Document:

Ex. 10.20 - Agency Agreement (2)

AGENCY AGREEMENT

This Agreement is made on
the 27th day of December, 2000 between NewState Second Mortgage SPC
(hereinafter referred to as the “Principal”) and H&CB (hereinafter
referred to as the “Agent”) for the purpose of entrusting certain
business operations of the Principal to the Agent in accordance with Article 23
of the Asset Liquidation Law (the “Law”). 

Article 1:  Definitions

The following terms when
used in this Agreement shall have the following respective meanings: 

"Escrow Account" shall mean the Principal's account opened with the Agent pursuant to Article 11(1) of this Agreement or its
replacement account.

"Collateral" shall mean the houses in which NewState Capital Co., Ltd. has established security interests as collateral for the
liquidation assets.

“Liquidation
Plan” shall mean the asset liquidation plan which the Principal filed with
the Financial Supervision Commission. 

“Liquidation
Asset” shall mean all rights for payment including principal and interest
on loans, late charges, commissions and other ancillary rights held by NewState
Capital Co., Ltd. which will be transferred to the Principal pursuant to asset
transfer agreement. 

"Asset Liquidation Settlement Date" shall mean November 14, 2000.

“Asset Backed
Securities or ABS” shall mean the 1st and 2nd class
priority bonds and the 1st and 3rd class non-priority
bonds to be issued by the Principal according to the Liquidation Plan. 

“ABS Quarter”
shall mean each period of three (3) months counting from the date of the
issuance of ABS. ABS Quarter, other than the initial ABS Quarter, shall commence
on the last day of the immediate previous ABS Quarter. 

"Asset Management Business" shall mean the business entrusted to the Asset Manager in accordance with Article 2 of the Asset
Management Agreement.

"Asset Management Agreement" shall mean the agreement made between the Principal
and NewState Capital Co., Ltd. on December 27, 2000 for the purpose of management, operation and disposition of Liquidation Asset in
connection with the asset liquidation in accordance with the Liquidation Plan.

"Asset Manager" shall mean NewState
Capital Co., Ltd.

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"Asset Transfer Agreement" shall
mean the agreement for transfer of assets made between the Principal and NewState Capital
Co., Ltd. on December 27, 2000 in connection with the Asset Liquidation in accordance
with the Asset Liquidation Plan.

“Debtor” shall
mean the principal debtor, guarantor and others who are liable to perform the
obligations on the liquidated assets. 

“Installment Housing
Financing Agreement” shall mean the agreement applicable to the underlying
liquidation assets including the financing agreement made between the transferor
and the debtor on the liquidated asset and the standard financing transaction
regulations of the transferor. 

Article 2:  Entrusted
Business

The Principal entrusts to
the Agent all the Principal’s businesses except for those which require the
resolution of the meeting of the members of the Principal, or which are under
the exclusive jurisdiction of the Principal’s director, or which have been
entrusted to the Asset Manager pursuant to the Asset Management Agreement. 

Article 3:  Notice and Publication

(1)  When necessary, the Agent shall give notices to the members of the Principal in
accordance with the Principal's Articles of Incorporation.

(2)  The same applies
to publications under this Agreement.

Article 4:  Roster
of Members

(1)  The Agent shall maintain the roster (the "Roster") of the members of the Principal containing the addresses and numbers of
investment units.

(2)   The Agent shall be
responsible for receiving requests for transfer of title and entering the same
into the Roster. 

(3) The Agent shall be
responsible for receiving from the Principal’s members or their
representatives reports on the name, address, specimen seal and changes thereto
and maintaining the same. 

Article 5:  Meeting of the Members

(1)  For the meeting of the Principal's members, the Agent shall give notice to the Principal's members or their designees containing
the agenda, date, time and the place of
the meeting.

(2)  The Agent shall receive
and organize documentary resolutions of the members and deliver same to the
Principal. 

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(3)   The Agent shall prepare the minutes of the meetings of the
members, obtain the signatures of the chairman and director, maintain same and
give copies of same to the members, when requested. 

Article 6:  Registration
 In Accordance With Asset Liquidation Law

(1)  The Agent shall be responsible for the registration in the event the Principal is required to do so under the Law.  Provided,
however, that the registration of the Liquidation Plan shall be the responsibility of LG Investment and Securities Co., Ltd. which is
the underwriter of the Principal's ABS.

(2)  In the event the Principal is required to be examined or to submit documents under the Law, the Agent shall do acts necessary
for the benefit of the Principal.

(3) The Agent shall keep
and maintain copies of all agreements, registrations and other proofs and, when
requested, offer same for the inspection of Financial Supervision Commission or
ABS investors. 

Article 7:  Financial Statements, etc.

The Agent shall have the Asset Manager prepare, submit, keep and maintain all financial statements and records in accordance with the
Asset Management Agreement.

Article 8:  Business Report, Tax Return, etc.

