Document:

EX-10.3

EXHIBIT 10.3

MASTER REPURCHASE AGREEMENT

This is a MASTER REPURCHASE AGREEMENT, dated as of February 15, 2006, between NEW CENTURY
MORTGAGE CORPORATION, a California corporation (a “Seller”), NEW CENTURY WAREHOUSE
CORPORATION, a California corporation (“Warehouse Corporation” or a “Seller”, and
together with New Century Mortgage Corporation, the “Sellers”), NEW CENTURY FINANCIAL
CORPORATION (the “Guarantor”) and GOLDMAN SACHS MORTGAGE COMPANY, a New York limited
partnership (the “Buyer”).

	 	 	SECTION 1. APPLICABILITY

From time to time the parties hereto may enter into transactions in which a Seller agrees to
transfer to Buyer Mortgage Loans against the transfer of funds by Buyer, with a simultaneous
agreement by Buyer to transfer to such Seller such Mortgage Loans at a date certain after the
related Purchase Date, against the transfer of funds by such Seller. This Agreement is a
commitment by Buyer to engage in the Transactions as set forth herein up to the Maximum Committed
Purchase Price, or, with respect to TPO Mortgage Loans, the Maximum Committed TPO Purchase Price;
provided, that the Buyer shall have no commitment to enter into any Transaction requested which
would result in the aggregate Purchase Price of then outstanding Transactions to exceed the Maximum
Committed Purchase Price or, with respect to TPO Mortgage Loans, the Maximum Committed TPO Purchase
Price. Each such transaction shall be referred to herein as a “Transaction” and shall be
governed by this Repurchase Agreement, unless otherwise agreed in writing.

	 	 	SECTION 2. DEFINITIONS

As used herein, the following terms shall have the following meanings (all terms defined in
this Section 2 or in other provisions of this Repurchase Agreement in the singular to have the same
meanings when used in the plural and vice versa)

“1934 Act” shall have the meaning set forth in Section 32 hereof.

“Accepted Servicing Practices” shall mean, with respect to any Mortgage Loan, those
mortgage servicing practices of prudent mortgage lending institutions which service mortgage loans
of the same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is
located.

“Additional Purchased Mortgage Loans” shall mean Mortgage Loans or cash provided by
the Sellers to Buyer or its designee pursuant to Section 4 of this Repurchase Agreement.

“Affiliate” shall mean with respect to any Person, any “affiliate” of such Person, as
such term is defined in the Bankruptcy Code.

“Aged Loan” shall mean an Aged 180 Day Mortgage Loan or an Aged 270 Day Mortgage Loan.

“Aged 180 Day Mortgage Loan” shall mean a Mortgage Loan subject to a Transaction
hereunder for at least 180 days but less than 270 days.

“Aged 270 Day Mortgage Loan” shall mean a Mortgage Loan (other than a TPO Mortgage
Loan) subject to a Transaction hereunder for at least 270 days but less than 365 days.

“Appraised Value” shall mean the value set forth in an appraisal made in connection
with the origination of the related Mortgage Loan as the value of the Mortgaged Property.

“Approved Third Party Originator” shall mean an originator of Eligible Mortgage Loans
identified in accordance with Section 3(b)(xi) hereof.

“Assignment and Acceptance” shall have the meaning set forth in Section 18 hereof.

“Asset Value” shall have the meaning set forth in the Pricing Letter.

“Authorized Representative” shall mean, for the purposes of this Repurchase Agreement
only, an agent or Responsible Officer of the Sellers listed on Schedule 4 hereto, as such
Schedule 4 may be amended from time to time .

“Bailee Letter” shall have the meaning assigned to such term in the Custodial
Agreement.

“Bank” shall mean LaSalle Bank, National Association, in its capacity as bank with
respect to the Control Agreement.

“Bankruptcy Code” shall mean the United States Bankruptcy Code of 1978, as amended
from time to time.

“Business Day” shall mean a day other than (i) a Saturday or Sunday, (ii) any day on
which banking institutions are authorized or required by law, executive order or governmental
decree to be closed in the State of New York, the State of Texas or the State of California or
(iii) any day on which the New York Stock Exchange is closed.

“Buyer” shall mean Goldman Sachs Mortgage Company, its successors in interest and
assigns and, with respect to Section 7, its participants.

“Capital Lease Obligations” shall mean, for any Person, all obligations of such Person
to pay rent or other amounts under a lease of (or other agreement conveying the right to use)
Property to the extent such obligations are required to be classified and accounted for as a
capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Repurchase
Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in
accordance with GAAP.

“Cash Equivalents” shall mean (a) securities with maturities of 90 days or less from
the date of acquisition issued or fully guaranteed or insured by the United States Government or
any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of 90
days or less from the date of acquisition and overnight bank deposits of Buyer or of any commercial
bank having capital and surplus in excess of $500,000,000, (c) repurchase obligations of Buyer or
of any commercial bank satisfying the requirements of clause (b) of this definition, having a term
of not more than seven days with respect to securities issued or fully guaranteed or insured by the
United States Government, (d) commercial paper of a domestic issuer rated at least A-1+ or the
equivalent thereof by S&P or P-1 or the equivalent thereof by Moody’s and in either case maturing
within 90 days after the day of acquisition, (e) securities with maturities of 90 days or less from
the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the
United States, by any political subdivision or taxing authority of any such state, commonwealth or
territory or by any foreign government, the securities of which state, commonwealth, territory,
political subdivision, taxing authority or foreign government (as the case may be) are rated at
least A by S&P or A2 by Moody’s, (f) securities with maturities of 90 days or less from the date of
acquisition backed by standby letters of credit issued by Buyer or any commercial bank satisfying
the requirements of clause (b) of this definition or (g) shares of money market mutual or similar
funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of
this definition.

“Change in Control” shall mean:

(a) any transaction or event as a result of which Guarantor ceases to own, directly or
indirectly 100% of the stock of any Seller; or

(b) the sale, transfer, or other disposition of all or substantially all of a Seller’s or
Guarantor’s assets (excluding any such action taken in connection with any securitization
transaction); or

(c) the consummation of a merger or consolidation of a Seller or Guarantor with or into
another entity or any other corporate reorganization (in one transaction or in a series of
transactions), if more than 50% of the combined voting power of the continuing or surviving
entity’s stock outstanding immediately after such merger, consolidation or such other
reorganization is owned by persons who were not stockholders of such Seller or Guarantor
immediately prior to such merger, consolidation or other reorganization; or

(d) any transaction or event as a result of which a “person” or “group” (within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) shall become, or obtain rights (whether by means of warrants, options or otherwise) to
become, the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, of a percentage of the total voting power of all classes of capital stock
of the Guarantor entitled to vote generally in the election of directors of 20% or more.

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

“Collection Account” shall mean the account established by the Bank subject to a
Control Agreement, into which all Income (other than Income related to TPO Mortgage Loans) shall be
deposited in accordance with Section 5 hereof.

“Combined Loan-to-Value Ratio or CLTV” shall mean, with respect to any Second Lien
Mortgage Loan, the sum of the original principal balance of such Mortgage Loan and the outstanding
principal balance of any related first lien as of the date of origination of the Mortgage Loan,
divided by the Appraised Value of the Mortgaged Property as of the origination date.

“Commitment Fee” shall have the meaning set forth in the Pricing Letter.

“Committed Mortgage Loan” shall mean a Mortgage Loan which is the subject of a
Take-out Commitment with a Take-out Investor.

“Confidential Terms” shall have the meaning set forth in Section 30 hereof.

“Control Agreement” shall mean a letter agreement between New Century Mortgage
Corporation, the Buyer, and the Bank substantially in the form of Exhibit B attached
hereto, as the same may be amended from time to time.

“Costs” shall have the meaning set forth in Section 15(a) hereof.

“Custodial Agreement” shall mean that certain Custodial Agreement dated as of the date
hereof, among Sellers, Buyer and Custodian as the same may be amended from time to time.

“Custodian” shall mean Deutsche Bank National Trust Company, or any successor thereto
under the Custodial Agreement.

“Default” shall mean an Event of Default or an event that with notice or lapse of time
or both would become an Event of Default.

“Defaulting Party” shall have the meaning set forth in Section 29 hereof.

“Delinquent 30 Day Mortgage Loan” shall mean any First Lien Mortgage Loan as to which
any Monthly Payment, or part thereof, remains unpaid for at least 30 days but no more than 59 days
from the original Due Date for such Monthly Payment.

“Delinquent 60 Day Mortgage Loan” shall mean any First Lien Mortgage Loan as to which
any Monthly Payment, or part thereof, remains unpaid for at least 60 days but no more than 89 days
from the original Due Date for such Monthly Payment.

“Delinquent 90 Day Mortgage Loan” shall mean any First Lien Mortgage Loan as to which
any Monthly Payment, or part thereof, remains unpaid for at least 90 days but no more than 119 days
from the original Due Date for such Monthly Payment.

“Delinquent Mortgage Loan” shall mean any Delinquent 30 Day Mortgage Loan, Delinquent
60 Day Mortgage Loan or Delinquent 90 Day Mortgage Loan.

“Disbursement Account” shall mean the account established by the Disbursement Agent
subject to the Disbursement Agreement, into which the Purchase Price for the Purchased Mortgage
Loans that are Wet-Ink Mortgage Loans shall be deposited.

“Disbursement Agent” shall mean Deutsche Bank National Trust Company, its respective
successor or assigns.

“Disbursement Agreement” shall mean that certain Disbursement Agreement by and among
the Disbursement Agent, the Buyer and New Century Mortgage Corporation, dated as of February 15,
2006, as the same may be amended from time to time, setting forth the terms pursuant to which the
Disbursement Agent shall disburse funds related to Wet-Ink Mortgage Loans (other than TPO Mortgage
Loans) from the Disbursement Account.

“Dollars” and “$” shall mean lawful money of the United States of America.

“Due Date” shall mean the day of the month on which the Monthly Payment is due on a
Mortgage Loan, exclusive of any days of grace.

“Due Diligence Cap” shall have the meaning set forth in the Pricing Letter.

“Due Diligence Costs” shall have the meaning set forth in Section 17 hereof.

“Due Diligence Review” shall mean the performance by Buyer of any or all of the
reviews permitted under Section 17 hereof with respect to any or all of the Mortgage Loans, as
desired by the Buyer from time to time.

“Effective Date” shall mean the date upon which the conditions precedent set forth in
Section 3(a) shall have been satisfied.

“Electronic Tracking Agreement” shall mean an Electronic Tracking Agreement among
Buyer, Sellers, MERS and MERSCORP, Inc., to the extent applicable, as the same may be amended from
time to time.

“Eligible Mortgage Loan” shall mean a Purchased Mortgage Loan which complies with the
representations and warranties set forth on Schedule 1 to this Repurchase Agreement.

“ERISA” shall, with respect to any Person, mean the Employee Retirement Income
Security Act of 1974, as amended from time to time and any successor thereto, and the regulations
promulgated and rulings issued thereunder.

“ERISA Affiliate” shall, with respect to any Person, mean any Person which is a member
of any group of organizations (i) described in Section 414(b) or (c) of the Code of which such
Person is a member, or (ii) solely for purposes of potential liability under Section 302(c)(11) of
ERISA and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and
Section 412(n) of the Code, described in Section 414(m) or (o) of the Code of which such Person is
a member.

“Escrow Payments” shall mean, with respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents, municipal charges,
mortgage insurance premiums, fire and hazard insurance premiums, condominium charges, and any other
payments required to be escrowed by the Mortgagor with the mortgagee pursuant to the Mortgage or
any other document.

“Event of Default” shall have the meaning specified in Section 13 hereof.

“Event of ERISA Termination” shall, with respect to any Seller or the Guarantor, mean
(i) with respect to any Plan, a reportable event, as defined in Section 4043 of ERISA, as to which
the PBGC has not by regulation waived the reporting of the occurrence of such event, or (ii) the
withdrawal of any Seller or the Guarantor or any ERISA Affiliate thereof from a Plan during a plan
year in which it is a substantial employer, as defined in Section 4001(a)(2) of ERISA, or (iii) the
failure by any Seller or the Guarantor or any ERISA Affiliate thereof to meet the minimum funding
standard of Section 412 of the Code or Section 302 of ERISA with respect to any Plan, including,
without limitation, the failure to make on or before its due date a required installment under
Section 412(m) of the Code or Section 302(e) of ERISA, or (iv) the distribution under Section 4041
of ERISA of a notice of intent to terminate any Plan or any action taken by any Seller or the
Guarantor or any ERISA Affiliate thereof to terminate any Plan, or (v) the adoption of an amendment
to any Plan that, pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, would result
in the loss of tax-exempt status of the trust of which such Plan is a part if any Seller or the
Guarantor or any ERISA Affiliate thereof fails to timely provide security to the Plan in accordance
with the provisions of said Sections, or (vi) the institution by the PBGC of proceedings under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Plan, or (vii) the receipt by any Seller or the Guarantor or any ERISA Affiliate thereof of a
notice from a Multiemployer Plan that action of the type described in the previous clause (vi) has
been taken by the PBGC with respect to such Multiemployer Plan, or (viii) any event or circumstance
exists which may reasonably be expected to constitute grounds for any Seller or the Guarantor or
any ERISA Affiliate thereof to incur liability under Title IV of ERISA or under Section 412(c)(11)
of the Code with respect to any Plan.

“Excluded Taxes” shall have the meaning specified in Section 7(e) hereof.

“Expenses” shall mean all present and future reasonable (under the circumstances)
expenses incurred by or on behalf of the Buyer in connection with this Repurchase Agreement or any
of the other Facility Documents and any amendment, supplement or other modification or waiver
related hereto or thereto, whether incurred heretofore or hereafter, which expenses shall include
the cost of title, lien, judgment and other record searches; attorneys’ fees; and costs of
preparing and recording any UCC financing statements or other filings necessary to perfect the
security interest created hereby.

“Facility Documents” shall mean this Repurchase Agreement, the Disbursement Agreement,
TPO Disbursement Account, the Settlement Account Control Agreement, the Custodial Agreement, the
Pricing Letter, the Guaranty, the Electronic Tracking Agreement, if applicable, a Servicer Notice,
if any, the TPO Account Control Agreement and the Control Agreement.

“Fannie Mae” shall mean Fannie Mae, or any successor thereto.

“FDIA” shall have the meaning set forth in Section 31 hereof.

“FDICIA” shall have the meaning set forth in Section 31 hereof.

“Fidelity Insurance” shall mean insurance coverage with respect to employee errors,
omissions, dishonesty, forgery, theft, disappearance and destruction, robbery and safe burglary,
property (other than money and securities) and computer fraud in an aggregate amount acceptable to
Sellers’ regulators and subject to commercially reasonable sublimits and deductibles.

“Financial Statements” shall mean the consolidated financial statements of the
Guarantor prepared in accordance with GAAP for the year or other period then ended (subject to
year-end adjustments in the case of interim period statements). Such financial statements will be
audited, in the case of annual statements, by KPMG LLP or such other independent certified public
accountants approved by the Buyer (which approval shall not be unreasonably withheld).

“First Lien Mortgage Loan” shall mean a Mortgage Loan secured by a first lien on the
related Mortgaged Property.

“First Payment Default” shall mean, with respect to a Mortgage Loan, the failure of
the Mortgagor to make the first Monthly Payment due under the Mortgage Loan on or before its
scheduled Due Date after expiration of any applicable grace periods.

“Fitch” shall mean Fitch Ratings, Inc., or any successor thereto.

“Forty-Year Mortgage Loan” shall mean a fully amortizing Mortgage Loan which has an
original term to maturity of not more than forty years from the origination date.

“Freddie Mac” shall mean Freddie Mac, or any successor thereto.

“GAAP” shall mean generally accepted accounting principles in the United States of
America, applied on a consistent basis and applied to both classification of items and amounts, and
shall include, without limitation, the official interpretations thereof by the Financial Accounting
Standards Board, its predecessors and successors.

“Governmental Authority” shall mean any nation or government, any state, county,
municipality or other political subdivision thereof or any governmental body, agency, authority,
department or commission (including, without limitation, any taxing authority) or any
instrumentality or officer of any of the foregoing (including, without limitation, any court or
tribunal) exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government and any corporation, partnership or other entity directly or indirectly
owned by or controlled by the foregoing.

“Guarantee” shall mean, as to any Person, any obligation of such Person directly or
indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the
payment of any Indebtedness of any other Person or otherwise protecting the holder of such
Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities or services, or to take-or-pay or otherwise);
provided that the term “Guarantee” shall not include (i) endorsements for collection or
deposit in the ordinary course of business or (ii) servicing advance obligations. The amount of
any Guarantee of a Person shall be deemed to be an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Guarantee is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof as determined by such
Person in good faith. The terms “Guarantee” and “Guaranteed” used as verbs shall
have correlative meanings.

“Guarantor” shall mean New Century Financial Corporation, in its capacity as guarantor
under the Guaranty.

“Guaranty” shall mean the guaranty of the Guarantor dated as of the date hereof as the
same may be amended from time to time, pursuant to which the Guarantor fully and unconditionally
guarantees the obligations of the Sellers hereunder.

“High Cost Mortgage Loan” shall mean a Mortgage Loan classified as (a) a “high cost”
loan under the Home Ownership and Equity Protection Act of 1994 or (b) a “high cost,” “threshold,”
“covered,” or “predatory” loan under any other applicable state, federal or local law (or a
similarly classified loan using different terminology under a law, regulation or ordinance imposing
heightened regulatory scrutiny or additional legal liability for residential mortgage loans having
high interest rates, points and/or fees).

“High LTV Mortgage Loan” shall mean a Mortgage Loan with a CLTV greater than 100%, but
no greater than 107%, which is the subject of a Take-out Commitment with a Take-out Investor.

“HUD” shall mean the Department of Housing and Urban Development.

“Income” shall mean, with respect to any Mortgage Loan at any time, any principal
thereof then received and all interest, dividends or other distributions payable thereon.

“Indebtedness” shall mean, with respect to any Person, (a) obligations created, issued
or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt
securities or the sale of Property to another Person subject to an understanding or agreement,
contingent or otherwise, to repurchase such Property from such Person); (b) obligations of such
Person to pay the deferred purchase or acquisition price of Property or services, other than trade
accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the
ordinary course of business, so long as such trade accounts payable are payable within 90 days
after the date the respective goods are delivered or the respective services are rendered; (c)
Indebtedness of others secured by a Lien on the Property of such Person, whether or not the
respective Indebtedness so secured has been assumed by such Person; (d) obligations (contingent or
otherwise) of such Person in respect of letters of credit or similar instruments issued or accepted
by banks and other financial institutions for the account of such Person; (e) Capital Lease
Obligations of such Person; (f) obligations of such Person under repurchase agreements,
sale/buy-back agreements or like arrangements; (g) Indebtedness of others Guaranteed by such
Person; (h) all obligations of such Person incurred in connection with the acquisition or carrying
of fixed assets by such Person; and (i) Indebtedness of general partnerships of which such Person
is a general partner.

“Indemnified Party” shall have the meaning set forth in Section 15(a) hereof.

“Insolvency Event” shall mean, for any Person:

(a) that such Person or any Material Subsidiary shall discontinue or abandon operation of its
business; or

(b) that such Person or any Material Subsidiary shall fail generally to, or admit in writing
its inability to, pay its debts as they become due; or

(c) a proceeding shall have been instituted in a court having jurisdiction in the premises
seeking a decree or order for relief in respect of such Person or any Material Subsidiary in an
involuntary case (which has not been dismissed within thirty (30) days after such proceeding is
instituted) under any applicable bankruptcy, insolvency, liquidation, reorganization or other
similar law now or hereafter in effect, or for the appointment of a receiver, liquidator, assignee,
trustee, custodian, sequestrator, conservator or other similar official of such Person or any
Affiliate, or for any substantial part of its property, or for the winding-up or liquidation of its
affairs; or

(d) the commencement by such Person or any Material Subsidiary of a voluntary case under any
applicable bankruptcy, insolvency or other similar Law now or hereafter in effect, or such Person’s
or any Material Subsidiary’s consent to the entry of an order for relief in an involuntary case
under any such Law, or consent to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator, conservator or other similar official of
such Person, or for any substantial part of its property, or any general assignment for the benefit
of creditors; or

(e) that such Person or any Material Subsidiary shall become insolvent; or

(f) if such Person or any Material Subsidiary is a corporation, such Person or any Affiliate,
or any of their Subsidiaries, shall take any corporate action in furtherance of, or the action of
which would result in any of the actions set forth in the preceding clause (a), (b), (c), (d) or
(e).

“Interest Only Adjustment Date” shall mean, with respect to each Interest Only Loan,
the date, specified in the related Mortgage Note on which the Monthly Payment will be adjusted to
include principal as well as interest.

“Interest Only Loan” shall mean a Mortgage Loan which only requires payments of
interest for a period of time specified in the related Mortgage Note.

“Interest Rate Adjustment Date” shall mean the date on which an adjustment to the
Mortgage Interest Rate with respect to each Mortgage Loan becomes effective.

