Document:

exv10w5

 

Exhibit 10.5

AMENDMENT NUMBER TWO TO

AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

          This Amendment Number Two (this “Amendment”), dated as of October 1, 2007, amends the
Amended and Restated Note Purchase Agreement, dated as of April 16, 2004 (the “Agreement”),
among Option One Owner Trust 2001-1A, a Delaware statutory trust (the “Company”),
Greenwich Capital Financial Products, Inc. a Delaware corporation (the “Purchaser”) and
Option One Loan Warehouse LLC (formerly known as Option One Loan Warehouse Corporation), a
California corporation (the “Depositor”).

RECITALS

          WHEREAS, the parties hereto have entered into the Agreement;

          WHEREAS, the parties hereto now wish to amend certain provisions in the Agreement pursuant to
Section 10.01 of the Agreement;

          NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, the
parties hereto agree to amend the Agreement pursuant to Section 10.01 of the Agreement and
restate certain provisions thereof as follows:

          SECTION 1. Defined Terms. Unless defined in this Amendment, capitalized terms used in
this Amendment (including the preamble) shall have the meaning given such terms in the Agreement.

          SECTION 2. Amendment. Effective as of October 1, 2007, the following amendments shall
be in full force and effect.

     (i) Section 1.01 of the Agreement is hereby amended by deleting the definition of
“Maximum Note Principal Balance” in its entirety and replacing it with the following:

     “Maximum Note Principal Balance” means an amount equal to
$750,000,000, less the aggregate amount outstanding from time to time under any
secured loan or repurchase facility entered into by Greenwich, or its Affiliates,
and Option One Mortgage Corporation, or its Subsidiaries, including without
limitation the Servicing Advance Facility.

     (ii) Section 3.02 of the Agreement is hereby amended by adding the following new
subparagraph (e) to such Section:

     (e) Notwithstanding any other term in this Note Purchase Agreement, as of
October 1, 2007, the Issuer shall no longer purchase Residual Securities and
Additional Note Balances in connection with any Advance Notes under this
Agreement.

          SECTION 3. Condition to Effectiveness. As a condition to the effectiveness of this
Amendment, the Purchaser shall have given its consent.

 

 

          SECTION 4. Effect of Amendment. Upon the execution of this Amendment and the attached
consent of Purchaser, the Agreement shall be modified and amended in accordance herewith and the
respective rights, limitations, obligations, duties, liabilities and immunities of each party to
the Agreement shall hereafter be determined, exercised and enforced subject in all respects to
such modifications and amendments, and all the terms and conditions of this Amendment shall be and
be deemed to be part of the terms and conditions of the Agreement for any and all purposes as of
the date first set forth above. The Agreement, as amended hereby, is hereby ratified and confirmed
in all respects.

          SECTION 5. The Agreement in Full Force and Effect as Amended. Except as specifically
amended hereby, all the terms and conditions of the Agreement shall remain in full force and
effect and, except as expressly provided herein, the effectiveness of this Amendment shall not
operate as, or constitute a waiver or modification of, any right, power or remedy of any party to
the Agreement. All references to the Agreement in any other document or instrument shall be deemed
to mean the Agreement as amended by this Amendment.

          SECTION 6. Counterparts. This Amendment may be executed by the parties in several
counterparts, each of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement. This Amendment shall become effective when counterparts
hereof executed on behalf of such party shall have been received.

          SECTION 7. Governing Law. This Amendment shall be construed in accordance with and
governed by the laws of the State of New York applicable to agreements made and to be performed
therein.

          SECTION 8. Limitation on Liability. It is expressly understood and agreed by the
parties hereto that (a) this Amendment Number Two is executed and delivered by Wilmington Trust
Company, not individually or personally, but solely as Owner Trustee of Option One Owner Trust
2001-1A 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 Number Two or any other related documents.

 2 

 

 

          IN WITNESS WHEREOF, the Company, the Purchaser and the Depositor have caused this Amendment to
be duly executed by their respective officers, effective as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2001-1A,

as Company	 	 
	 
	 	 	 	 	 	 
	 	 	By: WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner

Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	GREENWICH CAPITAL
FINANCIAL PRODUCTS, INC.,

as the Purchaser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE LOAN WAREHOUSE LLC

as the Depositor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William L. O’Neill	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: William L. O’Neill	 	 
	 

	 	 	 	Title: Secretary, Treasurerexv10w6

 

Exhibit 10.6

EXECUTION COPY

RECEIVABLES PURCHASE AGREEMENT

AMONG

OPTION ONE ADVANCE TRUST 2007-ADV2

AS ISSUER

OPTION ONE ADVANCE CORPORATION

AS DEPOSITOR

AND

OPTION ONE MORTGAGE CORPORATION

AS SELLER

DATED AS OF OCTOBER 1, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I.
	 
	 	 	 	 
	DEFINITIONS
	Section 1.01. Certain Defined Terms
	 	 	1	 
	Section 1.02. Other Definitional Provisions
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II.
	 
	 	 	 	 
	SALE OF RECEIVABLES; CLOSING; ACKNOWLEDGMENT AND CONSENT
	
Section 2.01. Sale of Receivables
	 	 	2	 
	Section 2.02. Closing
	 	 	4	 
	Section 2.03. Seller’s Acknowledgment and Consent to Assignment
	 	 	4	 
	 
	 	 	 	 
	
ARTICLE III.
	 
	 	 	 	 
	CONDITIONS PRECEDENT TO CLOSING
	Section 3.01. Closing Subject to Conditions Precedent
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV.
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF THE ISSUER
	Section 4.01. Representations and Warranties
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V.
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR
	Section 5.01. Representations and Warranties
	 	 	7	 
	 
	 	 	 	 
	ARTICLE VI.
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF THE SELLER
	 	 	 	 
	Section 6.01. Representations and Warranties
	 	 	9	 
	Section 6.02. Repurchase Upon Breach
	 	 	15	 
	 
	 	 	 	 
	ARTICLE VII.
	 
	 	 	 	 
	INTENTION OF THE PARTIES; SECURITY INTEREST
	Section 7.01. Intention of the Parties
	 	 	15	 
	Section 7.02. Security Interest
	 	 	16	 

i

 

	 	 	 	 	 
	 	 	Page
	ARTICLE VIII.
	 
	 	 	 	 
	COVENANTS OF THE SELLER

	Section 8.01. Information
	 	 	17	 
	Section 8.02. Acknowledgment
	 	 	18	 
	Section 8.03. Access to Information
	 	 	18	 
	Section 8.04. Ownership and Security Interests; Further Assurances
	 	 	18	 
	Section 8.05. Covenants
	 	 	19	 
	Section 8.06. Amendments
	 	 	19	 
	Section 8.07. Assignment of Rights
	 	 	19	 
	 
	 	 	 	 
	ARTICLE IX.
	 
	 	 	 	 
	ADDITIONAL COVENANTS
	Section 9.01. Legal Conditions to Closing
	 	 	20	 
	Section 9.02. Expenses
	 	 	20	 
	Section 9.03. Mutual Obligations
	 	 	20	 
	Section 9.04. Reserved
	 	 	20	 
	Section 9.05. Servicing Standards
	 	 	20	 
	Section 9.06. Transfer of Servicing
	 	 	21	 
	Section 9.07. Bankruptcy
	 	 	21	 
	Section 9.08. Legal Existence
	 	 	22	 
	Section 9.09. Compliance With Laws
	 	 	22	 
	Section 9.10. Taxes
	 	 	22	 
	Section 9.11. No Liens, Etc. Against Receivables and Trust Property
	 	 	22	 
	Section 9.12. Amendments to Pooling and Servicing Agreements
	 	 	22	 
	Section 9.13. No Netting or Offsetting
	 	 	23	 
	Section 9.14. Books and Records
	 	 	23	 
	Section 9.15. Verification Agent
	 	 	23	 
	Section 9.16. Exclusive
	 	 	23	 
	Section 9.17. Recovery
	 	 	24	 
	Section 9.18. Merger
	 	 	24	 
	Section 9.19. Use of Proceeds
	 	 	25	 
	 
	 	 	 	 
	ARTICLE X.
	 
	 	 	 	 
	INDEMNIFICATION
	Section 10.01. Indemnification
	 	 	24	 
	 
	 	 	 	 
	ARTICLE XI.
	 
	 	 	 	 
	MISCELLANEOUS
	Section 11.01. Amendments
	 	 	26	 
	Section 11.02. Notices
	 	 	26	 
	Section 11.03. No Waiver; Remedies
	 	 	26	 
	Section 11.04. Binding Effect; Assignability
	 	 	26	 
	Section 11.05. GOVERNING LAW; JURISDICTION
	 	 	26	 
	Section 11.06. Execution in Counterparts
	 	 	27	 
	Section 11.07. Survival
	 	 	27	 
	Section 11.08. Third Party Beneficiary
	 	 	27	 

ii

 

	 	 	 	 	 
	 	 	Page
	Section 11.09. General
	 	 	27	 
	Section 11.10. LIMITATION OF DAMAGES
	 	 	28	 
	Section 11.11. WAIVER OF JURY TRIAL
	 	 	28	 
	Section 11.12. No Recourse
	 	 	28	 

	 	 	 	 	 
	Schedule I

	 	—
	 	Information for Notices
	Schedule II

	 	—
	 	Amendments to Pooling and Servicing Agreements
	Exhibit A

	 	—
	 	Copy of Initial Funding Date Report for Initial
Receivables
	Exhibit B

	 	—
	 	Funding Notice
	Exhibit C

	 	—
	 	Form of Bill of Sale from Depositor to Issuer
	Exhibit D

	 	—
	 	Schedule I Report
	Exhibit E

	 	—
	 	Schedule II Report

iii

 

          RECEIVABLES PURCHASE AGREEMENT, dated as of October 1, 2007 (the “Receivables Purchase
Agreement” or this “Agreement”), among OPTION ONE ADVANCE TRUST 2007-ADV2 (the “Issuer”), OPTION
ONE ADVANCE CORPORATION (the “Depositor”) and OPTION ONE MORTGAGE CORPORATION (the “Seller” or
“Option One”).

          The parties hereto agree as follows:

ARTICLE I.

DEFINITIONS

          Section 1.01. Certain Defined Terms. Capitalized terms used herein without definition shall
have the meanings set forth in the Indenture. Additionally, the following terms shall have the
following meanings:

          “Cash Purchase Price” means, with respect to the Eligible Receivables sold and/or contributed
on a Funding Date, the Collateral Value of the Eligible Receivables sold to the Issuer on such
Funding Date.