(1)  On behalf of the Principal, the Agent shall prepare and submit business reports, bi-annual reports and other documents as
required by the securities laws.

(2)   On behalf of the
Principal, the Agent shall submit necessary documents to the tax offices or
other governmental departments. 

Article 9:  Management of
the Liquidation Asset

(1)   Upon receipt of notice
of occurrence of causes for redemption in accordance with Article 7(1) of the
Asset Transfer Agreement, the Agent shall promptly notify the credit examination
agency and, within five (5) business days of receipt of such a notice, demand
redemption of Liquidation Asset pursuant to the provisions of the Asset Transfer
Agreement. 

(2)   The Agent shall
regularly examine and maintain the computerized data on collection status of
Liquidation Asset when they are received from the Asset Manager in accordance
with Article 7(5) of the Asset Management Agreement. 

(3)   The Agent shall, on
behalf of the Principal, promptly notify the following to the Debtor in the
event it performs substitute asset management business or a substitute asset
manager is appointed in accordance with Article 7(5) of the Asset Management
Agreement as a result of the rescission of the Asset Management Agreement: 

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     1.  That the Asset Management Agreement between the Principal and the Asset
Manager has been rescinded and, therefore, the Asset Manager no longer has the authority to receive payments; 

     2.  The Agent or the substitute asset manager will be responsible for the
return and management of the Liquidation Asset in the future replacing the Asset Manager; and 

     3.  The Debtor should make the payments for principal and interest directly to the Receipt Management Account from now on. 

(4)   In the event the Asset
Management Agreement is rescinded and the Agent takes over the substitute asset
management business or a substitute asset manager is appointed in accordance
with Article 10 of this Agreement, the Agent shall promptly notify LG Investment
and Securities Co., Ltd. and the credit examination agency and take other
measures as required by the Law. 

(5)   When the Agent deems it necessary for management of the Liquidation Asset, it shall have the right to demand NewState Capital
Co., Ltd. to record transfer of mortgage on the Collateral to the Principal.

(6)   The Agent shall deliver
to the Principal any notices it may receive in connection with the ABS. 

Article 10:  Substitute
Asset Management

(1)   In the event of the
occurrence of any causes set forth in Article 14(1) of the Asset Management
Agreement, the Agent may immediately (I) rescind the Asset Management Agreement
and become the substitute asset manager, or (ii) appoint itself or a third party
a reserve substitute asset manager. Even after the Agent or a third party is
appointed a reserve substitute asset manager, the Agent may rescind the Asset
Management Agreement if the causes set forth in Article 14(1) of the Asset
Management Agreement are not cured in which event the reserve substitute asset
manager shall become the substitute asset manager. 

(2)   In the event the Agent
becomes the reserve substitute asset manager or the substitute asset manager
pursuant to Article 10(1) above, the Agent still shall have the right to appoint
a third party as the reserve substitute asset manager or the substitute asset
manager within the limits of continuity of the asset management business. In the
event the third party becomes incapable of performing the business as the
reserve substitute asset manager or the substitute asset manager, the Agent
shall succeed the position of reserve substitute asset manager or the substitute
asset manager. 

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(3)   The Agent shall staff
sufficient number of personnel and secure an appropriate office space for the
asset management business (including substitute asset management business) as
set forth in Article 10(1) and (2) above. 

(4)  In the event the Agent performs the business pursuant to Article 10(1) and (2) above or a new reserve substitute asset manager
or a substitute asset manager is appointed, the costs for necessary computerization or other preparatory work shall be borne by the
Principal.

(5)   The service fee for the
substitute asset management shall be 0.25% of the outstanding balance of the ABS
as of the first day of each ABS Quarter. Provided, however, in the event the
outstanding balance of the priority ABS is less than a half of the total
outstanding balance of the priority ABS, the service fee shall be 0.375%. The
service fee for the reserve substitute asset manager shall not exceed 0.10% of
the outstanding balance of the ABS as of the first day of each ABS. 

Article 11:    Escrow Account

(1)   The Principal agrees to
open an escrow account with the Agent for the purpose of managing payments for
ABS and monies collected by Asset Manager. 