“Interest Rate Protection Agreement” shall mean, with respect to any or all of the
Mortgage Loans, any short sale of a US Treasury Security, or futures contract, or mortgage related
security, or Eurodollar futures contract, or options related contract, or interest rate swap, cap
or collar agreement or Take-out Commitment, or similar arrangement providing for protection against
fluctuations in interest rates or the exchange of nominal interest obligations, either generally or
under specific contingencies, entered into by a Seller.

“Late Payment Fee” shall mean the excess of the Price Differential paid as a result of
its calculation at the Post-Default Rate over the Price Differential as would have been calculated
at the Pricing Rate.

“LIBOR Rate” shall mean, with respect to each day a Transaction is outstanding, the
rate per annum equal to the rate appearing at page 5 of the Telerate Screen as one-month LIBOR on
such date (and if such date is not a Business Day, the LIBOR Rate in effect on the Business Day
immediately preceding such date), and if such rate shall not be so quoted, the rate per annum at
which the Buyer or its Affiliate is offered dollar deposits at or about 10:00 a.m., New York City
time, on such date, by prime banks in the interbank eurodollar market where the eurodollar and
foreign currency exchange operations in respect of its Transactions are then being conducted for
delivery on such day for a period of one month and in an amount comparable to the amount of the
Transactions outstanding on such day.

“Lien” shall mean any lien, claim, charge, restriction, pledge, security interest,
mortgage, deed of trust or other encumbrance.

“Liquidity” shall mean for each relevant Person, the aggregate of all cash, Cash
Equivalents, and Overcollateralization, less the amount of Restricted Cash owned by such Person.

“Loan-to-Value Ratio” or “LTV” shall mean with respect to any Mortgage Loan,
the ratio of the original outstanding principal amount of the Mortgage Loan to the lesser of (a)
the Appraised Value of the Mortgaged Property at origination or (b) if the Mortgaged Property was
purchased within 12 months of the origination of the Mortgage Loan, the purchase price of the
Mortgaged Property.

“Lost Note Affidavit” shall mean a lost note affidavit, substantially in the form of
Exhibit 9 to the Custodial Agreement, that has been executed in connection with a Mortgage
Loan for which the original note appears to have been lost, mislaid or misfiled.

“Margin Call” shall have the meaning specified in Section 4.

“Margin Deficit” shall have the meaning specified in Section 4.

“Market Value” shall mean, as of any date with respect to any Purchased Mortgage Loan,
the price at which such Mortgage Loan could readily be sold as determined by the Buyer in its sole
good faith discretion.

“Material Adverse Effect” shall mean a material adverse effect on (a) the Property,
business, operations or financial condition or prospects of (i) Guarantor, Sellers and their
Material Subsidiaries taken as a whole or (ii) any Seller or Guarantor, (b) the ability of any
Seller or the Guarantor to perform its obligations under any of the Facility Documents to which it
is a party, (c) the validity or enforceability of any of the Facility Documents, (d) the rights and
remedies of the Buyer or any Affiliate under any of the Facility Documents, (e) the timely payment
of any amounts payable under the Facility Documents, or (f) the Asset Value of the Purchased
Mortgage Loans taken as a whole.

“Material Subsidiary” shall mean a “significant subsidiary” as defined in Rule 1-02 of
Regulation S-X (17 CFR §210.1-01, et seq ), of any Seller or Home123 Corporation or any of its
Subsidiaries.

“Maximum Committed Purchase Price” shall have the meaning set forth in the Pricing
Letter.

“Maximum Committed TPO Purchase Price” shall have the meaning set forth in the Pricing
Letter.

“Maximum Purchase Price” shall have the meaning set forth in the Pricing Letter.

“Maximum TPO Purchase Price” shall have the meaning set forth in the Pricing Letter.

“MERS” shall mean Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor thereto.

“MERS System” shall mean the system of recording transfers of mortgages electronically
maintained by MERS.

“Monthly Payment” shall mean the scheduled monthly payment of principal and interest
on a Mortgage Loan.

“Moody’s” shall mean Moody’s Investor’s Service, Inc. or any successors thereto.

“Mortgage” shall mean each mortgage, assignment of rents, security agreement and
fixture filing, or deed of trust, assignment of rents, security agreement and fixture filing, deed
to secure debt, assignment of rents, security agreement and fixture filing, or similar instrument
creating and evidencing a first or second lien on real property and other property and rights
incidental thereto.

“Mortgage File” shall mean, with respect to a Mortgage Loan, the documents and
instruments relating to such Mortgage Loan and set forth in Exhibit D hereto.

“Mortgage Interest Rate” shall mean the rate of interest borne on a Mortgage Loan from
time to time in accordance with the terms of the related Mortgage Note.

“Mortgage Loan” shall mean any first or second lien, one-to-four-family residential
mortgage loan evidenced by a Mortgage Note and secured by a Mortgage, which Mortgage Loan is
subject to a Transaction hereunder, which in no event shall include any mortgage loan which (a) is
subject to Section 226.32 of Regulation Z or any similar state law (relating to high interest rate
credit/lending transactions), (b) includes any single premium credit, life or accident and health
insurance or disability insurance, or (c) is a High Cost Mortgage Loan.

“Mortgage Loan Schedule” shall mean with respect to any Transaction as of any date, a
mortgage loan schedule in the form of a computer tape or other electronic medium generated by the
Sellers and delivered to Buyer and the Custodian, which provides information (including, without
limitation, the information set forth on Exhibit C attached hereto) relating to the
Purchased Mortgage Loans in a format acceptable to the Buyer.

“Mortgage Loan Schedule and Exception Report” shall have the meaning set forth in the
Custodial Agreement.

“Mortgage Note” shall mean the promissory note or other evidence of the indebtedness
of a Mortgagor secured by a Mortgage.

“Mortgaged Property” shall mean the real property securing repayment of the debt
evidenced by a Mortgage Note.

“Mortgagor” shall mean the obligor or obligors on a Mortgage Note, including any
Person who has assumed or guaranteed the obligations of the obligor thereunder.

“Multiemployer Plan” shall mean, with respect to any Person, a “multiemployer plan” as
defined in Section 4001(a)(3) of ERISA which is or was at any time during the current year or the
immediately preceding five years contributed to (or required to be contributed to )by such Person
or any ERISA Affiliate thereof on behalf of its employees and which is covered by Title IV of
ERISA.

“Net Income” shall mean, for any Person for any period, the net income of such Person
for such period as determined in accordance with GAAP.

“Net Worth” shall mean, with respect to any Person, an amount equal to, on a
consolidated basis, such Person’s stockholder equity (determined in accordance with GAAP).

“Non-Excluded Taxes” shall have the meaning set forth in Section 7(a) hereof.

“Non-Exempt Buyer” shall have the meaning set forth in Section 7(e) hereof.

“Nondefaulting Party” shall have the meaning set forth in Section 29 hereof.

“Non-Recourse Debt” shall mean any Indebtedness incurred by a Seller or the Guarantor,
provided that (i) such Indebtedness is non-recourse to such Seller, Guarantor or any shareholder or
equity owner of such Seller or Guarantor, (ii) such Indebtedness or classes or tranches thereof are
publicly issued and/or privately placed Indebtedness of such Seller or Guarantor and (iii) such
Indebtedness or classes or tranches thereof are rated by at least one of the Rating Agencies.

“Non-Utilization Fee” shall have the meaning set forth in the Pricing Letter.

“Obligations” shall mean any amounts due and payable by the Sellers or Guarantor to
Buyer or an Affiliate of Buyer in connection with a Transaction hereunder, together with interest
thereon (including interest which would be payable as post-petition interest in connection with any
bankruptcy or similar proceeding) and all other fees or expenses which are payable hereunder or
under any of the Facility Documents.

“OFAC” shall have the meaning set forth in Section 11(y) hereof.

“Option ARM Mortgage Loan” shall mean an adjustable rate mortgage with flexible
payment options (a) which the Mortgagor may pay an initial low rate for the initial Monthly
Payments and a substantially higher rate in the later years of such Mortgage, (b) is underwritten
in accordance with the Underwriting Guidelines and (c) which is the subject of a loan level
Take-out Commitment with a Take-out Investor.

“Other Taxes” shall have the meaning set forth in Section 7(b) hereof.

“Overcollateralization” shall mean, as of any date of determination for any Person,
the excess of (i) the Market Value of assets pledged by that Person to a lender under a committed
warehouse or repurchase facility (after taking into account required haircuts) over (ii) the
aggregate amount of the advances or loans made by the applicable lender to such Person under any
such committed warehouse or repurchase facility.

“Payment Date” shall mean the first Business Day of each month, or if such date is not
a Business Day, the Business Day immediately preceding the last day of the month.

“PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to
any or all of its functions under ERISA.

“Periodic Advance Repurchase Payment” shall have the meaning specified in Section
5(a).

“Person” shall mean any individual, corporation, company, voluntary association,
partnership, joint venture, limited liability company, trust, unincorporated association or
government (or any agency, instrumentality or political subdivision thereof).

“Plan” shall mean, with respect to any Seller, any employee benefit or similar plan
that is or was at any time during the current year or immediately preceding five years established,
maintained or contributed to by any Seller or any ERISA Affiliate thereof and that is covered by
Title IV of ERISA, other than a Multiemployer Plan.

“PMI Policy” shall mean a policy of primary mortgage guaranty insurance issued by a
Qualified Insurer, as required by this Repurchase Agreement with respect to certain Mortgage Loans.

“Post-Default Rate” shall have the meaning set forth in the Pricing Letter.

“Price Differential” shall mean, with respect to any Transaction hereunder as of any
date, the aggregate amount obtained by daily application of the Pricing Rate (or, during the
continuation of an Event of Default, by daily application of the Post-Default Rate) for such
Transaction to the Purchase Price for such Transaction on a 360 day per year basis for the actual
number of days during the period commencing on (and including) the Purchase Date for such
Transaction and ending on (but excluding) the Repurchase Date (reduced by any amount of such Price
Differential previously paid by Sellers to Buyer with respect to such Transaction).

“Pricing Letter” shall mean that certain letter agreement among the Buyer, the
Guarantor and the Sellers, dated as of the date hereof, as the same may be amended from time to
time.

“Pricing Rate” shall mean a rate per annum equal to the sum of (a) the LIBOR Rate plus
(b) the Pricing Spread.

“Pricing Spread” shall have the meaning set forth in the Pricing Letter.

“Prohibited Person” shall have the meaning set forth in Section 11(y) hereof.

“Property” shall mean any right or interest in or to property of any kind whatsoever,
whether real, personal or mixed and whether tangible or intangible.

“Purchase Date” shall mean the date on which Purchased Mortgage Loans are transferred
by the applicable Seller to the Buyer or its designee.

“Purchase Price” shall mean,

(a) on the Purchase Date, the price at which each Purchased Mortgage Loan is transferred by
the applicable Seller to Buyer which shall equal the lesser of (i) the applicable Purchase Price
Percentage of the Market Value of such Mortgage Loan on the Purchase Date and (ii) the outstanding
principal balance of the Mortgage Loan and

(b) thereafter, except where Buyer and Sellers agree otherwise, such Purchase Price decreased
by the amount of any cash, Income and Periodic Advance Repurchase Payments actually received by
Buyer pursuant to Sections 5 or applied to reduce Sellers’ obligations under Section 4(b) hereof.

“Purchase Price Percentage” shall have the meaning set forth in the Pricing Letter.

“Purchased Mortgage Loan Report” shall mean a report, delivered with each Transaction
Request, on Friday of each week, or upon the request of the Buyer, including a Mortgage Loan
Schedule in the form of Exhibit C hereto, setting forth information with respect to the
Purchased Mortgage Loans (and Mortgage Loans proposed to be the subject of a Transaction on the
related Purchase Date, if applicable).

“Purchased Mortgage Loans” shall mean the Mortgage Loans sold by the Sellers to Buyer
in a Transaction, and any Additional Purchased Mortgage Loans as evidenced by a Mortgage Loans
Schedule and Exception Report delivered by the Sellers to the Buyer and/or a Trust Receipt.

“Qualified Insurer” shall mean a mortgage guaranty insurance company duly authorized
and licensed where required by law to transact mortgage guaranty insurance business and acceptable
under the Underwriting Guidelines.

“Rating Agency” shall mean any of S&P, Moody’s or Fitch.

“Records” shall mean all instruments, agreements and other books, records, and reports
and data generated by other media for the storage of information maintained by Sellers or any other
person or entity with respect to a Purchased Mortgage Loan. Records shall include the Mortgage
Notes, any Mortgages, the Mortgage Files, the credit files related to the Purchased Mortgage Loan
and any other instruments necessary to document or service a Mortgage Loan.

“Register” shall have the meaning set forth in Section 19 hereof.

“Regulations T, U and X” shall mean Regulations T, U and X of the Board of Governors
of the Federal Reserve System (or any successor), as the same may be modified and supplemented and
in effect from time to time.

“REO Property” shall mean a Mortgaged Property acquired through foreclosure or by deed
in lieu of foreclosure.

“Reportable Event” shall mean any of the events set forth in Section 4043(c) of ERISA,
other than those events as to which the thirty day notice period is waived under subsections .21,
        .22, .24, .26, .27 or .28 of PBGC Reg. § 4043.

“Repurchase Agreement” shall mean this Master Repurchase Agreement between Buyer,
Guarantor and the Sellers, dated as of the date hereof as the same may be further amended,
supplemented or otherwise modified in accordance with the terms hereof.

“Repurchase Assets” shall have the meaning provided in Section 8 hereof.

“Repurchase Date” shall mean the date on which the Sellers are to repurchase the
Purchased Mortgage Loans subject to a Transaction from Buyer as specified in the related
Transaction Request, or if not so specified on a date requested pursuant to Section 3(d) or on the
Termination Date, including any date determined by application of the provisions of Sections 3 or
14, or the date identified to Buyer by the Sellers as the date that the related Mortgage Loan is to
be sold pursuant to a Take-out Commitment.

“Repurchase Price” shall mean the price at which Purchased Mortgage Loans are to be
transferred from Buyer or its designee to the Sellers upon termination of a Transaction, which will
be determined in each case (including Transactions terminable upon demand) as the sum of the
Purchase Price and the Price Differential as of the date of such determination.

“Requirement of Law” shall mean as to any Person, the certificate of incorporation and
by-laws or other organizational or governing documents of such Person, and any law, treaty, rule,
regulation, procedure or determination of an arbitrator or a court or other Governmental Authority,
in each case applicable to or binding upon such Person or any of its property or to which such
Person or any of its property is subject.

“Responsible Officer” shall mean an officer of a Seller listed on Schedule 5
hereto, as such Schedule 5 may be amended from time to time.

“Restricted Cash” shall mean all cash and Cash Equivalents that are subject to a Lien
in favor of any Person other than the Custodian on behalf of the Buyer, that are required to be
maintained by the Sellers pursuant to a contractual obligation or as a result of the operation of
law.

“S&P” shall mean Standard & Poor’s Ratings Services, or any successor thereto.

“SEC” shall have the meaning set forth in Section 32 hereof.

“Second Lien Mortgage Loan” shall mean an Mortgage Loan secured by a second lien on
the related Mortgaged Property.

“Section 4402” shall have the meaning set forth in Section 29 hereof.

“Section 7 Certificate” shall have the meaning set forth in Section 7(e) hereof.

“Seller” shall mean each of New Century Warehouse Corporation and New Century Mortgage
Corporation, or any successor in interest thereto.

“Servicer” shall mean any Seller or any successor or permitted assigns.

“Servicer Notice” shall mean the notice acknowledged by the Servicer substantially in
the form of Exhibit G hereto.

“Servicing Agreement” shall mean any servicing agreement entered into among a Seller
and a Servicer, as the same may be amended from time to time.

“Settlement Account Control Agreement” shall mean the Settlement Account Control
Agreement entered into among the Buyer, the Sellers and the Settlement Bank, dated as of the date
hereof as the same may be further amended, supplemented or otherwise modified in accordance with
its terms.

“Settlement Agent” shall mean, with respect to any Transaction the subject of which is
a Wet-Ink Mortgage Loan, the entity approved by Buyer, in its sole good-faith discretion, which may
be a title company, escrow company or attorney in accordance with local law and practice in the
jurisdiction where the related Wet-Ink Mortgage Loan is being originated. A Settlement Agent is
deemed approved unless Buyer notifies the Sellers otherwise electronically or in writing.

“Settlement Bank” shall mean LaSalle Bank, National Association, in its capacity as
bank with respect to the Settlement Account Control Agreement.

“Single-Employer Plan” shall mean a single-employer plan as defined in Section
4001(a)(15) of ERISA which is subject to the provisions of Title IV of ERISA.

“SIPA” shall have the meaning set forth in Section 32 hereof.

“Subsidiary” shall mean, with respect to any Person, any corporation, partnership or
other entity of which at least a majority of the securities or other ownership interests having by
the terms thereof ordinary voting power to elect a majority of the board of directors or other
persons performing similar functions of such corporation, partnership or other entity (irrespective
of whether or not at the time securities or other ownership interests of any other class or classes
of such corporation, partnership or other entity shall have or might have voting power by reason of
the happening of any contingency) is at the time directly or indirectly owned or controlled by such
Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of
such Person.

“Sub-Prime Mortgage Loan” shall mean a First Lien or Second Lien Mortgage Loan which
was originated in accordance with the Underwriting Guidelines.

“Take-out Commitment” shall mean a commitment of a Seller or an Approved Third Party
Originator to sell one or more Mortgage Loans to a Take-out Investor, and the corresponding
Take-out Investor’s commitment back to Seller or the related Approved Third Party Originator to
effectuate the foregoing.

“Take-out Investor” shall mean any institution which has made a Take-out Commitment
and has been approved by Buyer; provided that a Take-out Investor shall be deemed approved unless
Buyer informs Sellers to the contrary.

“Tangible Net Worth” shall mean, with respect to any Person, as of any date of
determination, the consolidated Net Worth of such Person and its subsidiaries, less the
consolidated net book value of all assets of such Person and its subsidiaries (to the extent
reflected as an asset on the balance sheet of such Person or any subsidiary of such Person at such
date) which will be treated as intangibles under GAAP, including, without limitation, such items as
deferred financing expenses, net leasehold improvements, goodwill, trademarks, trade names, service
marks, copyrights, patents, licenses and unamortized debt discount and expense; provided, that,
residual securities owned by such Person shall not be treated as intangibles for purposes of this
definition.

“Taxes” shall have the meaning set forth in Section 7(a) hereof.

“Termination Date” shall mean the date which is 364 days from the date hereof which
shall be February 14, 2007.

“Termination Event” shall have the meaning set forth in Section 13.02 hereof.

“Test Period” shall mean any period of three (3) consecutive months.

“Total Indebtedness” shall mean, at any time, the aggregate Indebtedness of any Person
and its subsidiaries.

“TPO Account Control Agreement” shall mean a letter agreement among Warehouse
Corporation, the Bank and the Buyer, dated as of the date hereof, substantially in the form of
Exhibit B attached hereto, as the same may be amended from time to time.

“TPO Collection Account” shall mean the account established by the Bank subject to a
TPO Account Control Agreement, into which all Income related to TPO Mortgage Loans shall be
deposited in accordance with Section 5 hereof.

“TPO Disbursement Account” shall mean the account established by the Disbursement
Agent subject to the TPO Disbursement Agreement, into which the Purchase Price for the Purchased
Mortgage Loans that are TPO Mortgage Loans shall be deposited by the Buyer.

“TPO Disbursement Agreement” shall mean that certain TPO Disbursement Agreement by and
among the Disbursement Agent, the Buyer and Warehouse Corporation, dated as of February 15, 2006,
as the same may be amended from time to time, setting forth the terms pursuant to which the
Disbursement Agent shall disburse funds related to Wet-Ink Mortgage Loans that are TPO Mortgage
Loans from the Disbursement Account.

“TPO Mortgage Loan” shall mean a Mortgage Loan originated by an Approved Third Party
Originator and conveyed to Warehouse Corporation pursuant to an Underlying Transaction.

“Transaction” shall have the meaning specified in Section 1.

“Transaction Request” shall mean a request from the applicable Seller to Buyer to
enter into a Transaction.

“Trust Receipt” shall have the meaning set forth in the Custodial Agreement.

“Underlying Obligation” shall mean the obligations of any Underlying Obligor with
respect to an Underlying Transaction.

“Underlying Obligor” shall mean an Approved Third Party Originator which is a party to
an Underlying Transaction with Warehouse Corporation.

“Underlying Transaction” shall mean the purchase of a TPO Mortgage Loan by Warehouse
Corporation, the extension of funds or other lending arrangements by Warehouse Corporation to the
Underlying Obligor, subject to the repurchase obligation of an Underlying Obligor to Warehouse
Corporation secured by the TPO Mortgage Loan owned by the Underlying Obligor with respect to which
the Custodian has been instructed to hold the related Mortgage Loan for the Buyer pursuant to the
Custodial Agreement. The term “Underlying Transaction” includes, without limitation, the
Underlying Obligation, the Underlying Transaction Documents and all right, title and interest of
Warehouse Corporation as buyer or secured party in and to the Mortgage Notes and Mortgages and all
other collateral securing such Underlying Obligation and all guarantees of such Underlying
Transaction.

