Document:

Limited Guaranty, dated as of 10/01/2004

 Exhibit 10.15 
  
 LIMITED GUARANTY 
  
 In order to induce Citigroup Global Markets Realty Corp. (“Citigroup”) to (i) purchase Mortgage Loans from NC Capital Corporation (“NC
Capital”) and New Century Credit Corporation (“NC Credit”) pursuant to the Amended and Restated Purchase and Sale Agreement dated as of October 1, 2004 (the “Purchase and Sale Agreement”) and (ii) in respect of Mortgage
Loans, to provide financing to NC Capital and NC Credit (collectively, the “NC Entities”), each, a wholly-owned indirect subsidiary of New Century Financial Corporation (f/k/a New Century REIT, Inc.) (the “Guarantor”), pursuant
to the Amended and Restated Letter Agreement, dated as of October 1, 2004 (the “Letter Agreement” and, collectively with the Purchase and Sale Agreement, the “Agreements”), the Guarantor hereby absolutely, unconditionally and
irrevocably guarantees the due and punctual payment of the NC Entities’ obligations under the Agreements when and as due, whether at stated payment dates, at maturity, by acceleration or otherwise, and all other monetary obligations of the NC
Entities to Citigroup or its affiliates pursuant to the Agreements, including without limitation costs (the “Obligations”). The Guarantor further agrees that the Obligations may be extended and renewed, in whole or in part, in accordance
with the provisions of the Agreements without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligations by Citigroup. Capitalized terms used herein but not
defined herein shall have the meaning set forth in the Agreements. 
  
 In furtherance of the foregoing and not in limitation of any other right which Citigroup may have at law or in equity against the Guarantor by virtue hereof, upon the occurrence of an event requiring the payment by the NC Entities of any
Obligations, the Guarantor hereby promises to and will, upon receipt of written demand by Citigroup, forthwith pay, or cause to be paid, to Citigroup in cash the amount of such unpaid Obligations, and thereupon Citigroup shall, in a reasonable
manner, assign the collateral in respect of the Obligations owed to it and paid by the Guarantor pursuant to this Limited Guaranty to the Guarantor, or make such disposition thereof as the Guarantor shall direct (all without recourse to and without
representation or warranty by Citigroup). 
  
 Upon payment by the
Guarantor of any sums to Citigroup as provided above, all rights of the Guarantor against any NC Entity arising as a result thereof by way of right of subrogation or otherwise shall in all respects be subordinated and junior in right of payment to
the prior indefeasible payment in full of all the Obligations to Citigroup. 
  
 The Guarantor waives presentment to, demand of payment from and protest to the NC Entities of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. The
obligations of the Guarantor hereunder shall not be affected by (a) the failure of Citigroup to assert any claim or demand or to enforce any right or remedy against any NC Entity under the provisions of the Agreements or otherwise; (b) any
rescission, waiver, amendment or modification of any of the terms or provisions of the Agreements or any other agreement or (c) the release of any security held by Citigroup for the Obligations or any of them. 
  
 The Guarantor further agrees that its guarantee constitutes a guarantee of
payment when due and not of collection, and waives any right to require that any resort be had by Citigroup to 

  

 
any security held for payment of the Obligations or to any balance of any deposit account or credit on the books of Citigroup in favor of a NC Entity or any
person. 
  
 The Guarantor hereby represents and warrants that it
is a qualified real estate investment trust (“REIT”) under Section 856 of the Internal Revenue Code of 1986, as amended and it is in compliance with all provisions of the Code governing its REIT status. The Guarantor covenants and agrees
that it will take all steps necessary to maintain its status as a REIT. 
  
