Document:

EX-10.2

Exhibit 10.2

EXECUTION COPY

FRANKLIN MORTGAGE ASSET TRUST 2009-A

as Purchaser

and

FRANKLIN CREDIT ASSET CORPORATION, FRANKLIN CREDIT MANAGEMENT

CORPORATION, TRIBECA LENDING CORP.

AND EACH OF THEIR RESPECTIVE SUBSIDIARIES LISTED ON SCHEDULE I,

as Sellers

TRANSFER AND ASSIGNMENT AGREEMENT

Dated as of March 31, 2009

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I. DEFINITIONS
	 	 	 	 
	 
	Section 1.01 Definitions
	 	 	1	 
	 
	Section 1.02 Rules of Construction
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II. SALE OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE
	 	 	 	 
	 
	Section 2.01 Sale and Assignment of Mortgage Loans and REO Property
	 	 	4	 
	 
	Section 2.02 Recognition of Purchaser
	 	 	8	 
	 
	Section 2.03 Obligations of Sellers Upon Transfer
	 	 	9	 
	 
	Section 2.04 Payment of Purchase Price for the Mortgage Loans
	 	 	10	 
	 
	Section 2.05 Closing
	 	 	10	 
	 
	Section 2.06 Closing Documents
	 	 	11	 
	 
	Section 2.07 Costs
	 	 	12	 
	 
	 	 	 	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH
	 	 	 	 
	 
	Section 3.01 Sellers’ Representations and Warranties Relating to the Mortgage Loans
and REO Properties
	 	 	12	 
	 
	Section 3.02 Sellers Representations and Warranties
	 	 	18	 
	 
	Section 3.03 Remedies for Breach of Representations and Warranties
	 	 	19	 
	 
	Section 3.04 Representations of Purchaser
	 	 	21	 
	 
	 	 	 	 
	ARTICLE IV. SELLERS’ COVENANTS
	 	 	 	 
	 
	Section 4.01 Covenants of the Sellers
	 	 	21	 
	 
	 	 	 	 
	ARTICLE V. INDEMNIFICATION
	 	 	 	 
	 
	Section 5.01 Indemnification
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VI. MISCELLANEOUS PROVISIONS
	 	 	 	 
	 
	Section 6.01 Amendment
	 	 	23	 
	 
	Section 6.02 Governing Law
	 	 	23	 
	 
	Section 6.03 Notices
	 	 	23	 
	 
	Section 6.04 Severability of Provisions
	 	 	24	 
	 
	Section 6.05 Counterparts
	 	 	24	 
	 
	Section 6.06 Further Agreements
	 	 	24	 
	 
	Section 6.07 Intention of the Parties
	 	 	24	 
	 
	Section 6.08 Successors and Assigns: Assignment of Purchase Agreement
	 	 	25	 

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	 	 	Page
	Section 6.09 Survival
	 	 	25	 
	 
	Section 6.10 Limitations of Liability of Trustees
	 	 	25	 
	 
	Section 6.11 Third Party Beneficiaries
	 	 	25	 
	 
	Section 6.12 Conflict of Interest
	 	 	25	 
	 
	Section 6.13 Nonpetition Covenant
	 	 	25	 

	 	 	 	 	 
	Schedule I – List of Subsidiary Sellers

	 	I-1
	 	 
	Schedule II – Mortgage Loan Schedule

	 	II-1	 	 
	Schedule III – REO Property Schedule

	 	III-1	 	 
	Schedule IV – Putback Litigation Schedule

	 	IV-1	 	 

Exhibit 1 – Form of Officer’s Certificate of Sellers

Exhibit 2 – Form of Opinion of Counsel

Exhibit 3 – Form of Security Release Certification

Exhibit 4 – Form of Assignment and Conveyance

Exhibit 5 – Form of Notice of Termination

Exhibit 6 – Form of Release Notice

Exhibit 7 – Form of Registration Instruction Letter

Exhibit 8 – Custodian Exception Reports

Exhibit 9 – Exceptions to Loan Level and REO Representations and Warranties

ii

 

          TRANSFER AND ASSIGNMENT AGREEMENT, dated as of March 31, 2009 (the “Agreement”), among
FRANKLIN CREDIT ASSET CORPORATION, FRANKLIN CREDIT MANAGEMENT CORPORATION, TRIBECA LENDING CORP.
AND EACH OF THEIR RESPECTIVE SUBSIDIARIES LISTED ON SCHEDULE I (each a “Seller” and collectively,
the “Sellers”) and FRANKLIN MORTGAGE ASSET TRUST 2009-A (the “Purchaser”).

WITNESSETH:

          WHEREAS, the Sellers desire to sell, transfer and assign to the Purchaser, and the Purchaser
desires to purchase and acquire from the Sellers, the fixed and adjustable rate residential first
and junior lien mortgage loans listed on Schedule II, including all servicing rights and all
Servicing Records relating thereto (the “Mortgage Loans”), and mortgaged properties acquired
through foreclosure or deed-in-lieu of foreclosure in connection with defaulted mortgage loans
listed on Schedule III, including all servicing rights and all Servicing Records relating thereto
(the “REO Properties”), in each case on the date hereof (the “Closing Date”); and

          WHEREAS, the parties hereto desire that the Sellers sell, transfer and assign the Assets to
the Purchaser and the Purchaser purchase and acquire the Assets from the Sellers pursuant to the
terms of this Agreement.

          NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto
agree as follows:

ARTICLE I.

DEFINITIONS

     Section 1.01 Definitions. All capitalized terms used but not defined herein and below
shall have the meanings assigned thereto in the Servicing Agreement or, if not defined therein, the
Trust Agreement.

     “ALTA” shall mean the American Land Title Association.

     “Assets” shall have the meaning assigned to such term in Section 2.01(a) of
this Agreement.

     “Assignment” shall have the meaning assigned to such term in Section 2.01(a) of
this Agreement.

     “Assignment and Conveyance” shall have the meaning assigned to such term in
Section 2.01(d) of this Agreement.

     “Assignment of Mortgage” shall have the meaning assigned to such term in the
Servicing Agreement.

     “Class A Certificates” shall have the meaning assigned to such term in the
Trust Agreement.

 

 

     “Class REO Certificates” shall have the meaning assigned to such term in the
Trust Agreement.

     “Closing Date” shall have the meaning assigned to such term in the recitals of
this Agreement.

     “Co-op Lease” shall mean, with respect to a Cooperative Loan, the lease with
respect to a dwelling unit occupied by the related Mortgagor and relating to the stock
allocated to such dwelling unit.

     “Co-op Security Agreement” shall mean, with respect to any Cooperative Loan,
the agreement creating a security interest in the stock allocated to a dwelling unit in the
residential cooperative housing corporation that was pledged to secure such Cooperative Loan
and the related Co-op Lease.

     “Cooperative Loan” shall mean a Mortgage Loan evidenced by a Mortgage Note and
secured by a first lien against (i) shares issued by a cooperative housing corporation and
(ii) the related Mortgagor’s leasehold interest in such Mortgagor’s Cooperative Apartment.
The security interest created in such Mortgagor’s Cooperative Apartment and the proprietary
lease shall include the following documentation, as required by the applicable laws of the
state in which such Cooperative Apartment is located: (a) a security agreement, (b) the
related UCC-1 Financing Statement, (c) an assignment of the cooperative lease, (d) the stock
certificate evidencing ownership of such Cooperative Apartment, appropriately endorsed, or
an equivalent stock power, (e) a recognition agreement, and (f) such other documents as are
necessary and proper for the perfection of a lien against such Cooperative Apartment, all as
are required under state law.

     “Custodian” shall have the meaning assigned to such term in the Servicing
Agreement.

     “Existing Liens” shall have the meaning assigned to such term in the Trust
Agreement.

     “First Lien” shall mean, with respect to any Mortgaged Property, that the Lien
of the related Mortgage creates a first priority Lien on such Mortgaged Property.

     “Indemnified Amounts” shall have the meaning assigned to such term in Section
5.01 of this Agreement.

     “Indemnified Party” shall have the meaning assigned to such term in Section
5.01 of this Agreement.

     “Indemnifying Party” shall have the meaning assigned to such term in Section
5.01 of this Agreement.

     “Junior Lien” shall mean, with respect to any Mortgaged Property, that the lien
of the related Mortgage creates a junior lien on such Mortgaged Property.

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     “Legacy Loan Agreement” shall mean that certain Amended and Restated Credit
Agreement dated as of March 31, 2009, among Franklin Credit Asset Corporation, Tribeca
Lending Corp. and the other Borrowers party thereto, as borrowers, the Financial
Institutions party thereto, as Lenders, and The Huntington National Bank, as Administrative
Agent.

     “Mortgage Loan Data Transmission” shall mean, with respect to any Mortgage Loan
or REO Property, the reports and other information and data provided by the Servicer to the
Purchaser and the Administrator pursuant to Section 7.01 of the Servicing Agreement.

     “Mortgage Loans” shall have the meaning assigned to such term in the recitals
of this Agreement.

     “Purchaser” shall have the meaning assigned to such term in the introductory
paragraph hereto.

     “Putback Litigation” shall mean the litigation specified on Schedule IV.

     “Putback Litigation Proceeds” shall mean all amounts in respect of approved
judgments, recoveries, settlements and other proceeds received by any Seller, the Servicer
or any of their respective affiliates in connection with any Putback Litigation or related
proceeding, net of litigation expenses relating thereto.

     “Qualified Insurer” shall mean, with respect to any Mortgaged Property, an
insurance company duly qualified as such under the laws of the state(s) in which such
Mortgaged Property is located, duly authorized and licensed in such state(s) to transact the
applicable insurance business and to write the insurance provided, and approved by the
Administrator and whose claims-paying ability is rated in the two highest rating categories
by any of the rating agencies with respect to primary mortgage insurance and in the two
highest rating categories by Best’s with respect to hazard and flood insurance.

     “Reacquisition Party” shall mean each Seller other than Franklin Credit
Management Corporation; provided, however, that Franklin Credit Management
Corporation shall constitute a Reacquisition Party in the case of any and all remedies
provided for herein or under applicable law arising out of or relating to a breach by
Franklin Credit Management Corporation of its representation and warranty made in Section
3.01(b)(2).

     “Reacquisition Price” shall have the meaning assigned to such term in Section
3.03.

     “REIT Shares” shall have the meaning assigned to such term in the Legacy Loan
Agreement.

     “REO Properties” shall have the meaning assigned to such term in the recitals
of this Agreement.

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     “Sellers” shall have the meaning assigned to such term in the introductory
paragraph hereto.

     “Servicer” shall mean Franklin Credit Management Corporation, in its capacity
as Servicer under the Servicing Agreement, and its permitted successors and assigns.

     “Servicer Environmental Notice” shall have the meaning assigned to such term in
Section 3.03.

     “Servicing Agreement” shall mean the servicing agreement, dated as of March 31,
2009, between Franklin Mortgage Asset Trust 2009-A and Franklin Credit Management
Corporation.

     “Servicing Records” shall mean, with respect to any Asset, all servicing
records, including any and all servicing agreements, files, documents, records, data bases,
computer tapes, copies of computer tapes, proof of insurance coverage, insurance policies,
appraisals, leases, contracts of sale, land contracts, listing agreements, real estate tax
bills, lien certificates, invoices relating to repair, restoration and maintenance of
Mortgaged Properties or REO Properties and other documentation and payment history records
relating to such Assets.

     “Trust” shall mean the Franklin Mortgage Asset Trust 2009-A, a Delaware
statutory trust formed pursuant to the Trust Agreement.