          “Closing” shall have the meaning set forth in Section 2.02.

          “Contribution” shall have the meaning set forth in Section 2.01(a).

          “Governmental Actions” means any and all consents, approvals, permits, orders, authorizations,
waivers, exceptions, variances, exemptions or licenses of, or registrations, declarations or
filings with, any Governmental Authority required under any Governmental Rules.

          “Governmental Authority” means the United States of America, any state or other political
subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and having jurisdiction over the applicable
Person.

          “Governmental Rules” means any and all laws, statutes, codes, rules, regulations, ordinances,
orders, writs, decrees and injunctions, of any Governmental Authority and any and all legally
binding conditions, standards, prohibitions, requirements and judgments of any Governmental
Authority.

          “Indemnified Party” as defined in Section 10.01(b).

          “Indenture” means the Indenture, dated as of October 1, 2007, between the Issuer and Wells
Fargo Bank, National Association, as Indenture Trustee.

          “Initial Purchaser” means Greenwich Capital Financial Products, Inc.

1

 

          “Lien” means, with respect to any asset, (a) any mortgage, lien, pledge, charge, security
interest, hypothecation, option or encumbrance of any kind in respect of such asset or (b) the
interest of a vendor or lessor under any conditional sale agreement, financing lease or other title
retention agreement relating to such asset.

          “Material Adverse Effect” has the meaning set forth in Section 5.01(a) as to the Depositor and
the meaning set forth in Section 6.01(a) as to the Seller.

          “Receivables Related Collateral” has the meaning set forth in Section 7.01.

          “Relevant UCC” means the Uniform Commercial Code as in effect in any applicable jurisdiction.

          “Repurchase Price” has the meaning set forth in Section 6.02.

          “Required Noteholders” has the meaning set forth in Section 8.06.

          Section 1.02. Other Definitional Provisions.

               (a) All terms defined in this Agreement shall have the meanings defined herein when used in
any certificate or other document made or delivered pursuant hereto unless otherwise defined
therein.

               (b) As used herein and in any certificate or other document made or delivered pursuant hereto
or thereto, accounting terms not defined in Section 1.01, and accounting terms partially defined in
Section 1.01 to the extent not defined, shall have the respective meanings given to them under
generally accepted accounting principles. To the extent that the definitions of accounting terms
herein are inconsistent with the meanings of such terms under generally accepted accounting
principles, the definitions contained herein shall control.

               (c) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement; and Section, subsection, Schedule and Exhibit references contained in this Agreement are
references to Sections, subsections, Schedules and Exhibits in or to this Agreement unless
otherwise specified.

ARTICLE II.

SALE OF RECEIVABLES; CLOSING; ACKNOWLEDGMENT AND CONSENT

          Section 2.01.  Sale of Receivables.

               (a) On the Initial Funding Date, the Seller shall sell and contribute to the Depositor and the
Depositor shall acquire from the Seller, in accordance with the procedures and subject to the terms and conditions set forth herein and in the Indenture, the
Initial Receivables described in the initial Funding Date Report attached as Exhibit A

2

 

hereto. On each subsequent Funding Date during the Funding Period, the Seller shall sell and/or
contribute to the Depositor and the Depositor shall acquire from the Seller, in accordance with the
procedures and subject to the terms and conditions set forth herein and in the Indenture,
Additional Receivables representing the contractual rights to be reimbursed for all of the Advances
and Servicing Advances with respect to the Securitization Trusts made prior to such Funding Date
not previously sold and contributed to the Depositor. On the Initial Funding Date, the Depositor
shall sell and/or contribute to the Issuer and the Issuer shall acquire from the Depositor, in
accordance with the procedures and subject to the terms and conditions set forth herein and in the
Indenture, the Initial Receivables described in the initial Funding Date Report attached as Exhibit
A hereto, representing the contractual rights to be reimbursed for the applicable Advances and
Servicing Advances with respect to the Securitization Trusts made prior to the Initial Funding
Date. On each subsequent Funding Date during the Funding Period, the Depositor shall sell and/or
contribute to the Issuer and the Issuer shall acquire from the Depositor, in accordance with the
procedures and subject to the terms and conditions set forth herein and in the Indenture, the
Additional Receivables acquired by the Depositor on such Funding Date. Subject to the satisfaction
of the Funding Conditions on each Funding Date, the Issuer shall pay to the Depositor and the
Depositor shall pay to the Seller the Cash Purchase Price in respect of the Initial Receivables or
Additional Receivables sold and/or contributed on the Initial Funding Date or such subsequent
Funding Date, as applicable, in accordance with Section 7.01 of the Indenture. The excess of (i)
the aggregate amount of the Initial Receivables or Additional Receivables sold and/or contributed
on the Initial Funding Date or any subsequent Funding Date over (ii) the Cash Purchase Price with
respect to such Initial Receivables or Additional Receivables sold and/or contributed on the
Initial Funding Date or such subsequent Funding Date shall be a capital contribution by the Seller
to the Depositor and by the Depositor to the Issuer (the “Contribution”). The Aggregate Receivables
at any time of determination shall consist of the Initial Receivables and the Additional
Receivables sold and/or contributed to the Issuer prior to such time of determination.

               (b) In consideration of the sale and/or contribution of the Initial Receivables by the Seller,
on the Initial Funding Date, the Depositor shall, subject to the terms and conditions hereof and of
the Indenture, pay to the Seller the Cash Purchase Price with respect to the Initial Receivables.
In consideration of the sale of the Additional Receivables by the Seller, on each Funding Date
during the Funding Period, the Depositor shall, in accordance with the procedures set forth herein
and in the Indenture and subject to the satisfaction of the Funding Conditions, pay to the Seller
the aggregate Cash Purchase Price with respect to the Additional Receivables sold and/or
contributed by the Seller to the Depositor on such Funding Date, to the extent of funds available
therefor on such Funding Date. In consideration of the sale and/or contribution of the Initial
Receivables by the Depositor, on the Initial Funding Date, the Issuer shall, subject to the terms
and conditions hereof and of the Indenture, pay to the Depositor the Cash Purchase Price with
respect to the Initial Receivables and deliver to the Depositor the Trust Certificates. In consideration of the sale of the Additional Receivables by the
Depositor, on each Funding Date during the Funding Period, the Issuer shall, in accordance with the
procedures set forth herein and in the Indenture and subject to the satisfaction of the Funding
Conditions, pay to the Depositor the aggregate Cash Purchase

3

 

Price with respect to the Additional Receivables sold and/or contributed by the Depositor to the
Issuer on such Funding Date, to the extent of funds available therefor on such Funding Date.

               (c) On the Initial Funding Date, the Seller shall deliver to the Depositor and the Depositor
shall deliver to the Issuer, with copies to the Agent and the Indenture Trustee, the Funding Notice
and a bill of sale, in substantially the forms annexed as Exhibits B and C hereto, respectively,
for the Initial Receivables. On each Funding Date, the Seller shall deliver to the Depositor and
the Depositor shall deliver to the Issuer, with copies to the Agent and the Indenture Trustee, the
Funding Notice and a bill of sale, in substantially the forms annexed as Exhibits B and C hereto,
respectively, with respect to the Additional Receivables to be sold and/or contributed on such
Funding Date.

          Section 2.02.
Closing. The closing (the “Closing”) of the execution of this Agreement, upon
and concurrent with the closing under the Note Purchase Agreement, shall take place at 2:00 PM at
the offices of Thacher Proffitt & Wood LLP, 2 World Financial Center, New York, New York 10281 on
October 1, 2007, or if the conditions precedent to closing set forth in Article III of this
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 (the date of the Closing being referred to
herein as the “Closing Date”).

          Section 2.03. Seller’s Acknowledgment and Consent to Assignment. Seller hereby acknowledges
that the Depositor has assigned to the Issuer and the Issuer has Granted to the Indenture Trustee,
on behalf of the Secured Parties, the rights of the Depositor and the Issuer as purchasers under
this Agreement, including, without limitation, the right to enforce the obligations of the Seller
hereunder. The Seller hereby consents to such assignment by the Depositor and Grant in the
Indenture by the Issuer to the Indenture Trustee, on behalf of the Secured Parties, and, agrees to
remit the Repurchase Price in respect of any repurchased Receivable directly to the Reimbursement
Account as provided for in Section 6.02 hereof. The Seller acknowledges that the Indenture Trustee,
on behalf of the Secured Parties, shall be a third party beneficiary in respect of the
representations, warranties, covenants, rights and benefits arising hereunder that are so Granted
by the Issuer. The Seller hereby authorizes the Issuer and the Indenture Trustee, as the Issuer’s
assignee, on behalf of the Seller, to execute and deliver such documents or certificates as may be
necessary in order to enforce its rights to or collect under the Receivables. The Seller hereby
agrees to be bound by and perform all of the covenants and obligations of the Seller and the
Servicer set forth in the Indenture.

4

 

ARTICLE III.

CONDITIONS PRECEDENT TO CLOSING

          Section 3.01. Closing Subject to Conditions Precedent. The Closing is subject to the
satisfaction at the time of the Closing of the following conditions (any or all of which may be
waived by the Agent in its sole discretion):

               (a) Performance by the Seller and the Depositor. All the terms, covenants, agreements and
conditions of the Transaction Documents to be complied with and performed by the Seller and the
Depositor on or before the Closing Date shall have been complied with and performed in all material
respects.

               (b) Representations and Warranties. Each of the representations and warranties of the Seller
and the Depositor made in the Transaction Documents shall be true and correct in all material
respects as of the Initial Funding Date (except to the extent they expressly relate to an earlier
or later time).

               (c) Officer’s Certificate. The Agent and the Indenture Trustee shall have received in form and
substance reasonably satisfactory to the Agent and its counsel an Officer’s Certificate from the
Seller and the Depositor, dated the Closing Date, certifying to the satisfaction of the conditions
set forth in the preceding paragraphs (a) and (b).

               (d) Opinions of Counsel to the Seller, the Depositor and the Servicer. Counsel to the Seller,
the Depositor and the Servicer shall have delivered to the Agent and the Indenture Trustee
favorable opinions as to matters described in Section 4.01 of the Note Purchase Agreement, dated as
of the Closing Date and reasonably satisfactory in form and substance to the Agent and its counsel.