 The Guarantor will at all times (a) maintain a Tangible Net Worth, on a consolidated basis, during each fiscal year, of not less than the sum of (i) $750,000,000 and (ii) fifty percent (50%) of all subsequent capital raises as of the last
day of each of its fiscal quarters; (b) maintain a ratio of Total Indebtedness to Tangible Net Worth as of the last day of each fiscal quarter of greater than 12:1, and (c) maintain, on a consolidated basis, cash, and Cash Equivalents in an amount
not less than $60,000,000. The Guarantor hereby covenants to execute and deliver to Citigroup a quarterly certification substantially in the form of Exhibit A attached hereto within thirty (30) days following the end of each fiscal quarter of
the Guarantor. For the purposes of this paragraph, the following terms shall have the following meanings: 
  
 (i) Cash Equivalents shall mean (a) securities with maturities of 90 days or less from the date of acquisition issued or fully guaranteed
or insured by the United States government or any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of 90 days or less from the date of acquisition and overnight bank deposits of any commercial bank having
capital and surplus in excess of $500,000,000, (c) repurchase obligations of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than seven days with respect to securities issued or fully
guaranteed or insured by the United States government, (d) commercial paper of a domestic issuer rated at least A-1 or the equivalent thereof by Standard and Poor’s Ratings Group (“S&P”) or P-1 or the equivalent thereof by
Moody’s Investors Service, Inc. (“Moody’s”) and in either case maturing within 90 days after the day of acquisition, (e) securities with maturities of 90 days or less from the date of acquisition issued or fully guaranteed
by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory,
political subdivision, taxing authority or foreign government (as the case may be) are rated at least A by S&P or A by Moody’s, (f) securities with maturities of 90 days or less from the date of acquisition backed by standby letters of
credit issued by any commercial bank satisfying the requirements of clause (b) of this definition or (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this
definition. 
  
 (ii) Tangible Net Worth shall
mean, as of any date of determination, the consolidated excess of the total assets over total liabilities (determined in accordance with GAAP) of any person and its subsidiaries, less the consolidated net book value of all assets of such person and
its subsidiaries (to the extent reflected as an asset in the balance sheet of such person or any of its subsidiaries at such date) which will be treated as intangibles under GAAP, including, without limitation, such items as deferred financing

  

 
expenses, net leasehold improvements, goodwill, trademarks, trade names, service marks, copyrights, patents, licenses and unamortized debt discount and
expense; provided, that interest-only strips, residual interests or reserve certificates issued in connection with a public or private securitization transaction owned by such person shall not be treated as intangibles for purposes of this
definition. 
  
 The obligations of the Guarantor hereunder shall
not be subject to any reduction, limitation, impairment or termination for any reason, including, without limitation, any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of the Guarantor hereunder shall not be discharged or
impaired or otherwise affected by the failure of Citigroup to assert any claim or demand or to enforce any remedy under the Agreements or any other agreement, by any waiver or modification on any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the Obligations, or by any other act or omission which may or might in any manner or to any extent vary the risk of the Guarantor or otherwise operate as a discharge of the Guarantor as a matter of law or equity;
provided that the Agreements shall not be amended without the prior consent of the Guarantor. 
  
 The Guarantor further agrees that its guarantee shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or interest on any Obligation is
rescinded or must otherwise be restored by Citigroup upon the bankruptcy or reorganization of any NC Entity or otherwise, all as though such payment had not been made. 
  
 The Guarantor hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the federal and New
York State courts located in the City of’ New York for any action, suit or proceeding instituted by Citigroup to enforce this Limited Guaranty. The Guarantor further agrees that service of any process, summons, notice or documents by U.S.
registered or certified mail to the Guarantor’s address set forth below shall be effective service of process for any such proceeding. The Guarantor hereby irrevocably and unconditionally waives any objection the Guarantor may have at any time
to the venue or forum of any such proceeding brought in such a court. 
  
 [Signature Page Follows] 
  

 IN WITNESS WHEREOF, the undersigned has executed this Limited Guaranty on the day and year set forth
below, 
  
 Dated: October 1, 2004 
  

			
	 NEW CENTURY FINANCIAL
 CORPORATION (f/k/a/ New Century REIT, Inc.)

