Exhibit 10.14(d)

 

AMENDMENT NO. 3

TO THE SECOND AMENDED AND RESTATED

MASTER LOAN AND SECURITY AGREEMENT

 

AMENDMENT NO. 3, dated as of June 22, 2004 (this “Amendment”), to the Second
Amended and Restated Master Loan and Security Agreement, dated as of August 29,
2003 (as previously amended, supplemented or otherwise modified, the “Existing
Loan Agreement”; as amended hereby and as further amended, restated,
supplemented or otherwise modified and in effect from time to time, the “Loan
Agreement”), among AAMES CAPITAL CORPORATION (“Aames Capital”), AAMES FUNDING
CORPORATION (“Aames Funding”, together with Aames Capital, each a “Borrower”,
collectively, the “Borrowers”) and MORGAN STANLEY MORTGAGE CAPITAL INC. (the
“Lender”). Capitalized terms used but not otherwise defined herein shall have
the meanings given to them in the Existing Loan Agreement.

 

RECITALS

 

The Borrowers and the Lender are parties to the Existing Loan Agreement.

 

The Borrowers and the Lender have agreed, subject to the terms and conditions of
this Amendment, to increase the amount of the Maximum Credit from $200,000,000
to $350,0000,000 (the $150,000,000 amount of such increase, the “Increase
Amount”).

 

Accordingly, the Borrowers and the Lender hereby agree, in consideration of the
mutual premises and mutual obligations set forth herein, the receipt and
sufficiency of which is hereby acknowledged, that the Existing Loan Agreement is
hereby amended as follows:

 

SECTION 1. Amendment. Section 1.01 of the Existing Loan Agreement is hereby
amended by deleting the definition of “Maximum Credit” in its entirety and
substituting in lieu thereof the following new definition:

 

“Maximum Credit” shall mean $350,000,000.

 

SECTION 2. Conditions Precedent. This Amendment shall be effective on the first
date that all of the following conditions precedent shall have been satisfied
(the “Amendment Effective Date”):

 

2.1 On the Amendment Effective Date, the Lender shall have received the
following documents, each of which shall be satisfactory to the Lender in form
and substance:

 

(a) Amendment. This Amendment, executed and delivered by a duly authorized
officer of each Borrower and the Lender.

 

(b) Amended and Restated Note. In exchange for the Note delivered under the
Existing Loan Agreement, an Amended and Restated Promissory Note, substantially
in the form of Exhibit A hereto, executed and delivered by a duly authorized
officer of each Borrower.

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(c) Secretary’s Certificates of Borrowers. A certificate of the Secretary or
Assistant Secretary of each Borrower, substantially in the form of Exhibit B
hereto, dated as of the date hereof, and

 

(i) certifying that since the Effective Date of the Existing Loan Agreement
there have been no changes to any of the organizational documents of such
Borrower delivered pursuant to Section 5.01 of the Existing Loan Agreement,

 

(ii) certifying as to the incumbency and specimen signature of each officer of
such Borrower executing this Amendment,

 

(iii) attaching a copy of the resolutions, in form and substance reasonably
satisfactory to the Lender, of the Board of Directors of such Borrower
authorizing (A) the execution, delivery and performance of this Amendment, and
(B) the borrowings contemplated under the Loan Agreement, and

 

(iv) attaching certificates dated as of a recent date from the Secretary of
State or other appropriate authority, evidencing the good standing of such
Borrower in the jurisdiction of its organization.

 

(d) Legal Opinions. A legal opinion of in-house counsel to the Borrowers, with
respect to corporate matters, and a legal of outside counsel to the Borrowers,
with respect to enforceability and certain other matters.

 

(e) Fee Letter. A letter dated the date hereof between the Borrowers and the
Lender (the “Fee Letter”).

 

(f) Other Documents. Such other documents as the Lender or counsel to the Lender
may reasonably request.

 

2.2 Fees. On the Amendment Effective Date the Lender shall have received payment
from the Borrowers, in Dollars, in immediately available funds, without
deduction, set-off or counterclaim, at the account of the Lender set forth in
Section 3.01(a) of the Loan Agreement, of an amount equal to the Additional
Commitment Fee (as defined in the Fee Letter referred to above).

 

2.3 No Default. On the Amendment Effective Date, (i) each Borrower shall be in
compliance with all the terms and provisions set forth in the Existing Loan
Agreement on its part to be observed or performed, (ii) the representations and
warranties made and restated by the Borrowers pursuant to Section 3 of this
Amendment shall be true and complete on and as of such date with the same force
and effect as if made on and as of such date, and (iii) no Default or Event of
Default shall have occurred and be continuing on such date.

 

SECTION 3. Representations and Warranties. Each Borrower hereby represents and
warrants to the Lender that it is in compliance with all the terms and
provisions set forth in the Loan Documents on its part to be observed or
performed, and that no Default or Event of Default has occurred or is
continuing, and hereby confirms and reaffirms the representations and warranties
contained in Section 6 of the Loan Agreement.

