Document:

SETTLEMENT AGREEMENT

This  SETTLEMENT  AGREEMENT  ("Agreement")  dated  as  of August 9, 2002, by and
between  FINOVA  CAPITAL CORPORATION, a corporation organized and existing under
the  laws  of the State of Delaware ("FINOVA"), AIR 41, LLC, a limited liability
company  formed  under  the  laws  of the State of Delaware ("Air 41"), AIRCORP,
INC.,  a Texas corporation ("Aircorp"), and INTERNATIONAL AIRLINE SUPPORT GROUP,
INC.,  a  Delaware  corporation  ("IASG").

                                    RECITALS
                                    --------

            (1)        Pursuant  to  the  Secured  Loan  Agreement,  dated as of
September  16,  1998,  between  FINOVA and AIR 41 (the "Loan Agreement"), FINOVA
loaned  to  Air 41 the amount of $76,000,000.00 in order to finance, among other
things,  the  acquisition  by  Air  41  of  20 McDonnel Douglas DC-9-41 Aircraft
described  on  Schedule  A  hereto  (collectively,  the  "Aircraft");

            (2)        All  capitalized  terms  used  in  this Agreement without
definition  shall  have  the  meanings  set  forth  in  the  Loan  Agreement;

            (3)        In  order  to  secure the obligations of Air 41 under the
Loan  Agreement:

(i)         Air  41  granted  to  FINOVA  a first priority security interest and
second  priority  security  interest  in each of six Aircraft, identified in the
Loan Agreement as the Norway Aircraft, pursuant to six first priority mortgages,
each  dated  September  16,  1998  and six second priority mortgages, each dated
December  8,  1998;

(ii)        Air  41  granted to FINOVA a first priority security interest in the
beneficial  interest  of  Air  41  in  and  to the Trust Estate, pursuant to the
Beneficial  Interest Security Agreement, dated as of September 16, 1998, between
Air  41  and FINOVA, each of which Trust Estate consists of, among other things,
one  of  the  eight  Aircraft,  identified  in  the Loan Agreement as the Sweden
Aircraft;

(iii)       Air  41 granted to FINOVA a first priority security interest in each
of  the  six Aircraft, identified in the Loan Agreement as the Denmark Aircraft,
pursuant  to  six  letters  of  indemnity,  each  dated  September  16,  1998;

(iv)       Air  41  granted to FINOVA a first priority security interest in each
of  the  12  Lease Agreements, each dated September 16, 1998 and each related to
one of the six Norway Aircraft or one of the six Denmark Aircraft pursuant to 12
Collateral  Assignments,  each  dated  September  16,  1998;  and

(v)        Air  41  and  First Security Bank, National Association (now known as
Wells  Fargo Bank Northwest, National Association), as owner trustee, granted to
FINOVA a first priority security interest in each of the eight Lease Agreements,
each  dated  September  16,  1998 and each related to one of the Sweden Aircraft
pursuant  to  eight  Collateral  Assignments,  each  dated  September  16, 1998;

            (4)        In  March,  1999,  the  Norway Aircraft were deregistered
from Norway and registered in Sweden and Air 41 subsequently granted to FINOVA a
first  priority security interest in each of the six Norway Aircraft in order to
secure  the  obligations  of  Air  41  under  the  Loan  Agreement;

            (5)        In  order  to  secure the obligations of Air 41 under the
Loan Agreement Air 41 delivered to FINOVA a letter of credit, in the face amount
of  $1,150,000.00,  for the account of Aircorp (the "Aircorp L/C"), and a letter
of  credit,  in  the  face amount of $1,150,000.00, for the account of IASG (the
"IASG  L/C,"  and,  together  with  the  Aircorp  L/C,  the  "L/Cs");

            (6)        Pursuant  to a letter agreement dated September 16, 1998,
between Air 41 and the Lessee (the "September, 1998 Letter"), the Lessee agreed,
among  other things, to return each Aircraft with a minimum time remaining until
the  next  Heavy  Maintenance Visits and to compensate Air 41 if any Aircraft is
returned  with  less  than such minimum time remaining; with the payment of such
compensation to be made on October 1, 2002, and not later than 30 days after the
delivery  of  the  last  Aircraft  returned  (the  "D-Check  Payments");

            (7)        As  of  the  date  hereof,  the  11  Aircraft bearing the
following  manufacturer's  serial  numbers  (the  "US  Aircraft")  have  been
de-registered  from the registries of Sweden or Denmark, as the case may be, and
registered  at  the  FAA,  subject to mortgages in favor of FINOVA 47599, 47597,
47634,  47646, 47748 and 47778 (legal title to each of which is held by Air 41),
and  47633,  47747, 47750 and 47777 (legal title to each of which is held by the
Owner  Trustee);

            (8)        In  connection  with  the  termination  of  the Leases in
respect  of  the  US Aircraft, FINOVA, Air 41 and the Lessee entered into letter
agreements  (the  "Return  Letters") under which, among other things, the Lessee
paid  to  Air  41  amounts  (which  amounts  are  held  by  FINOVA) in financial
settlement  of  certain  return  conditions  of  the  US  Aircraft.