               (e) Filings and Recordations. The Agent and the Indenture Trustee shall have received evidence
reasonably satisfactory to the Agent of (i) the completion of all recordings, registrations and
filings as may be necessary or, in the reasonable opinion of the Agent, desirable to perfect or
evidence the assignment by the Seller to the Depositor of the Seller’s ownership interest in the
Aggregate Receivables and the proceeds thereof and the assignment by the Depositor to the Issuer of
the Depositor’s ownership interest in the Aggregate Receivables and the proceeds thereof and (ii)
the completion of all recordings, registrations, and filings as may be necessary or, in the
reasonable opinion of the Agent, desirable to perfect or evidence the Grant of a first priority
perfected security interest in the Issuer’s ownership interest in the Trust Estate, in favor of the
Indenture Trustee, subject to no Liens prior to the Lien created by the Indenture.

               (f) Documents. The Agent and the Indenture Trustee shall have received a duly executed
counterpart of this Agreement (in a form acceptable to the Agent), each of the other Transaction Documents and each and every document or certification
delivered by the Seller and the Depositor in connection with this Agreement

5

 

or any other Transaction Document, and each such document shall be in full force and effect.

               (g) Actions or Proceedings. No action, suit, proceeding or investigation by or before any
Governmental Authority shall have been instituted to restrain or prohibit the consummation of, or
to invalidate, any of the transactions contemplated by the Transaction Documents and the documents
related thereto in any material respect.

               (h) Approvals and Consents. All Governmental Actions of all Governmental Authorities required
to consummate the transactions contemplated by the Transaction Documents and the documents related
thereto shall have been obtained or made.

               (i) Fees and Expenses. The fees and expenses payable by the Seller pursuant to Section 9.02
hereof shall have been paid.

               (j) Other Documents. The Seller and the Depositor shall have furnished to the Agent and the
Indenture Trustee such other opinions, information, certificates and documents as the Agent may
reasonably request.

               (k) Verification Agent. The Seller shall have engaged the Verification Agent pursuant to the
Verification Agent Letter.

          If any condition specified in this Section 3.01 shall not have been fulfilled when and as
required to be fulfilled, this Agreement may be terminated by the Issuer by notice to the Depositor
and by the Depositor by notice to the Seller at any time at or prior to the Closing Date, and the
Issuer or Depositor, as applicable, shall incur no liability as a result of such termination.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES OF THE ISSUER

          Section 4.01. Representations and Warranties. The Issuer hereby makes the following
representations and warranties on which the Seller and the Depositor are relying in executing this
Agreement and selling the Aggregate Receivables:

               (a) Organization. The Issuer is a statutory trust duly formed and validly existing in good
standing under the laws of the State of Delaware and is duly qualified to do business and is in
good standing in each jurisdiction in which such qualification is necessary.

               (b) Power and Authority. The Issuer has all requisite trust power and authority and has all
material governmental licenses, authorizations, consents and approvals necessary to own its assets
and carry on its business as now being conducted and to execute and deliver and perform its
obligations under this Agreement.

6

 

               (c) Authorization of Transaction. All appropriate and necessary action has been taken by the
Issuer to authorize the execution and delivery of this Agreement and all other Transaction
Documents to which it is a party, and to authorize the performance and observance of the terms
hereof and thereof.

               (d) Agreement Binding. This Agreement and each of the other Transaction Documents to which
the Issuer is a party constitute the legal, valid and binding obligation of the Issuer enforceable
in accordance with their terms except as may be limited by laws governing insolvency or creditors’
rights or by rules of equity. The execution, delivery and performance by the Issuer of this
Agreement and the other Transaction Documents to which the Issuer is a party will not violate any
provision of law, regulation, order or other governmental directive, or conflict with, constitute a
default under, or result in the breach of any provision of any material agreement, ordinance,
decree, bond, indenture, order or judgment to which the Issuer is a party or by which it or its
properties is or are bound.

               (e) Consents. All licenses, consents and approvals required from and all registrations and
filings required to be made by the Issuer with any governmental or other public body or authority
for the making and performance by the Issuer of this Agreement and the other Transaction Documents
to which it is a party have been obtained and are in effect.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR

          Section 5.01. Representations and Warranties. The Depositor hereby makes the following
representations and warranties on which the Issuer and the Seller are relying in executing this
Agreement. The representations are made as of the execution and delivery of this Agreement, and as
of each date of conveyance of any Additional Receivables. Such representations and warranties shall
survive the sale and/or contribution of any Aggregate Receivables to the Depositor and are as
follows:

               (a) Organization. The Depositor is a corporation duly formed and validly existing in good
standing under the laws of the State of Delaware and is duly qualified to do business and is in
good standing in each jurisdiction in which such qualification is necessary, except where the
failure to be so qualified or in good standing would not reasonably be expected to have a material
adverse effect on (i) the business, operations or financial condition of (A) the Depositor or (B)
the Depositor and its Affiliates taken as a whole or (ii) the validity or enforceability of this
Agreement or any of the other Transaction Documents or the rights or remedies of the Seller, the
Issuer or the Indenture Trustee hereunder or thereunder or (iii) the ability of the Depositor to perform
its obligations under this Agreement or (iv) the enforceability or recoverability of any of the
Aggregate Receivables (a “Material Adverse Effect”).

               (b) Power and Authority. The Depositor has all requisite power and authority and has all
material governmental licenses, authorizations, consents and

7

 

approvals necessary to own its assets and carry on its business as now being conducted and to
execute and deliver and perform its obligations under this Agreement and any other Transaction
Document to which it is a party and, except to the extent not necessary in order to execute and
deliver and perform its obligations under this Agreement and any other Transaction Document to
which it is a party, to own its assets and carry on its business as now being conducted.

               (c) Authorization of Transaction. All appropriate and necessary action has been taken by the
Depositor to authorize the execution and delivery of this Agreement and all other Transaction
Documents to which it is a party, and to authorize the performance and observance of the terms
hereof and thereof.

               (d) Agreement Binding. This Agreement and each of the other Transaction Documents to which
the Depositor is a party constitute the legal, valid and binding obligation of the Depositor,
enforceable in accordance with their terms except as may be limited by laws governing insolvency or
creditors’ rights or by rules of equity. The execution, delivery and performance by the Depositor
of this Agreement and the other Transaction Documents to which the Depositor is a party will not
violate any provision of law, regulation, order or other governmental directive, or conflict with,
constitute a default under, or result in the breach of any provision of any material agreement,
ordinance, decree, bond, indenture, order or judgment to which the Depositor is a party or by which
it or its properties is or are bound.

               (e) Compliance with Law. The Depositor is conducting its business and operations in compliance
with all applicable laws, regulations, ordinances and directives of governmental authorities,
except where the failure to comply would not reasonably be expected to have a Material Adverse
Effect. The Depositor has filed all tax returns required to be filed and has paid all taxes in
respect of the ownership of its assets or the conduct of its operations prior to the date after
which penalties attach for failure to pay, except to the extent that the payment or amount of such
taxes is being contested in good faith by it in appropriate proceedings and adequate reserves have
been provided for the payment thereof.

               (f) Consents. All licenses, consents and approvals required from and all registrations and
filings required to be made by the Depositor with any governmental or other public body or
authority for the making and performance by the Depositor of this Agreement and the other
Transaction Documents to which it is a party have been obtained and are in effect.

               (g) Litigation. There is no action, suit or proceeding at law or in equity by or before any
court, governmental agency or authority or arbitral tribunal now pending or, to the knowledge of
the Depositor, threatened against or affecting it which have a reasonable possibility of being
determined adversely in a manner or amount that would have a Material Adverse Effect.

               (h) Other Obligations. The Depositor is not in default in the performance, observance or
fulfillment of any obligation, covenant or condition in any

8

 

agreement or instrument to which it is a party or by which it is bound the result of which should
reasonably be expected to have a Material Adverse Effect.

               (i) 1940 Act. The Depositor is not an “investment company” or a company “controlled” by an
investment company within the meaning of the 1940 Act.

               (j) Solvency. The Depositor, both prior to and after giving effect to each sale and/or
contribution of Aggregate Receivables on the Initial Funding Date or on any Funding Date thereafter
(i) is not, and will not be, “insolvent” (as such term is defined in § 101(32)(A) of the Bankruptcy
Code), (ii) is, and will be, able to pay its debts as they become due, and (iii) does not have
unreasonably small capital for the transaction contemplated in the Transaction Documents.

               (k) Full Disclosure. No document, certificate or report furnished by or on behalf of the
Depositor, in writing, pursuant to this Agreement, any other Transaction Document or in connection
with the transactions contemplated hereby or thereby contains or will contain when furnished any
untrue statement of a material fact. There are no facts relating to and known by the Depositor,
which when taken as a whole, materially adversely affect the financial condition or assets or
business of the Depositor, or which should reasonably be expected to impair the ability of the
Depositor to perform its obligations under this Agreement or any other Transaction Document, which
have not been disclosed herein or in the certificates and other documents furnished by or on behalf
of the Depositor pursuant hereto or thereto. All books, records and documents delivered in
connection with the Transaction Documents are and will be true, correct and complete.

               (l) ERISA. All Plans maintained by the Depositor or any of its Affiliates are in substantial
compliance with all applicable laws (including ERISA).

               (m) Fair Consideration. The Seller is receiving fair consideration and reasonably equivalent
value in exchange for the sale and/or contribution of the Aggregate Receivables under this
Agreement.

               (n) Bulk Transfers. No sale, contribution, transfer, assignment or conveyance of Aggregate
Receivables by the Depositor to the Issuer contemplated by this Agreement will be subject to the
bulk transfer or any similar statutory provisions in effect in any applicable jurisdiction.

               (o) Name. The legal name of the Depositor is as set forth in this Agreement and the Depositor
does not have any trade names, fictitious names, assumed names or “doing business” names.

ARTICLE VI.

REPRESENTATIONS AND WARRANTIES OF THE SELLER

          Section 6.01. Representations and Warranties. The Seller hereby makes the following
representations and warranties on which the Depositor and the Issuer are relying in accepting the
Aggregate Receivables and executing this Agreement. The

9

 

representations are made as of the execution and delivery of this Agreement, and as of each date of
conveyance of any Additional Receivables. Such representations and warranties shall survive the
sale and/or contribution of any Aggregate Receivables to the Depositor and are as follows:

               (a) Organization. The Seller is a corporation duly formed and validly existing in good
standing under the laws of the state of California and is duly qualified to do business and is in
good standing in each jurisdiction in which such qualification is necessary, except where the
failure to be so qualified or in good standing would not reasonably be expected to have a material
adverse effect on (i) the business, operations or financial condition of (A) the Seller or (B) the
Seller and its Affiliates taken as a whole or (ii) the validity or enforceability of this Agreement
or any of the other Transaction Documents or the rights or remedies of the Depositor, the Issuer or
the Indenture Trustee hereunder or thereunder or (iii) the ability of the Seller to perform its
obligations under this Agreement or (iv) the enforceability or recoverability of any of the
Aggregate Receivables (a “Material Adverse Effect”).

