Document:

Amended and Joinder to 3rd Amended and Restated Repurchase Agmt.

 Exhibit 10.2 
  
 EXECUTION COPY 
  
 AMENDMENT AND JOINDER TO THIRD AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT 
  
 Amendment and Joinder to Third Amended and Restated Master Repurchase Agreement, dated as of September 29, 2004
(“Amendment and Joinder”), among CDC Mortgage Capital Inc., a New York corporation, having an address at 9 West 57th Street, 36th Floor, New York, New York 10019 (“Buyer”), and New Century Mortgage
Corporation, a California corporation, having an address at 18400 Von Karman, Suite 1000, Irvine, California 92612 (“NCMC”), NC Residual II Corporation, a Delaware corporation, having an address at 18400 Von Karman, Suite 1000,
Irvine, California 92612 (“NCRC”), NC Capital Corporation, a California corporation, having an address at 18400 Von Karman, Suite 1000, Irvine, California 92612 (“NCCC”) and New Century Credit Corporation, a
California corporation, having an address at 18400 Von Karman, Suite 1000, Irvine, California 92612 (“New Century”, and together with NCMC, NCCC and NCRC, “Seller”). 
  
 W I T N E S S E
T H: 
  
 WHEREAS, Buyer, NCMC, NCCC, and NCRC are
parties to that certain Third Amended and Restated Master Purchase Agreement, dated as of September 10, 2004 (the “Existing Repurchase Agreement,” and as amended by this Amendment and Joinder, as may be amended from time to time, the
“Repurchase Agreement”); 
  
 WHEREAS, at the
present time, Buyer, NCMC, NCCC, and NCRC desire to amend the Existing Repurchase Agreement to permit New Century to become an additional Seller thereunder, as well as to modify certain other provisions therein; 
  
 WHEREAS, it is a condition precedent to this Amendment and Joinder that upon
completion of the Merger Transaction as defined below the Guarantor shall have executed and delivered a new Guarantee of the Repurchase Agreement, whereupon New Century TRS Holdings, Inc., f/k/a New Century Financial Corporation, a Delaware
corporation shall be released from its obligations under the existing guarantee. 
  
 NOW, THEREFORE, in consideration of the premises and mutual agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer, NCMC, NCCC,
NCRC, and New Century agree as follows: 
  
 SECTION 1. Defined
Terms. Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Repurchase Agreement. 
  
 (a) Section 2 of the Repurchase Agreement is hereby amended by deleting the definition of Guarantee and Guarantor and replacing them with the following:

  
 “Guarantee” shall mean the guarantee dated as
of September 29, 2004, as may be amended from time to time, made by Guarantor in favor of Buyer. 
  

 “Guarantor” shall mean New Century Financial Corporation, f/k/a, New Century REIT, Inc.,
a Maryland corporation. 
  
 (b) The Repurchase Agreement is hereby
amended by inserting the following definition: 
  
 “Merger
Transaction” shall mean the reorganization of New Century Financial Corporation (“NCFC”) and New Century REIT Inc., a Maryland corporation (“New Century REIT”), through the merger of NCFC and NC Merger Sub, Inc., a
wholly-owned subsidiary of New Century REIT, with and into NCFC, resulting in New Century REIT becoming the parent company of NCFC. 
  
 SECTION 2. Agreement and Joinder. New Century hereby agrees to all of the provisions of the Repurchase Agreement, and effective on the date hereof,
becomes a party to the Repurchase Agreement, as a seller, with the same effect as if New Century were an original signatory to the Repurchase Agreement. All references to Seller in the Repurchase Agreement shall be deemed to include New Century.

  
 SECTION 3. Representations and Covenants. New Century
hereby represents and warrants that the representations of Seller contained in Section 10 of the Repurchase Agreement and the covenants of Seller contained in Section 11 of the Repurchase Agreement are true and correct on and as of the date of this
Amendment and Joinder. 
  