“Underlying Transaction Documents” shall mean with respect to any Underlying
Transaction, any repurchase agreement between Warehouse Corporation and the Underlying Obligor, any
document or agreement evidencing any Underlying Obligation, including without limitation any
repurchase agreement between Warehouse Corporation and the Underlying Obligor, all agreements
pursuant to which the Underlying Obligor pledges or sells any of the Purchased Mortgage Loans and
any other collateral securing such Underlying Transaction to Warehouse Corporation, all guarantees,
copies of acknowledgment copies of all Uniform Commercial Code financing statements and assignments
thereof filed in connection with the Underlying Transaction or in connection with the pledge
thereof and the rehypothecation of the related Purchased Mortgage Loans to the Buyer hereunder and
all other documents related to such Underlying Transaction (including the related Mortgage Loans
and any other collateral for such Underlying Transaction).

“Underwriting Guidelines” shall mean the underwriting guidelines of the Sellers,
attached hereto as Exhibit E as the same may be updated from time to time in accordance
with the terms hereof.

“Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect from
time to time in the State of New York; provided that if by reason of mandatory provisions of law,
the perfection or the effect of perfection or non perfection of the security interest in any
Repurchase Assets or the continuation, renewal or enforcement thereof is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than New York, “Uniform Commercial Code” shall
mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such perfection or effect of perfection or non perfection.

“Wet-Ink Mortgage Loan” shall mean a Mortgage Loan which a Seller is selling to Buyer
simultaneously with the origination thereof by such Seller or the Approved Third Party Originator
and for which the Mortgage Loan Documents have not been delivered to the Custodian.

“Wet-Ink Trust Receipt” shall mean a trust receipt issued by Custodian evidencing
Purchased Mortgage Loans which are Wet-Ink Mortgage Loans, substantially in the form attached to
the Custodial Agreement.

“Wiring Schedule” shall mean, for each Wet-Ink Mortgage Loan, a schedule setting forth
the loan identification number, the loan amount to be funded by wire transfer and wiring directions
for such Wet-Ink Mortgage Loan.

	 	 	SECTION 3. INITIATION; TERMINATION

(a) Conditions Precedent to Initial Transaction. Buyer’s obligation to enter into the
initial Transaction hereunder is subject to the satisfaction, immediately prior to or concurrently
with the making of such Transaction, of the condition precedent that Buyer shall have received from
the Sellers any fees and expenses payable hereunder, and all of the following documents, each of
which shall be satisfactory to Buyer and its counsel in form and substance:

(i) The following Facility Documents delivered to the Buyer:

(A) Repurchase Agreement. This Repurchase Agreement, duly executed by
the parties thereto;

(B) Custodial Agreement. The Custodial Agreement, duly executed by the
parties thereto;

(C) Control Agreement. The Control Agreement, duly executed by the
parties thereto in form and substance acceptable to the Buyer;

(D) Disbursement Agreement. The Disbursement Agreement, duly executed
by the parties thereto in form and substance acceptable to the Buyer;

(E) Settlement Account Control Agreement. The Settlement Account
Control Agreement, executed and delivered by a duly authorized officer of each of
the Buyer, Sellers and the Settlement Bank.

(F) Electronic Tracking Agreement. To the extent Sellers are selling
Mortgage Loans which are registered on the MERS® System, an Electronic Tracking
Agreement entered into, duly executed and delivered by the parties thereto, in full
force and effect, free of any modification, breach or waiver; and

(G) Pricing Letter. The Pricing Letter, duly executed by the parties
thereto in form and substance acceptable to the Buyer.

(H) Guaranty. The Guaranty, duly executed by the parties thereto.

(I) TPO Account Control Agreement. A TPO Account Control Agreement,
duly executed by the parties thereto in form and substance acceptable to the Buyer.

(J) TPO Disbursement Agreement. A TPO Disbursement Agreement, duly
executed by the parties thereto in form and substance acceptable to the Buyer.

(ii) Opinions of Counsel.

(A) An opinion or opinions of outside counsel and in-house counsel to the
Sellers, substantially in the form of Exhibit A.

(iii) Sellers’ Organizational Documents. A certificate of corporate existence
of each Seller delivered to Buyer prior to the Effective Date (or if unavailable, as soon as
available thereafter) and certified copies of the charter and by-laws (or equivalent
documents) of each Seller and of all corporate or other authority for each Seller with
respect to the execution, delivery and performance of the Facility Documents and each other
document to be delivered by the Sellers from time to time in connection herewith.

(iv) Security Interest. Evidence that all other actions necessary or, in the
opinion of Buyer, desirable to perfect and protect Buyer’s interest in the Purchased
Mortgage Loans and other Repurchase Assets have been taken, including, without limitation,
UCC searches and duly authorized and filed Uniform Commercial Code financing statements on
Form UCC-1.

(v) Underwriting Guidelines. A copy of the Underwriting Guidelines.

(vi) Insurance. Evidence that Sellers have added Buyer as an additional loss
payee under the Sellers’ Fidelity Insurance (which such Fidelity Insurance shall not include
the Sellers’ mortgage bankers professional liability insurance).

(vii) Other Documents. Such other documents as Buyer may reasonably request,
in form and substance reasonably acceptable to Buyer.

(b) Conditions Precedent to all Transactions. Upon satisfaction of the conditions set
forth in this Section 3(b), the Buyer shall enter into a Transaction with the applicable Seller.
Buyer’s obligation to enter into each Transaction (including the initial Transaction) is subject to
the satisfaction of the following further conditions precedent, both immediately prior to entering
into such Transaction and also after giving effect thereto to the intended use thereof:

(i) Due Diligence Review. Without limiting the generality of Section 17
hereof, Buyer shall have completed, to its satisfaction, its due diligence review of the
related Mortgage Loans and Sellers, Guarantor and the Servicer.

(ii) No Default. No Termination Event, Default or Event of Default shall have
occurred and be continuing under the Facility Documents.

(iii) Representations and Warranties. Both immediately prior to the
Transaction and also after giving effect thereto and to the intended use thereof, the
representations and warranties made by each Seller in Section 11 hereof shall be true,
correct and complete on and as of such Purchase Date in all material respects with the same
force and effect as if made on and as of such date (or, if any such representation or
warranty is expressly stated to have been made as of a specific date, as of such specific
date).

(iv) Maximum Purchase Price. After giving effect to the requested Transaction,
the aggregate outstanding Purchase Price for all Purchased Mortgage Loans subject to then
outstanding Transactions under this Repurchase Agreement shall not exceed the Maximum
Purchase Price.

(v) No Margin Deficit. After giving effect to the requested Transaction, the
Asset Value of all Purchased Mortgage Loans exceeds the aggregate Repurchase Price for such
Transactions.

(vi) Transaction Request. With respect to Transactions the subject of which
are Mortgage Loans other than Wet-Ink Mortgage Loans, on or prior to 2:00 p.m. (New York
Time) on the related Purchase Date, the applicable Seller shall have delivered to the Buyer
(a) a Transaction Request, and (b) a Mortgage Loan Schedule. With respect to Transactions
the subject of which are Wet-Ink Mortgage Loans, the applicable Seller shall deliver an
estimated Purchase Price of the Wet-Ink Mortgage Loans to be purchased by the Buyer (the
“Estimated Purchase Price”) on or prior to 5:00 p.m. (New York Time) on the day
prior to the related Purchase Date, and such Seller shall deliver to the Buyer on the
Purchase Date, on or prior to 3:00 p.m. (New York Time) (a) a Transaction Request or
Transaction Requests, as the case may be, and (b) an Asset Schedule for each such
Transaction Request detailing the actual applicable Purchase Price of Wet-Ink Mortgage Loans
to be purchased by the Buyer on such Purchase Date. The Buyer and the Sellers acknowledge
that there may be more than one Transaction Request on each Purchase Date.

(vii) Delivery of Mortgage File. With respect to Transactions the subject of
which are Mortgage Loans other than Wet-Ink Mortgage Loans, the Sellers shall have delivered
to the Custodian the Mortgage File with respect to each Purchased Mortgage Loan and the
Custodian shall have issued a Trust Receipt with respect to each such Purchased Mortgage
Loan to the Buyer.

(viii) Fees and Expenses. The Buyer shall have received all fees and expenses
of counsel to the Buyer as contemplated by Sections 10 and 15(b) which amounts, at the
Buyer’s option, may be withheld from the proceeds remitted by Buyer to the Sellers pursuant
to any Transaction hereunder.

(ix) No Material Adverse Change. None of the following shall have occurred
and/or be continuing:

(A) an event or events shall have occurred in the good faith determination of
the Buyer resulting in the effective absence of a “repo market” or comparable
“lending market” for financing debt obligations secured by securities or an event or
events shall have occurred resulting in the Buyer not being able to finance
Purchased Mortgage Loans through the “repo market” or “lending market” with
traditional counterparties at rates which would have been reasonable prior to the
occurrence of such event or events; or

(B) an event or events shall have occurred resulting in the effective absence
of a “securities market” for securities backed by mortgage loans or an event or
events shall have occurred resulting in Buyer not being able to sell securities
backed by mortgage loans at prices which would have been reasonable prior to such
event or events; or

(C) there shall have occurred (i) a material change in financial markets, an
outbreak or escalation of hostilities or a material change in national or
international political, financial or economic conditions; (ii) a general suspension
of trading on major stock exchanges; or (iii) a disruption in or moratorium on
commercial banking activities or securities settlement services.

(x) Wet-Ink Mortgage Loans. With respect to Transactions the subject of which
are Wet-Ink Mortgage Loans:

(A) With respect to the initial Transaction involving Wet-Ink Mortgage Loans,
(i) a Disbursement Agreement or TPO Disbursement Agreement, as applicable, duly
executed by the parties thereto in form and substance reasonably acceptable to the
Buyer, shall have been delivered to the Buyer and (ii) the accounts and computer
systems with the Disbursement Agent necessary for distributing the Purchase Price
related to Wet-Ink Mortgage Loans from the Disbursement Account or TPO Disbursement
Account, as applicable, under the Disbursement Agreement or TPO Disbursement
Agreement, as applicable, shall have been established;

(B) the applicable Seller shall have initiated a Transaction pursuant to the
requirements of Section 3(b)(vi) herein;

(C) With respect to Wet-Ink Mortgage Loans, by 11:59 p.m. (New York City time)
on the day prior to the related Purchase Date, the applicable Seller shall provide
the Buyer with the Estimated Purchase Price for Wet-Ink Mortgage Loans to be funded
that day;

(D) On or before 3:00 p.m. (New York City time) on the related Purchase Date,
the Buyer and the Disbursement Agent shall have received (a) one or more Asset
Schedules, including, without limitation, a schedule setting forth the mortgage loan
identification number, the Mortgagor name and the approximate outstanding principal
balance of Wet-Ink Mortgage Loans to be purchased by the Buyer on such Purchase
Date, (b) the amount of the related Purchase Price (the “Actual Purchase
Price”) and (c) a Wiring Schedule; and

(E) On the related Purchase Date, the Buyer shall have received a Wet-Ink Trust
Receipt for each Wet-Ink Mortgage Loan with the related Asset Schedule attached
thereto from the Custodian.

(xi) Approved Third Party Originators. Each Approved Third Party Originator must be
approved in writing (which may be via electronic transmission) by the Buyer to originate Mortgage
Loans to be sold to the Buyer hereunder.

(xii) Underlying Transactions. In the case of each Underlying Transaction and the
related Mortgage Loans but only with respect to the first Transaction entered into by the Buyer
with respect to any Underlying Transaction Documents:

(A) the Buyer shall have received certified copies of the repurchase agreement
or other principal document evidencing the Underlying Transactions and each such
document shall be satisfactory to the Buyer in form and substance in its good faith
discretion as determined by Buyer in a timely manner.

Each Transaction Request delivered by a Seller hereunder shall constitute a certification by
such Seller that all the conditions set forth in this Section 3(b) (other than clause (ix) hereof)
have been satisfied (both as of the date of such notice or request and as of the Purchase Date).

(xiii) Underwriting Guidelines. In the event that the Sellers have made any amendment
or modification to the Underwriting Guidelines, the Sellers shall have promptly delivered to the
Buyer a complete copy of the amended or modified Underwriting Guidelines, which the Buyer shall not
have, in good faith, disapproved such amendment or modification within seven (7) Business Days
following delivery thereof.

(xiv) Litigation. Buyer has not received notice of any action, suit, arbitration,
proceeding or investigation (or to its knowledge is threatened) by or before any Governmental
Authority affecting any of the Guarantor, any Seller, or any of their Subsidiaries or affecting any
of the Property of any of them which, in Buyer’s good faith judgment, is reasonably likely to be
adversely determined and which, if decided adversely, would have a reasonable likelihood of having
a Material Adverse Effect.

(c) Initiation.

(i) The applicable Seller shall deliver a Transaction Request to the Buyer on or prior
to the date and time set forth in Section 3(b)(vii) (or 3(b)(x) with respect to Wet-Ink
Mortgage Loans) prior to entering into any Transaction. Such Transaction Request shall
include a Mortgage Loan Schedule with respect to the Mortgage Loans to be sold in such
requested Transaction.

(ii) The Repurchase Date for each Transaction shall not be later than the Termination
Date.

(iii) Subject to the terms and conditions of this Repurchase Agreement, during such
period the Sellers may sell, repurchase and resell Eligible Mortgage Loans hereunder.

(iv) The applicable Seller shall deliver to the Custodian the Mortgage File pertaining
to each Eligible Asset to be purchased by the Buyer in accordance with (A) Section
3(b)(vii), with respect to Mortgage Loans other than Wet-Ink Mortgage Loans, and (B) Section
3(b)(x), with respect to Wet-Ink Mortgage Loans.

(v) Subject to the provisions of this Section 3, the Purchase Price will then be made
available to the Sellers by the Buyer transferring, via wire transfer, in the aggregate
amount of such Purchase Price in funds immediately available.

(vi) With respect to Transactions the subject of which are Wet-Ink Mortgage Loans:

(A) The conditions set forth in subsection (b)(x) of this Section shall have
been satisfied.

(B) The full amount of the Estimated Purchase Price shall be deemed to have
been made on the Purchase Date for all purposes hereunder.

(C) Upon receipt of the final Wiring Schedule with respect to any Purchase
Date, the Buyer shall determine the amount, if any, by which the Estimated Purchase
Price deposited in the Wet-Ink Funding Account exceeds the Actual Purchase Price
(such amount, the “Overestimate Amount”). The Buyer shall cause the
Disbursement Agent to promptly wire such Overestimate Amount directly to the Buyer
as a prepayment of the Transaction made on such Purchase Date.

(d) Repurchase

(i) The Sellers may repurchase Purchased Mortgage Loans without penalty or premium on
any date. The Repurchase Price payable for the repurchase of any such Purchased Mortgage
Loan shall be reduced as provided in Section 5(f). If the Sellers intend to make such a
repurchase, the Sellers shall give one (1) Business Day’s prior written notice thereof to
the Buyer, designating the Purchased Mortgage Loans to be repurchased. If the Purchased
Mortgage Loans repurchased are TPO Mortgage Loans, such notice shall be given on or before
3:00 p.m. (New York time) one (1) Business Day prior to the Repurchase Date. If such notice
is given, the amount specified in such notice shall be due and payable on the date specified
therein, and, on receipt, such amount shall be applied to the Repurchase Price for the
designated Purchased Mortgage Loans.

(ii) On the Repurchase Date, termination of the Transaction will be effected by
reassignment to the applicable Seller or its designee of the Purchased Mortgage Loans (and
any Income in respect thereof received by Buyer not previously credited or transferred to,
or applied to the obligations of, the Seller pursuant to Section 5) against the simultaneous
transfer of the Repurchase Price to an account of Buyer. With respect to Purchased Mortgage
Loans that are TPO Mortgage Loans for which the Takeout Investor is New Century Mortgage
Corporation, the Disbursement Agent shall issue a new Trust Receipt and the Repurchase Price
shall be transferred on or before 3:00 p.m. (New York time) on the Repurchase Date. Such
obligation to repurchase exists without regard to any prior or intervening liquidation or
foreclosure with respect to any Purchased Mortgage Loan (but liquidation or foreclosure
proceeds received by Buyer shall be applied to reduce the Repurchase Price for such
Purchased Mortgage Loan on each Payment Date except as otherwise provided herein). The
Sellers are obligated to obtain the Mortgage Files from Buyer or its designee at the
Sellers’ expense on the Repurchase Date.

(e) Extension of Termination Date. At the request of the Sellers made 90 days or less
prior to the Termination Date of this Agreement, the Buyer may in its sole discretion extend the
Termination Date for a period of 364 additional days or such other period to be determined by Buyer
in its sole discretion by giving written notice of such extension to the Sellers no later than
thirty (30) days after the Buyer’s receipt of the Sellers’ request. Any failure by the Buyer to
deliver such notice of extension shall be deemed to be the Buyer’s determination not to extend the
then current Termination Date.

	 	 	SECTION 4. MARGIN AMOUNT MAINTENANCE

(a) The Buyer shall determine the Asset Value of the Purchased Mortgage Loans at such
intervals as determined by the Buyer in its sole discretion.

(b) If at any time the aggregate Asset Value of all related Purchased Mortgage Loans subject
to all Transactions is at least $100,000 less than the aggregate Purchase Price for all such
Transactions (a “Margin Deficit”), then Buyer may by notice to Sellers (as such notice is
more particularly set forth below, a “Margin Call”), require Sellers to transfer to Buyer
or its designee cash or Eligible Mortgage Loans approved by the Buyer in its sole discretion
(“Additional Purchased Mortgage Loans”) so that the aggregate Asset Value of the Purchased
Mortgage Loans, including any such cash or Additional Purchased Mortgage Loans, will thereupon
equal or exceed the aggregate Purchase Price for all Transactions. If Buyer delivers a Margin Call
to the Seller on or prior to 9:30 a.m. (New York City time) on any Business Day, then the Sellers
shall transfer cash or Additional Purchased Mortgage Loans to Buyer no later than 5 p.m. (New York
City time) that day. In the event the Buyer delivers a Margin Call to a Seller after 9:30 a.m.
(New York City time) on any Business Day, the Sellers shall be required to transfer cash or
Additional Purchased Mortgage Loans no later than 5 p.m. (New York City time) on the subsequent
Business Day.

(c) Buyer’s election, in its sole and absolute discretion, not to make a Margin Call at any
time there is a Margin Deficit shall not in any way limit or impair its right to make a Margin Call
at any time a Margin Deficit exists.

(d) Any cash transferred to the Buyer pursuant to Section 4(b) above shall be credited to the
Repurchase Price of the related Transactions.

	 	 	SECTION 5. INCOME PAYMENTS

(a) Notwithstanding that Buyer and the Sellers intend that the Transactions hereunder be sales
to Buyer of the Purchased Mortgage Loans for all purposes except accounting and tax purposes,
Sellers shall pay to Buyer the accreted value of the Price Differential (less any amount of such
Price Differential previously paid by the Sellers to Buyer) plus the amount of any unpaid Margin
Deficit (each such payment, a “Periodic Advance Repurchase Payment”) on each Payment Date.
Notwithstanding the preceding sentence, if Sellers fail to make all or part of the Periodic Advance
Repurchase Payment by 4:00 p.m. (New York time) on any Payment Date, the Pricing Rate shall be
equal to the Post-Default Rate until the Periodic Advance Repurchase Payment is received in full by
Buyer.

(b) On the last Business Day of the month prior to each Payment Date (the “Statement
Date”), the Buyer shall deliver to the applicable Seller a statement of the amount of the
Periodic Advance Repurchase Payment due on the related Payment Date. If the Buyer fails to deliver
such statement on the Statement Date, on such Payment Date such Seller shall pay the amount which
such Seller calculates as the Periodic Advance Repurchase Payment due and upon delivery of the
statement, such Seller shall remit to the Buyer any shortfall, or the Buyer shall refund to such
Seller any excess, in the Periodic Advance Repurchase Payment paid.

(c) The Sellers shall hold for the benefit of, and in trust for, Buyer all income, including
without limitation all Income received by or on behalf of the Sellers with respect to such
Purchased Mortgage Loans. All such Income shall be held in trust for Buyer, shall constitute the
property of Buyer, except for tax purposes which shall be treated as income and property of the
Sellers. With respect to each Payment Date, the Sellers shall remit all Income as follows:

(i) first, to the payment of all costs and fees payable by the Sellers pursuant to this
Repurchase Agreement;

(ii) second, to the Buyer in payment of any accrued and unpaid Price Differential;

(iii) third, without limiting the rights of Buyer under Section 4 of this Repurchase
Agreement, to the Buyer, in the amount of any unpaid Margin Deficit; and

(iv) fourth, to the Sellers.

(d) After the occurrence of a Default or an Event of Default, the Sellers shall deposit such
Income in a deposit account (the title of which shall indicate that the funds therein are being
held in trust for Buyer) (the “Collection Account”) with a financial institution acceptable
to Buyer and subject to the Control Agreement. All such Income shall be held in trust for Buyer,
shall constitute the property of Buyer and shall not be commingled with other property of the
Seller or any Affiliate of the Seller except as expressly permitted above. Funds deposited in the
Collection Account during any month shall be held therein, in trust for the Buyer, until the next
Payment Date.

