Document:

Exhibit 10.14

Exhibit 10.14

 

Ninth Amendment To

Mortgage Warehouse Loan And
Security Agreement

This Ninth Amendment to Mortgage Warehouse Loan and
Security Agreement (this "Amendment"), made by and between FIRST PREFERENCE
MORTGAGE CORP., a Texas corporation  ("Borrower"), COLONIAL BANK, N.A.
(f/k/a Colonial Bank), a national banking association, as lender ("Lender"), is
dated as of the 31st day of March, 2005.

R  E  C  I  T  A  L  S:

Pursuant to that certain Mortgage
Warehouse Loan and Security Agreement dated as of December 28, 2000, as amended
by that certain First Amendment to Mortgage Warehouse Loan and Security
Agreement dated as of February 20, 2001, that certain Second Amendment to
Mortgage Warehouse Loan and Security Agreement dated as of April 10, 2001, that
certain Third Amendment to Mortgage Warehouse Loan and Security Agreement dated
as of August 29, 2001, that certain Fourth Amendment to Mortgage Warehouse Loan
and Security Agreement dated as of October 31, 2002, that certain Fifth
Amendment to Mortgage Warehouse Loan and Security Agreement dated as of April
30, 2003, that certain Sixth Amendment to Mortgage Warehouse Loan and Security
Agreement dated as of August 29, 2003, that certain Seventh Amendment to
Mortgage Warehouse Loan and Security Agreement dated as of December 10, 2003,
and that certain Eighth Amendment to Mortgage Warehouse Loan and Security
Agreement dated as of December 31, 2004 (as heretofore amended, the
"Agreement"), Lender made available to Borrower, subject to the terms and
conditions thereof, a revolving line of credit loan in the maximum aggregate
principal amount not to exceed $25,000,000.00 (the "Line of Credit").  

Pursuant to the provisions of the
Agreement, the Line of Credit matures on March 31, 2005.  Borrower has
requested that Lender agree to extend the scheduled maturity date of the Line
of Credit to June 30, 2005 and to make certain other changes, and Lender is
willing to do so, but only on the express condition, among others, that
Borrower enters into this Amendment, pursuant to which the Agreement shall be
amended and modified.

NOW, THEREFORE, in consideration of the
premises and agreements contained herein, and for good and valuable
consideration, the receipt and sufficiency of which are acknowledged by the
parties hereto, the parties hereto do hereby agree, each with the other, as
follows:

1.         If not otherwise defined herein or
the context shall not expressly indicate otherwise, all capitalized terms which
are used herein shall have their respective meanings given to them in the
Agreement.

2.         Section 1.1 (Defined Terms)
of the Agreement is hereby amended as follows:

(A)        By amending and restating the
definition of "Maturity Date" to read in its entirety as follows:

                        "Maturity
Date" shall mean June 30, 2005; provided, that upon the written
request of Borrower to Lender, Lender may elect to extend the Maturity Date on
such terms and conditions as it deems appropriate in its sole discretion.

 

3.         Section 6.3 (Special Financial Covenants) of the
Agreement is hereby amended and restated in its entirety to read as follows:

Section 6.3        Special Financial
Covenants.

Borrower hereby covenants and agrees that, as long as any Obligations
remain unpaid or the Commitment hereunder is outstanding, the following special
financial covenants shall be applicable to Borrower and tested monthly at the
end of each calendar month as set forth below:

(a)        Tangible Net Worth.  [Intentionally omitted.]

(b)        Adjusted Tangible Net Worth.  Borrower's Adjusted
Tangible Net Worth shall not be less than $2,500,000.00.

(c)        Adjusted Leverage Ratio.  Borrower's Adjusted
Leverage Ratio shall not be greater than 15:1.0.

(d)        Current Ratio.  Borrower's Current Ratio shall not be
less than 1.0:1.0.  

