Document:

Restricted Stock Award Agreement

 Exhibit 10.2 
  
 CELLSTAR CORPORATION 
 RESTRICTED STOCK AWARD AGREEMENT AND TANDEM GRANT OF 
 STOCK APPRECIATION RIGHTS 
  
 1. Award of Restricted Stock and Grant of Stock Appreciation Rights.
Pursuant to the CellStar Corporation 2003 Long-Term Incentive Plan (the “Plan”), CellStar Corporation, a Delaware corporation (the “Company”), hereby grants to 
  
 Robert A. Kaiser 
 (the “Participant”) 
  
 an award of Restricted Stock under the Plan (the “Restricted Stock Award”) for 142,025 shares of Common Stock of the Company (the
“Awarded Shares”) and, in tandem with such Restricted Stock Award, Stock Appreciation Rights relating to the Awarded Shares (the “Stock Appreciation Rights” or “SARs”, and such
SARs along with the Restricted Stock Award shall be referred to herein as the “Award”), all upon and subject to the terms and conditions set forth in this Award Agreement (the “Agreement”). The
Participant will pay no purchase price for the Restricted Stock or the SARs granted hereunder. 
  
 2. Date of Grant. The Date of Grant of the Award is May 2, 2005. 
  
 3. Subject to Plan. The Award and this Agreement are subject to the terms and conditions of the Plan, and the terms
of the Plan shall control to the extent not otherwise inconsistent with the provisions of this Agreement. Except as otherwise provided herein, the capitalized terms used herein that are defined in the Plan shall have the same meanings assigned to
them in the Plan. The Award is subject to any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing. 
  
 4. Vesting. 
  
 a. Restricted Stock. Except as specifically provided in this Agreement and subject to certain restrictions and conditions set forth
in the Plan, the Awarded Shares shall vest as follows: 
  
 i. 47,342 shares shall vest on the first anniversary of the Date of Grant, provided the Participant is employed by the Company or a Subsidiary on that date. 
  
 ii. An additional 47,342 shares shall vest on the second anniversary of the Date of Grant, provided the
Participant is employed by the Company or a Subsidiary on that date. 
  
 iii. An additional 47,341 shares shall vest on the third anniversary of the Date of Grant, provided the Participant is employed by the Company or a Subsidiary on that date. 
  
 Notwithstanding the foregoing, all of the unvested Awarded
Shares shall vest as of, and in the event of, the occurrence of any of the following events: (i) the Participant’s death; (ii) the Participant’s Termination of Service as a result of his or her Total and Permanent Disability;
(iii)

 
the Participant’s Termination of Service by the Company or a Subsidiary without Cause (as defined below); or (iv) a Change of Control. 

 
 b. Stock Appreciation Rights. Except as
specifically provided in this Agreement and subject to certain restrictions and conditions set forth in the Plan, the SARs shall vest and available for exercise as of, and in the event of, the occurrence of any of the following events, provided that
such events must occur on or before 5 p.m. on December 31, 2005: (i) the Participant’s death; (ii) the Participant’s Termination of Service as a result of his or her Total and Permanent Disability;
(iii) Participant’s Termination of Service by the Company or a Subsidiary without Cause (as defined below); or (iv) a Change of Control. 
  
 For purposes of this Section 4, “Cause” shall mean the occurrence of any of the events for which the
Participant’s employment may be terminated for cause as described in Section 1.5(b) in that certain amended and restated employment agreement (the “Employment Agreement”) by and among the Company, CellStar, Ltd., a Texas limited
partnership, and the Participant, effective as of May 1, 2004. 
  
 For purposes of this Section 4, a “Change of Control” shall be deemed to have occurred upon the occurrence of any of the change of control events described in Section 1.7(a) in the Employment
Agreement. The foregoing notwithstanding, in the event it is determined that the definition of Change of Control as described herein would result in a violation of Section 409A of the Code, and as a result this Award (or portion thereof) would
be subject to the taxes described in Section 409A(a)(1) of the Code, then, (i) in lieu of the definition of Change of Control specified herein and to the extent necessary to comply with the requirements of Section 409A of the Code,
the definition of Change of Control for purposes of this Award shall be the definition provided for under Section 409A of the Code and the regulations or other guidance issued thereunder. 
  