(e) To the extent that the Buyer receives any funds from a Take-out Investor with respect to
the purchase by such Take-out Investor of a Mortgage Loan, the Buyer shall promptly apply such
funds in accordance with the same order of priority set forth in Section 5(c) hereof.

(f) Notwithstanding the preceding provisions, if an Event of Default has occurred, all funds
in the Collection Account shall be withdrawn and applied as determined by the Buyer.

(g) Buyer shall offset against the Repurchase Price of each such Transaction all Income and
Periodic Advance Repurchase Payments actually received by Buyer pursuant to Section 5(a), excluding
any Late Payment Fees paid pursuant to any Periodic Advance Repurchase Payments made at the
Post-Default Rate pursuant to Section 5(a).

	 	 	SECTION 6. REQUIREMENTS OF LAW

(a) If any Requirement of Law (other than with respect to any amendment made to the Buyer’s
certificate of incorporation and by laws or other organizational or governing documents) or any
change in the interpretation or application thereof or compliance by the Buyer with any request or
directive (whether or not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof:

(i) shall subject the Buyer to any Tax or increased Tax of any kind whatsoever with
respect to this Repurchase Agreement or any Transaction or change the basis of taxation of
payments to the Buyer in respect thereof;

(ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, or other extensions of credit by, or any other acquisition of
funds by, any office of the Buyer which is not otherwise included in the determination of
the LIBOR Rate hereunder;

(iii) shall impose on the Buyer any other condition;

and the result of any of the foregoing is to increase the cost to the Buyer, by an amount which the
Buyer deems to be material, of entering, continuing or maintaining any Transaction or to reduce any
amount due or owing hereunder in respect thereof, then, in any such case, the Sellers shall
promptly pay the Buyer such additional amount or amounts as calculated by the Buyer in good faith
as will compensate the Buyer for such increased cost or reduced amount receivable.

(b) If the Buyer shall have determined that the adoption of or any change in any Requirement
of Law (other than with respect to any amendment made to the Buyer’s certificate of incorporation
and by laws or other organizational or governing documents) regarding capital adequacy or in the
interpretation or application thereof or compliance by the Buyer or any corporation controlling the
Buyer with any request or directive regarding capital adequacy (whether or not having the force of
law) from any Governmental Authority made subsequent to the date hereof shall have the effect of
reducing the rate of return on the Buyer’s or such corporation’s capital as a consequence of its
obligations hereunder to a level below that which the Buyer or such corporation could have achieved
but for such adoption, change or compliance (taking into consideration the Buyer’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by the Buyer to be
material, then from time to time, the Sellers shall promptly pay to the Buyer such additional
amount or amounts as will compensate the Buyer for such reduction.

(c) If the Buyer becomes entitled to claim any additional amounts pursuant to this Section, it
shall promptly notify the Sellers of the event by reason of which it has become so entitled. A
certificate as to any additional amounts payable pursuant to this Section submitted by the Buyer to
the Sellers shall be conclusive in the absence of manifest error; provided that Buyer, if
requested, shall provide back-up documentation for such certificate as Buyer deems reasonable.

	 	 	SECTION 7. TAXES.

(a) Any and all payments by the Sellers under or in respect of this Repurchase Agreement or
any other Facility Documents to which any Seller is a party shall be made free and clear of, and
without deduction or withholding for or on account of, any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities (including penalties, interest
and additions to tax) with respect thereto, whether now or hereafter imposed, levied, collected,
withheld or assessed by any taxation authority or other Governmental Authority (collectively,
“Taxes”), unless required by law. If any Seller shall be required under any applicable Requirement
of Law to deduct or withhold any Taxes from or in respect of any sum payable under or in respect of
this Repurchase Agreement or any of the other Facility Documents to the Buyer, (i) Sellers shall
make all such deductions and withholdings in respect of Taxes, (ii) Sellers shall pay the full
amount deducted or withheld in respect of Taxes to the relevant taxation authority or other
Governmental Authority in accordance with any applicable Requirement of Law, and (iii) the sum
payable by Sellers shall be increased as may be necessary so that after Sellers have made all
required deductions and withholdings (including deductions and withholdings applicable to
additional amounts payable under this Section 7) such Buyer receives an amount equal to the sum it
would have received had no such deductions or withholdings been made in respect of Non-Excluded
Taxes. For purposes of this Repurchase Agreement the term “Non-Excluded Taxes” are Taxes other
than, in the case of a Buyer, Taxes that are imposed on its overall net income (and franchise taxes
imposed in lieu thereof) by the jurisdiction under the laws of which such Buyer is organized or of
its applicable lending office, or any political subdivision thereof, unless such Taxes are imposed
as a result of such Buyer having executed, delivered or performed its obligations or received
payments under, or enforced, this Repurchase Agreement or any of the other Facility Documents (in
which case such Taxes will be treated as Non-Excluded Taxes).

(b) In addition, Sellers hereby agree to pay any present or future stamp, recording,
documentary, excise, property or value-added taxes, or similar taxes, charges or levies that arise
from any payment made under or in respect of this Repurchase Agreement or any other Facility
Document or from the execution, delivery or registration of, any performance under, or otherwise
with respect to, this Repurchase Agreement or any other Facility Document (collectively, “Other
Taxes”).

(c) Sellers hereby agree to indemnify Buyer for, and to hold it harmless against, the full
amount of Non-Excluded Taxes and Other Taxes, and the full amount of Taxes of any kind imposed by
any jurisdiction on amounts payable under this Section 7 imposed on or paid by such Buyer and any
liability (including penalties, additions to tax, interest and expenses) arising therefrom or with
respect thereto. The indemnity by Sellers provided for in this Section 7(c) shall apply and be
made whether or not the Non-Excluded Taxes or Other Taxes for which indemnification hereunder is
sought have been correctly or legally asserted. Amounts payable by Sellers under the indemnity set
forth in this Section 7(c) shall be paid within ten (10) days from the date on which Buyer makes
written demand therefor.

(d) Within thirty (30) days after the date of any payment of Taxes, Sellers (or any Person
making such payment on behalf of any Seller) shall furnish to Buyer for its own account a certified
copy of the original official receipt evidencing payment thereof. For purposes of subsection (e)
of this Section 7, the terms “United States” and “United States person” shall have the meanings
specified in Section 7701 of the Internal Revenue Code.

(e) Each Buyer (including for avoidance of doubt any assignee, successor or participant) whose
name does not include “Incorporated,” “Inc.,” “Corporation,” “Corp.,” “P.C.,” “insurance company,”
or “assurance company” (a “Non-Exempt Buyer”) shall deliver or cause to be delivered to Sellers a
complete and executed U.S. Internal Revenue Service Form W-9 (or any successor forms thereto),
including all appropriate attachments. If on the date a Person becomes an assignee, successor or
participant to this Repurchase Agreement, Buyer transferor was entitled to indemnification or
additional amounts under this Section 7, then the Buyer assignee, successor or participant shall be
entitled to indemnification or additional amounts to the extent (and only to the extent), that the
Buyer transferor was entitled to such indemnification or additional amounts for Non-Excluded Taxes,
and the Buyer assignee, successor or participant shall be entitled to additional indemnification or
additional amounts for any other or additional Non-Excluded Taxes.

(f) For any period with respect to which Buyer has failed to provide Sellers with the
appropriate form, certificate or other document described in subsection (e) of this Section 7
(other than (i) if such failure is due to a change in any applicable Requirement of Law, or in the
interpretation or application thereof, occurring after the date on which a form, certificate or
other document originally was required to be provided, (ii) if such form, certificate or other
document otherwise is not required under subsection (e) of this Section 7, or (iii) if it is
legally inadvisable or otherwise commercially disadvantageous for such Buyer to deliver such form,
certificate or other document), such Buyer shall not be entitled to indemnification or additional
amounts under subsection (a) or (c) of this Section 7 with respect to Non-Excluded Taxes imposed by
the United States by reason of such failure; provided, however, that should a Buyer become subject
to Non-Excluded Taxes because of its failure to deliver a form, certificate or other document
required hereunder, Sellers shall take such steps as such Buyer shall reasonably request, to assist
such Buyer in recovering such Non-Excluded Taxes.

(g) Without prejudice to the survival of any other agreement of the Sellers hereunder, the
agreements and obligations of each Seller contained in this Section 7 shall survive the termination
of this Repurchase Agreement. Nothing contained in this Section 7 shall require the Buyer to make
available any of its tax returns or any other information that it deems to be confidential or
proprietary.

	 	 	SECTION 8. SECURITY INTEREST; BUYER’S APPOINTMENT AS ATTORNEY-IN-FACT

(a) Security Interest. Although the parties intend that all Transactions hereunder be
sales and purchases (other than for accounting and tax purposes) and not loans, in the event any
such Transactions are deemed to be loans, each Seller hereby pledges to Buyer as security for the
performance by each Seller of its Obligations and hereby grants, assigns and pledges to Buyer a
security interest in its right, title and interest in the Purchased Mortgage Loans, the Records,
and all servicing rights related to the Purchased Mortgage Loans, the Facility Documents (to the
extent such Facility Documents and each Seller’s right thereunder relate to the Purchased Mortgage
Loans), any Take-out Commitments relating to any Purchased Mortgage Loan, all insurance policies
and insurance proceeds relating to any Purchased Mortgage Loan or the related Mortgaged Property,
including but not limited to any payments or proceeds under any related primary insurance or hazard
insurance, any Income relating to any Purchased Mortgage Loan, the Collection Account, the TPO
Disbursement Account, any Interest Rate Protection Agreements relating to any Purchased Mortgage
Loan, and any other contract rights, accounts (including any interest of the Sellers in escrow
accounts) and any other payments, rights to payment (including payments of interest or finance
charges) and general intangibles to the extent that the foregoing relates to any Purchased Mortgage
Loan and any other assets relating to the Purchased Mortgage Loans (including, without limitation,
any other accounts) or any interest in the Purchased Mortgage Loans, and any proceeds and
distributions and any other property, rights, title or interests as are specified on a Trust
Receipt and Mortgage Loan Schedule and Exception Report with respect to any of the foregoing, in
all instances, whether now owned or hereafter acquired, now existing or hereafter created
(collectively, the “Repurchase Assets”).

Each Seller hereby authorizes the Buyer to file such financing statement or statements
relating to the Repurchase Assets as the Buyer, at its option, may deem appropriate. The Sellers
shall pay the filing costs for any financing statement or statements prepared pursuant to this
Section 8.

Warehouse Corporation acknowledges and agrees that its rights with respect to the Repurchase
Assets (including without limitation its security interest in the Purchased Mortgage Loans and any
other collateral granted to Warehouse Corporation pursuant to any Underlying Transaction Document)
are and shall continue to be at all times junior and subordinate to the rights of the Buyer
hereunder. Other than with respect to TPO Mortgage Loans that have been repurchased by Warehouse
Corporation, Warehouse Corporation agrees that it will forbear and take no enforcement or
collection action without the express prior written consent of the Buyer with respect to the
Repurchase Assets pursuant to any other agreement between Warehouse Corporation and the Underlying
Obligor or otherwise prior to 91 days after the time the Buyer has sold or disposed of all of the
TPO Mortgage Loans (excluding a repurchase hereunder).

Warehouse Corporation agrees that the Buyer shall not assume the obligations of Warehouse
Corporation to any Underlying Obligor under the Underlying Transaction Documents. Subject to the
provisions hereof, Warehouse Corporation and the Underlying Obligor may from time to time enter
into agreements relating to their rights and duties to each other in the event of any realization
by the Buyer on the Repurchase Assets hereunder or any other exercise of its rights hereunder or
its realization under any Underlying Transaction Document. No such agreement shall be binding on
the Buyer and nothing set forth therein shall limit, alter or impair any of the Buyer’s rights
hereunder. Warehouse Corporation hereby agrees that upon any such realization or exercise of
rights, with respect to any duties of Warehouse Corporation pursuant to any Underlying Transaction
Document arising out of any purchase of Mortgage Loans or other transaction under any Underlying
Transaction Document taking place prior to such foreclosure or other realization, any transaction
related to any Mortgage Loans or other property or rights accruing to Warehouse Corporation prior
to the date of such foreclosure or other realization, Warehouse Corporation shall remain liable to
the Underlying Obligor for all obligations under the Underlying Transaction Document; in no event
shall any Person be entitled to look to the Buyer or any other party acquiring any rights of
Warehouse Corporation pursuant to foreclosure for the performance of such obligations of Warehouse
Corporation.

(b) Buyer’s Appointment as Attorney in Fact. Each Seller hereby irrevocably
constitutes and appoints the Buyer and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in
the place and stead of the Sellers and in the name of the Sellers or in its own name, from time to
time in the Buyer’s discretion, for the purpose of carrying out the terms of this Repurchase
Agreement, to take any and all appropriate action and to execute any and all documents and
instruments which may be reasonably necessary or desirable to accomplish the purposes of this
Repurchase Agreement, and, without limiting the generality of the foregoing, each Seller hereby
gives the Buyer the power and right, on behalf of the Sellers, without assent by, but with notice
to, the Sellers, if an Event of Default shall have occurred and be continuing, to do the following:

(i) in the name of the Sellers, or in its own name, or otherwise, to take possession of
and endorse and collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due with respect to any other Repurchase Assets and to file any claim or
to take any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Buyer for the purpose of collecting any and all such moneys due with
respect to any other Repurchase Assets whenever payable;

(ii) to pay or discharge taxes and Liens levied or placed on or threatened against the
Repurchase Assets;

(iii) (A) to direct any party liable for any payment under any Repurchase Assets to
make payment of any and all moneys due or to become due thereunder directly to the Buyer or
as the Buyer shall direct; (B) to ask or demand for, collect, receive payment of and receipt
for, any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Repurchase Assets; (C) to sign and endorse any invoices,
assignments, verifications, notices and other documents in connection with any Repurchase
Assets; (D) to commence and prosecute any suits, actions or proceedings at law or in equity
in any court of competent jurisdiction to collect the Repurchase Assets or any proceeds
thereof and to enforce any other right in respect of any Repurchase Assets; (E) to defend
any suit, action or proceeding brought against any Seller with respect to any Repurchase
Assets; (F) to settle, compromise or adjust any suit, action or proceeding described in
clause (E) above and, in connection therewith, to give such discharges or releases as the
Buyer may deem appropriate; and (G) generally, to sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any Repurchase Assets as fully and
completely as though the Buyer were the absolute owner thereof for all purposes, and to do,
at the Buyer’s option and the Sellers’ expense, at any time, and from time to time, all acts
and things which the Buyer deems necessary to protect, preserve or realize upon the
Repurchase Assets and the Buyer’s Liens thereon and to effect the intent of this Repurchase
Agreement, all as fully and effectively as the Sellers might do.

Each Seller hereby ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof. This power of attorney is a power coupled with an interest and shall be
irrevocable.

Each Seller also authorizes the Buyer, if an Event of Default shall have occurred and be
continuing, from time to time, to execute, in connection with any sale provided for in Section 14
hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect
to the Repurchase Assets.

The powers conferred on the Buyer hereunder are solely to protect the Buyer’s interests in the
Repurchase Assets and shall not impose any duty upon it to exercise any such powers. The Buyer
shall be accountable only for amounts that it actually receives as a result of the exercise of such
powers, and neither it nor any of its officers, directors, employees or agents shall be responsible
to the Sellers for any act or failure to act hereunder, except for its or their own gross
negligence or willful misconduct.

	 	 	SECTION 9. PAYMENT, TRANSFER AND CUSTODY

(a) Unless otherwise mutually agreed in writing, all transfers of funds to be made by the
Sellers hereunder shall be made in Dollars, in immediately available funds, without deduction, set
off or counterclaim, to the Buyer at the following account maintained by the Buyer: Account No.
40711421, for the account of Goldman Sachs Mortgage Company; Citibank, N.A., New York, ABA No.
02100089, Attn: John Makrinos and Mike Forbes, not later than 3:00 p.m. New York City time, on the
date on which such payment shall become due (and each such payment made after such time shall be
deemed to have been made on the next succeeding Business Day). Each Seller acknowledges that it
has no rights of withdrawal from the foregoing account.

(b) On the Purchase Date for each Transaction, ownership of the Purchased Mortgage Loans shall
be transferred to the Buyer or its designee against the simultaneous transfer of the Purchase Price
(i) to the following account of the Sellers (or as otherwise directed by the Sellers) with respect
to Mortgage Loans other than TPO Mortgage Loans, Account No. [Music Sprouse] 00424583, for the
account of [Music Sprouse] New Century Operating Account Deutsche Bank National Trust Company, ABA
No. [Music Sprouse] 021001033, Attn: [Music Sprouse] Lulu Tsai, not later than [Music Sprouse] 4:30
p.m. New York City time, and (ii) with respect to TPO Mortgage Loans, as set forth in the TPO
Account Control Agreement, in each case, simultaneously with the delivery to the Buyer of the
Purchased Mortgage Loans relating to each Transaction.. With respect to the Purchased Mortgage
Loans being sold by a Seller on a Purchase Date, such Seller hereby sells, transfers, conveys and
assigns to Buyer or its designee without recourse, but subject to the terms of this Repurchase
Agreement, all the right, title and interest of such Seller in and to the Purchased Mortgage Loans
together with all right, title and interest in and to the proceeds of any related Repurchase
Assets.

(c) In connection with such sale, transfer, conveyance and assignment, on or prior to each
Purchase Date, the Sellers shall deliver or cause to be delivered and released to Buyer or its
designee the Mortgage File for the related Purchased Mortgage Loans.

	 	 	SECTION 10. FEES

(a) Commitment Fee. The Sellers shall pay to Buyer in immediately available funds,
due and owing on the date hereof (and upon each anniversary of the closing, if this agreement has
not been terminated), the Commitment Fee. Such payment shall be made in Dollars, in immediately
available funds, without deduction, set-off or counterclaim, to Buyer at such account designated by
Buyer.

(b) Non-Utilization Fee. Commencing on the date which is ninety (90) days from the
date hereof, no later than the Payment Date following the end of each calendar quarter, Seller
shall pay in immediately available funds to Buyer the Non-Utilization Fee. Such payment shall be
made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to
Buyer at an account designated by Buyer.

	 	 	SECTION 11. REPRESENTATIONS

(1) Each of Guarantor and each Seller represents and warrants to the Buyer that as of the
Purchase Date for any Purchased Mortgage Loans by the Buyer from any Seller and as of the date of
this Repurchase Agreement and any Transaction hereunder and at all times while the Facility
Documents and any Transaction hereunder is in full force and effect:

(a) Acting as Principal. The Sellers will engage in such Transactions as principal
(or, if agreed in writing in advance of any Transaction by the other party hereto, as agent for a
disclosed principal).

(b) No Broker. No Seller has dealt with any broker, investment banker, agent, or
other person, except for the Buyer, who may be entitled to any commission or compensation in
connection with the sale of Purchased Mortgage Loans pursuant to this Repurchase Agreement.

(c) Financial Statements. Each of Guarantor and each Seller has heretofore furnished
to the Buyer a copy of its (a) consolidated balance sheet and the consolidated balance sheets of
its consolidated Subsidiaries for the fiscal year ended December 31, 2004 and its related
consolidated statements of income and retained earnings and of cash flows and its consolidated
Subsidiaries for such fiscal year, setting forth in each case in comparative form the figures for
the previous year, with the opinion thereon of KPMG, LLP and (b) consolidated balance sheet and the
consolidated balance sheets of its consolidated Subsidiaries for its quarterly fiscal period(s)
ended March 31, 2005, June 30, 2005 and September 30, 2005 and the related consolidated statements
of income and retained earnings and of cash flows for it and its consolidated Subsidiaries for such
quarterly fiscal period(s), setting forth in each case in comparative form the figures for the
previous year. All such financial statements are complete and correct and fairly present, in all
material respects, the consolidated financial condition of such Seller or Guarantor and its
Subsidiaries and the consolidated results of their operations as at such dates and for such fiscal
periods, all in accordance with GAAP applied on a consistent basis. Since December 31, 2004, there
has been no material adverse change in the consolidated business, operations or financial condition
of any Seller, Guarantor and its consolidated Subsidiaries taken as a whole from that set forth in
said financial statements nor is any Seller or Guarantor aware of any state of facts which (without
notice or the lapse of time) would result in any such material adverse change or would have a
Material Adverse Effect. No Seller or Guarantor has, on the date of the statements delivered
pursuant to this section (the “Statement Date”), any material liabilities, direct or
indirect, fixed or contingent, matured or unmatured, known or unknown, or liabilities for taxes,
long-term leases or unusual forward or long-term commitments not disclosed by, or reserved against
in, said balance sheet and related statements, and at the present time there are no material
unrealized or anticipated losses from any loans, advances or other commitments of any Seller or
Guarantor except as heretofore disclosed to the Buyer in writing.