     “Trust Agreement” shall mean the trust agreement dated as of March 31, 2009,
among Franklin Credit Asset Corporation, Franklin Credit Management Corporation, Tribeca
Lending Corp. and each of their respective subsidiaries listed on Schedule I thereof, The
Huntington National Bank, not in its individual capacity but solely as Certificate Trustee,
and Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee.

     “Trustees” shall have the meaning assigned to such term in the Trust Agreement.

     Section 1.02 Rules of Construction. Section 1.02 (Rules of Construction) of the
Servicing Agreement is hereby incorporated by reference into this Agreement with appropriate
substitution of this Agreement for references in that Section to the Servicing Agreement so that
the language of that Section will read appropriately as applying to this Agreement.

ARTICLE II.

SALE OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE

     Section 2.01 Sale and Assignment of Mortgage Loans and REO Property.

          (a) On and as of the date hereof, each Seller hereby sells, transfers and assigns to the
Purchaser all of its right, title and interest in, to and under (i) the Mortgage Loans and

4

 

REO Properties listed on Schedules II and III, respectively, including, without limitation,
the related Servicing Files, Mortgage Files and REO Files, (ii) deficiency judgments in favor of
the related Seller and all rights and obligations related thereto, and (iii) all accounts, general
intangibles, chattel paper, instruments, documents, money, deposit accounts, certificates of
deposit, goods, letters of credit, advices of credit, and investment property, consisting of,
arising from, or relating to any of the foregoing (collectively, the “Assets”), including
all proceeds of any and all of the foregoing (including the right to receive any Putback Litigation
Proceeds), and the Purchaser hereby accepts such transfer and assignment from each Seller (each an
“Assignment”), and the Sellers hereby acknowledge their respective Assignments.
Notwithstanding the foregoing, (i) each Assignment shall be subject to the Existing Liens and (ii)
all rights to pursue any Putback Litigation shall remain with the Sellers and each Seller hereby
agrees, jointly and severally, to accept the reassignment of any Assets subject to any Putback
Litigation in consideration of the related Seller’s receipt of the Putback Litigation Proceeds
(with such Putback Litigation Proceeds being paid directly to the Purchaser hereunder, and in each
case such Putback Litigation Proceeds shall be subject to the prior written approval of the
Administrator, and the Administrator may, in its sole discretion, designate any Business Day as a
“Special Remittance Date” in connection with the receipt thereof.

          (b) On and as of the date hereof, each Seller represents and warrants to the Trustees, the
Purchaser, the Administrator and each Certificateholder that such Seller has not taken any action
that would serve to impair or encumber the respective ownership interests of the Trust in the
Assets since the date of such Seller’s acquisition of the Mortgage Loans or REO Properties, in each
case other than the Existing Liens. Additionally, each of Sellers agree not to encumber the REO
Property or otherwise take any action that would affect legal title or record title to the REO
Property prior to the recording of the individual deeds.

          (c) The Purchaser shall own and be entitled to receive with respect to each Asset sold,
transferred and assigned to it hereunder all collections on and proceeds of such Assets, from
whatever source, received on or after the Closing Date whether received by the Servicer, any Seller
or any other Person.

          (d) Each Seller, simultaneously with the payment of the Purchase Price, shall execute and
deliver to the Trustees an Assignment and Conveyance with respect to the related Assets in the form
attached hereto as Exhibit 4 (each, an “Assignment and Conveyance”). The Servicing
File retained by the Servicer with respect to each Asset pursuant to this Agreement shall be
appropriately identified in each Seller’s computer system to reflect clearly the sale, assignment
and transfer of such related Asset to the Purchaser. Each Seller shall release from its custody
the contents of any Servicing File retained by it only in accordance with this Agreement and the
other Transaction Documents.

          (e) Each sale of an Asset hereunder shall constitute a sale, transfer and assignment of all of
the related Seller’s right, title and interest in, to and under such Asset. However, in order to
reduce administrative burden and expense, the Purchaser hereby revocably appoints Franklin Credit
Management Corporation and Tribeca Lending Corp. to act as its custodian solely with respect to
legal title to the Mortgage Loans and REO Properties, and each of Franklin Credit Management
Corporation and Tribeca Lending Corp. hereby accepts such appointment. Such appointments may be
revoked by the Purchaser or the Administrator in its

5

 

sole and absolute discretion at any time and for any reason or no reason. Record legal title
to each Mortgage and the related Mortgage Note as of the Closing Date may be in the name of the
Franklin Credit Management Corporation or Tribeca Lending Corp. Each of Franklin Credit Management
Corporation and Tribeca Lending Corp. hereby acknowledges and agrees that it shall hold all such
record legal title for the sole and exclusive benefit of the Purchaser, for the benefit of the
Certificateholders, as its custodian, agent and bailee. Notwithstanding the foregoing, beneficial
and legal ownership of each Mortgage and the related Mortgage Note shall be vested solely in the
Purchaser. All rights arising out of the Assets including, but not limited to, all funds received
by any Seller or the Servicer after the Closing Date on or in connection with an Asset, from
whatever source, shall be vested in the Purchaser, for the benefit of the Certificateholders;
provided, however, that all such funds received on or in connection with an Asset
shall be received and held by any Seller or the Servicer, as the case may be, in trust for the
benefit of the Purchaser as the owner of the Assets pursuant to the terms of this Agreement and the
other Transaction Documents. If so requested by the Administrator, the Sellers shall, or shall
cause Franklin Credit Trust Series I or Tribeca Lending Trust Series I, as applicable, to deliver
or cause to be delivered to the applicable Custodian, not later than fifteen (15) days after such
request, the following documents, to the extent such documents are in such trust’s or its
designee’s possession, pertaining to each of the Mortgage Loans identified in such request:

          (i) with respect to any Mortgage Loan:

	 	(1)	 	the original Assignment of Mortgage for each Mortgage Loan, in
form and substance acceptable for recording. The Mortgage shall be assigned to
the Certificate Trustee for the benefit of the Trust;
	 
	 	(2)	 	the original Mortgage with evidence of recording thereon or, if
the original Mortgage with evidence of recording thereon has not been returned
by the public recording office where such Mortgage has been delivered for
recordation or such Mortgage has been lost or such public recording office
retains the original recorded Mortgage, (i) in the case of a delay caused by
the public recording office, a photocopy of such Mortgage certified by the
applicable Seller to be a true and correct copy of the original mortgage that
has been delivered to the appropriate public recording office for recordation;
or (ii) in the case of a Mortgage where a public recording office retains the
original recorded Mortgage or in the case where a Mortgage is lost after
recordation in a public recording office, a copy of such Mortgage with the
recording information thereon certified by such public recording office to be a
true and complete copy of the original recorded Mortgage; provided,
however, in the case of (i) above the original recorded Mortgage or a
copy of such Mortgage shall be certified by such public recording office to be
a true and complete copy of the original recorded Mortgage and delivered
promptly upon receipt thereof from the applicable public recording office;
	 
	 	(3)	 	the originals of all intervening assignments of mortgage with
evidence of recording thereon evidencing a complete chain of ownership from the
originator of the Mortgage Loan to the last assignee, or if any such

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	 	 	 	intervening assignment of mortgage has not been returned from the applicable
public recording office or has been lost or if such public recording office
retains the original recorded intervening assignments of mortgage, (i) in
the case of a delay caused by the public recording office, a photocopy of
such intervening assignment of mortgage certified by the applicable Seller
to be a true and correct copy of the original intervening assignment of
mortgage that has been delivered to the appropriate public recording office
for recordation; or (ii) in the case of an intervening assignment of
mortgage where a public recording office retains the original recorded
intervening assignment of mortgage or in the case where an intervening
assignment of mortgage is lost after recordation in a public recording
office, a copy of such intervening assignment of mortgage with recording
information thereon certified by such public recording office to be a true
and complete copy of the original recorded intervening assignment of
mortgage; provided, however, in the case of (i) above, such
original recorded intervening assignment of mortgage or a copy of such
intervening assignment of mortgage shall be certified by the appropriate
public recording office to be a true and complete copy of the original
recorded intervening assignment of mortgage and delivered promptly upon
receipt thereof from the public recording office; and
	 
	 	(4)	 	if the Mortgage or any Assignment of Mortgage, or any other
related document has been signed by a Person on behalf of the Mortgagor, the
original power of attorney or other instrument that authorized and empowered
such Person to sign; and

          (ii) with respect to each REO Property:

	 	(1)	 	the original contract of sale and the original Deed for each
REO Property, such Deed to be in form and substance acceptable for recording.
The REO Property shall be assigned to the Certificate Trustee for the benefit
of the Trust;
	 
	 	(2)	 	the original Deed in the name of such Seller, Franklin Credit
Trust Series I, Tribeca Lending Trust Series I or any of their respective
affiliates, in each case to the extent applicable, with evidence of recording
thereon or, if the original Deed with evidence of recording thereon has not
been returned by the public recording office where such Deed has been delivered
for recordation or such Deed has been lost or such public recording office
retains the original recorded Deed, (i) in the case of a delay caused by the
public recording office, a photocopy of such Deed certified by the applicable
Seller to be a true and correct copy of the original Deed that has been
delivered to the appropriate public recording office for recordation; or (ii)
in the case of a Deed where a public recording office retains the original
recorded Deed or in the case where a Deed is lost after recordation in a public
recording office, a copy of such Deed with the recording information thereon
certified by such public

7

 

	 	 	 	recording office to be a true and complete copy of the original recorded
Deed; provided, however, in the case of (i) above, the
original recorded Deed or a copy of such Deed shall be certified by such
public recording office to be a true and complete copy of the original
recorded Deed and delivered promptly upon receipt thereof from the
applicable public recording office; and
	 
	 	(3)	 	if the Deed, or any other related document has been signed by a
Person on behalf of any Seller, Franklin Credit Trust Series I, Tribeca Lending
Trust Series I or any of their respective affiliates, as applicable, the
original power of attorney or other instrument that authorized and empowered
such Person to sign.

          (f) Pursuant to one or more Custodial Agreements to be executed among and delivered by the
Trustees, the Custodian, the Servicer and the Sellers prior to the Closing Date, the Sellers
shall, not later than five (5) days prior to the Closing Date, deliver and release to the Custodian
the Mortgage Loan Documents with respect to each Mortgage Loan and the REO Property Documents with
respect to each REO Property to be sold, transferred and assigned on the Closing Date and set forth
on the Mortgage Loan Schedule and REO Property Schedule delivered with such Mortgage Loan Documents
or REO Property Documents, respectively.

          (g) Each Custodian shall certify its receipt of all applicable Mortgage Loan Documents or REO
Property Documents required to be delivered pursuant to the applicable Custodial Agreement, as
evidenced by the trust receipt and final certification or similar document of such Custodian in the
form required by such Custodial Agreement. The Sellers shall be responsible for maintaining the
Custodial Agreements. The fees and expenses of the Custodians shall be paid by the Owner.

          (h) Each Seller shall forward to the Custodian original documents evidencing an assumption,
modification, consolidation or extension of any Mortgage Loan entered into in accordance with this
Agreement or the Servicing Agreement within two weeks of their execution; provided,
however, that such Seller shall provide the Custodian with a certified true copy of any
such document submitted for recordation within two weeks of its execution, and shall provide the
original of any document submitted for recordation or a copy of such document certified by the
appropriate public recording office to be a true and complete copy of the original within ninety
(90) days of its submission for recordation.

     Section 2.02 Recognition of Purchaser.