               (b) Power and Authority. The Seller has all requisite corporate power and authority and has
all material governmental licenses, authorizations, consents and approvals necessary to execute and
deliver and perform its obligations under this Agreement and any other Transaction Document to
which it is a party and, except to the extent not necessary in order to execute and deliver and
perform its obligations under this Agreement and any other Transaction Document to which it is a
party, to own its assets and carry on its business as now being conducted.

               (c) Authorization of Transaction. All appropriate and necessary action has been taken by the
Seller to authorize the execution and delivery of this Agreement and all other Transaction
Documents to which it is a party, and to authorize the performance and observance of the terms
hereof and thereof.

               (d) Agreement Binding. This Agreement and each of the other Transaction Documents to which
the Seller is a party constitute the legal, valid and binding obligation of the Seller enforceable
in accordance with their terms except as may be limited by laws governing insolvency or creditors’
rights or by rules of equity. The execution, delivery and performance by the Seller of this
Agreement and the other Transaction Documents to which the Seller is a party will not violate any provision of law,
regulation, order or other governmental directive, or conflict with, constitute a default under, or
result in the breach of any provision of any agreement, ordinance, decree, bond, indenture, order
or judgment to which the Seller is a party or by which it or its properties is or are bound.

               (e) Compliance with Law. The Seller is conducting its business and operations in compliance
with all applicable laws, regulations, ordinances and directives of governmental authorities,
except where the failure to comply would not reasonably be expected to have a Material Adverse
Effect. The Seller has filed all tax returns required to be filed and has paid all taxes in respect
of the ownership of its assets or the conduct of its operations prior to the date after which
penalties attach for failure to pay, except to the

10

 

extent that the payment or amount of such taxes is being contested in good faith by it in
appropriate proceedings and adequate reserves have been provided for the payment thereof.

               (f) Consents. All licenses, consents and approvals required from and all registrations and
filings required to be made by the Seller with any governmental or other public body or authority
for the making and performance by the Seller of this Agreement and the other Transaction Documents
to which it is a party have been obtained and are in effect.

               (g) Litigation. There is no action, suit or proceeding at law or in equity by or before any
court, governmental agency or authority or arbitral tribunal now pending or, to the knowledge of
the Seller, threatened against or affecting it which have a reasonable possibility of being
determined adversely in a manner or amount that would reasonably be expected to have a Material
Adverse Effect.

               (h) Other Obligations. The Seller is not in default in the performance, observance or
fulfillment of any obligation, covenant or condition in any agreement or instrument to which it is
a party or by which it is bound the result of which should reasonably be expected to have a
Material Adverse Effect.

               (i) 1940 Act. The Seller is not an “investment company” or a company “controlled” by an
investment company within the meaning of the 1940 Act.

               (j) Solvency. The Seller, both prior to and after giving effect to each sale and/or
contribution of Aggregate Receivables on the Initial Funding Date or on any Funding Date thereafter
(i) is not, and will not be, “insolvent” (as such term is defined in § 101(32)(A) of the Bankruptcy
Code), (ii) is, and will be, able to pay its debts as they become due, and (iii) does not have
unreasonably small capital for the business in which it is engaged or for any business or
transaction in which it is about to engage.

               (k) Full Disclosure. No document, certificate or report furnished by or on behalf of the
Seller or the Servicer, in writing, pursuant to this Agreement, any other Transaction Document or
in connection with the transactions contemplated hereby or thereby contains or will contain when
furnished any untrue statement of a material fact. There are no facts relating to and known by the Seller, which when taken as a whole,
materially adversely affect the financial condition or assets or business of the Seller or the
Servicer, or which should reasonably be expected to impair the ability of the Seller or the
Servicer to perform its obligations under this Agreement or any other Transaction Document or
Pooling and Servicing Agreement, which have not been disclosed herein or in the certificates and
other documents furnished by or on behalf of the Seller or the Servicer pursuant hereto or thereto.
All books, records and documents delivered in connection with the Transaction Documents are and
will be true, correct and complete.

               (l) ERISA. All Plans maintained by the Seller or any of its Affiliates are in substantial
compliance with all applicable laws (including ERISA).

11

 

               (m) Fair Consideration. The Seller is receiving fair consideration and reasonably equivalent
value in exchange for the sale and/or contribution of the Aggregate Receivables to the Depositor
under this Agreement.

               (n) Bulk Transfers. No sale, contribution, transfer, assignment or conveyance of Aggregate
Receivables by the Seller to the Depositor contemplated by this Agreement will be subject to the
bulk transfer or any similar statutory provisions in effect in any applicable jurisdiction.

               (o) Name. The legal name of the Seller is as set forth in this Agreement and the Seller does
not have any trade names, fictitious names, assumed names or “doing business” names.

               (p) Repayment of Receivables. The Seller has no reason to believe that at the time of the sale
and/or contribution of any Receivables to the Depositor pursuant hereto, such Receivables will not
be paid in full.

               (q) Reimbursement Amounts. The Seller has not waived or forgiven any obligation of a Mortgagor
to repay any Advance or Servicing Advance.

               (r) Aggregate Receivables.

	 	(i)	 	Each Initial Receivable and Additional Receivable is payable in United
States dollars and has been created pursuant to and in accordance with the
terms of the related Pooling Agreement, in accordance with the Seller’s
customary procedures with respect to the applicable Securitization Trust
and in the ordinary course of business of the Seller.
	 
	 	(ii)	 	The sale and/or contribution to the Depositor and the Issuer of the
rights to reimbursement for the Advances and Servicing Advances under each
Securitization Trust, and the assignment and Grant thereof to the Trust
Estate, does not violate the terms of the related Pooling and Servicing
Agreement or any other document or agreements to which the Seller is a party or to which its assets or
properties are subject.
	 
	 	(iii)	 	No Receivable has been sold, transferred, assigned or pledged by the
Seller to any Person other than the Depositor. Immediately prior to the
transfer and assignment herein contemplated, the Seller was the sole
obligor with respect to each such Receivable, and had the right to
transfer and sell such Receivable, free and clear of all Liens and rights
of others; immediately upon the transfer and assignment thereof, the
Issuer shall own all of such interest in and to such Receivable, free and
clear of all Liens and

12

 

	 	 	 	rights of others (other than the Lien created by the Indenture).
	 
	 	(iv)	 	As of the date of conveyance thereof, the Seller has not taken any
action that, or failed to take any action the omission of which, would
materially impair the rights of the Depositor, the Issuer, the Indenture
Trustee (or any Secured Party) with respect to any such Receivable.
	 
	 	(v)	 	As of the date of conveyance thereof, no such Receivable has been
identified by the Seller or reported to the Seller as having resulted from
fraud perpetrated by any Person with respect to the related account.
	 
	 	(vi)	 	All filings (including UCC filings) necessary in any jurisdiction to
perfect the transfers and assignments herein contemplated, and solely in
the event the transfer contemplated hereby were to be recharacterized as a
pledge rather than an absolute sale, to perfect the Depositor’s security
interest in the Aggregate Receivables that is prior to any other interest
held or to be held by any other Person (except the Indenture Trustee on
behalf of the Secured Parties) have been made.
	 
	 	(vii)	 	No Receivable is secured by “real property” or “fixtures” or
evidenced by an “instrument” as such quoted terms are used for purposes of
creating and perfecting a security interest under the Relevant UCC.
	 
	 	(viii)	 	Each such Receivable is the legal, valid and binding obligation of
the related Securitization Trust and is enforceable in accordance with its
terms. There is no valid and enforceable offset, defense or counterclaim
to the obligation of the related Securitization Trust to make payment of
any such Receivable.
	 
	 	(ix)	 	Each such Receivable is entitled to be paid, has not been repaid in
whole or been compromised, adjusted (except by partial payment), extended,
satisfied, subordinated, rescinded, amended or modified, and is not
subject to compromise, adjustment, extension, satisfaction, subordination,
rescission, set-off, counterclaim, defense, amendment or modification by
the Seller.
	 
	 	(x)	 	As of the date of conveyance thereof, such Receivables do not include
amounts payable as a result of accounting or

13

 

	 	 	 	other errors, or the failure to deposit funds or the
misapplication of funds by the Servicer.
	 
	 	(xi)	 	As of the date of conveyance thereof, no such Receivable has been
identified by the Seller as a Nonrecoverable Advance (as defined in the
Pooling and Servicing Agreements) for which reimbursement has not been
sought from the Securitization Trust in accordance with the related
Pooling and Servicing Agreement.
	 
	 	(xii)	 	The Initial Receivables represent all of the rights to be reimbursed
for all Advances and/or Servicing Advances with respect to the
Securitization Trusts as of the Initial Funding Date. The Seller has not
sold, assigned, transferred or conveyed, without the Agent’s consent, any
Advance or Servicing Advance with respect to the Securitization Trusts to
any Person other than the Depositor. The Additional Receivables conveyed
on any Funding Date constitute all of the Advances and/or Servicing
Advances with respect to the Securitization Trusts not previously
sold and contributed to the Depositor hereunder, except for
Receivables repurchased by the Seller pursuant to Section 6.02.
	 
	 	(xiii)	 	If such Advance or Servicing Advance becomes a Nonrecoverable
Advance after the related Transfer Date, the related Pooling and Servicing
Agreement provides for the reimbursement of such advance from the general
collections of the Securitization Trust prior to any payments to related
Securitization Trust certificateholders.
	 
	 	(xiv)	 	Each Pooling and Servicing Agreement is in full force and effect
and, other than as set forth in Schedule II, has not been amended or
modified, and no party thereto, to the knowledge of the Seller, is in
default thereunder..
	 
	 	(xv)	 	No Receivable is an obligation of a Securitization Trust for which a
Securitization Termination Event has occurred and is continuing.
	 
	 	(xvi)	 	The principal amount of any Additional Receivable relating to a
Servicing Advance or Loan-Level Advance, when added to the aggregate
outstanding principal amount of all Receivables relating to Servicing
Advances and Loan-Level Advances under the related Securitization Trust,
does not cause the weighted average months outstanding with respect to all
such Receivables to exceed 16 months.

14

 

	 	(xvii)	 	The principal amount of any Additional Receivable, when added to
the aggregate outstanding principal amount of all Receivables under the
related Securitization Trust, does not cause the aggregate outstanding
principal amount of all such Receivables to exceed 15% of the aggregate
outstanding principal amount of all Receivables.
	 