(2)   On the last day of each
ABS Quarter, the Agent shall make the following payments out of the escrow
account on behalf of the Principal. However, payments for fees for issuance of
ABS (including legal fees, accounting fees, credit examination fees and
underwriting fees) shall be made the next day following the issuance of ABS. In
the event the following become due during the next ABS Quarter (except the last
day of ABS Quarter), the payments shall be made out of the escrow account when
they are due: 

     1.  Corporate tax and other taxes of the Principal in accordance with Article 22 of the Law.

     2.  Service fee to the Asset Manager and other expenses

     3.  Service fee to the Agent and other expenses

     4.  The following ancillary expenses:

            a.  Fees to the credit examination agency

            b.  Fees and expenses to the accounting auditor

            c.  Legal fees and expenses not to exceed 20,000,000 Won per year

     5.  Interest on the 1st class priority ABS

     6.  Principal of the 1st class priority ABS

     7.  Other payments on the 1st class priority ABS including default interest and
late charge

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     8.  Interest on the 2nd class priority ABS

     9.  Principal of the 2nd class priority ABS

     10.  Other payments on the 2nd class priority ABS including default interest and
late charge

     11.  Interest on loans made pursuant to Article 13 of this Agreement

     12.  Principal of loans made pursuant to Article 13 of this Agreement

     13.  Other ancillary expenses of the Principal

     14.  Principal and interest on the 1st class non-priority ABS

     15.  All other payments to the 1st class non-priority ABS including default interest
and late charge

     16.  Principal and interest on the 2nd class non-priority ABS

     17.  All other payments to the 2nd class non-priority ABS including default
interest and late charge

     18.  Principal and interest on the 3rd class non-priority ABS

     19.  All other payments to the 3rd class non-priority ABS including default interest
late charge

(3)  Other than the above,
the Agent shall not withdraw funds from the escrow account unless authorized by
the Principal. 

(4)  The Principal
 shall not transfer or pledge the escrow account. 

Article 12:  Investment of
 Surplus Funds 

(1)  In the event the balance of the escrow account exceeds 105% ("Minimum Deposit
Amount”) of the total
expenses set forth in Article 11 (2) 1 through 5, 7, 8, 10 and 11, which are due
at the end of each ABS Quarter, the Agent may invest the funds in the following
manner: 

     1.  Deposits with financial
institutions with credit rating of AAA or above (including purchase of transferable CD)

     2.  Government or municipal
 bond with credit rate of AAA or above

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     3.  Bond with credit rating of
AAA or above issued by government invested
organizations in accordance with Government Invested Organizations Management Law

     4.  Corporate bond with credit
 rate of AAA or above or CP with credit rate of A1 or above

(2)   Notwithstanding Article
12(1) above, in the event the principal and interest on the priority ABS have
been fully paid off, the Agent may invest the surplus funds in products issued
by financial institutions with credit rate of at least the highest credit rating
of non-priority ABS. 

(3)   In the event the total
surplus funds exceed One Billion Won as of 20 days prior to the close of an ABS
Quarter, the Agent may prepay the principal of the priority ABS at the end of
the ABS Quarter in units of One Billion Won or the amount of the principal if it
is less than One Billion Won. In such an event, the Agent shall forthwith notify
the Securities Depository Commission of the amount of principal and interest so
prepaid and publish same in Naewoe Economics Newspaper. 

(4)   The prepayment as set
forth in Article 12 (3) above shall be made in a fair manner among the ABS
holders. The Agent shall be considered to have acted fairly if it has made the
prepayment in compliance with the requirements in Article 12 (3). 

(5)   After the prepayment of
the priority ABS, the Agent may prepay the non-priority ABS pursuant to its
terms and conditions. In such an event, the Agent shall have the right to demand
the Asset Manager to dispose of the all the remaining Liquidation Asset in
accordance with Article 12 of the Asset Transfer Agreement and shall notify the
Securities Depository Commission of the amount of principal and interest to be
so prepaid and publish same in Naewoe Economics Newspaper no later than 20 days
prior to the close of the ABS Quarter. 

(6)   The investments
enumerated in Article 12 (1) above (“Qualified Investments”) shall
mature prior to the priority ABS and the Agent shall determine the maturity of
the Qualified Investments so that the funds necessary for payments set forth in
Article 12 (2) may be secured on the previous business day of the payment date. 

(7)   In the event the credit
rate of the products enumerated in Article 12 (1) above is downgraded, the
Agent, after consultation with the Asset Manager, shall dispose of the product
within 15 days and invest the funds in other Qualified Investments. 

(8)  The Agent shall not
 invest in the same product in excess of the following ratio:

     1.  (1)   1 and 2:  100% of the total
 of surplus funds and investment amount
(purchase price of the Qualified Investments)

     2.  (1)  
 3:  80% of the above

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     3.  (1)   4:  30% of the above

(9)  Notwithstanding Article 12 (8) above, the Agent may not invest more than 20% of the total of surplus funds and investment amount
in (1) 4 Qualified Investments issued by one person or its subsidiaries (as defined in the Regulation of Monopoly and Fair
Transaction Law).

(10)   The Agent shall
dispose of the Qualified Investments if the funds necessary to pay as set forth
in Article 11 (2) are not secured on or prior to the previous business day of
the payment date. 

(11)   The Agent shall
immediately deposit the principal or interest on the Qualified Investments into
the Receipt Management Account. 

(12)   The investments herein
shall be made by the Agent on behalf of the Principal and under the name of the
Principal. The Agent shall maintain books and records relevant to the
investments and provide the Principal and the Asset Manager with information on
the investment of surplus funds and Qualified Investments each month. 

