Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.13  

 
 

INDEMNIFICATION AGREEMENT    
  

        This Indemnification Agreement (this "Agreement") is made and entered as of February 12, 2003, by and between Trans World Corporation, a Nevada corporation
(the "Company"), TWG International US Corporation, a Nevada Corporation ("International") and Value Partners, Ltd., a Texas limited partnership ("Value Partners"). 

 
 

BACKGROUND    
  

        A.    The Company intends to effect an exchange of (i) 22,640 shares of its common stock or (ii) $1,000 principal amount Variable Rate Promissory Notes due 2010
(the "Replacement Notes"), for each of the Company's $1,000 principal amount 12% Senior Secured Notes due March 17, 2005 (the "Notes"). In addition, certain tendering noteholders who have not
been paid accrued interest under the Notes will receive an 8% Promissory Note due 2005 (the "Interest Notes").

 

        B.    The
exchange offer will be made upon the terms and subject to the conditions set forth in the form of Prospectus (the "Prospectus") contained in the
Form S-4 Registration Statement, as amended, filed with the Securities and Exchange Commission (the "Commission") on November 5, 2002 (file number 333-101028)
(the "Registration Statement") and the related Letter of Transmittal filed therewith. 

        C.    Value
Partners currently owns 57.5% of the Company's issued and outstanding common stock, 66.6% of the Company's long-term debt and warrants to purchase an
aggregate of 2,600,000 shares of the Company's common stock. 

        D.    In order to ensure a timely closing of the exchange offer, Value Partners intends to make filings with the Commission.

        E.    Value Partners has requested, and the Company and International have agreed to indemnify Value Partners against certain liabilities relating to, arising out of or
resulting from the exchange offer, on the terms set forth in this Agreement.

 

        NOW,
THEREFORE, the parties agree as follows: 

        1.    Indemnification.    

        (a)  The
Company and International agree to indemnify and hold harmless Value Partners and Ewing & Partners, its general partner, and each person, if any, who controls
Value Partners or Ewing & Partners within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Securities Act") or Section 20(a) of the Exchange Act, against
any and all losses, liabilities, claims, damages and expenses whatsoever as incurred (including but not limited to attorneys' fees and any and all expenses whatsoever incurred in investigating,
preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), to which it may become subject
under the Securities Act, the Exchange Act or otherwise, insofar as such losses, liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement, as originally filed or any amendment thereof, or any related Preliminary Prospectus or the Prospectus,
or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading; provided, however, that the Company and International will not be liable in any such case to the extent but
only to the extent that any such loss, liability, claim, damage or expense arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon 

1

 

and in conformity with written information furnished to the Company by or on behalf of Value Partners expressly for use therein. This indemnification shall be the joint and several obligation of the
Company and International. 

        (b)  Promptly
after receipt by an indemnified party of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made
against the indemnifying party under such subsection, notify each party against whom indemnification is to be sought in writing of the commencement thereof (but the failure so to notify an
indemnifying party shall not relieve it from any liability which it may have under this Section, except to the extent such failure prejudiced the indemnifying party). In case any such action is
brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate
therein, and to the extent it may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof
with counsel reasonably satisfactory to such indemnified party. Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its or their own counsel in any such
case, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by
one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed counsel to have charge of the defense of such action within
a reasonable time after notice of commencement of the action, or (iii) such indemnified party or parties shall have received a written opinion of their counsel concluding that there may be
defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to
direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the indemnifying parties. Anything in this subsection
to the contrary notwithstanding, an indemnifying party shall not be liable for any settlement of any claim or action effected without its written consent; provided,
however, that such consent was not unreasonably withheld. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of such indemnified party from all liability or claims that are the subject matter of such proceeding. 

        2.    Contribution.    In order to provide for contribution in circumstances in which the indemnification provided for
in Section 1 is for any reason held to be unavailable from any indemnifying party or is insufficient to hold harmless a party indemnified
thereunder, then upon the occurrence of such circumstance, the Company and International shall contribute to the aggregate losses, claims, damages, liabilities and expenses of the nature contemplated
by such indemnification provision (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claims
asserted) as incurred to which Value Partners may be subject. Notwithstanding the provisions of this Section, no person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section, each person, if
any, who controls Value Partners or Ewing & Partners within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to
contribution as Value Partners. Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a
claim for contribution may be made against another party or parties, notify each party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not
relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section or otherwise, except to the extent such failure prejudiced such party. No 

2

 

party shall be liable for contribution with respect to any action or claim settled without its consent; provided, however, that such consent was not
unreasonably withheld. 

