Document:

Amendment No. 6 to Revolving Credit and Security, dated August 25, 2004

 Exhibit 10.10 
  
 AMENDMENT NO. 6 TO 
 REVOLVING CREDIT AND SECURITY AGREEMENT 
  
 THIS AMENDMENT NO. 6
(the “Amendment”) is made and entered into as of August 25, 2004 by and between Countrywide Warehouse Lending (“Lender”), Encore Credit Corp. and Bravo Capital Corporation (jointly, the “Borrower”). This Amendment
amends that certain Revolving Credit and Security Agreement by and between Lender and Borrower dated as of May 14, 2002 (as may be amended from time to time, the “Credit Agreement”). 
  
 R E C I T A L S 
  
 Lender and Borrower have previously entered into the Credit Agreement
pursuant to which Lender may, from time to time, provide Borrower credit in the form of a warehouse line secured by residential mortgage loans. Lender and Borrower hereby agree that the Credit Agreement shall be amended as provided herein.

  
 In consideration of the mutual promises contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower hereby agree as follows: 
  

	1.	Additional Named “Borrower” Added to Credit Agreement. Lender and Borrower hereby agree to add ECC Capital Corporation, formed under the laws of Maryland
(“Co-Borrower”) as an additional named “Borrower” to the Credit Agreement effective as of the date hereof. By being added as an additional named “Borrower” to the Credit Agreement and executing this Amendment below, it
is understood and agreed by Co-Borrower that Co-Borrower shall be bound by all of the rights, liabilities, covenants and obligations of “Borrower” under the Credit Agreement. This includes, without limitation, being bound by all the
rights, liabilities, covenants and obligations of “Borrower” under the Credit Agreement with respect to any Advances made by Lender to Borrower under the Credit Agreement prior to the date hereof or any Advances that Lender may make to
Borrower or Co-Borrower under the Credit Agreement on or after the date hereof. Further, Borrower and Co-Borrower hereby expressly agree to be jointly and severally liable for all rights, liabilities, covenants and obligations of
“Borrower” under the Credit Agreement, regardless of which entity incurred or is responsible for such rights, liabilities, covenants and obligations. 

  

	2.	Lender Consent For Borrower Representations and Warranties. In accordance with Section 8.1(n) of the Credit Agreement, Lender and Borrower hereby consent that
Co-Borrower is not an approved FHA, VA, GNMA, FNMA and/or FHLMC seller, mortgagee and /or servicer, as represented in the Lender’s Customer Profile and Application. 

  

	3.	 Lender Approval For Fidelity Bonds and Insurance. In accordance with Section 9.10 of the Credit Agreement, Lender and Borrower hereby agree to provide
Co-Borrower Ninety Calendar Days (90) from the executed date of this Amendment for Co-Borrower to institute and maintain an insurance policy, in a form and substance satisfactory to Lender, covering against loss or damage relating to or resulting
from any breach of fidelity by Borrower, or any officer director, employee or agent of Borrower, any loss or destruction of documents (whether written or electronic), fraud, theft, misappropriation and coverage in an amount equal to one million
dollars ($1,000,000) or that required by FNMA in Section 1.01 of the FNMA Guaranteed Mortgage Backed Securities Sellers’ and Servicers’ Guide, whichever is greater. The deductible on such insurance policy shall not exceed fifty thousand
dollars ($50,000). Following approval by Lender of a specific insurance 

  

	 	 
policy, Borrower shall not amend, cancel, suspend or otherwise change such policy without the prior written consent of Lender. 

 

	4.	Section 10.4 – Financial Ratios. Section 10.4 of the Credit Agreement is deleted in its entirety and replaced with the following: 

  
 Section 10.4 – Tangible Net Worth; Financial Ratios.
Borrower and Co-Borrower shall not permit, at any time, its Tangible Net Worth to be less than the amounts specified in the Commitment Letter. Further, Borrower shall not permit, at any time, any Financial Ratios as may be set forth in the
Commitment Letter to be less than the requirements therein. 
  

	5.	Section 10.9 – Payment of Dividends and Retirement of Stock. Notwithstanding anything contained in Section 10.9 of the Credit Agreement to the contrary, Lender
and Borrower hereby agree that Co-Borrower may declare or pay dividends upon its shares of stock now or hereafter outstanding, provided Co-Borrower: 

  

	 	(a)	Does not violate Covenants set forth in the Agreement. 

