Document:

EX-10.1

EXHIBIT 10.1

EXECUTION COPY

SECOND AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of May 9, 2008 (this
“Amendment”), by and between LUMINENT MORTGAGE CAPITAL, INC., a Corporation organized under
the laws of the State of Maryland corporation (the “Borrower”), and ARCO CAPITAL
CORPORATION LTD., a corporation organized under the laws of the Cayman Islands (the
“Lender”).

WHEREAS, the Borrower and the Lender are parties to that certain Amended and Restated Credit
Agreement, dated as of September 26, 2007 (as amended by that certain First Amendment to Amended
and Restated Credit Agreement dated as of December 7, 2007, and as the same may be further amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized
terms used herein without definition shall have the meanings given in the Credit Agreement);

WHEREAS, an indirect subsidiary of the Lender may in its sole discretion agree to increase the
amounts subject to MRAs with certain subsidiaries of the Borrower in one or more transactions that
would cause the Total Outstandings to exceed that which is permitted as of the date hereof; and

WHEREAS, the Borrower and the Guarantors have requested, and the Lender has, on terms and
conditions set forth herein, agreed to certain modifications of the Credit Agreement; and

WHEREAS, from and after the Amendment Effective Date (as hereinafter defined) of this
Amendment, the Credit Agreement shall be amended, subject to and upon the terms and conditions set
forth herein.

NOW, THEREFORE, in consideration of the premises set forth above, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

SECTION 1. Definitions. Unless otherwise defined herein, all defined terms that are
defined in the Credit Agreement shall have the same meanings when used herein.

SECTION 2. Amendment to the Credit Agreement. Effective as of the Amendment Effective
Date:

(a) Section 1.01 of the Credit Agreement is hereby amended by replacing the text of
the definition of “Total Outstandings” in its entirety with the following:

“Total Outstandings” means the aggregate Outstanding Amount of all Loans.

(b) Section 2.01 of the Credit Agreement is hereby amended by replacing the text
thereof in its entirety with the following:

Section 2.01 The Loans. On the terms and subject to the conditions
of this Agreement, the Lender agrees to make Loans from time to time during
the Availability Period in an aggregate amount not to exceed the Commitment.
Within the limits of this Section, and subject to the other terms and
conditions of this Agreement, the Borrower may borrow under this
Section 2.01, prepay under Section 2.06, and reborrow under
this Section 2.01.

(c) Section 7.03 of the Credit Agreement is hereby amended by replacing the text
thereof in its entirety with the following:

Section 7.03 Payment of Obligations. Except to the extent agreed by
the Lender in writing, pay and discharge as the same shall become due and
payable, all its obligations and liabilities, including (a) all material
taxes, assessments and governmental charges or levies imposed upon it or upon
its income or properties, prior to the date on which penalties attach thereto,
except to the extent that any such tax, assessment, charge or levy is being
contested in good faith by appropriate proceedings and for which adequate
reserves have been established by the Borrower and, as applicable, relevant
Restricted Subsidiaries and (b) all lawful claims which, if unpaid, would by
Law become a Lien upon its property.

(d) Section 8.14 of the Credit Agreement is hereby amended by replacing the text
thereof in its entirety with the following:

Section 8.14 Fixed Charge Coverage Ratio. Permit the Fixed Charge
Coverage Ratio of Borrower as of the twelve months ending on the last day of
any fiscal quarter to be less than (a) 0.85 : 1.0 for any fiscal quarter end
date to and including March 31, 2009, calculated in a manner excluding
non-cash items from GAAP earnings specifically related to other
income/(expense) items including gains/(losses) on mortgage-backed securities
and loans as well as impairment losses on mortgage-backed securities, (b) 1.0
: 1.0 for any fiscal quarter end date from June 30, 2009 through December 31,
2009 and (c) 1.2 : 1.0 for all fiscal quarter end dates thereafter.