4.         This Amendment shall become
effective as of the date first written above, provided that the Lender shall
have received by such date the following items, all of which must be in form
and content satisfactory to Lender in its sole discretion:

(A)       This Amendment executed by
Borrower and Lender (whether such parties shall have signed the same or different
counterparts); 

(B)       An executed affidavit, in form
satisfactory to Lender, regarding the execution of this Agreement by Borrower
outside the State of Florida;

(C)       Certificates of even date herewith
signed by the President and Chief Executive Officer and/or Secretary or
Assistant Secretary of Borrower, as appropriate, certifying (1) the
authorizing resolutions of Borrower, (2) that the organizational documents of
Borrower previously delivered to the Lender remain in full force and effect
with no modification or amendments except as disclosed in said Certificate, (3)
that all representations and warranties previously made to Lender remains true,
complete and accurate, and (4) that no Event of Default or Potential Default
has occurred and is continuing;

(D)        A confirmation of even date
herewith from Guarantor with respect to his Guaranty;

(E)         If required by Lender, good
standing certificates/certificates of existence of a recent date for Borrower
from the State of Texas and each other state in which Borrower conducts its business

(F)         If required by Lender, such UCC
and other lien searches as Lender shall request, showing no Liens which have
priority over Lender's first priority security interest in the Collateral; and

(G)         Such other certificates,
instruments, opinions and documents (if any) that Lender shall reasonably
request.

2

5.         Notwithstanding the execution of
this Amendment, all of the indebtedness evidenced by the Note shall remain in
full force and effect, and any collateral described in any agreement providing
security for any obligation of Borrower so defined to include the Note shall
remain subject to the liens, pledges, security interests and assignments of any
such agreements as security for the indebtedness evidenced by the Note and all
other indebtedness described therein.  Nothing herein in this Amendment shall
be construed to constitute a novation of the indebtedness evidenced by the Note
or to release, satisfy, discharge or otherwise affect or impair in any manner
whatsoever (1) the validity or enforceability of the indebtedness evidenced by
the Note; (2) the liens, pledges, security interests, assignments and
conveyances affected by the Agreement, the other Loan Documents and any other
agreement securing such Note, or the priority thereof; (3) the liability
of any maker, endorser, surety, guarantor or other Person that may now or
hereafter be liable under or on account of the Note or any agreement securing
such Note; or (4) any other security or instrument now or hereafter held by
Lender as security for as evidence of any of the above-described indebtedness. 
In no way limiting the foregoing, Borrower acknowledges and agrees that the
indebtedness evidenced by the Note is and shall remain secured by the
collateral described in the Agreement and the other Loan Documents.

6.         In order to induce Lender to enter
into this Amendment, Borrower represents and warrants that:

(A)          The execution, delivery and
performance by Borrower of this Amendment and the other documents contemplated
hereby to which Borrower is a party are within its corporate powers, has been
duly authorized by all necessary corporate action and is not in contravention
of any law, rule or regulation, or any judgment, decree, writ, injunction,
order to award of any arbitrator, court or governmental authority, or of the
terms of Borrower's certificate of incorporation or bylaws, or of any contract
or undertaking to which Borrower is a party or by which Borrower or its
property is or may be bound or affected.

(B)          Each of this Amendment and the
other documents contemplated hereby to which Borrower is a party is a legal,
valid and binding obligation of Borrower, enforceable against Borrower in
accordance with its terms.

(C)          No consent, approval or
authorization of or declaration, registration or filing with any governmental
authority or any nongovernmental person or entity, including without limitation
any creditor or stockholder of Borrower, is required on the part of Borrower in
connection with the execution, delivery and performance of this Amendment or
the other documents or the transactions contemplated hereby or as a condition
to the legality, validity or enforceability of this Amendment.

(D)         After giving effect to the
amendments to the Agreement contained in this Amendment, the representations
and warranties contained in Article 5 of the Agreement and in the other Loan
Documents are true and correct on and as of the date hereof with the same force
and effect as if made on and as of the date hereof, no Event of Default or
Potential Default exists or has occurred and is continuing on the date hereof,
and no material adverse change has occurred in the financial condition of
Borrower since the date of the last financial statements submitted by Borrower
to Lender pursuant to the Agreement.

7.         If Borrower shall fail to perform
or observe any term, covenant or agreement in this Amendment, or any
representation or warranty made by Borrower in this Amendment shall prove to
have been incorrect in any material respect when made, such occurrence shall be
deemed to constitute an Event of Default.

3

8.         This Amendment shall be governed
by and construed in accordance with the laws of the State of Florida.

9.         Borrower agrees to pay the
reasonable fees and expenses of counsel for Lender, in connection with the
negotiation and preparation of this Amendment and the documents referred to
herein and the consummation of the transactions contemplated hereby, and in
connection with advising Lender as to its rights and responsibilities with
respect thereto.