		
	 By:
	 	 /s/ Patrick Flanagan

	 Name:
	 	 Patrick Flanagan

	 Title:
	 	 Executive Vice President

		
	 By:
	 	 /s/ Brad A. Morrice

	 Name:
	 	 Brad A. Morrice

	 Title:
	 	 President

  

 EXHIBIT A 
  
 FORM OF QUARTERLY CERTIFICATION 
  
 I,
                                        
                ,
                                        
                             of New Century Mortgage Corporation (the “Company”), do hereby
certify that: 
  
 (i) the Company is in
compliance with all provisions and terms of the Limited Guaranty, dated as of October 1, 2004 (the “Guaranty”), by the Company in favor of Citigroup Global Markets Realty Corp.; 
  
 (ii) the Company has maintained a Tangible Net Worth, on a
consolidated basis, during each fiscal year, of not less than the sum of (i) $750,000,000 and (ii) fifty percent (50%) of all subsequent equity capital raises as of the last day of each of its fiscal quarters; 
  
 (iii) the Company has maintained a ratio of Total
Indebtedness to Tangible Net Worth as of the last day of each fiscal quarter of greater than 12:1; and 
  
 (iv) the Company has maintained, on a consolidated basis, cash, and Cash Equivalents in an amount not less than $60,000,000. 

 
 Capitalized terms used but not defined herein shall have the meanings
assigned thereto in the Guaranty. 
  
 IN WITNESS WHEREOF, I have
signed this certificate and affixed the seal of the Company. 
  
 Date:                            , 200   
  

	
	
	 
	 Name:

	 Title:

  

 [SEAL] 
  
 I,
                                    ,
                                        
     of the Company, do hereby certify that                              is the
duly elected or appointed, qualified and acting             of the Company, and the signature set forth above is the genuine signature of such officer on the date hereof. 
  

	
	
	 
	 Name:

	 Title:Amendment to Certain Program Documents

 Exhibit 10.16 
  
 AMENDMENT 
 to 
 CERTAIN PROGRAM DOCUMENTS 
 in relation to the 
 VON KARMAN FUNDING LLC SECURED LIQUIDITY NOTES PROGRAM 2003 
  
 THIS AMENDMENT, dated as of September 30, 2004 (this “Amendment”),
is made by and among Von Karman Funding LLC (the “Issuer”), New Century Mortgage Corporation (as Seller and as Servicer under the Mortgage Loan Purchase and Servicing Agreement (as described below), the “Seller,” or the
“Servicer,” as the case may be), Citibank, N.A. (the “Swap Counterparty”), and Deutsche Bank Trust Company Americas (the “Collateral Agent”). 
  
 WHEREAS, the Issuer, the Seller and the Servicer have heretofore entered into
that certain Mortgage Loan Purchase and Servicing Agreement, dated as of September 3, 2003 (the “Mortgage Loan Purchase and Servicing Agreement”) in connection with the issuance of certain Secured Liquidity Notes; 
  
 WHEREAS, the Issuer and the Collateral Agent have heretofore entered into
that certain Security Agreement, dated as of September 3, 2003 (the “Security Agreement”) under which certain Secured Liquidity Notes have been issued, and subject to certain conditions, may in the future be issued; 
  
 WHEREAS, the ultimate parent of the Issuer, the Seller and the Servicer as of
September 3, 2003, was New Century Financial Corporation, a company incorporated and existing under the laws of the State of Delaware; 
  
 WHEREAS, New Century Financial Corporation, pursuant to a proxy statement/prospectus (the “Proxy Statement/Prospectus”) dated as of
August 13, 2004, is seeking approval of its stockholders, inter alia, to convert from its current status as a C corporation into a real estate investment trust (a “REIT”) for U.S. federal income tax purposes, in the manner
and subject to the conditions described in such Proxy Statement/Prospectus; 
  
