Exhibit 10.56.1
AMENDMENT NUMBER ONE
to the
MASTER REPURCHASE AGREEMENT
(SECURITIES)
dated as of April 14, 2006
among
WACHOVIA INVESTMENT HOLDINGS, LLC,
NOVASTAR MORTGAGE, INC.
NOVASTAR CERTIFICATES FINANCIING LLC
NOVASTAR CERTIFICATES FINANCING
CORPORATION
and
NOVASTAR FINANCIAL, INC
AMENDMENT NUMBER ONE (“
Amendment Number One ”), dated as of November __,
2006, by and among Wachovia Investment Holdings, LLC, as buyer (the
“ Buyer ”), Novastar Mortgage, Inc., Novastar
Certificates Financing LLC and Novastar Certificates Financing
Corporation (each a “ Seller ”, and
collectively, jointly and severally, the “ Sellers
”) and Novastar Financial, Inc. (the “ Guarantor
”), to the Master Repurchase Agreement (Securities), dated as
of April 14, 2006, by and among the Buyer, the Sellers and the
Guarantor (the “ Agreement ”).
RECITALS
WHEREAS, the Buyer, the Sellers and
the Guarantor have agreed to amend the Agreement, pursuant to the
term and conditions set forth herein.
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. Defined Terms .
Any terms capitalized but not otherwise defined herein shall have
the respective meanings set forth in the Agreement.
SECTION 2. Amendments .
Effective as of the date hereof, the Agreement is hereby amending
as follows:
(a) Section 3(d) of the
Agreement is amended by deleting the two occurrences of the words
“25th day” therein and replacing them, in each case,
with the words “26th day”.
(b) Section 9(b) of the
Agreement is amended by deleting clause (xii) thereof in its
entirety and replacing it with the following (underlined text
indicates a change from the original language):
(xii) Seller shall have paid to
Buyer a fee equal to 1.00% of the initial
Purchase Price of each Eligible Asset (as communicated
in writing by the Buyer to the Seller), payable on the first
Purchase Date for such Eligible Asset.
(c) Section 19(k) of the
Agreement is amended by deleting clause (i) therein in its
entirety and replacing it with the following (underlined text
indicates a change from the original language):
i. The term “Maximum Recourse
Amount” means an aggregate amount equal to the greater of
(A) $5,000,000 or (B) 10% of the Purchase Price of
all Purchased Assets subject to outstanding Transactions under this
Agreement as of the occurrence of an Event of Default or Early
Termination Date, as applicable, minus the aggregate amount of all
Margin Calls with respect to such Transactions that has previously
been paid by Sellers and Guarantor; provided, however, that the
Maximum Recourse Amount will be equal to the amount of any actual
deficiency
