Document:

Amend. #1 to Amended & Restated Master Loan and Security Agreement

 Exhibit 10.1 
  
 AMENDMENT NO. 1 TO THE 
 AMENDED AND RESTATED MASTER LOAN AND SECURITY AGREEMENT 
  
 AMENDMENT NO. 1, dated as of September 15, 2003 (this “Amendment”), to the Amended and Restated Master Loan and Security Agreement, dated as of June 20, 2003 (the “Existing Loan
Agreement”; as amended hereby and as further amended, restated, supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”) by and among NC CAPITAL CORPORATION, a California corporation
(“NC Capital”), NEW CENTURY MORTGAGE CORPORATION, a California corporation (“New Century” and together with NC Capital, each a “Borrower” and collectively, the “Borrowers”), and
MORGAN STANLEY MORTGAGE CAPITAL INC., a New York corporation (the “Lender”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Loan Agreement. 
  
 RECITALS 
  
 The Borrowers and the Lender are parties to the Existing Loan Agreement. 
  
 Pursuant to the New Century Guaranty, New Century Financial Corporation, a
Delaware corporation (the “Guarantor”), has unconditionally and absolutely guaranteed to the Lender and its successors and assigns the full and prompt payment of all amounts due and owing by the Borrowers under the Loan Agreement,
as and when they shall become due thereunder. 
  
 The Borrowers,
the Guarantor and the Lender have agreed, subject to the terms and conditions of this Amendment, that the Existing Loan Agreement shall be amended to temporarily increase the Maximum Credit amount. 
  
 Accordingly, the Borrowers and the Lender hereby agree, in consideration of
the mutual premises and mutual obligations set forth herein, that the Existing Loan Agreement is hereby amended as follows: 
  
 SECTION 1. Amendment. Solely during the period commencing on September 15, 2003 and ending at 5:00 p.m. on October 15, 2003, Section 1.1 of
the Loan Agreement is hereby amended by deleting the definition of “Maximum Credit” in its entirety and substituting in lieu thereof the following new definition: 
  
 “Maximum Credit” shall mean $1,600,000,000.00, as reduced in accordance with Section 2.1
hereof. 
  
 SECTION 2. Conditions Precedent. This
Amendment shall become effective on the date (the “Amendment Effective Date”) on which the following conditions precedent shall have been satisfied: 
  
 2.01 Delivered Documents. On the Amendment Effective Date, the Lender shall have received the following documents,
each of which shall be satisfactory to the Lender in form and substance: 
  

 (a) Amendment. This Amendment, executed and delivered by a duly authorized officer
of each of the Borrowers and acknowledged and agreed to by a duly authorized officer of the Guarantor; 
  
 (b) Note. The Amended and Restated Promissory Note, substantially in the form of Exhibit A attached hereto, duly completed,
executed and delivered by each of the Borrowers; 
  
 (c) Secretary’s Certificates. A certificate of the Secretary or Assistant Secretary of each Borrower and the Guarantor, substantially in the form of Exhibit B hereto, dated as of the date hereof, and certifying (i) that
since the Effective Date of the Loan Agreement there have been no changes to any of the organizational documents of such Person and (ii) as to the incumbency and specimen signature of each officer executing this Amendment; and 
  
 (d) Other Documents. Such other documents as the
Lender or counsel to the Lender may reasonably request. 
  
 2.02
No Default. On the Amendment Effective Date and on the date set forth above, (i) each of the Borrowers shall be in compliance with all the terms and provisions set forth in the Existing Loan Agreement on its part to be observed or performed,
(ii) the representations and warranties made and restated by each Borrower pursuant to Section 3 of this Amendment shall be true and complete on and as of such date with the same force and effect as if made on and as of such date, and (iii) no
Default or Event of Default shall have occurred and be continuing on such date. 
  
 SECTION 3. Representations and Warranties. Each Borrower hereby represents and warrants to the Lender that it is in compliance with all the terms and provisions set forth in the Loan Documents on its
part to be observed or performed, and that no Default or Event of Default has occurred and is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 6 of the Loan Agreement. 
  