	 	(xviii)	 	If a Receivable relating to a Servicing Advance relates to a
Mortgage Loan secured by a second or more junior lien on the related
mortgaged property, the outstanding principal amount of that Receivable,
when added to the aggregate outstanding principal amount of all
Receivables relating to Servicing Advances that relate to Mortgage Loans
secured by second or more junior lien on the respective mortgaged
properties, does not cause the aggregate principal amount of all
Receivables relating to Servicing Advances secured by second or more
junior liens on mortgaged properties to exceed 5% of the aggregate
principal amount of all Receivables relating to Servicing Advances.

          Section 6.02. Repurchase Upon Breach. The Issuer, the Depositor, the Indenture Trustee or the
Seller, as the case may be, shall inform the Issuer, the Depositor or the Seller (as applicable),
the Agent and the Indenture Trustee promptly (but in no event later than two (2) Business Days
following such discovery), in writing, upon the discovery of any breach of the Seller’s or
Depositor’s representations and warranties hereunder. If any such representation or warranty
pertains to a Receivable (including the representations under Sections 5.01(a)(iv) and
6.01(a)(iv)), unless such breach shall have been cured or waived within thirty (30) days after the
earlier to occur of the discovery of such breach by the Issuer, the Depositor or the Seller (as
applicable) or receipt of written notice of such breach by the Issuer, the Depositor, the Agent,
the Indenture Trustee or the Seller (as applicable), the Seller or the Depositor, as applicable,
shall repurchase such Receivable from the Issuer at a price equal to the outstanding Receivable
Balance of such Receivable as of the date of repurchase (the
“Repurchase Price”). The Seller or
the Depositor, as applicable, shall pay any Repurchase Price directly to the Indenture Trustee for
deposit into the Reimbursement Account.

ARTICLE VII.

INTENTION OF THE PARTIES; SECURITY INTEREST

          Section 7.01. Intention of the Parties. It is the intention of the parties hereto that each
transfer and assignment contemplated by this Agreement shall constitute an absolute sale or
contribution, or a combination thereof, of the related Receivables from the Seller to the Depositor
and from the Depositor to the Issuer and that the related Receivables shall not be part of the
Seller’s or the Depositor’s estate or otherwise be considered property of the Seller or the
Depositor in the event of the bankruptcy, receivership, insolvency, liquidation, conservatorship or
similar proceeding relating to the Seller or the Depositor or any of their property. Except as set
forth below, it is not

15

 

intended that any amounts available for reimbursement of Receivables be deemed to have been pledged
by the Seller to the Depositor or by the Depositor to the Issuer or the Indenture Trustee to secure
a debt or other obligation of the Seller or the Depositor. In the event that (A) the purchase of
Receivables by the Depositor or the Issuer is deemed by a court or applicable regulatory,
administrative or other governmental body contrary to the express intent of the parties to
constitute a pledge rather than a sale or contribution, or a combination thereof, of the
Receivables, or (B) if amounts available now or in the future for reimbursement of any Receivables
are held to be property of the Seller or the Depositor or a loan to the Seller or the Depositor, or
(C) if for any reason this Agreement is held or deemed to be a financing or some other similar
arrangement or agreement, then: (i) this Agreement is and shall be a security agreement within the
meaning of Articles 8 and 9 of the Relevant UCC; (ii) the Issuer shall be treated as having a first
priority, perfected security interest in and to, and lien on, the Receivables transferred and
assigned to the Issuer hereunder; (iii) the agreement of the Seller and the Depositor hereunder to
sell, assign, convey and transfer the Receivables shall be a grant by the Seller to the Depositor
of a security interest in all of the Seller’s property and right (including the power to convey
title thereto), title, and interest, whether now owned or hereafter acquired (“Receivables Related
Collateral ”) and shall be a grant by the Depositor to the Issuer of a security interest in all of
the Depositor’s property and right (including the power to convey title thereto), title, and
interest, whether now owned or hereafter acquired, in and to (A) all amounts payable now or in the
future by or with respect to the Receivables and (B) any and all general intangibles consisting of,
arising from or relating to any of the foregoing, and all proceeds of the conversion, voluntary or
involuntary, of the foregoing into cash, instruments, securities or other property, including
without limitation all such amounts from time to time held or invested in accounts maintained by or
on behalf of the Seller, by or on behalf of the Securitization Trusts or by the Depositor, whether
in the form of cash, instruments, securities or other property. The possession by the Issuer or its
agent of notes and such other goods, money, documents or such other items of property as constitute
instruments, money, negotiable documents or chattel paper, in each case, which constitute any of
the items described in the foregoing sentence, or proceeds thereof, shall be “possession by the
secured party,” or possession by a purchaser or a person designated by such secured party, for
purposes of perfecting the security interest pursuant to the Relevant UCC of any applicable jurisdiction; and notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be notifications to, or acknowledgments,
receipts or confirmations from, financial intermediaries, bailees or agents (as applicable) of any
such holder for the purpose of perfecting such security interest under applicable law.

          Section 7.02. Security Interest.

               (a) The Seller shall, to the extent consistent with this Agreement, take such actions as may
be necessary to ensure that, if this Agreement were deemed to create a security interest in (i) any
of the Aggregate Receivables, (ii) the amounts reimbursable now or in the future by or with respect
to the Securitization Trusts in respect of any of the Aggregate Receivables or (iii) the other
property described above, such security interest would be a perfected security interest of first
priority under

16

 

applicable law and will be maintained as such throughout the term of this Agreement. The Seller
shall execute such documents and instruments as the Depositor may reasonably request from time to
time in order to effectuate the foregoing and shall return to the Depositor the executed copy of
such documents and instruments. Without limiting the generality of the foregoing, the Depositor
shall forward for filing, or shall cause to be forwarded for filing, at the expense of the Seller,
all filings necessary to maintain the effectiveness of any original filings necessary under the
Relevant UCC to perfect the Depositor’s security interest described above, including without
limitation (x) UCC continuation statements, and (y) such other statements as may be occasioned by
(1) any change of name of the Seller or the Depositor (such preparation and filing shall be at the
expense of the Depositor, if occasioned by a change in such party’s name) or (2) any change of
location of the jurisdiction of organization of the Seller.

          (b) The Depositor shall, to the extent consistent with this Agreement, take such actions as
may be necessary to ensure that, if this Agreement were deemed to create a security interest in (i)
any of the Aggregate Receivables, (ii) the amounts reimbursable now or in the future by or with
respect to the Securitization Trusts in respect of any of the Aggregate Receivables or (iii) the
other property described above, such security interest would be a perfected security interest of
first priority under applicable law and will be maintained as such throughout the term of this
Agreement. At the Issuer’s direction, the Depositor shall execute such documents and instruments as
the Issuer may reasonably request from time to time in order to effectuate the foregoing and shall
return to the Issuer the executed copy of such documents and instruments. Without limiting the
generality of the foregoing, the Issuer shall forward for filing, or shall cause to be forwarded
for filing, at the expense of the Depositor, all filings necessary to maintain the effectiveness of
any original filings necessary under the Relevant UCC to perfect the Issuer’s security interest
described above, including without limitation (x) UCC continuation statements and (y) such other
statements as may be occasioned by (1) any change of name of the Depositor or the Issuer (such
preparation and filing shall be at the expense of the Issuer, if occasioned by a change in such
party’s name) or (2) any change in the jurisdiction of organization of the Depositor.

ARTICLE VIII.

COVENANTS OF THE SELLER

          Section 8.01. Information. The Seller shall furnish to the Depositor, the Issuer, the
Indenture Trustee, the Agent and the Secured Parties:

               (a) such information (including financial information), documents, records or reports with
respect to the Aggregate Receivables, the Securitization Trusts, the Seller, the Servicer as the
Issuer, the Depositor, the Indenture Trustee, the Agent, the Initial Purchaser or the Secured
Parties may from time to time reasonably request;

               (b) prompt notice of any Event of Default under the Indenture, or any event known to the
Seller which, with the passage of time or the giving of notice or both, would become an Event of
Default under the Indenture;

17

 

               (c) prompt written notice of a change in name, or address of the jurisdiction of organization
of the Seller;

               (d) prompt notice of the occurrence of any event of default by the Servicer under any Pooling
and Servicing Agreement without regard to whether such event of default has been cured;

               (e) the information and reports required pursuant to Section 6.02 of the Indenture;

               (f) prompt notice of any “Conversion Event” (as such term or term of substantially similar
import is defined in the applicable Pooling and Servicing Agreement); and

               (g) a Schedule I Report and Schedule II Report, in the form of Exhibits D and E, respectively,
attached hereto, monthly to the Agent.

          Section 8.02. Acknowledgment. The Seller shall seek acknowledgment from the Trustee of each
Securitization Trust that the Seller intends to enter into an “Advance Facility” (as such term is
defined in each Pooling and Servicing Agreement), whereby the Seller will sell and assign the
Receivables to the Depositor, following which the Depositor will sell to the Issuer, who will
pledge and assign such Receivables to the Indenture Trustee, acting on behalf of the Noteholders,
as an “Advance Financing Person” (as such term or term of substantially similar import is defined
in each Pooling and Servicing Agreement), and that the Transaction Documents shall constitute such
“Advance Facility”.

          Section 8.03. Access to Information. The Seller shall, at any time and from time to time
during regular business hours, or at such other reasonable times upon reasonable notice to the
Seller, permit the Depositor, the Issuer, the Indenture Trustee, the Agent, the Initial Purchaser or the Secured Parties, or their agents or representatives, at
the Seller’s expense (not to exceed $25,000 in any calendar year with regard to any parties for any
calendar year); provided, that no such limit shall apply after an Event of Default, but only so
long as that does not unreasonably interfere with the Seller’s conduct of its business:

               (a) to examine all books, records and documents (including computer tapes and disks) in the
possession or under the control of the Seller relating to the Aggregate Receivables or the
Transaction Documents as may be requested;

               (b) to visit the offices and property of the Seller for the purpose of examining such
materials described in clause (a) above; and

               (c) to conduct verification procedures alongside the Verification Agent, including access to
the appropriate servicing personnel of the Seller.

          Section 8.04. Ownership and Security Interests; Further Assurances. The Seller will take all
action necessary to maintain the Indenture Trustee’s security interest

18

 

in the Receivables and the other items pledged to the Indenture Trustee pursuant to the Indenture.

          The Seller agrees to take any and all acts and to execute any and all further instruments
reasonably necessary or requested by the Depositor, the Issuer, the Indenture Trustee, the Agent,
the Initial Purchaser or the Secured Parties to more fully effect the purposes of this Agreement.