	5.	Term; Forfeiture. 

  
 a. Restricted Stock. If the Awarded Shares have not become 100% vested in accordance with Section 4.a., all unvested
Awarded Shares shall be forfeited at 5 p.m. on the date of the Participant’s Termination of Service. In addition, the Participant shall immediately forfeit vested Awarded Shares to the extent the Participant exercises or has exercised the SARs
for cash. Upon any forfeiture, all rights of the Participant with respect to the forfeited Awarded Shares shall cease and terminate, without any further obligation on the part of the Company. 
  
 b. Stock Appreciation Rights. If the SARs have not
become 100% vested in accordance with Section 4.b., the unvested SARs shall be forfeited on the earliest to occur of: (i) 5 p.m. on December 31, 2005, (ii) 5 p.m. on the date of the Participant’s Termination of
Service by the Company or a Subsidiary for Cause, or (iii) 5 p.m. on the date of the Participant’s voluntary Termination of Service other than for Total and Permanent Disability. In addition, any vested SARs that have not been exercised
shall be forfeited at 5 p.m. on December 31, 2005. Upon any forfeiture, all rights of the Participant with respect to the forfeited SARs shall cease and terminate, without any further obligation on the part of the Company. 
  

	6.	Exercise of SARs and Related Matters. 

  
 a. Method of Exercise. The Participant may exercise vested SARs at any time prior to the termination of the SARs in accordance with
Section 5.b. above by the delivery of written notice to the Committee setting forth the number of vested SARs which are to be exercised and the date of exercise thereof (the “Exercise Date”) which shall be a date
not less than three (3) business days after giving such notice, unless an earlier date and time shall have been mutually 

  

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agreed upon. On the Exercise Date, the Participant shall receive from the Company in exchange for the exercised SARs a cash payment in an amount equal to the
Fair Market Value as of the Exercise Date of a share of Common Stock, multiplied by the total number of SARs being surrendered pursuant to the SARs’ exercise. In no event shall such delivery of cash to the Participant occur later than
March 15, 2006. 
  
 b. No Fractional
Shares. SARs may be exercised only with respect to full shares, and no cash payment with respect to a fractional share of stock shall be paid. 
  
 c. Who May Exercise. Subject to the terms and conditions set forth in Sections 4.b. and 5.b. above, during the lifetime of
the Participant, SARs may only be exercised by the Participant or his guardian or legal representative. If the Participant dies prior to the dates specified in Section 5.b. above without having exercised all of his or her then-vested
SARs, the following persons may exercise the exercisable portion of the SARs on behalf of the Participant at any time prior to the earliest of the dates specified in Section 5.b. hereof: the personal representative of his or her estate
or any person who acquired the right to exercise the SARs by bequest or inheritance or by reason of the death of the Participant; provided that the SARs shall remain subject to the other terms of this Agreement, the Plan and all applicable laws,
rules, and regulations. 
  
 d. No Rights as
Shareholder. The Participant will have no rights as a shareholder of the Company with respect to any SARs. 
  
 e. Adjustment of Number of Shares and Related Matters. The number of shares of Common Stock covered by the SARs shall be subject to
adjustment in accordance with Articles 13—15 of the Plan and Section 19 below. 
  

	7.	Restricted Stock and Related Matters. 

  
 a. Voting. The Participant, as record holder of the Awarded Shares, has the exclusive right to vote, or consent with respect to,
such Awarded Shares until such time as the Awarded Shares are transferred in accordance with this Agreement or a proxy is granted pursuant to Section 7.d. below; provided, however, that this Section 7.a. shall
not create any voting right where the holders of such Awarded Shares otherwise have no such right. 
  
 b. Legend. The following legend shall be placed on all certificates representing Awarded Shares (in addition to any legend required
under applicable state securities laws): 
  
 On the face of the
certificate: 
  
 “TRANSFER OF THIS STOCK IS RESTRICTED IN
ACCORDANCE WITH CONDITIONS PRINTED ON THE REVERSE OF THIS CERTIFICATE.” 
  
 On the reverse: 
  
 “THE
SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO AND TRANSFERABLE ONLY IN ACCORDANCE WITH THAT CERTAIN CELLSTAR CORPORATION 2003 LONG-TERM INCENTIVE PLAN, AS AMENDED FROM TIME TO TIME, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE
OF THE COMPANY IN 

  

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CARROLTON, TEXAS. NO TRANSFER OR PLEDGE OF THE SHARES EVIDENCED HEREBY MAY BE MADE EXCEPT IN ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF SAID PLAN. BY
ACCEPTANCE OF THIS CERTIFICATE, ANY HOLDER, TRANSFEREE OR PLEDGEE HEREOF AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SAID PLAN.” 
  
