Document:

Amendment No. 2 to the Letter Agreement

EXHIBIT 10.2 
 
AMENDMENT NUMBER TWO 
to the 
Letter Agreement 
dated as of January 1, 2002 
by and among 
NEW CENTURY MORTGAGE CORPORATION 
NC CAPITAL CORPORATION 
and 
SALOMON BROTHERS REALTY CORP. 
 
 
This AMENDMENT NUMBER TWO (this “Amendment”)
is made this 30th day of April, 2003, 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 (“NCC”) and CITIGROUP GLOBAL MARKETS REALTY CORP., as sucesssor in interest to
Salomon Brothers Realty Corp., having an address at 390 Greenwich Street, New York, New York 10013 (“CGMRC”) to the LETTER AGREEMENT, dated as of January 1, 2002, among New Century, NCC and Salomon Brothers Realty Corp. (the
“Letter Agreement”). 
RECITALS 
 
WHEREAS, New Century and NCC have requested that CGMRC agree to amend the Letter Agreement to extend the term
thereof and to make such additional modifications to the Letter Agreement as more expressly set forth below and CGMRC has agreed to such request. 
 
WHEREAS, as of the date of this Amendment, each of New Century and NCC represents to CGMRC 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 NCC, New Century and Salomon Brothers Realty Corp. (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 April 30, 2003, Paragraph 2(c) of the Letter Agreement is hereby amended as follows: 
 

	 	(a)	 	The following is added to the definition of HighBalance/High LTV Mortgage Loan in the first paragraph thereof: 

 

	 	 	 	“; or (iii) that is a first lien mortgage loan with a loan-to-value ratio in excess of 95.00% (up to a maximum of 100.00%).” 

 

	 	(b)	 	The following clause (iii) is added immediately after clause (ii), and the current clause (iii) is renumbered as clause (iv): 

 

	 	 	 	“(iii) the maximum Financing Line with respect to first lien Mortgage Loans with loan-to-value ratios in excess of 95.00% (up to a maximum of 100.00%) shall
equal 2% of the maximum amount of the Financing Line;” 

 
SECTION 2.    Fees and Expenses.  NCC agrees to pay to CGMRC all fees and out of pocket expenses incurred by CGMRC in connection with this Amendment (including all reasonable fees and out
of pocket costs and expenses of CGMRC’s legal counsel incurred in connection with this Amendment Number Two), in accordance with Paragraph 5(i) of the Letter Agreement. 
 
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 CGMRC to execute and deliver this Amendment Number Two, each of NCC and New Century hereby represents to CGMRC
that as of the date hereof, after giving effect to this Amendment Number Two, each of NCC 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 Number Two shall become
effective upon the execution hereof by the parties hereto. Except as expressly amended and modified by this Amendment Number Two, the Letter Agreement shall continue in full force and effect in accordance with its terms. Reference to this Amendment
Number Two 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 NUMBER TWO 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
7.    Counterparts.  This Amendment Number Two 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] 
 

-2- 

 
IN WITNESS
WHEREOF, NCC, New Century and CGMRC have caused this Amendment Number Two 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 MITNICK

	 Name:
	 	 Evan Mitnick

	 Title:
	 	 Director 

	
	 NC CAPITAL CORPORATION

	
	 By:
	 	 /s/    PAT FLANAGAN

	 Name:
	 	 Pat Flanagan

	 Title:
	 	 CEO

	
	 NEW CENTURY MORTGAGE CORPORATION

	
	 By:
	 	 /s/    PAT FLANAGAN

	 Name:
	 	 Pat Flanagan

	 Title:
	 	 President

 
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 Number Two. 
 
 

	
	 NEW CENTURY MORTGAGE CORPORATION

	
	 By:
	 	 /s/    PAT FLANAGAN

	 Name:
	 	 Pat Flanagan

	 Title:
	 	 President

 

-3-Amendment No.1 to Master Repurchase Agreement, dated March 27, 2003

EXHIBIT 10.3 
 
AMENDMENT NUMBER ONE 
to 
Master Repurchase Agreement 
dated as of May 13, 2002, 
among 
NEW CENTURY FUNDING A, a Delaware statutory trust, as Seller 
and 
BANK OF
AMERICA, N.A., as Buyer 
 
This AMENDMENT NUMBER
ONE to Master Repurchase Agreement (this “Amendment”), dated as of May 12, 2003 (the “Effective Date”) is entered into between NEW CENTURY FUNDING A, a Delaware statutory trust (“Seller”) and BANK
OF AMERICA, N.A. (“Buyer”). 
 
RECITALS 
 
A.    Seller and Buyer entered into that certain Master Repurchase Agreement dated as of May 13, 2002 (the “Master Repurchase Agreement”). 
 
B.    Seller has requested that Buyer
modify the Master Repurchase Agreement to extend the term thereof and make such other modifications to the Master Repurchase Agreement set forth herein and Buyer has agreed to make such modifications to the Master Repurchase Agreement subject to the
terms of this Amendment. 
 
C.    Seller and Buyer each have agreed to execute and deliver this Amendment on the terms and conditions set forth herein. 
 
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and in the Master Repurchase Agreement, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree to the following: 
 
1.    Miscellaneous.  For all purposes of this Amendment, except as otherwise expressly provided or
unless the context otherwise requires, (a) unless otherwise defined herein, all capitalized terms used herein shall have the meanings attributed to them by the Master Repurchase Agreement, (b) the capitalized terms expressly defined in this
Amendment have the meanings assigned to them in this Amendment and include (i) all genders and (ii) the plural as well as the singular, (c) all references to words such as “herein”, “hereof” and the like shall refer to this
Amendment as a whole and not to any particular article or section within this Amendment, (d) the term “include” and all variations thereon shall mean “include without limitation”, and (e) the term “or” shall include
“and/or”. 
 