          From and after the date hereof, each Seller shall note the sale, transfer and assignment of
the Assets to the Purchaser in its respective books and records and shall recognize the Purchaser,
as of the date hereof, as the sole and exclusive owner of the Assets, and the Servicer shall
service the Mortgage Loans for the benefit of the Purchaser pursuant to the Servicing Agreement,
the terms of which are incorporated herein by reference. It is the intention of the Sellers, the
Trustees and the Purchaser that the Assignments shall be binding upon and inure to the benefit of
the Purchaser, the Certificateholders and their respective successors and assigns.

8

 

     Section 2.03 Obligations of Sellers Upon Transfer.

          In connection with each transfer pursuant to Section 2.01, each Seller further agrees, at its
own expense, on or prior to the Closing Date, (x) to indicate in its books and records that the
Assets have been sold, transferred and assigned to the Purchaser pursuant to this Agreement and
(y) to deliver to the Purchaser and the Trustees a computer file containing a true and complete
list of all such Assets, specifying for each such Mortgage Loan, as of the Closing Date, its
account number and principal balance. Such file, which forms a part of Schedules I and II to the
Servicing Agreement, shall also be marked as Schedules II and III to this Agreement and is hereby
incorporated into and made a part of this Agreement.

          In connection with each Assignment of the Assets, the related Seller shall, on behalf of the
Purchaser, deliver to and deposit with, the applicable Custodian, as the agent of the Purchaser,
the documents or instruments required to be included in the related Mortgage File or REO File, as
applicable, with respect to each Mortgage Loan and REO Property sold, transferred and assigned by
it.

          If any of the documents referred to above has as of the Closing Date been submitted for
recording but either (x) has not been returned from the applicable public recording office or
(y) has been lost or such public recording office has retained the original of such document, the
obligations of the Sellers to deliver such documents shall be deemed to be satisfied upon
(1) delivery to the applicable Custodian no later than the Closing Date, of a copy of each such
document certified by the applicable Seller in the case of (x) above or the applicable public
recording office in the case of (y) above to be a true and complete copy of the original that was
submitted for recording and (2) if such copy is certified by such Seller, delivery to the
applicable Custodian, promptly upon receipt thereof of either the original or a copy of such
document certified by the applicable public recording office to be a true and complete copy of the
original. If the original lender’s title insurance policy on a Mortgage Loan was not delivered as
required by this Section 2.03, such Seller shall deliver or cause to be delivered to the applicable
Custodian, a written commitment or interim binder or preliminary report of title issued by the
title insurance or escrow company, with the original to be delivered to the applicable Custodian,
promptly upon receipt thereof. The Sellers shall deliver or cause to be delivered to the
applicable Custodian promptly upon receipt thereof any other original documents constituting a part
of a Mortgage File received with respect to any Mortgage Loan or REO File with respect to any REO
Property, including, but not limited to, any original documents evidencing an assumption or
modification of any Mortgage Loan.

          In addition, in connection with the assignment of any MERS Mortgage Loan, each Seller agrees
that it will cause, at such Seller’s expense, the MERS System to indicate that the Mortgage Loans
sold by such Seller to the Purchaser have been assigned by such Seller to the Purchaser in
accordance with this Agreement by including (or deleting, in the case of Mortgage Loans which are
reacquired in accordance with this Agreement) in such computer files the information required by
the MERS System to identify the beneficial owner of such Mortgage Loans. Each Seller further
agrees that it will not alter the information referenced in this paragraph with respect to any
Mortgage Loan sold by any Seller to the Purchaser during the term of this Agreement.

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          Except as disclosed on Exhibit 8, upon discovery or receipt of notice of any materially
defective document in, or that a document is missing from, a Mortgage File or REO File, the Sellers
shall have 90 days to cure such defect or deliver such missing document to the applicable
Custodian. If the Sellers do not cure such defect or deliver such missing document within such
time period, the Sellers shall notify the Administrator and the Purchaser of its failure to so cure
or deliver on such 90th day and shall reacquire such Mortgage Loan or REO Property in
accordance with Section 3.03.

          The Purchaser hereby acknowledges its acceptance of all right, title and interest to the
Assets and other property, now existing and hereafter created, conveyed to it pursuant to
Section 2.01.

          The parties hereto intend that the transaction set forth herein be a sale, transfer and
assignment by the Sellers to the Purchaser of all of each Seller’s right, title and interest in and
to the Assets and other property described in this Agreement, subject in each case to any Existing
Liens. In the event the transaction set forth herein is deemed not to be a sale, transfer and
assignment, each Seller hereby grants to the Purchaser a security interest in all of such Seller’s
right, title and interest in, to and under the Assets and other property described in this
Agreement, whether now existing or hereafter arising, to secure all of the Sellers’ obligations
hereunder and under the other Transaction Documents; and this Agreement shall constitute a security
agreement under applicable law. The Sellers and the Purchaser 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 the Mortgage Loans and REO Properties, such security interest
would be deemed to be a perfected security interest of first priority under applicable law and will
be maintained as such throughout the term of the Trust Agreement. The Sellers hereby authorize the
Purchaser to file or authorize the filing of all such UCC financing statements, continuation
statements, instruments of further assurance and other instruments, and to take such other action
as may be necessary or advisable or desirable to secure the rights and remedies of the Purchaser,
the Certificate Trustee, the Owner Trustee, the Administrator and the Certificateholders under the
Transaction Documents.

     Section 2.04 Payment of Purchase Price for the Mortgage Loans. In consideration of
the sale, transfer and assignment of the Assets from the Sellers to the Purchaser on the Closing
Date, the Purchaser agrees to issue to or upon the order of the Sellers the Class A Certificates
and the Class REO Certificates (the “Purchase Price”).

     Section 2.05 Closing. The closing for the Assets to be purchased on the Closing Date
shall be subject to each of the following conditions:

          (a) all of the representations and warranties of each Seller under this Agreement and any
other Transaction Document shall be true and correct in all material respects as of the Closing
Date and no event shall have occurred which, with notice or the passage of time, would constitute a
default under this Agreement or under any other Transaction Document;

          (b) the Trustees and the Administrator shall have received shall have received in escrow, all
Closing Documents as specified in Section 2.06, in such forms as are agreed upon

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and acceptable to the Trustees and the Administrator, duly executed by all signatories as
required pursuant to the terms hereof;

          (c) the Sellers shall have delivered and released to the Custodians the Mortgage Loan
Documents and REO Property Documents; and

          (d) all other terms and conditions of this Agreement and the other Transaction Documents shall
have been complied with.

     Section 2.06 Closing Documents. On or before the Closing Date, each Seller shall
submit to the Purchaser fully executed originals of the following documents:

          (a) this Agreement;

          (b) each Custodial Agreement;

          (c) the Servicing Agreement;

          (d) the Trust Agreement;

          (e) an Officer’s Certificate, in the form of Exhibit 1 hereto, including all
attachments thereto;

          (f) an Opinion of Counsel to such Seller and the Servicer, in the form of Exhibit 2
hereto;

          (g) the related Mortgage Loan Schedule and REO Property Schedule, one copy to be attached
hereto and one copy to be attached to each Custodian’s counterpart of the Custodial Agreement, as
the Mortgage Loan Schedule thereto and REO Property Schedule;

          (h) each Custodian’s trust receipt and final certification or similar document, as required
under the Custodial Agreements, in a form acceptable to the Trustees;

          (i) a Security Release Certification, in the form of Exhibit 3 hereto executed by any
Person, as requested by the Trustees or the Administrator, if any of the Assets has at any time
been subject to any security interest, pledge or hypothecation (other than any Existing Lien) for
the benefit of such Person;

          (j) a certificate or other evidence of merger or change of name, signed or stamped by the
applicable regulatory authority, if any of the Assets were acquired by any Seller by merger or
acquired or originated by any Seller while conducting business under a name other than its present
name, if applicable;

          (k) an Assignment and Conveyance relating to all Assets conveyed by such Seller in the form of
Exhibit 4 hereto;

          (l) a Confidentiality Agreement, executed and delivered by the Purchaser and the Servicer, in
the form of Exhibit J to the Servicing Agreement;

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          (m) a UCC-1 financing statement, in form and substance satisfactory to the Administrator;

          (n) a Notice of Termination, executed and delivered by the parties thereto, relating to
Franklin Credit Trust Series I, substantially in the form of Exhibit 5;

          (o) a Notice of Termination, executed and delivered by the parties thereto, relating to
Tribeca Lending Trust Series I, substantially in the form of Exhibit 5;

          (p) a Release Notice, executed and delivered by the parties thereto, relating to Franklin
Credit Trust Series I, substantially in the form of Exhibit 6;

          (q) a Release Notice, executed and delivered by the parties thereto, relating to Tribeca
Lending Trust Series I, substantially in the form of Exhibit 6; and

          (r) a Registration Instruction Letter, executed and delivered by the Sellers, in substantially
the form of Exhibit 7.

     Section 2.07 Costs. All costs and expenses incurred in connection with the sale,
transfer, assignment and delivery of the Mortgage Loans and REO Properties, including without
limitation recording fees, fees for title policy endorsements and continuations, fees for recording
Assignments of Mortgage and Deeds, the cost of any recording service for recording such Assignments
of Mortgage, fees for transferring ownership of any MERS Mortgage Loans on the MERS System, the
fees of the Custodians and each Seller’s attorney’s fees, shall be paid by such Seller.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

     Section 3.01 Sellers’ Representations and Warranties Relating to the Mortgage Loans and
REO Properties.

          (a) The Sellers hereby represent and warrant to the Purchaser, with respect to each Mortgage
Loan, that as of the Closing Date or as of such date specifically provided herein:

	 	(1)	 	Mortgage Loan Schedule. The information set forth in
the Mortgage Loan Schedule is true, complete and correct in all material
respects as of its date.
	 
	 	(2)	 	Costs Paid and No Waivers. Except as set forth on
Exhibit 9, the terms of the Mortgage Loan have not been impaired, waived,
altered or modified in any respect, except by instruments or documents
identified in the Mortgage File, which have been recorded to the extent any
such recordation is required by applicable law or is necessary to protect the
interests of the Purchaser. The Mortgaged Property has not been released from
the lien of the Mortgage Loan.

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	 	(3)	 	Capacity of Parties. The Mortgage Note and the related
Mortgage are original and genuine and each is the legal, valid and binding
obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency and other laws of general
application affecting the rights of creditors. The proceeds of the Mortgage
Note have been fully disbursed, there is no requirement for future advances
thereunder and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds have been
complied with. All costs, fees and expenses incurred in making, or closing or
recording, the Mortgage Loan were paid.
	 
	 	(4)	 	Lawful Assignment. The applicable Seller has duly
executed an assignment of the Mortgage Loan to the Purchaser or in blank, which
assignment includes all rights such Seller may have against the originating
contractor or lender if the Mortgage Loan was originated by a contractor or
lender other than such Seller.
	 
	 	(5)	 	Loan in Force. The Mortgage Loan has not been
satisfied, canceled, subordinated or rescinded, in whole or in part, and the
Mortgaged Property has not been released from the lien of such Mortgage Loan,
in whole or in part, nor has any instrument been executed that would effect any
such release, cancellation, subordination or rescission.
	 