 The following legend shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a transaction
registered under the applicable federal and state securities laws: 
  
 “SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED BY THE HOLDER FOR INVESTMENT AND NOT FOR RESALE, TRANSFER OR DISTRIBUTION, HAVE BEEN ISSUED PURSUANT TO EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF APPLICABLE
STATE AND FEDERAL SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED OTHER THAN PURSUANT TO EFFECTIVE REGISTRATION UNDER SUCH LAWS, OR IN TRANSACTIONS OTHERWISE IN COMPLIANCE WITH SUCH LAWS, AND UPON EVIDENCE SATISFACTORY TO THE
COMPANY OF COMPLIANCE WITH SUCH LAWS, AS TO WHICH THE COMPANY MAY RELY UPON AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY.” 
  
 c. Proxies. Participant may not grant a proxy to any person, other than a revocable proxy not to exceed thirty (30) days in
duration granted to another stockholder for the sole purpose of voting for directors of the Company. 
  
 8. Non-Assignability and Restrictions on Transfer. The Award granted under this Agreement, and any interest in or right associated
with such Award, are not assignable or transferable by the Participant except by will or by the laws of descent and distribution, and with respect to any Awarded Shares, until such Awarded Shares are vested in accordance with Section 4.a. and
not subject to forfeiture in accordance with Section 5.a. 
  
 9. Specific Performance. The parties acknowledge that remedies at law will be inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific
performance. The remedy of specific performance shall be cumulative of all of the rights and remedies at law or in equity of the parties under this Agreement. 
  

10. Investment Representation. Unless the Common Stock is issued to him or her in a transaction registered under applicable
federal and state securities laws, by his or her execution hereof, the Participant represents and warrants to the Company the following: 
  
 a. The Participant is aware of the Company’s business affairs and financial condition and has acquired sufficient information about
the Company to reach an informed and knowledgeable decision to acquire the Awarded Shares. 
  
 b. The Participant is acquiring these Awarded Shares for investment for the Participant’s own account only and not with a view to, or
for resale in connection with, any “distribution” thereof within the meaning of the Securities Act. 
  

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 c. The Participant acknowledges and understands that the Awarded Shares constitute
“restricted securities” under the Securities Act and must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. The Participant further acknowledges and
understands that the Company is under no obligation to register the Awarded Shares. The Participant understands that the certificate evidencing the Awarded Shares will be imprinted with a legend set forth in Section 7.b., which prohibits
the transfer of the Awarded Shares unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company. 
  
 d. The Participant is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in
substance, permit limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer
qualifies under Rule 701 at the time of issuance of the securities to the Participant, such issuance will be exempt from registration under the Securities Act. In the event the Company qualifies under Rule 701 and the Company later becomes subject
to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), ninety (90) days thereafter the securities exempt under Rule 701 may be resold, subject
to the satisfaction of certain of the conditions specified by Rule 144, including among other things: (i) the sale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market
maker (as said term is defined under the Exchange Act) and (ii) in the case of an affiliate, the availability of certain public information about the Company, and the amount of securities being sold during any three (3) month period not
exceeding the limitations specified therein, if applicable. 
  
 e. In the event that the Company does not qualify under Rule 701 at the time of issuance of the securities to the Participant, then the securities may be resold in certain limited circumstances subject to the
provisions of Rule 144, which requires among other things: (i) the availability of certain public information about the Company, (ii) the resale occurring not less than one year after the party has purchased, and made full payment for,
within the meaning of Rule 144, the securities to be sold and (iii) in the case of an affiliate, or of a non-affiliate who has held the securities less than two years, the sale being made through a broker in an unsolicited “broker’s
transaction” or in transactions directly with a market maker (as said term is defined under the Exchange Act) and the amount of securities being sold during any three month period not exceeding the specified limitations stated therein, if
applicable. 
  
 11. Representations, Etc. Each spouse
individually is bound by, and such spouse’s interest, if any, in any Awarded Shares is subject to, the terms of this Agreement. Nothing in this Agreement shall create a community property interest where none otherwise exists. 
  