        3.    Notices.    All communications hereunder, except as may be otherwise specified, shall be in writing and, if sent
to Value Partners, shall be mailed, delivered, or telexed or telegraphed and confirmed in writing, to Ewing & Partners, 4514 Cole Avenue, Dallas, Texas 75205, Attention: Timothy G. Ewing, with
a copy to: Bergman & Bird LLP, 4514 Travis Walk, Suite 300, Dallas, Texas 75205, Attention: Jack R. Bird,
Esq.; if sent to the Company and International, shall be mailed, delivered, or telegraphed and confirmed in writing to Trans World Corporation, 545 Fifth Avenue, Suite 940, New York, New York 10017,
Attention: Chief Executive Officer, with a copy to Elias, Matz, Tiernan & Herrick L.L.P., 734 15th Street, N.W., 12th Floor, Washington, D.C. 20005, Attention: Jeffrey A. Koeppel, Esq. 

        4.    Parties.    This Agreement shall inure solely to the benefit of, and shall be binding upon, Value Partners, the
Company and International, and the controlling persons, directors, officers and others referred to in Sections 1 and 2, and their respective successors
and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Agreement or any provision herein
contained. The term "successors and assigns" shall not include a purchaser or acquiror, in its capacity as such, of common stock, Replacement Notes or Interest Notes from the Company. 

        5.    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware for contracts made and to be fully performed in such state without regard to principles of conflicts of law and by the laws of the United States of America. The parties recognize that it is
the position of the U.S. Securities and Exchange Commission that indemnification for violations of the federal securities laws is against public policy as expressed in the Securities Act of 1933, as
amended, and may be unenforceable. 

        6.    Counterparts.    This Agreement may be executed and delivered (including by facsimile transmission) in one or
more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement. 

        7.    Amendment.    This Agreement may not be amended except by an instrument signed by the parties. 

        8.    Waivers.    Either party may (i) extend the time for the performance of any of the obligations or other
act of the other party or (ii) waive compliance with any of the agreements contained herein. No waiver shall be effective unless signed by the parties. No waiver of any term shall be construed
as a subsequent waiver of the same term, or a waiver of any other term, of this Agreement. The failure of any party to assert any of its rights hereunder will not constitute a waiver of any such
rights. 

        9.    Severability.    If any provision of this Agreement is invalid, illegal or incapable of being enforced by any
rule of law or public policy, such provision shall be deemed severable and all other provisions of this Agreement shall nevertheless remain in full force and effect. 

        10.    Headings.    Section headings in this Agreement are included for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose. 

3

 

        IN
WITNESS WHEREOF, the parties have duly executed this Indemnification Agreement as of the date first above written. 

	

 	
 	

VALUE PARTNERS, LTD.
	

 	
 	

By:	
 	

EWING & PARTNERS

as General Partner
	

 	
 	

By:	
 	

/s/  TIMOTHY G. EWING      
 Timothy G. Ewing

Managing General Partner
	

 	
 	

TRANS WORLD CORPORATION
	

 	
 	

By:	
 	

/s/  RAMI S. RAMADAN      
  
	

 	
 	

Name:	
 	

Rami S. Ramadan
  
	

 	
 	

Title:	
 	

Chief Executive Officer
  
	

 	
 	

TWG INTERNATIONAL US CORPORATION
	

 	
 	

By:	
 	

/s/  RAMI S. RAMADAN      
  
	

 	
 	

Name:	
 	

Rami S. Ramadan
  
	

 	
 	

Title:	
 	

Chief Executive Officer
  

4

QuickLinks

INDEMNIFICATION AGREEMENT

BACKGROUNDQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.85    
  

NEW CENTURY MORTGAGE CORPORATION

NC CAPITAL CORPORATION

Seller

AND

CDC MORTGAGE CAPITAL INC.

Buyer

AMENDMENT NO. 3

Dated as of March 14, 2003

TO

AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

Dated as of May 10, 2002  

        AMENDMENT NO. 3 (this "Amendment"), dated as of March 14, 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 Amended and Restated Master Repurchase
Agreement, dated as of May 10, 2002 as amended by Amendment No. 1, dated as of July 26, 2002 as amended by Amendment No. 2, dated as of August 5, 2002, each 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)  Proviso
(11) of the definition of "Asset Value" is hereby amended and restated in its entirety to read: 

        "(11)  The
aggregate Asset Value of Condominium Mortgage Loans may not exceed $40,000,000;" 

        (c)  Proviso
(12) of the definition of "Asset Value" is hereby amended to remove the "." after the last sentence and replace it with "; and" 

        (d)  Proviso
(13) of the definition of "Asset Value" is hereby added to read: 

        "(13)  The
aggregate Asset Value of Manufactured Home Mortgage Loans may not exceed $20,000,000." 

