EXHIBIT 10.5
 
AMENDMENT NUMBER FOUR
to the
Master Loan and Security Agreement
dated as of April 1, 2000
by and among
NEW CENTURY MORTGAGE CORPORATION
NC CAPITAL CORPORATION
and
SALOMON BROTHERS REALTY CORP.
 
This AMENDMENT NUMBER FOUR (this “Amendment”) is made this 23rd day of December,
2002, among NEW CENTURY MORTGAGE CORPORATION, having an address at 18400 Von
Karman, Irvine, California 92612 (the “Servicer”), NC CAPITAL CORPORATION,
having an address at 18400 Von Karman, Irvine, California 92612 (the “Borrower”)
and SALOMON BROTHERS REALTY CORP., having an address at 390 Greenwich Street,
New York, New York 10013 (the “Lender”) to the MASTER LOAN AND SECURITY
AGREEMENT, dated as of April 1, 2000, between the Lender, the Servicer and the
Borrower (as previously amended and supplemented, the “Loan Agreement”).
 
RECITALS
 
WHEREAS, the Borrower has requested that the Lender agree to amend the Loan
Agreement to extend the term thereof and to make such additional modifications
to the Loan Agreement as more expressly set forth below and the Lender has
agreed to such request.
 
WHEREAS, the Borrower has agreed to deliver all closing documents required under
the Loan Agreement including, but not limited to, officer’s certificates, and
all other documents required thereunder, and has authorized the filing of any
relevant UCC financing statements by the Lender and agrees to satisfy all
conditions precedent to any Advance thereunder.
 
WHEREAS, as of the date of this Amendment, each of the Borrower and the Servicer
represents to the Lender that it is in compliance with all of the
representations and warranties and all of the affirmative and negative covenants
set forth in the Loan Agreement and is not in default under the Loan Agreement.
 
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and of the mutual covenants herein contained,
the parties hereto hereby agree as follows:
 
SECTION 1.    Effective as of December 23, 2002, Section 1 of the Loan Agreement
is hereby amended by deleting the definition of “Maturity Date”and replacing it
with the following:

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“Maturity Date” shall mean December 31, 2003 or such earlier date on which this
Loan Agreement shall terminate in accordance with the provisions hereof or by
operation of law.
 
SECTION 2.    Effective as of December 23, 2002, Section 1 of the Loan Agreement
is hereby amended by deleting the definition of “Maximum Credit” and replacing
it with the following:
 
“Maximum Credit” shall mean $50,000,000.
 
SECTION 3.    Effective as of December 23, 2002, Section 5.02 of the Loan
Agreement is hereby amended by deleting clause (a) thereof in its entirety and
replacing it with the following:
 
“(a) no Default, Event of Default or event which, in the sole judgment of the
Lender, may have a Material Adverse Effect shall have occurred and be
continuing;”
 
SECTION 4.    Effective as of December 23, 2002, Section 8 of the Loan Agreement
is hereby amended by deleting clause (j) thereof in its entirety and replacing
it with the following:
 
“(j) Reserved;”
 
SECTION 5.    Fees and Expenses.    The Borrower agrees to pay to the Lender all
fees and out of pocket expenses incurred by the Lender in connection with this
Amendment (including all reasonable fees and out of pocket costs and expenses of
the Lender’s legal counsel incurred in connection with this Amendment), in
accordance with Section 11.03(b) of the Loan Agreement.
 
SECTION 6.    Defined Terms.    Any terms capitalized but not otherwise defined
herein shall have the respective meanings set forth in the Loan Agreement.
 
SECTION 7.    Representations.    In order to induce the Lender to execute and
deliver this Amendment, each of the Borrower and the Servicer hereby represents
to the Lender that as of the date hereof, after giving effect to this Amendment,
each of the Borrower and the Servicer is in full compliance with all of the
terms and conditions of the Loan Agreement and no Default or Event of Default
has occurred under the Loan Agreement.
 
SECTION 8.    Limited Effect.    This Amendment shall become effective upon the
satisfaction by the Borrower of the conditions precedent set forth in Section 5
of the Loan Agreement. Except as expressly amended and modified by this
Amendment, the Loan Agreement shall continue in full force and effect in
accordance with its terms.

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Reference to this Amendment need not be made in the Loan Agreement or any other
instrument or document executed in connection therewith, or in any certificate,
letter or communication issued or made pursuant to, or with respect to, the Loan
Agreement, any reference in any of such items to the Loan Agreement being
sufficient to refer to the Loan Agreement as amended hereby.
 
SECTION 9.    GOVERNING LAW.    THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS, AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS
WITHOUT REGARD TO CONFLICT OF LAWS DOCTRINE APPLIED IN SUCH STATE (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
 
SECTION 10.    Counterparts.    This Amendment may be executed by each of the
parties hereto on any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument.
 
 
 
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Lender, the Borrower and the Servicer have caused this
Amendment to be executed and delivered by their duly authorized officers as of
the day and year first above written.
 
SALOMON BROTHERS REALTY CORP.
By:
 
  /s/    EVAN J. MITNICK

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Name:
Title:  Vice President

 
 
NC CAPITAL CORPORATION
By:
 
/s/    KEVIN CLOYD

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Name
Title: President

 
 
NEW CENTURY MORTGAGE CORPORATION
By:
 
/s/    KEVIN CLOYD  

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Name
Title: Senior Vice President

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