Document:

Exhibit 4.2

<PAGE>

                         SUBSEQUENT TRANSFER INSTRUMENT

         Pursuant to this Subsequent Transfer Instrument, dated February 29,
2000 (the "Instrument"), between Option One Mortgage Acceptance Corporation as
seller (the "Depositor"), and Norwest Bank Minnesota, National Association as
trustee of the Option One Mortgage Loan Trust 2000-1 Asset-Backed Certificates,
Series 2000-1, as purchaser (the "Trustee"), and pursuant to the Pooling and
Servicing Agreement, dated as of January 1, 2000 (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.

<PAGE>

                  (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.

                  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:      /s/ William L. O'Neill
                                           -------------------------------
                                        Name:    William L. O'Neill
                                        Title:   Treasurer

                                        NORWEST BANK MINNESOTA,
                                        NATIONAL ASSOCIATION, as
                                        Trustee for Option One
                                        Mortgage Loan Trust 2000-1,
                                        Asset-Backed Certificates,
                                        Series 2000-1

                                        By:      /s/ Amy Doyle
                                           -------------------------------
                                        Name:    Amy Doyle
                                        Title:   Assistant Vice President

Attachments

A.       Additional terms of sale.
B.       Schedule of Subsequent Mortgage Loans.

<PAGE>

                                  ATTACHMENT A

                            ADDITIONAL TERMS OF SALE

                                   A. General

                  1.       Subsequent Cut-off Date: February 1, 2000
                  2.       Subsequent Transfer Date: February 29, 2000
                  3.       Aggregate Principal Balance of the Subsequent
                           Mortgage Loans as of the Subsequent Cut-off Date:
                           $43,990,746
                  4.       Purchase Price:  100.00%

         B. The following representations and warranties with respect to each
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 related 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; (iii) the Subsequent Mortgage Loan may not provide
for negative amortization; (iv) such Subsequent Mortgage Loan will not have a
loan-to-value ratio greater than 100%; (v) 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; (vi) such Subsequent Mortgage Loan, if a
Fixed Rate Mortgage Loan, shall have a Mortgage Rate that is not less than
7.000% or greater than 16.000%; (vii) such Subsequent Mortgage Loan shall have
been serviced by the Master Servicer since originated or purchased by the
Depositor; (viii) such Subsequent Mortgage Loan must have a first payment date
occurring on or before March 1, 2000; (ix) if the Subsequent Mortgage Loan is an
Adjustable Rate Mortgage Loan, the Subsequent Mortgage Loan will have a Gross
Margin not less than 3.000%; (x) if the Subsequent Mortgage Loan is an
Adjustable Rate Mortgage Loan, the Subsequent Mortgage Loan will have a Maximum
Mortgage Rate not less than 12.000%; (xi) if the Subsequent Mortgage Loan is an
Adjustable Rate Mortgage Loan, the Subsequent Mortgage Loan will have a Minimum
Mortgage Rate not less than 6.000%; and (xii) such Subsequent Mortgage Loan
shall have been underwritten in accordance with the criteria set forth under
"Option One Mortgage Corporation--Underwriting Standards" in the Prospectus
Supplement.

         C. Following the purchase of any Subsequent Mortgage Loan by the Trust,
the Mortgage Loans (including such Subsequent Mortgage Loans) will as of the
Subsequent Cut-off Date: (i) have a weighted average original term to stated
maturity of not more than 360 months; (ii) have a weighted average Mortgage Rate
of not less than 9.600% and not more than 10.000%; (iii) have a weighted average
loan-to-value ratio of not more than 78%; (iv) have no Mortgage Loan with a
principal balance in excess of $1,000,000, and (v) have no more than 10.00% of
Fixed Rate Mortgage Loan, in each case, as applicable, by aggregate principal
balance of the Mortgage Loans as of the Subsequent Cut-off Date. In addition,
the Adjustable Rate Mortgage Loans will as of the Subsequent Cut-off Date have a
weighted average Gross Margin not less than 5.250% by aggregate principal
balance of the Adjustable Rate Mortgage Loans as of the Subsequent Cut-off Date.
In the sole discretion of the Certificate Insurer, Subsequent Mortgage Loans
with characteristics varying from those set forth above may be purchased by the
Trust; provided, however that the addition of such Mortgage Loans will not
materially affect the aggregate characteristics of the Mortgage Pool.

