Document:

exv10w5

 

Exhibit 10.5

OMNIBUS AMENDMENT NO. 3

     This
Omnibus Amendment No. 3 (this “Amendment”), dated as of October 10,
2006, among OPTION ONE OWNER TRUST 2002-3, a Delaware statutory trust, UBS
REAL ESTATE SECURITIES INC. (f/k/a UBS Warburg Real Estate Securities Inc.), a
Delaware corporation, and OPTION ONE MORTGAGE CORPORATION, a California
corporation, amends the following agreements (the “Amended
Agreements”):

(A) AMENDED AND RESTATED NOTE PURCHASE AGREEMENT, dated as
of March 18, 2005, among Option One Owner Trust 2002-3 (the
“Company”),
UBS Real Estate Securities Inc. (the “Note Purchaser”), and Option One
Mortgage Corporation (“OOMC”, or the “Loan
Originator”) (the “Note Purchase Agreement”); and

(B) PRICING SIDE LETTER, dated as of March 18, 2005, among the Company,
the Note Purchaser and the Loan Originator (the “Pricing Side Letter”).

     This Amendment shall constitute Amendment No. 3 to the Note Purchase
Agreement and Amendment No. 3 to the Pricing Side Letter.

			
	A.	 	Amendment to the Note Purchase Agreement

	1.	 	The definition of “Commitment Term” in Section 1.1 of the Note Purchase
Agreement is hereby deleted in its entirety and replaced with the following:

‘“Commitment Term’” shall mean that period of time commencing on
October 11, 2006 and continuing until the earlier of (i) November 10,
2006 (or, if applicable, such later date as may be in effect from time to
time pursuant to Section 2.10(d)), and (ii) the date upon which the
Obligations are declared to be, or become, due and payable in full in
accordance with Article X.”

			
	B.	 	Amendment to the Pricing Side Letter

	1.	 	Section 2 of the Pricing Side Letter is hereby deleted in its entirety and replaced with
the following:

“Section 2 — Minimum Usage

The Company and OOMC hereby acknowledge that the Note Purchaser is
entering into this facility with the understanding that the Note Purchaser
expects to receive at least $546,978.74 (the “Minimum Usage Fee”) in
spread (“spread” being the cumulative dollar amount of that portion of the
Note interest represented by the Margin) during the Commitment Term
(i.e., on or prior to October 10, 2006). If, by the end of the Commitment
Term, the total spread paid to the Note Purchaser is less than the Minimum

 

 

Usage Fee, then the Company and OOMC, jointly and severally, shall pay
to the Note Purchaser, on the last day of the Commitment Term, an
amount equal to such shortfall.”

			
	C.	 	General Provisions

	1.	 	Defined Terms. Unless defined in this Amendment, capitalized terms used in this
Amendment shall have the meaning given such terms in the Amended Agreements.
	 
	2.	 	Expenses. The Loan Originator agrees to pay and reimburse the Note Purchaser for
all of the reasonable out-of pocket costs and expenses incurred by the Note Purchaser
in connection with the preparation, execution and delivery of this Amendment,
including, without limitation, the reasonable fees and disbursements of Dewey
Ballantine LLP, counsel to the Note Purchaser.
	 
	3.	 	Liability. It is expressly understood and agreed by the parties that (a) this
Amendment is executed and delivered by Wilmington Trust Company, not
individually or personally, but solely as Owner Trustee, in the exercise of the powers
and authority conferred and vested in it, pursuant to the Trust Agreement, (b) each of
the representations, undertakings and agreements herein made on the part of the
Company is made and intended not as personal representations, undertakings and
agreements by Wilmington Trust Company but is made and intended for the purpose
of binding the Company with respect thereto, (c) nothing herein contained shall be
construed as creating any liability on Wilmington Trust Company, individually or
personally, to perform any covenant either expressly or impliedly contained herein,
and the right to claim any and all such liability, if any, being expressly waived by the
parties hereto and by any person claiming by, through or under the parties hereto, and
(d) under no circumstances shall Wilmington Trust Company be personally liable for
the payment of any indebtedness or expenses of the Company or be liable for the
breach or failure of any obligation, representation, warranty or covenant made or
undertaken by the Company hereunder or under any other related documents.
Nothing expressed or implied in the preceding sentence, however, shall alter the
terms and conditions of Section 7.1 of the Trust Agreement.
	 
