Document:

exv10w3

 

Exhibit 10.3

Execution Copy

FOURTH
AMENDED AND RESTATED
PRICING SIDE LETTER

October 3, 2006

     Reference is hereby made to, and this is the “Pricing Side Letter” referred to in, and
incorporated by reference into, the Amended and Restated Sale and Servicing Agreement, dated as of
August 5, 2005 (as amended, restated, supplemented or otherwise modified from time to time, the
“Sale and Servicing Agreement”), by and among Option One Owner Trust 2003-4, as Issuer, Option One
Loan Warehouse Corporation, as Depositor, Option One Mortgage Corporation, as Loan Originator and
Servicer, and Wells Fargo Bank, N.A., as Indenture Trustee. Any capitalized term used but not
defined herein shall have the meaning assigned to such term in the Sale and Servicing Agreement.

     As of the date hereof, this Fourth Amended and Restated Pricing Side Letter (this “Pricing
Side Letter”) hereby amends, restates and supersedes, in its entirety, the Third Amended and
Restated Pricing Side Letter dated as of December 27, 2005 by and among the parties hereto.

     Section 1. Change of Conduit Purchaser. Effective as of the date first above written,
it is expressly understood and agreed by all parties hereto that all right, title, and interest
herein and under the Basic Documents, formerly belonging to Preferred Receivables Funding Company
LLC (formerly Preferred Receivables Funding Corporation), a Delaware limited liability company
(“PREFCO”), as Conduit Purchaser, now succeed to Park Avenue Receivables Company LLC, a Delaware
limited liability company (“PARCO”), as Conduit Purchaser.

     Section 2. Termination of Conduit Purchaser’s Participation. Effective as of the date
first above written, Jupiter Securitization Company LLC (formerly Jupiter Securitization
Corporation), a Delaware limited liability company (“Jupiter”), ceases to be a party to the Basic
Documents as a Conduit Purchaser. Henceforth, PARCO and Falcon Asset Securitization Company LLC
(formerly Falcon Asset Securitization Corporation), a Delaware limited liability company
(“Falcon”), remain, collectively, as Conduit Purchasers (and each, individually, a Conduit
Purchaser). Notwithstanding the foregoing, Jupiter shall continue to enjoy the benefits of Article
VII of the Note Purchase Agreement in respect of the period that Jupiter shall have been a Conduit
Purchaser under the Basic Documents.

     Section 3. Amendment to Definitions. Effective as of the date first above written and
subject to the execution of this Pricing Side Letter by the parties hereto, the following terms
referenced in Section 1.01 of the Sale and Servicing Agreement or Section 1.01 of the Note
Purchase Agreement shall have the meanings set forth below:

     Adjusted LIBO Rate: For any Accrual Period, an interest rate per annum equal to
the rate per annum obtained by dividing (i) the LIBO Rate in effect for such Accrual
Period by (ii) a percentage equal to 100% minus the Eurodollar Reserve Percentage for
such Accrual Period.

     Alternate Base Rate: A fluctuating interest rate per annum as shall be in effect
from time to time, which rate per annum shall at all times be equal to the highest of:

 

 

     (a) the rate of interest announced publicly by JPMorgan in Chicago, Illinois, from time
to time as JPMorgan’s prime rate;

     (b) 1/2 of one percent above the latest three-week moving average of secondary market
morning offering rates in the United States for three-month certificates of deposit of major
United States money market banks, such three-week moving average being determined weekly on
each Monday (or, if any such day is not a Business Day on the next succeeding Business Day)
for the three-week period ending on the previous Friday by JPMorgan on the basis of such
rates reported by certificate of deposit dealers to and published by the Federal Reserve Bank
of New York or, if such publication shall be suspended or terminated, on the basis
of quotations for such rates received by JPMorgan from three New York certificate
of deposit dealers of recognized standing selected by JPMorgan, in either case
adjusted to the nearest 1/4 of one percent or, if there is no nearest 1/4 of one percent, to
the next higher 1/4 of one percent; or

     (c) 1/2 of one percent per annum above the Federal Funds Rate.