 12. Simultaneous Death. If the Participant and his or her spouse both
suffer a common accident or casualty which results in their respective deaths within sixty (60) days of each other, it shall be conclusively presumed, for the purpose of this Agreement, that the Participant died first and the spouse died
thereafter. 
  
 13. Participant’s Acknowledgments. The
Participant acknowledges receipt of a copy of the Plan, which is annexed hereto, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all the terms and provisions thereof. The
Participant 

  

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hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Committee or the Board, as appropriate, upon any questions
arising under the Plan or this Agreement. 
  
 14. Law
Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Texas (excluding any conflict of laws rule or principle of Texas law that might refer the governance, construction, or
interpretation of this agreement to the laws of another state). 
  
 15. Legal Construction. In the event that any one or more of the terms, provisions, or agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any
respect for any reason, the invalid, illegal, or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement and this Agreement shall be construed in all respects as if the
invalid, illegal, or unenforceable term, provision, or agreement had never been contained herein. 
  
 16. Covenants and Agreements as Independent Agreements. Each of the covenants and agreements that is set forth in this Agreement shall be construed
as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense
to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement. 
  
 17. Entire Agreement. This Agreement together with the Plan supersede any and all other prior understandings and agreements, either oral or in
writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to
the subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any
party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or effect. 
  
 18. Parties Bound. The terms, provisions, and agreements that are
contained in this Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the limitation on
assignment expressly set forth herein. With respect to the Restricted Stock Award, no person or entity shall be permitted to acquire any Awarded Shares without first executing and delivering an agreement in the form satisfactory to the Company
making such person or entity subject to the restrictions on transfer contained in Section 8 hereof. 
  
 19. Modification. No change or modification of this Agreement shall be valid or binding upon the parties unless the change or modification is in
writing and signed by the parties; provided, however, that the Company may change or modify the terms of this Agreement without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change or
modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder. Notwithstanding the preceding sentence, the Company may amend the
Plan or revoke the SARs to the extent permitted by the Plan. 
  
 20. Headings. The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement.

  

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 21. Gender and Number. Words of any gender used in this Agreement shall be held and construed to
include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. 
  
 22. Notice. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered only when actually received by the Company
or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified by written notice delivered in accordance herewith: 
  

	 	a.	Notice to the Company shall be addressed and delivered as follows: 

  

	 	    	CellStar Corporation 

	 	    	1730 Briercroft Court 

	 	    	Carrollton, Texas 75006 

	 	    	Attn: Secretary 

	 	    	Facsimile: (972) 466-5030 

  

	 	b.	Notice to the Participant shall be addressed and delivered as set forth on the signature page. 

  
 23. Tax Consequences. The Participant has reviewed with the Participant’s own tax advisors the federal,
state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.
Upon the lapse of restrictions on Awarded Shares or the exercise of SARs, the Company shall withhold the minimum amount sufficient to satisfy federal, state and local taxes (including the Participant’s employment tax obligations) that are
required to be withheld with respect to such transaction. Such taxes required to be withheld shall be satisfied either: (i) in the case of SARs, through retention by the Company of cash equal to the amount of the additional withholding
requested; or (ii) in the case of Awarded Shares, if applicable, through retention by the Company of a number of shares of Common Stock having a Fair Market Value equal to the amount necessary to satisfy such required withholding, provided that
the Participant shall take any and all actions deemed necessary by the Committee to enable such retention. If such withholding would result in a fractional share of Common Stock being payable to the Participant, such fractional share shall be
withheld as additional withholding, or at the option of the Company, paid in cash to the Participant. The foregoing notwithstanding, the Participant understands that the Participant (and not the Company) shall be responsible for the
Participant’s own tax liability that may arise as a result of the transactions contemplated by this Agreement. If subsequent to the Company’s withholding, as described above, the Company determines that additional taxes must be withheld to
satisfy the above withholding requirements, to the extent the Company determines that such additional taxes must be withheld, the Company or, if applicable, any Subsidiary (for purposes of this Section 23, the term
“Company” shall be deemed to include any applicable Subsidiary), shall have the right to require the Participant to pay the Company the amount of any such additional taxes that the Company is required to withhold in connection with
the Participant’s income arising with respect to this Award. Such payments shall be required to be made when requested by the Company and may be made in cash or, to the extent permitted by the Committee, through the delivery of shares of Common
Stock owned by the Participant, which shares have an aggregate Fair Market Value equal to the required additional withholding amount, or any combination thereof. 
  

