First Amendment to Master Repurchase Agreement Governing Purchases



 Exhibit 10.11 (b) 
  
 FIRST AMENDMENT TO MASTER REPURCHASE AGREEMENT 
 GOVERNING PURCHASES AND SALES OF MORTGAGE LOANS 
  
 This Amendment, dated as of June 20, 2005 (the “Amendment”), to the Master Repurchase Agreement Governing Purchases and Sales of Mortgage
Loans, dated as of January 18, 2005 (the “Agreement”), is made by and between LEHMAN BROTHERS BANK, FSB (“Buyer”) and AAMES CAPITAL CORPORATION (“ACC”) and AAMES INVESTMENT CORPORATION
(“AIC”, collectively with ACC, “Seller” and, together with the Buyer, the “Parties”). 
  
 RECITALS 
  
 WHEREAS, the Seller and the Buyer are parties to the Agreement, pursuant to which the Buyer has agreed, subject to the terms and conditions set forth in
the Agreement, to purchase certain Mortgage Loans owned by the Seller, including, without limitation, all rights of Seller to service and administer such Mortgage Loans. Terms used but not defined herein shall have the respective meanings ascribed
to such terms in the Agreement, as amended hereby. 
  
 WHEREAS,
the Parties wish to amend the Agreement to modify certain of the terms and conditions governing the purchase and sale of the Mortgage Loans. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

  
 Section 1. Amendment. 
  
 1.1 As of June 20, 2005, Section 13(a)(xviii) is hereby
deleted in its entirety and replaced with the following: 
  
 “(xviii) for any two consecutive fiscal quarters of AIC, commencing with respect to the two consecutive fiscal quarters ending on September 30, 2005 AIC and its Subsidiaries shall incur a loss on a consolidated basis in accordance with
GAAP;” 
  
 Section 2. Covenants, Representations and
Warranties of the Parties. 
  
 2.1 Except
as expressly amended by Section 1 hereof, the Agreement remains unaltered and in full force and effect. Each of the Parties hereby reaffirms all terms and covenants made in the Agreement as amended hereby. 
  
 2.2 Each of the Parties hereby represents and warrants to
the other that (a) this Amendment constitutes the legal, valid and binding obligation of such Party, enforceable against such Party in accordance with its terms, and (b) the execution and delivery by such Party of this Amendment has been duly
authorized by all requisite corporate action on the part of such Party and will not violate any provision of the organizational documents of such Party. 
  
 Section 3. Effect upon the Agreement. 
  
 3.1 Except as specifically set forth herein, the Agreement shall remain in full force and effect and is hereby ratified and confirmed. All
references to the “Agreement” in the Master Repurchase Agreement Governing Purchases and Sales of Mortgage Loans shall mean and refer to the Master Repurchase Agreement Governing Purchases and Sales of Mortgage Loans as modified and
amended hereby. 







 3.2 The execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of any Party under the Agreement, or any other document, instrument or agreement executed and/or delivered in connection therewith. 
  
 Section 4. Governing Law. 
  
 THIS AMENDMENT SHALL BE CONSTRUED, INTERPRETED AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAWS PRINCIPLES THEREOF. 
  
 Section 5.
Counterparts. 
  
 This Amendment may be executed in
any number of counterparts, and all such counterparts shall together constitute the same agreement. 
  
 [Remainder of Page Intentionally Left Blank] 
  

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

			
	SELLER:
	
	 AAMES CAPITAL CORPORATION, as Seller

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:



  

			
	
	 AAMES INVESTMENT CORPORATION, as Seller

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:



  

			
	BUYER:
	
	 LEHMAN BROTHERS BANK, FSB, as Buyer

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:



  

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