors that the initial appointment of Provident as mortgage
loan sub-servicer for such portfolio will be materially adverse to the Company or its business,
such as when such appointment is prohibited by contractual, regulatory or other legal limitations
applicable to the specific loan portfolio or may be otherwise prohibited by law, rule or
regulation.

          (b) In the event that Provident exercises its right to act as sub-servicer with respect to a
loan as provided in Section 4(a), the Company and Provident shall enter into a
sub-servicing agreement substantially in the form attached hereto as Exhibit C (each, a
“Sub-servicing Agreement”), which Sub-servicing Agreements may be modified from time to
time by the parties in accordance with current industry practice. The compensation payable by the
Company to Provident for acting as sub-servicer and

 - 4 - 

 

other terms and conditions of the sub-servicing for the loan shall be set forth in the
Sub-servicing Agreement. Such compensation and the other terms and conditions will be reviewed and
approved by a majority of the Independent Directors on an annual basis.

     5. Mortgage Loan Servicing

          (a) To the extent that the Company seeks to sell the servicing on a loan, Provident shall have
a right of first offer to purchase the servicing on such loan before the loan and its servicing is
offered for sale to a third party.

          (b) In the event that Provident exercises its right to purchase the servicing on a loan as
provided in Section 5(a), the Company and Provident shall enter into a servicing rights
purchase agreement substantially in the form attached hereto as Exhibit D (the
“Servicing Rights Purchase Agreement”), which Servicing Rights Purchase Agreement may be
modified from time to time by the parties in accordance with current industry practice. The
purchase price (the “Servicing Purchase Price”) and other terms and conditions of the
purchase and sale of such servicing rights shall be set forth in the Servicing Rights Purchase
Agreement for each such purchase and sale.

          (c) The Servicing Purchase Price shall be adjusted to equal the fair market value of the
servicing rights, which shall be determined by a single independent third party. The independent
third party shall be selected from a pool of at least three independent third parties selected from
time to time by a majority of the Independent Directors, subject to Provident’s reasonable consent,
and no single independent third party shall determine the fair market value of the servicing rights
more than three times in a row. The determination of fair market value by the selected independent
third party shall be performed either prior to or following completion of the subject transaction.
To the extent that fair market value is determined by an independent third party prior to the
completion of the subject transaction, the Servicing Purchase Price shall be adjusted to reflect
the fair market value as determined by the third party. To the extent that fair market value is
determined by the independent third party following completion of the subject transaction, such
third party shall complete the determination of fair market value within 30 calendar days following
the completion of the fiscal quarter in which the transaction was consummated. To the extent that
the independent third party determines that the Servicing Purchase Price paid by the Company to
Provident during the prior fiscal quarter was greater than the fair market value of the servicing
rights purchased during such fiscal quarter, Provident shall pay the difference in cash to the
Company within five Business Days following such determination by the independent third party. To
the extent that the independent third party determines that the Servicing Purchase Price paid by
the Company to Provident during the prior fiscal quarter was less than the fair market value of the
servicing rights purchased during such quarter, the Company shall pay the difference in cash to
Provident within five Business Days following such determination by the independent third party.

     6. Term; Termination.

          (a) Unless terminated earlier in accordance with the terms hereof, the term of this Agreement
shall be for the longer of (x) three years, or (y) the date that is 12 months following the date on
which the Manager or an affiliate of the Manager is no longer serving as the Company’s manager.

          (b) The Company or Provident shall have the right to terminate this Agreement if the
non-terminating party materially breaches any provision of this Agreement and such breach shall
continue for a period of 30 calendar days after written notice thereof specifying such breach and
requesting that the same be remedied within such 30-calendar day period (or 45 calendar days after
written notice of such breach if the non-terminating party takes steps to cure such breach within
30 calendar days of the written

 - 5 - 

 

notice). Following termination of this Agreement, the parties shall have no further
obligations or liabilities hereunder except for obligations and liabilities accrued prior to such
termination.