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 With respect to the Restricted Stock Award, the Participant understands that Section 83 of the Code
taxes as ordinary income the difference between the amount paid for the shares and the fair market value of the shares as of the date any restrictions on the shares lapse. In the event the Company has registered under the Exchange Act,
“restriction” with respect to officers, directors and ten percent (10%) stockholders also means the period after the purchase of the shares during which such officers, directors and ten percent (10%) stockholders could be subject
to suit under Section 16(b) of the Exchange Act. The Participant understands that the Participant may elect to be taxed at the time the Awarded Shares are granted rather than when the restrictions expire pursuant to Section 4 by
filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days from the date of purchase. 
  
 THE PARTICIPANT ACKNOWLEDGES THAT IT IS THE PARTICIPANT’S SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE TIMELY THE ELECTION UNDER
SECTION 83(b) OF THE CODE, EVEN IF THE PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE PARTICIPANT’S BEHALF. 
  
 24. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE, NONEMPLOYEE DIRECTOR OR ADVISOR FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH PARTICIPANT’S RIGHT OR THE COMPANY’S RIGHT TO
TERMINATE PARTICIPANT AS AN EMPLOYEE, NONEMPLOYEE DIRECTOR OR ADVISOR AT ANY TIME, WITH OR WITHOUT CAUSE. 
  

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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer,
and the Participant, to evidence his consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 2 hereof. 
  

			
	CELLSTAR CORPORATION
		
	By:	 	 /s/ Elaine Flud Rodriguez

	 Its:
	 	 Senior Vice President

  
  

	
	 Attest:

	
	 /s/ Elaine Flud Rodrguez

	 Elaine Flud Rodriguez, Secretary

  
  
  

			
	PARTICIPANT
		
	By:	 	 /s/ Robert A. Kaiser

	
	 Participant’s Address for Notices:

	
	 5016 Silver Lake
 Plano, Texas 75093

  

 9EX-10.1

EXHBIT 10.1

Execution Copy

First Amendment to the Option Agreement

and the Contingent Payment Agreement

This First Amendment to the Option Agreement and the Contingent Payment Agreement (the
“Amendment”) is made and entered into as of October 4, 2005, by and among Credit Suisse
First Boston (USA), Inc., a Delaware corporation (the “Optionee”), SPS Holding Corp., a
Delaware corporation (the “Company”), Select Portfolio Servicing, Inc., a Utah corporation
(the “Servicer”), The PMI Group, Inc., a Delaware corporation (“PMI”), FSA Portfolio
Management Inc., a New York corporation (“FSA”), and Greenrange Partners LLC, a Connecticut
limited liability company (“Greenrange”) (each of Greenrange, PMI and FSA, individually an
“Optionor” and collectively the “Optionors”).

WHEREAS, the Optionee, the Company and the Optionors have entered into the Option Agreement,
dated as of August 12, 2005 (the “Option Agreement”), pursuant to which the Optionors have
granted the Optionee the option to acquire all of the outstanding shares of capital stock of the
Company;

WHEREAS, the Optionee, the Servicer and the Optionors have entered into the Contingent Payment
Agreement, dated as of August 12, 2005 (the “Contingent Payment Agreement”);

WHEREAS, the Optionee has exercised the Option and the parties hereto intend to consummate the
Closing on the date hereof immediately after the execution and delivery of this Amendment;

WHEREAS, the parties hereto desire to set forth their mutual understanding of the manner in
which the Specified Regulatory Matters (as defined below) will be indemnified under the Option
Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1. Certain Definitions. Capitalized terms used but not defined in this Amendment
shall have the meanings ascribed to such terms in the Option Agreement.

2. Amendments of Section 1.1 of the Option Agreement.

(a) Section 1.1 of the Option Agreement is hereby amended to insert the following definitions:

“Maximum Indemnification Amount” shall be an amount equal the sum of (i)
$25,000,000 plus (ii) the lesser of (a) the aggregate amount paid by the Optionors pursuant
to Section 11.2(e) based upon the Specified Regulatory Matters and (b) $9,000,000. The
parties hereto agree that under no circumstances shall the Maximum Indemnification Amount
exceed $34,000,000.

“Specified Regulatory Matters” shall mean the matters set forth in Schedule
1.1(d) hereto.