          Section 8.05. Covenants. The Seller shall duly observe and perform each of its covenants set
forth in each of the Transaction Documents to which it is a party. The Seller shall duly observe
and perform all of the covenants and obligations of the Seller and the Servicer set forth in the
Indenture as if the Seller was a party thereto. The Seller in its capacity as Servicer shall duly
observe and perform each of its covenants set forth in each Pooling and Servicing Agreement. The
Seller shall, promptly upon making its determination that an Advance or Servicing Advance is a
Nonrecoverable Advance, seek reimbursement for that advance in accordance with the related Pooling
and Servicing Agreement.

          The Seller hereby covenants that except for the sales and contributions hereunder, the Seller
will not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or
suffer to exist any lien on, any Receivable, or any interest therein; and the Seller will defend
the right, title and interest of the Issuer, as assignee of the Depositor, in, to and under the
Receivables, against all claims of third parties claiming through or under the Seller.

          Section 8.06. Amendments. The Seller shall not make, or permit any Person to make, any
amendment, modification or change to, or provide any waiver under any Transaction Document to which
the Seller is a party without the prior written consent of the Agent and, except as described in Section 8.01 of the Indenture, Noteholders with an
aggregate Note Principal Balance of not less than 66 2/3% of the aggregate Note Principal Balance
of the Outstanding Notes (the “Required Noteholders”).

          Section 8.07. Assignment of Rights. Either (i) while an Event of Default has occurred and is
continuing or (ii) in the absence of an Event of Default but only for the limited purpose of
effecting buybacks for defective receivables, the Seller and the Issuer hereby constitute and
irrevocably appoint the Indenture Trustee, with full power of substitution and revocation, as the
Receivable Seller’s and the Issuer’s true and lawful agent and attorney-in-fact, with the power to
the full extent permitted by law, to exercise with respect to the Receivables conveyed under this
Receivables Purchase Agreement, all the rights, powers and remedies of an owner. The power of
attorney granted pursuant to this Receivables Purchase Agreement and all authority hereby conferred
are granted and conferred solely to protect the Secured Parties’ respective interests in the
Receivables and shall not impose any duty upon the Indenture Trustee to exercise any power. The
Seller and the Issuer shall execute any documentation, including, without limitation, any powers of
attorney and/or irrevocable proxies, requested by the Indenture Trustee to effectuate such
assignment. The foregoing grant and assignment are powers coupled with an interest and are
irrevocable.

19

 

ARTICLE IX.

ADDITIONAL COVENANTS

          Section 9.01. Legal Conditions to Closing. The parties hereto will take all reasonable
action necessary to obtain (and will cooperate with one another in taking such action to obtain)
any consent, authorization, permit, license, franchise, order or approval of, or any exemption by,
any Governmental Authority or any other Person, required to be obtained or made by it in connection
with any of the transactions contemplated by this Agreement.

          Section 9.02. Expenses.

          (a) The Seller covenants that, whether or not the Closing takes place, except as otherwise
expressly provided herein, all reasonable costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the Seller.

          (b) Except as otherwise expressly set forth in the Indenture, the Seller covenants to pay as
and when billed by the Depositor, the Issuer, the Indenture Trustee or the Agent all of the
reasonable out-of-pocket costs and expenses incurred in connection with the consummation and
administration of the transactions contemplated hereby and in the other Transaction Documents,
including, without limitation, all reasonable fees, disbursements and expenses of counsel to the
Depositor, the Issuer, the Agent, the Indenture Trustee and the Secured Parties.

          Section 9.03. Mutual Obligations. On and after the Closing, each party hereto will do,
execute and perform all such other acts, deeds and documents as one or more other parties may from
time to time reasonably require in order to carry out the intent of this Agreement.

          Section 9.04. Reserved. 

          Section 9.05. Servicing Standards. At all times, the Servicer shall, as determined by
the Agent:

          (i) continue to make Advances and Servicing Advances and seek reimbursement, including
reimbursement of Advances and Servicing Advances deemed Nonrecoverable Advances by the Servicer, in
accordance with the related Pooling and Servicing Agreement;

          (ii) apply the Advance Reimbursement Amount on a First In First Out (“FIFO”) basis;

          (iii) identify on its systems the owner of each Advance and Servicing Advance;

          (iv) maintain systems and operating procedures necessary to comply with all the terms of the
Transaction Documents;

20

 

          (v) cooperate with the Verification Agent in its duties set forth in the Transaction
Documents;

          (vi) make all Advances within the period required under the related Pooling and Servicing
Agreement, unless the same is the result of inadvertence and is corrected on or prior to the
related Distribution Date for the applicable Securitization Trust;

          (vii) for all Servicing Advances and Pool-Level Advances, agree to deposit the Advance
Reimbursement Amount into the Reimbursement Account on a daily basis not later than the second
Business Day following receipt thereof and not retain Advance Reimbursement Amount in the
Servicer’s own accounts; and

          (viii) for all Loan-Level Advances, agree to deposit the Advance Reimbursement Amount into the
Collection Account of the related Securitization Trust and not withdraw any Advance Reimbursement
Amount from such Collection Account except for immediate deposit into the Reimbursement Account.

          Section 9.06. Transfer of Servicing. The Seller covenants that it shall not transfer
its rights as Servicer under the Pooling and Servicing Agreement for any Securitization Trust or
cause its rights as Servicer under any such Pooling and Servicing Agreement to be terminated;
provided, however, that the Seller may transfer its rights as Servicer under the Pooling and
Servicing Agreement for any Securitization Trust or cause its rights as Servicer under any such
Pooling and Servicing Agreement to be terminated in the event that upon the occurence of such
transfer or termination the Issuer shall redeem the Notes in accordance with Section 2.16 of the
Indenture or the successor servicer under such Pooling and Servicing Agreement shall cause all
Receivables under such Pooling and Servicing Agreement to be paid in full on or before the
applicable date of transfer. In the event the Seller shall cause its rights as Servicer under any
such Pooling and Servicing Agreement to be transferred or terminated, (x) the Issuer shall have the
option to redeem the Notes, without penalty or premium, in accordance with Section 2.16 of the
Indenture, and (y) with respect to the covenant set forth above, the Seller shall be fully liable
for obligations of the Issuer under the Notes. To evidence its obligations under this Section 9.06,
the Seller shall provide a full recourse guaranty to the Noteholders, secured by a pledge of all of
the Seller’s rights (but none of its obligations) as Servicer under each of the Pooling and
Servicing Agreements; provided, however, that such pledge shall be given only to the extent that
such servicing rights can be so pledged pursuant to the applicable Pooling and Servicing Agreements
without causing the Seller to be in default thereunder. If the Issuer shall redeem the Notes
pursuant to this Section 9.06, the Seller shall, on the fourth Business Day prior to the applicable
Redemption Date, deposit the Note Redemption Amount into the Note Payment Account.

          Section 9.07. Bankruptcy. The Seller shall not take any action in any capacity to
file any bankruptcy, reorganization or insolvency proceedings against the Depositor or the Issuer,
or cause the Depositor or the Issuer to commence any reorganization, bankruptcy or insolvency
proceedings under any applicable state or federal law, including without limitation any
readjustment of debt, or marshaling of

21

 

assets or liabilities or similar proceedings. The Depositor shall not take any action in any
capacity to file any bankruptcy, reorganization or insolvency proceedings against the Issuer, or
cause the Issuer to commence any reorganization, bankruptcy or insolvency proceedings under any
applicable state or federal law, including without limitation any readjustment of debt, or
marshaling of assets or liabilities or similar proceedings. The Seller and the Depositor are not
transferring and will not transfer any of the Receivables with intent to hinder, delay or defraud
any Person.

          Section 9.08. Legal Existence. The Seller and the Depositor shall do or cause to be
done all things necessary on their part to preserve and keep in full force and effect their
existence as corporations, and to maintain each of their licenses, approvals, registrations or
qualifications in all jurisdictions in which their ownership or lease of property or the conduct of
their business requires such licenses, approvals, registrations or qualifications; except for
failures to maintain any such licenses, approvals, registrations or qualifications which,
individually or in the aggregate, would not have a Material Adverse Effect.

          Section 9.09. Compliance With Laws. The Seller and the Depositor shall comply with all
laws, rules and regulations and orders of any governmental authority applicable to the Seller and
the Depositor, except where the failure to comply would not have a Material Adverse Effect.

          Section 9.10. Taxes. The Seller and the Depositor shall pay and discharge all taxes,
assessments and governmental charges or levies imposed upon the Seller and the Depositor, as
applicable, or upon such party’s income and profits, or upon any of such party’s property or any
part thereof, before the same shall become in default; provided, that the Seller and the Depositor
shall not be required to pay and discharge any such tax, assessment, charge or levy so long as the
validity or amount thereof shall be contested in good faith by appropriate proceedings and the
Seller and the Depositor shall have set aside on its books adequate reserves with respect to any
such tax, assessment, charge or levy so contested, or so long as the failure to pay any such tax,
assessment, charge or levy would not, individually or in the aggregate, have a Material Adverse
Effect.

          Section 9.11.
No Liens, Etc. Against Receivables and Trust Property. Each of the
Seller and the Depositor hereby covenants and agrees not to create or suffer to exist (by operation
of law or otherwise) any Lien upon or with respect to any of the Aggregate Receivables or any of
its interest therein, if any, or upon or with respect to any of its interest in any Account, or
assign any right to receive income in respect thereof, except for the Lien created by the
Indenture. Each of the Seller and the Depositor shall immediately notify the Indenture Trustee of
the existence of any Lien on any of the Aggregate Receivables and shall defend the right, title and
interest of each of the Depositor, the Issuer and the Indenture Trustee in, to and under the
Aggregate Receivables, against all claims of third parties.

          Section 9.12. Amendments to Pooling and Servicing Agreements. The Seller, in its
capacity as Servicer under the Pooling and Servicing Agreements with

22

 

respect to the Securitization Trusts, hereby covenants and agrees not to amend or agree to the
amendment of any of the Pooling and Servicing Agreements without the prior written consent of the
Agent and the Required Noteholders.

          Section 9.13. No Netting or Offsetting. The Seller, in its capacity as Servicer,
shall collect and deposit gross collections with respect to the Securitization Trusts into the
related Collection Accounts in accordance with the related Pooling and Servicing Agreements,
without netting, off-set or deduction from such collections or deposits for any purpose, with the
exception of Servicing Compensation due and payable to the Servicer. The Seller shall make all
Advances and Servicing Advances out of its own funds without the utilization of any netting or
offsetting of amounts in any account of the Securitization Trust, except as permitted under the
Pooling and Servicing Agreements with respect to amounts paid ahead by Obligors (or such
substantially similar term as is used in each such Pooling and Servicing Agreement).