            (9)        Under  the Return Letter relating to the US Aircraft with
msn  47633,  the Lessee paid to Air 41 the amount of approximately $1,025,000.00
(the  "47633  Payout")  in  financial settlement of certain return conditions of
such  US Aircraft, of which amount FINOVA has expended approximately $965,000.00
to  make  those  repairs  necessary  to  cause  such  US  Aircraft  to be in the
appropriate  return  condition;

            (10)      FINOVA  intends  to  register  the  Current  Scandinavian
Aircraft  (as  defined  below) at the FAA upon the termination of the respective
Leases  relating  thereto  and,  at such time, negotiate, and enter into, letter
agreements  (also  "Return  Letters") with the Lessee under which the Lessee may
pay  additional  amounts  to  Air  41  in financial settlement of certain return
conditions  of  such  Aircraft.

            (11)      On  the  date  hereof  there is outstanding under the Loan
Agreement  the  aggregate  amount  of principal of $49,567,853.11, together with
accrued  interest  thereon  (the  "Indebtedness");

            (12)      As  a  result of the occurrence of Events of Default under
the  Loan  Agreement  arising from, among other things, the failure of Air 41 to
make  payments  of  principal  and  interest due and owing thereunder, by letter
dated  April 23, 2002, FINOVA declared the entire principal of the Loan, accrued
interest  thereon,  and all other sums due FINOVA under the Loan Documents to be
due  and  payable;

            (13)      On May 3, 2002, FINOVA drew down the entire face amount of
the  IASG  L/C;  and

            (14)      FINOVA  wishes  to accept all right, title and interest of
Air  41  in  the Aircraft, the Leases and the other Collateral, the amount drawn
down under the IASG L/C (other than the amount of $165,000.00 to be paid to IASG
hereunder),  a  new  letter  of  credit  for the account of Aircorp, the D-Check
Payments  to  be made under the September, 1998 Letter and all payments made and
to  be  made under the Return Letters, including the balance of the 47633 Payout
(other  than  the amount of $20,000.00 thereof to be paid to IASG hereunder), in
full  satisfaction of the obligations of Air 41 under the Loan Agreement and the
other  Loan  Documents (other than indemnification obligations) and Air 41, IASG
and  Aircorp  wish  to  consent  to  and  acknowledges  such  acceptance, all in
accordance  with  the  terms  and  conditions  hereof.

            NOW,  THEREFORE, in consideration of the foregoing premises, and for
other  good  and  valuable  consideration,  the adequacy and receipt of which is
hereby  acknowledged,  the  parties  hereto  agree  as  follows:

     1.                  DEFINED  TERMS.  The  following  capitalized terms used
                         --------------
herein  shall  have  the  meanings  set  forth  below:
            CURRENT SCANDINAVIAN AIRCRAFT means:  (a) the six Aircraft currently
registered  in  Sweden,  consisting  of:  (i)  the four Aircraft, legal title to
which is held by the Owner Trustee, bearing manufacturer's serial numbers 47610,
47627,  47629 and 47779; and (ii) the two Aircraft, legal title to which is held
by  Air 41, bearing manufacturer's serial numbers:  47626 and 47630; and (b) the
three  Aircraft currently registered in Denmark, legal title to which is held by
Air  41,  bearing  manufacturer's  serial  numbers:  47624,  47632  and  47725.

            EFFECTIVE  DATE  shall  have  the  meaning set forth in Section 7(c)
hereof.

            US  AIRCRAFT  shall  have  the  meaning set forth in the Recital (7)
hereof.