10.       Unless otherwise expressly
modified or amended hereby, all terms and conditions of the Agreement shall
remain in full force and effect, and the same, as amended hereby, are hereby
ratified and confirmed in all respects.  From and after the effective date
hereof, all references in the Agreement, and any other document or instrument
entered into in connection therewith, to the Agreement shall be deemed to be
references to the Agreement as amended by this Amendment.

11.       This Amendment shall inure to and
be binding upon and enforceable by Borrower and Lender and their respective
successors and assigns.

12.       This Amendment may be executed in
one or more counterparts, each of which when executed and delivered shall
constitute an original.  All such counterparts shall together be deemed to be
one and the same instrument.

13.       Further, the parties may execute
facsimile copies of this Amendment and the facsimile signature of any such
party shall be deemed an original and fully binding on said party; provided,
however, any party executing this Amendment by facsimile signature
agrees to promptly provide an original executed copy of this Amendment to
Lender.  Further, the parties may execute facsimile copies of this Amendment
and the facsimile signature of any such party shall be deemed an original and
fully binding on said party; provided, however, any party
executing this Amendment by facsimile signature agrees to promptly provide an
original executed copy of this Amendment to Lender.

[Remainder of Page Intentionally Left Blank.]

 

4

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

                                                                             

  	 	

BORROWER:

      
	 	   
	 	

                FIRST
PREFERENCE MORTGAGE CORP.

      
	 	    
	[CORPORATE SEAL]	

By:           
/s/ David W. Mann                              

      
	  	

Name:            David
W. Mann

      
	ATTEST: 	

Its:
                President and Chief Executive Officer

      
	   	 
	By:  /s/    Cathy Davis              
		
      	

 

      
	Name: 
   Cathy Davis	

 

      
	Its:           Secretary	

 

      

 

STATE
OF TEXAS

COUNTY
OF McLENNAN

On this ______ day of March, 2005, personally appeared
David W. Mann, as President and Chief Executive Officer of First Preference
Mortgage Corp., a Texas corporation ("Borrower"), and before me executed the
attached Ninth Amendment to Mortgage Warehouse Loan and Security Agreement,
dated as of March 31, 2005, by and between Colonial Bank, N.A., as Lender, and
Borrower.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal in the County and State
last aforesaid.

  	

                                                                                                

      
	

Signature of Notary Public-State of Texas

      
	   
	

                                                                                                

      
	

Print Name: Notary Public, State of Texas

      
	

Personally Known                                                                      

      
	

Produced Identification                                       

      
	

Type of Identification:                                         

      
	  
	

              (NOTARIAL SEAL)

      

 

 

 

5

	

LENDER:

    
	  
	

                              COLONIAL
BANK, N.A.

    
	  
	

By:                                                                                

    
	

Name:                           Amy J.
Nunneley

    
	

Its:                             Senior
Vice President

    

 

STATE
OF ALABAMA

COUNTY
OF JEFFERSON

On this _____ day of March, 2005, personally appeared
Amy J. Nunneley, as Senior Vice President of Colonial Bank, N.A., a national
banking association, and before me executed the attached Ninth Amendment to
Mortgage Warehouse Loan and Security Agreement, dated as of March 31, 2005, by
and between Colonial Bank, N.A., as Lender, and First Preference Mortgage
Corp., as Borrower.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal in the County and State
last aforesaid.

	

                                                                                                

    
	

Signature of Notary Public-State of Alabama

    
	  
	

                                                                                                

    
	

Print Name: Notary Public, State of Alabama

    
	

Personally Known                                                                      

    
	

Produced Identification                                       

    
	

Type of Identification:                                         

    
	  
	

              (NOTARIAL SEAL)

    

 

 

6Exhibit 10.15

Exhibit 10.15

 

Tenth
Amendment To

Mortgage Warehouse Loan And
Security Agreement

This Tenth Amendment to Mortgage Warehouse Loan and
Security Agreement (this "Amendment"), made by and between FIRST PREFERENCE
MORTGAGE CORP., a Texas corporation  ("Borrower"), COLONIAL BANK, N.A.
(f/k/a Colonial Bank), a national banking association, as lender ("Lender"), is
dated as of the 28th day of September, 2005.