     Assignee Rate: For any Accrual Period, an interest rate per annum equal to the Adjusted LIBO
Rate plus 3.0%; provided, however, that (i) in the case of any Accrual Period of less than one
month, the “Assignee Rate” for such Accrual Period shall be calculated as the Adjusted LIBO Rate
as if such Accrual Period has a duration of one month; and (ii) if it shall become unlawful for
JPMorgan to obtain funds in the London interbank market in order to make, fund or maintain the
Note Principal Balance or deposits in dollars (in the applicable amounts) are not being offered by
JPMorgan in the London interbank market, then the “Assignee Rate” for any Accrual Period shall be
calculated using an interest rate per annum equal to the Alternate Base Rate.

     Collateral Percentage: With respect to each Loan and any Business Day, a percentage
determined as follows:

          (a) with respect to all Loans other than Scratch & Dent Loans, 98% or, upon the
occurrence of a Performance Trigger, 95%; and

          (b) with respect to all Scratch & Dent Loans, 90%.

     Collateral Value: 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)(A) 100% of the Principal Balance of each Loan that is not a Scratch &
Dent Loan and (B) 75% of the Principal Balance of each Scratch & Dent Loan, 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 each Loan (1) that the Loan Originator is required to repurchase pursuant to
Section 2.05 or Section 3.06 of the Sale and Servicing Agreement or (2) which is a Loan of the
type specified in subparagraphs (i)-(xiv)

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hereof and which is in excess of the limits permitted under subparagraphs (i)-(xiv) hereof, or
(3) which remains pledged to the Indenture Trustee later than 120 days after its related
Transfer Date, or (4) which has been released from the possession of the Custodian to the
Servicer or the Loan Originator for a period in excess of 14 days, or (5) that is a Loan which
is 90 or more days Delinquent or a Foreclosed Loan, or (6) that is a Loan which has a
Loan-to-Value Ratio greater than 100%, or (7) that is not a Wet Funded Loan and for which the
Custodian is not in possession of a complete Custodial Loan File, or (8) that is a Wet Funded
Loan for which the related Custodial Loan File has not been delivered to the Custodian on or
before the later of the 15th Business Day and the 20th calendar day following the related
Transfer Date of such Wet Funded Loan, (9) that breaches any representation or warranty set
forth in Exhibit E with respect to such Loan, (10) which is not denominated and payable only in
United States dollars in the United States, (11) under which the Borrower is not a resident of
the United States or is a government or a governmental subdivision or agency, (12) which by its
terms is not due and payable on or within 360 months of the original funding date thereof or
which has had its payment terms extended, (13) which has had any of its terms, conditions or
provisions modified or waived other than in compliance with Loan Originator’s Underwriting
Guidelines, or (14) which would be deemed part of a “predatory lending” bucket as defined
within the state of the United States in which the related Mortgaged Property is located;
provided, further, that (A):

          (i) the aggregate Collateral Value of Loans which are Second Lien Loans may not exceed 10% of
the aggregate Principal Balance of all Loans that are not Scratch & Dent Loans;

          (ii) the aggregate Collateral Value of Loans which are 60 to 89 days Delinquent as of the
related Determination Date may not exceed 2% of the aggregate Principal Balance of all Loans that
are not Scratch & Dent Loans;

          (iii) the aggregate Collateral Value of Loans with respect to which the related Borrower’s
Credit Score is below 525 may not exceed 15% of the aggregate Principal Balance of all Loans;

          (iv) the aggregate Collateral Value of Loans which have a Loan-to-Value Ratio (if a First
Lien Loan) or CLTV (if a Second Lien Loan) greater than 95% must be less than 5% of the aggregate
Principal Balance of all Loans;

          (v) the aggregate Collateral Value of Loans which have a Loan-to-Value Ratio (if a First Lien
Loan) or CLTV (if a Second Lien Loan) greater than 90% must be less than 10% of the aggregate
Principal Balance of all Loans;

          (vi) the aggregate Collateral Value of Loans which have a Loan-to-Value Ratio (if a First
Lien Loan) or CLTV (if a Second Lien Loan) greater than 85% must be less than 30% of the aggregate
Principal Balance of all Loans;

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          (vii) the aggregate Collateral Value of Loans which have a Loan-to-Value Ratio (if a First
Lien Loan) or CLTV (if a Second Lien Loan) greater than 80% must be less than 35% of the aggregate
Principal Balance of all Loans;

          (viii) the aggregate Collateral Value of Loans that are Scratch & Dent Loans may not exceed
$50,000,000; provided that the foregoing limit shall be reduced by the aggregate principal balance
of Scratch & Dent Loans subject to any other secured loan, repurchase or credit facility entered
into by the Loan Originator and the Note Agent or any Affiliate thereof;