Article 13:  Borrowing Funds

In the event the Receipt
Management Account is not sufficient to make the payments for Article 11 (2) 1
through 11, the Principal, in consultation with the Agent, may borrow funds from
the Agent or other institutions. 

Article 14:  Reports 

(1)   Within seven (7)
business days after the close of the first ABS Quarter and each succeeding ABS
Quarter, the Agent shall submit to the Principal and the Asset Manager reports,
in the agreed upon forms, on the investment of surplus funds, the funding plan
for the next ABS Quarter, other businesses entrusted to the Agent and other data
and information reasonably requested by the Principal and Asset Manager. 

(2)   The Agent shall submit
data reasonably requested by the credit examination agency in a timely manner. 

Article 15:  Liquidation 

The Agent shall fully
cooperate with the Principal in Principal’s liquidation including
distribution of remaining property. 

Article 16:    Agent's Representations
and Warranties 

The Agent represents and warrants
that: 

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        1.
The Agent is duly organized and existing under the laws of the Republic of Korea
and has all the power and authority to perform this Agreement in accordance with
its provisions and for the benefit of the Principal. 

        2.
The Agent has completed all the internal procedures and obtained all the
governmental approvals and permits necessary for entering into and performing
all the obligations under this Agreement. 

Article 17:    Fiduciary Duty
of the Agent

(1)   The Agent shall
exercise a fiduciary duty in performing all the businesses entrusted under this
Agreement. 

(2)    The Agent shall exercise the power and authority entrusted by the Asset Transfer Agreement and the Asset Management Agreement
with the fiduciary duty. 

Article 18:    Damages 

(1)   The Agent covenants and
agrees to perform all the terms of this Agreement in good faith and care and to
compensate all the damages that the Principal may incur as a result of the
Agent’s failure to do so. 

(2)   The aforesaid
compensation of damages shall not limit the Principal’s rights under
Article 20 hereof. 

Article 19:  Resignation of
the Agent

The Agent may not resign without
the Principal's consent.

Article 20:  Rescission of
Agreement

(1)  The Principal may
rescind this Agreement in the event:

        1.  
The Agent fails to perform its obligations under this Agreement and fails to
cure within 30 days after receipt of notice from the Principal or the Asset Manager;

        2.  
The Agent is subjected to dissolution, reorganization, composition or bankruptcy
proceedings; a court order or judgment for dissolution against the Agent is
entered; or the Agent is subjected to suspension of business or other similar
administrative decisions: 

        3.  
Any of the Agent's representations
and warranties contained in Article 16 hereof is found to be false; or

        4.  
The Principal, in its reasonable judgment, decides that the purpose of this
Agreement cannot be fulfilled due to pertinent laws, rules and regulations.

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(2)  
In the event of rescission of this Agreement, the Agent shall turn over the
entrusted businesses to a third party in compliance with the Principal’s
instructions through which time the Agent shall continue to perform all its
obligations in good faith and care. 

Article 21:  Expenses and
Fees

(1)   Notwithstanding the
limitations contained in Article 11 (2), the Agent may from time to time
withdraw reasonable amount of all the expenses (except the Agent’s ordinary
business expenses) from the Receipt Management Account and make necessary
payments. 

(2)   The Principal agrees to
pay the Agent as compensation the amount equal to the outstanding balance of ABS
as of the first day of each ABS Quarter multiplied by 0.05%. However, in the
event the outstanding balance of the priority ABS as of the first day of the ABS
Quarter is less that a half of the total outstanding balance of the initial
priority ABS, the compensation herein shall be the amount equal to the
outstanding balance of ABS multiplied by 0.0625%. 

(3)  I the event the Agent resigns or is dismissed, the compensation
shall be adjusted as of the date the resignation or dismissal
takes effect. 

Article 22:  Conditions Precedent 

This Agreement is contingent upon the
following:

        1.  
The Liquidation Plan including the Asset Transfer Agreement and this Agreement shall be registered with the Financial
Supervision Commission;

        2.  
NewState Capital Co., Ltd. shall register with the Financial Supervision Commission the transfer of the Liquidation
Asset made in accordance with the Liquidation Plan;

        3.  
The Agent shall submit proof of power and authority to make and perform this
Agreement including certified copies of resolution of the board of directors,
articles of incorporation, corporate register, specimen signature of the
representative director and other documents reasonably requested by the
Principal; 

        4.  
All the necessary governmental approvals or permits shall be obtained and other necessary procedures shall be completed;
and

        5.  
The Agent shall submit to the Principal all other documents reasonably requested by the Principal.

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Article 23:  Duration

Unless otherwise provided,
this Agreement shall be valid until the principal and interest on the ABS are
fully paid off. 

Article 24:  Successors and
Assigns

This Agreement shall apply
to the successors, assigns, heirs and representatives of the parties. 