 SECTION 4. Limited Effect. Except as expressly amended, waived
or modified by this Amendment, the Existing Loan Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms; provided, however, that reference therein and herein to the “Loan
Documents” shall be deemed to include, in any event, (i) the Existing Loan Agreement, (ii) this Amendment, (iii) the Note, (iv) the Custodial Agreement, (v) the Control Agreement and (vi) the New Century Guaranty. Each reference to the Loan
Agreement in any of the Loan Documents shall be deemed to be a reference to the Loan Agreement as amended hereby. 
  
 SECTION 5. 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. The executed signature pages for this Amendment may be delivered by facsimile transmission (or telecopier), which shall be effective between the
parties and shall have the same force and effect as the execution and delivery of original signature pages. 
  

 SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 [SIGNATURES FOLLOW] 
  
  

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

	 BORROWERS
  
 NC CAPITAL CORPORATION

		
	 By:
	 	 /s/    KEVIN CLOYD

	 	 	 Name:    Kevin Cloyd
 Title:    President
	 	 
	
	NEW CENTURY MORTGAGE CORPORATION
		
	 By:
	 	 /s/    KEVIN CLOYD

	 	 	 Name:    Kevin Cloyd
 Title:    Senior Vice President
	 	 
	
	 LENDER

	
	MORGAN STANLEY MORTGAGE CAPITAL INC.
		
	 By:
	 	 /s/    PAUL J. NAJARDAN

	 	 	 Name:    Paul J. Najardan
 Title:    Vice President
	 	 

  
 Acknowledged and agreed to: 
  
 GUARANTOR 
  
 NEW CENTURY FINANCIAL CORPORATION 

 

		
	 By:
	 	 /s/    PATRICK FLANAGAN

	 	 	 Name:    Patrick Flanagan
 Title:    Executive Vice President

  

 Exhibit A 
  

FORM OF AMENDED AND RESTATED NOTE 
  
 (See Attached) 
  

 AMENDED AND RESTATED PROMISSORY NOTE 
  

	 $1,600,000,000
	 	 June 20, 2003
 amended and restated as of September 15, 2003
 New York, New
York

  
 FOR VALUE RECEIVED, NC
CAPITAL CORPORATION (“NC Capital”), a California corporation, and NEW CENTURY MORTGAGE CORPORATION, a California corporation (“New Century” and together with NC Capital, each a “Borrower” and
collectively, the “Borrowers”), hereby promise to pay, jointly and severally, to the order of MORGAN STANLEY MORTGAGE CAPITAL INC. (the “Lender”) at the principal office of the Lender at 1221 Avenue of the Americas,
27th Floor, New York, New York, 10020, in lawful money of the United States, and in immediately available funds, the principal sum of ONE BILLION SIX HUNDRED MILLION DOLLARS ($1,600,000,000) (or such lesser amount as shall equal the aggregate unpaid
principal amount of the Loans made by the Lender to the Borrowers under the Loan Agreement referred to below), on the dates and in the principal amounts provided in the Loan Agreement, and to pay interest on the unpaid principal amount of each such
Loan, at such office, in like money and funds, for the period commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Loan Agreement. Capitalized terms used but not defined
herein shall have the meanings specified in the Loan Agreement referred to below. 
  
 Pursuant to and subject to the terms of the Loan Agreement, the Borrowers may borrow, repay and reborrow funds until December 13, 2003 or such earlier date on which the Loan Agreement shall terminate in accordance
with the provisions of the Loan Agreement or by operation of law (the “Termination Date”). In all events, the Borrowers shall repay the aggregate outstanding principal amount of all Loans plus all accrued interest thereon on the
Termination Date. 
  
 Pursuant to the Loan Agreement, from time to
time the Borrowers will be required to pledge additional Collateral or to prepay Loans to cure a Borrowing Base Deficiency. 
  
 The date, amount and interest rate of each Loan made by the Lender to the Borrowers, and each payment made on account of the principal thereof, shall be
recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof, provided, that the failure of the Lender to make any such recordation or endorsement
shall not affect the obligations of the Borrowers to make a payment when due of any amount owing under the Loan Agreement or hereunder in respect of the Loans made by the Lender. 
  