	 	(6)	 	Valid Lien. The Mortgage Loan has been duly executed
and delivered by the Mortgagor, and the lien created thereby has been duly
recorded, or has been delivered to the appropriate governmental authority for
recording, and constitutes a valid and perfected (i) first lien and first
priority security interest with respect to each Mortgage Loan which is
indicated by the applicable Seller to be a First Lien (as reflected on the
Mortgage Loan Data Transmission), or (ii) junior lien and junior priority
security interest with respect to each Mortgage Loan which is indicated by the
applicable Seller to be a Junior Lien (as reflected on the Mortgage Loan Data
Transmission) in either case on the related Mortgaged Property, and in each
case free and clear of all Liens (except the Existing Liens). Any security
agreement, chattel mortgage or equivalent document related to and delivered in
connection with the Mortgage Loan establishes and creates a valid, subsisting
and enforceable (i) first lien and first priority security interest with
respect to each Mortgage Loan which is indicated by the applicable Seller to be
a First Lien (as reflected on the Mortgage Loan Data Transmission), or
(ii) junior lien and junior priority security interest with respect to each
Mortgage Loan which is indicated by the applicable Seller to be a Junior Lien
(as reflected on the Mortgage Loan Data Transmission), in either case on the
related Mortgaged Property, and the applicable Seller has full right to assign
the same to the Purchaser. With respect to any Cooperative Loan, the related
Mortgage is a valid, subsisting and enforceable first priority security
interest on the related cooperative shares securing the Mortgage Note, subject
only to (a) liens of

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	 	 	 	the related residential cooperative housing corporation for unpaid
assessments representing the Mortgagor’s pro rata share of the related
residential cooperative housing corporation’s payments for its blanket
mortgage, current and future real property taxes, insurance premiums,
maintenance fees and other assessments to which like collateral is commonly
subject and (b) other matters to which like collateral is commonly subject
which do not materially interfere with the benefits of the security interest
intended to be provided by the related Co-op Security Agreement;
	 
	 	(7)	 	Good Title. The applicable Seller has good and
marketable title to the Mortgage Loan, free and clear of any encumbrance,
equity, loan, pledge, charge, claim or lien of any type, other than the
Existing Liens, and has full right to sell the Mortgage Loan to the Purchaser.
	 
	 	(8)	 	Compliance with Law. At the date of origination of the
Mortgage Loan, all requirements of any federal, state and local laws, rules and
regulations applicable to the origination and servicing of such Mortgage Loan,
including, without limitation, usury, truth in lending, predatory, deceptive or
abusive lending, disclosure, real estate settlement procedures, consumer
protection, equal credit opportunity, debt collection and credit reporting
laws.
	 
	 	(9)	 	HOEPA. The Mortgage Loan is not (i) subject to the
Home Ownership and Equity Protection Act of 1994 as amended (“HOEPA”);
(ii) a “high cost” loan, “covered” mortgage loan or “predatory” mortgage loan
or any other comparable term, no matter how defined, under any federal, state
or local law; or (iii) subject to any comparable federal, state or local law.
	 
	 	(10)	 	Licensing. The applicable Seller, whether as
mortgagee, assignee, pledgee or otherwise, are (or, during the period in which
they held and disposed of such interest, were) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the
Mortgaged Property is located.
	 
	 	(11)	 	Credit Reporting. The servicer for the Mortgage Loan
fully furnishes, in accordance with the Fair Credit Reporting Act and its
implementing regulations, accurate and complete information (i.e., favorable
and unfavorable) on its borrower credit files to Equifax, Experian and Trans
Union Credit Information Company on a monthly basis.
	 
	 	(12)	 	Enforceability; Remedies. Each Mortgage Loan contains
customary and enforceable provisions which render the rights and remedies of
the holder thereof adequate for the realization against the Mortgaged Property
of the benefits of the lien provided thereby, including, (i) in the case of a
mortgage designated as a deed of trust, by trustee’s sale, (ii) otherwise by
judicial foreclosure and (iii) foreclosure by advertisement.

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	 	(13)	 	One Original. Except as set forth on Exhibit 8, there
is only one original executed promissory note. Except as set forth on Exhibit
8, the Note, Assignment of Mortgage and any other documents required to be
delivered under the applicable Custodial Agreement for each Mortgage Loan have
been delivered to the Custodian.
	 
	 	(14)	 	Mortgage Submitted for Recordation. Except as set
forth on Exhibit 9, at origination, the Mortgage was submitted for recordation
in the appropriate governmental recording office of the jurisdiction where the
Mortgaged Property is located.
	 
	 	(15)	 	Collection Practices; Escrow Deposits. The
origination, collection and servicing practices used by the originator, each
servicer of the Mortgage Loan and the applicable Seller with respect to the
Mortgage Loan have been in all material respects in compliance with customary
mortgage servicing practices of prudent mortgage lending institutions which
service mortgage loans and residential real properties of the same type as the
Mortgage Loans and REO Properties and applicable laws and regulations, and have
been in all respects legal and proper.
	 
	 	(16)	 	No Government Mortgage Loans. The Mortgagor is not the
United States government or an agency, authority, instrumentality or other
political subdivision of the United States government.
	 
	 	(17)	 	Deeds of Trust. If the Mortgage Loan constitutes a
deed of trust, a trustee, duly qualified under applicable law to serve as such,
has been properly designated and currently so serves and is named in the
Mortgage Loan, and no fees or expenses are or will become payable by the
applicable Custodian or the Purchaser to the trustee under the deed of trust,
except in connection with a trustee’s sale after default by the related
Mortgagor.
	 
	 	(18)	 	Hazardous Substances. To the best of the applicable
Seller’s knowledge, the Mortgaged Property is free from any and all hazardous
substances, hazard wastes or solid wastes, as such terms are defined in the
Comprehensive Environmental Response Compensation and Liability Act, the
Resource Conservation and Recovery Act of 1976, or other federal, state or
local environmental legislation. To the best of the applicable Seller’s
knowledge, there is no violation of any local, state or federal environmental
law, rule or regulation with respect to the Mortgaged Property.
	 
	 	(19)	 	No Errors, Omissions, Etc. No misrepresentation, fraud
or similar occurrence with respect to the Mortgage Loan has taken place on the
part of the Servicer or any Seller.
	 
	 	(20)	 	Insurance Coverage. With respect to each Mortgage Loan
that is a First Lien, all buildings upon the Mortgaged Property are insured by
a generally

15

 

	 	 	 	acceptable insurer pursuant to standard hazard policies conforming to the
requirements of mortgage lending institutions in the jurisdiction where the
related Mortgaged Property is located. All such standard hazard policies
are in effect and on the date of origination contained a standard mortgagee
clause naming the applicable Seller and its successors in interest as loss
payee and such clause is still in effect. If the Mortgaged Property is
located in an area identified by the Federal Emergency Management Agency as
having special flood hazards under the Flood Disaster Protection Act of
1973, as amended, such Mortgaged Property is covered by flood insurance by a
generally acceptable insurer in an amount not less than the requirements of
mortgage lending institutions in the jurisdiction where the related
Mortgaged Property is located. The Mortgage obligates the Mortgagor
thereunder to maintain all such insurance at the Mortgagor’s cost and
expense, and on the Mortgagor’s failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor’s cost and expense
and to seek reimbursement therefor from the Mortgagor.
	 
	 	(21)	 	Title Insurance. Each Mortgage Loan that is a First
Lien is covered by an ALTA lender’s title insurance policy or other generally
acceptable form of policy of insurance, with all necessary endorsements, issued
by a title insurer qualified to do business in the jurisdiction where the
Mortgaged Property is located, insuring the applicable Seller, its successors
and assigns, as to the first priority lien of the Mortgage in the original
principal amount of the Mortgage Loan. Such title insurance policy
affirmatively insures ingress and egress and against encroachments by or upon
the Mortgaged Property or any interest therein. The applicable Seller is the
sole insured of such lender’s title insurance policy and such lender’s title
insurance policy is in full force and effect and will be in full force and
effect upon the consummation of the transactions contemplated by this
Agreement. No claims have been made under such lender’s title insurance
policy, and no prior holder of the related Mortgage has done, by act or
omission, anything which would impair the coverage of such lender’s title
insurance policy.
	 
	 	(22)	 	Marking Records. The applicable Seller has caused the
portions of their respective records relating to the Mortgage Loans to be
clearly and unambiguously marked to indicate that such Mortgage Loans have been
sold, transferred and assigned to the Purchaser.

          (b) The Sellers hereby represent and warrant to the Purchaser, with respect to each REO
Property, that as of the Closing Date or as of such date specifically provided herein:

	 	(1)	 	The information set forth in the REO Property Schedule and the
Mortgage Loan Data Transmission with respect to such REO Property is complete,
true and correct in all material respects.

16

 

	 	(2)	 	The applicable Seller is the sole owner and holder of the REO
Property and has the full right to transfer the REO Property, and the REO
Property is free and clear of any lien or encumbrance other than (A) liens for
real estate taxes not yet due and payable, (B) covenants, conditions and
restrictions, rights of way, easements and other matters of public record as of
the date of recording of the related security instrument, such exceptions
appearing of record being acceptable to prudent institutional lenders
generally, (C) other matters (excluding mortgage liens and any other lien which
can be satisfied by payment of a liquidated sum of money) to which like
properties are commonly subject which do not, individually or in the aggregate,
materially interfere with the use, enjoyment or marketability of the REO
Property, and (D) the Existing Liens.
	 
	 	(3)	 	Neither the Servicer nor any Seller has received any written
notice that there exists a violation of any local, state or federal
environmental law, rule or regulation with respect to the REO Property that
would have a material adverse effect on such REO Property.
	 
	 	(4)	 	All parties which have had any interest in the REO Property,
whether as owner, assignee, pledgee or otherwise, are (or, during the period in
which they held and disposed of such interest, were) in compliance with any and
all applicable licensing requirements of the laws of the state wherein the REO
Property is located and either (1)  organized under the laws of such state,
(2) qualified to do business in such state, (3) federal savings and loan
associations or national banks having principal offices in such state, or
(4) not required to be qualified to do business in such state under applicable
laws of the state.
	 
	 	(5)	 	The Deed and any other documents required to be delivered by
the applicable Seller under this Agreement have been delivered to Purchaser or
its designee. Such Seller is in possession of a complete, true and accurate
REO File, except for such documents the originals of which have been delivered
to Purchaser or its designee. The Deed is in recordable form and is acceptable
for recording under the laws of the jurisdiction in which the REO Property is
located.
	 
	 	(6)	 	Except as set forth on Exhibit 9, neither the Servicer nor any
Seller has received any written notice that there is any material condition
affecting any REO Property (x) relating to lead paint, radon, asbestos or other
hazardous materials, (y) requiring remediation of any condition or (z) relating
to a claim which could impose liability upon, diminish rights of or otherwise
adversely affect the Purchaser.
	 
	 	(7)	 	To the best of such Seller’s knowledge, there is no illegal
activity being conducted on the REO Property which could serve as the basis for
a claim or prosecution of any action or proceeding seeking to impose civil or
criminal liability on the Purchaser as the owner.

17

 

          With respect to the representations and warranties set forth in this Section 3.01 that are
made to the best of each Seller’s knowledge or as to which each Seller has no knowledge, or based
upon the lack of any Seller’s receipt of a written notice, if it is discovered by the Purchaser,
the Sellers, the Servicer, the Administrator or any Trustee that the substance of such
representation and warranty is inaccurate and such inaccuracy materially and adversely affects the
value of the related Mortgage Loan or REO Property or the interest therein of the Purchaser or the
Purchaser’s assignee, transferee or designee then, notwithstanding any Seller’s lack of knowledge
or notice with respect to the substance of such representation and warranty being inaccurate at the
time the representation or warranty was made, such inaccuracy shall be deemed a breach of the
applicable representation or warranty; provided, however, that this paragraph shall
not be assignable by the Purchaser with respect to any Assets sold by the Purchaser pursuant to
Section 9.02 of the Trust Agreement.