Article 25:  Notice

The notice under this
Agreement shall be sent to the following addresses by postage pre-paid,
registered mail or facsimile. Provided, however, that notice by facsimile shall
be effective only when the receipt thereof is acknowledged by the recipient. 

Notice to the Agent:

H&CB 

36-3 Yoido-Dong Youngdeungpo-Gu

Seoul

Attn:    ABS Team

Fax:   02-769-8997

Notice to the Principal:

NewState Second Mortgage SPC

36-3 Yoido-Dong Youngdeungpo-Gu

Seoul

Attn:  H&CB ABS Team

Fax:  02-769-8997

Article 26:  Jurisdiction

This Agreement shall be construed in accordance with the laws of the Republic of Korea and all the legal proceedings shall be subject
to the jurisdiction of Seoul District Court.

Principal:  NewState Second Mortgage SPC

                 36-3 Yoido-Dong Youngdeungpo-Gu

                 Seoul

                 By:  Suk Ho Kim, Director (Seal)

Agent:  H&CB

                 36-3 Yoido-Dong Youngdeungpo-Gu

                 Seoul

                 By:  Jung Tae Kim, Representative Director (Seal)

Page 11Ex. 10.21 - Asset Agreement (1)

ASSET MANAGEMENT AGREEMENT

This Agreement is made on
the 27th day of December, 2000 between NewState Second Mortgage SPC
(hereinafter referred to as the “Principal”) and NewState Capital Co.,
Ltd. (hereinafter referred to as the “Asset Manager”) for the purpose
of management, operation and disposition of the liquidation assets (as defined
hereinbelow) which will be transferred to the Principal in accordance with the
asset transfer agreement to be executed between the Principal and the Asset
Manager. 

Article 1:  Definitions

The following terms when
used in this Agreement shall have the following respective meanings: 

"Collateral" shall mean the houses in which NewState Capital Co., Ltd. has established security interests as collateral for the
liquidation assets.

“Escrow Account”
shall mean the account designated as the Principal’s escrow account for the
purpose of agency agreement. 

"Agent" shall mean H&C.

"Agency Agreement" shall mean the agreement made between the Principal and the Agent on December 27 for the purpose of asset
liquidation.

"Liquidation Plan" shall mean the asset liquidation plan which the Principal filed with the Financial Supervision Commission in
accordance with Article 3 of the Asset Liquidation Law.

“Liquidation
Asset” shall mean all rights for payment including principal and interest
on loans, late charges, commissions and other ancillary rights held by NewState
Capital Co., Ltd. which will be transferred to the Principal pursuant to asset
transfer agreement. 

"Asset Liquidation Settlement Date" shall mean November 14, 2000.

“Asset Backed
Securities or ABS” shall mean the 1st and 2nd class
priority bonds and the 1st and 3rd class non-priority
bonds to be issued by the Principal according to the Liquidation Plan. 

“ABS Quarter”
shall mean each period of three (3) months counting from the date of the
issuance of ABS. ABS Quarter, other than the initial ABS Quarter, shall commence
on the last day of the immediate previous ABS Quarter. 

“Asset Management
Business” shall mean the business entrusted to the Asset Manager in
accordance with Article 2 of this Agreement. 

"Asset Transfer Agreement" shall mean the agreement for transfer of assets made between the Principal and NewState Capital Co., Ltd.
on December 27, 2001 in connection with the Asset Liquidation in accordance with the Asset Liquidation Plan.

“Debtor” shall
mean the principal debtor, guarantor and others who are liable to perform the
obligations on the liquidated assets. 

“Installment Housing
Financing Agreement” shall mean the agreement applicable to the underlying
liquidation assets including the financing agreement made between the transferor
and the debtor on the liquidated asset and the standard financing transaction
regulations of the transferor. 

Article 2:  Designation of Asset Manager

The Principal hires the
Asset Manager, and the Asset Manager accepts such hiring, for the following
business: 

     1.  Preservation, collection and management of Liquidation Assets.

     2.  Maintenance and management of books and records relevant to monies received and others.

     3.  Execution of collateral and enforcement of other rights ancillary to the Liquidation Assets.

    4.  Other ancillary business.

Article 3:  Fiduciary Duty of the Asset Manager

(1)  The Asset Manager shall
manage the assets in good faith and with the care of a fiduciary. 

(2)  The Asset Manager may not delegate all or part of the asset management business to a third party without the Principal's written
consent.

Article 4:  Separate Management of Liquidation Asset

(1)  The Asset Manager shall physically
separate the Liquidation Assets with its own assets and shall maintain separate
records. 

(2)  The Asset Manager shall
prepare and maintain separate management books and records on the Liquidation
Asset, and, in the event its business is computerized, shall separate its own
assets from the Principal’s assets. 