     2.                  ACCEPTANCE BY FINOVA.  As of the Effective Date, FINOVA
                         --------------------
hereby  accepts  all  right,  title  and interest of Air 41 in the Aircraft, the
Leases  and  the  other  Collateral,  all  amounts drawn down under the IASG L/C
(other  than  the  amount  of  $165,000.00  to be paid to IASG hereunder), a new
letter  of credit from Aircorp (as more fully described in Section 6(c) hereof),
the  D-Check  Payments  to  be  made  under  the  September, 1998 Letter and all
payments  made and to be made under the Return Letters, including the balance of
the  47633  Payout  (other  than  the  amount  of  $20,000.00 to be paid to IASG
hereunder)  (all of the above, collectively, the "Transferred Property") in full
satisfaction  of  all of the payment and performance obligations of Air 41 under
the  Loan  Agreement  and  the  other  Loan  Documents,  other  than obligations
thereunder  to  indemnify  FINOVA  (the  "Obligations").
3.                  CONSENT  BY AIR 41.  As of the Effective Date, Air 41 hereby
                    ------------------
consents to the acceptance by FINOVA of the Transferred Property in satisfaction
of  the  Obligations,  and  hereby acknowledges that FINOVA has a first priority
security interest in the Transferred Property, that the value of the Transferred
Property  does not exceed the Indebtedness, that this Agreement shall constitute
an  agreement  of Air 41 after default consenting to the acceptance by FINOVA of
the  Transferred Property in satisfaction of the Obligations pursuant to Revised
Section  9-620  of  the  Uniform  Commercial  Code  in  effect in any applicable
jurisdiction  (the  "UCC"),  and  acknowledges  that FINOVA has no obligation to
dispose  of  any of the Transferred Property in accordance with Section 9-610 of
the  UCC,  and  from and after the date hereof, FINOVA is free to sell, lease or
otherwise dispose of any and all of the Transferred Property unencumbered by and
free  of  any  interest,  rights,  liens  or  claims  of  Air  41  therein.
4.                  CONSENT  BY  AIRCORP  AND  IASG.  Each  of  Aircorp and IASG
                    -------------------------------
hereby  consents  to (i) the acceptance by FINOVA of the Transferred Property in
satisfaction  of the Obligations; (ii) the draw down by FINOVA of the ace amount
of  the  IASG  L/C;  and  (iii)  the  payment  by  FINOVA of the amounts to IASG
hereunder.  Notwithstanding  the foregoing, IASG and Aircorp do not release with
respect  to  one  another and do hereby specifically preserve any and all claims
and  causes  of  action  that  they may have against one another arising from or
related  to  the  draw down by FINOVA of the face amount of the IASG L/C and the
payment  by  IASG  of  certain  expenses  of  Air  41.
5.                  ASSIGNMENT  OF  RIGHTS.  Air 41 hereby assigns to FINOVA all
                    ----------------------
Air  41's right, title and interest in and to the September, 1998 Letter and all
Return Letters, including all amounts paid and payable by the Lessee thereunder.
6.                  ACTIONS  TAKEN  ON OR PRIOR TO THE DATE HEREOF.  On or prior
                    ----------------------------------------------
to  the  date  hereof:
     (a)                Air  41  shall:
(i)                  execute and deliver to FINOVA seven warranty bills of sale,
each  in  the  form  of Exhibit "A" hereto, conveying to FINOVA, or to any other
Person  at  FINOVA's  direction,  title  to each of the seven US Aircraft, legal
title  to  which is held by Air 41, and execute and cause to be filed at the FAA
an  FAA  Bill  of Sale on form FAA 8030-2 with respect to each such US Aircraft;
and
(ii)                cause  the  Owner  Trustee  to execute and deliver to FINOVA
four  warranty  bills of sale, each in the form of Exhibit "A" hereto, conveying
to  FINOVA,  or  to any other Person at FINOVA's direction, title to each of the
four US Aircraft, legal title to which is held by the Owner Trustee, and execute
and  cause  to  be  filed at the FAA an FAA Bill of Sale on form FAA 8030-2 with
respect  to  each  such  US  Aircraft.
     (b)               Air  41 shall execute and deliver to FINOVA an Assignment
and  Assumption  Agreement,  in  the  form  of  Exhibit "B" hereto, assigning to
FINOVA,  or to any other Person at FINOVA's direction, all the Lessor's interest
under  the  Leases relating to the US Aircraft, and shall execute and deliver to
FINOVA  a  letter,  in  form  and  substance acceptable to FINOVA, informing the
Lessee  that  Air  41  has  assigned  to FINOVA all its interest under each such
Lease;
(c)                FINOVA  shall  deliver to Air 41 the Note relating to each US
Aircraft;
(d)               FINOVA  shall  deliver  to  Aircorp  the  Aircorp  L/C;
(e)                Aircorp  shall  cause  to  be delivered to FINOVA a letter of
credit  replacing  the Aircorp L/C, in the face amount of $1,035,000.00, with an
expiration date of July 1, 2003, which FINOVA shall be permitted to draw upon on
or after May 3, 2003 and prior to the expiry date thereof, and otherwise in form
and  substance,  and  issued  by  a  domestic  bank, satisfactory to FINOVA; and
(f)                 FINOVA  shall  pay  to  IASG  the  aggregate  amount  of
$185,000.00,  consisting  of  the sum of $165,000.00 from the amount drawn under
the  IASG  L/C  and  $20,000.00  from  the  balance of the 47633 Payout, by wire
transfer  of  immediately  available  funds  to such account as IASG may direct.
     7.                  ACTIONS TAKEN AFTER THE EXECUTION HEREOF.  At the times
                         ----------------------------------------
indicated  below  the  parties  hereto  shall  take  the  following  actions:
     (a)                From  and after the date hereof, Air 41 and FINOVA shall
cooperate  to  the  extent  necessary  in  order to facilitate the return of the
Current  Scandinavian  Aircraft  from  the Lessee, including the negotiation and
execution  of  Return  Letters  relating  thereto.
(b)               Promptly  after the arrival of a Current Scandinavian Aircraft
in  the  United States in accordance with the applicable Return Letter, or after
the occurrence of a Total Loss under, and as defined in, the Lease relating to a
Current  Scandinavian  Aircraft.
(i)                  Air  41 shall, or shall cause the Owner Trustee to, execute
and  deliver  to  FINOVA  a  warranty  bill  of sale, in the form of Exhibit "A"
hereto, conveying to FINOVA, or to any other Person at FINOVA's direction, title
to  such  Aircraft  and  shall, or shall cause the Owner Trustee to, execute and
cause to be filed at the FAA an FAA Bill of Sale on form FAA 8030-2 with respect
to  each  such  Aircraft;
(ii)                Air 41 shall execute and deliver to FINOVA an Assignment and
Assumption Agreement, in the form of Exhibit "B" hereto, assigning to FINOVA, or
to  any  other Person at FINOVA's direction, all the Lessor's interest under the
Lease  relating to such Aircraft, including, without limitation, its interest to
any hull and war risk insurance proceeds and claims therefore, and shall execute
and  deliver  to  FINOVA  a  letter, in form and substance acceptable to FINOVA,
informing  the  Lessee that Air 41 has assigned to FINOVA all its interest under
each  such  Lease;  and
(iii)               FINOVA  shall  deliver  to  Air 41 the Note relating to such
Aircraft;