(d) Organization, Etc. New Century Mortgage Corporation is a corporation duly
organized, validly existing and in good standing under the laws of California. Warehouse
Corporation is a corporation duly organized, validly existing and in good standing under the laws
of California. Guarantor is a corporation duly organized, validly existing and in good standing
under the laws of Maryland. Each of Guarantor and each Seller (a) has all requisite corporate or
other power, and has all governmental licenses, authorizations, consents and approvals necessary to
own its assets and carry on its business as now being or as proposed to be conducted, except where
the lack of such licenses, authorizations, consents and approvals would not be reasonably likely to
have a Material Adverse Effect; (b) is qualified to do business and is in good standing in all
other jurisdictions in which the nature of the business conducted by it makes such qualification
necessary, except where failure so to qualify would not be reasonably likely (either individually
or in the aggregate) to have a Material Adverse Effect; and (c) has full power and authority to
execute, deliver and perform its obligations under the Facility Documents.

(e) Authorization, Compliance, Etc. The execution and delivery of, and the
performance by each of Guarantor and each Seller of its obligations under, the Facility Documents
to which it is a party (a) are within such Seller’s or Guarantor’s, as applicable, powers, (b) have
been duly authorized by all requisite action, (c) do not violate any provision of applicable law,
rule or regulation, or any order, writ, injunction or decree of any court or other Governmental
Authority, or its organizational documents, (d) do not violate any material indenture, agreement,
document or instrument to which any Seller, Guarantor or any of its Subsidiaries is a party, or by
which any of them or any of their properties, any of the Repurchase Assets is bound or to which any
of them is subject and (e) are not in conflict with, do not result in a breach of, or constitute
(with due notice or lapse of time or both) a default under, or except as may be provided by any
Facility Document, result in the creation or imposition of any Lien upon any of the property or
assets of any Seller, Guarantor or any of its Subsidiaries pursuant to, any such indenture,
agreement, document or instrument. Neither Guarantor nor any Seller is required to obtain any
consent, approval or authorization from, or to file any declaration or statement with, any
Governmental Authority in connection with or as a condition to the consummation of the Transactions
contemplated herein and the execution, delivery or performance of the Facility Documents to which
it is a party.

(f) Litigation. Except as set forth on the litigation report required under Section
12(c)(iii), there are no actions, suits, arbitrations, investigations (including, without
limitation, any of the foregoing which are pending or threatened) or other legal or arbitrable
proceedings affecting the Guarantor, any Seller or any of their Subsidiaries or affecting any of
the Property of any of them before any Governmental Authority which (i) questions or challenges the
validity or enforceability of the Facility Documents or any action to be taken in connection with
the transactions contemplated hereby, (ii) makes a claim or claims in an aggregate amount greater
than $5,000,000 (provided such claims or claims shall be required to be set forth on the litigation
report referenced above only upon Buyer’s request), or (iii) individually or in the aggregate, is
reasonably likely to be adversely determined, and if adversely determined, is reasonably likely to
have a Material Adverse Effect.

(g) Purchased Mortgage Loans.

(i) No Seller has assigned, pledged, or otherwise conveyed or encumbered any Mortgage
Loan to any other Person, and immediately prior to the sale of such Mortgage Loan to the
Buyer, the applicable Seller was the sole owner of such Mortgage Loan and had good and
marketable title thereto, free and clear of all Liens, in each case except for Liens to be
released simultaneously with the sale to the Buyer hereunder.

(ii) The provisions of this Repurchase Agreement are effective to either constitute a
sale of Repurchase Assets to the Buyer or to create in favor of the Buyer a valid security
interest in all right, title and interest of the Sellers in, to and under the Repurchase
Assets.

(h) Chief Executive Office/Jurisdiction of Organization. On the Effective Date, New
Century Mortgage Corporation’s chief executive office is, and has been, located at 18400 Von Karman
Ave., Suite 1000, Irvine, CA 92612. New Century Mortgage Corporation’s jurisdiction of
organization is California. On the Effective Date, Warehouse Corporation’s chief executive office
is, and has been, located at 18400 Von Karman Ave., Suite 1000, Irvine, CA 92612. Warehouse
Corporation’s jurisdiction of organization is California.

(i) Location of Books and Records. The location where the Sellers keep their books
and records, including all computer tapes and records related to the Repurchase Assets is their
chief executive office.

(j) Enforceability. This Repurchase Agreement and all of the other Facility Documents
executed and delivered by the Sellers and the Guarantor in connection herewith are legal, valid and
binding obligations of each of the Guarantor and each Seller and are enforceable against each of
the Guarantor and each Seller in accordance with their terms except as such enforceability may be
limited by (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors rights generally and (ii) general principles of equity.

(k) Ability to Perform. Neither the Guarantor nor any Seller believes, nor does it
have any reason or cause to believe, that it cannot perform in all material respects each and every
covenant contained in the Facility Documents to which it is a party on its part to be performed

(l) No Default. No Default or Event of Default has occurred and is continuing.

(m) Underwriting Guidelines. The Underwriting Guidelines provided to Buyer are the
true and correct Underwriting Guidelines of the Seller.

(n) Adverse Selection. No Seller has selected the Purchased Mortgage Loans in a
manner so as to adversely affect Buyer’s interests.

(o) Tangible Net Worth. On the initial Purchase Date, the Tangible Net Worth of the
Guarantor is not less than $750 million.

(p) Reserved.

(q) Accurate and Complete Disclosure. The information, reports, financial statements,
exhibits and schedules furnished in writing by or on behalf of the Sellers or the Guarantor to the
Buyer in connection with the negotiation, preparation or delivery of this Repurchase Agreement and
the other Facility Documents or included herein or therein or delivered pursuant hereto or thereto,
when taken as a whole, do not contain any untrue statement of material fact or omit to state any
material fact necessary to make the statements herein or therein, in light of the circumstances
under which they were made, not misleading. All written information furnished after the date
hereof by or on behalf of the Sellers or the Guarantor to the Buyer in connection with this
Repurchase Agreement and the other Facility Documents and the transactions contemplated hereby and
thereby including without limitation, the information set forth in the related Mortgage Loan
Schedule, will be true, complete and accurate in every material respect, or (in the case of
projections) based on reasonable estimates, on the date as of which such information is stated or
certified.

(r) Margin Regulations. The use of all funds acquired by any Seller under this
Repurchase Agreement will not conflict with or contravene any of Regulations T, U or X promulgated
by the Board of Governors of the Federal Reserve System as the same may from time to time be
amended, supplemented or otherwise modified.

(s) Investment Company. Neither the Guarantor, any Seller nor any of their
Subsidiaries is an “investment company” or a company “controlled” by an “investment company” within
the meaning of the Investment Company Act of 1940, as amended.

(t) Solvency. As of the date hereof and immediately after giving effect to each
Transaction, the fair value of the assets of any Seller is greater than the fair value of the
liabilities (including, without limitation, contingent liabilities if and to the extent required to
be recorded as a liability on the financial statements of such Seller in accordance with GAAP) of
such Seller and such Seller is solvent and, after giving effect to the transactions contemplated by
this Repurchase Agreement and the other Facility Documents, will not be rendered insolvent or left
with an unreasonably small amount of capital with which to conduct its business and perform its
obligations. No Seller intends to incur, nor does it believe that it has incurred, debts beyond
its ability to pay such debts as they mature. No Seller is contemplating the commencement of an
insolvency, bankruptcy, liquidation, or consolidation proceeding or the appointment of a receiver,
liquidator, conservator, trustee, or similar official in respect of itself or any of its property.

(u) ERISA.

(i) No liability under Section 4062, 4063, 4064 or 4069 of ERISA has been or is
expected by the Guarantor or any Seller to be incurred by the Guarantor or any Seller or any
ERISA Affiliate thereof with respect to any Plan which is a Single-Employer Plan in an
amount that could reasonably be expected to have a Material Adverse Effect.

(ii) No Plan which is a Single-Employer Plan had an accumulated funding deficiency,
whether or not waived, as of the last day of the most recent fiscal year of such Plan ended
prior to the date hereof. Neither any Seller, the Guarantor nor any ERISA Affiliate thereof
is (A) required to give security to any Plan which is a Single-Employer Plan pursuant to
Section 401(a)(29) of the Code or Section 307 of ERISA, or (B) subject to a Lien in favor of
such a Plan under Section 412(n) of the Code or Section 302(f) of ERISA.

(iii) Each Plan of a Seller or the Guarantor, each of its Subsidiaries and each of its
ERISA Affiliates is in compliance with the applicable provisions of ERISA and the Code,
except where the failure to comply would not result in any Material Adverse Effect.

(iv) Neither the Guarantor, any Seller nor any of its Subsidiaries has incurred a tax
liability under Chapter 43 of the Code or a penalty under Section 502 of ERISA which has not
been paid in full, except where the incurrence of such tax or penalty would not result in a
Material Adverse Effect.

(v) Neither the Guarantor, any Seller nor any of its Subsidiaries nor any ERISA
Affiliate thereof has incurred or reasonably expects to incur any withdrawal liability under
Section 4201 of ERISA as a result of a complete or partial withdrawal from a Multiemployer
Plan in an amount that could reasonably be expected to have a Material Adverse Effect.

(v) Taxes. Each of the Guarantor and each Seller and its Subsidiaries have timely
filed all tax returns that are required to be filed by them and have timely paid all Taxes due,
except for any such Taxes as are being appropriately contested in good faith by appropriate
proceedings diligently conducted and with respect to which adequate reserves have been provided.
There are no Liens for Taxes, except for statutory liens for Taxes not yet due and payable.

(w) No Reliance. Each of the Guarantor and each Seller has made its own independent
decisions to enter into the Facility Documents and each Transaction and as to whether such
Transaction is appropriate and proper for it based upon its own judgment and upon advice from such
advisors (including without limitation, legal counsel and accountants) as it has deemed necessary.
Neither the Guarantor nor any Seller is relying upon any advice from Buyer as to any aspect of the
Transactions, including without limitation, the legal, accounting or tax treatment of such
Transactions.

(x) Plan Assets. No Seller is an employee benefit plan as defined in Section 3 of
Title I of ERISA, or a plan described in Section 4975(e)(1) of the Code, and the Purchased Mortgage
Loans are not “plan assets” within the meaning of 29 CFR §2510.3-101 in such Seller’s
hands.

(y) No Prohibited Persons. Neither any Seller, Guarantor nor any of their respective
officers, directors, partners or members, is an entity or person (or to such Seller’s or
Guarantor’s knowledge, owned or controlled by an entity or person): (i) that is listed in the Annex
to, or is otherwise subject to the provisions of Executive Order 13224 issued on September 24, 2001
(“EO13224”); (ii) whose name appears on the United States Treasury Department’s Office of
Foreign Assets Control (“OFAC”) most current list of “Specifically Designated National and
Blocked Persons” (which list may be published from time to time in various mediums including, but
not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens
to commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who is otherwise
affiliated with any entity or person listed above (any and all parties or persons described in
clauses (i) through (iv) above are herein referred to as a “Prohibited Person”).

	 	 	SECTION 12. COVENANTS

On and as of the date of this Repurchase Agreement and each Purchase Date and at all times
until this Repurchase Agreement is no longer in force, each of Guarantor and each Seller covenants
as follows:

(a) Preservation of Existence; Compliance with Law. Each of Guarantor and each Seller
shall:

(i) Preserve and maintain its legal existence and all of its material rights,
privileges, licenses and franchises necessary for the operation of its business;

(ii) Comply in all material respects with the requirements of all applicable laws,
rules, regulations and orders, whether now in effect or hereafter enacted or promulgated by
any applicable Governmental Authority (including, without limitation, all environmental
laws);

(iii) Maintain all licenses, permits or other approvals necessary for such Seller or
Guarantor, as applicable, to conduct its business and to perform its obligations under the
Facility Documents;

(iv) Keep adequate records and books of account, in which complete entries will be made
in accordance with GAAP consistently applied; and

(v) Permit representatives of the Buyer, upon reasonable notice (unless an Event of
Default shall have occurred and is continuing, in which case, no prior notice shall be
required), during normal business hours, to examine, copy and make extracts from its books
and records, to inspect any of its Properties, and to discuss its business and affairs with
its officers, all to the extent reasonably requested by the Buyer, subject to the provisions
set forth in Section 17 hereof.

(b) Taxes. Each of Guarantor and each Seller shall timely file all tax returns that
are required to be filed by it and shall timely pay all Taxes due, except for any such Taxes as are
being appropriately contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves have been provided.

(c) Notice of Proceedings or Adverse Change. Each of Guarantor and each Seller shall
give notice to the Buyer immediately after a Responsible Officer of such Seller or Guarantor, as
applicable, has any knowledge of:

(i) the occurrence of any Event of Default under the Underlying Transaction Documents
that constitutes a default (i) in the payment of any material amount of principal or
interest payable by it under any Underlying Transaction Document, or (ii) of any material
representation, warranty or certification made or deemed made in any Underlying Transaction
Document by any Underlying Obligor or any certificate furnished pursuant to the provisions
thereof , or (iii) of any material covenant made or deemed made in any Underlying
Transaction Document by any Underlying Obligor;

(ii) the occurrence of any Default or Event of Default or Termination Event;

(iii) any (a) default or event of default under any Indebtedness, which Indebtedness is
in excess of $5 million of any Seller or the Guarantor or (b) litigation, investigation,
regulatory action or proceeding that is pending or threatened by or against any Seller or
the Guarantor in any federal or state court or before any Governmental Authority which, if
not cured or if adversely determined, would reasonably be expected to have a Material
Adverse Effect or constitute a Default or Event of Default, and (c) any Material Adverse
Effect with respect to any Seller or the Guarantor;

(iv) Except as has already been disclosed on the litigation report referenced below,
Seller will promptly, and in any event within ten (10) days after service of process on any
of the following, give to Buyer notice of all litigation, actions, suits, arbitrations,
investigations (including, without limitation, any of the foregoing which are threatened or
pending) or other legal or arbitrable proceedings affecting Seller or any of its
Subsidiaries or affecting any of the Property of any of them before any Governmental
Authority that (i) questions or challenges the validity or enforceability of any of the
Repurchase Documents or any action to be taken in connection with the transactions
contemplated hereby, (ii) makes a claim or claims in an aggregate amount greater than
$5,000,000 (provided notice with respect to such claim or claims shall be required only upon
Buyer’s request), or (iii) which, individually or in the aggregate, if adversely determined,
could be reasonably likely to have a Material Adverse Effect. The Sellers will deliver to
Buyer a litigation report monthly;

(v) as soon as reasonably possible, notice of any of the following events:

(A) a material change in the Fidelity Insurance coverage of the Guarantor or
any Seller, with a copy of evidence of same attached;

(B) any material change in accounting policies or financial reporting practices
of the Guarantor or any Seller;

(C) promptly upon receipt of notice or knowledge of any Lien or security
interest (other than security interests created hereby or under any other Facility
Document) on, or claim asserted against, any of the Repurchase Assets; and

(D) any other event, circumstance or condition that has resulted, or would
reasonably be expected to result in a Material Adverse Effect; and

(vi) Promptly, but no later than two (2) Business Days after the Guarantor or any
Seller receives any of the same, deliver to the Buyer a true, complete, and correct copy of
any schedule, report, notice, or any other document delivered to the Sellers or the
Guarantor, as applicable, by any Person pursuant to, or in connection with, any of the
Repurchase Assets.

(d) Financial Reporting. Each of Guarantor and each Seller shall maintain a system of
accounting established and administered in accordance with GAAP, and furnish to the Buyer:

(i) Within ninety (90) days after the close of each fiscal year, Financial Statements,
including a statement of income and changes in shareholders’ equity of Guarantor or such
Seller for such year, and the related balance sheet as at the end of such year, all in
reasonable detail and accompanied by an opinion of an accounting firm as to said financial
statements;

(ii) Within forty-five (45) days after the close of each of Guarantor’s or such
Seller’s first three fiscal quarters in each fiscal year unaudited balance sheets and income
statements, for the period from the beginning of such fiscal year to the end of such third
fiscal quarter, subject, however, to year end adjustments;

(iii) Reserved;

(iv) Simultaneously with the furnishing of each of the Financial Statements to be
delivered pursuant to subsection (i)-(iii) above, or monthly upon Buyer’s request, a
certificate in the form of Exhibit F hereto and certified by an executive officer of
Guarantor or such Seller;

(v) If applicable, copies of any 10-Ks, 10-Qs, registration statements and other
“corporate finance” SEC filings (other than 8-Ks) by Guarantor or such Seller,
within 5 Business Days of their filing with the SEC; provided, that, Guarantor or such
Seller or any Affiliate will provide the Buyer with a copy of the annual 10-K filed with the
SEC by Guarantor or such Seller or its Affiliates, no later than 90 days after the end of
the fiscal year; and

(vi) Promptly, from time to time, such other information regarding the business
affairs, operations and financial condition of Guarantor or such Seller as the Buyer may
reasonably request.

(e) Visitation and Inspection Rights. Each of Guarantor and each Seller shall permit
the Buyer to inspect, and take all other actions permitted under Section 17 hereof.

(f) Reimbursement of Expenses. The Sellers shall promptly reimburse the Buyer for all
expenses as the same are incurred by the Buyer as required by Section 15(b) hereof.

(g) Further Assurances. Each of Guarantor and each Seller shall execute and deliver
to the Buyer all further documents, financing statements, agreements and instruments, and take all
further action that may be required under applicable law, or that the Buyer may reasonably request,
in order to effectuate the transactions contemplated by this Repurchase Agreement and the Facility
Documents or, without limiting any of the foregoing, to grant, preserve, protect and perfect the
validity and first-priority of the security interests created or intended to be created hereby.
Each of Guarantor and each Seller shall do all things necessary to preserve the Repurchase Assets
so that they remain subject to a first priority perfected security interest hereunder. Neither the
Guarantor nor any Seller will allow any default for which such Seller is responsible to occur under
any Repurchase Assets or any Facility Document and such Seller or Guarantor shall fully perform or
cause to be performed when due all of its obligations under any Repurchase Assets or the Facility
Documents.

(h) True and Correct Information. All information, reports, exhibits, schedules,
financial statements or certificates of each of the Guarantor and each Seller or any of their
Affiliates or any of their officers furnished to Buyer hereunder and during Buyer’s diligence of
the Sellers and Guarantor are and will be true and complete and do not omit to disclose any
material facts necessary to make the statements therein or therein, in light of the circumstances
in which they are made, not misleading.

(i) ERISA Events.

(i) Promptly upon becoming aware of the occurrence of any Event of ERISA Termination
which together with all other Events of ERISA Termination occurring within the prior 12
months involve a payment of money by or a potential aggregate liability of Guarantor, any
Seller or any ERISA Affiliate thereof or any combination of such entities in excess of $2.5
million the Sellers or the Guarantor, as applicable, shall give the Buyer a written notice
specifying the nature thereof, what action Guarantor, any Seller or any ERISA Affiliate
thereof has taken and, when known, any action taken or threatened by the Internal Revenue
Service, the Department of Labor or the PBGC with respect thereto;

(ii) Promptly upon receipt thereof, each of Guarantor and each Seller shall furnish to
the Buyer copies of (i) all notices received by such Seller, Guarantor or any ERISA
Affiliate thereof of the PBGC’s intent to terminate any Plan or to have a trustee appointed
to administer any Plan; (ii) all notices received by such Seller, Guarantor or any ERISA
Affiliate thereof from the sponsor of a Multiemployer Plan pursuant to Section 4202 of ERISA
involving withdrawal liability in excess of $2.5 million; and (iii) all funding waiver
requests filed by such Seller, Guarantor or any ERISA Affiliate thereof with the Internal
Revenue Service with respect to any Plan, the accrued benefits of which exceed the present
value of the plan assets as of the date the waiver request is filed, and all communications
received by such Seller, Guarantor or any ERISA Affiliate thereof from the Internal Revenue
Service with respect to any such funding waiver request.

(j) Financial Condition Covenants.

(i) Maintenance of Tangible Net Worth. Guarantor shall maintain a Tangible Net
Worth of not less than the sum of (i) $750 million and (ii) 50% of all increases in
shareholder’s equity in Guarantor attributable to issuances of common stock after October 1,
2005.

(ii) Maintenance of Ratio of Indebtedness to Tangible Net Worth. The
Guarantor, on a consolidated basis, shall maintain a ratio of Indebtedness (excluding all
Non-Recourse Debt) to Adjusted Tangible Net Worth at the end of each calendar quarter of not
greater than 16:1.

(iii) Maintenance of Liquidity. The Guarantor, on a consolidated basis, shall
ensure that, at all times, it has Liquidity in an amount not less than $60 million.

(k) Hedging. If requested by the Buyer in writing, the Sellers shall have entered
into Interest Rate Protection Agreements, in an amount in accordance with the Buyer’s written
request, with Buyer or any Affiliate, having terms consistent with Sellers’ hedging policies.

(l) No Adverse Selection. No Seller shall select Eligible Mortgage Loans to be sold
to Buyer as Purchased Mortgage Loans using any type of adverse selection or other selection
criteria which would adversely affect the Buyer.