R  E  C  I  T  A  L  S:

Pursuant to that certain Mortgage
Warehouse Loan and Security Agreement dated as of December 28, 2000, as amended
by that certain First Amendment to Mortgage Warehouse Loan and Security
Agreement dated as of February 20, 2001, that certain Second Amendment to
Mortgage Warehouse Loan and Security Agreement dated as of April 10, 2001, that
certain Third Amendment to Mortgage Warehouse Loan and Security Agreement dated
as of August 29, 2001, that certain Fourth Amendment to Mortgage Warehouse Loan
and Security Agreement dated as of October 31, 2002, that certain Fifth
Amendment to Mortgage Warehouse Loan and Security Agreement dated as of April
30, 2003, that certain Sixth Amendment to Mortgage Warehouse Loan and Security
Agreement dated as of August 29, 2003, that certain Seventh Amendment to
Mortgage Warehouse Loan and Security Agreement dated as of December 10, 2003,
that certain Eighth Amendment to Mortgage Warehouse Loan and Security Agreement
dated as of December 31, 2004, and that certain Ninth Amendment to Mortgage
Warehouse Loan and Security Agreement dated as of March 31, 2005 (as heretofore
amended, the "Agreement"), Lender made available to Borrower, subject to the
terms and conditions thereof, a revolving line of credit loan in the maximum
aggregate principal amount not to exceed $25,000,000.00 (the "Line of
Credit").  

Pursuant to the provisions of the
Agreement, the Line of Credit, as temporarily extended by letter agreements
dated June 23, 2005, July 28, 2005 and August 26, 2005, respectively, from
Lender to Borrower, matures on September 30, 2005.  Borrower has requested that
Lender agree to extend the scheduled maturity date of the Line of Credit to
December 31, 2005, to reduce the maximum principal amount of the Line of Credit
to $5,000,000.00 and to make certain other changes, and Lender is willing to do
so, but only on the express condition, among others, that Borrower enters into
this Amendment, pursuant to which the Agreement shall be amended and modified.

NOW, THEREFORE, in consideration of the
premises and agreements contained herein, and for good and valuable consideration,
the receipt and sufficiency of which are acknowledged by the parties hereto,
the parties hereto do hereby agree, each with the other, as follows:

1.         If not otherwise defined herein or
the context shall not expressly indicate otherwise, all capitalized terms which
are used herein shall have their respective meanings given to them in the
Agreement.

2.         Section 1.1 (Defined Terms)
of the Agreement is hereby amended as follows:

(A)       By amending and restating the
definition of "Commitment" to read in its entirety as follows:

 

"Commitment" shall mean the commitment of Lender to make
Advances to Borrower which Advances in the aggregate, subject to each
applicable Sublimit, shall not exceed $5,000,000.00 at any time outstanding.

(B)       By amending and restating the definition of "Eligible Conforming Mortgage
Loan" to read in its entirety as follows:

"Eligible Conforming Mortgage Loan" shall mean a
Mortgage Loan with respect to which each of the following statements is true
and correct:

(a)        such
Mortgage Loan is an Eligible Mortgage Loan;

(b)        such
Mortgage Loan is insured by the FHA or guaranteed by the VA (or there exists a
binding commitment to issue such insurance or guaranty subject to the
satisfaction of customary conditions), and/or fully conforms to all
underwriting and other requirements of GNMA, FNMA or FHLMC; provided, however,
if such Mortgage Loan is (i) a "jumbo" Mortgage Loan that meets all other "A"
paper criteria, except loan size and, if underwritten by Borrower, the initial
principal amount thereof does not exceed $650,000.00 or, if the initial
principal amount thereof exceeds $650,000.00, such Mortgage Loan has been
underwritten and approved by the Approved Investor under the Investor
Commitment referred to in subparagraph (c) below, (ii) an "Alt-A" Mortgage Loan
with a FICO Score of 620 or above, or (iii) an "A-" Mortgage Loan that is
Agency eligible, such Mortgage Loan nevertheless will be deemed to be an
Eligible Conforming Mortgage Loan if it otherwise meets each of the statements
in subsections (a) and (c) of this definition; and

(c)        except
as otherwise permitted under paragraph (q) of the definition of "Eligible
Mortgage Loan", such Mortgage Loan is covered by an Investor Commitment that is
in full force and effect and pledged to Lender hereunder, and Borrower and such
Mortgage Loan are in full compliance therewith.