     (c)                On  the date (the "Effective Date") of the execution and
delivery  of  the  documents  referred  to in Section 7(b) for the 20th and last
Current  Scandinavian  Aircraft.
(i)                  Air  41  shall  execute and deliver to FINOVA a release, in
the  for of Exhibit "D-1" hereto, and FINOVA shall execute and deliver to Air 41
a  release,  in  the  form  of  Exhibit  "D-2"  hereto;
(ii)                Aircorp  shall  execute  and deliver to FINOVA a release, in
the  form  of  Exhibit  "E-1"  hereto,  and  FINOVA shall execute and deliver to
Aircorp  a  release,  in  the  form  of  Exhibit  "E-2";  and
(iii)               IASG  shall  execute and deliver to FINOVA a release, in the
form  of  Exhibit  "F-1"  hereto, and FINOVA shall execute and deliver to IASG a
release,  in  the  form  of  Exhibit  "F-2"  hereto.
     8.                  REMARKETING.  (a)  FINOVA  appoints  Air  41  as  a
                         -----------
non-exclusive  remarketing  agent for a period of 12 months from the date hereof
to  find, and conclude a binding agreement with, a purchaser or lessee of any of
the  Aircraft for a sale or lease thereof by FINOVA to such purchaser or lessee.
Air  41  shall  keep  FINOVA  reasonably  informed  of  the marketing activities
undertaken  by  it  (including,  without  limitation, furnishing monthly written
memorandum  of  such  activities  to  FINOVA, participating in monthly telephone
calls  with  FINOVA, and providing notice of any written or oral offers received
and  any  potential  purchasers  or  lessees  to  be  contacted  and  of  any
advertisements  to  be  placed  regarding  any  of  the  Aircraft).
     (b)               FINOVA may accept or reject an offer to purchase or lease
an Aircraft (or to choose from two or more competing offers to purchase or lease
an  Aircraft)  and the terms and provisions of any letter of intent, contract of
sale  or  lease  agreement,  in  its  sole  and  absolute  discretion.
(c)                Air  41  shall  bear and be responsible for all its costs and
expenses  incurred  in  connection  with  such  remarketing  of  the  Aircraft.
(d)               Air  41  shall be paid a commission in the amount of three per
cent (3%) of the net sale proceeds or net rent of any Aircraft sold or leased by
FINOVA  pursuant to an offer obtained by Air 41 in accordance with the provision
of  this  Section  5.  Such net sale proceeds or net rent shall be determined as
the  total  sales  proceeds  or  rent,  less  any  costs  or expenses (including
attorneys' fees and expenses) of FINOVA incurred in connection with such sale or
lease.
     9.                  MISCELLANEOUS.
                         -------------
     (a)                NOTICE.  All  notices  required  or  permitted hereunder
                        ------
shall  be  in  writing  and  may  be either telefaxed or sent by internationally
recognized  overnight  courier  service,  addressed  to Aircorp at the following
address:  200  Crescent  Court,  Suite  650,  Dallas, TX 75201, and to the other
parties,  at  the  addresses thereof set forth in the Loan Agreement, or to such
other  address  as  either  party  advises the other from time to time through a
notice given in accordance with the provisions of this Section 9(a).  Any notice
sent  by  FINOVA  to Air 41 shall also be sent to each of Aircorp and IASG.  Any
notice sent by either Aircorp or IASG to FINOVA shall also be sent to the other.
Any  such  notice  shall be effective and shall be deemed to have been given, in
the  case  of a facsimile, upon confirmation of receipt of such facsimile by the
addressee (provided that if the date of dispatch is not a Business Day, it shall
be  deemed to have been received at the opening of business on the next Business
Day),  and  in  the  case  of  a  notice sent by courier service, when delivered
personally (provided that if delivery is tendered but refused, such notice shall
be  deemed  effective  upon  such  tender).
(b)               COUNTERPARTS.  This Agreement may be executed in counterparts,
                  ------------
and  each  counterpart shall be an original, and all counterparts together shall
be  but  one  and  the  same  Agreement.
(c)                APPLICABLE  LAW.  THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN
                   ---------------
NEGOTIATED AND MADE IN, AND SHALL BE GOVERNED AND INTERPRETED UNDER THE LAWS OF,
THE  STATE  OF NEW YORK APPLICABLE TO AGREEMENTS MADE BY RESIDENTS THEREOF TO BE
ENTIRELY  PERFORMED  THEREIN.
(d)               CAPTIONS  AND  PARAGRAPH  HEADINGS.   Captions  and  paragraph
                  ----------------------------------
headings  used  herein  are  for  convenience  only  and  are not a part of this
Agreement  and  shall  not  be  used  in  construing  it.
(e)                SEVERABILITY.  In  the  event  that  any  one  or more of the
                   ------------
provisions  of  this Agreement shall be invalid, illegal or unenforceable in any
respect or in any jurisdiction, the validity, legality and enforceability of the
remaining  provisions  contained  herein  or of the same provisions in any other
jurisdiction  shall  not,  in  any  way,  be  affected  or  impaired  thereby.
(f)                 FURTHER  ASSURANCES.  Each  party will promptly, at any time
                    -------------------
and  from  time  to  time,  execute  and deliver to each other party hereto such
further  instruments  and  documents  and  take  such  further  action as may be
required  by  law  or as they may each reasonably request to establish, maintain
and  protect their respective rights and remedies and to carry out the intent of
the parties under this Agreement, including, without limitation, the transfer of
title  and  the  de-registration  of  the Current Scandinavian Aircraft upon the
termination  of  the  respective  Leases.
(g)                WRITTEN CHANGES ONLY.  No term or provision of this Agreement
                   --------------------
may  be changed or waived orally, but only by an instrument in writing signed by
the  parties  hereto.
(h)                EXCLUSIVENESS.  This  Agreement is the complete and exclusive
                   -------------
statement  of  the  parties hereto with respect to the subject matter hereof and
supersedes  all  prior  oral  and written communications, proposals, agreements,
representations,  statements,  negotiations and undertakings, whether express or
implied,  between  the parties hereto with respect to the subject matter hereof.
(i)                  TERMS  AND  DEFINITIONS.  The  terms  and  definitions,  as
                     -----------------------
herein  contained, shall include the singular and/or plural, masculine, feminine
and/or  neuter,  successors  and/or  permitted  assigns  wherever the context so
requires  or  admits.
(j)                 SUCCESSORS  AND  ASSIGNS.  This  Agreement  shall be binding
                    ------------------------
upon,  and shall inure to the benefit of and shall be enforceable by the parties
hereto  and  their  respective  successors  and  assigns.
(k)               EXPENSES.  Each  party hereto will bear and be responsible for
                  --------
all  costs and expenses incurred or to be incurred by it in connection with this
Agreement  and the transaction contemplated hereby, including but not limited to
outside  legal  counsel  and  advisors.

<PAGE>
IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  their duly authorized
officers  to  execute and deliver this Settlement Agreement as of the date first
above  written.

FINOVA  CAPITAL  CORPORATION                       AIR  41  LLC

By  /s/  Pamela  A.  Hart                        By:  /s/Alexius  A.  Dyer  III
    ---------------------                             -------------------------

Name:  Pamela A. Hart                                     Name:  Alexius A. Dyer
III

Title:  Vice  President
Title:  Manager

AIRCORP,  INC.
INTERNATIONAL  AIRLINE  SUPPORT  GROUP,  INC.

By  /s/  James  R.  Wikert                                  By:  /s/
    ----------------------------------------                             ---
Alexius  A.  Dyer  III
    ------------------

Name:  James  R.  Wikert                                               Name:
Alexius  A.  Dyer  III

Title:  President                                                 Title:
PresidentEXHIBIT 4.2
                                   -----------

                         SUBSEQUENT TRANSFER INSTRUMENT

         Pursuant to this Subsequent Transfer Instrument, dated October 11, 2002
(the "Instrument"), between Option One Mortgage Acceptance Corporation as seller
(the "Depositor"), and Wells Fargo Bank Minnesota, National Association as
trustee of the Option One Mortgage Loan Trust 2002-5 Asset-Backed Certificates,
Series 2002-5, as purchaser (the "Trustee"), and pursuant to the Pooling and
Servicing Agreement, dated as of July 1, 2002 (the "Pooling and Servicing
Agreement"), among the Depositor as depositor, Option One Mortgage Corporation
as master servicer and the Trustee as trustee, the Depositor and the Trustee
agree to the sale by the Depositor and the purchase by the Trustee in trust, on
behalf of the Trust, of the Mortgage Loans listed on the attached Schedule of
Mortgage Loans (the "Subsequent Mortgage Loans").

         Capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Pooling and Servicing Agreement.

         Section 1.   CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.

         (a) The Depositor does hereby sell, transfer, assign, set over and
convey to the Trustee in trust, on behalf of the Trust, without recourse, all of
its right, title and interest in and to the Subsequent Mortgage Loans, and
including all amounts due on the Subsequent Mortgage Loans after the related
Subsequent Cut-off Date, and all items with respect to the Subsequent Mortgage
Loans to be delivered pursuant to Section 2.01 of the Pooling and Servicing
Agreement; provided, however that the Depositor reserves and retains all right,
title and interest in and to amounts due on the Subsequent Mortgage Loans on or
prior to the related Subsequent Cut-off Date. The Depositor, contemporaneously
with the delivery of this Agreement, has delivered or caused to be delivered to
the Trustee each item set forth in Section 2.01 of the Pooling and Servicing
Agreement. The transfer to the Trustee by the Depositor of the Subsequent
Mortgage Loans identified on the Mortgage Loan Schedule shall be absolute and is
intended by the Depositor, the Master Servicer, the Trustee and the
Certificateholders to constitute and to be treated as a sale by the Depositor to
the Trust Fund.

         (b) The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Trustee
without recourse for the benefit of the Certificateholders all the right, title
and interest of the Depositor, in, to and under the Subsequent Mortgage Loan
Purchase Agreement, dated the date hereof, between the Depositor as purchaser
and the Master Servicer as seller, to the extent of the Subsequent Mortgage
Loans.

         (c) Additional terms of the sale are set forth on Attachment A hereto.

         Section 2.   REPRESENTATIONS AND WARRANTIES; CONDITIONS PRECEDENT.

         (a) The Depositor hereby confirms that each of the conditions precedent
and the representations and warranties set forth in Section 2.08 of the Pooling
and Servicing Agreement are satisfied as of the date hereof.

         (b) All terms and conditions of the Pooling and Servicing Agreement are
hereby ratified and confirmed; provided, however, that in the event of any
conflict, the provisions of this Instrument shall control over the conflicting
provisions of the Pooling and Servicing Agreement.

<PAGE>

         Section 3.   RECORDATION OF INSTRUMENT.

         To the extent permitted by applicable law, this Instrument, or a
memorandum thereof if permitted under applicable law, is subject to recordation
in all appropriate public offices for real property records in all of the
counties or other comparable jurisdictions in which any or all of the properties
subject to the Mortgages are situated, and in any other appropriate public
recording office or elsewhere, such recordation to be effected by the Master
Servicer at the Certificateholders' expense on direction of the related
Certificateholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Certificateholders or is necessary for the administration or servicing of
the Mortgage Loans.

         Section 4.   GOVERNING LAW.

         This Instrument shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.

         Section 5.   COUNTERPARTS.

         This Instrument may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.

         Section 6.  SUCCESSORS AND ASSIGNS.

         This Instrument shall inure to the benefit of and be binding upon the
Depositor and the Trustee and their respective successors and assigns.

<PAGE>

                                        OPTION ONE MORTGAGE ACCEPTANCE
                                        CORPORATION

                                        By:_____________________________________
                                        Name:
                                        Title:

                                        WELLS FARGO BANK MINNESOTA, NATIONAL
                                        ASSOCIATION, as Trustee for Option One
                                        Mortgage Loan Trust 2002-5, Asset-Backed
                                        Certificates, Series 2002-5

                                        By:_____________________________________
                                        Name:
                                        Title:

Attachments
-----------
A.       Additional terms of sale.
B.       Schedule of Subsequent Mortgage Loans.
C.       Schedule of Prepayment Charges.

<PAGE>

                                  ATTACHMENT A
                                  ------------

                            ADDITIONAL TERMS OF SALE

         A.       General

                  1.       Subsequent Cut-off Date: October 1, 2002
                  2.       Subsequent Transfer Date: October 11, 2002
                  3.       Aggregate Principal Balance of the Subsequent
                           Mortgage Loans as of the Subsequent Cut-off Date:
                           $3,135,321.75
                  4.       Purchase Price: 100.00%

         B. The obligation of the Trust Fund to purchase a Subsequent Mortgage
Loan on any Subsequent Transfer Date is subject to the satisfaction of the
conditions set forth in the immediately following paragraph and the accuracy of
the following representations and warranties with respect to each such
Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such Subsequent Mortgage Loan may not be 30 or more days delinquent as
of the last day of the month preceding the Subsequent Cut-off Date; (ii) the
original term to stated maturity of such Subsequent Mortgage Loan will not be
less than 120 months and will not exceed 360 months (or 180 months, in the case
of any Balloon Mortgage Loan); (iii) such Subsequent Mortgage Loan will not have
a loan-to-value ratio greater than 100.00%; (iv) such Subsequent Mortgage Loans
will have, as of the Subsequent Cut-off Date, a weighted average term since
origination not in excess of 6 months; (v) such Subsequent Mortgage Loan, if a
Fixed Rate Mortgage Loan, shall have a Mortgage Rate that is not less than 6.25%
per annum or greater than 14.14% per annum; (vi) such Subsequent Mortgage Loan
must have a first payment date occurring on or before October 1, 2002; (vii) if
the Subsequent Mortgage Loan is an Adjustable Rate Mortgage Loan, the Subsequent
Mortgage Loan will have a Gross Margin not less than 3.50% per annum; (viii) if
the Subsequent Mortgage Loan is an Adjustable Rate Mortgage Loan, the Subsequent
Mortgage Loan will have a Maximum Mortgage Rate not less than 12.10% per annum;
(ix) if the Subsequent Mortgage Loan is an Adjustable Rate Mortgage Loan, the
Subsequent Mortgage Loan will have a Minimum Mortgage Rate not less than 6.10%
per annum, (x) the Subsequent Mortgage Loan may not provide for negative
amortization; (xi) such Subsequent Mortgage Loan shall have been serviced by the
Master Servicer since origination or the date of purchase, (xii) if the
Subsequent Mortgage Loan is to be included in Loan Group I, such Subsequent
Mortgage Loan will have an original Principal Balance within the dollar amount
limits prescribed by Freddie Mac for conforming one- to four-family mortgage
loans and (xiii) such Subsequent Mortgage Loan shall have been underwritten in
accordance with the criteria set forth under "Option One Mortgage
Corporation--Underwriting Standards" in the Information Circular and the
Prospectus Supplement.

         C. Following the purchase of any Subsequent Group I Mortgage Loan by
the Trust, the Group I Mortgage Loans (including such Subsequent Group I
Mortgage Loans): (i) will have a weighted average original term to stated
maturity of not more than 360 months, (ii) will have a weighted average term
since origination not in excess of 6 months; (iii) will have a weighted average
Mortgage Rate of not less than 8.803% per annum; (iv) will have a weighted
average Loan-to-Value

<PAGE>

Ratio of not more than 79.50%; (v) will have a weighted average Gross Margin for
the Adjustable- Rate Group I Mortgage Loans that is not less than 5.998% per
annum; (vi) will have a weighted average Maximum Mortgage Rate for the
Adjustable-Rate Group I Mortgage Loans of not less than 14.79% per annum; (vii)
will have a weighted average Minimum Mortgage Rate for the Adjustable- Rate
Group I Mortgage Loans of not less than 8.79% per annum; (viii) will have no
Group I Mortgage Loan with a Principal Balance that does not conform to Freddie
Mac loan limits; (ix) will be secured by Mortgaged Properties in any one state
representing no more than 14.17% of the aggregate Principal Balance of the Group
I Mortgage Loans; (x) will be secured by Mortgaged Properties in any one zip
code representing no more than 0.50% of the aggregate Principal Balance of the
Group I Mortgage Loans; (xi) will be secured by non-owner occupied Mortgaged
Properties representing no more than 5.26% of the aggregate Principal Balance of
the Group I Mortgage Loans; (xii) will be secured by two- to four-family
Mortgaged Properties representing no more than 11.67% of the aggregate Principal
Balance of the Group I Mortgage Loans; (xiii) will have a weighted average FICO
score of the related mortgagor of not less than 593; (xiv) will have a cash-out
refinance loan purpose representing no more than 61.22% of the aggregate
Principal Balance of the Group I Mortgage Loans; (xv) will have Prepayment
Charge provisions with respect to no less than 82.54% of the aggregate Principal
Balance of the Group I Mortgage Loans; (xvi) will have an Originator's risk
grade of CC representing no more than 1.02% of the aggregate Principal Balance
of the Group I Mortgage Loans; (xvii) will have an Originator's risk grade of C
representing no more than 4.82% of the aggregate Principal Balance of the Group
I Mortgage Loans; (xviii) will have an Originator's risk grade of B representing
no more than 15.86% of the aggregate Principal Balance of the Group I Mortgage
Loans; (xix) will have Group I Mortgage Loans with a Loan-to-Value Ratio at
origination of 80.00% representing no more than 29.94% of the aggregate
Principal Balance of the Group I Mortgage Loans; (xx) will have Group I Mortgage
Loans with a Loan-to-Value Ratio at origination in excess of 80.00% representing
no more than 36.34% of the aggregate Principal Balance of the Group I Mortgage
Loans; (xxi) will have Group I Mortgage Loans with a Loan-to- Value Ratio at
origination in excess of 90.00% representing no more than 10.87% of the
aggregate Principal Balance of the Group I Mortgage Loans; (xxii) will have
Group I Mortgage Loans with a Loan-to-Value Ratio at origination in excess of
95.00% representing no more than 0.30% of the aggregate Principal Balance of the
Group I Mortgage Loans; (xxiii) will have been underwritten in accordance with
the Originator's Full Documentation Program representing not less than 63.59% of
the aggregate Principal Balance of the Group I Mortgage Loans; (xxiv) will have
been underwritten in accordance with the Originator's Stated Income
Documentation Program representing not more than 35.95% of the aggregate
Principal Balance of the Group I Mortgage Loans; (xxv) will have been
underwritten in accordance with the Originator's Mortgage Credit Only Program
representing not more than 5.52% of the aggregate Principal Balance of the Group
I Mortgage Loans; (xxvi) with respect to the Adjustable-Rate Group I Mortgage
Loans, approximately 94.67% of the aggregate Principal Balance thereof will have
their first adjustment 2 years following their date of origination and the
remainder of the Adjustable-Rate Group I Mortgage Loans will have their first
adjustment either six months or 3 years following their date of origination,
(xxvii) will have an average prepayment period of 24.98 months, (xxviii) will
have Fixed-Rate Group I Mortgage Loans representing no more than 12.76% of the
aggregate Principal Balance of the Group I Mortgage Loans, (xxix) will have
Balloon Mortgage Loans representing no more than 7.56% of the aggregate
Principal Balance of the Fixed-Rate Group I Mortgage Loans and (xxx) will have

<PAGE>

second lien Group I Mortgage Loans representing no more than 5.78% of the
aggregate Principal Balance of the Fixed-Rate Group I Mortgage Loans.

         D. Following the purchase of any Subsequent Group II Mortgage Loan by
the Trust, the Group II Mortgage Loans (including such Subsequent Group II
Mortgage Loans): (i) will have a weighted average original term to stated
maturity of not more than 360 months, (ii) will have a weighted average term
since origination not in excess of 6 months; (iii) will have a weighted average
Mortgage Rate of not less than 8.677% per annum; (iv) will have a weighted
average Loan-to-Value Ratio of not more than 79.69%; (v) will have a weighted
average Gross Margin for the Adjustable- Rate Group II Mortgage Loans that is
not less than 5.854% per annum; (vi) will have a weighted average Maximum
Mortgage Rate for the Adjustable-Rate Group II Mortgage Loans of not less than
14.649% per annum; (vii) will have a weighted average Minimum Mortgage Rate for
the Adjustable- Rate Group II Mortgage Loans of not less than 8.639% per annum;
(viii) [reserved]; (ix) will be secured by Mortgaged Properties in any one state
representing no more than 20.16% of the aggregate Principal Balance of the Group
II Mortgage Loans; (x) will be secured by Mortgaged Properties in any one zip
code representing no more than 0.53% of the aggregate Principal Balance of the
Group II Mortgage Loans; (xi) will be secured by non-owner occupied Mortgaged
Properties representing no more than 3.99% of the aggregate Principal Balance of
the Group II Mortgage Loans; (xii) will be secured by two- to four-family
Mortgaged Properties representing no more than 8.15% of the aggregate Principal
Balance of the Group II Mortgage Loans; (xiii) will have a weighted average FICO
score of the related mortgagor of not less than 597; (xiv) will have a cash-out
refinance loan purpose representing no more than 61.07% of the aggregate
Principal Balance of the Group II Mortgage Loans; (xv) will have Prepayment
Charge provisions with respect to no less than 79.73% of the aggregate Principal
Balance of the Group II Mortgage Loans; (xvi) will have an Originator's risk
grade of CC representing no more than 1.47% of the aggregate Principal Balance
of the Group II Mortgage Loans; (xvii) will have an Originator's risk grade of C
representing no more than 3.62% of the aggregate Principal Balance of the Group
II Mortgage Loans; (xviii) will have an Originator's risk grade of B
representing no more than 10.02% of the aggregate Principal Balance of the Group
II Mortgage Loans; (xix) will have Group II Mortgage Loans with a Loan-to-Value
Ratio at origination of 80.00% representing no more than 28.30% of the aggregate
Principal Balance of the Group II Mortgage Loans; (xx) will have Group II
Mortgage Loans with a Loan-to-Value Ratio at origination in excess of 80.00%
representing no more than 35.29% of the aggregate Principal Balance of the Group
II Mortgage Loans; (xxi) will have Group II Mortgage Loans with a Loan-to- Value
Ratio at origination in excess of 90.00% representing no more than 11.10% of the
aggregate Principal Balance of the Group II Mortgage Loans; (xxii) will have
Group II Mortgage Loans with a Loan-to-Value Ratio at origination in excess of
95.00% representing no more than 0.06% of the aggregate Principal Balance of the
Group II Mortgage Loans; (xxiii) will have been underwritten in accordance with
the Originator's Full Documentation Program representing not less than 51.01% of
the aggregate Principal Balance of the Group II Mortgage Loans; (xxiv) will have
been underwritten in accordance with the Originator's Stated Income
Documentation Program representing not more than 40.99% of the aggregate
Principal Balance of the Group II Mortgage Loans; (xxv) will have been
underwritten in accordance with the Originator's Mortgage Credit Only Program
representing not more than 5.98% of the aggregate Principal Balance of the Group
II Mortgage Loans; (xxvi) with respect to the Adjustable-Rate Group II Mortgage
Loans,

<PAGE>

approximately 83.00% of the aggregate Principal Balance thereof will have their
first adjustment 2 years following their date of origination and the remainder
of the Adjustable-Rate Group II Mortgage Loans will have their first adjustment
either six months or 3 years following their date of origination, (xxvii) will
have an average prepayment period of 25.05 months, (xxviii) will have Fixed-Rate
Group II Mortgage Loans representing no more than 20.20% of the aggregate
Principal Balance of the Group II Mortgage Loans, (xxix) will have Balloon
Mortgage Loans representing no more than 1.32% of the aggregate Principal
Balance of the Fixed-Rate Group II Mortgage Loans and (xxx) will have second
lien Group II Mortgage Loans representing no more than 12.29% of the aggregate
Principal Balance of the Fixed-Rate Group II Mortgage Loans.

         E. Notwithstanding the foregoing, any Subsequent Mortgage Loan may be
rejected by (i) the Guarantor, (ii) the NIMS Insurer or (ii) either Rating
Agency if the inclusion of any such Subsequent Mortgage Loan would adversely
affect the ratings of any Class of Certificates. At least one Business Day prior
to the Subsequent Transfer Date, each Rating Agency shall notify the Trustee as
to which Subsequent Mortgage Loans, if any, shall not be included in the
transfer on the Subsequent Transfer Date; provided, however, that the Originator
shall have delivered to each Rating Agency at least three Business Days prior to
such Subsequent Transfer Date a computer file acceptable to each Rating Agency
describing the characteristics specified in paragraphs (c) and (d) above.

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