 SECTION 4. Amendments. The
Repurchase Agreement is hereby amended as follows: 
  
 1. The
Repurchase Agreement is hereby amended to delete Section 10(w) in its entirety and insert the following: 
  
 “(w) REIT. Neither NCRC or the Guarantor have engaged in any material “prohibited transactions” as defined in Section
857(b)(6)(B)(iii) and (C) of the Code. Each of NCRC and the Guarantor for their current “tax year” (as defined in the Code) are and for all prior tax years subsequent to their election to be a real estate investment trust have been
entitled to a dividends paid deduction under the requirements of Section 857 of the Code with respect to any dividends paid by it with respect to each such year for which it claims a deduction in their Form 1120-REIT filed with the United States
Internal Revenue Service for such year.” 
  
 2. The
Repurchase Agreement is hereby amended to delete each of Sections 12(n) and 12(o) in their entirety and insert the following: 
  
 “(n) upon the failure of NCRC or the Guarantor to at any time to continue to be (i) qualified as a real estate investment trust as
defined in Section 856 of the Code and (ii) entitled to a dividend paid deduction under Section 857 of the Code with respect to dividends paid by it with respect to each taxable year for which it claims a deduction on its Form 1120 – REIT filed
with the United States Internal Revenue Service for such year, or the entering into by NCRC or the Guarantor of any material “prohibited transactions” as defined in Sections 857(b) and 856(c) of the Code; 
  

 (o) upon the failure by NCRC or the Guarantor to satisfy any of the following asset or
income tests: 
  
 (1) At the close of each
taxable year, at least 75 percent of such Person’s gross income consists of (i) “rents from real property” within the meaning of Section 856(c)(3)(A) of the Code, (ii) interest on obligations secured by mortgages on real property or
on interests in real property, within the meaning of Section 856(c)(3)(B) of the Code, (iii) gain from the sale or other disposition of real property (including interests in real property and interests in mortgages on real property) which is not
property described in Section 1221(a)(1) of the Code, within the meaning of Section 856(c)(3)(C) of the Code, (iv) dividends or other distributions on, and gain (other than gain from “prohibited transactions” within the meaning of Section
857(b)(6)(B)(iii) of the Code) from the sale or other disposition of, transferable shares (or transferable certificates of beneficial interest) in other qualifying REITs within the meaning of Section 856(d)(3)(D) of the Code, and (v) amounts
described in Sections 856(c)(3)(E) through 856(c)(3)(I) of the Code. 
  
 (2) At the close of each taxable year, at least 95 percent of such Person’s gross income consists of (i) the items of income described in paragraph 1 hereof (other than those described in Section 856(c)(3)(I) of
the Code), (ii) gain realized from the sale or other disposition of stock or securities which are not property described in Section 1221(a)(1) of the Code, (iii) interest, (iv) dividends, and (v) income derived from payments to such Person’s on
interest rate swap or cap agreements, options, futures contracts, forward rate agreements and other similar financial instruments entered into to reduce the interest rate risks with respect to any indebtedness incurred or to be incurred to acquire
or carry real estate assets, or gain from the sale or other disposition of such an investment as described in section 856(c)(5)(G), in each case within the meaning of Section 856(c)(2) of the Code. 
  
 (3) At the close of each quarter of such Person’s
taxable years, at least 75 percent of the value of such Person’s total assets (as determined in accordance with Treasury Regulations Section 1.856-2(d)) has consisted of and will consist of real estate assets within the meaning of Sections
856(c)(4) and 856(c)(5)(B) of the Code, cash and cash items (including receivables which arise in the ordinary course of such Person’s operations, but not including receivables purchased from another person), and government securities.

  
 (4) At the close of each quarter of each of
such Person’s taxable years, (i) not more than 25 percent of such Person’s total asset value will be represented by securities (other than those described in paragraph 3), (ii) not more than 20 percent of such Person’s total asset
value will be represented by securities of one or more taxable REIT subsidiaries, and (iii) (a) not more than 5 percent of the value of such Person’s total assets will be represented by securities of any one issuer (other than Government
securities and securities of taxable REIT subsidiaries), and (b) such Person’s will not hold securities possessing more than 10 percent of the total voting power or value of the outstanding securities of any one issuer (other than government
securities, securities of taxable REIT subsidiaries, and securities of a qualified REIT subsidiary within the meaning of Section 856(i) of the Code).” of any of the REIT qualification tests pursuant to Section 856(c) of the Code.”