 This Amended and Restated Promissory Note (this “Note”) is the Note referred to in the Amended and Restated
Master Loan and Security Agreement, dated as of June 20, 2003 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Existing Loan Agreement”; as amended by Amendment No. 1, dated as of September
15, 2003, and as further amended, restated, supplemented or otherwise modified and in effect from time to time, 
  

 the “Loan Agreement”), among the Borrowers and the Lender, and evidences the Loans made by the Lender
thereunder. 
  
 This Note amends and restates in its entirety the
promissory note made by the Borrowers in favor of the Lender pursuant to the Existing Loan Agreement in a maximum principal amount of $1,300,000,000 (the “Existing Promissory Note”) and this Note is given by the Borrowers as a
continuation, rearrangement and extension, and not a novation, release or satisfaction of the Existing Promissory Note. The Borrowers hereby acknowledge and agree that simultaneously with the Borrowers’ execution and delivery of this Note to
the Lender, the Lender has delivered to the Borrowers the Existing Promissory Note. 
  
 The Borrowers agree, jointly and severally, to pay all the Lender’s costs of collection and enforcement (including reasonable attorneys’ fees and disbursements of Lender’s counsel) in respect of this
Note when incurred, including, without limitation, reasonable attorneys’ fees through appellate proceedings. 
  
 Notwithstanding the pledge of the Collateral, each Borrower hereby acknowledges, admits and agrees that each Borrower’s obligations under this Note
are recourse obligations of the Borrower to which each Borrower pledges its full faith and credit. 
  
 The Borrowers, and any endorsers or guarantors hereof, (a) severally waive diligence, presentment, protest and demand and also notice of protest, demand,
dishonor and nonpayments of this Note, (b) expressly agree that this Note, or any payment hereunder, may be extended from time to time, and consent to the acceptance of further Collateral, the release of any Collateral for this Note, the release of
any party primarily or secondarily liable hereon, and (c) expressly agree that it will not be necessary for the Lender, in order to enforce payment of this Note, to first institute or exhaust the Lender’s remedies against the Borrowers or any
other party liable hereon or against any Collateral for this Note. No extension of time for the payment of this Note, or any installment hereof, made by agreement by the Lender with any person now or hereafter liable for the payment of this Note,
shall affect the liability under this Note of the Borrowers, even if the Borrowers are not a party to such agreement; provided, however, that the Lender and the Borrowers, by written agreement between them, may affect the liability of the Borrowers.

  
 Any reference herein to the Lender shall be deemed to include
and apply to every subsequent holder of this Note. Reference is made to the Loan Agreement for provisions concerning optional and mandatory prepayments, Collateral, acceleration and other material terms affecting this Note. 
  
 This Note shall be governed by and construed under the laws of the State
of New York whose laws the Borrowers expressly elect to apply to this Note. The Borrowers agree that any action or proceeding brought to enforce or arising out of this Note may, be commenced in the Supreme Court of the State of New York, Borough of
Manhattan, or in the District Court of the United States for the Southern District of New York. 
  

	
	NC CAPITAL CORPORATION
		
	 By:
	 	

	 	 	 Name:
 Title:
	 	 
	
	NEW CENTURY MORTGAGE CORPORATION
		
	 By:
	 	

	 	 	 Name:
 Title:
	 	 

  

 SCHEDULE OF LOANS 
  

This Note evidences Loans made under the within-described Loan Agreement to the Borrowers, on the dates, in the principal amounts and bearing interest
at the rates set forth below, and subject to the payments and prepayments of principal set forth below: 
  

	Date
Made

	 	Principal
Amount of Loan

	 	Interest Rate

	 	 Amount Paid
 or Prepaid

	 	Unpaid
Principal
Amount

	 	Notation
Made by

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  
  

 Exhibit B 
  

FORM OF SECRETARY’S CERTIFICATE 
  
 Pursuant to Section 2.1(c) of Amendment No. 1, dated as of September 15, 2003 (the “Amendment”), to the Amended and Restated Master Loan
and Security Agreement, dated as of June 20, 2003 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”; capitalized terms used but not otherwise defined herein shall have
the meanings assigned thereto by the Loan Agreement) by and among NC CAPITAL CORPORATION, a California corporation (“NC Capital”), NEW CENTURY MORTGAGE CORPORATION, a California corporation (“New Century” and
together with NC Capital, each a “Borrower” and collectively, the “Borrowers”), and MORGAN STANLEY MORTGAGE CAPITAL INC., a New York corporation (the “Lender”), and guaranteed by New Century
Financial Corporation, a Delaware corporation (“NC Financial”), the undersigned hereby certifies on behalf of [NC Capital / New Century / NC Financial] as follows: 
  