  

	 	(b)	Distributes dividends to Borrower. 

  
 Otherwise prohibited 
  

	6.	No Other Amendments. Other than as expressly modified and amended herein, the Credit Agreement shall remain in full force and effect and nothing herein shall affect
the rights and remedies of Lender as provided under the Credit Agreement. 

  

	7.	Capitalized Terms. Any capitalized term used herein and not otherwise defined herein shall have the meaning ascribed to such term in the Credit Agreement.

  

 IN WITNESS WHEREOF, Lender, Co-Borrower and Borrower have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the date first written above. 
  

			
	COUNTRYWIDE WAREHOUSE LENDING
		
	By:	 	 /s/ Richie Walia

	 	 	 Signature

	 Name:
	 	 Richie Walia

	 Title:
	 	 Illegible

  

			
	ENCORE CREDIT CORP.
		
	By:	 	 /s/ Shahid Asghar

	 	 	 Signature

	 Name:
	 	 Shahid Asghar

	 Title:
	 	 President

  

			
	BRAVO CREDIT CORPORATION
		
	By:	 	 /s/ Shahid Asghar

	 	 	 Signature

	 Name:
	 	 Shahid Asghar

	 Title:
	 	 President

  

			
	ECC CAPITAL CORPORATION
		
	By:	 	 /s/ Shahid Asghar

	 	 	 Signature

	 Name:
	 	 Shahid Asghar

	 Title:
	 	 PresidentCommitment Letter, dated as of May 13, 2002

 Exhibit 10.12 
  

			
	May 13, 2002	 	[CWL]
		
	Encore Credit Corporation	 	8511 FALLBROOK AVENUE
	101 Innovation Drive, Suite 200	 	WEST HILLS, CALIFORNIA 91304
	Irvine, California 92612	 	(800) 669-2955
	Attn: Mr. Steve Holder, Chief Executive Officer	 	(818) 316-8000
	 	 	(818) 316-8841 FAX

  

	Re:	Commitment Letter for Revolving Credit and Security Agreement 

  
 Ladies and Gentlemen 
  
 This Commitment Letter is made and entered into, as of the date set forth above, by and between Countrywide Warehouse Lending, a California corporation (“Lender”) and Encore Credit Corporation, a California
corporation (“Borrower”). This Commitment Letter supplements the Revolving Credit and Security Agreement (the “Agreement”) by and between Lender and Borrower of even date herewith. In the event there exists any inconsistency
between the Agreement and this Commitment Letter, the latter shall be controlling notwithstanding anything contained in the Agreement to the contrary. All capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Agreement. 
  

			
		
	Effective Date	  	May 13, 2002
		
	Maturity	  	May 12, 2003
		
	Aggregate Credit Limit:	  	$100,000,000; provided that availability of the Aggregate Credit Limit in excess of $50 million shall be subject to the additional terms set forth on Schedules 2 and 3, as
applicable.
		
	Credit Off Feature	  	 Additional $20,000,000 uncommitted. In order to qualify for Credit Off, a loan must:
  
 1.      Be in Tranche A or B;
  
 2.      Have
collateral delivered and accepted;
  
 3.      Have a valid Countrywide commitment number or trade confirmation;
  
 4.      Have other documents delivered as may be required.
  
 Interest and all other fees will continue to accrue until purchase.
Noncompliant loans are not eligible for the credit off feature.

		
	 Advance Rate and Calculation
 of Advance Amounts and
Other
 Credit Terms:
	  	As set forth on Schedule 1
		
	Financial Covenants:	  	The ongoing availability of the credit facility described herein is subject to the maintenance of the following financial covenants:
		
	 	  	 (a)    Minimum Tangible Net Worth, (as defined by HUD) plus Subordinated Debt: $3,500,000;

		
	 	  	 (b)    Minimum Liquidity: Company to maintain cash or cash equivalents in a minimum amount at
least

  

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 May 13, 2002 
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	 	  	 equal to the 30% of Tangible Net Worth, inclusive of the Over/Under Account Balance;