  

 3. The Repurchase Agreement is hereby amended to delete Section 11 (m) in its entirety and insert the
following: 
  
 “(m) Maintenance of Tangible
Net Worth. Guarantor will at all times during each fiscal year maintain Tangible Net Worth of not less than the sum of (1) $750,000,000, and (2) fifty percent (50%) of all increases in shareholders’ equity in the Guarantor attributable to
issuances of common stock since October 1, 2004.” 
  
 SECTION
5. Effectiveness. 
  
 The closing for the amendment
of the Repurchase Agreement shall be subject to the condition precedent that (a) the Merger Transaction shall have been completed and (b) each of Guarantor, Seller and Buyer shall have executed and delivered the related closing documents as
specified below, duly executed by all signatories as required pursuant to the respective terms thereof: 
  
 1. this Amendment and Joinder; 
  
 2. an Opinion of Counsel of each Seller and the Guarantor, substantially in the form attached to the Repurchase Agreement. 
  
 3. the Second Amendment and Joinder to Custodial and Disbursement Agreement;

  
 4. the Amendment and Joinder to Account Agreement; 

 
 5. the Guarantee; 
  
 6. a Secretary’s Certificate of each Seller and the Guarantor, including
a good standing certificate and certified copies of the charter and by-laws (or equivalent documents) of each Seller or Guarantor as applicable, and of all corporate or other authority for each Seller or Guarantor as applicable, with respect to the
execution, delivery and performance of the Amendment and Joinder and the Guarantee and each other document to be delivered by each Seller or Guarantor, as applicable in connection herewith; 
  
 7. a UCC-1 financing statement with respect to New Century; and 

 
 8. such other documents as Buyer may request. 
  
 SECTION 6. Further Assurances. Seller hereby covenants and agrees with
Buyer that, from and after the date hereof, until the Repurchase Agreement is terminated, at any time and from time to time, upon the written request of Buyer, and at the sole expense of Seller, Seller will promptly and duly execute and deliver such
further instruments and documents and take such further actions as Buyer may reasonably request in order to effect the transactions contemplated hereby and to preserve the full benefits of the Repurchase Agreement and the rights and powers therein
granted. 
  

 SECTION 7. Limited Effect. Except as expressly amended and modified by this Amendment and Joinder,
the Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 8. Counterparts. This Amendment and Joinder 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. 
  
 SECTION 9. GOVERNING LAW. THIS AMENDMENT AND JOINDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 IN WITNESS WHEREOF, Buyer and Seller have caused their names to be duly signed hereto by their respective
officers thereunto duly authorized, all as of the date first above written. 
  

					
	CDC MORTGAGE CAPITAL INC.
		
	 By:
	 	 /s/ Anthony Malanga

	 	 	 Name: Anthony Malanga

	 	 	 Title:
	 	 Managing Director

		
	 By:
	 	 /s/ Kathy Lynch

	 	 	 Name: Kathy Lynch

	 	 	 Title: Director

  

					
	NEW CENTURY MORTGAGE CORPORATION
		
	 By:
	 	 /s/ Kevin Cloyd

	 	 	 Name: Kevin Cloyd

	 	 	 Title: Executive Vice President

	
	NC CAPITAL CORPORATION
		
	 By:
	 	 /s/ Kevin Cloyd

	 	 	 Name: Kevin Cloyd

	 	 	 Title: President

	
	NC RESIDUAL II CORPORATION
		
	 By:
	 	 /s/ Kevin Cloyd

	 	 	 Name: Kevin Cloyd

	 	 	 Title: Executive Vice President

  

					
	 NEW CENTURY CREDIT CORPORATION

		
	 By:
	 	 /s/ Kevin Cloyd

	 	 	 Name: Kevin Cloyd

	 	 	 Title: Executive Vice President

  
 Acknowledged and Agreed:

  