(b) The Option Agreement is hereby amended to insert a new schedule entitled “Schedule of
Specified Regulatory Matters” as “Schedule 1.1(d)” thereto. Such new schedule is attached hereto
as Schedule 1.1(d).

(c) Section 1.1 of the Option Agreement is hereby amended to insert the following immediately
after the definition of the term “Regulatory Action”:

“The parties hereto agree that the Specified Regulatory Matters shall be deemed to
constitute a Regulatory Action for purposes of the Option Agreement and the Contingent
Payment Agreement.”

(d) Section 1.1 of the Option Agreement is hereby amended to insert the following immediately
after the definition of the term “Regulatory Payment”:

“The parties hereto agree that all Losses (which shall include, for this purpose, any
reverse and reimbursement payments made by the Servicer of premiums, fees or other charges
regardless of the beneficiary of such premiums, fees or other charges) that are paid by the
Servicer or any of its Subsidiaries or Affiliates based upon or arising out of the Specified
Regulatory Matters shall be deemed to constitute Regulatory Payments for purposes of the
Option Agreement and the Contingent Payment Agreement; provided, however,
that (i) to the extent the events giving rise to such Losses occur (A) before the Closing
Date or (B) both before the Closing Date and during the 180-day period immediately after the
Closing Date, 100% of such Losses shall be deemed to constitute Regulatory Payments for
purposes of the Option Agreement and the Contingent Payment Agreement and (ii) to the extent
the events giving rise to such Losses occur both before the Closing Date and after the
180-day period immediately after the Closing Date, 50% of such Losses shall be deemed to
constitute Regulatory Payments for purposes of the Option Agreement and the Contingent
Payment Agreement (it being agreed that the remaining 50% of such Losses shall be borne by
the Servicer). In the event that the Servicer or any of its Subsidiaries or Affililiates
offers, agrees or is required to reverse or reimburse any premiums, fees or other charges
for optional products in connection with the Specified Regulatory Matters, then the parties
hereto agree that all of such reverse or reimburse payments shall be deemed to constitute
Regulatory Payments for purposes of the Option Agreement and the Contingent Payment
Agreement; provided, however, that Servicer shall be permitted to respond to
an individual customer-initiated complaint or inquiry with a Customer Accommodation or
Customer Reversal to the extent otherwise permitted by the Contingent Payment Agreement,
provided that such complaint or inquiry does not arise from the Servicer or one of
its Subsidiaries or Affiliates contacting such customer. The parties hereto further agree
that none of the Monthly Contingent Payments nor the Final Payment Amount shall be reduced,
whether as a reduction to Professional Services Income (as such term is defined in the
Contingent Payment Agreement) or otherwise, by amounts paid or payable by the Optionors
pursuant to Section 11.2(e) of this Agreement or amounts that are required to be borne by
the Servicer pursuant to this definition or Section 11.2(e) of this Agreement.”

3. Amendment of Section 11.2(e) of the Option Agreement. Section 11.2(e) of the
Option Agreement is hereby amended to insert the following immediately after clause (iv) of the
first sentence:

“; provided, however, that the portion of any Regulatory Payments not
subject to indemnification by the Optionors pursuant to this Section 11.2(e) which shall be
borne by the Servicer with respect to the Specified Regulatory Matters shall not exceed
$2,550,000; provided, further, that the portion of any Regulatory Payments
not subject to indemnification by the Optionors pursuant to this Section 11.2(e) which shall
be borne by the Servicer in any event shall not exceed $3,050,000.”

4. Amendment of Section 11.2(g) of the Option Agreement. Section 11.2(g) of the
Option Agreement is hereby amended such that the number “$25,000,000” in such section is deleted
and replaced with the term “Maximum Indemnification Amount”.

5. Amendment of Article V of the Option Agreement. The first sentence of Article V of
the Option Agreement is hereby amended to insert the following immediately after the word “hereof”
and immediately before “, the Company”:

“and except for the Specified Regulatory Matters”

6. Disclosure of the Specified Regulatory Matters. The Optionee hereby agrees that
neither the Company nor any Optionor has been or is in breach of the Option Agreement for not
delivering a Disclosure Schedule Supplement in respect of the Specified Regulatory Matters.