(m) Servicer Approval. No Seller shall cause the Mortgage Loans to be serviced by any
servicer other than a servicer expressly approved in writing by Buyer, which approval shall be
deemed granted by Buyer with respect to the Sellers with the execution of this Repurchase
Agreement.

(n) Insurance. The Sellers shall continue to maintain Fidelity Insurance in an
aggregate amount at least equal to $25 million. The Sellers shall maintain Fidelity Insurance in
respect of its officers, employees and agents, with respect to any claims made in connection with
all or any portion of the Repurchase Assets.

(o) Books and Records. The Sellers shall, to the extent practicable, maintain and
implement administrative and operating procedures (including, without limitation, an ability to
recreate records evidencing the Repurchase Assets in the event of the destruction of the originals
thereof), and keep and maintain or obtain, as and when required, all documents, books, records and
other information reasonably necessary or advisable for the collection of all Repurchase Assets.

(p) Illegal Activities. Neither Guarantor nor any Seller shall engage in any conduct
or activity that could subject its assets to forfeiture or seizure.

(q) Material Change in Business. Neither Guarantor nor any Seller shall make any
material change in the nature of its business as carried on at the date hereof.

(r) Limitation on Dividends and Distributions. No Seller shall make any payment on
account of, or set apart assets for, a sinking or other analogous fund for the purchase,
redemption, defeasance, retirement or other acquisition of any equity interest of such Seller,
whether now or hereafter outstanding, or make any other distribution or dividend in respect of any
of the foregoing or to any shareholder or equity owner of such Seller, either directly or
indirectly, whether in cash or property or in obligations of such Seller or any of such Seller’s
consolidated Subsidiaries following the occurrence and during the continuation of an Event of
Default. Guarantor shall not make any payment on account of, or set apart assets for, a sinking or
other analogous fund for the purchase, redemption, defeasance, retirement or other acquisition of
any equity interest of Guarantor, whether now or hereafter outstanding, or make any other
distribution or dividend in respect of any of the foregoing or to any shareholder or equity owner
of Guarantor, either directly or indirectly, whether in cash or property or in obligations of
Guarantor or any of Guarantor’s consolidated Subsidiaries in any calendar year at any time
following the occurrence and during the continuation of an Event of Default.

(s) Disposition of Assets; Liens. No Seller shall create, incur, assume or suffer to
exist any mortgage, pledge, Lien, charge or other encumbrance of any nature whatsoever on any of
the Repurchase Assets, whether real, personal or mixed, now or hereafter owned, other than the
Liens created in connection with the transactions contemplated by this Repurchase Agreement; nor
shall any Seller cause any of the Purchased Mortgage Loans to be sold, pledged, assigned or
transferred except as otherwise contemplated hereby.

(t) Transactions with Affiliates. No Seller shall enter into any transaction,
including, without limitation, the purchase, sale, lease or exchange of property or assets or the
rendering or accepting of any service with any Affiliate, unless such transaction is (a) not
otherwise prohibited in this Repurchase Agreement, (b) in the ordinary course of such Seller’s
business and (c) upon fair and reasonable terms no less favorable to such Seller, as the case may
be, than it would obtain in a comparable arm’s length transaction with a Person which is not an
Affiliate.

(u) ERISA Matters.

(i) No Seller shall permit any event or condition which is described in the definition
of “Event of ERISA Termination” to occur or exist with respect to any Plan or
Multiemployer Plan if such event or condition, together with all other events or conditions
described in the definition of Event of ERISA Termination occurring within the prior 12
months, involves the payment of money by or an incurrence of liability of any Seller or any
ERISA Affiliate thereof, or any combination of such entities in an amount in excess of $2.5
million.

(ii) No Seller shall be an employee benefit plan as defined in Section 3 of Title I of
ERISA, or a plan described in Section 4975(e)(1) of the Code and the Seller shall not use
“plan assets” within the meaning of 29 CFR §2510.3-101 to engage in this Repurchase
Agreement or the Transactions hereunder.

(v) Consolidations, Mergers and Sales of Assets. No Seller shall (i) consolidate or
merge with or into any other Person or (ii) sell, lease or otherwise transfer all or substantially
all of its assets to any other Person; provided that a Seller may merge or consolidate with another
Person if such Seller is the corporation surviving such merger.

(w) Mortgage Loan Reports. Other than with respect to TPO Mortgage Loans, on the
tenth (10th) Business Day or with such greater frequency as requested by the Buyer, the
Sellers will furnish to Buyer monthly electronic Mortgage Loan performance data, including, without
limitation, a Mortgage Loan Schedule, delinquency reports, pool analytic reports and static pool
reports (i.e., delinquency, foreclosure and net charge off reports) and monthly stratification
reports summarizing the characteristics of the Mortgage Loans.

(x) Underwriting Guidelines. In the event that the Sellers make any amendment or
modification to the Underwriting Guidelines, the Sellers shall promptly deliver to Buyer a complete
copy of the amended or modified Underwriting Guidelines.

	 	 	SECTION 13. EVENTS OF DEFAULT

13.01. Event of Default. If any of the following events (each an “Event of
Default”) occur, the Sellers and Buyer shall have the rights set forth in Section 14, as
applicable:

(a) Payment Default. Any Seller shall default in the payment of (i) any amount of
principal or interest payable by it hereunder or under any other Facility Document, or (ii)
Expenses (and such failure to pay Expenses shall continue for more than 3 Business Days following
notice to Sellers by Buyer); or

(b) Representation and Warranty Breach. Any representation, warranty or certification
made or deemed made herein or in any other Facility Document by any Seller or Guarantor or any
certificate furnished to the Buyer pursuant to the provisions hereof or thereof or any information
with respect to the Mortgage Loans furnished in writing by any Seller or Guarantor shall prove to
have been untrue or misleading in any material respect as of the time made or furnished (other than
the representations and warranties set forth in Schedule 1, which shall be considered
solely for the purpose of determining the Market Value of the Purchased Mortgage Loans, unless (i)
such Seller or Guarantor shall have made any such representations and warranties with actual
knowledge that they were materially false or misleading at the time made; or (ii) any such
representations and warranties have been determined in good faith by the Buyer in its sole
discretion to be materially false or misleading on a regular basis); or

(c) Immediate Covenant Default. The failure of any Seller or Guarantor, as
applicable, to perform, comply with or observe any term, covenant or agreement applicable to the
Seller contained in any of Sections 12(a), (h), (j), (p) (q), (r), (s), (t), (u), (v) or (y); or

(d) Additional Covenant Defaults. A Seller or the Guarantor shall fail to observe or
perform any other covenant or agreement contained in this Repurchase Agreement (and not identified
in clause (c) of this Section 13.01) or any other Facility Document, and if such default shall be
capable of being remedied, and such failure to observe or perform shall continue unremedied for a
period of five (5) Business Days; or

(e) Judgments. A judgment or judgments for the payment of money in excess of
$2,500,000 in the aggregate shall be rendered against the Sellers, the Guarantor or any of their
Material Subsidiaries by one or more courts, administrative tribunals or other bodies having
jurisdiction and the same shall not be satisfied, discharged (or provision shall not be made for
such discharge) or bonded, or a stay of execution thereof shall not be procured, within 60 days
from the date of entry thereof; or

(f) Cross-Default. Any “event of default” or any other default which permits a demand
for, or requires, the early repayment of obligations due by any Seller, the Guarantor or their
Material Subsidiaries under any agreement (after the expiration of any applicable grace period
under any such agreement) relating to any Indebtedness in excess of $10 million of such Seller,
Guarantor or any Material Subsidiary, as applicable; or

(g) Insolvency Event. An Insolvency Event shall have occurred with respect to any
Seller or the Guarantor; or

(h) Enforceability. Any Person (other than Buyer) shall contest the validity,
enforceability, perfection or priority of any Lien granted pursuant thereto, or any party thereto
(other than Buyer) shall seek to disaffirm, terminate, limit or reduce its obligations hereunder;
or

(i) Liens. A Seller shall grant, or suffer to exist, any Lien on any Repurchase Asset
(except any Lien in favor of the Buyer); or at least one of the following fails to be true (A) the
Repurchase Assets shall have been sold to the Buyer, or (B) the Liens contemplated hereby are first
priority perfected Liens on any Repurchase Assets in favor of the Buyer or shall be Liens in favor
of any Person other than the Buyer; or

(j) Material Adverse Change. Any material adverse change in the Property, business,
financial condition or operations of (i) Guarantor, Sellers and their Material Subsidiaries taken
as a whole or (ii) any Seller or Guarantor shall occur, in each case as determined by Buyer in its
sole good faith discretion, or any other condition shall exist which, in Buyer’s sole good faith
discretion, constitutes a material impairment of a Seller’s or the Guarantor’s ability to perform
its obligations under this Repurchase Agreement or any other Facility Document.

(k) ERISA. (i) any Person shall engage in any “prohibited transaction” (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any
“accumulated funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan or any Lien in favor of the PBGC or a Plan shall arise
on the assets of a Seller or any ERISA Affiliate, (iii) a Reportable Event shall occur with respect
to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to
administer or to terminate, any Plan, which Reportable Event or commencement of proceedings or
appointment of a trustee is, in the reasonable opinion of the Buyer, likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any Plan shall terminate for
purposes of Title IV of ERISA, (v) a Seller or any ERISA Affiliate shall, or in the reasonable
opinion of the Buyer is likely to, incur any liability in connection with a withdrawal from, or the
insolvency or reorganization of, a Multiemployer Plan or (vi) any other event or condition shall
occur or exist with respect to a Plan; and in each case in clauses (i) through (vi) above, such
event or condition, together with all other such events or conditions, if any, could reasonably be
expected to have a Material Adverse Effect; or

(l) Change of Control. A Change of Control of a Seller or the Guarantor shall have
occurred.

(m) Guarantor Breach. A breach by Guarantor of any material representation, warranty
or covenant set forth in the Guaranty or any other Facility Document, any “event of default” by
Guarantor under the Guaranty, any repudiation of the Guaranty by the Guarantor, or if the Guaranty
is not enforceable against the Guarantor.

13.02 Termination Event. (a) If the following event (a “Termination Event”)
occurs, the Buyer shall have the rights set forth in Section 13.02(b):

(i) there shall be a material adverse effect on the prospects of (i) Guarantor, Sellers
and their Material Subsidiaries taken as a whole or (ii) any Seller or Guarantor, in each
case as determined by Buyer in its sole good faith discretion.

(b) Upon the occurrence of a Termination Event, the Buyer shall have the right, in its sole
discretion, to immediately terminate the Buyer’s obligation to enter into any additional
Transactions. The Seller shall repurchase any Purchased Mortgage Loans subject to a Transaction
hereunder within five (5) Business Days following receipt of a request therefor from Buyer
following the occurrence of a Termination Event.

	 	 	SECTION 14. REMEDIES

(a) If an Event of Default occurs with respect to any Seller, the following rights and
remedies are available to the Buyer; provided, that an Event of Default shall be deemed to be
continuing unless expressly waived by the Buyer in writing.

(i) At the option of the Buyer, exercised by written notice to the Sellers (which
option shall be deemed to have been exercised, even if no notice is given, immediately upon
the occurrence of an Insolvency Event of a Seller), the Repurchase Date for each Transaction
hereunder, if it has not already occurred, shall be deemed immediately to occur. The Buyer
shall (except upon the occurrence of an Insolvency Event of a Seller) give notice to the
Sellers of the exercise of such option as promptly as practicable.

(ii) If the Buyer exercises or is deemed to have exercised the option referred to in
subsection (a)(i) of this Section,

(A) the Sellers’ obligations in such Transactions to repurchase all Purchased
Mortgage Loans, at the Repurchase Price therefor on the Repurchase Date determined
in accordance with subsection (a)(i) of this Section, (1) shall thereupon become
immediately due and payable and (2) all Income paid after such exercise or deemed
exercise shall be retained by the Buyer and applied to the aggregate unpaid
Repurchase Price and any other amounts owed by the Sellers hereunder;

(B) to the extent permitted by applicable law, the Repurchase Price with
respect to each such Transaction shall be increased by the aggregate amount obtained
by daily application of, on a 360 day per year basis for the actual number of days
during the period from and including the date of the exercise or deemed exercise of
such option to but excluding the date of payment of the Repurchase Price as so
increased, (x) the Post-Default Rate in effect following an Event of Default to (y)
the Repurchase Price for such Transaction as of the Repurchase Date as determined
pursuant to subsection (a)(i) of this Section (decreased as of any day by (i) any
amounts actually in the possession of Buyer pursuant to clause (C) of this
subsection, and (ii) any proceeds from the sale of Purchased Mortgage Loans applied
to the Repurchase Price pursuant to subsection (a)(iv) of this Section; and

(C) all Income actually received by the Buyer pursuant to Section 5 (excluding
any Late Payment Fees paid pursuant to Section 5(a)) shall be applied to the
aggregate unpaid Repurchase Price owed by the Seller.

(iii) Upon the occurrence of one or more Events of Default, the Buyer shall have the
right to obtain physical possession of all files of the Sellers relating to the Purchased
Mortgage Loans and the Repurchase Assets and all documents relating to the Purchased
Mortgage Loans which are then or may thereafter come into the possession of the Sellers or
any third party acting for the Sellers and the Sellers shall deliver to the Buyer such
assignments as the Buyer shall request. The Buyer shall be entitled to specific performance
of all agreements of the Sellers contained in the Facility Documents.

(iv) At any time on the Business Day following notice to the Sellers (which notice may
be the notice given under subsection (a)(i) of this Section), in the event the Sellers have
not repurchased all Purchased Mortgage Loans, the Buyer may (A) immediately sell, without
demand or further notice of any kind, at a public or private sale and at such price or
prices as the Buyer may deem satisfactory any or all Purchased Mortgage Loans and the
Repurchase Assets subject to a such Transactions hereunder and apply the proceeds thereof to
the aggregate unpaid Repurchase Prices and any other amounts owing by the Sellers hereunder
or (B) in its sole discretion elect, in lieu of selling all or a portion of such Purchased
Mortgage Loans, to give the Sellers credit for such Purchased Mortgage Loans and the
Repurchase Assets in an amount equal to the Market Value of the Purchased Mortgage Loans
against the aggregate unpaid Repurchase Price and any other amounts owing by the Sellers
hereunder. The proceeds of any disposition of Purchased Mortgage Loans and the Repurchase
Assets shall be applied as determined by Buyer in its sole discretion.

(v) The Sellers shall be liable to Buyer for (i) the amount of all reasonable legal or
other expenses (including, without limitation, all costs and expenses of Buyer in connection
with the enforcement of this Repurchase Agreement or any other agreement evidencing a
Transaction, whether in action, suit or litigation or bankruptcy, insolvency or other
similar proceeding affecting creditors’ rights generally, further including, without
limitation, the reasonable fees and expenses of counsel incurred in connection with or as a
result of an Event of Default, (ii) damages in an amount equal to the cost (including all
fees, expenses and commissions) of entering into replacement transactions and entering into
or terminating hedge transactions in connection with or as a result of an Event of Default,
and (iii) any other loss, damage, cost or expense directly arising or resulting from the
occurrence of an Event of Default in respect of a Transaction.

(vi) The Buyer shall have, in addition to its rights hereunder, any rights otherwise
available to it under any other agreement or applicable law.

(b) The Buyer may exercise one or more of the remedies available hereunder immediately upon
the occurrence of an Event of Default and at any time thereafter without notice to the Sellers.
All rights and remedies arising under this Repurchase Agreement as amended from time to time
hereunder are cumulative and not exclusive of any other rights or remedies which Buyer may have.

(c) The Buyer may enforce its rights and remedies hereunder without prior judicial process or
hearing, and each Seller hereby expressly waives any defenses the Sellers might otherwise have to
require Buyer to enforce its rights by judicial process. Each Seller also waives any defense
(other than a defense of payment or performance) such Seller might otherwise have arising from the
use of nonjudicial process, enforcement and sale of all or any portion of the Repurchase Assets, or
from any other election of remedies. Each Seller recognizes that nonjudicial remedies are
consistent with the usages of the trade, are responsive to commercial necessity and are the result
of a bargain at arm’s length.

(d) To the extent permitted by applicable law, the Sellers shall be liable to the Buyer for
interest on any amounts owing by the Sellers hereunder, from the date the Sellers become liable for
such amounts hereunder until such amounts are (i) paid in full by the Sellers or (ii) satisfied in
full by the exercise of the Buyer’s rights hereunder. Interest on any sum payable by the Sellers
to the Buyer under this paragraph 14(d) shall be at a rate equal to the Post-Default Rate.

	 	 	SECTION 15. INDEMNIFICATION AND EXPENSES; RECOURSE

(a) The Sellers agree to hold the Buyer, and its Affiliates and their officers, directors,
employees, agents and advisors (each an “Indemnified Party”) harmless from and indemnify
any Indemnified Party against all third-party liabilities, losses, damages, judgments, costs and
expenses of any kind which may be imposed on, incurred by or asserted against such Indemnified
Party (collectively, “Costs”), relating to or arising out of this Repurchase Agreement, any
other Facility Document or any transaction contemplated hereby or thereby, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of, this Repurchase
Agreement, any other Facility Document or any transaction contemplated hereby or thereby, that, in
each case, results from anything other than the Indemnified Party’s gross negligence or willful
misconduct. Without limiting the generality of the foregoing, the Sellers agree to hold any
Indemnified Party harmless from and indemnify such Indemnified Party against all Costs with respect
to all Mortgage Loans relating to or arising out of any taxes incurred or assessed in connection
with the ownership of the Mortgage Loans, that, in each case, results from anything other than the
Indemnified Party’s gross negligence or willful misconduct. In any suit, proceeding or action
brought by an Indemnified Party in connection with any Mortgage Loan for any sum owing thereunder,
or to enforce any provisions of any Mortgage Loan, the Sellers will save, indemnify and hold such
Indemnified Party harmless from and against all expense, loss or damage suffered by reason of any
defense, set off, counterclaim, recoupment or reduction or liability whatsoever of the account
debtor or obligor thereunder, arising out of a breach by any Seller of any obligation thereunder or
arising out of any other agreement, indebtedness or liability at any time owing to or in favor of
such account debtor or obligor or its successors from the Sellers. The Sellers also agree to
reimburse an Indemnified Party as and when billed by such Indemnified Party for all the Indemnified
Party’s costs and expenses incurred in connection with the enforcement or the preservation of the
Buyer’s rights under this Repurchase Agreement, any other Facility Document or any transaction
contemplated hereby or thereby, including without limitation the reasonable fees and disbursements
of its counsel.

(b) The Sellers agree to pay as and when billed by the Buyer all of the out-of-pocket costs
and expenses incurred by the Buyer in connection with the development, preparation and execution
of, and any amendment, supplement or modification to, this Repurchase Agreement, any other Facility
Document or any other documents prepared in connection herewith or therewith. The Sellers agree to
pay as and when billed by the Buyer all of the reasonable out-of-pocket costs and expenses incurred
in connection with the consummation and administration of the transactions contemplated hereby and
thereby including without limitation filing fees and all the reasonable fees, disbursements and
expenses of counsel to the Buyer which amount shall be deducted from the Purchase Price paid for
the first Transaction hereunder. Subject to the limitations set forth in Section 17 hereof, the
Sellers agree to pay the Buyer all the reasonable out of pocket due diligence, inspection, testing
and review costs and expenses incurred by the Buyer with respect to Mortgage Loans submitted by the
Sellers for purchase under this Repurchase Agreement, including, but not limited to, those out of
pocket costs and expenses incurred by the Buyer pursuant to Sections 15(b) and 17 hereof.

(c) The obligations of the Sellers from time to time to pay the Repurchase Price, the Periodic
Advance Repurchase Payments, and all other amounts due under this Repurchase Agreement shall be
full recourse obligations of the Sellers.

(d) Each Seller shall be jointly and severally liable for the full, complete an punctual
performance and satisfaction of all obligations of either Seller under this Repurchase Agreement.
Accordingly, each Seller waives any and all notice of creation, renewal, extension or accrual of
any of the Obligations and notice of or proof of reliance by Buyer upon such Seller’s joint and
several liability. Each Seller waives diligence, presentment, protest, demand for payment and
notice of default or nonpayment to or upon such Seller with respect to the Obligations. When
pursuing its rights and remedies hereunder against either Seller, Buyer may, but shall be under no
obligation, to pursue such rights and remedies hereunder against either Seller or any other Person
or against any collateral security for the Obligations or any right of offset with respect thereto,
and any failure by Buyer to pursue such other rights or remedies or to collect any payments from
such Seller or any such other Person to realize upon any such collateral security or to exercise
any such right of offset, or any release of such Seller or any such other Person or any such
collateral security, or right of offset, shall not relieve such Seller of any liability hereunder,
and shall not impair or affect the rights and remedies, whether express, implied or available as a
matter of law, of Buyer against such Seller.