(3)  The Asset Manager shall
maintain and manage, for the benefit of the Principal, all agreements, filings,
registrations and other proofs and provide the Agent with the copies of same
(including computer printouts) within three (3) business days of the execution
of this Agreement. 

(4)  The Asset Manager shall allow the Agent to examine the documents, books and records, computer printouts, etc. as mentioned in
(1) through (3) of this Article.

Article 5:  ollection and Management of Liquidation Asset

(1)  The Asset Manager shall collect and manage the Liquidation Asset with the same care as with the same kind of rights or
collateral it holds.

(2)  The Asset Manager shall
deposit into the Escrow Account all the monies collected from the debtors,
monies received from public auctions and other monies obtained from the
management, operation and disposition of the Liquidation Asset within three (3)
business days. In the event the deposit delayed, the Asset Manager shall pay
late charges at the rate of 18% per annum until all the monies are deposited. 

(3)  In the event the debtor
of the Liquidation Asset defaults in the payment of principal or interest, the
Asset Manager shall take proper legal measures for collection including
execution of collateral and demand against the guarantor. The Principal shall
cooperate with the Asset Manager’s collection efforts including delivery of
power of attorney. 

(4)  The Asset Manager, when necessary for the performance of the asset management business, shall register transfer of collateral to
the Principal pursuant to the terms of the Asset Transfer Agreement and the Principal shall cooperate with the Asset Manager in this
regard.

(5)  In the event the Asset
Manager recognizes that the collected monies have not been deposited into the
Escrow Account due to the Asset Manager’s mistake, error in automatic
transfer or other computer-related errors, it shall immediately (within one
business day after the mistake or error is brought to its attention) make the
deposit into the Escrow Account. 

(6)  Notwithstanding the
provision of Article 5(2) above, the Asset Manager shall deposit on the date of
the execution of Agency Agreement all the monies collected in relation to the
Liquidation Asset between the Asset Liquidation Settlement Date and the
execution of the Agency Agreement. 

(7)  In the event the debtor
of the Liquidation Asset requests change of debtor under the Installment Housing
Financing Agreement due to the transfer of collateral, the Asset Manager may,
with the consent of the Principal, approve of such a change only if the new
debtor is qualified by the Asset Manager’s lending criteria. 

(8)   Even when the debtor is
in default and the debtor’s obligations are accelerated pursuant to the
terms of the Installment Housing Financing Agreement, the Asset Manager may, on
behalf of the Principal, reinstate the initial payment plan if the debtor pays
the principal already due, the accrued interest and late charges. The provisions
of (1) and (3) above shall still apply. 

(9)  In the event the Agent
requests for increase of interest rate on the Liquidation Asset in order for the
redemption of the priority ABS, the Asset Manager shall increase the interest
rate. 

Article 6:  Management of Documents

The Asset Manager shall
make description of the Principal’s assets on the Installment Housing
Financing Agreement or other documents and keep such documents separately from
documents of its own business. 

Article 7:  Books and Records, Reports, etc.

(1)  The Asset Manager shall
prepare the particulars, status and details of management of the
Principal’s assets in accordance with the generally accepted accounting
practices and customs and keep the same at its principal place of business. 

(2)  The Asset Manager shall, upon the request of the Principal or its agent (including the Agent), allow the Principal to examine
and make copies of the aforesaid books and records.

(3)  The Asset Manager, when
requested, shall allow holders of ABS to examine and make copies of the
aforesaid books and records within the limits of Article 1 of Asset Liquidation
Law. 

(4)  Within ten (10) days of
the end of each ABS Quarter (if it does not fall on a business day, the next
business day), the Asset Manager shall submit to the Principal a report on
collection of principal and interest, remittance to the escrow, etc. in a form
agreed upon with the Principal. 

(5)  The Asset Manager shall
prepare a monthly computerized data on the status, as of the end of the previous
month, of collection, balance of principal and interest and other matters as
agreed upon between the parties and shall submit same to the Principal by means
of e-mail or other electronic transmission as agreed upon between the parties.
The obligations of the Asset Manager herein shall continue even when this
Agreement is rescinded pursuant to Article 14(1) of this Agreement until the
asset management business is turned over to the Principal or a substitute asset
manager pursuant to Article 14(2) of this Agreement. 

(6)  In the event of the
occurrence of causes for buy-back pursuant to Article 7(1) of Asset Transfer
Agreement, the Asset Manager shall immediately notify the Principal and the
Agent in writing. Such a notice shall contain the information necessary to
identify the relevant Liquidation Asset such as the name of the debtor, the
amount of initial principal and the principal balance and the date of maturity
as well as the amount of buy-back as calculated pursuant to Article 8 of the
Asset Transfer Agreement. 

Article 8:  Financial Statements, etc.

The Asset Manager agrees to do the job as enumerated below and shall have the right, in consultation with the Principal, to employ an
auditor at the expense of the Principal.