          (ix) the aggregate Collateral Value of “prime” or “A-quality” Loans originated by H&R Block
Mortgage Corp. may not exceed $50,000,000; provided that the foregoing limit shall be reduced by
the aggregate principal balance of “prime” or “A-quality” Loans subject to any other secured loan,
repurchase or credit facility entered into by the Loan Originator and the Note Agent or any
Affiliate thereof;

          (x) the aggregate Collateral Value of Loans that are Wet Funded Loans may not exceed the
greater of (A) $100,000,000.00 and (B) 35% of the aggregate Principal Balance of all Loans;
provided, however, that the foregoing amount in clause (B) shall not exceed $500,000,000.00;
provided, further, that each of the foregoing limits shall be reduced by the aggregate principal
balance of Wet Funded Loans subject to any other note purchase, secured loan, repurchase or credit
facility entered into by the Loan Originator and the Note Agent or any Affiliate thereof;

          (xi) the aggregate Collateral Value of Loans originated by the Loan Originator more than 90
days prior to such Loans’ related Transfer Date may not exceed the lesser of $50,000,000.00 or 15%
of the aggregate Principal Balance of all Loans, or such greater amount as the Market Value Agent
may determine from time to time, in its sole discretion; provided, further, that each of the
foregoing limits shall be reduced by the aggregate principal balance of Loans originated by the
Loan Originator more than 90 days prior to such Loans’ related Transfer Date and subject to any
other secured loan, repurchase or credit facility entered into by the Loan Originator and the Note
Agent or any Affiliate thereof; and

          (xii) the aggregate Collateral Value of Loans with Lost Note Affidavits may not exceed the
lesser of $5,000,000.00 or 5% of the aggregate Principal Balance of all Loans; provided, further,
that each of the foregoing limits shall be reduced by the aggregate principal balance of Loans with
Lost Note Affidavits subject to any other secured loan, repurchase or credit facility entered into
by the Loan Originator and the Note Agent or any Affiliate thereof;

          (xiii) the aggregate Collateral Value of Loans that are Interest-Only Loans (as defined in
Exhibit E to the Sale and Servicing Agreement) may not exceed 30% of the aggregate Principal
Balance of all Loans; provided, however, that the foregoing limit shall be reduced by the
aggregate principal balance of Interest-Only Loans subject to any other note purchase, secured
loan, repurchase or credit facility entered into by the Loan Originator and the Note Agent or any
Affiliate thereof; and

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          (xiv) 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.

     Commitment Termination Date: October 2, 2007, as such date may be extended in accordance
with Section 2.05 of the Note Purchase Agreement.

     CP Rate: For each Conduit Purchaser for any Accrual Period, the per annum rate equivalent
to the weighted average of the per annum rates paid or payable by such Conduit Purchaser from
time to time as interest on or otherwise (by means of interest rate hedges or otherwise) in
respect of the Commercial Paper Notes issued by such Conduit Purchaser that are allocated, in
whole or in part, by the Note Agent (on behalf of such Conduit Purchaser) to fund or maintain
its interest in the Note during such Accrual Period, as determined by the Note Agent (on behalf
of such Conduit Purchaser) and reported to the Servicer and the Indenture Trustee, which rates
shall reflect and give effect to the commissions of placement agents and dealers in respect of
such promissory notes, to the extent such commissions are allocated, in whole or in part, to
such promissory notes by the Note Agent (on behalf of such Conduit Purchaser); provided,
however, that if any component of such rate is a discount rate, in calculating the “CP Rate”
for such Accrual Period, the Note Agent shall for such component use the rate resulting from
converting such discount rate to an interest bearing equivalent rate per annum.

     Eurodollar Reserve Percentage: For any Accrual Period, the reserve percentage applicable
to JPMorgan during such Accrual Period under regulations issued from time to time by the Board
of Governors of the Federal Reserve System (or any successor) (or if more than one such
percentage shall be so applicable, the daily average of such percentages for those days in
such Accrual Period during which any such percentage shall be so applicable) under regulations
issued from time to time by the Board of Governors of the Federal Reserve System (or, any
successor) for determining the maximum reserve requirement (including, without limitation, any
emergency, supplemental or other marginal reserve requirement) for JPMorgan in respect of
liabilities or assets consisting of or including Eurocurrency Liabilities having a term equal
to such Accrual Period.