		
	 	  	 (c)    Minimum Over/Under Account Balance: $250,000 initial, growing to a minimum of $500,000 through line
advances on fundings and settlements. (Company to be entitled to interest thereon at LlBOR minus 0.50%.);

		
	 	  	 (d)    Leverage Ratio: Maximum ratio of Debt, plus Purchase facilities, and Repurchase facilities, to Tangible
Net Worth plus Subordinated Debt: For the period prior to August 31, 2002, 30:1; through the period October 31, 2002, 25:1 and, thereafter, 20:1;

		
	 	  	 (e)    Net Income: Company shall show positive pre-tax net income, commencing with the month ending September
2002 and quarterly thereafter;

		
	 	  	 (f)     Interim Financial Reports: Company to provide Lender with interim monthly financial reports
together with all other financial information requested by Lender.

		
	Advance Request Deadline:	  	1:00 p.m. (Pacific time), Lender to use best efforts on wire requests received through 2:00 p.m. (Pacific time)
		
	 Deadline for daily receipt
 of funds and Purchase
Advices:
	  	1:00 p.m. (Pacific time)
		
	Commitment Fee	  	The amount of $62,500 payable in equal quarterly installments, commencing on the Target Effective Date, Provided that the entire remaining balance shall be due immediately upon termination by
Company.
		
	Unused Credit Facility Fees	  	25 basis points (0.25%) of the unused portion of the Aggregate Credit Limit then in effect, annualized, if the unused portion of the Aggregate Credit Limit is greater than 50% of the
Aggregate Credit Limit. This will be waived for the first 30 days of the credit facility.
		
	Eligible Collateral	  	Prior to each Advance and for so long as a mortgage loan is pledged to Lender, each such mortgage loan will satisfy Lender’s eligibility criteria, including, but not limited
to:
		
	 	  	 (a)    Each mortgage loan will conform in all material respects to Company’s underwriting guidelines, which shall
be provided to, and approved by, Lender;

		
	 	  	 (b)    Each mortgage loan will be in compliance with all representations and warranties contained in the Loan Documents
(defined below);

		
	 	  	 (c)    No mortgage loan will be contractually delinquent 30 days or more;

		
	 	  	 (d)    No more than 5% of the aggregate outstanding balance will consist of mortgage loans with a

  

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 May 13, 2002 
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	 	  	 manufactured dwelling property type and no such mortgage loan will have an LTV in excess of 85%;

		
	 	  	 (e)    No more than 5% of the aggregate outstanding balance will consist of mortgage loans having credit grades of C-
or D;

		
	 	  	 (f)     No mortgage loan will be subject to either HOEPA requirements or any similar state or local “high
cost” law or regulation;

		
	 	  	 (g)    No mortgage loan will have an original principal balance in excess of $750,000, subject to the restrictions of
Tranche B in Schedule 1;

		
	 	  	 (h)    No loan shall have a FICO score, on the primary borrower, of less than 500;

		
	 	  	 (i)     No mortgage loan shall have an LTV or CLTV in excess of 100%;

		
	 	  	 (j)     No more than 3% of the aggregate outstanding balance will consist of mortgage loans that are stated income
investment property;

		
	 	  	 (k)    No loan shall have an overall debt-to-income ratio in excess of 55.0%;

		
	 	  	 (l)     There will be no adverse selection with respect to mortgage loans delivered hereunder and that the
characteristics with respect to, but not limited to, note rate distribution, LTV, loan grade, credit score and geographic distribution shall be consistent with the characteristics of Company’s overall loan production.

		
	Servicing of Assets	  	The Company will allocate loans under the facility for interim servicing by Countrywide commencing no later than 90 days following the Effective Date.
		
	Pipeline Reports, Trade Confirmations	  	 
	and Settlement Schedules:	  	Company will provide Lender (a) an electronic data format on a weekly basis of mortgage loans financed with Lender (data elements to be agreed upon), and (b) trade confirmations and
settlement schedules relating to Company’s whole loan sale and securitization transactions which include mortgage loans financed with Lender.
		