 (a) Since the Effective Date of the Loan Agreement there have been no changes to any of the organizational documents of
[NC Capital / New Century / NC Financial] and each such document remains in full force and effect as of the date hereof; and 
  
 (b) The following named individuals are duly elected, qualified and acting officers of [NC Capital / New Century / NC Financial], each such
individual holding the office(s) set forth opposite his respective name as of the date hereof, and the signatures set forth beside the respective name and title of said officers and authorized signatories are true, authentic signatures: 

 

	 Name

	 	 Title

	 	 Signature

	  

	 	  

	 	  

  
 IN WITNESS WHEREOF,
the undersigned has hereunto executed this Secretary’s Certificate as of this              day of September, 2003. 
  

		
	 By:
	 	

	 	 	 Name:
 Title:
	 	 

  
 The undersigned,
                                        
                                        
        , does hereby certify that s/he is the duly elected and presently incumbent
                                        
                 of [NC Capital / New Century / NC Financial] and in such capacity does hereby certify to the Lender that
                                        
                 is the duly elected and presently incumbent Secretary of [NC Capital / New Century / NC Financial]. 
  

		
	 By:
	 	

	 	 	 Name:
 Title:Amend. #1 to Amended & Restated Guaranty

 Exhibit 10.2 
  
 AMENDMENT NO. 1 
 TO THE AMENDED AND RESTATED GUARANTY 
  
 AMENDMENT
NO. 1, dated as of September 18, 2003 (this “Amendment”), to the Amended and Restated Guaranty, dated as of June 20, 2003 (the “Existing Guaranty”; as amended hereby and as further amended, restated, supplemented or
otherwise modified and in effect from time to time, the “New Century Guaranty”) by and between NEW CENTURY FINANCIAL CORPORATION, a Delaware corporation (the “Guarantor”), and MORGAN STANLEY MORTGAGE CAPITAL INC., a
New York corporation (the “Lender”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Loan Agreement. 
  
 RECITALS 
  
 The Guarantor has unconditionally and absolutely guaranteed to the Lender and its successors and assigns the full and prompt payment of all amounts due
and owing to the Lender by NC Capital Corporation, a California corporation (“NC Capital”) and New Century Mortgage Corporation, a California corporation (“New Century” and together with NC Capital, each a
“Borrower” and collectively, the “Borrowers”) under that certain Amended and Restated Master Loan and Security Agreement, dated as of June 20, 2003 (as amended, restated, supplemented or otherwise modified and in effect
from time to time, the “Loan Agreement”). 
  
 The
Guarantor and the Lender have agreed, subject to the terms and conditions of this Amendment, that the Existing Guaranty shall be amended in accordance with 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 Guarantor and the Lender hereby agree as follows: 
  
 Section 1. Amendment. Section 11(x) of the Existing Guaranty is hereby deleted in its entirety and the following new Section 11(x) is inserted in lieu thereof: 
  
 “(x) Maintenance of Ratio of Total Indebtedness to
Tangible Net Worth. The Guarantor shall not permit its ratio of Total Indebtedness to Tangible Net Worth at any time to be greater than 10.0:1.0.” 
  
 Section 2. Conditions Precedent. This Amendment shall become effective on the date (the “Amendment Effective Date”) on
which the following conditions precedent shall have been satisfied: 
  
 2.01 Delivered Documents. On the Amendment Effective Date, the Lender shall have received the following documents, each of which shall be satisfactory to the Lender in form and substance: 
  
 (a) Amendment. This Amendment, executed and delivered
by a duly authorized officer of the Guarantor; 

 (b) Secretary’s Certificates. A certificate of the Secretary or Assistant
Secretary of the Guarantor, substantially in the form of Exhibit A hereto, dated as of the date hereof, and certifying (i) that since the Effective Date of the Guaranty there have been no changes to any of the organizational documents of the
Guarantor and (ii) as to the incumbency and specimen signature of each officer executing this Amendment; and 
  
 (c) Other Documents. Such other documents as the Lender or counsel to the Lender may reasonably request. 
  