(e) Sections 9.01(e) and 9.01(i) are each hereby amended by adding the following
clause to the beginning of each such section:

The Borrower shall have failed to notify the Lender in writing, within one
Business Day after obtaining knowledge thereof, of the occurrence of any of
the following and/or the Borrower or any Guarantor fails to cure the
occurrence of the following within five Business Days’ notice by the Lender
to the Borrower:

SECTION 3. Representations and Warranties of the Borrower. The Borrower and each of
the Guarantors represents and warrants (which representations and warranties shall survive the
execution and delivery hereof) to the Lender that:

(a) it has the corporate power and authority to execute, deliver and carry out the terms and
provisions of this Amendment and has taken or caused to be taken all necessary corporate action to
authorize the execution, delivery and performance of this Amendment;

(b) no consent of any person (including, without limitation, shareholders or creditors of the
Borrower or any Guarantor), and no action of, or filing with any governmental or public body or
authority is required to authorize, or is otherwise required in connection with the execution,
delivery and performance of this Amendment which has not been obtained;

(c) this Amendment has been duly executed and delivered by a duly authorized officer on behalf
of such party, and constitutes a legal, valid and binding obligation of such party enforceable
against such party in accordance with its terms, subject to bankruptcy, reorganization, insolvency,
moratorium and other similar laws affecting the enforcement of creditors’ rights generally and the
exercise of judicial discretion in accordance with general principles of equity;

(d) the execution, delivery and performance of this Amendment will not violate any law,
statute or regulation, or any order or decree of any court or governmental instrumentality, or
conflict with, or result in the breach of, or constitute a default under any contractual obligation
of such party;

(e) after giving effect to this Amendment, no Event of Default or event which upon notice or
lapse of time or both would constitute an Event of Default has occurred and is continuing; and

(f) on the date hereof, the representations and warranties contained in the Credit Agreement
and in the Related Documents are and will be true, correct and complete with the same effect as if
made on the date hereof, except to the extent such representations and warranties have been
qualified in writing to, and acknowledged in writing by, the Lender and except to the extent such
representations and warranties expressly relate to an earlier date, in which case, as of such
earlier date.

SECTION 4. Conditions to Effectiveness. This Amendment shall become effective as of
the date above written (the “Amendment Effective Date”), if, and only if:

(a) the Lender shall have received counterparts of this Amendment executed by the Borrower,
the Guarantors and the Lender;

(b) all representations and warranties contained in this Amendment or otherwise made in
writing to the Lender in connection herewith shall be true and correct in all material respects;

(c) the Lender shall have received such other information, materials and documentation as the
Lender or its counsel may reasonably request, which information, materials and documentation shall
be satisfactory in form and substance to the Lender and its counsel; and

(d) all legal matters incident to the effectiveness of this Amendment, the joinder of OT
Realty Trust as a Guarantor and the joinder of OT Realty Trust to the Master Netting Agreement as a
“Luminent Entity” (as defined in the Master Netting Agreement) shall be satisfactory to the Lender
and its counsel.

SECTION 5. Ratification; Waiver of Defenses; and Release.

(a) The Credit Agreement, the Security Pledge Agreement, the Guarantee Agreement, the Master
Netting Agreement and the other Related Documents remain in full force and effect and are hereby
ratified and affirmed. The Borrower and each Guarantor hereby (i) confirms and agrees that the
Borrower is truly and justly indebted to the Lender in the aggregate amount of the Obligations
without defense, counterclaim or offset of any kind whatsoever; (ii) reaffirms and admits the
validity and enforceability of the Credit Agreement, the Security Pledge Agreement, the Guarantee
Agreement, the Master Netting Agreement and the other Related Documents and the Liens in the
Collateral which were granted pursuant to the Related Documents and otherwise; and (iii) confirms
and agrees without reservation to the joinder of OT Realty Trust as a party to any and all Related
Documents.