        (e)  The
following definitions are hereby amended and restated in their entireties to read: 

""C/C- Credit Sub-Limit" shall mean an amount equal to $47,000,000." 

""Pricing Spread" shall mean the applicable rates per annum set forth below for each type of Eligible Asset for each day during the related Interest
Period: 

        (a)  Mortgage
Loans (other than Wet-Ink Mortgage Loans), 0.95% (95) basis points; and 

        (b)  Wet-Ink
Mortgage Loans, 1.10% (110) basis points." 

""Termination Date" shall mean the date which is 364 days from the date hereof which shall be March 13, 2004 or such earlier date on which
this Agreement shall terminate in accordance with the provisions hereof or by operation of law, as may be extended pursuant to Section 3(n)." 

        (f)    The
following definitions are hereby added in their proper alphabetical order to Section 2 as follows: 

""Condominium Mortgage Loan" shall mean an Eligible Asset secured by a Residential Dwelling which is a unit in a condominium project." 

""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," "predatory" or similar loan under any other applicable state, 

 

federal or local law (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans
having high interest rates, points and/or fees)." 

""Manufactured Home Mortgage Loan" shall mean an Eligible Asset secured by a Residential Dwelling which is a manufactured home." 

""Minimum Pricing Amount" means $3,055,000 less amounts received by the Purchaser since March 14, 2003 in respect of (a) the Facility Fee
described in Section 2 of the Third Amendment and (b) the aggregate amount obtained by daily application of the Pricing Spread for each outstanding 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." 

""Third Amendment" means the AMENDMENT NO. 3, dated as of March 14, 2003, by and among NCMC, NCCC and Buyer to this Agreement. 

        (g)  Section 3(o)
of the Agreement will be amended by deleting it in its entirety and replacing it with the following new clause 3(o): 

"On
the Termination Date, including but not limited to a termination pursuant to Section 20 or otherwise hereunder, Seller shall pay to Buyer the Minimum Pricing Amount. All such payments
pursuant to this clause (o) shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to Buyer at the account set forth in
Section 8(a) hereof." 

        (h)  Clauses
(41) and (45) of Part I: Residential Mortgage Loans of Schedule 1 is hereby amended and restated in their entireties to read: 

        "(41)  Predatory Lending Regulations; High Cost Loans. None of the Mortgage Loans are classified as (a) a "high cost"
loan under the Home Ownership and Equity Protection Act of 1994 or (b) a "high cost," "threshold," "covered," "predatory" or similar loan under any other applicable state, federal or local
law (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest
rates, points and/or fees);" 

        "(45)  Prepayment Fee. With respect to each Mortgage Loan that has a prepayment penalty feature, each such prepayment penalty
is enforceable, and each prepayment penalty is permitted pursuant to federal, state and local law. Each such prepayment penalty is in an amount equal to or less than the maximum amount permitted under
applicable law and no such prepayment penalty may be imposed for a term in excess of five (5) years with respect to Mortgage Loans originated prior to October, 1, 2002. With respect to Mortgage
Loans originated on or after October 1, 2002, no such prepayment penalty may be imposed for a term in excess of three (3) years;" 

        (i)    Clauses
(57) and (58) of Part I: Residential Mortgage Loans of Schedule 1 are hereby amended to: 

        (1)  remove
the "and" at the end of Clause 57. 

        (2)  remove
the "." at the end of Clause 58 and replace it with "; and". 

2

 

        (j)    Clause (59)
of Part I: Residential Mortgage Loans of Schedule 1 is hereby added to read: 

        "(59)  No Georgia Loans. There is no Mortgage Loan that was originated on or after October 1, 2002, which is secured by
property located in the State of Georgia." 

        Section 2.  Facility Fee. Upon the execution of this Amendment, the Seller shall pay a facility fee to the Buyer equal
to the product of (x) $470,000,000, and (y) 15 basis points (0.15%). 

        Section 3.  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 4.  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 5.  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 6.  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 7.  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 8.  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 9.  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. 

3

        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/  ANTHONY MALANGA      
 Name:

Title:      Managing Director	
 	

By:	
 	

/s/  KEVIN CLOYD      
 Name:

Title:      Senior Vice President
	

By:	
 	

/s/  MICHAEL CAVANAGH      
 Name:

Title:      VP and Operations Manager	
 	
NC CAPITAL CORPORATION, as Seller under the Agreement
	 	 	 	 	By:	 	/s/  KEVIN CLOYD      
 Name:

Title:      President

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

	 	 	NEW CENTURY FINANCIAL CORPORATION
	

 	
 	

By:	
 	

/s/  PATRICK FLANAGAN      
 Name:

Title:      Executive Vice President

QuickLinks

Exhibit 10.85

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]