	4.	 	Condition to Effectiveness. As a condition to the effectiveness of this Amendment,
the Note Purchaser shall have given its consent.
	 
	5.	 	Effect of Amendment. Upon the execution of this Amendment and the attached
consent of Note Purchaser, the Amended Agreements shall be modified and amended
in accordance herewith and the respective rights, limitations, obligations, duties,
liabilities and immunities of each party to the Amended Agreements shall hereafter be
determined, exercised and enforced subject in all respects to such modifications and
amendments, and all the terms and conditions of this Amendment shall be part of the
terms and conditions of the Amended Agreement for any and all purposes as of the
date first set forth above. The Amended Agreements, as amended hereby, are hereby
ratified and confirmed in all respects.

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	6.	 	The Amended Agreements in Full Force and Effect as Amended. Except as
specifically amended hereby, all the terms and conditions of the Amended
Agreements shall remain in full force and effect and, except as expressly provided
herein, the effectiveness of this Amendment shall not operate as, or constitute a
waiver or modification of, any right, power or remedy of any party to the Amended
Agreements. All references to the Amended Agreements in any other document or
instrument shall be deemed to mean the Amended Agreements as amended by this
Amendment.

	7.	 	Counterparts. This Amendment may be executed by the parties in several
counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement. This Amendment shall become
effective when counterparts hereof executed on behalf of such party shall have been
received.
	 
	8.	 	Governing Law. This Amendment shall be construed in accordance with and
governed by the laws of the State of New York applicable to agreements made and to
be performed therein.

[Remainder of page left intentionally blank.]

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          IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed by their respective officers, effective as of the day and
year first above written

	 	 	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2002-3, 
as the Company	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	WILMINGTON TRUST COMPANY, 

not in its individual capacity but solely as Owner 

Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mary Kay Pupillo	 	 
	 

	 	 	 	 

	 	 
	 

	 	  Name:
	 	Mary Kay Pupillo	 	 
	 

	 	  Title:
	 	Assistant Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	UBS REAL ESTATE SECURITIES INC., 

as the Note Purchaser
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert Carpenter	 	 
	 

	 	 	 	 	 	 
	 

	 	  Name:
	 	Robert Carpenter	 	 
	 

	 	  Title:
	 	Executive Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ George A. Mangiaracina	 	 
	 

	 	 	 	 	 	 
	 

	 	  Name:
	 	George A. Mangiaracina	 	 
	 

	 	  Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE MORTGAGE CORPORATION 

as the Loan Originator
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Philip Laren	 	 
	 

	 	 	 	 	 	 
	 

	 	  Name:	 	Philip Laren	 	 
	 

	 	  Title:	 	Senior Vice President	 	 

[Signature
Page to Omnibus Amendment No. 3]exv10w6

 