(C)       By amending the definition of
"Eligible Mortgage Loan" to amend and restate subparagraph (l), subparagraph
(n), and subparagraph (t) to read in their entireties, respectively, as
follows:

(l)         if the promissory note for such Mortgage
Loan (or any other documentation relating thereto) has been withdrawn from the
possession of Lender on terms and subject to conditions set forth in Section
4.4 hereof, (i) such promissory note or other documentation has been released
to Borrower for purposes of correcting clerical or other non-substantive
documentation problems pursuant to a Trust Receipt as permitted under  Section
4.4(a) hereof, such release has occurred within the immediately preceding ten
(10) days and the collateral value of the Mortgage Loan for which such note or
other documentation has been released, when added to the collateral value of
all other Mortgage Loans for which notes or other documentation have been
similarly released to Borrower, does not exceed $1,000,000.00 or (ii) such
promissory note and any related documentation for such Mortgage Loan have been
shipped by Lender directly to an Approved Investor for purchase, as permitted
under Section 4.4(b) hereof, such shipment has occurred within the immediately
preceding forty-five (45) days and the collateral value of such Mortgage Loan,
when added to the collateral value of all other Mortgage Loans for which
promissory notes or other documentation has been similarly shipped, does not
exceed $1,000,000.00;

- - - - - -

2

(n)        the date of the promissory note is no
earlier than sixty (60) days (ninety (90) days in the case of any Mortgage Loan
purchased by Borrower from its correspondents and which Lender has approved to
be warehoused hereunder pursuant to subparagraph (t) below) prior to the date
the Advance secured by such Mortgage Loan is made by Lender to Borrower or, if
the interest rate applicable to such Mortgage Loan has converted to a fixed
rate, the date of such conversion is no earlier than sixty (60) days prior to
the date the Advance secured by such Mortgage Loan is made by Lender to
Borrower;

- - - - - -

(t)        such Mortgage Loan is originated directly
by Borrower and is not purchased from a third-party correspondent, unless
otherwise approved by Lender in its sole discretion and, if so approved by
Lender, the documents described on Exhibit C and, if Lender has so
requested, the additional items described on Exhibit D, to this
Agreement for such Mortgage Loan must be delivered to Lender on or prior to the
date the Advance secured by such Mortgage Loan is made by Lender to Borrower,
accompanied by a bailment letter acceptable to Lender and applicable wiring
instructions;

(D)       By amending and restating the
definition of "Maturity Date" to read in its entirety as follows:

"Maturity Date" shall mean December 31, 2005 (or
if such day is not a Banking Day, on the next succeeding Banking Day) or, if
earlier, the date of the termination of the Commitment, in accordance with
Section 2.6 or Section 7.2; provided, that upon the written request of
Borrower to Lender, Lender may elect to extend the Maturity Date on such terms
and conditions as it deems appropriate in its sole discretion 

(E)        By amending and restating the
definition of "Sublimit A" to read in its entirety as follows:

"Sublimit A" shall mean a portion of the Line of Credit up to
but not exceeding $5,000,000.00, which shall be available to warehouse Sublimit
A Mortgage Loans.

(F)       By amending and restating the
definition of "Sublimit B" to read in its entirety as follows:

"Sublimit B" shall mean a portion of the Line of Credit up to
but not exceeding $1,250,000.00 (increasing to $1,750,000.00 during the last
five (5), followed by the first five (5) Banking Days of each month), which
shall be available to warehouse Sublimit B Mortgage Loans.

(G)       By amending and restating the
definition of "Sublimit C" to read in its entirety as follows:

3

"Sublimit C" shall mean a portion of the Line of Credit up to
but not exceeding $500,000.00, which shall be available to warehouse Sublimit C
Mortgage Loans.

(H)       The definition of "Sublimit D"
shall continue to read in its entirety as follows:

"Sublimit D" shall mean a portion of the Line of Credit up to
but not exceeding $625,000.00, which shall be available to warehouse Sublimit D
Mortgage Loans.

3.         Section 2.4 (Note) of the
Agreement is hereby amended to delete the term "$25,000,000.00" therefrom and
to substitute the term "$5,000,000.00" in lieu thereof.  

4.          Section 2.6 (Termination or
Reduction of Commitment) of the Agreement is hereby amended and restated in
its entirety to read as:

Section
2.6  Termination or Reduction of Commitment.

The
Commitment shall automatically terminate on the earlier to occur of:  (i) the
Maturity Date and (ii) in the event Lender exits the mortgage warehouse lending
industry, six (6) months following notice of such termination given by Lender
to Borrower, in each case, subject to earlier termination as set forth in
Section 7.2.  The Commitment may not be reduced in part by Borrower, but may be
terminated in its entirety at any time by Borrower upon at least sixty (60)
days' prior irrevocable notice to Lender

5.         Section 2.7 (Mandatory
Repayments) of the Agreement is hereby amended to amend and restate
subsection (a) thereof in its entirety to read as follows:

(a)        Borrower shall repay all outstanding Advances and other
Obligations on the earlier to occur of: (i) the Maturity Date and (ii) the date
on which the Commitment terminates pursuant to Section 2.6 or Section 7.2.