(b) This Amendment shall be limited precisely as written and shall not be deemed (i) to be a
consent granted pursuant to, or a waiver or modification of, any other term or condition of the
Credit Agreement or any of the instruments or agreements referred to therein or a waiver of any
Default or Event of Default under the Credit Agreement, whether or not known to the Lender or (ii)
to prejudice any other right or rights which the Lender may now have or have in the future under or
in connection with the Credit Agreement or any of the instruments or agreements referred to
therein. Except to the extent hereby waived or modified, the Credit Agreement and each of the
other Related Documents shall continue in full force and effect in accordance with the provisions
thereof on the date hereof.

(c) The Borrower and each Guarantor, on its own behalf and on behalf of its respective
successors and assigns, hereby waives, releases and discharges the Lender and all of its
affiliates, and all of the directors, officers, employees, attorneys, agents, successors and
assigns of the Lender and such affiliates, from any and all claims, demands, actions or causes of
action (known and unknown) arising out of or in any way relating to the Related Documents and any
documents, agreements, dealings or other matters connected with any of the Related Documents, in
each case to the extent arising (x) on or prior to the date hereof or (y) out of, or relating to,
actions, dealings or matters occurring on or prior to the date hereof. The waivers, releases, and
discharges in this Section 5 shall become effective regardless of when the conditions to this
Amendment are satisfied and regardless of any other event that may occur or not occur after the
date hereof.

SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF
LAW OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK.

SECTION 7. References. All references to the “Credit Agreement”, “thereunder”,
“thereof” or words of like import in the Credit Agreement or any other Related Document and the
other documents and instruments delivered pursuant to or in connection therewith shall mean and be
a reference to the Credit Agreement as modified hereby and as each may in the future be amended,
restated, supplemented or modified from time to time.

SECTION 8. Paragraph Headings. The paragraph headings contained in this Amendment are
and shall be without substance, meaning or content of any kind whatsoever and are not a part of the
agreement among the parties thereto.

SECTION 9. Successors and Assigns. The provisions of this Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns.

SECTION 10. Integration. This Amendment represents the entire agreement of the
parties hereto with respect to the amendment of the Credit Agreement. There are no
representations, agreements, arrangements or understandings, oral or written, between the parties
hereto, relating to the subject matter of this Amendment, which are not fully expressed herein.

SECTION 11. Severability. If any provisions of this Amendment shall be held invalid
or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such
jurisdiction, be ineffective to the extent of such invalidity or enforceability without in any
manner affecting the validity or enforceability of such provision in any other jurisdiction or the
remaining provisions of this Amendment in any jurisdiction.

SECTION 12. Related Document. This Amendment is a Related Document pursuant to the
Credit Agreement and shall (unless expressly indicated herein) be construed, administered, and
applied in accordance with all of the terms and provisions of the Credit Agreement.

SECTION 13. Further Assurances. The Borrower and each Guarantor shall, at any time
and from time to time following the execution of this Amendment, execute and deliver all such
further instruments and take all such further action as may be reasonably necessary or appropriate
in order to carry out the provisions of this Amendment.

SECTION 14. Consultation with Advisors. The Borrower and each Guarantor acknowledges
that it has consulted with counsel and with such other experts and advisors as it has deemed
necessary in connection with the negotiation, execution and delivery of this Amendment. This
Amendment shall be construed without regard to any presumption or rule requiring that it be
construed against the party causing this Amendment or any part thereof to be drafted.

SECTION 15. Acknowledgement by Guarantors. Each of the Guarantors hereby acknowledges
that it has read this Amendment and consents to the terms hereof and further confirms and agrees
that (a) the Security Pledge Agreement to which such Guarantor is a party and all of the Collateral
(defined in the Security Pledge Agreement), as the case may be, described therein does, and shall
continue to, secure the payment of all of the Obligations (as defined in the Security Pledge
Agreement), (b) that this Amendment shall constitute a “Transaction Document” as defined in the
Master Netting Agreement and that all of the Collateral (as defined in the Master Netting
Agreement), as the case may be, described therein does, and shall continue to, secure the payment
of all of the Obligations (as defined in the Master Netting Agreement).