 WHEREAS, without limitation of and subject to the disclosures made in the Proxy Statement/Prospectus, as part of the conversion of New Century Financial Corporation into a REIT, a new company known as New Century
REIT, Inc. (“New Century REIT”) has been incorporated and is existing under the laws of the State of Maryland, and upon successful completion of the transactions described in the Proxy Statement/Prospectus, inter alia, first,
New Century REIT will become the ultimate parent of the Issuer, the Seller and the Servicer, second, New Century REIT will change its name to “New Century Financial Corporation,” and third, New Century Financial Corporation will change its
name to “New Century TRS Holdings, Inc.”; 
  
 WHEREAS,
the Mortgage Loan Purchase and Servicing Agreement and the Security Agreement make various references to New Century Financial Corporation, but do not define such corporation further other than by its name; 
  

 WHEREAS, it is the desire and intent of all the parties to the Mortgage Loan Purchase and Servicing
Agreement and the Security Agreement, together with the Swap Counterparty, that references in the Mortgage Loan Purchase and Servicing Agreement to “New Century Financial Corporation” be references to the ultimate parent of the Issuer, the
Seller and the Servicer, and that following successful completion of the transactions described in the Proxy Statement/Prospectus, such references become references to the entity formerly known as New Century REIT, Inc., and no longer be references
to the entity then known as New Century TRS Holdings, Inc.; 
  
 WHEREAS, although the precise references in the Mortgage Loan Purchase and Servicing Agreement and the Security Agreement to “New Century Financial Corporation” will not need to be changed to achieve the desires and intents
described in the preceding paragraph, the parties hereto nevertheless wish to enter into this Amendment to the Mortgage Loan Purchase and Servicing Agreement and the Security Agreement in order to clarify the substantive change in the entity
referred to; 
  
 WHEREAS, certain financial covenants in the
Mortgage Loan Purchase and Servicing Agreement and the Security Agreement are required to be amended as a result of the conversion of New Century Financial Corporation into a real estate investment trust, and as a result of the proposed issuance of
new shares of common stock as described in the Proxy Statement/Prospectus; 
  
 WHEREAS, Section 3.2(ii) of the Mortgage Loan Purchase and Servicing Agreement makes references to the “Soldiers’ and Sailors’ Civil Relief Act of 1940,” which act has changed its name; 

 
 WHEREAS, Section 12.2 of the Mortgage Loan Purchase and Servicing
Agreement provides for amendments thereto to be made in writing and signed by the Issuer, the Seller, the Servicer and the Swap Counterparty, provided that Rating Agency Confirmation is received; 
  
 WHEREAS, Section 10.01 of the Security Agreement provides for amendments
thereto to be made in writing and signed by the Issuer, the Collateral Agent and the Swap Counterparty, provided that Rating Agency Confirmation is received; 
  
 WHEREAS, the Issuer, the Seller, the Servicer, the Collateral Agent and the Swap Counterparty propose to amend the Mortgage Loan Purchase and Servicing
Agreement and the Security Agreement as set forth herein; 
  

 -2- 

 NOW, THEREFORE, in consideration of the premises and mutual agreements herein contained and for other
good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the Issuer, the Seller, the Servicer, the Collateral Agent and the Swap Counterparty hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01 Certain Definitions. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Mortgage Loan
Purchase and Servicing Agreement or the Security Agreement. 
  
 ARTICLE II 
  
 AMENDMENTS 
  
 Section 2.01 Amendment to Financial Covenants. With effect from the
successful completion of the transactions described in the Proxy Statement/Prospectus: 
  
 (i) Section 3.5(i)(ii) of the Mortgage Loan Purchase and Servicing Agreement is deleted in its entirety, and the following is substituted
in place thereof: 
  
 “(ii) Ensure that New
Century Financial Corporation shall 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 New Century
Financial Corporation attributable to issuances of common stock since October [    ], 20041.” 
  