1.  Prepare financial
statements in accordance with the generally accepted accounting practices,
customs and means and keep one set of same for the benefit of the Principal. 

2.  Prepare and submit to
the Principal’s director the following documents after the end of the
Principal’s fiscal year but no less than one week prior to the
Principal’s general meeting of the members and maintain the same: 

     a.  Balance Sheet

     b.  Profit/Loss Statement

     c.  Statement on Disposition of Profit Surplus of Loss

     d.  Cash Flow Statement

     e.  Notes and notations

     f.  Supporting documents for the above

     g.  Business report

Article 9:  Disposition of the Liquidation Asset

(1)  The Asset Manager may
not transfer the Liquidation Asset or provide it for collateral without the
Principal’s prior written consent. Provided, however, that in the event the
Asset Manager disposes of the Liquidation Asset at a proper market value in
excess of the total of principal and interest of the 1st and
2nd class non-priority ABS pursuant to Article 12 of the Asset
Transfer Agreement, the Principal’s prior written consent is not necessary. 

Article 10:  Representations and Warranties of Asset Manager

The Asset Manager represents and warrants to the Principal the following:

1.  The Asset Manager has the full authority and power to manage the Liquidation Asset for the benefit of the Principal.

2.  The Asset Manager has
completed all the corporate procedures necessary for execution and performance
of this Agreement and has obtained all the necessary governmental approvals or
licenses. 

3.  The execution of this
Agreement and the contents of this Agreement including management of the
Liquidation Asset do not violate any laws and do not contravene any agreements
binding the Asset Manager, judgments of a court or the disposition, instruction
or recommendation of any administrative agency. 

4.  The obligations of the Asset Manager under this Agreement shall be the same as other unsecured debts.

5.  In connection with the
execution of this Agreement, the Asset Manager has disclosed all the truthful
information to the Principal in good faith and has not concealed or omitted any
material information. 

Article 11:  Asset Manager's Obligations

(1)  The Asset Manager agrees to comply with the following:

        1.  
The Asset Manager shall perform all the obligations under this Agreement in good
faith and shall comply with the Asset Liquidation Law and other pertinent laws
and orders. 

        2.  
In the event of rescission of this Agreement, the Asset Manager shall deliver
all the documents requested by the Principal in connection with the Liquidation
Asset to the Principal or its designee. 

        3.  
In the event there arises any dispute with the debtor or a third party in
connection with the Liquidation Asset, the Asset Manager shall immediately bring
it to the attention of the Principal. 

(2)  The Asset Manager is not prohibited to do any of the following:

        1.  
Except for Article 5(8) and (9), the Asset Manager may not change the loan
conditions such as maturity, interest rate, rate of commission, late charge,
etc. without the Agent’s prior consent. The Agent shall not be required to
give the consent unless the Asset Manager’s request is reasonable. In any
event, the maturity of any Liquidation Asset may not be extended for more than
one (1) month and the changed interest rate shall be more than three (3) percent
over the interest rate on the 2nd class priority ABS. 

        2.  The Asset Manager is prohibited from infringing the ownership of the Principal in relation to the Liquidation Asset
transferred to it.

        3.  
The Asset Manager shall not use the information on the debtor’s
creditworthiness obtained as the manager of the Liquidation Asset for any other
purpose than for the collection of the debt or other lawful purpose. 

Article 12:  Damages

(1)  The Asset Manager covenants and agrees to perform all of the terms of this Agreement in good faith and with the necessary
standard of care, and, agrees to compensate the Principal all the damages that the Principal may incur due to the Asset Manager's
failure to perform.

(2)  The Asset
Manager’s payment of damages shall not affect the Principal’s rights
under Article 14 hereof. 

Article 13:  Resignation, etc.

The Asset Manager may not
resign without the consent of the Principal. However, the Asset Manager may
resign in the event that all the Liquidation Asset is disposed of pursuant to
Article 12 of the Asset Transfer Agreement and that the Agent agrees that all
its relevant business is completed. 

Article 14:  Rescission of Agreement

(1)  The Principal may rescind this Agreement in the event:

        1.  The Asset Manager
fails to perform its obligations under this Agreement and fails to cure within 10 days after receipt
of notice from the Principal or the Agent;

        2.  The Asset Manager
is subjected to dissolution, reorganization, composition or
bankruptcy proceedings; a court order or judgment for dissolution against the
Asset Manager is entered; or the Asset Manager is subjected to suspension of
business or other similar administrative decisions: 

        3.  Any of
the Asset Manager's representations and warranties contained in Article 10 hereof is
found to be false; or

        4.  The Asset
Manager fails to may the necessary payment to the Principal for more than five (5) business
days; or

        5.  
The Principal or the Agent, in their reasonable judgment, decides that the purpose of this Agreement cannot be fulfilled
due to pertinent laws, rules and regulations.