Exhibit 10.6

OMNIBUS AMENDMENT NUMBER TWO

to the

OPTION ONE OWNER TRUST 2005-7 WAREHOUSE FACILITY

          This OMNIBUS AMENDMENT NUMBER TWO (this “Amendment”) is made and is effective as of this 31st
day of October, 2006, among Option One Owner Trust 2005-7 as issuer (the “Issuer”), Option One Loan
Warehouse Corporation as depositor (the “Depositor”), Option One Mortgage Corporation as loan
originator and servicer (“Option One”), Wells Fargo Bank, N.A. as indenture trustee (the “Indenture
Trustee”), HSBC Securities (USA) Inc. (the “Noteholder Agent”), HSBC Bank USA, N.A. and Bryant Park
Funding LLC (the “Purchasers”) and HSBC Securities (USA) Inc. (the “Administrative Agent” and
collectively with the Noteholder Agent and the Purchasers, the “HSBC Entities”) to (i) the Note
Purchase Agreement, dated as of September 1, 2005 (as amended, supplemented or otherwise modified
from time to time, the “Note Purchase Agreement”), among the Issuer, the Depositor, the Noteholder
Agent, the Purchasers and the Administrative Agent, (ii) the Pricing Letter, dated as of September
1, 2005 (as amended, supplemented or otherwise modified from time to time, the “Pricing Letter”),
among the Issuer, the Depositor, Option One, and the Indenture Trustee and (iii) the Sale and
Servicing Agreement, dated as of September 1, 2005 (as amended, supplemented or otherwise modified
from time to time, the “Sale and Servicing Agreement” and together with the Note Purchase Agreement
and the Pricing Letter, the “Transaction Documents”), among the Issuer, the Depositor, Option One
and the Indenture Trustee.

RECITALS

          WHEREAS, the parties have previously entered into the Transaction Documents; and

          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. Capitalized terms used but not defined herein shall have
the meanings ascribed to such terms in the Transaction Documents.

          SECTION 2. Amendment to Sale and Servicing Agreement.

          (a) The definition of “Revolving Period” in Section 1.01 of the Sale and Servicing
Agreement is hereby deleted in its entirety and replaced with the following:

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     “Revolving Period: With respect to the Notes, the period commencing on October
31, 2006 and ending on the earlier of (i) March 31, 2007 and (ii) the date on which
the Revolving Period is terminated pursuant to Section 2.07.”

     (b) The definition of “Accrual Period” in Section 1.01 of the Sale and Servicing Agreement is
hereby deleted in its entirety and replaced with the following:

          “Accrual Period: With respect to the Notes, the preceding calendar month.”

          SECTION 3. Amendment to Pricing Letter.

     (a) The definition of “Make-Whole Premium” in Section 1 of the Pricing Letter is hereby
deleted in its entirety and replaced with the following:

     “Make-Whole Premium: A fee payable by the Issuer to the Purchaser, (a) on the Payment
Date occurring five months following the date hereof (or, if sooner, the final Payment
Date), in an amount equal to (i) $1,250,000 minus (ii) the sum of any Commitment Fee
actually paid to the Note Purchaser plus all Interest Payment Amounts received by the Note
Purchaser since the date hereof.”

     (b) Effective as of November 1, 2006, the definition of “Note Interest Rate” in Section 1 of
the Pricing Letter is hereby deleted in its entirety and replaced with the following:

     “Note Interest Rate: For any Accrual Period, (a) in the case of any portion of the
Additional Note Principal Balance during such Accrual Period that is purchased by the
Conduit Purchaser, the CP Cost of Funds Rate plus the CP Margin and, if applicable, the
Additional CP Margin for such Accrual Period; and (b) in the case of any portion of the
Additional Note Principal Balance during such Accrual Period that is purchased by the
Committed Purchaser, a per annum interest rate equal to One-Month LIBOR for the related
LIBOR Determination Date plus the LIBOR Margin and, if applicable, the Additional LIBOR
Margin for such Accrual Period.”

     (c) The definition of “CP Cost of Funds Rate” is hereby added to Section 1 of the Pricing
Letter as follows:

     “CP Cost of Funds Rate”: The per annum rate equivalent to the weighted average of the
rates payable by the Conduit Purchaser in respect of its commercial paper outstanding on
such day that is allocated, in whole or in part, to fund or maintain its net investment in
the Additional Note Principal Balances, converted (as necessary) to an annual yield
equivalent rate calculated on the basis of a 360-day year, which rates shall include issuing
and paying agent fees and any placement agent or commercial paper fees and commissions.