6.          Section 4.4 (Release of
Collateral Documentation) of the Agreement is hereby amended to delete the
phrase "twenty-one (21) days" from clause (ii)(B) of subsection (c) thereof and
to substitute the phrase "forty-five (45) days" in lieu thereof.

7.          Section 6.1(a)(ii) (Monthly
Financial Statements) of the Agreement is hereby amended and restated to
read in its entirety as follows:

(ii)        Monthly Financial Statements.  As soon as available
and in any event within forty-five (45) days after the end of each calendar
month (with the exception of the following months:  January will be due by
April 15 and February will be due by April 30), a balance sheet of Borrower as
at the end of such calendar month and the related statements of income,
retained earnings and cash flows of Borrower for such calendar month and the
portion of the fiscal year ended at the end of such calendar month, all in
reasonable detail and certified by the chief financial officer of Borrower that
they are complete and correct and that they present fairly the financial
condition as at the end of such month, and the results of operations and cash
flows for such month and such portion of the fiscal year, of Borrower in
accordance with GAAP consistently applied (subject to normal year-end
adjustments).  If requested by Lender, Borrower shall use its best efforts to
include in such financial statements information on monthly production volume
in dollars and units and on Borrower's servicing portfolio (if applicable), and
further, shall detail any additional Funded Liabilities incurred by Borrower
during the reporting period;

4

8.         Section 6.3 (Special Financial Covenants) of the
Agreement is hereby amended and restated in its entirety to read as follows:

Section 6.3        Special Financial
Covenants.

Borrower hereby covenants and agrees that, as long as any Obligations
remain unpaid or the Commitment hereunder is outstanding, the following special
financial covenants shall be applicable to Borrower and tested monthly at the
end of each calendar month as set forth below:

(a)        Tangible Net Worth.  [Intentionally omitted.]

(b)        Adjusted Tangible Net Worth.  Borrower's Adjusted
Tangible Net Worth shall not be less than $833,000.00.

(c)        Adjusted Leverage Ratio.  Borrower's Adjusted
Leverage Ratio shall not be greater than 12:1.0.

(d)        Current Ratio.  Borrower's Current Ratio shall not be
less than 1.0:1.0.  

9.         Section 7.2 (Remedies) of
the Agreement is hereby amended to delete the phrase "Section 7.1(h) or Section
7.1(l)" from the first sentence thereof and to substitute the phrase "Section
7.1(h) or Section 7.1(k)" in lieu thereof.

10.       With respect to certain of its
obligations under Section 6.1(d) of the Agreement, Borrower acknowledges and
agrees that as of the date hereof the minimum fidelity insurance coverage
acceptable to Lender is $300,000.00 and the minimum errors and omissions coverage
acceptable to Lender is $300,000.00.  Borrower agrees to maintain such coverages in those amounts or greater until otherwise notified by Lender. 
Borrower further agrees to provide Lender with written evidence satisfactory to
Lender that Lender has been named as loss payee and additional insured on such
coverages prior to the effective date of this Amendment.

11.        This Amendment shall become
effective as of the date first written above, provided that the Lender shall
have received by such date the following items, all of which must be in form
and content satisfactory to Lender in its sole discretion:

(A)          This Amendment executed by
Borrower and Lender (whether such parties shall have signed the same or
different counterparts); 

(B)          A Seventh Amendment to Promissory
Note executed by Borrower and Lender (the "Note Amendment") (whether such
parties shall have signed the same or different counterparts);

(C)          An executed affidavit, in form
satisfactory to Lender, regarding the execution of this Agreement and the Note
Amendment by Borrower outside the State of Florida;

(D)           Certificates of even date herewith
signed by the President and Chief Executive Officer and/or Secretary or
Assistant Secretary of Borrower, as appropriate, certifying (1) the
authorizing resolutions of Borrower, (2) that the organizational documents of
Borrower previously delivered to the Lender remain in full force and effect
with no modification or amendments except as disclosed in said Certificate, (3)
that all representations and warranties previously made to Lender remains true,
complete and accurate, and (4) that no Event of Default or Potential Default
has occurred and is continuing;

