Exhibit 10.4

 

AMENDMENT NUMBER FIVE

to the

Letter Agreement

dated as of January 1, 2002

by and among

NEW CENTURY MORTGAGE CORPORATION

NC CAPITAL CORPORATION

and

CITIGROUP GLOBAL MARKETS REALTY CORP.

(as successor to SALOMON BROTHERS REALTY CORP.)

 

This AMENDMENT NUMBER FIVE (this “Amendment”) is made this 31st day of March,
2004, among NEW CENTURY MORTGAGE CORPORATION, having an address at 18400 Von
Karman, Irvine, California 92612 (“New Century”), NC CAPITAL CORPORATION, having
an address at 18400 Von Karman, Irvine, California 92612 (“NCCC”) and CITIGROUP
GLOBAL MARKETS REALTY CORP. (as successor to SALOMON BROTHERS REALTY CORP.),
having an address at 390 Greenwich Street, New York, New York 10013
(“Citigroup”) to the LETTER AGREEMENT, dated as of January 1, 2002, among New
Century, NCCC and Citigroup, as amended pursuant to Amendment Number One, dated
December 23, 2002, Amendment Number Two, dated April 30, 2003, Amendment Number
Three, dated September 16, 2003 and Amendment Number Four, dated December 29,
2003 (the “Letter Agreement”).

 

RECITALS

 

WHEREAS, New Century and NCCC have requested that Citigroup agree to amend the
Letter Agreement to extend the term thereof as more expressly set forth below
and Citigroup has agreed to such request.

 

WHEREAS, as of the date of this Amendment, each of New Century and NCCC
represents to Citigroup that it is in compliance with all of the representations
and warranties and all of the affirmative and negative covenants set forth in
the Letter Agreement and the Purchase and Sale Agreement, dated as of January 1,
2002, among NCCC, New Century and Citigroup (the “Purchase and Sale Agreement”)
and is not in default under the Letter Agreement or the Purchase and Sale
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 March 31, 2004, Paragraph 1(a) of the Letter
Agreement is hereby amended by replacing the two occurrences of “March 31, 2004”
with “June 30, 2004”.

 

SECTION 2. Fees and Expenses. NCCC agrees to pay to Citigroup all fees and out
of pocket expenses incurred by Citigroup in connection with this Amendment
(including all reasonable fees and out of pocket costs and expenses of
Citigroup’s legal counsel incurred in connection with this Amendment), in
accordance with Paragraph 5(i) of the Letter Agreement.

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SECTION 3. Defined Terms. Any terms capitalized but not otherwise defined herein
shall have the respective meanings set forth in the Letter Agreement.

 

SECTION 4. Representations. In order to induce Citigroup to execute and deliver
this Amendment, NCCC and New Century hereby represent to Citigroup that as of
the date hereof, after giving effect to this Amendment, each of NCCC and New
Century is in full compliance with all of the terms and conditions of the Letter
Agreement and the Purchase and Sale Agreement and no Termination Event or
material adverse change has occurred under the Letter Agreement and no Seller
default or Seller Event of Default has occurred under the Purchase and Sale
Agreement.

 

SECTION 5. Limited Effect. This Amendment shall become effective upon the
execution hereof by the parties hereto. Except as expressly amended and modified
by this Amendment, the Letter Agreement shall continue in full force and effect
in accordance with its terms. Reference to this Amendment need not be made in
the Letter 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 Letter Agreement, any reference in any of
such items to the Letter Agreement being sufficient to refer to the Letter
Agreement as amended hereby.

 

SECTION 6. 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 SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

SECTION 7. 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, NCCC, New Century and Citigroup have caused this Amendment
to be executed and delivered by their duly authorized officers as of the day and
year first above written.

 

CITIGROUP GLOBAL MARKETS REALTY CORP. By:  

/s/    EVAN J. MITNICK

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Name:  

Evan J. Mitnick

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Title:  

Director

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NC CAPITAL CORPORATION By:  

/s/    KEVIN CLOYD

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

Name:  

Kevin Cloyd

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Title:  

President

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NEW CENTURY MORTGAGE CORPORATION By:  

/s/    KEVIN CLOYD

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

Name:  

Kevin Cloyd

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

Title:  

Executive Vice President

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The undersigned Guarantor under the Limited Guaranty dated as of January 1,
2002, hereby acknowledges and agrees to the amendment and modification to the
Letter Agreement made pursuant to this Amendment.

 

NEW CENTURY MORTGAGE CORPORATION By:  

/s/    Kevin CLOYD

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Name:  

Kevin Cloyd

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Title:  

Executive Vice President

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