			
	 NEW CENTURY FINANCIAL CORPORATION,

	 as Guarantor

		
	 By:
	 	 /s/ Kevin Cloyd

	 Name:
	 	 Kevin Cloyd

	 Title:
	 	 Executive Vice PresidentAmendment and Joinder #3 to Master Repurchase Agmt., dated as of 10/01/2004

 Exhibit 10.3 
  
 AMENDMENT AND JOINDER NO. 3 
 TO 
 MASTER REPURCHASE AGREEMENT 
  
 THIS AMENDMENT AND JOINDER NO. 3, made as of October 1, 2004 (“Amendment No. 3”), by and among BEAR STEARNS
MORTGAGE CAPITAL CORPORATION (the “Buyer”), NC CAPITAL CORPORATION (“NC Capital”), NC RESIDUAL II CORPORATION (“NC Residual”) and NEW CENTURY CREDIT CORPORATION (“NC Credit”, and together with NC Capital and
NC Residual, each a “Seller” and collectively the “Sellers”). 
  
 R E C I T A L S 
  
 WHEREAS, Buyer and NC Capital have previously entered into a Master Repurchase Agreement, dated as of October 31, 2003, as amended by Amendment No.1 to the Master Repurchase Agreement, dated as of January 14, 2004 (as amended, the
“Repurchase Agreement”); 
  
 WHEREAS, Buyer, NC Capital
and NC Residual have previously entered into Amendment No. 2 to Master Repurchase Agreement, dated as of June 29, 2004 (the Repurchase Agreement as so amended is hereinafter referred to as the “Agreement”); 
  
 WHEREAS, Buyer, NC Capital, NC Residual and NC Credit desire that NC Credit
be added as a Seller under the Agreement to be jointly and severally liable with NC Capital and NC Residual for all obligations of any Seller; 
  
 WHEREAS, NC Capital, NC Residual and NC Credit desire, and Buyer agrees, to substitute New Century REIT, Inc., as the Guarantor under the Agreement as
hereby amended; and 
  
 WHEREAS, the parties acknowledge that New
Century REIT, Inc., as successor in interest to New Century Financial Corporation, is the Guarantor under the Agreement; 
  
 NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  
 Section 1. Definitions. Capitalized terms used herein and not otherwise defined shall have the meanings assigned in the Agreement. Capitalized terms used in the Agreement whose definitions are modified in this
Amendment No. 3 shall, for all purposes of the Agreement, be deemed to have such modified definitions. 
  
 Section 2. Conditions Precedent. Buyer shall receive from Seller, simultaneously with the effectiveness of this Amendment No. 3, the following
documents: 
  

	 	(a)	The Guaranty of Guarantor in substantially the form attached hereto as Exhibit A; and 

  

	 	(b)	An opinion of counsel to Sellers and Guarantor substantially in the form of the opinion delivered under the Repurchase Agreement with such changes as are reasonably necessary to
contemplate the addition of NC Credit as a Seller and the execution of this Amendment No. 3. 

  
 Section 3. Agreement and Joinder. NC Credit hereby agrees to all of the provisions of the Agreement as amended hereby and, effective on the date
hereof, becomes a party to the Agreement as amended hereby, as a Seller, with the same effect as if NC Credit were an original signatory to the Agreement (as subsequently amended hereby). 
  
 Section 4. References to Seller. All references to Seller in the Agreement, as amended hereby, are hereby amended to
mean the Sellers, jointly and severally, unless the context clearly requires otherwise. 
  
 Section 5. Joint and Several Liability of Sellers. Each Seller agrees to be jointly and severally liable for the obligations of each Seller hereunder and all representations, warranties, covenants and
agreements made by or on behalf of each Seller in the Agreement or in any exhibit hereto or any document, instrument or certificate delivered pursuant hereto shall be deemed to have been made by each Seller, jointly and severally. Each Seller
further agrees that, notwithstanding any right of Buyer to investigate fully the affairs of a Seller and notwithstanding any knowledge of facts determined or determinable by Buyer, Buyer has the right to rely fully on the representations,
warranties, covenants and agreements of each Seller contained in the Agreement and upon the accuracy of any document, instrument, certificate or exhibit given or delivered hereunder. The joint and several obligation of each Seller hereunder is
absolute, unconditional, irrevocable, present and continuing and, with respect to any payment to be made to Buyer, is a guaranty of payment (and not of collectability) and is in no way conditional or contingent upon the continued existence of the
other Sellers and is not and will not be subject to any setoffs. Any notice or other communication provided to a Seller pursuant hereto shall be deemed to have been given each Seller and failures to be sent any notice or communication contemplated
hereby shall not relieve a Seller from its joint and several liability for the obligations of each Seller hereunder. 
  