	 	 	SECTION 16. SERVICING

(a) The Sellers, on Buyer’s behalf, shall contract with Servicer to, or if a Seller is the
Servicer, such Seller shall, service the Mortgage Loans consistent with the degree of skill and
care that such Seller customarily requires with respect to similar Mortgage Loans owned or managed
by it and in accordance with Accepted Servicing Practices. The Servicer shall (i) comply with all
applicable Federal, State and local laws and regulations, (ii) maintain all state and federal
licenses necessary for it to perform its servicing responsibilities hereunder and (iii) not impair
the rights of Buyer in any Mortgage Loans or any payment thereunder. Buyer may terminate the
servicing of any Mortgage Loan with the then existing servicer in accordance with Section 16(e)
hereof.

(b) The Sellers shall cause the Servicer to hold or cause to be held all escrow funds
collected by the Sellers with respect to any Purchased Mortgage Loans in trust accounts and shall
apply the same for the purposes for which such funds were collected.

(c) The Sellers shall cause the Servicer to deposit all collections received by the Sellers on
account of the Purchased Mortgage Loans in the Collection Account no later than two Business Days
following receipt.

(d) The Sellers shall provide promptly to Buyer (i) a Servicer Notice addressed to and agreed
to by the Servicer of the related Purchased Mortgage Loans, advising such Servicer of such matters
as Buyer may reasonably request, including, without limitation, recognition by the Servicer of
Buyer’s interest in such Purchased Mortgage Loans and the Servicer’s agreement that upon receipt of
notice of an Event of Default from Buyer, it will follow the instructions of Buyer with respect to
the Purchased Mortgage Loans and any related Income with respect thereto.

(e) Upon the occurrence of a Default or Event of Default hereunder or a material default under
the Servicing Agreement, Buyer shall have the right to immediately terminate the Servicer’s right
to service the Purchased Mortgage Loans without payment of any penalty or termination fee. The
Sellers shall cooperate in transferring the servicing of the Purchased Mortgage Loans to a
successor servicer appointed by Buyer in its sole discretion.

(f) If any Seller should discover that, for any reason whatsoever, any entity responsible to
the Sellers by contract for managing or servicing any such Purchased Mortgage Loan has failed to
perform fully the Sellers’ obligations under the Facility Documents or any of the obligations of
such entities with respect to the Purchased Mortgage Loans, the Sellers shall promptly notify
Buyer.

	 	 	SECTION 17. DUE DILIGENCE

(a) Each Seller acknowledges that Buyer has the right to perform continuing due diligence
reviews with respect to the Mortgage Loans, the Underlying Transactions, the TPO Mortgage Loans and
the Sellers, for purposes of verifying compliance with the representations, warranties and
specifications made hereunder, or otherwise, and each Seller agrees that upon reasonable prior
notice (unless an Event of Default shall have occurred, in which case no notice is required) to the
Sellers, Buyer or its authorized representatives will be permitted during normal business hours to
examine, inspect, and make copies and extracts of, the Mortgage Files, the Underlying Transactions
or TPO Mortgage Loans and any and all documents, records, agreements, instruments or information
relating to such Mortgage Loans in the possession or under the control of the Sellers and/or the
Custodian. The Sellers also shall make available to Buyer a knowledgeable financial or accounting
officer for the purpose of answering questions respecting the Mortgage Files, Mortgage Loans, the
Underlying Transactions and the TPO Mortgage Loans.. Without limiting the generality of the
foregoing, each Seller acknowledges that Buyer may purchase Mortgage Loans, the Underlying
Transactions and TPO Mortgage Loans from the Sellers based solely upon the information provided by
the Sellers to Buyer in the Purchased Mortgage Loan Schedule and the representations, warranties
and covenants contained herein, and that Buyer, at its option, has the right at any time to conduct
a partial or complete due diligence review on some or all of the Mortgage Loans, the Underlying
Transactions and/or TPO Mortgage Loans purchased in a Transaction, including, without limitation,
ordering broker’s price opinions, new credit reports and new appraisals on the related Mortgaged
Properties and otherwise re-generating the information used to originate such Mortgage Loan,
Underlying Transaction or TPO Mortgage Loan. Buyer may underwrite such Mortgage Loans, Underlying
Transaction or TPO Mortgage Loan itself or engage a mutually agreed upon third party underwriter to
perform such underwriting. The Sellers agree to cooperate with Buyer and any third party
underwriter in connection with such underwriting, including, but not limited to, providing Buyer
and any third party underwriter with access to any and all documents, records, agreements,
instruments or information relating to such Mortgage Loans, the Underlying Transactions and TPO
Mortgage Loans in the possession, or under the control, of the Sellers. The Sellers further agree
that the Sellers shall pay all out-of-pocket costs and expenses incurred by Buyer in connection
with Buyer’s activities pursuant to this Section 17 (“Due Diligence Costs”); provided, that
such Due Diligence Costs shall not exceed the Due Diligence Cap per calendar year unless a Default
or Event of Default shall have occurred and be continuing, in which event Buyer shall have the
right to perform due diligence, at the sole expense of Sellers without regard to the dollar
limitation set forth herein.

	 	 	SECTION 18. ASSIGNABILITY

The rights and obligations of the parties under this Repurchase Agreement and under any
Transaction shall not be assigned by any Seller without the prior written consent of Buyer.
Subject to the foregoing, this Repurchase Agreement and any Transactions shall be binding upon and
shall inure to the benefit of the parties and their respective successors and assigns. Nothing in
this Repurchase Agreement express or implied, shall give to any Person, other than the parties to
this Repurchase Agreement and their successors hereunder, any benefit of any legal or equitable
right, power, remedy or claim under this Repurchase Agreement. Buyer may from time to time assign
all or a portion of its rights and obligations under this Repurchase Agreement and the Facility
Documents to (i) any Affiliate or (ii) upon Sellers’ prior written consent (which shall not be
unreasonably withheld) or following the occurrence and continuance of an Event of Default, to any
Person other than an Affiliate; in each case pursuant to an executed assignment and acceptance by
Buyer and assignee (“Assignment and Acceptance”), specifying the percentage or portion of
such rights and obligations assigned. Upon such assignment, (a) such assignee shall be a party
hereto and to each Facility Document to the extent of the percentage or portion set forth in the
Assignment and Acceptance, and shall succeed to the applicable rights and obligations of Buyer
hereunder, and (b) Buyer shall, to the extent that such rights and obligations have been so
assigned by it be released from its obligations hereunder and under the Facility Documents. Unless
otherwise stated in the Assignment and Acceptance, the Sellers shall continue to take directions
solely from Buyer unless otherwise notified by Buyer in writing. Buyer may distribute to any
prospective assignee any document or other information delivered to Buyer by Sellers.

The Buyer may sell participations to one or more Persons in or to all or a portion of its
rights and obligations under this Repurchase Agreement; provided, however, that (i) the Buyer’s
obligations under this Repurchase Agreement shall remain unchanged, (ii) the Buyer shall remain
solely responsible to the other parties hereto for the performance of such obligations; and (iii)
the Sellers shall continue to deal solely and directly with the Buyer in connection with the
Buyer’s rights and obligations under this Repurchase Agreement and the other Facility Documents
except as provided in Section 7.

The Buyer may, in connection with any assignment or participation or proposed assignment or
participation pursuant to this Section 18, disclose to the assignee or participant or proposed
assignee or participant, as the case may be, any information relating to the Sellers or any of
their Subsidiaries or to any aspect of the Transactions that has been furnished to the Buyer by or
on behalf of the Sellers or any of their Subsidiaries; provided that such assignee or participant
agrees in a writing reasonably acceptable to Sellers to hold such information subject to the
confidentiality provisions of this Repurchase Agreement.

In the event the Buyer assigns all or a portion of its rights and obligations under this
Repurchase Agreement, the parties hereto agree to negotiate in good faith an amendment to this
Repurchase Agreement to add agency provisions similar to those included in repurchase agreements
for similar syndicated repurchase facilities.

	 	 	SECTION 19. TRANSFER AND MAINTENANCE OF REGISTER.

(a) Subject to acceptance and recording thereof pursuant to paragraph (b) of this Section 19,
from and after the effective date specified in each Assignment and Acceptance the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment
and Acceptance, have the rights and obligations of the Buyer under this Agreement. Any assignment
or transfer by the Buyer of rights or obligations under this Agreement that does not comply with
this Section 19 shall be treated for purposes of this Agreement as a sale by such Buyer of a
participation in such rights and obligations in accordance with Section 19(b) hereof.

(b) The Sellers shall maintain a register (the “Register”) on which it will record the
Buyer’s rights hereunder, and each Assignment and Acceptance and participation. The Register shall
include the names and addresses of the Buyer (including all assignees, successors and participants)
and the percentage or portion of such rights and obligations assigned. Failure to make any such
recordation, or any error in such recordation shall not affect the Sellers’ obligations in respect
of such rights. If the Buyer sells a participation in its rights hereunder, it shall provide
Sellers, or maintain as agent of Sellers, the information described in this paragraph and permit
Sellers to review such information as reasonably needed for Sellers to comply with its obligations
under this Agreement or under any applicable Requirement of Law.

	 	 	SECTION 20. HYPOTHECATION OR PLEDGE OF PURCHASED MORTGAGE LOANS

Title to all Purchased Mortgage Loans and Repurchase Assets shall pass to Buyer and Buyer
shall have free and unrestricted use of all Purchased Mortgage Loans. Nothing in this Repurchase
Agreement shall preclude the Buyer from engaging in repurchase transactions with the Purchased
Mortgage Loans or otherwise pledging, repledging, transferring, hypothecating, or rehypothecating
the Purchased Mortgage Loans. Nothing contained in this Repurchase Agreement shall obligate the
Buyer to segregate any Purchased Mortgage Loans delivered to the Buyer by the Sellers.

	 	 	SECTION 21. TAX TREATMENT

Each party to this Repurchase Agreement acknowledges that it is its intent for purposes of
U.S. federal, state and local income and franchise taxes, to treat each Transaction as indebtedness
of the applicable Seller that is secured by the Purchased Mortgage Loans and that the Purchased
Mortgage Loans are owned by the applicable Sellers in the absence of a Default by such Seller. All
parties to this Repurchase Agreement agree to such treatment and agree to take no action
inconsistent with this treatment, unless required by law.

	 	 	SECTION 22. SET-OFF

In addition to any rights and remedies of the Buyer hereunder and by law, the Buyer shall have
the right, without prior notice to the Sellers or the Guarantor, any such notice being expressly
waived by the Sellers and the Guarantor to the extent permitted by applicable law, upon any amount
becoming due and payable by the Sellers and the Guarantor hereunder (whether at the stated
maturity, by acceleration or otherwise) to set-off and appropriate and apply against such amount
any and all deposits (general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or owing by the Buyer or
any Affiliate thereof to or for the credit or the account of the Sellers, the Guarantor or any
Affiliate thereof. The Buyer agrees promptly to notify the Sellers and the Guarantor after any
such set off and application made by the Buyer; provided that the failure to give such notice shall
not affect the validity of such set off and application.

	 	 	SECTION 23. TERMINABILITY

Each representation and warranty made or deemed to be made by entering into a Transaction
herein or pursuant hereto shall survive the making of such representation and warranty, and the
Buyer shall not be deemed to have waived any Default that may arise because any such representation
or warranty shall have proved to be false or misleading, notwithstanding that the Buyer may have
had notice or knowledge or reason to believe that such representation or warranty was false or
misleading at the time the Transaction was made. Notwithstanding any such termination or the
occurrence of an Event of Default, all of the representations and warranties and covenants
hereunder shall continue and survive. The obligations of the Sellers under Section 15 hereof shall
survive the termination of this Repurchase Agreement.

	 	 	SECTION 24. NOTICES AND OTHER COMMUNICATIONS

Except as otherwise expressly permitted by this Repurchase Agreement, all notices, requests
and other communications provided for herein (including without limitation any modifications of, or
waivers, requests or consents under, this Repurchase Agreement) shall be given or made in writing
(including without limitation by telecopy) delivered to the intended recipient at the “Address for
Notices” specified below its name on the signature pages hereof or thereof); or, as to any party,
at such other address as shall be designated by such party in a written notice to each other party.
Except as otherwise provided in this Repurchase Agreement and except for notices given under
Section 3 (which shall be effective only on receipt), all such communications shall be deemed to
have been duly given when transmitted by telecopy or personally delivered or, in the case of a
mailed notice, upon receipt, in each case given or addressed as aforesaid.

	 	 	SECTION 25. ENTIRE AGREEMENT; SEVERABILITY; SINGLE AGREEMENT

This Repurchase Agreement, together with the Facility Documents, constitute the entire
understanding between Buyer and the Sellers with respect to the subject matter they cover and shall
supersede any existing agreements between the parties containing general terms and conditions for
repurchase transactions involving Purchased Mortgage Loans. By acceptance of this Repurchase
Agreement, Buyer and each Seller acknowledge that they have not made, and are not relying upon, any
statements, representations, promises or undertakings not contained in this Repurchase Agreement.
Each provision and agreement herein shall be treated as separate and independent from any other
provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any
such other provision or agreement.

Buyer and each Seller acknowledge that, and have entered hereinto and will enter into each
Transaction hereunder in consideration of and in reliance upon the fact that, all Transactions
hereunder constitute a single business and contractual relationship and that each has been entered
into in consideration of the other Transactions. Accordingly, each of Buyer and each Seller agrees
(i) to perform all of its obligations in respect of each Transaction hereunder, and that a default
in the performance of any such obligations shall constitute a default by it in respect of all
Transactions hereunder, (ii) that each of them shall be entitled to set off claims and apply
property held by them in respect of any Transaction against obligations owing to them in respect of
any other Transaction hereunder; (iii) that payments, deliveries, and other transfers made by
either of them in respect of any Transaction shall be deemed to have been made in consideration of
payments, deliveries, and other transfers in respect of any other Transactions hereunder, and the
obligations to make any such payments, deliveries, and other transfers may be applied against each
other and netted and (iv) to promptly provide notice to the other after any such set off or
application.

	 	 	SECTION 26. GOVERNING LAW

THIS REPURCHASE AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

	 	 	SECTION 27. SUBMISSION TO JURISDICTION; WAIVERS

EACH OF BUYER, GUARANTOR AND EACH SELLER HEREBY IRREVOCABLY AND UNCONDITIONALLY:

(i) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
THIS REPURCHASE AGREEMENT AND THE OTHER FACILITY DOCUMENTS, OR FOR RECOGNITION AND
ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE PERSONAL JURISDICTION OF
THE COURTS OF THE STATE OF NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR
THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;

(ii) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO
THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING
WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

(iii) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED
BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM
OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH
OTHER ADDRESS OF WHICH THE BUYER SHALL HAVE BEEN NOTIFIED; AND

(iv) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

(v) THE BUYER, GUARANTOR AND EACH SELLER HEREBY IRREVOCABLY WAIVE, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS REPURCHASE AGREEMENT, ANY OTHER FACILITY
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

	 	 	SECTION 28. NO WAIVERS, ETC.

No failure on the part of the Buyer to exercise and no delay in exercising, and no course of
dealing with respect to, any right, power or privilege under any Facility Document shall operate as
a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under
any Facility Document preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The remedies provided herein are cumulative and not exclusive of any
remedies provided by law. An Event of Default shall be deemed to be continuing unless expressly
waived by the Buyer in writing.

	 	 	SECTION 29. NETTING

If the Buyer and the Sellers are “financial institutions” as now or hereinafter defined in
Section 4402 of Title 12 of the United States Code (“Section 4402”) and any rules or regulations
promulgated thereunder,

(a) All amounts to be paid or advanced by one party to or on behalf of the other under this
Repurchase Agreement or any Transaction hereunder shall be deemed to be “payment obligations” and
all amounts to be received by or on behalf of one party from the other under this Repurchase
Agreement or any Transaction hereunder shall be deemed to be “payment entitlements” within the
meaning of Section 4402, and this Repurchase Agreement shall be deemed to be a “netting contract”
as defined in Section 4402.

(b) The payment obligations and the payment entitlements of the parties hereto pursuant to
this Repurchase Agreement and any Transaction hereunder shall be netted as follows. In the event
that either party (the “Defaulting Party”) shall fail to honor any payment obligation under
this Repurchase Agreement or any Transaction hereunder, the other party (the “Nondefaulting
Party”) shall be entitled to reduce the amount of any payment to be made by the Nondefaulting
Party to the Defaulting Party by the amount of the payment obligation that the Defaulting Party
failed to honor.

	 	 	SECTION 30. CONFIDENTIALITY

The Buyer, the Guarantor and each Seller hereby acknowledge and agree that all written or
computer-readable information provided by one party to any other regarding the terms set forth in
any of the Facility Documents or the Transactions contemplated thereby (the “Confidential
Terms”) shall be kept confidential and shall not be divulged to any party without the prior
written consent of such other party except to the extent that (i) it is necessary to do so in
working with legal counsel, auditors, taxing authorities or other governmental agencies or
regulatory bodies or in order to comply with any applicable federal or state laws, (ii) any of the
Confidential Terms are in the public domain other than due to a breach of this covenant, or (iii)
in the event of an Event of Default the Buyer determines such information to be necessary to
disclose in connection with the marketing and sales of the Purchased Mortgage Loans or otherwise to
enforce or exercise the Buyer’s rights hereunder; provided that (A) the Buyer shall use reasonable
efforts to obtain from the recipient of such information a confidentiality agreement prohibiting
the further disclosure of such confidential information or the use thereof for any purpose other
than the evaluation of a possible purchase of the Mortgage Loans or the enforcement or exercise of
Buyer’s rights hereunder and (B) if Buyer is not able to obtain such an agreement the Buyer shall
give Seller not less than three (3) Business Day’s notice of the information that it intends to
disclose so that the Seller and its Affiliates can ensure compliance with Regulation FD.
Notwithstanding the foregoing or anything to the contrary contained herein or in any other Facility
Document, the parties hereto may disclose to any and all Persons, without limitation of any kind,
the federal, state and local tax treatment of the Transactions, any fact relevant to understanding
the federal, state and local tax treatment of the Transactions, and all materials of any kind
(including opinions or other tax analyses) relating to such federal, state and local tax treatment
and that may be relevant to understanding such tax treatment; provided that Sellers and Guarantor
may not disclose the name of or identifying information with respect to Buyer or any pricing terms
(including, without limitation, the Pricing Rate, Commitment Fee, Non-Utilization Fee, Purchase
Price Percentage and Purchase Price) or other nonpublic business or financial information
(including any sublimits and financial covenants) that is unrelated to the federal, state and local
tax treatment of the Transactions and is not relevant to understanding the federal, state and local
tax treatment of the Transactions, without the prior written consent of the Buyer. The provisions
set forth in this Section 30 shall survive the termination of this Repurchase Agreement.

	 	 	SECTION 31. INTENT

(a) The parties recognize that each Transaction is a “repurchase agreement” as that term is
defined in Section 101 of Title 11 of the United States Code, as amended (except insofar as the
type of Mortgage Loans subject to such Transaction or the term of such Transaction would render
such definition inapplicable), and a “securities contract” as that term is defined in Section 741
of Title 11 of the United States Code, as amended (except insofar as the type of assets subject to
such Transaction would render such definition inapplicable).

(b) It is understood that Buyer’s right to liquidate Mortgage Loans delivered to it in
connection with Transactions hereunder or to exercise any other remedies pursuant to Section 14
hereof is a contractual right to liquidate such Transaction as described in Sections 555 and 559 of
Title 11 of the United States Code, as amended.

(c) The parties agree and acknowledge that if a party hereto is an “insured depository
institution,” as such term is defined in the Federal Deposit Insurance Act, as amended
(“FDIA”), then each Transaction hereunder is a “qualified financial contract,” as that term
is defined in FDIA and any rules, orders or policy statements thereunder (except insofar as the
type of assets subject to such Transaction would render such definition inapplicable).

(d) It is understood that this Repurchase Agreement constitutes a “netting contract” as
defined in and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of
1991 (“FDICIA”) and each payment entitlement and payment obligation under any Transaction
hereunder shall constitute a “covered contractual payment entitlement” or “covered contractual
payment obligation”, respectively, as defined in and subject to FDICIA (except insofar as one or
both of the parties is not a “financial institution” as that term is defined in FDICIA).

(e) This Repurchase Agreement is intended to be a “repurchase agreement” and a “securities
contract,” within the meaning of Section 555 and Section 559 under the Bankruptcy Code.

	 	 	SECTION 32. DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

The parties acknowledge that they have been advised that:

(a) in the case of Transactions in which one of the parties is a broker or dealer registered
with the Securities and Exchange Commission (“SEC”) under Section 15 of the Securities
Exchange Act of 1934 (“1934 Act”), the Securities Investor Protection Corporation has taken
the position that the provisions of the Securities Investor Protection Act of 1970 (“SIPA”)
do not protect the other party with respect to any Transaction hereunder;

(b) in the case of Transactions in which one of the parties is a government securities broker
or a government securities dealer registered with the SEC under Section 15C of the 1934 Act, SIPA
will not provide protection to the other party with respect to any Transaction hereunder; and

(c) in the case of Transactions in which one of the parties is a financial institution, funds
held by the financial institution pursuant to a Transaction hereunder are not a deposit and
therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union
Share Insurance Fund, as applicable.