7. Amendment of Sections 3.3(b) and 3.3(c) of the Option Agreement. The parties
hereto agree that the Company shall accrue an incentive bonus payment of $3,300,000 and an income
tax benefit of $1,245,750 during the third quarter of fiscal year 2005 and shall reflect such
accruals on the Estimated Closing Balance Sheet, the Actual Closing Balance Sheet and the Closing
Balance Sheet. The parties hereto agree that, notwithstanding anything to the contrary contained
in the Option Agreement, neither the Company nor the Optionors make any representations or
warranties concerning whether such accruals are in accordance with GAAP or otherwise recorded in
the same manner as the Company’s consolidated balance sheet as of December 31, 2004. Sections
3.3(b) and 3.3(c) of the Option Agreement are hereby amended such that the number “$15,500,000” is
deleted and replaced with the number “$17,554,250” in each such section.

8. Amendment of Article VII of the Option Agreement. The parties hereto agree to
amend Article VII of the Option Agreement to insert the following as a new Section 7.11 thereof:

“Section 7.11 Mutual Cooperation. (a) Following the Closing Date, the parties
agree to mutually cooperate with respect to the Specified Regulatory Matters and other
actions, suits, litigations, arbitrations, proceedings, investigations or inquiries
(“Other Actions”) involving a party hereto. Such cooperation shall include, to the
extent reasonably requested by a party (a “Requesting Party”), the provision by the
other parties of reasonable access during normal business hours to the books and records of
such other parties (each a “Cooperating Party”); provided, however,
that a Cooperating Party may restrict the foregoing access to the extent that (i) in the
reasonable judgment of the Cooperating Party, any law, treaty, rule or regulation of any
Governmental Entity applicable to such Cooperating Party requires such Cooperating party or
its Subsidiaries to restrict or prohibit access to any such properties or information, (ii)
in the reasonable judgment of the Cooperating Party, the information is subject to
confidentiality obligations to a third party, (iii) such disclosure would result in
disclosure of any trade secrets of third parties or (iv) disclosure of any such information
or document could reasonably result in the loss of attorney client privilege. In addition,
each party shall use commercially reasonable efforts to make its officers and employees
available on a mutually convenient basis to provide an explanation of any information
provided hereunder.

(b) Any information obtained after the Closing Date pursuant to this Section
7.11 (“Confidential Information”) shall be used solely for the purpose of
evaluating, defending and resolving the Specified Regulatory Matters and Other Actions and
shall be kept confidential (and shall not be disclosed) by the Requesting Party and all
persons obtaining such information on such Requesting Party’s behalf or who obtain such
information from such Requesting Party. Confidential Information shall not include
information that (A) is or becomes generally available to the public other than as a result
of disclosure by the Requesting Party or its Representatives, (B) is or becomes available to
the Requesting Party or its Representatives from sources that are not known by the
Requesting Party to have any obligation not to disclose such information or (C) is
independently generated by the Requesting Party without use of or reference to any
proprietary or confidential information of the Disclosing Party. Notwithstanding the
foregoing, Confidential Information may be disclosed by a Requesting Party (x) to its
directors, officers, employees, representatives (including, without limitation, financial
advisors, attorneys and accountants) or agents (collectively “Representatives”) who
need to know such information if the Requesting Party informs such Representatives of the
confidential nature of such information and directs them to treat such information
confidentially and to use such information for no purpose other than as specifically
permitted by this Agreement, (y) if the Requesting Party is legally required to make such
disclosure as a result of a court order, subpoena or similar legal duress, provided
that prior to such disclosure, the Requesting Party gives to the Cooperating Party prompt
written notice of its receipt of such order or subpoena or similar document so that the
Cooperating Party has a reasonable opportunity prior to disclosure to obtain a protective
order (if disclosure of Confidential Information is so required, the Requesting Party shall
disclose only that portion of such information that is so required and shall assist the
Cooperating Party in obtaining protective orders or undertakings that confidential treatment
will be accorded to any such information furnished) and (z) if it determines that it is
required to disclose such Confidential Information pursuant to applicable laws or the rules
or regulations of a Governmental Entity (including the Securities and Exchange Commission)
or self regulatory organization (including the New York Stock Exchange), provided that in
such event, it shall only disclose that portion of the Confidential Information which it is
advised by counsel is required to be disclosed (after consulting with the Cooperating Party
as to such disclosure and the nature and wording of such disclosure) and shall exercise all
commercially reasonable efforts to obtain confidential treatment, to the extent available,
of documents that are to be filed with a Governmental Entity that constitute Confidential
Information. In the event of termination of this Agreement, each Requesting Party shall
promptly return to the Cooperating Party all Confidential Information in its possession
(including all written materials prepared or supplied by or on its behalf containing or
reflecting any Confidential Information) and will not retain any copies, extracts or other
reproductions in whole or in part of any Confidential Information. Each party shall be
responsible for the breach of the terms of this Section 7.11 by its Representatives.