     Federal Funds Rate: For any day, a fluctuating interest rate per annum equal to the
weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if
such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a Business Day, the
average of the quotations for such day for such transactions received by JPMorgan from three
Federal funds brokers of recognized standing selected by it.

     LIBO Rate: With respect to any Accrual Period, the rate per annum equal to the applicable
British Bankers’ Association Interest Settlement Rate for deposits in

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U.S. dollars appearing on Reuters Screen FRBD as of 11:00 a.m. (London time) two Business Days
prior to the first day of the relevant Accrual Period, and having a maturity equal to such Accrual
Period, provided that, (1) if Reuters Screen FRBD is not available to the Note Agent for any
reason, the applicable LIBO Rate for the relevant Accrual Period shall instead be the applicable
British Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars as reported by
any other generally recognized financial information service as of 11:00 a.m. (London time) two
Business Days prior to the first day of such Accrual Period, and having a maturity equal to such
Accrual Period, and (2) if no such British Bankers’ Association Interest Settlement Rate is
available to the Note Agent, the applicable LIBO Rate for the relevant Accrual Period shall
instead be the rate determined by the Note Agent to be the rate at which it offers to place
deposits in U.S. dollars with first-class banks in the London interbank market at approximately
11:00 a.m. (London time) two Business Days prior to the first day of such Accrual Period, in the
approximate amount to be funded at the LIBO Rate and having a maturity equal to such Accrual
Period.

     LIBOR Determination Date: The date as of which the LIBO Rate is determined, pursuant to the
definition of that term set forth in this Pricing Side Letter.

     Maximum Note Principal Balance: (i) $1,500,000,000 until March 31, 2006, and (ii) from and
after March 31, 2006, $1,000,000,000, in each case as such amount may be increased or decreased in
accordance with the terms of the Note Purchase Agreement.

     Nonutilization Fee: A fee payable by the Issuer to the Initial Noteholder on each Payment Date
in an amount equal to (a) 0.175% times (b) the average daily amount for the immediately preceding
month of (1) the product of 1.02% and the Maximum Note Principal Balance in effect during such
month less (2) the Note Principal Balance divided by (c) 360 and multiplied by (d) the actual
number of calendar days that have elapsed since the immediately preceding Payment Date (or, with
respect to the first Payment Date, the Closing Date).

     Note Interest Rate: For any Accrual Period:

     (i) to the extent that a Conduit Purchaser funds or maintains its interest in the Note by
issuing its Commercial Paper Notes, the CP Rate,

     (ii) if and to the extent that a Conduit Purchaser elects in its sole discretion not to fund
or maintain, or is not able to fund or maintain, its interest in the Note for such Accrual Period
by the issuance of its Commercial Paper Notes, or if and to the extent that a Committed Purchaser
funds or maintains an interest in the Note, a rate equal to the Assignee Rate for such Accrual
Period.

     (iii) at any time following the occurrence of an Event of Default, the “Note Interest Rate”
for each Accrual Period shall be the sum of the Alternate Base Rate plus 3.0% per annum.

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     Overcollateralization Shortfall: With respect to any Business Day, an amount equal
to the positive difference, if any, between (a) the Note Principal Balance on such
Business Day and (b) the aggregate Collateral Value of all Loans in the Loan Pool as of
such Business Day; provided, however, that (i) if such Business Day is
not a Payment Date, an Overcollateralization Shortfall shall not occur if the Note
Principal Balance exceeds the Collateral Value on such Business Day by an amount less
than or equal to 1.00% of such Note Principal Balance solely as a result of the
aggregate Collateral Value of Loans in any category described in clauses (i) through
(xii) of the second proviso set forth in the definition of “Collateral Value” exceeding
the applicable concentration limit set forth therein, and (ii) on (A) the termination of
the Revolving Period, (B) the occurrence of a Rapid Amortization Trigger, (C) the
Payment Date on which the Trust is to be terminated pursuant to Section 10.02 of the
Sale and Servicing Agreement, or (D) the Final Put Date, the Overcollateralization
Shortfall shall be equal to the Note Principal Balance. Notwithstanding anything to the
contrary herein, in no event shall the Overcollateralization Shortfall, with respect to
any Business Day, exceed the Note Principal Balance as of such date. If as of such
Business Day, no Rapid Amortization Trigger or Default under this Agreement or the
Indenture shall be in effect, the Overcollateralization Shortfall shall be reduced (but
in no event to an amount below zero) by all or any portion of the aggregate Hedge Value
as of such Payment Date as the Majority Noteholders may, in their sole discretion,
designate in writing.