5

(E)            A confirmation of even date
herewith from Guarantor with respect to his Guaranty;

(F)            If required by Lender, good
standing certificates/certificates of existence of a recent date for Borrower
from the State of Texas and each other state in which Borrower conducts its
business;

(G)            An Amended and Restated Triparty
Agreement among Lender, Citizens State Bank and Borrower;

(H)            A Subordination Agreement among
First Financial Corporation, Borrower and Lender;

(I)              If required by Lender, such UCC
and other lien searches as Lender shall request, showing no Liens which have
priority over Lender's first priority security interest in the Collateral; and

(J)              Evidence of the insurance coverages as described in Section 10 above and such other certificates,
instruments, opinions and documents (if any) that Lender shall reasonably
request.

12.       Notwithstanding the execution of
this Amendment and the Note Amendment, all of the indebtedness evidenced by the
Note (as amended by the Note Amendment) shall remain in full force and effect,
and any collateral described in any agreement providing security for any
obligation of Borrower so defined to include the Note shall remain subject to
the liens, pledges, security interests and assignments of any such agreements
as security for the indebtedness evidenced by the Note (as amended by the Note
Amendment) and all other indebtedness described therein.  Nothing herein in
this Amendment shall be construed to constitute a novation of the indebtedness
evidenced by the Note or to release, satisfy, discharge or otherwise affect or
impair in any manner whatsoever (1) the validity or enforceability of the
indebtedness evidenced by the Note (as amended by the Note Amendment); (2) the
liens, pledges, security interests, assignments and conveyances affected by the
Agreement, the other Loan Documents and any other agreement securing such Note
(as amended by the Note Amendment), or the priority thereof; (3) the
liability of any maker, endorser, surety, guarantor or other Person that may
now or hereafter be liable under or on account of the Note or any agreement
securing such Note; or (4) any other security or instrument now or hereafter
held by Lender as security for as evidence of any of the above-described
indebtedness.  In no way limiting the foregoing, Borrower acknowledges and
agrees that the indebtedness evidenced by the Note (as amended by the Note
Amendment) is and shall remain secured by the collateral described in the
Agreement and the other Loan Documents.

13.       In order to induce Lender to enter
into this Amendment, Borrower represents, warrants and covenants to Lender
that:

(A)          The execution, delivery and
performance by Borrower of this Amendment, the Note Amendment and the other
documents contemplated hereby to which Borrower is a party are within its
corporate powers, has been duly authorized by all necessary corporate action
and is not in contravention of any law, rule or regulation, or any judgment,
decree, writ, injunction, order to award of any arbitrator, court or
governmental authority, or of the terms of Borrower's certificate of
incorporation or bylaws, or of any contract or undertaking to which Borrower is
a party or by which Borrower or its property is or may be bound or affected.

6

(B)           Each of this Amendment, the Note
Amendment and the other documents contemplated hereby to which Borrower is a
party is a legal, valid and binding obligation of Borrower, enforceable against
Borrower in accordance with its terms.

(C)          No consent, approval or
authorization of or declaration, registration or filing with any governmental
authority or any nongovernmental person or entity, including without limitation
any creditor or stockholder of Borrower, is required on the part of Borrower in
connection with the execution, delivery and performance of this Amendment, the
Note Amendment or the other documents or the transactions contemplated hereby
or as a condition to the legality, validity or enforceability of this Amendment
or the Note Amendment.

(D)           After giving effect to the
amendments to the Agreement contained in this Amendment, the representations
and warranties contained in Article 5 of the Agreement and in the other Loan
Documents are true and correct on and as of the date hereof with the same force
and effect as if made on and as of the date hereof, no Event of Default or
Potential Default exists or has occurred and is continuing on the date hereof,
and no material adverse change has occurred in the financial condition of Borrower
since the date of the last financial statements submitted by Borrower to Lender
pursuant to the Agreement.

(E)           From and after the date of this
Amendment, and notwithstanding anything to the contrary contained in the
Agreement or any of the other Loan Documents, Borrower agrees to fully utilize
its warehousing facility with Citizens State Bank before requesting an Advance
under the Line of Credit with Lender unless Lender shall otherwise agree from
time to time in its sole and absolute discretion.

