Document:

Amendment and Joinder #3 to Master Repurchase Agmt.

 Exhibit 10.5 
  
 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

  

 4Guaranty, dated as of 10/01/2004

 Exhibit 10.6 
  
 GUARANTY 
  
 October 1, 2004 
  
 Bear Stearns Mortgage Capital Corporation 
 383 Madison Avenue 
 New York, New York 10179 
  
 Ladies and Gentlemen: 
  
 This
letter will confirm that New Century REIT, Inc., a Maryland corporation, as successor in interest to New Century Financial Corporation, a Delaware corporation (“Guarantor”), agrees to absolutely and unconditionally guaranty to Bear Stearns
Mortgage Capital Corporation, its successors and assigns (the “Beneficiary”), the full and prompt payment and performance of all of the obligations, undertakings and liabilities of NC Capital Corporation, NC Residual II Corporation and New
Century Credit Corporation (together, the “Sellers”), arising under the terms and provisions of 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, Amendment No. 2 to the Master Repurchase Agreement, dated as of June 29, 2004 and Amendment and Joinder No. 3 to the Master Repurchase Agreement, dated as of October 1, 2004, by and among the Sellers and Bear Stearns Mortgage
Capital Corporation (as amended, the “Master Repurchase Agreement”) and a Custody Agreement, dated as of October 31, 2003, as amended by Amendment No. 1 to the Custody Agreement, dated as of June 29, 2004 and Amendment and Joinder No. 2 to
the Custody Agreement, dated as of October 1, 2004 (as amended, the “Custodial Agreement”, and together with the Master Repurchase Agreement, the “Agreements”), by and among Buyer, the Sellers and Deutsche Bank National Trust
Company, as custodian (such obligations, undertakings and liabilities are herein referred to as the “Obligations”). Guarantor hereby expressly consents to any amendment to the Agreements as may be agreed upon by the Sellers and Buyer and
waives notice of any such amendment. Capitalized terms used and not otherwise defined herein shall have the meanings assigned in the Master Repurchase Agreement. 
  
 Guarantor hereby represents and warrants to you that each Seller is an indirect wholly-owned subsidiary of Guarantor.

  
 Guarantor covenants and agrees to immediately notify Buyer if
a representation, warranty or covenant of any Seller under either Agreement has been breached or that an Event of Default shall have occurred. 
  
 Payments required under this guaranty shall be payable whenever any Obligation, has not been promptly paid to Beneficiary in accordance with the
Agreements, without regard to any stay or delay with respect to such payment permitted or required by bankruptcy or any other applicable law. Buyer or Custodian on behalf of Buyer shall realize upon the Purchased Mortgage Loans prior to making a
demand under this guarantee; provided, however, neither Buyer nor Custodian on behalf of Buyer shall be required to realize upon any security other than the Purchased Mortgage Loans or, except as set forth above with respect to realizing upon the

  

 1 

 
Purchased Mortgage Loans, exercise any remedies prior to making a payment demand under this guaranty. 
  
 Guarantor hereby waives any requirement that the Beneficiary take legal
action against any Seller before enforcing this guaranty; agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Guarantied Obligations or the dissolution, liquidation,
reorganization or other change regarding any Seller or any Seller seeking protection, or having a case or proceeding commenced against it, under any law for the protection of debtors or creditors; waives diligence, presentment, demand for payment or
performance, protest or notice or other formality of any kind whatsoever; waives filing of claims with any court in case of the insolvency, reorganization or bankruptcy of any Seller; and waives any fact, event or circumstance (other than payment in
full) that might otherwise constitute a legal or equitable defense to or discharge of Guarantor, including (but without typifying or limiting this waiver) failure by the Beneficiary to perfect a security interest in any collateral securing
performance of any Obligation and any delay by the Beneficiary in exercising any of its rights hereunder, Guarantor covenants that this guaranty will not be discharged except by full and final payment and performance to the Beneficiary of the
Guarantied Amount incurred while it is effective, and agrees that this guaranty shall continue to be effective or be reinstated (as the case may be) if at any time all or any part of any payment or interest thereon or other performance by any Seller
is avoided or must otherwise be restored by the Beneficiary. Guarantor hereby further consents to any renewal or modification of any Obligation or any extension of the time within which such is to be performed and to any other indulgences, whether
before or after the date of this guaranty. 
  
 Guarantor agrees to
pay on demand all out-of-pocket expenses (including legal fees and disbursements) incurred by the Beneficiary in connection with the enforcement and protection of its rights hereunder. Guarantor further covenants and agrees with Beneficiary to
observe the financial covenants set forth in Exhibit G to the Master Repurchase Agreement and to promptly notify Beneficiary if Guarantor breaches any of those covenants. Guarantor hereby waives all suretyship defenses and agrees that the
beneficiary may assign all its rights and obligations hereunder to any of its affiliates without the consent or approval of any party. 
  
 This is a continuing guaranty and will remain in effect until thirty (30) days after written notice of termination is received by Bear Stearns Mortgage
Capital Corporation, 383 Madison Avenue, New York, New York 10179, Attention: Eileen Albus. Any such termination shall not affect or reduce Guarantor’s obligations hereunder for any liability of any Seller that arose prior to the expiration of
said thirty-day period. This guaranty shall terminate and shall be of no further force or effect upon full payment of all amounts due to Buyer under the Agreement. This guaranty shall inure to the benefit of any successor of the Beneficiary and be
binding on any successor or assignee of Guarantor. 
  
 This
guaranty shall be governed by and construed in accordance with the laws of the State of New York. Guarantor hereby agrees that (i) any dispute or controversy arising out of or relating to this guaranty, the Master Repurchase Agreement or the
Custodial Agreement shall be submitted to arbitration before the American Arbitration Association utilizing its Rules for the Arbitration of Commercial Disputes and allowing for discovery by the parties, (ii) the arbitration proceedings shall be
conducted in New York, New York and (iii) the decision of the arbitrators 

  

 2 

 
shall be final and judgment may be entered on the award. In the event that such arbitration is unavailable, Guarantor hereby submits to the personal
jurisdiction of the United States Federal and New York State courts situated in the City, County, and State of New York and hereby agrees that any litigation arising out of or relating to this guaranty, the Master Repurchase Agreement or the
Custodial Agreement shall be brought in such courts. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the non-enforceability of any
such other provision or agreement. 
  
 Any demand by Buyer for
payment or performance by Guarantor shall be by a written demand to Guarantor, which shall be deemed to have been duly given if made by facsimile transmission to New Century REIT, Inc., Attention: General Counsel, Phone: (949) 440-7030 , Fax: (949)
440-7033 or if personally delivered at or upon the fifth day after deposit in the mails, mailed by registered mail, postage prepaid, to 18400 Von Karman, Suite 1000, Irvine, California 92612, Attention: General Counsel. 
  

			
	Very truly yours,
	
	NEW CENTURY REIT, INC.
		
	By:	 	 /s/ Kevin Cloyd

	 Name:
	 	 Kevin Cloyd

	 Title:
	 	 Executive Vice President

		
	By:	 	 /s/ Brad A. Morrice

	 Name:
	 	 Brad A. Morrice

	 Title:
	 	 President

  

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]