EXHIBIT 10.7

 

--------------------------------------------------------------------------------

 

NEW CENTURY MORTGAGE CORPORATION

NC CAPITAL CORPORATION

Seller

 

AND

 

CDC MORTGAGE CAPITAL INC.

Buyer

 

AMENDMENT NO. 3

Dated as of September 30, 2003

 

TO

 

SECOND AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

Dated as of June 23, 2003

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

AMENDMENT NO. 3 (this “Amendment”), dated as of September 30, 2003, by and among
New Century Mortgage Corporation (“NCMC”), NC Capital Corporation (“NCCC” and,
together with NCMC, the “Seller”), and CDC Mortgage Capital Inc. (“Buyer”), to
the Second Amended and Restated Master Repurchase Agreement, dated as of June
23, 2003, by and among Seller and Buyer (the “Agreement”).

 

RECITALS

 

WHEREAS, Seller and Buyer have entered into the Agreement;

 

WHEREAS the Seller has requested the Buyer to agree to amend certain provisions
of the Agreement as set forth in this Amendment. The Buyer hereto is willing to
agree to such amendments, but only on the terms and subject to the conditions
set forth in this Amendment.

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Seller and the Buyer hereby agree as follows:

 

Section 1. Amendments.

 

(a) Defined Terms. Unless otherwise defined herein, terms defined in the
Agreement are used herein as therein defined.

 

(b) Section 11(o) of the Agreement is hereby amended and restated in its
entirety to read:

 

“Leverage Ratio. Guarantor will not permit (i) the Quarterly Average Leverage
Ratio for any period of measurement to be greater than 10.0 to 1.0, (ii) the
Daily Leverage Ratio on any date to be greater than 15.0 to 1.0, or (iii) the
Adjusted Leverage Ratio as of the last day of each fiscal quarter to be greater
than 12.0 to 1.0. NCMC will not permit the Leverage Ratio of NCMC to be greater
than 10.0 to 1.0 as of the last day of each fiscal quarter of NCMC.”

 

(c) Section 11(o) of the Agreement is hereby amended and restated in its
entirety to read:

 

“Restricted Payments. Guarantor, NCCC and NCMC will not make any Restricted
Payments, other than (a) dividends paid by Guarantor on its Common Stock not to
exceed $0.60 per share in any calendar year, or dividends in the form of Common
Stock if such dividend is used to accomplish a stock split, (b) repurchases by
Guarantor of up to 5,000,000 shares of its Common Stock on the open market or in
negotiated transactions; and (c) dividends paid by NCMC to Guarantor to enable
Guarantor to pay dividends as provided in clause (a) above; provided, that in
each case both before and after giving effect to such dividends or repurchases,
Guarantor, NCCC and NCMC are in compliance

--------------------------------------------------------------------------------

with the covenants set forth in Section 11 of this Agreement and no Event of
Default or Default has occurred and is continuing.”

 

Section 2. Effectiveness of the Amendment. The Amendment shall become effective
upon receipt by the Buyer of evidence satisfactory to the Buyer that this
Amendment has been executed and delivered by the Seller.

 

Section 3. Ratification of Agreement. As amended by this Amendment, the
Agreement is in all respects ratified and confirmed and the Agreement as so
modified by this Amendment shall be read, taken, and construed as one and the
same instrument.

 

Section 4. Representations and Warranties. To induce the Buyer to enter into
this Amendment, the Seller hereby represents and warrants to the Buyer that,
after giving effect to the amendments provided for herein, the representations
and warranties contained in the Agreement and the other Repurchase Documents
will be true and correct in all material respects as if made on and as of the
date hereof and that no Default or Event of Default will have occurred and be
continuing.

 

Section 5. No Other Amendments. Except as expressly amended hereby, the
Agreement and the other Repurchase Documents shall remain in full force and
effect in accordance with their respective terms, without any waiver, amendment
or modification of any provision thereof.

 

Section 6. Counterparts. This Amendment may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all of such counterparts shall together constitute but one and the same
instrument.

 

Section 7. Expenses. The Seller agrees to pay and reimburse the Buyer for all of
the out-of-pocket costs and expenses incurred by the Buyer in connection with
the preparation, execution and delivery of this Amendment, including, without
limitation, the fees and disbursements of its attorneys.

 

Section 8. GOVERNING LAW.

 

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

 

-2-

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective officers as of the day and year first above
written.

 

CDC MORTGAGE CAPITAL INC., as

    Buyer under the Agreement

     

NEW CENTURY MORTGAGE

    CORPORATION, as Seller under the Agreement

By:  

/s/    JOE PISCINA

--------------------------------------------------------------------------------

      By:  

/s/    PATRICK FLANAGAN

--------------------------------------------------------------------------------

   

Name: Joe Piscina

Title: Managing Director

         

Name: Patrick Flanagan

Title: President

By:  

/s/    KATHY LYNCH

--------------------------------------------------------------------------------

     

NC CAPITAL CORPORATION,

    as Seller under the Agreement

   

Name: Kathy Lynch

Title: Director

                  By:  

/s/    PATRICK FLANAGAN

--------------------------------------------------------------------------------

               

Name: Patrick Flanagan

Title: Chief Executive Officer

--------------------------------------------------------------------------------

The undersigned guarantor hereby consents and agrees to the foregoing Amendment:

 

NEW CENTURY FINANCIAL

    CORPORATION

By:

 

/s/    PATRICK FLANAGAN

--------------------------------------------------------------------------------

   

Name: Patrick Flanagan

Title: Executive Vice President