 2.02 No Default. On the Amendment Effective Date and on the date set
forth above, (i) the Guarantor shall be in compliance with all the terms and provisions set forth in the New Century Guaranty on its part to be observed or performed, (ii) the representations and warranties made and restated by the Guarantor
pursuant to Section 3 of this Amendment shall be true and complete on and as of such date with the same force and effect as if made on and as of such date, and (iii) no Default or Event of Default shall have occurred and be continuing on such date.

  
 Section 3. Representations and Warranties. The
Guarantor hereby represents and warrants to the Lender that it is in compliance with all the terms and provisions set forth in the Loan Documents on its part to be observed or performed, and that no Default or Event of Default has occurred and is
continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 10 of the New Century Guaranty. 
  
 Section 4. Limited Effect. Except as expressly amended, waived or modified by this Amendment, the Existing Guaranty shall continue to be,
and shall remain, in full force and effect in accordance with its terms; provided, however, that reference therein and herein to the “Loan Documents” shall be deemed to include, in any event, (i) the Existing Loan Agreement,
(ii) Amendment No. 1 to the Amended and Restated Master Loan and Security Agreement, dated as of September 15, 2003, (iii) the Note, (iv) the Custodial Agreement, (v) the Control Agreement, (vi) the New Century Guaranty and (vii) this Amendment.
Each reference to the Loan Agreement in any of the Loan Documents shall be deemed to be a reference to the Loan Agreement as amended hereby. 
  
 Section 5. 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. The executed signature pages for this Amendment may be delivered by facsimile transmission (or telecopier), which shall be effective between the
parties and shall have the same force and effect as the execution and delivery of original signature pages. 
  
 Section 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK. 
  
 [Signatures Follow] 
  

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

	 GUARANTOR 
  

	 NEW CENTURY FINANCIAL CORPORATION
  

		
	 By:
	 	 /s/    PATRICK FLANAGAN

	 	 	 Name:    Patrick Flanagan
 Title:    Executive Vice President

  
  

	 LENDER 
  

	 MORGAN STANLEY MORTGAGE CAPITAL INC. 
  

		
	 By:
	 	 /s/    ANDREW B. NEUBERGER

	 	 	 Name:    Andrew B. Neuberger
 Title:    Vice President

 Exhibit A 
  

FORM OF SECRETARY’S CERTIFICATE 
  
 Pursuant to Section 2.01(b) of Amendment No. 1, dated as of September         , 2003 (the
“Amendment”), to the Amended and Restated Guaranty, dated as of June 20, 2003 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “New Century Guaranty”; capitalized terms
used but not otherwise defined herein shall have the meanings assigned thereto by the New Century Guaranty) by and between NEW CENTURY FINANCIAL CORPORATION, a Delaware corporation (the “Guarantor”), and MORGAN STANLEY MORTGAGE
CAPITAL INC., a New York corporation (the “Lender”), the undersigned hereby certifies on behalf of the Guarantor as follows: 
  
 (a) Since the Effective Date of the Loan Agreement there have been no changes to any of the organizational documents of the Guarantor and each such
document remains in full force and effect as of the date hereof; and 
  
 (b) The following named individuals are duly elected, qualified and acting officers of the Guarantor, each such individual holding the office(s) set forth opposite his respective name as of the date hereof, and the signatures set forth
beside the respective name and title of said officers and authorized signatories are true, authentic signatures: 
  

	 Name

	 	 Title:

	 	 Signature

	  

	 	  

	 	  

  
 IN WITNESS WHEREOF,
the undersigned has hereunto executed this Secretary’s Certificate as of this              day of September, 2003. 
  
  

		
	 By:
	 	  

	 	 	 Name:
 Title:

  
 The undersigned,
                                        
        , does hereby certify that s/he is the duly elected and presently incumbent
                             of New Century Financial Corporation and in such capacity does hereby
certify to the Lender that
                                        
is the duly elected and presently incumbent Secretary of New Century Financial Corporation. 
  
  

		
	 By:
	 	  

	 	 	 Name:
 Title:

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