     Revolving Period: With respect to the Notes, the period commencing on the Closing
Date and ending on the earlier of (i) October 2, 2007, and (ii) the date on which the
Revolving Period is terminated pursuant to Section 2.07 of the Sale and Servicing
Agreement. The Revolving Period may be extended annually, in the sole discretion of the
Note Agent, upon the request of the Depositor.

     Section 4. Amendment to the Sale and Servicing Agreement. Effective as of the date
first above written and subject to the execution of this Pricing Side Letter by the parties
hereto, clause (xx) of Exhibit E to the Sale and Servicing Agreement is hereby amended to insert
at the end thereof:

Notwithstanding the foregoing, a Loan that satisfies all of the other representations and
warranties set forth in Exhibit E may satisfy the representation and warranty set forth in
this clause, subject to the limitations set forth in the definition of “Collateral Value”,
if the principal payments on such Loan commence more than two months but no more than seven
years after the proceeds of such Loan were disbursed (any such loan being an “Interest-Only
Loan”).

     Section 4. Amendment to the Note Purchase Agreement. Effective as of the date first
above written and subject to the execution of this Pricing Side Letter by the parties hereto,
Schedule II to the Note Purchase Agreement is hereby amended to delete the notice address for
PREFCO now appearing therein and to substitute the following notice address for PARCO therefor:

7

 

	 	 	 
	If to Park Avenue
Receivables Company
LLC:

	 	c/o JPMorgan Chase Bank, N.A., as Note
Agent

Asset Backed Finance 

Suite IL1-0079, 1-19

1 Bank One Plaza

Chicago, Illinois 60670-0079

Facsimile No.: (312) 732-1844

Telephone No.: (312) 732-2960

With a copy to the Note Agent;

     Section 5. Counterparts; Amendment.

     This Pricing Side Letter may be executed simultaneously in any number of counterparts. Each
counterpart shall be deemed to be an original, and all such counterparts shall constitute one and
the same instrument. No amendment or waiver of any provision of this Pricing Side Letter, and no
consent to any departure by any of the parties hereto from its expressed terms, shall in any
event be effective unless the same shall be in writing and signed by the parties hereto.

     Section 6. Limitation on Liability.

     It is expressly understood and agreed by the parties hereto that (a) this Pricing Side Letter
is executed and delivered by Wilmington Trust Company, not individually or personally, but solely
as Owner Trustee of Option One Owner Trust 2003-4 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 of 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 Pricing Side Letter or any other
related documents.

[SIGNATURE PAGES FOLLOW]

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     IN WITNESS WHEREOF, the parties and the Conduit Purchasers identified below have caused
their names to be signed hereto by their respective officers thereunto duly authorized on the
date first above written.

	 	 	 	 	 
	Option One Owner Trust 2003-4	 	 
	 
	 	 	 	 
	By:

	 	Wilmington Trust Company, not
in its individual capacity but solely
in its capacity as Owner Trustee	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mary Kay Pupillo
 

Name: Mary Kay Pupillo
	 	 
	 

	 	Title: Assistant Vice President	 	 

	 	 	 	 	 
	Wells Fargo Bank, N.A.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Brett Handelman	 	 
	 

	 	 

Name: Brett Handelman
	 	 
	 

	 	Title: VP	 	 

	 	 	 	 	 
	Option One Loan Warehouse Corporation	 	 
	 
	 	 	 	 
	By:
	 	/s/ Philip Laren	 	 
	 

	 	 

Name: Philip Laren
	 	 
	 

	 	Title: Vice President	 	 

	 	 	 	 	 
	Option One Mortgage Corporation	 	 
	 
	 	 	 	 
	By:
	 	/s/ Philip Laren	 	 
	 

	 	 

Name: Philip Laren
	 	 
	 

	 	Title: Senior Vice President	 	 

	 	 	 	 	 
	Falcon Asset Securitization Company LLC
(formerly known as Falcon Asset
Securitization Corporation), as a
Conduit Purchaser	 	 
	 
	 	 	 	 
	By:

	 	JPMorgan Chase Bank, N.A.,
its attorney-in-fact	 	 
	 
	 	 	 	 
	By:
	 	/s/ John Svolos	 	 
	 

	 	 

Name: John Svolos
	 	 
	 