<PAGE>

         D. Notwithstanding the foregoing, any Subsequent Mortgage Loan may be
rejected by either Rating Agency if the inclusion of such Subsequent Mortgage
Loan would adversely affect the ratings on any class of Offered Certificates.Exhibit 10.1

                              SETTLEMENT AGREEMENT

     This Settlement Agreement (the "Agreement") is made and entered into on the
17th of February, 2000, between COMPOSITECH LTD., a Delaware, U.S.A. corporation
with its principal place of business at 120 Ricefield Lane, Hauppauge, New York
11788-2008, U.S.A. ("Compositech"), CHENG XIN TECHNOLOGY DEVELOPMENT CORPORATION
(as successor in interest to Fidelity Venture Capital Corp.), a Taiwanese
corporation with its principal place of business at 6th Fl., Bld. 143, Sec. 2,
Min-Sheng East Road, Taipei, Taiwan, Republic of China ("CXTDC"), COMPOSITE
TECHNOLOGIES, INC., a Taiwanese company with its principal place of business at
6th Fl., Bld. 143, Sec. 2, Min-Sheng East Road, Taipei, Taiwan, Republic of
China ("Technologies"), and investors in Technologies (the "Investors").
(Compositech, CXTDC, Technologies and the Investors are referred to collectively
as the "Parties").

     WHEREAS, Compositech, CXTDC and the Investors entered into an Agreement to
Form a Joint Venture, dated February 9, 1998, for the establishment of a joint
venture at Hsin-Chiu Science Base, Taiwan (the "Joint Venture Agreement"), and
Compositech and the joint venture company incorporated pursuant to the Joint
Venture Agreement as Technologies entered into a related Patent Information and
Trademark Agreement, dated February 9, 1998 (the "Patent License Agreement"),
whereby Compositech granted certain patent and trademark licenses to
Technologies in exchange for certain royalty payments by Technologies; and

     WHEREAS, the Parties wish to terminate the Joint Venture Agreement and the
Patent License Agreement.

     NOW, THEREFORE, the Parties agrees as follows:

1. Termination of Agreements. Effective as of the date hereof, the Parties
hereby terminate the Joint Venture Agreement, the Patent License Agreement, and
any other related agreements, whether written or oral, between the Parties
except for this Agreement (collectively, the "Prior Agreements").

2. Exclusive Settlement Terms; No Claim of Liabilities. This Agreement states
exclusively, the terms and conditions of the settlement of all the rights and
obligations of the Parties under the Prior Agreements. None of the Parties shall
make any claims or charges against any other for any liability under or in
connection with the termination of any of the Prior Agreements except, if
necessary, with respect to the rights and obligation set forth herein. Each of
the Parties hereby mutually releases and forever discharges each other Party
from any action, suits, debts, liens, contracts, promises, liabilities, claims,
demands, damages, losses, costs or expenses known or unknown, contingent or
otherwise ("Claims") that such Party has now or may ever have based on, by
reason of, or arising out of the Prior Agreements or the transactions
contemplated thereby except for those Claims arising out of rights and
obligations set forth herein.

3. Satisfaction of Loans. Compositech hereby acknowledges the receipt of U.S.
$500,000 (NTD $16,000,000) as a loan (the "Loan") from Technologies which amount
was used to

<PAGE>

purchase 1,600,000 shares of the common stock of Technologies. Technologies and
Compositech hereby agree that all shares of common stock of Technologies held of
record by Compositech, including the 1,600,000 shares of common stock purchased
and the Technical Investment Shares (as such term is defined in the Patent
License Agreement) (the "Shares") shall be transferred as of the date hereof to
Technologies on the books and records of Technologies in full satisfaction of
all debts owed by Compositech to Technologies including, without limitation, the
Loan. Technologies hereby acknowledges that no certificates representing the
Shares were issued to Compositech and agrees that it will take all actions
necessary to effect the transfer of the Shares on its books and records.