(2)  In the event of
rescission of this Agreement, the Asset Manager shall turn over the entrusted
businesses to a third party in compliance with the Agent’s instructions;
turn over all the documents, books and records and computer data prepared under
this Agreement to the Agent or the substitute asset manage; and perform the
following in good faith and care if requested by the Agent or the substitute
asset manager: 

     1.  
Provide, assist and input computer system and computer data for the
preservation, collection and management of the Liquidation Asset.

     2.  
Dispatch employees, not to exceed two (2), to assist substitute asset
management. The employees
should be properly experienced and qualified from the Asset Manager’s
reasonable judgment and the salary and other expenses for the employees shall be
borne by the Asset Manager. 

     3.  
Examination and search of the Asset Manager's computer system within reasonable limits for the performance of substitute
asset management.

     4.  Examination of
documents, books and records kept by the Asset Manager and workplace of the Asset Manager.

     5.  Supplementing the documents, books and records and computer data.

     6.  Others requested by
the substitute asset manager which are reasonably necessary for the substitute asset
management.

(3)  In the event of
occurrence of any causes in Article 14(1) above, the Agent may request the Asset
Manager, when reasonably necessary, to perform the obligations described in
Article 14(2) above even before the rescission of the Asset Management Agreement
and the Asset Manager shall comply with such requests in good faith. 

Article 15:  Expenses and Fees

(1)  The Asset Manager shall
request the Principal for reimbursement of expenses for public auction,
collection and legal actions no later than one (1) business day prior to the end
of each ABS Quarter and such expenses shall be paid at the end of each ABS
Quarter by the Agent pursuant to Articles 11 and 12 of the Agency Agreement. The
expenses to be paid by the Principal shall include the fees paid to the court by
the Asset Manager in connection with auction or legal action, fees and costs
actually paid to attorneys or legal assistants. Other expenses for public
auction or legal action shall be borne by the Asset Manager. 

(2)  Other expenses than
those enumerated in (1) expended in the course of the asset management shall be
borne by the Asset Manager. 

(3)  The Principal agrees
to pay the Asset Manager on the last day of each ABS Quarter as compensation the
sum equal to the outstanding balance of ABS as of the first day of the
corresponding ABS Quarter multiplied by 0.125%. In the event the outstanding
balance of the priority ABS is less than a half of the total issued priority ABS
as of the first day of the ABS Quarter, the compensation shall be the sum equal
the outstanding balance of the ABS multiplied by 0.15%. Provided, however, in
the event the Asset Manager has resigned or this Agreement has been rescinded,
the commission shall be adjusted as of the date of the resignation or the
rescission. 

Article:  16 Conditions Precedent

This Agreement is contingent upon the following:

     1.  The Liquidation
Plan shall be registered with the Financial Supervision Commission in accordance with Article 3 of the
Asset Liquidation Law;

     2.  Asset Manager shall register with the Financial Supervision Commission
 the transfer of the Liquidation Asset made in accordance with the Liquidation Plan;

;     3.  
The Agent shall submit proof of power and authority to make and perform this
Agreement including certified copies of resolution of the board of directors,
articles of incorporation, corporate register, specimen signature of the
representative director and other documents reasonably requested by the
Principal; 

     4.  All the
necessary governmental approvals or permits shall be obtained and other necessary procedures shall
be completed; and

     5.  The Agent shall
submit to the Principal all other documents reasonably requested by the Principal.

Article 17:  Duration

Unless otherwise provided,
this Agreement shall be valid until the dissolution of the Principal commences. 

Article 24:  Successors and Assigns

This Agreement shall apply to
the successors, assigns, heirs and representatives of the parties. 

Article 25:  Notice

The notice under this
Agreement shall be sent to the following addresses by personal delivery, postage
pre-paid, registered mail or facsimile. Provided, however, that notice by
facsimile shall be effective only when the receipt thereof is acknowledged by
the recipient. 

Notice to the Asset Manager:

NewState Capital Co., Ltd.

837-26 Yoksam-Dong, Kangnam-Gu

Seoul

Attn:  Kyung Soo Chung

Fax:  02-2188-6418

Notice to the Principal:

NewState Second Mortgage SPC

36-3 Yoido-Dong Youngdeungpo-Gu

Seoul

Attn:  Korea Housing Bank ABS Team

Fax:  02-769-8997

Article 20:  Jurisdiction

This Agreement shall be construed in accordance with the laws of the Republic of Korea and all the legal proceedings shall be subject
to the jurisdiction of Seoul District Court.

Principal:  NewState Second Mortgage SPC

36-3 Yoido-Dong Youngdeungpo-Gu

Seoul

By:  Suk Ho Kim, Director (Seal)

Asset Manager:  NewState Capital Co., Ltd.

837-26 Yoksam-Dong Kangnam-Gu

Seoul

By:  Byung Ki Kim, Representative Director (Seal)

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