SECTION 16. Counterparts. This Amendment may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. Delivery of an executed counterpart of a signature page by telecopier shall be
effective as delivery of a manually executed counterpart.

[The remainder of this page is intentionally left blank]

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first
above written.

	 	 	 
	BORROWER:

	 	

	LUMINENT MORTGAGE CAPITAL, INC.

	By:

	 	/s/ KAREN CHANG
	
 
	 	 

	 	 	Name: Karen Chang

Title: CFO

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	 	 	 	GUARANTORS:

MERCURY MORTGAGE FINANCE STATUTORY TRUST

	 	 	 	By:
/s/ KAREN CHANG

	 	 	Name: Karen Chang

Title: Secretary and Treasurer

	 	 	 
	LUMINENT CAPITAL MANAGEMENT, INC.
	By:

	 	/s/ KAREN CHANG
	
 
	 	 

	 	 	Name: Karen Chang

Title: Secretary and Treasurer

PANTHEON HOLDING COMPANY, INC.

	 	 	 	By:
/s/ KAREN CHANG

	 	 	Name: Karen Chang

Title: Controller and Corporate Secretary

	 	 	 	PROSERPINE LLC

	 	 	 	By:
/s/ KAREN CHANG

	 	 	Name: Karen Chang

Title: VP, Secretary and Treasurer

MAIA MORTGAGE FINANCE STATUTORY TRUST

	 	 	 	By:
/s/ KAREN CHANG

	 	 	Name: Karen Chang

Title: Secretary and Treasurer

	 	 	 	SATURN PORTFOLIO MANAGEMENT, INC.

	 	 	 	By:
/s/ KAREN CHANG

	 	 	Name: Karen Chang

Title: Secretary and Treasurer

MINERVA MORTGAGE FINANCE CORPORATION

	 	 	 	By:
/s/ KAREN CHANG

	 	 	Name: Karen Chang

Title: Secretary and Treasurer

MINERVA CDO DELAWARE SPV LLC

	 	 	 	By:
/s/ KAREN CHANG

	 	 	Name: Karen Chang

Title: Secretary and Treasurer

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LENDER:

ARCO CAPITAL CORPORATION LTD.

By: Arco Capital Management LLC, its

attorney-in-fact

	 	 	 	By:
/s/ JAY A. JOHNSTON

	 	 	Name: Jay A. Johnston

Title: CEO

4EX-10.2

EXHIBIT 10.2

SUPPLEMENT NO.1 TO THE

AMENDED AND RESTATED SUBSIDIARY

GUARANTEE AGREEMENT

SUPPLEMENT NO. 1 dated as of May 9, 2008, to the Amended and Restated Subsidiary Guarantee
Agreement (as the same may be amended, amended and restated, supplemented or otherwise modified
from time to time, the “Guarantee Agreement”) dated as of September 26, 2007, among each of
the subsidiaries listed on Schedule I thereto (each such subsidiary individually, a
“Guarantor” and, collectively, the “Guarantors”) of LUMINENT MORTGAGE CAPITAL,
INC., a Maryland corporation (the “Borrower”), and ARCO CAPITAL CORPORATION LTD., a
corporation organized under the laws of the Cayman Islands, as lender and secured party (the
“Secured Party”).

A. Reference is made to the Credit Agreement, dated as of August 21, 2007, as amended by Amendment
to Credit Agreement, dated as of September 12, 2007, the Second Amendment to Credit Agreement,
dated as of September 20, 2007 and the Third Amendment to Credit Agreement, dated as of September
21, 2007 (as such agreement may be further amended, supplemented, restated or otherwise modified
and in effect from time to time, the “Existing Credit Agreement”) between the Borrower and
the Secured Party, pursuant to which, among other things, the Secured Party made loans or otherwise
extended credit to the Borrower upon the terms and subject to the conditions specified in the
Credit Agreement.