     7. Assignment. This Agreement may not be assigned by either party hereto, in whole or
in part, whether directly or indirectly by merger, consolidation or other transfer of a party’s
assets substantially or as an entirety, without the prior written consent of the other party.

     8. Notices. Unless expressly provided otherwise in this Agreement, all notices,
requests, demands and other communications required or permitted under this Agreement shall be in
writing and shall be deemed to have been duly given, made and received when delivered against
receipt or upon actual receipt of (i) personal delivery, (ii) delivery by reputable overnight
courier, (iii) delivery by facsimile transmission with telephonic confirmation or (iv) delivery by
registered or certified mail, postage prepaid, return receipt requested, addressed as set forth
below:

	 	(a)	 	If to the Company:
	 
	 	 	 	Provident Mortgage Capital Associates, Inc.

851 Traeger Avenue, Suite 380

San Bruno, California 94066

Attention: Chief Investment Officer

Facsimile: (855) 653-4301
	 
	 	(b)	 	If to Provident:
	 
	 	 	 	Provident Funding Associates, Inc.

851 Traeger Avenue, Suite 380

San Bruno, California 94066

Attention: Chief Financial Officer

Facsimile: (650) 652-1350

     Either party may alter the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this Section 8 for
the giving of notice.

     9. Independent Third Parties. To the extent that an independent third party is used
to determine the fair market value of an Offered Asset or servicing rights pursuant to Section
2(b) or Section 5(c), any fee associated with the independent third party’s
determination of fair market value shall be borne equally by the Company and Provident.

     10. Binding Nature of Agreement; Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and permitted assigns as provided in this Agreement.

     11. Entire Agreement. This Agreement contains the entire agreement and understanding
among the parties hereto with respect to the subject matter of this Agreement, and supersedes all
prior and contemporaneous agreements, understandings, inducements and conditions, express or
implied, oral or written, of any nature whatsoever with respect to the subject matter of this
Agreement. The express terms of this Agreement control and supersede any course of performance
and/or usage of the trade inconsistent with any of the terms of this Agreement. This Agreement may
not be modified or amended other than by an agreement in writing signed by the parties hereto.

 - 6 - 

 

     12. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES TO THE CONTRARY.

     13. No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of any party hereto, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. No
waiver of any provision hereunder shall be effective unless it is in writing and is signed by the
party asserted to have granted such waiver.

     14. Specific Performance. In the event of a breach by any party to this Agreement of
its obligations under this Agreement, any party injured by such breach, in addition to being
entitled to exercise all rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement. The parties agree that the provisions of
this Agreement shall be specifically enforceable, it being agreed by the parties that the remedy at
law, including monetary damages, for breach of such provision will be inadequate compensation for
any loss and that any defense in any action for specific performance that a remedy at law would be
adequate is waived. In the event of any breach of this Agreement by any party hereto, each such
breaching party agrees to indemnify the persons to whom a representation and warranty is given or
an obligation is owed under this Agreement for all damages, costs and expenses (including
reasonable attorneys’ fees) actually incurred as a result of any such breach.

     15. Headings. The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed part of this Agreement.

     16. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original as against any party whose signature appears thereon,
and all of which shall together constitute one and the same instrument. This Agreement shall
become binding when one or more counterparts of this Agreement, individually or taken together,
shall bear the signatures of all of the parties reflected hereon as the signatories.

     17. Severability. Any provision of this Agreement that 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.

     18. Gender. Words used herein regardless of the number and gender specifically used,
shall be deemed and construed to include any other number, singular or plural, and any other
gender, masculine, feminine or neuter, as the context requires.

[Signatures begin on the following page]

 - 7 - 

 

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

	 	 	 	 	 	 	 

	 	 	PROVIDENT MORTGAGE CAPITAL ASSOCIATES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	PROVIDENT FUNDING ASSOCIATES, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

 - 8 - 

 

Exhibit A

FORM OF MASTER LOAN PURCHASE AND SALE AGREEMENT

- Exh. A-1 -

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