 (ii) Section
3.5(i)(i)(iv) of the Mortgage Loan Purchase and Servicing Agreement is deleted in its entirety, and the following is substituted in place thereof: 
  
 “(iv) Ensure that New Century Financial Corporation shall maintain (1) its status as a real estate investment trust for purposes of
U.S. federal income tax, and (2) a ratio of Total Indebtedness to Tangible Net Worth not greater than 12:1 measured on the last day of each of its fiscal quarters.” 
  
 Section 2.02 Amendment to Definition of “Cash Collateral Event.” With effect from the successful completion
of the transactions described in the Proxy Statement/Prospectus, each of sub-section (i) and sub-section (ii) of the definition of “Cash Collateral Event” as it appears in the Security Agreement, is deleted in its entirety, and the
following is substituted in their respective places: 
  
 “(i) [RESERVED]” 
  
 “(ii) the Tangible Net Worth of New Century Financial Corporation on the last day of each of its fiscal quarters shall be less than the sum of (1) $800,000,000, and (2) fifty percent (50%) of all increases in 

	1	This will be the date that the capital raising conducted in connection with the REIT conversion is completed. 

  

 -3- 

 shareholders’ equity in New Century Financial Corporation attributable to issuances of common stock
since October [    ], 20042” 
  
 Section 2.03 Amendment to References to “New Century Financial
Corporation.” With effect from the successful completion of the transactions described in the Proxy Statement/Prospectus, all references, including the following, to “New Century Financial Corporation” shall cease to be references
to New Century Financial Corporation, a corporation formed and existing under the laws of the State of Delaware, and shall become references to the entity formerly known as New Century REIT, Inc., a corporation formed and existing under the laws of
the State of Maryland: 
  

			
	 Section ref.

	  	 Section

	
	Mortgage Loan Purchase and Servicing Agreement
		
	 3.1(f)
	  	No Litigation Pending. Other than as disclosed on the most recent 10-K and 10-Q filings with the Securities Exchange Commission by New Century Financial Corporation, there is no
action, suit, proceeding or investigation pending or to its knowledge threatened against the Company which, either in any one instance or in the aggregate, would result in any material impairment of the right or ability of the Company to carry on
its business substantially as now conducted, or which would draw into question the validity of this Purchase Agreement or any Transfer Supplement or the Mortgage Loans or of any action taken or to be taken in connection with the obligations of the
Company contemplated herein, or which would be likely to impair materially the ability of the Company to perform under the terms of this Purchase Agreement or any Transfer Supplement
		
	 3.1(j)
	  	Financial Statements. The financial statements of New Century Financial Corporation, copies of which have been furnished to the Purchaser, (i) are, as of the dates and for the periods
referred to therein, complete and correct in all material respects, (ii) present fairly the financial condition and results of operations of New Century Financial Corporation as of the dates and for the periods indicated and (iii) have been prepared
in accordance with GAAP consistently applied, except as noted therein (subject as to interim statements to normal year-end adjustments). Since the date of the most recent financial statements, there has been no change which has had a material
adverse effect with respect to New Century Financial Corporation. Except as disclosed in such financial statements, New Century Financial Corporation is not subject to any contingent liabilities or commitments that, individually or in the aggregate,
have a reasonable likelihood of having a material adverse effect with respect to New Century Financial Corporation.

	2	This will be the date that the capital raising conducted in connection with the REIT conversion is completed. 

  

 -4- 

			
	 Section ref.

	  	 Section

	 	  	Certain Financial Covenants. The Seller and the Purchaser shall:
		
	3.5(i)(ii), 3.5(i)(iv) and 3.5(i)(v), together with the referable Exhibits G-1 and G-2	  	 ...
  
 (ii) Ensure that New Century Financial Corporation shall 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 New Century Financial Corporation attributable to issuances of common stock since October [    ],
20043.
  
 ...
  
 (iv) Ensure that New Century Financial Corporation shall maintain (1) its status as a real estate investment trust for purposes of U.S. federal income
tax, and (2) a ratio of Total Indebtedness to Tangible Net Worth not greater than 12:1 measured on the last day of each of its fiscal quarters.
  
