Amendment to Master Repurchase Agreement between Aames Capital Corporation and Lehman Commercial Paper Inc.

Summary

This letter agreement, dated August 25, 2000, is between Aames Capital Corporation and Lehman Commercial Paper Inc. It amends the existing Master Repurchase Agreement governing the purchase and sale of mortgage loans. The amendment specifically changes the required Leverage Ratio thresholds for the Guarantor at various dates, setting new financial limits that must be met each month. Both parties must sign to accept these revised terms.

EX-10.3(B) 3 a2030500zex-10_3b.txt EXHIBIT 10.3(B) EXHIBIT 10.3(b) August 25, 2000 Aames Capital Corporation 350 South Grand Avenue Los Angeles, California 90071 Re: Second Amended and Restated Master Repurchase Agreement Governing Purchases and Sales of Mortgage Loans, dated as of April 28, 2000, as amended by the First Amendment to Second Amended and Restated Master Repurchase Agreement Governing Purchases and Sales of Mortgage Loans dated as of June 1, 2000 (together, the "Master Repurchase Agreement"), between Aames Capital Corporation as Seller, and Lehman Commercial Paper Inc. as Buyer. Gentlemen: Reference is made to the Master Repurchase Agreement. Capitalized terms used but not defined herein shall have the meanings set forth in the Master Repurchase Agreement. Buyer hereby notifies Seller that Section 13(a)(xv) of the Agreement is hereby deleted in its entirety and replaced with the following: "the Leverage Ratio of the Guarantor as calculated on the last Business Day of each month shall exceed (a) prior to and on June 30, 2000, 13.0 to 1.0, (b) after June 30, 2000 and prior to and on July 31, 2000, 12.0 to 1.0, (c) after July 31, 2000 and prior to and on August 31, 2000, 10.99 to 1.0 and (d) after August 31, 2000 and prior to and on the earlier to occur of September 30, 2000 and the closing of a Securitization (as such term is defined in the Fee Letter), 10.00 to 1.0;" If you are in agreement with the foregoing terms of this letter agreement, please execute all of the enclosed copies and return two fully executed copies to the undersigned. Very truly yours, LEHMAN COMMERCIAL PAPER INC. By: /s/ Fred C. Madonna ----------------------------------- Name: Fred C. Madonna Title: Authorized Signature Accepted and Agreed to: AAMES CAPITAL CORPORATION By: /s/ John Kohler - ------------------------------------ Name: John Kohler Title: Executive Vice President