          It is understood and agreed that the representations and warranties set forth in this
Section 3.01 shall survive delivery of the respective Mortgage Files and REO Files to the
applicable Custodian on behalf of the Purchaser.

     Section 3.02 Sellers Representations and Warranties. Each Seller hereby represents
and warrants to the Purchaser that as of the Closing Date or as of such date specifically provided
herein:

          (a) Such Seller is duly organized, validly existing and in good standing as a corporation
under the laws of the State of Delaware and has the power and authority to own its assets and to
transact the business in which it is currently engaged. Such Seller is duly qualified to do
business and is in good standing in each jurisdiction in which the character of the business
transacted by it or properties owned or leased by it requires such qualification and in which the
failure to so qualify would have a material adverse effect on (a) its business, properties, assets
or condition (financial or other), (b) the performance of its obligations under this Agreement or
any other Transaction Document to which it is a party, (c) the value or marketability of the
Mortgage Loans or REO Property, or (d) its ability to foreclose on the related Mortgaged
Properties.

          (b) When executed and delivered, assuming necessary entity power and authority of each Seller,
this Agreement and each other Transaction Document to which it is a party will constitute such
Seller’s legal, valid and binding obligations enforceable in accordance with its terms, except as
enforcement of such terms may be limited by (1) bankruptcy, insolvency, reorganization,
receivership, moratorium or similar laws affecting the enforcement of creditors’ rights generally
and by the availability of equitable remedies, (2) general equity principals (regardless of whether
such enforcement is considered in a proceeding in equity or at law) or (3) public policy
considerations underlying the securities laws, to the extent that such policy considerations limit
the enforceability of the provisions of this Agreement which purport to provide indemnification
from securities laws liabilities.

          (c) Such Seller holds all necessary licenses, certificates and permits from all governmental
authorities necessary for conducting its business as it is presently conducted, except for such
licenses, certificates and permits the absence of which, individually or in the aggregate, would
not have a material adverse effect on the ability of such Seller to conduct its business as it is
presently conducted.

18

 

          (d) Assuming the due authorization thereof by each Seller, the execution, delivery and
performance of this Agreement or any other Transaction Document to which it is a party by such
Seller will not conflict with or result in a breach of, or constitute a default under, any
provision of any existing law or regulation or any order or decree of any court applicable to such
Seller or any of its properties or any provision of its certificate of incorporation, bylaws, or
constitute a material breach of, or result in the creation or imposition of any lien, charge or
encumbrance upon any of its properties pursuant to any mortgage, indenture, contract or other
agreement to which it is a party or by which it may be bound.

          (e) No certificate of an officer, written statement or report delivered pursuant to the terms
of this Agreement or any other Transaction Document to which it is a party by such Seller contains
any untrue statement of a material fact or omits to state any material fact necessary to make the
certificate, statement or report, in the light of the circumstances under which it is delivered or
made, not misleading.

          (f) [Reserved].

          (g) There are no actions or proceedings against, or investigations of, such Seller pending or,
to its actual knowledge, threatened (by written communication to it of a present intent to initiate
such action, proceeding or investigation), before any court, administrative agency or other
tribunal that, if determined adversely, would prohibit or materially and adversely affect such
Seller’s performance of any of its respective obligations under, or the validity or enforceability
of, this Agreement or any other Transaction Document to which it is a party.

          (h) Such Seller is not transferring the Mortgage Loans or REO Properties to the Purchaser
hereunder with any intent to hinder, delay or defraud any of its creditors.

          (i) Such Seller acquired title to the Mortgage Loans and REO Properties in good faith, without
notice of any adverse claims.

          (j) The transfer, assignment and conveyance of the Mortgage Notes, the Mortgages and the REO
Properties by such Seller pursuant to this Agreement are not subject to the bulk transfer laws or
any similar statutory provisions in effect in any applicable jurisdiction.

     Section 3.03 Remedies for Breach of Representations and Warranties.

          It is understood and agreed that the representations and warranties set forth in Sections 3.01
and 3.02 shall survive the sale, transfer and assignment of the Assets to the Purchaser and the
issuance of the Certificates, and shall inure to the benefit of the Purchaser, the Administrator,
the Trustees and the Certificateholders, notwithstanding any restrictive or qualified endorsement
on any Mortgage Note, Assignment of Mortgage or Deed or the examination or lack of examination of
any Mortgage File or REO File. Upon (i) discovery by any Seller of a breach of any of the
representations and warranties made in Section 3.01 or Section 3.02 which materially and adversely
affects the value of the Assets or the interest of the Purchaser (or which materially and adversely
affects the value of a Mortgage Loan or REO Property or the interests of the Purchaser in the
related Mortgage Loan or REO Property in the case of a representation and warranty relating to a
particular Mortgage Loan or REO Property) or

19

 

(ii) receipt by a Seller of notice from the Servicer that a Mortgaged Property or REO Property
is contaminated by hazardous or toxic substances (a “Servicer Environmental Notice”)
pursuant to Section 4.02 of the Servicing Agreement, such Seller shall give prompt written notice
to the Purchaser, the Administrator and the Trustees.

          Within (i) ten (10) days of receipt of a Servicer Environmental Notice or (ii) thirty (30)
days of the earlier of either discovery by any Seller, or notice to the applicable Seller, of any
breach of a representation or warranty which materially and adversely affects the value of a
Mortgage Loan or the Mortgage Loans or an REO Property or the REO Properties or the Purchaser’s
interest in a Mortgage Loan or the Mortgage Loans or an REO Property or the REO Properties, the
Sellers shall use their commercially reasonable efforts promptly to cure such breach in all
material respects and, if such breach cannot be cured, each Reacquisition Party shall, jointly and
severally, reacquire such Mortgage Loan or REO Property. In connection with the reacquisition of
any Asset, the price to be paid by the Reacquisition Parties for such Asset (the “Reacquisition
Price”) shall be as agreed upon by the Administrator and the applicable Reacquisition Party;
provided, however, should such parties not promptly come to agreement, the
Reacquisition Price shall be as determined by the Administrator in good faith using its sole
discretion. In the event that a breach shall involve any representation or warranty set forth in
Section 3.02 and such breach cannot be cured within thirty (30) days of the earlier of either
discovery by or notice to any Seller of such breach, all of the Assets shall, at the Trustees’
option, be reacquired by the Reacquisition Parties at the Reacquisition Price. Notwithstanding
anything to the contrary contained herein, it is understood by the parties hereto that a breach of
any of the representations and warranties made in Sections 3.01(a) (8), (9), (10) and (18) and
Section 3.01(b)(6) will be deemed to materially and adversely affect the value of the related
Mortgage Loan or REO Property, respectively, or the interest of the Purchaser therein.

          At the time of reacquisition of any deficient Mortgage Loan or REO Property by the
Reacquisition Parties, the Purchaser and the Reacquisition Parties shall arrange for the
reassignment of the reacquired Mortgage Loan or REO Property to the Reacquisition Parties and the
delivery to the Reacquisition Parties of any documents held by the applicable Custodian relating to
the reacquired Mortgage Loan or REO Property in each case at the Reacquisition Parties’ expense.
Upon such reacquisition the related Mortgage Loan Schedule or REO Property Schedule shall be
amended to reflect the withdrawal of the reacquired Mortgage Loan or REO Property from this
Agreement.

          In addition to such cure and reacquisition obligation, each Reacquisition Party shall, jointly
and severally, indemnify the Certificateholders, the Purchaser, the Administrator and the Trustees
and each of the respective assigns, offices, directors, agents and employees, and hold each of them
harmless against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments, and other costs and expenses resulting from any claim, demand,
defense or assertion based on or grounded upon, or resulting from, a breach of any Seller’s
representations and warranties made in Section 3.01 or Section 3.02. Notwithstanding anything set
forth in this Agreement, the Purchaser acknowledges that neither Franklin Credit Management
Corporation nor Franklin Credit Holding Corporation has any obligations or liabilities (except as
expressly provided with respect to Franklin Credit Management Corporation in the definition of
Reacquisition Party herein) to any Person arising out of the Asset reacquisition and indemnity
provisions contained in this Agreement, including

20

 

the Purchaser, the Trustees, the Administrator, the Certificateholders and each of their
respective assigns, officers, directors, agents and employees), and that all such obligations and
liabilities are retained by the other Reacquisition Parties.

          Any cause of action against any Seller relating to or arising out of the breach of any
representation or warranty made in Section 3.01 or Section 3.02 shall accrue as to any Mortgage
Loan or REO Property upon (i) discovery of such breach by any Seller or notice thereof to the
Sellers by the Purchaser, the Administrator or any Trustee and (ii) demand upon the Reacquisition
Parties by the Purchaser, the Administrator or any Trustee for compliance with the relevant
provisions of this Agreement.

     Section 3.04 Representations of Purchaser. The Purchaser hereby represents and
warrants to the Sellers as of the Closing Date:

          (a) The Purchaser is a statutory trust duly formed and in good standing under the laws of the
State Delaware and has full power, authority and legal right to execute and deliver this Agreement
and to perform its obligations under this Agreement, and has taken all necessary action to
authorize the execution, delivery and performance by it of this Agreement; and

          (b) The execution and delivery by the Purchaser of this Agreement and the performance by the
Purchaser of its obligations under this Agreement will not violate any provision of any law or
regulation governing the Purchaser or any order, writ, judgment or decree of any court, arbitrator
or governmental authority or agency applicable to the Purchaser or any of its assets. Such
execution, delivery, authentication and performance will not require the authorization, consent or
approval of, the giving of notice to, the filing or registration with, or the taking of any other
action with respect to, any governmental authority or agency regulating the activities of statutory
trusts. Such execution, delivery, authentication and performance will not conflict with, or result
in a breach or violation of, any mortgage, deed of trust, lease or other agreement or instrument to
which the Purchaser is bound.

ARTICLE IV.

SELLERS’ COVENANTS

     Section 4.01 Covenants of the Sellers.

          Each Seller hereby covenants that except for the sale, transfer and assignment hereunder, such
Seller will not sell, pledge, assign or transfer to any other Person, or grant, create, incur,
assume or suffer to exist any lien (other than the Existing Liens) on any Mortgage Loan or REO
Property, or any interest therein; the applicable Seller will notify the Purchaser, the
Administrator and the Trustees of the existence of any lien on any Mortgage Loan or REO Property
immediately upon discovery thereof, and the Reacquisition Parties will defend the right, title and
interest of the Purchaser, in, to and under the Mortgage Loans and REO Property, against all claims
of third parties claiming through or under any Seller; provided, however, that
nothing in this Section 4.01 shall prevent or be deemed to prohibit any Seller from suffering to

21

 

exist upon any of the Mortgage Loans or REO Property any liens for municipal or other local
taxes and other governmental charges if such taxes or governmental charges shall not at the time be
due and payable or if such Seller shall currently be contesting the validity thereof in good faith
by appropriate proceedings and shall have set aside on its books adequate reserves with respect
thereto.

ARTICLE V.