	 	 	SECTION 33. AUTHORIZATIONS

Any of the persons whose signatures and titles appear on Schedule 4 are authorized, acting
singly, to act for Sellers or Buyer, as the case may be, under this Repurchase Agreement.

	 	 	SECTION 34. ACKNOWLEDGEMENT OF ANTI-PREDATORY LENDING POLICIES.

Buyer has in place internal policies and procedures that expressly prohibit its purchase of
any High Cost Mortgage Loan.

	 	 	SECTION 35. MISCELLANEOUS

(a) Counterparts. This Repurchase Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Repurchase Agreement by signing any such counterpart.

(b) Captions. The captions and headings appearing herein are for included solely for
convenience of reference and are not intended to affect the interpretation of any provision of this
Repurchase Agreement.

(c) Acknowledgment. Each of Guarantor and each Seller hereby acknowledges that:

(i) it has been advised by counsel in the negotiation, execution and delivery of this
Repurchase Agreement and the other Facility Documents;

(ii) the Buyer has no fiduciary relationship to any Seller or the Guarantor; and

(iii) no joint venture exists between the Buyer and the Guarantor or between the Buyer
and any Seller.

(d) Documents Mutually Drafted. Each Seller, the Guarantor and the Buyer agree that
this Agreement each other Facility Document prepared in connection with the Transactions set forth
herein have been mutually drafted and negotiated by each party, and consequently such documents
shall not be construed against either party as the drafter thereof.

	 	 	SECTION 36. GENERAL INTERPRETIVE PRINCIPLES

For purposes of this Repurchase Agreement, except as otherwise expressly provided or unless
the context otherwise requires:

(a) the terms defined in this Repurchase Agreement have the meanings assigned to them in this
Repurchase Agreement and include the plural as well as the singular, and the use of any gender
herein shall be deemed to include the other gender;

(b) accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles;

(c) references herein to “Articles”, “Sections”, “Subsections”, “Paragraphs”, and other
subdivisions without reference to a document are to designated Articles, Sections, Subsections,
Paragraphs and other subdivisions of this Repurchase Agreement;

(d) a reference to a Subsection without further reference to a Section is a reference to such
Subsection as contained in the same Section in which the reference appears, and this rule shall
also apply to Paragraphs and other subdivisions;

(e) the words “herein”, “hereof”, “hereunder” and other words of similar import refer to this
Repurchase Agreement as a whole and not to any particular provision;

(f) the term “include” or “including” shall mean without limitation by reason of enumeration;
and

(g) all times specified herein or in any other Facility Document (unless expressly specified
otherwise) are local times in New York, New York unless otherwise stated.

[THIS SPACE INTENTIONALLY LEFT BLANK]

1

IN WITNESS WHEREOF, the parties have entered into this Repurchase Agreement as of the
date set forth above.

BUYER:

GOLDMAN SACHS MORTGAGE COMPANY,

a New York Limited Partnership

By: GOLDMAN SACHS REAL ESTATE FUNDING CORP.,

a New York corporation,

as General Partner

By: /s/ Jonathan Sobel

Name: Jonathan Sobel

Title: Authorized Signatory

Address for Notices:

Goldman Sachs Mortgage Company

85 Broad Street

New York, NY 10004

Attention: Marc Flamino

Telecopier No.: 212-902-1691

Telephone No.: 212-357-4727

SELLERS:

NEW CENTURY WAREHOUSE CORPORATION

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: President

Address for Notices:

18400 Von Karman Ave., Suite 1000

Irvine, CA 92612

Attention: Kevin J. Dwyer

Telecopier No.: (949) 440-7033

Telephone No: (949) 225-7808

NEW CENTURY MORTGAGE CORPORATION

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: Executive Vice President

Address for Notices:

18400 Von Karman Ave., Suite 1000

Irvine, CA 92612

Attention: Kevin J. Dwyer

Telecopier No.: (949) 440-7033

Telephone No: (949) 225-7808

GUARANTOR:

NEW CENTURY FINANCIAL CORPORATION

By:  /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: Executive Vice President

By: /s/ Brad A. Morrice

Name: Brad A. Morrice

Title: Vice Chairman, President and COO

Address for Notices:

18400 Von Karman Ave., Suite 1000

Irvine, CA 92612

Attention: Kevin J. Dwyer

Telecopier No.: (949) 440-7033

Telephone No: (949) 225-7808

2EX-10.4

EXHIBIT 10.4

GUARANTY

GUARANTY, dated as of February 15, 2006 (as amended from time to time, the
“Guaranty”), made by New Century Financial Corporation (the “Guarantor”) in favor
of Goldman Sachs Mortgage Company (the “Buyer”), party to the Master Repurchase Agreement
dated February 15, 2006 by and among Buyer, New Century Warehouse Corporation (a “Seller”)
and New Century Mortgage Corporation (a “Seller”, and together with New Century Warehouse
Corporation, the “Sellers”) (as amended from time to time, the “Repurchase
Agreement”).

RECITALS

Reference is made to the Repurchase Agreement, pursuant to which the Buyer agreed to enter
into transactions with Sellers upon the terms and subject to the conditions set forth therein. It
is a condition precedent to the obligation of the Buyer to enter into Transactions with the Sellers
under the Repurchase Agreement, that the Guarantor execute and deliver to the Buyer this Affiliate
Guaranty.

Now, therefore, in consideration of the premises and to induce the Buyer to enter into the
Repurchase Agreement and engage in Transactions with the Sellers, and for other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, the Guarantor hereby
agrees to guarantee in accordance with the terms hereof each Seller’s obligations under the
Repurchase Agreement, as may be amended from time to time.

1. Defined Terms.

(a) Unless otherwise defined herein, terms defined in the Repurchase Agreement and used herein
shall have the meanings given to them in the Repurchase Agreement.

(b) “Obligations” shall mean all obligations and liabilities of each Seller to the
Buyer, whether direct or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, or whether for payment or for performance (including, without limitation, Price
Differential accruing after the Repurchase Date for the Transactions and Price Differential
accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to any Seller, whether or not a claim for post filing
or post petition interest is allowed in such proceeding), which may arise under, or out of or in
connection with the Repurchase Agreement, this Guaranty and any other document made, delivered or
given in connection therewith or herewith, whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses (including, without limitation, all reasonable fees
and disbursements of counsel to the Buyer that are required to be paid by the Seller pursuant to
the terms of such documents) or otherwise.

(c) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Guaranty shall refer to this Guaranty as a whole and not to any particular provision of this
Guaranty, and section and paragraph references are to this Guaranty unless otherwise specified.

(d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

2. Guaranty. (a) The Guarantor hereby, unconditionally and irrevocably, guarantees to
the Buyer and its successors, indorsees, transferees and assigns, the prompt and complete payment
and performance by the Sellers when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations.

(b) The Guarantor further agrees to pay any and all expenses (including, without limitation,
all reasonable fees and disbursements of counsel) which may be paid or incurred by the Buyer in
enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or collecting,
any or all of the Obligations and/or enforcing any rights with respect to, or collecting against,
the Guarantor under this Guaranty.

(c) No payment or payments made by any Seller, the Guarantor, any other guarantor or any other
Person or received or collected by the Buyer from the Sellers, the Guarantor, any other guarantor
or any other Person by virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of the Obligations shall
be deemed to modify, reduce, release or otherwise affect the liability of the Guarantor hereunder
which shall, notwithstanding any such payment or payments other than payments made by the Guarantor
in respect of the Obligations or payments received or collected from the Guarantor in respect of
the Obligations, remain liable for the Obligations up to the maximum liability of the Guarantor
hereunder until the Obligations are paid in full and the Repurchase Agreement is terminated.

(d) The Guarantor agrees that whenever, at any time, or from time to time, it shall make any
payment to the Buyer on account of its liability hereunder, it will notify the Buyer in writing
that such payment is made under this Guaranty for such purpose.

3. Right of Set-off. Upon the occurrence of any Event of Default, the Guarantor
hereby irrevocably authorizes the Buyer at any time and from time to time without notice to the
Guarantor, any such notice being expressly waived by the Guarantor, to set-off and appropriate and
apply any and all deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in each case whether
direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the
Buyer to or for the credit or the account of the Guarantor, or any part thereof in such amounts as
the Buyer may elect, against and on account of the obligations and liabilities of the Guarantor to
the Buyer hereunder and claims of every nature and description of the Buyer against the Guarantor,
in any currency, whether arising hereunder, under the Repurchase Agreement, any promissory note, or
otherwise, as the Buyer may elect, whether or not the Buyer has made any demand for payment and
although such obligations, liabilities and claims may be contingent or unmatured. The Buyer shall
notify the Guarantor promptly of any such set-off and the application made by the Buyer,
provided that the failure to give such notice shall not affect the validity of such set-off
and application. The rights of the Buyer under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) which the Buyer may have.

4. No Subrogation. Notwithstanding any payment or payments made by the Guarantor
hereunder or any set-off or application of funds of the Guarantor by the Buyer, the Guarantor shall
not be entitled to be subrogated to any of the rights of the Buyer against the Sellers or any other
guarantor or any collateral security or guarantee or right of offset held by the Buyer for the
payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or
reimbursement from the Sellers or any other guarantor in respect of payments made by the Guarantor
hereunder, until all amounts owing to the Buyer by the Sellers on account of the Obligations are
paid in full and the Repurchase Agreement is terminated. The Guarantor hereby subordinates all of
its subrogation rights against Sellers to the full payment of Obligations due Buyer under the
Repurchase Agreement for a period of 91 days following the final payment of the last of all of the
Obligations under the Facility Documents. If any amount shall be paid to the Guarantor on account
of such subrogation rights at any time when all of the Obligations shall not have been paid in
full, such amount shall be held by the Guarantor in trust for the Buyer, segregated from other
funds of the Guarantor, and shall, forthwith upon receipt by the Guarantor, be turned over to the
Buyer in the exact form received by the Guarantor (duly indorsed by the Guarantor to the Buyer, if
required), to be applied against the Obligations, whether matured or unmatured, in such order as
the Buyer may determine.

5. Amendments, Etc. with Respect to the Obligations; Waiver of Rights. The Guarantor
shall remain obligated hereunder notwithstanding that, without any reservation of rights against
the Guarantor and without notice to or further assent by the Guarantor, any demand for payment of
any of the Obligations made by the Buyer may be rescinded by the Buyer and any of the Obligations
continued, and the Obligations, or the liability of any other party upon or for any part thereof,
or any collateral security or guarantee therefor or right of offset with respect thereto, may, from
time to time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Buyer, and the Repurchase Agreement and any
other documents executed and delivered in connection therewith may be amended, modified,
supplemented or terminated, in whole or in part, as the Buyer may deem advisable from time to time,
and any collateral security, guarantee or right of offset at any time held by the Buyer for the
payment of the Obligations may be sold, exchanged, waived, surrendered or released. The Buyer
shall not have any obligation to protect, secure, perfect or insure any lien at any time held by it
as security for the Obligations or for this Guaranty or any property subject thereto. When making
any demand hereunder against the Guarantor, the Buyer may, but shall be under no obligation to,
make a similar demand on any Seller or any other guarantor, and any failure by the Buyer to make
any such demand or to collect any payments from a Seller or any such other guarantor or any release
of any Seller or such other guarantor shall not relieve the Guarantor of its obligations or
liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied,
or as a matter of law, of the Buyer against the Guarantor. For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings.

6. Guaranty Absolute and Unconditional.

(a) The Guarantor waives any and all notice of the creation, renewal, extension or accrual of
any of the Obligations and notice of or proof of reliance by the Buyer upon this Guaranty or
acceptance of this Guaranty, the Obligations, and any of them, shall conclusively be deemed to have
been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon
this Guaranty; and all dealings between the Sellers and the Guarantor, on the one hand, and the
Buyer, on the other hand, likewise shall be conclusively presumed to have been had or consummated
in reliance upon this Guaranty.

(b) The Guarantor hereby expressly waives all set-offs and counterclaims and all diligence,
presentments, demands for payment, demands for performance, notices of nonperformance, protests,
notices of protest, notices of dishonor, notices of acceptance of this Guaranty, notices of sale,
notice of default or nonpayment to or upon the Sellers or the Guarantor, surrender or other
handling or disposition of assets subject to the Repurchase Agreement, any requirement that Buyer
exhaust any right, power or remedy or take any action against the Seller or against any assets
subject to the Repurchase Agreement, and other formalities of any kind.

(c) The Guarantor understands and agrees that this Guaranty shall be construed as a
continuing, absolute and unconditional guarantee of payment without regard to (a) the validity,
regularity or enforceability of the Repurchase Agreement, any of the Obligations or any other
collateral security therefor or guarantee or right of offset with respect thereto at any time or
from time to time held by the Buyer, (b) any defense, set-off or counterclaim (other than a defense
of payment or performance) which may at any time be available to or be asserted by a Seller against
the Buyer, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the
Sellers or the Guarantor) which constitutes, or might be construed to constitute, an equitable or
legal discharge of the Sellers from the Obligations, or of the Guarantor from this Guaranty, in
bankruptcy or in any other instance.

(d) When pursuing its rights and remedies hereunder against the Guarantor, the Buyer may, but
shall be under no obligation to, pursue such rights and remedies as it may have against the Sellers
or any other Person or against any collateral security or guarantee for the Obligations or any
right of offset with respect thereto, and any failure by the Buyer to pursue such other rights or
remedies or to collect any payments from the Sellers or any such other Person or to realize upon
any such collateral security or guarantee or to exercise any such right of offset, or any release
of the Sellers or any such other Person or any such collateral security, guarantee or right of
offset, shall not relieve the Guarantor of any liability hereunder, and shall not impair or affect
the rights and remedies, whether express, implied or available as a matter of law, of the Buyer
against the Guarantor.

(e) This Guaranty shall remain in full force and effect and be binding in accordance with and
to the extent of its terms upon the Guarantor and the successors and assigns thereof, and shall
inure to the benefit of the Buyer, and its successors, indorsees, transferees and assigns, until
all the Obligations and the obligations of the Guarantor under this Guaranty shall have been
satisfied by payment in full and the Repurchase Agreement shall be terminated, notwithstanding that
from time to time prior thereto the Sellers may be free from any Obligations.

(f) The Guarantor waives, to the fullest extent permitted by applicable law, all defenses of
surety to which it may be entitled by statute or otherwise.

7. Reinstatement. The Obligations of the Guarantor under this Guaranty, and this
Guaranty, shall continue to be effective, or be reinstated, as the case may be, and be continued in
full force and effect, if at any time any payment, or any part thereof, of any of the Obligations
is rescinded, invalidated, declared fraudulent or preferentially set aside or must otherwise be
restored, returned or repaid by the Buyer upon the insolvency, bankruptcy, dissolution, liquidation
or reorganization of a Seller or the Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, a Seller or the
Guarantor or any substantial part of its or their property, or for any other reason, all as though
such payments had not been made.

8. Payments. The Guarantor hereby guarantees that payments hereunder will be paid to
the Buyer in U.S. Dollars without set-off or counterclaim.

9. Event of Default. If an Event of Default under the Repurchase Agreement shall have
occurred and be continuing, the Guarantor agrees that, as between the Guarantor and Buyer, the
Obligations may be declared to be due for purposes of this Guaranty notwithstanding any stay,
injunction or other prohibition which may prevent, delay or vitiate any such declaration as against
a Seller and that, in the event of any such declaration (or attempted declaration), such
Obligations shall forthwith become due by the Guarantor for purposes of this Guaranty.

10. Representations and Warranties; Covenants.

(a) The Guarantor represents and warrants that (i) it is duly authorized to execute and
deliver this Guaranty, to perform its obligations hereunder and has taken all necessary action to
authorize such execution, delivery and performance; (ii) the person signing this Guaranty on its
behalf is duly authorized to do so on its behalf; (iii) this Guaranty is a legal, valid and binding
obligation of it, enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, or similar debtor/creditor laws and general principles of equity and public
policy; (iv) no approval, consent or authorization of this Guaranty from any federal, state, or
local regulatory authority having jurisdiction over it is required or, if required, such approval,
consent or authorization has been or will be obtained, prior to the initial Transaction; (v) the
execution, delivery, and performance of this Guaranty will not violate any law, regulation, order,
judgment, decree, ordinance, charter, bylaw, or rule applicable to it or its property or constitute
a default (or an event which, with notice or lapse of time, or both would constitute a default)
under or result in a breach of any material agreement or other material instrument by which it is
bound or by which any of its assets are affected; (vi) it has received approval and authorization
to enter into this Guaranty pursuant to its internal policies and procedures; (vii) this Guaranty
is not entered into in contemplation of insolvency or with intent to hinder, delay or defraud any
creditor and (viii) it has examined and comprehends the Repurchase Agreement in its entirety.

(b) Guarantor represents, warrants and covenants to Buyer that as of the date of this Guaranty
and as of the date of any Transaction under the Repurchase Agreement and at all times while this
Guaranty and any Transaction under the Repurchase Agreement are in effect or there are Obligations
outstanding:

(i) Performance of Guaranty. Guarantor does not believe, nor does it have any
reason or cause to believe, that it cannot perform each and every covenant contained in this
Guaranty on its part to be performed;

(ii) Guarantor Not Insolvent. Guarantor is not, and with the passage of time
does not expect to become, insolvent; and

(iii) Ownership of Seller. Guarantor is now, and will remain, the direct or
indirect owner of 100% of the common stock of the Sellers.

(c) Guarantor covenants and agrees that it shall not consolidate with or merge into, or
transfer all or substantially all of its assets to, another entity (or permit the occurrence of
same) unless the resulting surviving or transferee entity (a) is a corporation organized under the
laws of the United States of America or political subdivision thereof; (b) assumes all the
obligations of the Guarantor under this Agreement pursuant to an agreement reasonably satisfactory
to Buyer or by law; (c) such merger, consolidation or asset transfer has received the prior written
approval of the regulatory authorities having jurisdiction over such transaction; and (d) Buyer
receives as part of the aforementioned agreement assurances from such entity prior to the proposed
merger, consolidation or asset acquisition, reasonably satisfactory to Buyer, that such entity
would not, following such proposed transaction, present an unacceptable credit risk to Buyer and
would be an entity able to faithfully perform under the terms of this Guaranty.

11. Notices. All notices, requests and other communications provided for herein
(including without limitation any modifications of, or waivers, requests or consents under, this
Guaranty) shall be given or made in writing (including without limitation by telex or telecopy)
delivered to the intended recipient at the “Address for Notices” specified below its name on the
signature pages of the Repurchase Agreement, or, with respect to Guarantor, at the “Address for
Notices” specified below its name on the signature page hereof); or, as to any party, at such other
address as shall be designated by such party in a written notice to each other party. All such
communications shall be deemed to have been duly given when transmitted by telex or telecopy or
personally delivered or, in the case of a mailed notice, upon receipt, in each case given or
addressed as aforesaid.

12. Severability. Any provision of this Guaranty which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

13. Integration. This Guaranty represents the agreement of the Guarantor with respect
to the subject matter hereof and thereof and there are no promises or representations by the Buyer
relative to the subject matter hereof or thereof not reflected herein or therein.

14. Amendments in Writing; No Waiver; Cumulative Remedies. (a) None of the terms or
provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the Guarantor and the Buyer, provided that any provision of
this Guaranty may be waived by the Buyer.

(b) The Buyer shall not by any act (except by a written instrument pursuant to Section 14(a)
hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the
terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of
the Buyer, any right, power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. A waiver by the Buyer of
any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or
remedy which the Buyer would otherwise have on any future occasion.

(c) The rights and remedies herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by law.

15. Section Headings. The section headings used in this Guaranty are for convenience
of reference only and are not to affect the construction hereof or be taken into consideration in
the interpretation hereof.

16. Successors and Assigns. This Guaranty shall be binding upon the successors and
assigns of the Guarantor and shall inure to the benefit of the Buyer and its successors and
assigns. This Guaranty may not be assigned by the Guarantor without the express written consent of
the Buyer.

17. Governing Law. This Guaranty shall be governed by New York law without reference
to its choice of law doctrine.

18. SUBMISSION TO JURISDICTION; WAIVERS. THE GUARANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY:

(A) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS GUARANTY AND THE OTHER REPURCHASE DOCUMENTS, OR FOR RECOGNITION AND
ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE PERSONAL
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE FEDERAL COURTS OF THE
UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS
FROM ANY THEREOF;

(B) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS
AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR
THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT
TO PLEAD OR CLAIM THE SAME;

(C) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE
EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY
SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER
ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH THE BUYER SHALL HAVE BEEN
NOTIFIED; AND

(D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY
OTHER JURISDICTION.

19. WAIVER OF JURY TRIAL. EACH OF THE GUARANTOR AND THE BUYER HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, ANY OTHER REPURCHASE DOCUMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

[SIGNATURE PAGE FOLLOWS]

1

IN WITNESS WHEREOF, the undersigned has caused this Guaranty to be duly executed and
delivered by its duly authorized officer as of the day and year first above written.

New Century Financial Corporation

a Maryland corporation

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: Executive Vice President

By: /s/ Brad A. Morrice

Name: Brad A. Morrice

Title: Vice Chairman, President and COO

2

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