 Section 6. Reference to Guarantor and Guaranty. All references in the Agreement, as amended hereby, (i) to Guarantor shall mean New Century REIT,
Inc. and (ii) to Guaranty shall mean the Guaranty in the form attached hereto as Exhibit A. Buyer hereby agrees to accept such Guaranty in place of any prior guaranty delivered under the Agreement. 
  
 Section 7. Financial Covenants. Clause (i) of Exhibit G to the
Repurchase Agreement is hereby amended and restated as follows: 
  

	 	(i)	Maintain, as of the last day of each of its fiscal quarters, a Tangible Net Worth not less than the sum of (1) $750,000,000 and (2) fifty percent (50%) of all increases in
shareholders’ equity in Guarantor attributable to issuances of common stock since October 1, 2004 (i.e. the day after the capital issuance closes). 

  

 2 

 Section 8. Notices and Other Communications. Paragraph 14 of the Agreement shall be amended to add
the following address for notice for NC Credit: 
  
 New Century
Credit Corporation 
 18400 Von Karman 
 Suite 1000 
 Irvine, California 92612 
 Attention: Rick Holguin 
 Telephone: (949) 250-5143 
 Telecopy: (949) 224-5750 
  
 Section 9. Expenses. Sellers shall pay on demand all fees and expenses (including, without limitation, the fees and expenses for legal services of
any kind whatsoever) incurred by Buyer in connection with this Amendment No. 3. The obligation of Sellers to pay such fees and expenses incurred prior to or in connection with the termination of the Agreement as amended by this Amendment No. 3 shall
survive such termination. 
  
 Section 10. Governing Law.
This Amendment No. 3 shall be governed and construed in accordance with the laws of the State of New York applicable to agreements made and entirely performed therein. 
  
 Section 11. Interpretation. The provisions of the Agreement shall be read so as to give effect to the provisions of
this Amendment No. 3. 
  
 Section 12. Counterparts. This
Amendment No. 3 may be executed in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute but one and the same instrument. 
  
 Section 13. Ratification and Confirmation. As amended by this
Amendment No. 3, the Agreement is hereby in all respects ratified and confirmed, and the Agreement as amended by this Amendment No. 3 shall be read, taken and construed as one and the same instrument. 
  

 3 

 IN WITNESS WHEREOF, Buyer and Sellers have caused their names to be signed hereto by their respective
officers thereunto duly authorized, all as of the date first above written. 
  

			
	 BEAR STEARNS MORTGAGE CAPITAL CORPORATION, as Buyer

		
	By:	 	/s/ Paul Friedman
	 Name:
	 	Paul Friedman
	 Title:
	 	Senior Managing Director

  

			
	 NC CAPITAL CORPORATION, as Seller

		
	By:	 	/s/ Kevin Cloyd
	 Name:
	 	Kevin Cloyd
	 Title:
	 	President

  

			
	 NC RESIDUAL II CORPORATION, as Seller

		
	By:	 	/s/ Kevin Cloyd
	 Name:
	 	Kevin Cloyd
	 Title:
	 	Executive Vice President

  

			
	 NEW CENTURY CREDIT CORPORATION, as Seller

		
	By:	 	/s/ Kevin Cloyd
	 Name:
	 	Kevin Cloyd
	 Title:
	 	Executive Vice President

  
 ACKNOWLEDGED AND AGREED:

  

			
	 NEW CENTURY MORTGAGE CORPORATION, as Servicer

		
	By:	 	/s/ Kevin Cloyd
	 Name:
	 	Kevin Cloyd
	 Title:
	 	Executive Vice President

  

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