INDEMNIFICATION

     Section 5.01 Indemnification. Without limiting any other rights that the Purchaser or
any other Person may have hereunder or under applicable law, and in addition to the remedies
provided in Section 3.03, each Reacquisition Party hereby agrees, jointly and severally, to
indemnify (in such capacity, an “Indemnifying Party”) from and against, and pay upon demand
to, the Purchaser, the Administrator, the Trustees and the Certificateholders and each of their
respective assigns, officers, directors, agents and employees (in such capacity each, an
“Indemnified Party”), any and all damages, losses, claims, taxes, liabilities, costs,
expenses and for all other amounts which may become payable, including reasonable attorneys’ fees
and disbursements, as incurred all of the foregoing being collectively referred to as
“Indemnified Amounts” with respect to any such Indemnified Parties, or to which any of them
may become subject or may be awarded against or incurred by any of them arising out of or relating
to any of the following:

          (a) any representation or warranty made by a Seller (or any officers of a Seller) under or in
connection with this Agreement or any other Transaction Document which shall have been false or
incorrect in any material respect when made or deemed made;

          (b) any information, statement, report or other document furnished or to be furnished by a
Seller pursuant to this Agreement that contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements made, in the light of the
circumstances under which such statements were made, not misleading;

          (c) any failure of a Seller to perform its duties, covenants or other obligations in
accordance with the provisions of this Agreement or any other Transaction Document; and

          (d) any investigation, litigation, regulatory action or proceeding related to or arising from
this Agreement or any other Transaction Document, the transactions contemplated hereby or thereby,
the Assets or any other investigation, litigation, regulatory action or proceeding relating to any
Seller or any Assets in which any Indemnified Party becomes involved as a result of any of the
transactions contemplated hereby.

          Notwithstanding anything set forth in this Agreement, the Purchaser acknowledges that neither
Franklin Credit Management Corporation nor Franklin Credit Holding Corporation has any obligations
or liabilities (except as expressly provided with respect to Franklin Credit Management Corporation
in the definition of Reacquisition Party herein) to any Person arising out of the Asset
reacquisition and indemnity provisions contained in this Agreement, including the Purchaser, the
Trustees, the Administrator, the Certificateholders and

22

 

each of their respective assigns, officers, directors, agents and employees), and that all
such obligations and liabilities are retained by the Reacquisition Parties.

ARTICLE VI.

MISCELLANEOUS PROVISIONS

     Section 6.01 Amendment. This Agreement may be amended from time to time, with the
consent of the Administrator, by the Sellers and the Purchaser, by written agreement signed by the
Sellers and the Purchaser.

     Section 6.02 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

     Section 6.03 Notices. All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at or mailed by
registered mail, postage prepaid, addressed as follows:

if to the Sellers:

c/o Franklin Credit Management Corporation

101 Hudson Street

Jersey City, NJ 07302

Attention: Chief Operating Officer

Fax: 201-604-1818

with a copy to:

Franklin Credit Management Corporation

101 Hudson Street

Jersey City, NJ 07302

Attention: Chief Legal Officer

or such other address as may hereafter be furnished to the Purchaser in writing by the Sellers.

if to the Purchaser:

c/o The Huntington National Bank,

as Administrator

2361 Morse Road

NC3W67

Columbus, OH 43219

Attention: Special Assets

23

 

With a copy to:

The Huntington National Bank,

as Certificate Trustee

7 Easton Oval – EA4E63

Columbus, OH 43229

Attention: Corporate Trust

or such other address as may hereafter be furnished to the Sellers in writing by the Purchaser.

     Section 6.04 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be held invalid for any reason whatsoever,
then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement.

     Section 6.05 Counterparts. This Agreement may be executed in one or more counterparts
by the different parties hereto on separate counterparts, each of which, when so executed, shall be
deemed to be an original and such counterparts, together, shall constitute one and the same
agreement.

     Section 6.06 Further Agreements.

          The Purchaser and the Sellers all agree to execute and deliver to the other such additional
documents, instruments or agreements as may be necessary or reasonable and appropriate to
effectuate the purposes of this Agreement and the other Transaction Documents or in connection with
the issuance of any Certificates representing interests in the Assets. Such additional documents
include, but are not limited to, the execution of post-closing deeds, conveyance fee statements,
sales disclosure forms, powers of attorney and any and all other documents necessary or desirable
to transfer record title to the REO Properties into the Purchaser.

          Without limiting the generality of the foregoing, as a further inducement for the Purchaser to
purchase the Assets from the Sellers, the Sellers will provide to the Purchaser any and all
information and appropriate verification of information, whether through letters of its auditors
and counsel or otherwise, as the Purchaser shall request and will provide to the Purchaser such
additional representations and warranties, covenants, opinions of counsel, letters from auditors,
and certificates of public officials or officers of the Seller as are reasonably required by the
Purchaser.

     Section 6.07 Intention of the Parties. It is the intention of the parties that the
Purchaser is purchasing, and the Sellers are selling, transferring and assigning the Assets rather
than the pledging of the Assets by the Sellers to secure a loan by the Purchaser to the Seller.
The parties hereto each intend to treat the sale, transfer and assignment of the Assets for federal
income tax purposes as a sale, transfer and assignment to an entity that is treated as either a
disregarded entity or a partnership.

24

 

     Section 6.08 Successors and Assigns: Assignment of Purchase Agreement. This Agreement
shall bind and inure to the benefit of and be enforceable by the Sellers and the Purchaser. The
obligations of the Sellers under this Agreement cannot be assigned or delegated to a third party
without the express written consent of the Purchaser and the Administrator which consent shall be
at the Purchaser’s and Administrator’s respective discretion.

     Section 6.09 Survival. The representations and warranties set forth in Sections 3.01
and 3.02, the indemnification provisions in Section 3.03 and the provisions of Article V hereof
shall survive the purchase, sale, assignment and delivery of the Mortgage Loans and REO Properties
hereunder.

     Section 6.10 Limitations of Liability of Trustees. Notwithstanding anything to the
contrary, this Agreement has been countersigned by The Huntington National Bank not in its
individual capacity but solely in its capacity as Certificate Trustee of the Purchaser and in no
event shall The Huntington National Bank in its individual capacity have any liability or the
representations, warranties, covenants, agreements or other obligations of the Purchaser hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which
recourse shall be had solely to the assets of the Purchaser. For all purposes of this Agreement,
in the performance of its duties or obligations hereunder or in the performance of any duties or
obligations of the Purchaser hereunder, the Certificate Trustee shall be subject to, and entitled
to the benefits of, the terms and provisions of the Trust Agreement.

     Section 6.11 Third Party Beneficiaries. The Administrator, the Owner Trustee, the
Certificate Trustee and each Certificateholder shall each be considered a third-party beneficiary
of this Agreement, entitled to all the rights and benefits hereof as if it were a direct party to
this Agreement.

     Section 6.12 Conflict of Interest. The Certificate Trustee is authorized to serve in
multiple capacities in relation to the Purchaser, the Sellers and the Certificateholders (and their
permitted assigns), including as Administrator, Certificateholder, creditor of one or more Sellers
for which the Assets serve as collateral on certain loan(s), loan participant with a third party to
which one or more Sellers has pledged the Assets or a Certificate, as collateral agent for such
lenders or participants, and various other treasury management, interest rate management and
custodial capacities in relation thereto. Each Seller hereby (a) acknowledges that the Certificate
Trustee may serve in multiple capacities in relation to the Purchaser, including as described in
the immediately preceding sentence, and may receive separate compensation for each of these various
capacities, including fees and expense reimbursement, (b) waives any actual or potential conflicts
of interest that may arise in connection with the Certificate Trustee serving in any such capacity,
and (c) agrees that such waiver shall be binding upon its permitted assigns.

     Section 6.13 Nonpetition Covenant. Notwithstanding any prior termination of this
Agreement, the Sellers, by entering into this Agreement, agree that they shall not, before the date
that is one year and one day after the termination of the Purchaser, file or participate in the
filing of any petition against the Purchaser that could cause the Purchaser to be the subject of an
Insolvency Event. Nothing in this Agreement shall prohibit the Sellers from participating in or
filing proofs of claim in any such proceeding instituted by any other person.

25

 

          IN WITNESS WHEREOF, the Sellers and the Purchaser have caused their names to be signed to this
Transfer and Assignment Agreement by their respective officers thereunto duly authorized as of the
day and year first above written.

	 	 	 	 	 	 	 
	 	 	FRANKLIN MORTGAGE ASSET TRUST 2009-A,

      as Purchaser	 	 
	 
	 	 	 	 	 	 
	 	 	By: The Huntington National Bank, not in its individual

capacity but solely as Certificate Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Candada J. Moore	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Candada J. Moore	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	FRANKLIN CREDIT ASSET CORPORATION AND
TRIBECA LENDING CORP. AND EACH OF THEIR RESPECTIVE
SUBSIDIARIES LISTED ON SCHEDULE I,

      as Sellers	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alexander Gordon Jardin	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Alexander Gordon Jardin

Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	FRANKLIN CREDIT MANAGEMENT CORPORATION AND EACH OF ITS
RESPECTIVE SUBSIDIARIES LISTED ON SCHEDULE I,

      as Seller	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas J. Axon	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Thomas J. Axon	 	 
	 

	 	 	 	Title: President	 	 

[Transfer and Assignment Signature Page]

 

 

SCHEDULE I

LIST OF SUBSIDIARY SELLERS

Schedule I-1

 

 

SCHEDULE II

MORTGAGE LOAN SCHEDULE

[on file with Custodian, Trustees, Sellers and Purchaser]

Schedule II-1

 

 

SCHEDULE III

REO PROPERTY SCHEDULE

[on file with Custodian, Trustees, Sellers and Purchaser]

Schedule III-1

 

 

SCHEDULE IV

PUTBACK LITIGATION SCHEDULE

Schedule IV-1

 

 

EXHIBIT 1

SELLERS’ OFFICER CERTIFICATE

       I, Thomas J. Axon, hereby certify that I am the duly elected President of FRANKLIN CREDIT
ASSET CORPORATION, President of FRANKLIN CREDIT MANAGEMENT CORPORATION, Director of TRIBECA LENDING
CORP. AND President EACH OF THEIR RESPECTIVE SUBSIDIARIES LISTED ON SCHEDULE I (collectively the
“Sellers”), and further certify, on behalf of the Sellers as follows:

	 	1.	 	Each person who, as an officer or attorney-in-fact of any of
the Sellers, signed (a) the Transfer and Assignment Agreement (the
“Transfer and Assignment Agreement”), dated as of March 31, 2009, by
and between the Sellers and FRANKLIN MORTGAGE ASSET TRUST 2009-A (the
“Purchaser”); (b) the Servicing Agreement; (c) the Trust Agreement; and
(d) any other document delivered prior hereto or on the date hereof in
connection with the sale and servicing of the Assets in accordance with the
Transfer and Assignment Agreement, the Servicing Agreement or the Trust
Agreement was, at the respective times of such signing and delivery, and is as
of the date hereof, duly elected or appointed, qualified and acting as such
officer or attorney-in-fact, and the signatures of such persons appearing on
such documents are their genuine signatures.
	 
	 	2.	 	Attached hereto as Attachment I is a true and correct copy of
the resolutions duly adopted by the board of directors of the Sellers (the
“Resolutions”) with respect to the authorization and approval of the
sale, transfer, assignment and servicing of the Assets; said Resolutions have
not been amended, modified, annulled or revoked and are in full force and
effect on the date hereof.
	 
	 	3.	 	All of the representations and warranties of the Sellers
contained in Sections 3.01 and 3.02 of the Transfer and Assignment Agreement
were true and correct in all material respects as of the date of the Transfer
and Assignment Agreement and are true and correct in all material respects as
of the date hereof. In making representations and warranties as to due
authorization of the Transfer and Assignment Agreement, the Sellers relied on
the “imperative necessity” exception to the requirement of stockholder approval
that would otherwise apply under section 271 under the Delaware General
Corporation Law if the assignment of assets (or merger) were to be determined
to comprise a sale of all or substantially all of the assets of Franklin Credit
Holding Corporation.
	 