	 	Title: Vice President	 	 

	 	 	 	 	 
	JPMorgan Chase Bank, N.A., as Note Agent
and Committed Purchaser	 	 
	 
	 	 	 	 
	By:
	 	/s/ John Svolos	 	 
	 

	 	 

Name: John Svolos
	 	 
	 

	 	Title: Vice President	 	 

	 	 	 	 	 
	Park Avenue Receivables Company LLC, as
a Conduit Purchaser	 	 
	 
	 	 	 	 
	By:

	 	JPMorgan Chase Bank, N.A., its
attorney-in-fact	 	 
	 
	 	 	 	 
	By:
	 	/s/ John Svolos	 	 
	 

	 	 

Name: John Svolos
	 	 
	 

	 	Title: Vice President	 	 

Signature Page to
Fourth
Amended and Restated Pricing Side Letter

 

 

	 	 	 	 	 
	ACKNOWLEDGED & AGREED	 	 
	 
	 	 	 	 
	Jupiter Securitization Company LLC

(formerly known as
Jupiter Securitization Corporation), 

as a Conduit
Purchaser	 	 
	 
	 	 	 	 
	By:

	 	JPMorgan Chase Bank, N.A., its 

attorney-in-fact	 	 
	 
	 	 	 	 
	By:

	 	/s/ John Svolos
 

Name: John Svolos
	 	 
	 

	 	Title: Vice President	 	 

Signature Page to

Fourth Amended and Restated Pricing Side Letterexv10w4

 

Exhibit 10.4

OMNIBUS AMENDMENT NUMBER ONE

to the

OPTION ONE OWNER TRUST 2005-8 WAREHOUSE FACILITY

          This OMNIBUS AMENDMENT NUMBER ONE (this “Amendment”) is made
and is effective as of this 6th day of October, 2006, among Option One Owner Trust 2005-8, as
issuer (the “Issuer”), Option One Loan Warehouse Corporation, as depositor (the “Depositor”),
Option One Mortgage Corporation as loan originator and servicer (“Option One”), Wells Fargo
Bank, N.A. as indenture trustee (the “Indenture Trustee”), Merrill Lynch Bank USA, as
noteholder agent and purchaser (“Merrill Lynch”) to (i) the Note Purchase Agreement, dated as
of October 1, 2005 (as amended, supplemented or otherwise modified from time to time, the
“Note Purchase Agreement”), among the Issuer, the Depositor and Merrill Lynch and (ii) the
Sale and Servicing Agreement, dated as of October 1, 2005 (as amended, supplemented or
otherwise modified from time to time, the “Sale and Servicing Agreement” and together with the
Note Purchase Agreement, the “Transaction Documents”), among the Issuer, the Depositor,
Option One and the Indenture Trustee.

RECITALS

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

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

          SECTION 1. Defined Terms. Capitalized terms used but not defined herein shall
have the meanings ascribed to such terms in the Transaction Documents.

          SECTION 2. Amendment to Sale and Servicing Agreement.

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

     “QSPE Affiliate: Any of Option One Owner Trust 2001-1A, Option One
Owner Trust 2001-1B, Option One Owner Trust 2002-3, Option One Owner Trust
2003-4, Option One Owner Trust 2003-5, Option One Owner Trust 2005-6,
Option One Owner Trust 2005-8, Option One Owner Trust 2005-8, Option One
Owner Trust 2005-9 or any other Affiliate which is a “qualified special purpose
entity” in accordance with Financial Accounting Standards Board’s Statement No.
140 or 125.”

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

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     “Revolving Period: With respect to the Notes, the period commencing on
October 6, 2006 and ending on the earlier of (i) 364 days after such date, and (ii)
the date on which the Revolving Period is terminated pursuant to Section
2.07.”

     (d) Section 2.07 of the Sale and Servicing Agreement is hereby amended by deleting
it in entirety and replacing it with the following:

     “Upon the occurrence of (i) an Event of Default or Default or (ii) the
Unfunded Transfer Obligation Percentage equals 4% or less or (iii) Option One or
any of its Affiliates shall default under, or fail to perform as requested under, or
shall otherwise materially breach the terms of any repurchase agreement, loan and
security agreement or similar credit facility or agreement entered into by Option
One or any of its Affiliates, including without limitation, the Sale and Servicing
Agreement, dated as of April 1, 2001, among the Option One Owner Trust
2001-1 A, the Depositor, Option One and the Indenture Trustee, the Sale and
Servicing Agreement, dated as of April 1, 2001, among the Option One Owner
Trust 2001-IB, the Depositor, Option One and the Indenture Trustee, the Sale and
Servicing Agreement, dated as of July 2, 2002, among the Option One Owner
Trust 2002-3, the Depositor, Option One and the Indenture Trustee, the Sale and
Servicing Agreement, dated as of August 8, 2003, among the Option One Owner
Trust 2003-4, the Depositor, Option One and the Indenture Trustee, the Sale and
Servicing Agreement, dated as of June 1, 2005, among Option One Owner Trust
2005-6, the Depositor, Option One and the Indenture Trustee, the Sale and
Servicing Agreement, dated as of September 1, 2005, among the Option One
Owner Trust 2005-7, the Depositor, Option One and the Indenture Trustee, the
Sale and Servicing Agreement, dated as of October 1, 2005 among Option One
Owner Trust 2005-8, the Depositor, Option One and the Indenture Trustee and the
Sale and Servicing Agreement, dated as of December 30, 2005 among Option
One Owner Trust 2005-9, the Depositor, Option One and the Indenture Trustee
and such default, failure or breach shall entitle any counterparty to declare the
Indebtedness thereunder to be due and payable prior to the maturity thereof. The
Initial Noteholder may, in any such case, in its sole discretion, terminate the
Revolving Period.”

          SECTION 3. Amendment to Note Purchase Agreement.

     (a) Section 2.02 of the Note Purchase Agreement is hereby deleted in its entirety and
replaced with the following:

          “SECTION
2.02 Closing. The closing (the “Closing”) of the execution of the
Basic Documents and issuance of the Notes shall take place at 10:00 a.m. at the offices of Thacher
Proffitt & Wood, Two World Financial Center, New York, New York 10281, or if the conditions
to closing set forth in Article IV of this Note Purchase Agreement shall not have been satisfied or
waived by such date, as soon as practicable after such conditions shall have been satisfied or
waived, or at such other time, date and place as the parties shall agree upon.”

2

 

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

          
SECTION 5. Fees and Expenses. The Issuer and the Depositor jointly and
severally covenant to pay as and when billed by Merrill Lynch 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 Merrill Lynch, (ii) all reasonable fees and expenses of the Indenture
Trustee and Owner Trustee and their counsel and (iii) all reasonable fees and expenses of the
Custodian and its counsel.

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

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

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

          SECTION 9. Limitation on Liability. It is expressly understood and agreed by
the parties hereto that (a) this Amendment is executed and delivered by Wilmington Trust
Company, not individually or personally, but solely as Owner Trustee of Option One Owner
Trust 2005-8 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.

3

 

\

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

	 	 	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2005-8
	 
	 	 	 	 	 	 
	 	 	By:	 	Wilmington Trust
Company, not in its individual capacity but solely 

as owner trustee
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mary Kay Pupillo	 	 
	 

	 	Name:
	 	 

Mary Kay Pupillo 	 	 
	 

	 	Title:
	 	Assistant Vice President 	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE LOAN WAREHOUSE CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Philip Laren	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Philip Laren	 	 
	 

	 	Title:	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE MORTGAGE CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Philip Laren	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Philip Laren	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Barry Schwartz 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Barry Schwartz	 	 
	 

	 	Title:	 	VP	 	 

 

 

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

	 	 	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2005-8
	 
	 	 	 	 	 	 
	 	 	By:	 	Wilmington Trust Company, not in its individual capacity but solely as owner

trustee
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE LOAN WAREHOUSE CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Philip Laren	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Philip Laren 	 	 
	 

	 	Title:
	 	Vice President 	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE MORTGAGE CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Philip Laren	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Philip Laren 	 	 
	 

	 	Title:
	 	Senior Vice President 	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

 

 

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

	 	 	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2005-8
	 
	 	 	 	 	 	 
	 	 	By:	 	Wilmington Trust Company, not in its individual capacity but solely as owner

trustee
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE LOAN WAREHOUSE CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE MORTGAGE CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Barry Schwartz	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Barry Schwartz	 	 
	 

	 	Title:
	 	V P	 	 

 

 

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA, as

Purchaser
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James B. Cason	 	 
	 

	 	Name:
	 	 

James B. Cason	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA, as

Noteholder Agent
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joseph Magnus	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph Magnus	 	 
	 

	 	Title:
	 	Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]