     (d) The definition of “CP Margin” is hereby added to Section 1 of the Pricing Letter as
follows:

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     “CP Margin: With respect to each day, the percentage corresponding to the Loans
pledged to the Indenture Trustee on of such day, as set forth in the following table:

	 	 	 	 	 
	First Lien Mortgage Loans

	 	 	0.50	%
	Second Lien Mortgage Loans

	 	 	0.50	%
	Wet Funded Loans

	 	 	0.70	%
	30 days Delinquent Loan

	 	 	1.00	%”

     (e) The definition of “Additional CP Margin” is hereby added to Section 1 of the Pricing
Letter as follows:

          “Additional CP Margin: With respect to each day, the percentage corresponding to the Unfunded
Transfer Obligation Percentage as of such day, as set forth in the following table:

	 	 	 	 	 
	Unfunded Transfer Obligation Percentage:	 	Additional CP Margin:
	 
	>=7.00%
	 	 	0.00	%
	>=6.00%, but <7.00%
	 	 	0.375	%
	>=5.00%, but <6.00%
	 	 	0.75	%
	>=4.00%, but <5.00%
	 	 	1.00	%
	<4.00%
	 	 	1.25	%

     provided that the Additional CP Margin shall be equal to 3.00% upon the occurrence of an Event
of Default, any Termination Event or after the conditions for a Cleanup Call have been satisfied.”

          SECTION 4. Representations. To induce the HSBC Entities to execute and deliver this
Amendment, each of the Issuer and the Depositor hereby jointly and severally represents to the HSBC
Entities that as of the date hereof, after giving effect to this Amendment, (a) all of its
respective representations and warranties in the Basic Documents are true and correct, and (b) it
is otherwise in full compliance with all of the terms and conditions of the Basic Documents.

          SECTION 5. Fees and Expenses. The Issuer and the Depositor jointly and severally
covenant to pay as and when billed by the HSBC Entities all of the reasonable out-of-pocket costs
and expenses incurred in connection with the transactions contemplated hereby and in the other
Basic Documents including, without limitation, (i) all reasonable fees, disbursements and expenses
of counsel to the HSBC Entities, (ii) all reasonable fees and expenses of the Indenture Trustee and
Owner Trustee and their counsel and (iii) all reasonable fees and expenses of the Custodian and its
counsel.

          SECTION 6. Limited Effect. Except as expressly amended and modified by this
Amendment, the Transaction Documents shall continue in full force and effect in accordance with its
terms. Reference to this Amendment need not be made in any of the Transaction Documents or any
other instrument or document executed in connection therewith, or in any certificate, letter or
communication issued or made pursuant to, or with respect to, the Transaction Documents, any
reference in any of such items to the Transaction Documents being sufficient to refer to the
Transaction Documents as amended hereby.

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          SECTION 7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAWS DOCTRINE
APPLIED IN SUCH STATE.

          SECTION 8. Counterparts. This Amendment may be executed by each of the parties
hereto in any number of separate counterparts, each of which when so executed shall be an original
and all of which taken together shall constitute one and the same instrument.

          SECTION 9. Limitation on Liability. It is expressly understood and agreed by the
parties hereto that (a) this Amendment is executed and delivered by Wilmington Trust Company, not
individually or personally, but solely as Owner Trustee of Option One Owner Trust 2005-7 in the
exercise of the powers and authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust Company but is made and
intended for the purpose for binding only the Issuer, (c) nothing herein contained shall be
construed as creating any liability on Wilmington Trust Company, individually or personally, to
perform any covenant either expressed or implied contained herein, all such liability, if any,
being expressly waived by the parties hereto and by any Person claiming by, through or under the
parties hereto and (d) under no circumstances shall Wilmington Trust Company be personally liable
for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer
under this Amendment or any other related documents.

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

	 	 	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2005-7	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wilmington Trust Company, not in its
individual capacity but solely as owner
trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE LOAN WAREHOUSE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	HSBC BANK USA, N.A., as Committed Purchaser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BRYANT PARK FUNDING LLC, as Conduit Purchaser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	HSBC SECURITIES (USA) INC., as Noteholder Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	HSBC SECURITIES (USA) INC., as Administrative
Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:

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