B. Reference is made to the Amended and Restated Credit Agreement, dated as of September 26, 2007
(as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of
December 7, 2007, as further amended by that certain Second Amendment to Amended and Restated
Credit Agreement dated as of the date hereof and as the same may be further amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”) between the Borrower and
the Secured Party, pursuant to which, among other things, the Borrower has requested, and the
Secured Party has agreed, to amend and restate the Existing Credit Agreement upon the terms and
subject to the conditions specified in the Credit Agreement.

C. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned
to such terms in the Guarantee Agreement and the Credit Agreement.

D. The Guarantors have entered into the Guarantee Agreement in order to induce the Secured Party
make loans under the Credit Agreement. Each Restricted Subsidiary of the Borrower that was not in
existence or not a Restricted Subsidiary of the Borrower on the date of the Credit Agreement is
required to enter into the Guarantee Agreement as a Guarantor upon becoming a Restricted Subsidiary
of the Borrower. Section 22 of the Guarantee Agreement provides that additional Restricted
Subsidiaries of the Borrower may become Guarantors under the Guarantee Agreement by execution and
delivery of an instrument in the form of this Supplement. The undersigned Restricted Subsidiary of
the Borrower (the “New Guarantor”) is executing this Supplement to become a Guarantor under
the Guarantee Agreement as consideration for the Loans previously made.

Accordingly, the Secured Party and the New Guarantor agree as follows:

SECTION 1. In accordance with Section 22 of the Guarantee Agreement, the New Guarantor by its
signature below becomes a Guarantor under the Guarantee Agreement with the same force and effect as
if originally named therein as a Guarantor and the New Guarantor hereby (a) agrees to all the terms
and provisions of the Guarantee Agreement applicable to it as a Guarantor thereunder and
(b) represents and warrants that the representations and warranties made by it as a Guarantor
thereunder are true and correct on and as of the date hereof. Each reference to a Guarantor in the
Guarantee Agreement shall be deemed to include the New Guarantor. The Guarantee Agreement is
hereby incorporated herein by reference.

SECTION 2. The New Guarantor represents and warrants to the Secured Party that this Supplement
has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms.

SECTION 3. The Secured Party represents and warrants to the New Guarantor that it is a
“qualified purchaser” as defined in Section 2(a)(51) of the Investment Company Act of 1940, as
amended.

SECTION 4. This Supplement may be executed in counterparts, each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Supplement
shall become effective when the Secured Party shall have received counterparts of this Supplement
that, when taken together, bear the signatures of the New Guarantor and the Secured Party.
Delivery of an executed signature page to this Supplement by facsimile transmission shall be as
effective as delivery of a manually executed counterpart of this Supplement.

SECTION 5. Except as expressly supplemented hereby, the Guarantee Agreement shall remain in
full force and effect.

SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW OTHER THAN SECTION
5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK.

SECTION 7. In case any one or more of the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein and in the Guarantee Agreement shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a particular provision
hereof in a particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

SECTION 8. All communications and notices hereunder shall be in writing and given as provided
in Section 15 of the Guarantee Agreement. All communications and notices hereunder to the New
Guarantor shall be given to it at the address set forth under its signature below, with a copy to
the Borrower.

SECTION 9. The New Guarantor agrees to reimburse the Secured Party for its out-of-pocket
expenses in connection with this Supplement, including the fees, disbursements and other charges of
counsel for the Secured Party.

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IN WITNESS WHEREOF, the New Guarantor and the Secured Party have duly executed this Supplement
to the Guarantee Agreement as of the day and year first above written.

	 	 	 
	By:

	 	OT REALTY TRUST, as New Guarantor

/s/ KAREN CHANG
	
 
	 	 

	 	 	Name: Karen Chang

Title: SVP, Secretary and Treasurer

	 	 	 	Address:

ARCO CAPITAL CORPORATION LTD.

By: Arco Capital Management LLC, its
attorney-in-fact

	 	 	 	By:
/s/ JAY A. JOHNSTON

	 	 	Name: Jay A. Johnston

Title: CEO

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