          Section 9.14. Books and Records. The Seller shall maintain accounts and records as to
each Receivable accurately and in sufficient detail to permit the reader thereof to know at any
time the status of such Receivable, including payments and recoveries made and payments owing (and
the nature of each, if applicable). The Seller shall maintain its computer records so that, from
and after the time of the granting of the security interest under the Indenture on the Receivables
to the Indenture Trustee, the Seller’s master computer records (including any back-up archives)
that refer to any Receivables indicate clearly the interest of the Issuer in such Receivables and
that the Receivable is owned by the Issuer and pledged to the Indenture Trustee on behalf of the
Secured Parties.

     The Depositor shall maintain (or cause to be maintained) accounts and records as to each
Aggregate Receivable accurately and in sufficient detail to permit the reader thereof to know at
any time the interest of the Issuer in such Receivables and that the Receivable is owned by the
Issuer and pledged to the Indenture Trustee on behalf of the Secured Parties.

          Section 9.15. Verification Agent. Each of the Seller and the Depositor shall
cooperate with the Verification Agent and shall allow the Verification Agent access to its books,
records, computer system and employees during ordinary business hours upon reasonable notice and,
subject to the terms of the Verification Agent Letter, shall allow the Verification Agent to review
all collections and to make copies of any books, records and documents requested by the
Verification Agent, but solely to the extent such items and review relate to the Aggregate
Receivables and the obligations of the Seller, the Servicer and the Depositor under the Transaction
Documents and the Pooling and Servicing Agreements for the Securitization Trusts.

          Section 9.16. Exclusive. The Initial Receivables to be sold and/or contributed to the
Depositor and from the Depositor to the Issuer on the Initial Funding Date shall consist of the
right to reimbursement for all of the Advances and Servicing Advances outstanding with respect to
the Securitization Trusts as of the Initial Funding Date. During the Funding Period, the Seller
shall not sell, assign, transfer, pledge or convey any Receivable with respect to the
Securitization Trusts to any Person other than

23

 

the Depositor. The Additional Receivables sold and/or contributed on each Funding Date shall
consist of the right to reimbursement for all of the Advances and Servicing Advances with respect
to the Securitization Trusts not previously sold and contributed to the Depositor hereunder (other
than Receivables repurchased by the Seller pursuant to Section 6.02).

          Section 9.17. Recovery. The Seller shall diligently endeavor to collect reimbursement
of Aggregate Receivables and shall not waive or forgive the obligation of a mortgagor to pay such
amounts.

          Section 9.18. Merger. Without the prior written consent of the Agent and the Required
Noteholders, the Seller and the Depositor shall not enter into any transaction of merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation,
wind up or dissolution).

          Section 9.19. Use of Proceeds. The Seller shall utilize the proceeds of each purchase
of Initial Receivables and Additional Receivables for general corporate purposes.

ARTICLE X.

INDEMNIFICATION

          Section 10.01. Indemnification.

               (a) Without limiting any other rights that an Indemnified Party may have hereunder or under
applicable law, the Seller hereby agrees to indemnify each Indemnified Party (as defined below)
from and against any and all Indemnified Amounts (as defined below) which may be imposed on,
incurred by or asserted against an Indemnified Party in any way arising out of or relating to any
breach of the Seller’s or the Servicer’s obligations under this Agreement or any other Transaction
Document, or the ownership of the Aggregate Receivables or in respect of any Aggregate Receivables,
excluding, however, Indemnified Amounts to the extent resulting from gross negligence or willful
misconduct on the part of such Indemnified Party.

     Without limiting or being limited by the foregoing, the Seller shall pay on demand to each
Indemnified Party any and all amounts necessary to indemnify such Indemnified Party from and
against any and all Indemnified Amounts relating to or resulting from:

	 	(i)	 	a breach of any representation or warranty
made by the Seller under or in connection with this Agreement;
	 
	 	(ii)	 	the failure by the Seller or the Servicer
to comply with any term, provision or covenant contained in this
Agreement, or any agreement executed by it in connection with this
Agreement or with any applicable law, rule or regulation with respect
to any Aggregate Receivable, or the

24

 

	 	 	 	nonconformity of any Aggregate Receivable with any such
applicable law, rule or regulation; or
	 
	 	(iii)	 	the failure to vest and maintain vested in
the Issuer, or to transfer, to the Issuer, ownership of the Aggregate
Receivables, together with all collections in respect thereof, free
and clear of any adverse claim (except as permitted hereunder),
whether existing at the time of the transfer of such Aggregate
Receivable or at any time thereafter.

               (b) Any Indemnified Amounts subject to the indemnification provisions of this Section 10.01
shall be paid to the Indemnified Party within twenty (20) Business Days following demand therefor.
“Indemnified Party” means any of the Depositor, the Issuer, the Indenture Trustee, the Owner
Trustee, the Agent, the Initial Purchaser and the Secured Parties and their officers, employees,
directors and successors or assigns. “Indemnified Amounts” means any and all claims,
losses, liabilities, obligations, damages, penalties, actions, judgments, suits, and related
reasonable costs and reasonable expenses of any nature whatsoever, including reasonable attorneys’
fees and disbursements (subject to the following paragraph), incurred by an Indemnified Party.

               (c) Promptly after an Indemnified Party shall have been served with the summons or other first
legal process or shall have received written notice of the threat of a claim in respect of which an
indemnity may be claimed against the Seller under this Section 10.01, the Indemnified Party shall
notify the Seller in writing of the service of such summons, other legal process or written notice,
giving information therein as to the nature and basis of the claim, and providing a copy thereof;
provided, however, that failure so to notify the Seller shall not relieve the Seller from any
liability which it may have hereunder or otherwise except to the extent that the Seller is
prejudiced by such failure so to notify the Seller. The Seller will be entitled, at its own
expense, to participate in the defense of any such claim or action and to assume the defense
thereof, with counsel reasonably satisfactory to such Indemnified Party, unless the defendants in
any such action include both the Indemnified Party and the Seller, and the Indemnified Party (upon
the advice of counsel) shall have reasonably concluded that there may be legal defenses available
to it that are different from or additional to those available to the Seller, or one or more
Indemnified Parties, and which in the reasonable opinion of such counsel are sufficient to create a
conflict of interest for the same counsel to represent both the Seller and such Indemnified Party;
provided, however, that the Seller shall not be responsible for the fees and expenses of more than
one firm of attorneys for all Indemnified Parties related to the Depositor, one firm of attorneys
for all Indemnified Parties related to the Issuer, one firm of attorneys for all Indemnified
Parties related to the Agent, one firm of attorneys for all Indemnified Parties related to the
Noteholders and one firm of attorneys for all Indemnified Parties related to the Indenture Trustee.
Each Indemnified Party shall cooperate with the Seller in the defense of any such action or claim.
The Seller shall not, without the prior written consent of the Indemnified Party, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or
could have been a party and indemnity could have been sought

25

 

hereunder by such Indemnified Party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the subject matter of such proceeding
or threatened proceeding.

ARTICLE XI.

MISCELLANEOUS

          Section 11.01. Amendments. No amendment or waiver of any provision of this Agreement
shall in any event be effective unless the same shall be in writing and signed by all of the
parties hereto and consented to in writing by the Agent and the Required Noteholders, and then such
amendment, waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given.

          Section 11.02. Notices. All notices and other communications provided for hereunder
shall, unless otherwise stated herein, be in writing (including telecopies) and mailed or e-mailed,
telecopied (with a copy delivered by overnight courier) or delivered, as to each party hereto, at
its address as set forth in Schedule I hereto or at such other address as shall be designated by
such party in a written notice to the other parties hereto. All such notices and communications
shall be deemed effective upon receipt thereof, and in the case of telecopies, when receipt is
confirmed by telephone.

          Section 11.03. No Waiver; Remedies. No failure on the part of any party hereto to
exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

          Section 11.04. Binding Effect; Assignability.

               (a) This Agreement shall be binding upon and inure to the benefit of the Seller, the Depositor
and the Issuer and their respective permitted successors and assigns; provided, however, that the
Seller shall not have any right to assign its respective rights hereunder or interest herein (by
operation of law or otherwise) without the prior written consent of the Agent and the Required
Noteholders and the Depositor shall not have any right to assign its respective rights hereunder or
interest herein (by operation of law or otherwise) without the prior written consent of the Agent
and the Required Noteholders.

               (b) This Agreement shall create and constitute the continuing obligation of the parties hereto
in accordance with its terms, and shall remain in full force and effect until such time as the
Indenture has terminated.

          Section 11.05. GOVERNING LAW; JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO

26

 

ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO THE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE COURT HAVING JURISDICTION TO
REVIEW THE JUDGMENTS THEREOF. EACH OF THE PARTIES HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON
CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE
AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT.

          Section 11.06. Execution in Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together shall constitute
one and the same agreement.

          Section 11.07. Survival. All representations, warranties, covenants, guaranties and
indemnifications contained in this Agreement and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the sale, transfer or repayment
of the Aggregate Receivables.

          Section 11.08. Third Party Beneficiary.  The Seller and the Depositor acknowledge and
agree that the Indenture Trustee, the Agent and the other Secured Parties are intended third party
beneficiaries of this Agreement.

          Section 11.09. General.

               (a) No course of dealing and no delay or failure of the Issuer (or the Indenture Trustee as
its assignee) in exercising any right, power or privilege under this Agreement shall affect any
other or future exercise thereof or the exercise of any other right, power or privilege; nor shall
any single or partial exercise of any such right, power or privilege or any abandonment or
discontinuance of steps to enforce such a right, power or privilege preclude any further exercise
thereof or of any other right, power or privilege. The rights and remedies of the Issuer (and the
Indenture Trustee as its assignee) under this Agreement are cumulative and not exclusive of any
rights or remedies which the Issuer would otherwise have.

               (b) The obligations of the Seller and the Depositor under this Agreement shall be absolute and
unconditional and shall remain in full force and effect without regard to, and shall not be
released, discharged or in any way affected by (a) any exercise or nonexercise of any right,
remedy, power or privilege under or in respect of this Agreement or applicable law, including,
without limitation, any failure to set-off or release in whole or in part by the Issuer of any
balance of any deposit account or credit on its books in favor of the Issuer or any waiver,
consent, extension, indulgence or other action or inaction in respect of any thereof, or (b) any
other act or thing or omission or

27

 

delay to do any other act or thing which would operate as a discharge of the Issuer as a matter of
law.