 (v) Maintain, together with New Century Financial Corporation on a consolidated basis, Liquidity in an amount equal to not less than
$60,000,000.

	
	 (b) With respect to each sale of Mortgage Loans entered into by the Purchaser, the Servicer shall:

		
	4.2(b)(iii)	  	 ...
  
 (iii) deliver to the Purchaser for inclusion in any prospectus or other offering material such written information regarding New Century Financial
Corporation, its respective financial condition, mortgage loan origination and servicing experience, and mortgage loan delinquency, foreclosure and loss experience as shall be reasonably requested by the Purchaser and indemnify and hold harmless the
Purchaser against any and all liabilities, losses and expenses arising under the Securities Act in connection with any material misstatement contained in such written information or any omission of a material fact the inclusion of which was
necessary to make such written information not misleading;

	3	This will be the date that the capital raising conducted in connection with the REIT conversion is completed. 

  

 -5- 

			
	 Section ref.

	  	 Section

	 	  	Annual Financials, Annual Independent Public Accountants’ Servicing Report.
	 6.5(b)(ii)
	  	 ...
  
 The Purchaser and the Seller shall keep or cause to be kept in reasonable detail books and records of account of their assets and business and shall
clearly reflect therein the transfer of the Mortgage Loans to the Purchaser. The Company shall furnish or cause to be furnished to the Purchaser, the Manager, the Collateral Agent, the SLN Placement Agents and the Swap Counterparty the following
financial statements: (x) as soon as available and in any event within ninety (90) days after the end of each fiscal year of the Company, the consolidated, audited balance sheet of New Century Financial Corporation, and the balance sheets of the
Company, as of the end of each such fiscal year, and the audited statements of income and changes in equity of each of the above entities, and the audited statement of cash flows of New Century Financial Corporation (inclusive of the Company), for
such fiscal year and (y) as soon as available and in any event within forty-five (45) days after the end of each quarter (including the fourth quarter), the consolidated and consolidating, unaudited balance sheet of New Century Financial Corporation
(inclusive of the Company) as of the end of each quarter, and the unaudited statements of income and changes in equity of New Century Financial Corporation (inclusive of the Company), and the unaudited statement of cash flows of New Century
Financial Corporation (inclusive of the Company), for the portion of the fiscal year then ended, and (z) within 45 days after the end of each month, monthly consolidated and unaudited statements of income and changes in equity (and, to the extent
available, cash flow statements) and balance sheets as provided in clause (y), all of which have been prepared in accordance with GAAP and certified by such New Century Financial Corporation’s, or the Company’s, as applicable, chief
financial officer in the form of a compliance certificate to be delivered along with the above financial statements.

		
	 	  	Termination of Purchase Obligations. Each of the following shall constitute a termination event under this Purchase Agreement (each, a “Termination
Event”):
		
	 11.2(d) and (e)
	  	 ...
  
 (d) An Event of Bankruptcy with respect to the Purchaser, the Seller, NC Capital Corporation or New Century Financial Corporation;
  
 (e) The Company or New Century Financial Corporation shall fail to pay
(after demand, if required, and expiration of any applicable grace period) any of its debt obligations in an aggregate amount in excess of $20,000,000 resulting in acceleration of such debt;

  

 -6- 

			
	 Section ref.

	  	 Section

	Security Agreement
		
	 3.01(e)
	  	Litigation. Other than as disclosed in the most recent 10-K and 10-Q filings with the Securities Exchange Commission by New Century Financial Corporation, there is no action, suit or
proceeding pending against or, to the knowledge of the Company, threatened against or affecting the Company or its Assets before any court or arbitrator or any Governmental Authority with respect to which there is a reasonable possibility of an
adverse decision that could materially adversely affect the financial position, results of operations, business, properties, performance, prospects or condition (financial or otherwise) of the Company or which in any manner draws into question the
validity or enforceability of this Security Agreement or any other Program Document or the ability of the Company to perform its obligations hereunder or thereunder.
		