(F)           No later than October 31, 2005,
Borrower will receive a cash equity injection from its parent First Financial
Corporation in an amount of at least $500,000.00 in the form of convertible
debt that will be subordinated to the Line of Credit and all other Obligations
owing by Borrower to Lender.  Borrower shall furnish to Lender true, correct
and complete copies of the documentation evidencing the foregoing and cause
First Financial Corporation to enter into a Subordination Agreement with Lender
with respect thereto.

14.       If Borrower shall fail to perform
or observe any term, covenant or agreement in this Amendment, or any
representation or warranty made by Borrower in this Amendment shall prove to
have been incorrect in any material respect when made, such occurrence shall be
deemed to constitute an Event of Default.

15.       This Amendment shall be governed
by and construed in accordance with the laws of the State of Florida.

16.       Borrower agrees to pay the
reasonable fees and expenses of counsel for Lender, in connection with the negotiation
and preparation of this Amendment and the documents referred to herein and the
consummation of the transactions contemplated hereby (including good standing
certificates of Borrower obtained from public officials, lien search fees and UCC filing fees), and in connection with advising Lender as to its rights and
responsibilities with respect thereto.

17.       Unless otherwise expressly
modified or amended hereby, all terms and conditions of the Agreement shall
remain in full force and effect, and the same, as amended hereby, are hereby
ratified and confirmed in all respects.  From and after the effective date
hereof, all references in the Agreement, and any other document or instrument
entered into in connection therewith, to the Agreement shall be deemed to be
references to the Agreement as amended by this Amendment.

7

18.       This Amendment shall inure to and
be binding upon and enforceable by Borrower and Lender and their respective
successors and assigns.

19.       This Amendment may be executed in
one or more counterparts, each of which when executed and delivered shall
constitute an original.  All such counterparts shall together be deemed to be
one and the same instrument.

20.       Further, the parties may execute
facsimile copies of this Amendment and the facsimile signature of any such
party shall be deemed an original and fully binding on said party; provided,
however, any party executing this Amendment by facsimile signature
agrees to promptly provide an original executed copy of this Amendment to
Lender.  Further, the parties may execute facsimile copies of this Amendment
and the facsimile signature of any such party shall be deemed an original and
fully binding on said party; provided, however, any party
executing this Amendment by facsimile signature agrees to promptly provide an
original executed copy of this Amendment to Lender.

[Remainder of Page Intentionally Left Blank.]

 

 

8

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

                                                                              BORROWER:

                                                                                               FIRST
PREFERENCE MORTGAGE CORP.

[CORPORATE
SEAL]                                          By:                            
/s/David W. Mann                                        

                                                                              Name:                            David
W. Mann

ATTEST:                                                                Its:
                President and Chief Executive Officer

 

 

By: 
                      /s/Cathy
Davis                                         

Name: 
                 Cathy Davis

Its:                         Secretary

 

STATE
OF TEXAS

COUNTY
OF McLENNAN

On this ______ day of September, 2005, personally
appeared David W. Mann, as President and Chief Executive Officer of First
Preference Mortgage Corp., a Texas corporation ("Borrower"), and before me
executed the attached Tenth Amendment to Mortgage Warehouse Loan and Security
Agreement dated September 28, 2005, by and between Colonial Bank, N.A., as
Lender, and Borrower.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal in the County and State
last aforesaid.

                                                                                                

Signature of Notary Public-State of Texas

 

                                                                                                

Print Name: Notary Public, State of Texas

Personally Known                                                                      

Produced Identification                                       

Type of Identification:                                         

              (NOTARIAL SEAL)

 

9

LENDER:

 

                              COLONIAL
BANK, N.A.

 

 

By:                                                                                

Name:                           Mary Lou
Bathen

Its:                              Assistant
Treasurer

STATE
OF ALABAMA

COUNTY
OF MONTGOMERY

On this _____ day of September, 2005,
personally appeared Mary Lou Bathen, as Assistant Treasurer of Colonial Bank,
N.A., a national banking association, and before me executed the attached Tenth
Amendment to Mortgage Warehouse Loan and Security Agreement dated as of
September 28, 2005, by and between Colonial Bank, N.A., as Lender, and First
Preference Mortgage Corp., as Borrower.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal in the
County and State last aforesaid.

                                                                                                

Signature of Notary Public-State of Alabama

 

 

                                                                                                

Print Name: Notary Public, State of Alabama

Personally Known                                                                      

Produced Identification                                       

Type of Identification:                                         

              (NOTARIAL SEAL)

 

10

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