 

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SECTION 4. Limited Effect. Except as expressly amended and modified by this
Amendment, the Existing Loan Agreement shall continue to be, and shall remain,
in full force and effect in accordance with its terms; provided, however, that
all references therein and herein to the “Loan Documents” shall be deemed to
include, in any event, this Amendment and each reference to the Loan Agreement
in any of the Loan Documents shall be deemed to be a reference to the Existing
Loan Agreement as amended hereby. The execution of this Amendment by the Lender
shall not operate as a waiver of any of its rights, powers or privileges under
the Loan Agreement or under any of the other Loan Documents, except as expressly
set forth herein.

 

SECTION 5. Counterparts. This Amendment 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. Delivery of an executed counterpart of a signature page to this
Amendment in Portable Document Format (PDF) or by facsimile transmission shall
be effective as delivery of a manually executed original counterpart thereof.

 

SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

[SIGNATURES FOLLOW]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the day and year first above written.

 

BORROWERS AAMES CAPITAL CORPORATION By  

 

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Name:   Jon D. Van Deuren Title:   Senior Vice President AAMES FUNDING
CORPORATION By  

 

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Name:   Jon D. Van Deuren Title:   Senior Vice President LENDER MORGAN STANLEY
MORTGAGE CAPITAL INC. By  

 

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Name:     Title:    

 

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Exhibit A

 

FORM OF AMENDED AND RESTATED PROMISSORY NOTE

 

[See Attached]

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THIRD AMENDED AND RESTATED PROMISSORY NOTE

 

$350,000,000

 

August 29, 2003

amended and restated June 22, 2004

New York, New York

 

FOR VALUE RECEIVED, AAMES CAPITAL CORPORATION, a California corporation (“Aames
Capital”) and AAMES FUNDING CORPORATION, a California corporation (“Aames
Funding”, and together with Aames Capital, each a “Borrower”, collectively the
“Borrowers”), hereby promise to pay, jointly and severally, to the order of
MORGAN STANLEY MORTGAGE CAPITAL INC. (the “Lender”), at the principal office of
the Lender at 1221 Avenue of the Americas, 27th Floor, New York, New York,
10020, in lawful money of the United States, and in immediately available funds,
the principal sum of THREE HUNDRED FIFTY MILLION DOLLARS ($350,000,000) (or such
lesser amount as shall equal the aggregate unpaid principal amount of the Loans
made by the Lender to the Borrowers under the Loan Agreement), on the dates and
in the principal amounts provided in the Loan Agreement, and to pay interest on
the unpaid principal amount of each such Loan, at such office, in like money and
funds, for the period commencing on the date of such Loan until such Loan shall
be paid in full, at the rates per annum and on the dates provided in the Loan
Agreement.

 

The date, amount and interest rate of each Loan made by the Lender to the
Borrowers, and each payment made on account of the principal thereof, shall be
recorded by the Lender on its books and, prior to any transfer of this Note,
endorsed by the Lender on the schedule attached hereto or any continuation
thereof; provided, that the failure of the Lender to make any such recordation
or endorsement shall not affect the obligations of the Borrowers to make a
payment when due of any amount owing under the Loan Agreement or hereunder in
respect of the Loans made by the Lender.

 

This Note is the Note referred to in the Second Amended and Restated Master Loan
and Security Agreement, dated as of August 29, 2003 (as amended, supplemented or
otherwise modified and in effect from time to time, the “Loan Agreement”) among
the Borrowers and the Lender, and evidences Loans made by the Lender thereunder.
Terms used but not defined in this Note have the respective meanings assigned to
them in the Loan Agreement.

 

The Borrowers agree, jointly and severally, to pay all the Lender’s costs of
collection and enforcement (including reasonable attorneys’ fees and
disbursements of Lender’s counsel) in respect of this Note when incurred,
including, without limitation, reasonable attorneys’ fees through appellate
proceedings.

 

Notwithstanding the pledge of the Collateral, each Borrower hereby acknowledges,
admits and agrees that the Borrowers’ obligations under this Note are recourse
obligations of the Borrowers to which each Borrower pledges its full faith and
credit.

 

Each Borrower, and any endorsers or guarantors hereof, (a) severally waive
diligence, presentment, protest and demand and also notice of protest, demand,
dishonor and nonpayments of this Note, (b) expressly agree that this Note, or
any payment hereunder, may be

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extended from time to time, and consent to the acceptance of further Collateral,
the release of any Collateral for this Note, the release of any party primarily
or secondarily liable hereon, and (c) expressly agree that it will not be
necessary for the Lender, in order to enforce payment of this Note, to first
institute or exhaust the Lender’s remedies against the Borrowers or any other
party liable hereon or against any Collateral for this Note. No extension of
time for the payment of this Note, or any installment hereof, made by agreement
by the Lender with any person now or hereafter liable for the payment of this
Note, shall affect the liability under this Note of any Borrower, even if such
Borrower is not a party to such agreement; provided, however, that the Lender
and each Borrower, by written agreement between them, may affect the liability
of such Borrower.