4. Conversion of Initial Royalties to Compositech Shares. As of the date hereof,
that portion of Initial Royalties (as defined in Section 5.2.a of the Patent
License Agreement) in the amount of US $1.0 million paid by Technologies to
Compositech shall be converted into a number of shares of common stock, par
value $.01, of Compositech equal to 1,000,000 divided by US $1.7025 rounded to
the nearest share (the "Compositech Shares") and shall be held of record by
Technologies. Compositech will take all actions necessary to issue the
Compositech Shares and will cause a certificate representing the Compositech
Shares to be issued to Technologies as soon as practicable.

5. No Restriction on Business. As of the date hereof, no restrictions, other
than those imposed by applicable law and contractual obligations, if any, with
third parties, shall exist on the ability of either Compositech or Technologies
to manufacture or sell any products or operate their respective businesses in
Taiwan or elsewhere.

6. Return of Information by Parties. Compositech and Technologies shall cause
the return of "Licensor's Information" and "Licensee's Information," as such
concepts are defined in the Patent License Agreement, to Compositech and
Technologies, respectively. Technologies agrees that it will not hereafter
disclose, use or pass on in any way Licensor's Information at any time and will
continue in all respects to fully protect Licensor's Information in accordance
with Article IX of the Patent License Agreement.

7. Compositech Trademark. Technologies shall immediately cease and desist from
all use of the Trademark (as defined in the Patent License Agreement) in any
way. Technologies shall not at any time, adopt or use any mark or symbol which
is similar to or is likely to be confused with the Trademark. Technologies shall
change its company name so as not to include the word "Composite."

8. Indemnification. a) Technologies and CXTDC, jointly and severally, agree to
indemnify and hold harmless Compositech and its officers, directors and
employees from and against any and all costs, liability, damages, expenses
(including reasonable attorneys fees and disbursements) arising out of or
related to (i) actions or omissions of Technologies, its officers or directors
after the date hereof or (ii) claims of Investors relating to this Agreement or
the Prior Agreements; and (b) Compositech agrees to indemnify and hold harmless
Technologies, CXTDC, their officers, directors and employees and the Investors
from and against any and all costs, liability, damages, expenses (including
reasonable attorneys fees and disbursements) arising out of or related to

<PAGE>

actions or omissions of Compositech, its officers or directors after the date
hereof with respect to Technologies or the Prior Agreements.

9. Further Actions. Each of the Parties hereby covenants and agrees to execute
such documents and to take such further action as may be necessary to implement
this Agreement and to otherwise act in good faith and deal fairly hereunder.

10. Governing Law. This Agreement shall be deemed a contract made under the laws
of the State of New York, U.S.A. and for all purposes, including matters
pertaining to its form and validity shall be construed and enforced in
accordance with the laws of said State without regard to its conflicts of laws
principles.

11. Counterparts. This Agreement may be executed in several counterparts, with
each of such counterparts being deemed an original and all of which together
comprise the whole.

IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the
day and year first above written.

                                         COMPOSITECH LTD.
                                         By: /s/ Jonas Medney
                                         ---------------------------------------
                                         Name: Jonas Medney
                                         Title: Chairman of the Board

                                         CHENG XIN TECHNOLOGY DEVELOPMENT
                                         CORPORATION
                                         By: /s/ Chen Ming Lee
                                         ---------------------------------------
                                         Name: Cheng Ming Lee
                                         Title:  President

                                         COMPOSITE TECHNOLOGIES, INC.
                                         By: /s/ Chen Ming Lee
                                         ---------------------------------------
                                         Name: Cheng Ming Lee
                                         Title:  Chairman of the Board (Interim)

                                         INVESTORS:
                                         By: /s/ Chen Ming Lee
                                         ---------------------------------------
                                         Name: Cheng Ming Lee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}]]