               (c) This Agreement sets forth the entire understanding of the parties relating to the subject
matter hereof and thereof, and supersedes all prior understandings and agreements, whether written
or oral with respect to the subject matter hereof and thereof.

               (d) The Seller shall pay the Depositor’s and the Issuer’s costs and expenses reasonably
incurred in connection with the enforcement of any of the Seller’s obligations hereunder.

               (e) Any provision of this Agreement which is prohibited, unenforceable or not authorized in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or nonauthorization without invalidating the remaining provisions hereof or
affecting the validity, enforceability or legality of such provision in any other jurisdiction.

          Section 11.10. LIMITATION OF DAMAGES. 

NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, THE PARTIES AGREE THAT NO PARTY SHALL BE
LIABLE TO ANY OTHER FOR ANY SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES WHATSOEVER, WHETHER IN
CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR ANY OTHER LEGAL OR EQUITABLE
PRINCIPLES; PROVIDED THAT, THE FOREGOING PROVISION SHALL NOT LIMIT OR RELIEVE ANY PARTY OF ANY
OBLIGATION UNDER THIS AGREEMENT TO INDEMNIFY ANY OTHER PARTY AGAINST ANY DAMAGES IMPOSED (INCLUDING
SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES) UPON SUCH PARTY BY A FINAL ORDER OF ANY COURT OF
COMPETENT JURISDICTION IN CONNECTION WITH ANY LEGAL ACTION BROUGHT AGAINST SUCH PARTY BY ANY THIRD
PARTY.

          Section 11.11.  WAIVER OF JURY TRIAL. 

EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, THE PURCHASES OR THE ACTIONS OF ANY
PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF OR THEREOF.

          Section 11.12. No Recourse. It is expressly understood and agreed by the parties
hereto that (a) this Receivables Purchase Agreement is executed and delivered by Wilmington Trust
Company, not individually or personally but solely as trustee of the Issuer, 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

28

 

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 Receivables Purchase Agreement or any other related documents.

29

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers hereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 
	 	 	OPTION ONE ADVANCE TRUST, 2007-ADV2	 	 
	 
	 	 	 	 	 	 
	 	 	By: Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Erwin M. Soriano
 

Erwin M. Soriano
	 	 
	 

	 	Title:
	 	Assistant Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE ADVANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ William L. O’Neill
 

William L. O’Neill
	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ William L. O’Neill
 

William L. O’ Neill
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

 

 

SCHEDULE I

INFORMATION FOR NOTICES

	 	 	 
	1.

	 	if to the Issuer:
	 
	 	 
	 

	 	OPTION ONE ADVANCE TRUST 2007-ADV2
	 

	 	3 Ada
	 

	 	Irvine, California 92618
	 

	 	Attention: Rod Smith
	 

	 	Facsimile: (949) 790-7514
	 

	 	Telephone: (949) 790-8100
	 
	 	 
	 

	 	(with a copy to the Seller)
	 
	 	 
	2.

	 	if to the Depositor:
	 
	 	 
	 

	 	OPTION ONE ADVANCE CORPORATION
	 

	 	3 Ada
	 

	 	Irvine, California 92618
	 

	 	Attention: Rod Smith, Mail Stop DC-IR
	 

	 	Facsimile: (949) 790-7514
	 

	 	Telephone: (949) 790-8100
	 
	 	 
	3.

	 	if to the Seller:
	 
	 	 
	 

	 	OPTION ONE MORTGAGE CORPORATION
	 

	 	3 Ada
	 

	 	Irvine, California 92618
	 

	 	Facsimile: (949) 790-7514
	 

	 	Telephone: (949) 790-8100
	 
	 	 
	4.

	 	if to the Indenture Trustee:
	 
	 	 
	 

	 	Use Notice Address provided in the Indenture.
	 
	 	 
	5.

	 	if to the Agent:
	 
	 	 
	 

	 	GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
	 

	 	600 Steamboat Road
	 

	 	Greenwich, Connecticut 06830
	 

	 	Attention: Robert Provety
	 

	 	Facsimilie: (203) 618-2148
	 

	 	Telephone: (203) 618-6884
	 
	 	 
	 

	 	With a copy to:

Sch-I-1

 

 

	 	 	 
	 

	 	Dominic Obaditch
	 

	 	GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
	 

	 	600 Steamboat Road
	 

	 	Greenwich, Connecticut 06830
	 

	 	Facsimile: (203) 422-4565
	 

	 	Telephone: (203) 618-2565
	 
	 	 
	6.

	 	if to the Secured Parties:
	 
	 	 
	 

	 	GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
	 

	 	600 Steamboat Road
	 

	 	Greenwich, Connecticut 06830
	 

	 	Attention: Robert Provety
	 

	 	Facsimilie: (203) 618-2148
	 

	 	Telephone: (203) 618-6884
	 
	 	 
	 

	 	With a copy to:
	 
	 	 
	 

	 	Dominic Obaditch
	 

	 	GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
	 

	 	600 Steamboat Road
	 

	 	Greenwich, Connecticut 06830
	 

	 	Facsimile: (203) 422-4565
	 

	 	Telephone: (203) 618-2565
	 
	 	 
	7.

	 	if to the Initial Purchasers:
	 
	 	 
	 

	 	GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
	 

	 	600 Steamboat Road
	 

	 	Greenwich, Connecticut 06830
	 

	 	Attention: Robert Provety
	 

	 	Facsimilie: (203) 618-2148
	 

	 	Telephone: (203) 618-6884

Sch-I-2

 

 

SCHEDULE II

AMENDMENTS TO POOLING AND SERVICING AGREEMENTS

Sch-II-1

 

 

EXHIBIT A

COPY OF INITIAL FUNDING DATE REPORT

FOR

INITIAL RECEIVABLES

A-1

 

 

EXHIBIT B

FUNDING NOTICE

[insert date]

	 	 	 
	Option One Advance Trust 2007-ADV2

	 	Wells Fargo Bank, National Association
	3 Ada

	 	9062 Old Annapolis Road
	Irvine, California 92618

	 	Columbia, Maryland 21045
	Attention: [___]

Facsimile: [___]

	 	Attention: Client Manager — Option One 

Advance Trust 2007-ADV2
	Telephone: [___]

	 	Facsimile: 410-715-2380
	 	 	Telephone: 410-884-2000
	 
	 	 
	GREENWICH CAPITAL FINANCIAL
PRODUCTS, INC.

	 	BearingPoint, Inc.
	600 Steamboat Road

	 	1676 International Drive
	Greenwich, Connecticut 06830

	 	McLean, Virginia 22102
	Attention: Robert Provety

	 	Attention: [___]
	Facsimilie: 203-618-2148

	 	Facsimile: [___]
	Telephone: 203-618-6884

	 	Telephone: [___]

     Re: Receivables Purchase Agreement, dated as of October 1, 2007; Funding Notice

     Pursuant to Section 2.01 of the Receivables Purchase Agreement, dated as of October 1, 2007
(the “Receivables Purchase Agreement”), between Option One Advance Trust 2007-ADV2 (the “Issuer”),
Option One Advance Corporation (the “Depositor”) and Option One Mortgage Corporation (the
“Seller”), the undersigned hereby notifies you that the Receivables listed on Exhibit A hereto, in
the amount of $[                    ], are being sold by the Seller to the Depositor and by the Depositor
to the Issuer on the Funding Date occurring on [insert date].

     The Seller also hereby certifies that (i) the Funding Conditions contained in Sections
7.02(ii), (iv), (v), (vi), (vii), (viii), (xii), (xiii) (with respect to Sections 3.01(a)(ii),
(iii) and (iv) of the Note Purchase Agreement, dated as of October 1, 2007, between the Issuer and
Greenwich Capital Financial Products, Inc.) and (xiv) of the Indenture, dated as of October 1,
2007, between the Issuer and Wells Fargo Bank, National Association, have been met and (ii) the
representations and warranties contained in Section 6 of the Receivables Purchase Agreement are
true and correct as of the date hereof.

B-1

 

 

     The Depositor also hereby certifies that the representations and warranties contained in
Section 5 of the Receivables Purchase Agreement are true and correct as of the date hereof.

B-2

 

 

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	OPTION ONE MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 	 	OPTION ONE ADVANCE
CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 
	 
	 	 	 	 
	BEARINGPOINT, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

B-3

 

 

Exhibit C

FORM OF BILL OF SALE

     Option One Mortgage Corporation (the “Seller”) hereby absolutely sells and contributes to
Option One Advance Corporation, and Option One Advance Corporation (the “Depositor”) hereby
absolutely sells and contributes to Option One Advance Trust 2007-ADV2, a statutory trust organized
under the laws of the State of Delaware (the “Purchaser”), without recourse, except as set forth in
the Amended and Restated Receivables Purchase Agreement:

	 	(a)	 	All right, title and interest in and to the Receivables identified in the
Schedule attached hereto as Exhibit A; and
	 
	 	(b)	 	All principal, interest and other proceeds of any kind received with respect
to such Receivables, including but not limited to proceeds derived from the
conversion, voluntary or involuntary, of any of such assets into cash or other
liquidated property.

     The ownership of the Receivables is vested in Purchaser and the ownership of all records and
documents with respect to the related Receivables prepared by or which come into the possession of
the Seller or the Depositor shall immediately vest in Purchaser and shall be retained and
maintained, in trust, by the Seller or the Depositor, as applicable at the will of Purchaser in
such custodial capacity only. The sale of the Receivables shall be reflected as a sale on the
Seller’s and the Depositor’s business records, tax returns and financial statements.

     This Bill of Sale is made pursuant to, and is subject to the terms and conditions of, that
certain Receivables Purchase Agreement dated as of October 1, 2007, between Option One Mortgage
Corporation, as seller, Option One Advance Corporation, as depositor and Option One Advance Trust
2007-ADV2, as issuer (the “Agreement”). The Seller confirms to Purchaser that the representations
and warranties set forth in Article 6 of the Agreement are true and correct as if made on the date
hereof (except to the extent that they expressly relate to an earlier or later date). The Depositor
confirms to Purchaser that the representations and warranties set forth in Article 5 of the
Agreement are true and correct as if made on the date hereof (except to the extent that they
expressly relate to an earlier or later date).

     Capitalized terms used herein and not otherwise defined shall have the meanings set forth in
the Agreement.

C-1

 

 

	 	 	 	 	 	 	 	 	 
	DATED:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	OPTION ONE MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	OPTION ONE ADVANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

C-2

 

 

EXHIBIT D

SCHEDULE I REPORT

D-1

 

 

EXHIBIT E

SCHEDULE II REPORT

E-1

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