	 	4.	 	No proceedings looking toward merger, liquidation, dissolution
or bankruptcy of any of the Sellers are pending or contemplated.

Exhibit 1-1

 

 

	5.	 	The Sellers have performed all of their respective duties and
have satisfied all the conditions on their part to be performed or satisfied
prior to the Closing Date pursuant to the Transfer and Assignment Agreement.

     All capitalized terms used herein and not otherwise defined shall have the meaning assigned to
them in the Transfer and Assignment Agreement.

	 	 	 	 	 
	 	 	 
	 

	 	Name:
	 	Thomas J. Axon
	 

	 	Title:
	 	 President

Exhibit 1-2

 

 

EXHIBIT 2

[FORM OF OPINION OF COUNSEL TO THE SELLER]

______________________________

(Date)

FRANKLIN MORTGAGE ASSET TRUST 2009-A

[                ]

[                ]

	 	 	 	 	 
	 

	 	Re:
	 	Transfer and Assignment Agreement, dated as of March 31, 2009

     Gentlemen:

     I have acted as counsel to [SELLER], a                                          (the “Seller”), in connection
with the sale, transfer and assignment of certain mortgage loans and REO property by the Seller to
FRANKLIN MORTGAGE ASSET TRUST 2009-A (the “Purchaser”) pursuant to (i) the Transfer and
Assignment Agreement, dated as of March 31, 2009, between the Seller and the Purchaser (the
“Transfer and Assignment Agreement”) and (ii) [identify other documents]. Capitalized
terms not otherwise defined herein have the meanings set forth in the Transfer and Assignment
Agreement.

     In connection with rendering this opinion letter, I, or attorneys working under my direction,
have examined, among other things, originals, certified copies or copies otherwise identified to my
satisfaction as being true copies of the following:

	 	A.	 	The Transfer and Assignment Agreement;
	 
	 	B.	 	[The other Transaction Documents;]
	 
	 	C.	 	The Custodial Agreements;
	 
	 	D.	 	The Seller’s [Certificate of Incorporation and by-laws]
[certificate of limited partnership and limited partnership agreement], as
amended to date; and
	 
	 	E.	 	Resolutions adopted by the Board of Directors of the Seller
with specific reference to actions relating to the transactions covered by this
opinion (the “Board Resolutions”).

     For the purpose of rendering this opinion, I have made such documentary, factual and legal
examinations as I deemed necessary under the circumstances. As to factual matters, I have relied
upon statements, certificates and other assurances of public officials and of officers and other
representatives of the Seller, and upon such other certificates as I deemed appropriate, which
factual matters have not been independently established or verified by me. I have also assumed,
among other things, the genuineness of all signatures, the legal capacity of all natural persons,
the authenticity of all documents submitted to me as originals, and the conformity to original
documents of all documents submitted to me as copies and the authenticity of the originals of such
copied documents.

Exhibit 2-1

 

 

     On the basis of and subject to the foregoing examination, and in reliance thereon, and subject
to the assumptions, qualifications, exceptions and limitations expressed herein, I am of the
opinion that:

     1. The [Seller] [Servicer] has been duly [incorporated] [formed] and is validly existing and
in good standing under the laws of the State of                      with corporate power and authority
to own its properties and conduct its business as presently conducted by it. The Seller and the
Servicer have the corporate power and authority to service the Assets, [and to execute, deliver,
and perform its obligations under the Transfer and Assignment Agreement and the other Transaction
Documents to which it is a party (sometimes collectively, the “Agreements”)].

     2. Each Transaction Document has been duly and validly authorized, executed and delivered by
the Seller and the Servicing Agreement has been duly and validly authorized, executed and delivered
by the Servicer. [ok to qualify as appropriate]

     3. Each Transaction Document constitutes the valid, legal and binding obligations of the
Seller, and the Servicing Agreement constitutes the legal, valid and binding obligation of the
Servicer, enforceable against the Seller and the Servicer, as applicable, in accordance with its
respective terms. [ok to qualify as appropriate]

     4. No consent, approval, authorization or order of any state or federal court or government
agency or body is required for the execution, delivery and performance by the Seller or the
Servicer of any Transaction Document, or the consummation of the transactions contemplated by the
Transaction Documents, except for those consents, approvals, authorizations or orders which
previously have been obtained.

     5. Neither the servicing of the Assets by the Servicer as provided in the Servicing Agreement
and the other Transaction Documents, nor the fulfillment of the terms of or the consummation of any
other transactions contemplated in the Transaction Documents will result in a breach of any term or
provision of the [certificate of incorporation or by-laws] [certificate of limited partnership or
limited partnership agreement] of the Seller or the Servicer, or, to the best of my knowledge, will
conflict with, result in a breach or violation of, or constitute a default under, (i) the terms of
any indenture or other agreement or instrument known to me to which the Seller or the Servicer is a
party or by which it is bound, (ii) any State of Delaware or federal statute or regulation
applicable to the Seller or the Servicer, [ok to qualify as appropriate] or (iii) any order of any
State of                      or federal court, regulatory body, administrative agency or governmental
body having jurisdiction over the Seller or the Servicer, except in any such case where the
default, breach or violation would not have a material adverse effect on the Seller or the Servicer
or its ability to perform its obligations under any Transaction Document.

     6. There is no action, suit, proceeding or investigation pending or, to the best of my
knowledge, threatened against the Seller or the Servicer which, in my judgment, either in any one
instance or in the aggregate, would draw into question the validity of any Transaction Document or
which would be likely to impair materially the ability of the Seller or the Servicer to perform
under the terms of any Transaction Document.

Exhibit 2-2

 

 

     The opinions above are subject to the following additional assumptions, exceptions,
qualifications and limitations:

     A. I have assumed that all parties to the Transaction Documents other than the Servicer have
all requisite power and authority to execute, deliver and perform their respective obligations
under each of the Transaction Documents, and that the Transaction Documents have been duly
authorized by all necessary corporate action on the part of such parties, have been executed and
delivered by such parties. I have also assumed that the Transaction Documents constitute the
legal, valid and binding obligations of all parties.

     B. My opinion expressed in paragraph 3 above is subject to the qualifications that (i) the
enforceability of the Transaction Documents may be limited by the effect of laws relating to
(1) bankruptcy, reorganization, insolvency, moratorium or other similar laws now or hereafter in
effect relating to creditors’ rights generally, including, without limitation, the effect of
statutory or other laws regarding fraudulent conveyances or preferential transfers, and (2) general
principles of equity upon the specific enforceability of any of the remedies, covenants or other
provisions of the Transaction Documents and upon the availability of injunctive relief or other
equitable remedies and the application of principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) as such principles relate to,
limit or affect the enforcement of creditors’ rights generally and the discretion of the court
before which any proceeding for such enforcement may be brought; and (ii) I express no opinion
herein with respect to the validity, legality, binding effect or enforceability of provisions for
indemnification in the Agreements to the extent such provisions may be held to be unenforceable as
contrary to public policy.

     C. I have assumed, without independent check or certification, that there are no agreements or
understandings among the Sellers, the Purchaser and any other party which would expand, modify or
otherwise affect the terms of the documents described herein or the respective rights or
obligations of the parties thereunder.

     I am admitted to practice in the State of                     , and I render no opinion herein as to
matters involving the laws of any jurisdiction other than the State of Delaware, [Ohio] and the
Federal laws of the United States of America.

	 	 	 	 	 
	 

	 	Very truly yours,
	 	 

Exhibit 2-3

 

 

EXHIBIT 3

SECURITY RELEASE CERTIFICATION

     I. Release of Security Interest

                                             , hereby relinquishes any and all right, title and interest it may
have in and to the Mortgage Loans and REO Properties described in Exhibits A and B, respectively,
attached hereto upon purchase thereof by FRANKLIN MORTGAGE ASSET TRUST 2009-A from the Seller named
below pursuant to that certain Transfer and Assignment Agreement, dated as of March 31, 2009 (the
“Transfer and Assignment Agreement”) as of the date and time of receipt by
                                         of $                     for such Mortgage Loans and REO Properties (the
“Date and Time of Sale”), and certifies that all notes, mortgages, assignments and other
documents in its possession relating to such Mortgage Loans and REO Property have been delivered
and released to the Seller named below or its designees as of the Date and Time of Sale.
Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Transfer and Assignment Agreement.

     Name and Address of Financial Institution

          (Name)

          (Address)

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 

Exhibit 3-1

 

 

     II. Certification of Release

     The Seller named below hereby certifies to FRANKLIN MORTGAGE ASSET TRUST 2009-A that, as of
the Date and Time of Sale of the above mentioned Mortgage Loans and REO Properties to FRANKLIN
MORTGAGE ASSET TRUST 2009-A, the security interests in the Mortgage Loans and REO Properties
released by the above named corporation comprise all security interests (other than the Existing
Liens) relating to or affecting any and all such Mortgage Loans and REO Properties. The Seller
warrants that, as of such time, there are and will be no other security interests (other than the
Existing Liens) affecting any or all of such Mortgage Loans or REO Properties.

	 	 	 	 	 	 	 
	 	 	Seller	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Exhibit 3-2

 

 

EXHIBIT 4

ASSIGNMENT AND CONVEYANCE

     On this                      day of                     , 200_, [SELLER] (“Seller”) as the Seller under that
certain Transfer and Assignment Agreement, dated as of March 31, 2009 (the “Agreement”)
does hereby sell, transfer, assign, set over and convey to FRANKLIN MORTGAGE ASSET TRUST 2009-A as
Purchaser under the Agreement, without recourse, but subject to the Existing Liens and the terms of
the Agreement, all rights, title and interest of the Seller in, to and under (i) the Mortgage Loans
and REO Properties listed on the Mortgage Loan Schedule and REO Property Schedule, respectively,
attached hereto, including, without limitation, the related Servicing Files, Mortgage Files and REO
Files, (ii) deficiency judgments in favor of the related Seller and all rights and obligations
related thereto, and (iii) all accounts, general intangibles, chattel paper, instruments,
documents, money, deposit accounts, certificates of deposit, goods, letters of credit, advices of
credit, and investment property, consisting of, arising from, or relating to any of the foregoing
(collectively, the “Assets”), including all proceeds of any and all of the foregoing
(including the right to receive any Putback Litigation Proceeds). Pursuant to Section 2.03 of the
Agreement, the Seller has delivered to the Custodian the documents for each Mortgage Loan and REO
Property to be purchased as set forth in the Custodial Agreement. The contents of each related
Servicing File required to be retained by the Seller or the Servicer to service the Mortgage Loans
pursuant to the Servicing Agreement and thus not delivered to the Trustees are and shall be held in
trust by the Seller or the Servicer for the benefit of the Purchaser as the owner thereof. The
Seller’s possession of any portion of each such Servicing File is at the will of the Trustees and
the Administrator for the sole purpose of facilitating servicing of the related Mortgage Loan
pursuant to the Servicing Agreement, and such retention and possession by the Seller or the
Servicer shall be in a custodial capacity only. The ownership of each Mortgage Note, Mortgage, and
the contents of the Mortgage File and Servicing File is vested in the Purchaser and the ownership
of all records and documents with respect to the related Mortgage Loan prepared by or which come
into the possession of the Seller or the Servicer shall immediately vest in the Purchaser and shall
be retained and maintained, in trust, by the Seller or the Servicer at the will of the Trustees and
the Administrator in such custodial capacity only. Notwithstanding the foregoing, the rights to
pursue any Putback Litigation shall remain with the Seller in accordance with the provisions of
Section 2.01 of the Agreement.