2.    Amendments.  Effective as of the Effective Date, the following modifications to the Master Repurchase Agreement shall be made: 

 

	 	A.	 	The definition of “Maximum Aggregate Purchase Price” in Section 2(a) of the Master Repurchase Agreement is modified by deleting the definition in its
entirety and replacing it with the following: 

 

	 	 	 	“Maximum Aggregate Purchase Price” means $750,000,000. 

 

	 	B.	 	Section 2(a) of the Master Repurchase Agreement is modified by adding a new definition of “Non-Recourse Securitization Debt” as follows:

 

	 	 	 	“Non-Recourse Securitization Debt” means the aggregate amount of any Indebtedness that is reflected on the balance sheet of a Guarantor in respect
of obligations incurred pursuant to a securitization transaction, solely to the extent such obligations are secured by the assets securitized thereby and are non-recourse to the Guarantor. 

 

	 	C.	 	Section 18(q) of the Master Repurchase Agreement is modified by deleting the section in its entirety and replacing it with the following: 

 

	 	 	 	q.    at the end of any financial quarter, the ratio of NCMC’s Total Liabilities (less its Non-Recourse Securitization Debt) to Adjusted
Tangible Net Worth is greater than 10:1; or at the end of any financial quarter, the ratio of NCFC’s Total Liabilities (less its Non-Recourse Securitization Debt) to Adjusted Tangible Net Worth is greater than 10:1; or at the end of any
financial quarter, the ratio of NCFC’s Total Adjusted Liabilities (less its Non-Recourse Securitization Debt) to Adjusted Tangible Net Worth is greater than 12:1; 

 

	 	D.	 	Section 18(r) of the Master Repurchase Agreement is modified by deleting each reference to “December 31, 2001” and replace each with “December 31,
2002”. 

 

	 	E.	 	Section 18(t) of the Master Repurchase Agreement is modified by deleting the section in its entirety and replacing it with the following: 

 

	 	 	 	t.    at the end of any financial quarter, the ratio of NCFC’s Total Non-warehouse Debt (less its Non-Recourse Securitization Debt) to
Adjusted Tangible Net Worth is greater than 0.50:1.0 

 

	 	F.	 	Section 27 of the Master Repurchase Agreement is modified by deleting the section in its entirety and replacing it with the following: 

 

	 	 	 	27.    TERMINATION 

 

	 	 	 	This Agreement shall remain in effect until the earlier of (i) May 11, 2004. or (ii) at Buyer’s option upon the occurrence of an Event of Default (such date,
the “Termination Date”). However, no such termination shall affect Seller’s outstanding obligations to Buyer at the time-of such termination. Seller’s obligations to indemnify Buyer pursuant to this Agreement shall survive the
termination hereof. 

 

-2- 

 

	 	G.	 	Section 37 of the Master Repurchase Agreement is modified by deleting the section in its entirety and replacing it with “[RESERVED]”.

 

	 	H.	 	Exhibit A-2 of the Master Repurchase Agreement is modified by adjusting the certification to take into account the changes set forth in 2(C), 2(D) and 2(E) of this
Amendment. 

 
3.    No Other Changes.  Except as expressly modified or amended in this Amendment, all of the terms, covenants, provisions, agreements and conditions of the Master Repurchase Agreement are hereby
ratified and confirmed in every respect and shall remain unmodified and unchanged and shall continue in full force and effect. 
 
4.    Facility Fee.  In consideration of the extension of the term of the Master Repurchase
Agreement, Seller agrees to pay to Buyer on the date of execution of this Amendment, a facility fee in the amount of $937,500, such payment to be made in United States dollars, in immediately available funds, without deduction, set-off or
counterclaim. The Buyer may, in its sole discretion, net such commitment fee from the proceeds of any Purchase Price payable to the Seller. 
 
5.    Representations.  In order to induce the Buyer to execute and deliver this Amendment, the
Seller hereby represents to the Buyer that as of the date hereof, after giving effect to this Amendment, the Seller is in full compliance with all of the terms and conditions of the Master Repurchase Agreement and no default or Event of Default has
occurred and is continuing under the Master Repurchase Agreement. 
 
6.    Counterparts.  This Amendment may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which taken together shall constitute one and the same instrument. 
 
7.    Governing Law; Waiver of Jury Trial.  This Amendment shall be governed by, and 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 conflicts of laws principles. The parties hereto each hereby
waive the right of trial by jury in any litigation arising hereunder. 
 

-3- 

 
IN WITNESS
WHEREOF, the parties hereto have caused their duly authorized officers to execute this Amendment Number One to Master Repurchase Agreement as of the date first above written. 
 

	 NEW CENTURY FUNDING A, as Seller
 By: Christiana Bank & Trust Company,
 not in its individual capacity but solely as
 trustee

	
	 By:
	 	 /s/    DEBRA A. BALLIET

	 Name:
	 	 Debra A. Balliet

	 Title:
	 	 Assistant Vice President

	
	 BANK OF AMERICA, N.A., as Buyer

	
	 By:
	 	 /s/    GARRETT DOLT

	 Name:
	 	 Garrett Dolt

	 Title:
	 	 Principal

 
 
Acknowledged and Agreed: 
 

	 NEW CENTURY MORTGAGE CORPORATION,
 as Guarantor

	
	 By:
	 	 /s/    KEVIN CLOYD

	 Name:
	 	 Kevin Cloyd

	 Title:
	 	 Senior Vice President

 
 

	 NEW CENTURY FINANCIAL CORPORATION,
 as Guarantor

	
	 By:
	 	 /s/    EDWARD F.
GOTSCHALL

	 Name:
	 	 Edward F. Gotschall

	 Title:
	 	 Vice Chairman/CFO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]