	 7.01(f)
	  	 Events of Default. Each of the following events shall constitute an event of default under this Security Agreement with respect to the
Senior Notes (each, an “Event of Default”):
  
 ...
  
 (f) The occurrence of an Event of Bankruptcy
with respect to the Company, the Seller, NC Capital Corporation or New Century Financial Corporation;

		
	Definition of “Cash Collateral Event”	  	“Cash Collateral Event” any one or more of the following: (i) [RESERVED] (ii) the Tangible Net Worth of New Century Financial Corporation on the last day of each of its
fiscal quarters shall be less than the sum of (1) $800,000,000, and (2) fifty percent (50%) of all increases in shareholders’ equity in New Century Financial Corporation attributable to issuances of common stock since October
[    ], 20044, (iii) the Seller and the Purchaser, on a consolidated basis, shall have a
ratio of Total Indebtedness to Tangible Net Worth greater than 10:1, measured on the last day of each fiscal quarter of the Seller and the Purchaser, (iv) New Century Financial Corporation shall cease to be a real estate investment trust for U.S.
federal income tax purposes, or shall have a ratio of Total Indebtedness to Tangible Net Worth not greater than 10:1, measured on the last day of each of its fiscal quarters, or (v) the Seller and Purchaser, together with New Century Financial
Corporation on a consolidated basis, shall have Liquidity in an amount equal to not less than $80,000,000.

  
 Section 2.04
Amendment to Reference to “Soldiers’ and Sailors’ Civil Relief Act of 1940.” Section 3.2(ii) of the Mortgage Loan Purchase and Servicing Agreement is hereby 

	4	This will be the date that the capital raising conducted in connection with the REIT conversion is completed. 

  

 -7- 

 amended by deleting reference to the “Soldiers’ and Sailors’ Civil Relief Act of 1940” and
substituting therein reference to the “Servicemembers’ Civil Relief Act of 1940.” 
  
 ARTICLE III 
  
 MISCELLANEOUS 
  
 Section 3.01 Execution in
Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same
instrument. 
  
 Section 3.02 Headings. The various headings
of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or any provisions hereof. 
  
 Section 3.03 Effectiveness. This Amendment shall be effective upon (a) successful completion of the transactions referred to in the Proxy
Statement/Prospectus, (b) its execution and delivery by all the parties hereto, and (c) receipt of Rating Agency Confirmation. 
  
 Section 3.04 GOVERNING LAW. THE PARTIES HERETO AGREE THAT THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO THE APPLICATION OF CHOICE OF LAW PRINCIPLES THEREOF. 
  

 -8- 

 IN WITNESS WHEREOF, this amendment has been signed and delivered by the parties as of the date first
above written. 
  

			
	 VON KARMAN FUNDING LLC,
as Issuer

		
	 By:
	 	 NEW CENTURY MORTGAGE
 CORPORATION, as
Manager

		
	By:	 	 /s/ Kevin Cloyd

	 	 	 Name: Kevin Cloyd

	 	 	 Title:   Executive Vice President

  

			
	 NEW CENTURY MORTGAGE
CORPORATION, as Seller and
Servicer

		
	By:	 	 /s/ Kevin Cloyd

	 	 	 Name: Kevin Cloyd

	 	 	 Title:   Executive Vice President

  

			
	 CITIBANK, N.A., as Swap
Counterparty

		
	By:	 	 /s/ Steve Incontro

	 	 	 Name: Steve Incontro

	 	 	 Title:   Vice President

  

			
	 DEUTSCHE BANK TRUST
COMPANY AMERICAS, as
Collateral Agent

		
	By:	 	 /s/ Eileen Hughes

	 	 	 Name: Eileen Hughes

	 	 	 Title:  Vice President

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