	Reimbursement of Expenses:	  	Company shall reimburse Lender for certain out-of-pocket expenses under the following circumstances:
		
	 	  	 (a)    In the event Lender grants final approval for the contemplated credit facility and Company does not consummate
the closing of such credit facility, Company shall reimburse Lender, within 15 days of receipt of invoice from Lender, for all out-of-pocket expenses incurred by Lender in connection with the credit facility; and

  

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	 	  	 (b)    Company shall also reimburse Lender, on a quarterly basis, for all out-of-pocket expenses incurred in
connection with any ongoing due diligence under the credit facility including, without limitation, contract underwriting services.

		
	Fees and Expenses:	  	Company to pay Lender the following fees and expenses in connection with the credit facility:
		
	 	  	 (a)    Shipping/Wire Fees: $10 for shipment of packages to investors other than Countrywide and $7 for
all wire transfers.

		
	 	  	 (b)    Other Fees: As set forth in Schedule 1 hereto.

		
	Whole Loan Commitment:	  	During the term of this credit facility (and for an additional six months thereafter at the request of Company and the approval of Countrywide Home Loans, Inc. (“Investor”) in its
sole discretion), Company will sell to Investor a portion of its mortgage production equal to the lesser of (i) the Minimum Delivery Amount, as defined below, and (ii) 45% of the Company’s mortgage loan production during the term of the Credit
Facility, in each case including (a) offering to Investor for purchase not less than $50 million each quarterly period during the term of the Credit Facility and (b) the sale to Investor of not less than $25 million during each such quarterly
period. Company shall pay a fee equal to 25 basis points (0.25%) on the undelivered amount. For purposes hereof, the “Minimum Delivery Amount” shall mean $200 million; provided, however, that in the event that (a) the dollar price bid by
Investor for a pool of loans offered for sale by the Company is more than 50 basis points (0.50%) less than the highest bona fide price bid for such pool by a third party and (b) the Company sells such pool of mortgage loans to such third party,
then the Minimum Delivery Amount shall be reduced by one-half (50%) of the unpaid principal balance of such pool of mortgage loans; provided, further that, in no event will the Minimum Delivery Amount be less than $100 million.
		
	 	  	Countrywide Securities Corporation shall have the option to participate as lead manager on the Company’s first securitization transaction. Countrywide Securities Corporation shall also
have the option to act as co-manager on any other securitizations of the Company during the term of the credit facility.
		
	Guarantors:	  	Company’s primary principals, Steve Holder and Shabi Asghar, to provide personal guaranties securing the obligations of Company under this credit facility. Lender will review Guarantor
requirements after Company has

  

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	 	  	exceeded a minimum Tangible Net Worth of $10 million and at least 6 months have elapsed on the term of the credit facility.
		
	Initial Review Period:	  	Notwithstanding anything contained herein to the contrary, upon the conclusion of the first ninety (90) days following the effective date of the credit facility, Lender shall have the rights
to (a) review Company and Company’s use of the credit facility and (b) based on such review, terminate the credit facility by providing ninety (90) days written notice to Company. Such review and termination rights shall be in addition to any
other rights and remedies of Lender as provided herein, in the Agreement or otherwise.
		
	Additional Conditions:	  	Lender and Company agree that this preliminary term sheet is not intended to, and does not, constitute a binding offer by Lender to extend credit to Company. Lender and Company further agree
that Lender shall not be bound by the terms set forth herein, or be otherwise obligated to provide a credit facility to Company, unless and until (a) Lender has completed its due diligence review of Lender and has approved, in its sole discretion,
Company for the contemplated credit facility, and (b) Lender and Company have executed a mutually acceptable revolving credit and security agreement, together with such other documents as may be necessary to effect the contemplated transaction
(collectively, the “Loan Documents”).

  
 Please acknowledge your agreement to
the terms and conditions of this Commitment Letter by signing in the appropriate space below and returning a copy of the same to the undersigned. Facsimile signatures shall be deemed valid and binding to the same extent as the original. 

 

									
	 Sincerely,
	 	 	 	 Agreed to and Accepted by

			
	Countrywide Warehouse Lending	 	 	 	Encore Credit Corporation
					
	 By:
	 	 /s/ Thomas C. Williams
	 	 	 	By:	 	 /s/ Steve Holder

	 	 	 Thomas C. Williams
 President
	 	 	 	 	 	 Steve Holder
 Chief Executive Officer

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