(c) Each Requesting Party agrees to reimburse the Cooperating Party for its reasonable
out-of-pocket costs, if any, of gathering and copying any information pursuant to this
Section 7.11 or for providing explanations of such information. Any request for
reimbursement pursuant to this Section 7.11 shall be made in writing and shall provide
reasonable detail of such out-of-pocket costs together with appropriate documentation of
such out-of-pocket costs.

(d) Notwithstanding anything to the contrary contained in this Section 7.11, the
obligations of the parties contained in Sections 7.11(b) and (c) shall not apply to any
information provided to a party hereto pursuant to any other provision of this Agreement or
the Contingent Payment Agreement and nothing in this Section 7.11 shall limit, modify or
otherwise affect any other provision of this Agreement or the Contingent Payment Agreement.”

9. Amendments to the Contingent Payment Agreement.

(a) Section 1 of the Contingent Payment Agreement is hereby amended to insert the following
immediately at the end of the definition of the term “Mortgage Loan Servicing Error”:

“or a violation by SPS of applicable law with respect to any optional product relating
to such Portfolio Mortgage Loans.”

(b) Section 7(b) of the Contingent Payment Agreement is hereby amended to insert the following
immediately after clause (iii):

“and (iv) SPS may modify its practices of collecting premiums, fees and charges for
optional products relating to the Mortgage Loans so long as it collects such premiums, fees
and charges consistent with its practices for collecting premiums, fees and charges for
optional products relating to the other Portfolio Mortgage Loans (including, for the
avoidance of doubt, transitions of collection of such premiums, fees and charges for the
Mortgage Loans to third parties if SPS does not collect premiums, fees and charges for
optional products on the other Portfolio Mortgage Loans).”

10. No Other Amendments; Option Agreement and Contingent Payment Agreement Remain in
Effect. Except as expressly amended by Sections 2, 3, 4, 5, 7 and 8 of this Amendment, the
Option Agreement shall remain in full force and effect in the form in which it existed immediately
prior to the execution and delivery of this Amendment. Except as expressly amended by Section 9 of
this Amendment, the Contingent Payment Agreement shall remain in full force and effect in the form
in which it existed immediately prior to the execution and delivery of this Amendment.

11. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York without giving effect to the principles of conflicts of law
thereof.

12. Entire Agreement; No Third Party Beneficiaries. The Option Agreement, as amended
by this Amendment, the Contingent Payment Agreement, as amended by this Amendment, and the Purchase
Agreement (a) constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, among the parties with respect to the subject matter hereof
and thereof and (b) are not intended to confer any rights or remedies upon any Person other than
the parties hereto and thereto.

13. Amendments. No amendments, changes or modifications to this Amendment shall be
valid unless the same are in writing and signed by the parties hereto.

14. Counterparts. This Amendment may be executed in multiple counterparts. Each
counterpart shall be an original, but altogether shall constitute one and the same instrument.

[SIGNATURES ON FOLLOWING PAGE]

1

IN WITNESS WHEREOF, Optionee, the Servicer, the Company
and each of the Optionors have executed this Amendment or caused this Amendment to be executed by
their respective officers thereunto duly authorized as of the date first written above.

CREDIT SUISSE FIRST BOSTON (USA), INC.

By /s/ Neil Radey

Name:

Title:

SPS HOLDING CORP.

By /s/ M. Hollingsworth

Name:

Title:

THE PMI GROUP, INC.

By /s/ Donald P. Lofe, Jr.

Name: Donald P. Lofe, Jr.

Title: EVP & CFO

By /s/ Glen S. Corso

Name: Glen S. Corso

Title: Group SVP

FSA PORTFOLIO MANAGEMENT INC.

By /s/ Bruce E. Stern

Name: Bruce E. Stern

Title: General Counsel and Managing Director

GREENRANGE PARTNERS LLC

By /s/ J.H. Ozanne

Name:

Title:

SELECT PORTFOLIO SERVICING, INC.

By /s/ M. Hollingsworth

Name:

Title:

Signature Page to First Amendment to Option Agreement

and Contingent Payment Agreement

2

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