 

This Third Amended and Restated Promissory Note amends and restates in its
entirety the Second Amended and Restated Promissory Note dated August 29, 2003
(the “Existing Promissory Note”) and is given as a continuation, rearrangement
and extension, and not a novation, release or satisfaction, of the Existing
Promissory Note. Each Borrower hereby acknowledges and agrees that
simultaneously with the Borrowers’ execution and delivery of this Second Amended
and Restated Promissory Note to the Lender, the Lender has delivered to Aames
Capital the Existing Promissory Note.

 

Any reference herein to the Lender shall be deemed to include and apply to every
subsequent holder of this Note. Reference is made to the Loan Agreement for
provisions concerning optional and mandatory prepayments, Collateral,
acceleration and other material terms affecting this Note.

 

Each Borrower hereby acknowledges and agrees that such Borrower shall be jointly
and severally liable to the maximum extent permitted by applicable law for all
representations, warranties, covenants, obligations and indemnities of the
Borrowers under the Loan Documents.

 

[SIGNATURE PAGE FOLLOWS]

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This Note shall be governed by and construed under the laws of the State of New
York whose laws each Borrower expressly elects to apply to this Note. Each
Borrower agrees that any action or proceeding brought to enforce or arising out
of this Note may be commenced in the Supreme Court of the State of New York,
Borough of Manhattan, or in the District Court of the United States for the
Southern District of New York.

 

AAMES CAPITAL CORPORATION

By:

 

 

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Name:

   

Title:

   

AAMES FUNDING CORPORATION

By:

 

 

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Name:

   

Title:

   

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SCHEDULE OF LOANS

 

This Note evidences Loans made under the within-described Loan Agreement to the
Borrowers, on the dates, in the principal amounts and bearing interest at the
rates set forth below, and subject to the payments and prepayments of principal
set forth below:

 

Date Made

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Principal

Amount

of Loan

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Interest

Rate

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Amount Paid

or Prepaid

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   Unpaid
Principal
Amount

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Notation

Made by

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Exhibit B

 

FORM OF SECRETARY’S CERTIFICATE

 

Pursuant to Section 2.1(c) of that certain Amendment No. 3, dated as of June 22,
2004 (the “Third Amendment”), to the Second Amended and Restated Master Loan and
Security Agreement, dated as of August 29, 2003 (as previously amended,
supplemented or otherwise modified, the “Existing Loan Agreement”; as amended
hereby and as further amended, restated, supplemented or otherwise modified and
in effect from time to time, the “Loan Agreement”; capitalized terms used but
not otherwise defined herein shall have the meanings assigned thereto by the
Loan Agreement), among AAMES CAPITAL CORPORATION (“Aames Capital”), AAMES
FUNDING CORPORATION (“Aames Funding”, together with Aames Capital, each a
“Borrower”, collectively, the “Borrowers”) and MORGAN STANLEY MORTGAGE CAPITAL
INC. (the “Lender”), the undersigned hereby certifies on behalf of [Aames
Capital / Aames Funding] (the “Specified Borrower”) as follows:

 

(a) Since the Effective Date of the Existing Loan Agreement there have been no
changes to any of the organizational documents of the Specified Borrower
delivered pursuant to Section 5.01 of the Existing Loan Agreement and each such
document remains in full force and effect as of the date hereof; and

 

(b) Attached hereto as “Annex A” are original certificates dated as of a recent
date from the Secretary of State or other appropriate authority evidencing the
good standing of the Specified Borrower in its jurisdiction of organization;

 

(c) Attached hereto as “Annex B” is a true, correct and complete copy of the
resolutions of the Specified Borrower, together with any and all amendments
thereto, authorizing the execution, delivery and performance of this Amendment
and the borrowings contemplated thereunder, such resolutions having not been
amended, modified, revoked or rescinded, and the same being in full force and
effect in the attached form as of the date hereof;

 

(d) The following named individuals are duly elected, qualified and acting
officers of the Specified Borrower, each such individual holding the office(s)
set forth opposite his respective name as of the date hereof, and the signatures
set forth beside the respective name and title of said officers and authorized
signatories are true, authentic signatures:

 

Name

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Title

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Signature

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[SIGNATURES FOLLOW]

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IN WITNESS WHEREOF, the undersigned has hereunto executed this Secretary’s
Certificate as of this      day of                     , 2004.

 

By:

 

 

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Name:

   

Title:

   

 

The undersigned,                                         , does hereby certify
that he is the duly elected and presently incumbent
                                         of the Specified Borrower and in such
capacity does hereby certify to the Lender that
                                         is the duly elected and presently
incumbent Secretary of the Specified Borrower.

 

By:

 

 

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Name:

   

Title: