Document:

exv10w4

 

Exhibit 10.4

AMENDMENT NUMBER ONE

to the

SECOND AMENDED AND RESTATED SALE AND SERVICING AGREEMENT,

Dated as of March 8, 2005,

among

OPTION ONE OWNER TRUST 2001-2,

OPTION ONE LOAN WAREHOUSE CORPORATION,

OPTION ONE MORTGAGE CORPORATION

and
WELLS FARGO BANK N.A.

          This AMENDMENT NUMBER ONE (this “Amendment”) is made and is effective as of this 30th day of
June, 2005 (the “Effective Date”), among Option One Owner Trust 2001-2 (the “Issuer”), Option One
Loan Warehouse Corporation (the “Depositor”), Option One Mortgage Corporation (the “Loan
Originator” and the “Servicer”) and Wells Fargo Bank N.A., as Indenture Trustee (the “Indenture
Trustee”), to the Second Amended and Restated Sale and Servicing Agreement, dated as of March 8,
2005 (the “Sale and Servicing Agreement”), among the Issuer, the Depositor, the Loan Originator,
the Servicer and the Indenture Trustee.

RECITALS

          WHEREAS, the parties hereto desire to amend the Sale and Servicing Agreement subject to the
terms and conditions of this Amendment.

          NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and 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 Sale and Servicing Agreement.

          SECTION 2. Amendments. As of the Effective Date, the following amendments shall be in
full force and effect.

(a) Section 1.01 of the Sale and Servicing Agreement is hereby amended by deleting in its
entirety the definition of “Collateral Value” and replacing such definition with the
following:

“Collateral Value: (I) With respect to the Advance Note and each Business Day, 100% of the
Note Principal Balance of the Advance Note on such day and (II) with respect to each Loan
and each Business Day, an amount equal to the positive difference, if any, between (a) the
lesser of (1) the Collateral Percentage of the Market Value of such Loan, and (2) 100% of
the Principal Balance of such Loan (other than a Scratch & Dent Loan which shall be 75% of
the Principal Balance thereof) each as of such Business Day, less (b) the aggregate
unreimbursed Servicing Advances attributable to such Loan as of the most recent
Determination Date; provided, however, that the Collateral Value shall be zero with respect
to the Advance Note following the occurrence of an Advance Note Event of

 

 

Default and with respect to each Loan (1) that the Loan Originator is required to repurchase
pursuant to Section 2.05 or Section 3.06 hereof or (2) which is a Loan of the type specified
in subparagraphs (i)-(xi) hereof and which is in excess of the limits permitted under
subparagraphs(i)-(xi) hereof, or (3) which remains pledged to the Indenture Trustee later
than 180 days after its related Transfer Date, or (4) which has been released from the
possession of the Custodian to the Servicer or any Loan Originator for a period in excess of
21 days or exceed the 50 Loan limit for released Loans set forth in the Custodial Agreement,
or (5) that is a Loan which is 60 or more days Delinquent or a Foreclosed Loan, or (6) that
is a Mixed Use Loan, or (7) that is a Wet Funded Loan and the related Loan Documents have not
been delivered to the Custodian within fifteen (15) calendar days after the date of
conveyance of such Loan to the Issuer hereunder, or (8) that is a Scratch and Dent Loan that
has not been liquidated within 90 days after the determination of such deficiency, or (9)
that has an original Principal Balance greater than $1,500,000 or (10) that is a Scratch and
Dent Loan for which a description of the related deficiency has not been reported to the
Initial Noteholder within one Business Day of the related Transfer Date or (11) that has a
Fatal Exception; provided, further, that (A)

	 	(i)	 	the aggregate Collateral Value of Loans which are Second Lien Loans may not exceed 12%
of the Maximum Note Principal Balance; provided, that the aggregate Collateral Value of
Second Lien Loans exclusive of any Second Lien Loans that are Piggy-Backed Loans may not
exceed 5% of the Maximum Note Principal Balance;
	 
	 	(ii)	 	the aggregate Collateral Value of Loans that are High LTV Loans may not exceed 10% of
the Maximum Note Principal Balance;
	 
	 	(iii)	 	the aggregate Collateral Value of Loans which are 30 to 59 days Delinquent as of the
related Determination Date may not exceed 5% of the Maximum Note Principal Balance;
	 
	 	(iv)	 	the aggregate Collateral Value of Loans with an original Principal Balance greater than
$350,000 but less than $500,000 may not exceed 20% of the Maximum Note Principal Balance;
	 
	 	(v)	 	the aggregate Collateral Value of Loans with an original Principal Balance greater than
$500,000 may not exceed 12% of the Maximum Note Principal Balance;
	 
	 	(vi)	 	he aggregate Collateral Value of Loans which are classified as “CC” quality Loans may not
exceed 5% of the Maximum Note Principal Balance;
	 
	 	(vii)	 	the aggregate Collateral Value of Loans which are classified as “C” or “CC” quality Loans
may not exceed 8% of the Maximum Note Principal Balance;
	 
	 	(viii)	 	the aggregate Collateral Value of Loans which are Scratch and Dent Loans may not in the
aggregate exceed 5% of the Maximum Note Principal Balance;
	 
	 	(ix)	 	the aggregate Collateral Value of Loans that are Wet Funded Loans may not exceed 50% of
the Maximum Note Principal Balance;

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	 	(x)	 	the aggregate Collateral Value of Loans that conform to Fannie Mae, Freddie Mac or
Ginnie Mae underwriting guidelines may not exceed 20% of the Maximum Note Principal
Balance, and the interest rates of such Loans shall be sufficiently hedged to the
satisfaction of the Initial Noteholder;
	 
	 	(xi)	 	the aggregate Collateral Value of Loans which are Interest-Only Loans may not in
the aggregate exceed 30% of the Maximum Note Principal Balance and
	 
	 	(xii)	 	the aggregate Collateral Value of Advance Receivables shall in no event exceed
$112 million.

(B) each Loan shall be counted in each applicable category in (A) above and may be counted
in 2 or more categories in (A) above at the same time; provided that once the Collateral
Value of any Loan equals zero, it shall not be counted in any category listed in (A)
above.”

     (c) Section 1.01 of the Sale and Servicing Agreement is hereby amended by adding the
following definitions:

     “Document Exception Loan: A non-Wet Funded Loan which is included on the Exceptions Report
but does not have a Fatal Exception and is within the 30 day cure period in Section 2.05(b)(ii).”

     “Interest-Only Loan: A Loan which, by its terms, requires the related Borrower to make
monthly payments of only accrued interest for the certain period of time following origination.
After such interest-only period, the loan terms provide that the Borrower’s monthly payment will
be recalculated to cover both interest and principal so that such Loan will amortize fully on or
prior to its final payment date.”

     “Fatal Exception: A non-Wet Funded Loan that does not have (i) the documents referenced in
Section 2(b)(i), (iii), (iv), (v) and (vi) of the Custodial Agreement and (ii) some evidence that
a title insurance policy has been issued or a commitment to issue such policy, in the Custodial
Loan File and which are listed on the Fatal Exception Report.”

     “Fatal Exception Report: A report which shall be included in the Exceptions Report provided
by the Custodian, that will clearly identify any Loan with a Fatal Exception.”

     (d) Section 1.01 of the Sale and Servicing Agreement is hereby amended by deleting the
definition of “High LTV Loans” in its entirety and replacing it with the following:

     “High LTV Loans: First Lien Loans with an LTV greater than or equal to 95% and less than or
equal to 100%.”

     (e) Section 1.01 of the Sale and Servicing Agreement is hereby amended by inserting the
following after the words “underwriting deficiencies” on the second line of the definition of
“Scratch and Dent Loan”:

“(other than a Fatal Exception or Document Exception Loan)”

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     (f) Section 2.05 of the Sale and Servicing Agreement is hereby amended by deleting clause
(b)(i) in its entirety and replacing it with the following:

     “With respect to (i) any non-Wet Funded Loan which has a Fatal Exception in the Exceptions
Report, the Loan Originator shall cure such exceptions by delivering such missing documents to the
Custodian or otherwise curing the defect no later than one Business Day, (ii) any non-Wet Funded
Loans which are set forth as exceptions in the Exceptions Report (other than Fatal Exceptions) (a
“Non-Fatal Exception”), the Loan Originator shall cure such exceptions by delivering such missing
documents to the Custodian or otherwise curing the defect within 30 days of the Transfer Date;
provided; however, that if such Non-Fatal Exception is not cured within 30 days of the Transfer
Date, such Loan shall be a Scratch and Dent Loan for purposes of this Agreement or (iii) any Wet
Funded Loans which are set forth as exceptions in the Exceptions Report, the Loan Originator shall
cure such exceptions by delivering such missing documents to the Custodian or otherwise curing the
defect no later than one Business Day after the Wet Funded Custodial File Delivery Date, in each
case, following the receipt of the first Exceptions Report listing such exception with respect to
such Loan.”

     (g) Exhibit E of the Sale and Servicing Agreement is hereby amended by deleting clause (20) in
its entirety and replacing it with the following:

     “Except with respect to Interest-Only Loans, principal payments on the Loan commenced no more
than two months after the proceeds of the Loan were disbursed. The Loan bears interest at the Loan
Interest Rate. With respect to each Loan, the Promissory Note is payable on the first day of each
month in Monthly Payments, which, (A) in the case of a fixed rate Loan other than a Balloon Loan,
are sufficient to fully amortize the original principal balance over the original term thereof and
to pay interest at the related Loan Interest Rate, (B) in the case of an ARM Loan other than a
Balloon Loan, are changed on each Adjustment Date, and in any case, are sufficient to fully
amortize the original principal balance over the original term thereof and to pay interest at the
related Loan Interest Rate and (C) in the case of a Balloon Loan, are based on a fifteen (15) or
thirty (30) year amortization schedule, as set forth in the related Promissory Note, and a final
monthly payment substantially greater than the preceding monthly payment which is sufficient to
amortize the remaining principal balance of the Balloon Loan and to pay interest at the related
Loan Interest Rate. No Balloon Loan has an original stated maturity of less than seven (7) years.
The Promissory Note does not permit negative amortization. No Loan is a Convertible Mortgage
Loan;”

          SECTION
3. Representations. In order to induce the parties hereto to execute and
deliver this Amendment, each of the Issuer, the Depositor and the Loan Originator hereby jointly
and severally represents to the other parties hereto and the Noteholders that as of the date
hereof, after giving effect to this Amendment, (a) all of its respective representations and
warranties in the Note Purchase Agreement and the other Basic Documents are true and correct, and
(b) it is otherwise in full compliance with all of the terms and conditions of the Sale and
Servicing Agreement.

          SECTION 4. Limited Effect. Except as expressly amended and modified by this Amendment,
the Sale and Servicing Agreement shall continue in full force and effect in accordance with its
terms. Reference to this Amendment need not be made in the Sale and Servicing Agreement or any
other instrument or document executed in connection therewith or

4

 

herewith, or in any certificate, letter or communication issued or made pursuant to, or with
respect to, the Sale and Servicing Agreement, any reference in any of such items to the Sale and
Servicing Agreement being sufficient to refer to the Sale and Servicing Agreement as amended
hereby.

          SECTION 5. Fees and Expenses. The Issuer and the Depositor jointly and severally
covenant to pay as and when billed by the Initial Noteholder 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 Initial Noteholder, (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. 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 7. 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.

          SECTION 8. 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 2001-2 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 2001-2

 	 
	 	By:  Wilmington Trust Company, not in its individual capacity but solely as owner trustee	 
	 
	 	By:   	/s/
Mary Kay Pupillo	 
	 	Name:
Title:	Mary Kay Pupillo

Assistant Vice President	 
	 
	 	OPTION ONE LOAN WAREHOUSE CORPORATION 

 	 
	 	By:  	/s/ Charles R. Fulton
 	 
	 	Name:  	Charles R. Fulton 	 
	 	Title:  	Assistant Secretary 	 
	 
	 	OPTION ONE MORTGAGE CORPORATION

 	 
	 	By:  	/s/ Charles R. Fulton
 	 
	 	Name:  	Charles R. Fulton 	 
	 	Title:  	Vice President 	 
	 
	 	WELLS FARGO BANK N.A., as Indenture

Trustee

 	 
	 	By:  	/s/ Reid C. Denny
 	 
	 	Name:  	Reid C. Denny 	 
	 	Title:  	Vice President 	 

[Signature Page to Amendment One to the Second Amended and Restated Sale and Servicing Agreement]

6exv10w5

 

Exhibit 10.5

AMENDMENT NUMBER FIVE

to the

AMENDED AND RESTATED NOTE PURCHASE AGREEMENT,

dated as of November 25, 2003

among

OPTION ONE OWNER TRUST 2001-2,

OPTION ONE LOAN WAREHOUSE CORPORATION

and

BANK OF AMERICA, N.A.

     This AMENDMENT NUMBER FIVE (this “Amendment”) is made and is effective as of this 30th day of
June, 2005 (the “Effective Date”), among Option One Owner Trust 2001-2 (the “Issuer”), Option One
Loan Warehouse Corporation (the “Depositor”) and Bank of America, N.A. (“BofA”, and in its
capacity as Purchaser, the “Purchaser”) to the Amended and Restated Note Purchase Agreement, dated
as of November 25, 2003, as amended (the “Note Purchase Agreement”), among the Issuer, the
Depositor and the Purchaser.

RECITALS

     WHEREAS, the Issuer has requested that the Purchaser agree to amend the Note Purchase
Agreement to extend the time period with respect to the increase of the Maximum Note Principal
Balance from $2,000,000,000 to $3,000,000,000, to September 30, 2005 and $2,500,000,000 thereafter
and the Purchaser has agreed to make such amendments, subject to the terms and conditions of this
Amendment.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and the mutual covenants herein contained, the parties hereto hereby agree as
follows:

     SECTION 1. Defined Terms. Any capitalized terms used but not otherwise defined herein shall
have the respective meanings set forth in the Note Purchase Agreement.

     SECTION 2. Amendment. As of the Effective Date, the definition of “Maximum Note Principal
Balance” in Section 1.01 is hereby deleted in its entirety and replaced with the following:

     “Maximum Note Principal Balance” means, from the Effective Date to and including September 30,
2005, an amount equal to $3,000,000,000, less any reductions pursuant to Section 2.06 of the Sale
and Servicing Agreement. After September 30, 2005 such term shall mean an amount equal to
$2,500,000,000, less any reductions pursuant to Section 2.06 of the Sale and Servicing Agreement.

     SECTION 3. Representations. To induce the Purchaser to execute and deliver this Amendment,
each of the Issuer and the Depositor hereby represents to the Purchaser that as of the date hereof,
after giving effect to this Amendment, (a) all of its respective representations and warranties in
the Note Purchase Agreement and the other Basic Documents are true and

1

 

correct,
and (b) it is otherwise in full compliance with all of the terms and conditions of the
Note Purchase Agreement.

     SECTION
4. Fees and Expenses. The Issuer and the Depositor jointly and severally covenant to
pay as and when billed by the Purchaser 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 Purchaser, (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 5. Limited Effect. Except as expressly amended and modified by this Amendment, the
Note Purchase Agreement shall continue in full force and effect in accordance with its terms.
Reference to this Amendment need not be made in the Note Purchase Agreement 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 Note Purchase Agreement, any
reference in any of such items to the Note Purchase Agreement being sufficient to refer to the
Note Purchase Agreement as amended hereby.

     SECTION 6. 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 7. 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 8. 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 2001-2 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.

2

 

     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 2001-2

 	 
	 	By:  Wilmington Trust Company, not in its individual capacity but solely as owner trustee
 	 
	 
	 	By:	/s/ Mary Kay Pupillo	 
	 	Name:
Title:	Mary Kay Pupillo

Assistant Vice President 	 
	 
	 	OPTION ONE LOAN WAREHOUSE CORPORATION

 	 
	 	By:  	/s/ Charles R. Fulton
 	 
	 	Name:  	Charles R. Fulton 	 
	 	Title:  	Assistant Secretary 	 
	 
	 	BANK OF AMERICA, N.A. 

 	 
	 	By:  	/s/ Garrett Dolt
 	 
	 	Name:  	GARRETT DOLT	 
	 	Title:  	PRINCIPAL 	 

[Signature Page to Amendment Five to the Amended and Restated Note Purchase Agreement]

3

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