     The Seller confirms to the Trustees and the Administrator that the representation and
warranties set forth in Sections 3.01 and 3.02 of the Agreement are true and correct with respect
to the Seller and the Mortgage Loans and REO Properties listed on the Mortgage Loan Schedule and
REO Property Schedule, respectively, attached hereto as of the date hereof, and that all statements
made in the Seller’s Officer’s Certificates and all attachments thereto remain complete, true and
correct in all respects as of the date hereof, and that the Mortgage Loan and REO Property
characteristics identified on the attached Mortgage Loan Schedule and REO Property Schedule,
respectively, are true and correct as of the date hereof.

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

Exhibit 4-1

 

 

	 	 	 	 	 	 	 
	 	 	[SELLER]	 	 
	 	 	(Seller)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Exhibit 3-2

 

 

EXHIBIT 5

[FORM OF NOTICE OF TERMINATION]

BY FAX WITH CONFIRMATION

	 	 	 
	Certificate Trustee

	 	Delaware Trustee
	Deutsche Bank National Trust Company

	 	Deutsche Bank Trust Company Delaware
	1761 East St. Andrew Place

	 	1011 Centre Road, Suite 200
	Santa Ana, California 92705-4934

	 	Wilmington, Delaware 19805
	Attention: Trust Administration – FM0801

	 	Attention: Corporate Trust Administration
	Facsimile: (714) 247-6478

	 	Facsimile: (302) 636-3399

March 31, 2009

Re: Termination Notice and Waiver pursuant to Section 9.1 of the Master Trust Agreement

     Reference is made to the Master Trust Agreement dated as of December 15, 2008 (the “Master
Trust Agreement”), among, Franklin Credit Management Corporation (“Franklin”), a Delaware
corporation, as a depositor, Tribeca Lending Corp. (“Tribeca”), a New York corporation, as
a depositor (each of Franklin and Tribeca, a “Depositor” and collectively the
“Depositors”), Deutsche Bank National Trust Company, a national banking association, as the
Certificate Trustee (not in its individual capacity but solely as Certificate Trustee, in such
capacity, the “Certificate Trustee”), and Deutsche Bank Trust Company Delaware, a Delaware
banking corporation, as Delaware Trustee (not in its individual capacity but solely as Delaware
Trustee, in such capacity, the “Delaware Trustee” and, collectively with the Certificate
Trustee, the “Trustees”). Capitalized terms used but not otherwise defined herein shall
have the respective meanings ascribed to such terms in the Master Trust Agreement.

     Pursuant to Section 9.1(a) of the Master Trust Agreement, the undersigned Owners, representing
100% of the Holders of Franklin Credit Trust Series I and 100% of the Holders of Tribeca Lending
Trust Series I (collectively, the “Trusts”) created by the Master Trust Agreement, hereby
give the Trustees notice of their intention to terminate and dissolve the Trusts, such termination
and dissolution to occur on March 31, 2009 (the “Termination Date”). The parties hereto
hereby (i) waive all requirements pursuant to Section 9.1(a) of the Master Trust Agreement or
otherwise regarding notice periods in respect the termination and dissolution of the Trusts on the
Termination Date and hereby acknowledge and agree that the Termination Date set forth above shall
be the Termination Date pursuant to the Master Trust Agreement, (ii) waive the requirement pursuant
to Section 9.1(c) of the Master Trust Agreement that the Certificate Trustee provide a Termination
Notice to the Certificateholders within five (5) business days following receipt of this notice and
(iii) direct the Delaware Trustee to cause the Certificate of Trust to be cancelled on April 21,
2009 or such later date as we may direct in writing in accordance with the provisions of Section
3810 of the Statutory Trust Statute.

Exhibit 5-1

 

 

     You are hereby directed to release all of the Transferred Assets as specified in the Release
Notice dated the date hereof, a copy of which is attached hereto as Exhibit A immediately upon
termination and dissolution of the Trusts.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK,
	 	 	as Certificateholder of 100% Percentage Interest
	 	 	of the Trust Certificates Issued by Franklin
	 	 	Credit Trust Series I
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title
	 
	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK,
	 	 	as Certificateholder of 100% Percentage Interest
	 	 	of the Trust Certificates Issued by Tribeca
	 	 	Lending Trust Series I
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title

[Acknowledged and Agreed:]

	 	 	 	 	 
	DEUTSCHE BANK NATIONAL	 	 
	TRUST COMPANY, not in its individual capacity
	but solely as Certificate Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	DEUTSCHE BANK TRUST COMPANY DELAWARE,
	not in its individual capacity but solely	 	 
	as Delaware Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Exhibit 5-2

 

 

EXHIBIT A

[Release Notice]

Exhibit 5-3

 

 

EXHIBIT 6

FORM OF RELEASE NOTICE

March 31, 2009

	 
	Bank of America National Association, as

	successor by merger to LaSalle Bank National

	Association,

	as Custodian

	2571 Busse Road, Suite 200

	Elk Grove Village, IL 60007

	Attention: Christian Claffy

	 

	U.S. Bank
National Association,

	as Custodian

	1133 Rankin Street, Suite 100

	St. Paul, MN 55116

	Attention: Patrick Garay-Heelan

	 

	With a copy to:

	 

	Deutsche Bank National Trust Company, as

	Certificate Trustee

	1761 East St. Andrew Place

	Santa Ana, California 92705-4934

	Attention: Trust Administration – FM0801

	 	 	 	 	 	 	 
	 

	 	Re:
	 	Release and Transfer of Assets to Franklin	 	 
	 

	 	 	 	Mortgage Asset Trust 2009-A	 	 
	 

	 	 	 	 

	 	 

Ladies and Gentlemen:

     Reference is hereby made to that certain Master Trust Agreement dated as of December 15, 2008
(the “Trust Agreement”) by and among Franklin Credit Management Corporation (“FCMC”), as a
depositor, Tribeca Lending Corp. (“Tribeca”), as a depositor (each a “Depositor” and collectively
the “Depositors”), Deutsche Bank National Trust Company, as certificate trustee (the “Certificate
Trustee”), and Deutsche Bank Trust Company Delaware, as Delaware trustee (the “Delaware Trustee”).
Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Trust
Agreement.

     The Certificateholders hereby direct each Custodian to release the assets identified on
Schedule A-1 and A-2 attached hereto (the “Assets”) in each case as of the date hereof and
simultaneously with such release, subject to the rights of the Agent, as defined under the
Custodial Agreement, the undersigned Certificateholders hereby direct you to deposit all such
Assets immediately as directed by the Depositors below.

Exhibit 6-1

 

 

     The undersigned Depositors hereby direct each Custodian to deposit, subject to the rights of
the Agent, as defined under the Custodial Agreement, all such Assets immediately into the Franklin
Mortgage Asset Trust 2009-A pursuant to that certain Transfer and Assignment Agreement dated as of
March 31, 2009, by and among Franklin Credit Asset Corporation, FCMC, Tribeca and each of their
respective subsidiaries party thereto and the Franklin Mortgage Asset Trust 2009-A.

[SIGNATURE PAGE FOLLOWS]

Exhibit 6-2

 

 

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK,
	 	 	as Certificateholder of 100% Percentage Interest
	 	 	of the Trust Certificates Issued by Franklin Credit
	 	 	Trust Series I
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK,
	 	 	as Certificateholder of 100% Percentage Interest
	 	 	of the Trust Certificates Issued by Tribeca
	 	 	Lending Trust Series I
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	FRANKLIN CREDIT MANAGEMENT
	 	 	CORPORATION,
	 	 	as Depositor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:   Thomas J. Axon
	 

	 	 	 	Title:   President
	 
	 	 	 	 
	 	 	TRIBECA LENDING CORP.,
	 	 	as Depositor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:   Alexander Gordon Jardin
	 

	 	 	 	Title:   Chief Executive Officer

Exhibit 6-2

 

 

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED:	 	 
	 
	 	 	 	 
	BANK OF AMERICA NATIONAL	 	 
	ASSOCIATION, as successor by merger to	 	 
	LaSalle Bank National Association,	 	 
	as Custodian	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION	 	 
	as Custodian	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	DEUTSCHE BANK NATIONAL TRUST	 	 
	COMPANY,	 	 
	as Certificate Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

Exhibit 6-3

 

 

The undersigned consent and approval of the terms and conditions of the above Release Notice to the
extent such consent and approval is required by:

       Such consent and approval is hereby given by the undersigned to the extent required by:

	 	1.	 	That certain First Amended and Restated Tribeca Forbearance Agreement and
Amendment to Credit Agreements, dated December 19, 2008, among the borrowers listed on
schedule 1 thereto (including Tribeca), FCMC, Franklin Credit Holding Corporation, and
Huntington;
	 
	 	2.	 	That certain First Amended and Restated Forbearance Agreement and Amendment to
Credit Agreements, dated December 19, 2008, among the borrowers listed on schedule 1
thereto, FCMC, Franklin Credit Asset Corporation, Franklin Credit Holding Corporation,
and Huntington (collectively with the forbearance agreement described above, the
“Forbearance Agreements”);
	 
	 	3.	 	That certain Master Trust Agreement (the “Master Trust”) among FCMC, Tribeca,
Deutsche Bank National Trust Company, and Deutsche Bank Trust Company Delaware, dated
December 15, 2008;
	 
	 	4.	 	That certain Security Agreement, dated as of November 15, 2007, by FCMC, each
entity listed on the signature pages thereto, and each entity that has executed a
Joinder Agreement thereto (as amended, supplemented, restated or modified from time to
time), along with any Pledge Amendment related thereto;
	 
	 	5.	 	That certain Security Agreement, dated as of December 28, 2007, by Tribeca,
each entity listed on the signature pages thereto, and each entity that has executed a
Joinder Agreement thereto (as amended, supplemented, restated or modified from time to
time), along with any Pledge Amendment related thereto; and
	 
	 	6.	 	Any other Loan Document (as defined in the Forbearance Agreements).

[SIGNATURE PAGE FOLLOWS]

Exhibit 6-4

 

 

	 	 	 	 	 
	FRANKLIN CREDIT MANAGEMENT CORPORATION	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Thomas J. Axon
	 	 
	Title:

	 	President	 	 
	 
	 	 	 	 
	TRIBECA LENDING CORP.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Alexander Gordon Jardin
	 	 
	Title:

	 	Chief Executive Officer	 	 
	 
	 	 	 	 
	Each entity listed on Schedule 1 attached hereto:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Alexander Gordon Jardin
	 	 
	Title :

	 	 Chief Executive Officer, as an authorized officer	 	 
	 

	 	of, and on behalf of, each entity listed on Schedule 1 attached hereto
	 
	 	 	 	 
	FRANKLIN CREDIT ASSET CORPORATION	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Alexander Gordon Jardin
	 	 
	Title:

	 	Chief Executive Officer	 	 
	 
	 	 	 	 
	FRANKLIN CREDIT HOLDING CORPORATION	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Thomas J. Axon
	 	 
	Title:

	 	President	 	 
	 
	 	 	 	 
	FRANKLIN ASSET, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

Exhibit 6-5

 

 

SCHEDULE A

ASSET SCHEDULE

Exhibit 6-6

 

 

EXHIBIT 7

[FORM OF REGISTRATION INSTRUCTION LETTER]

Exhibit 7-1

 

 

EXHIBIT 8

CUSTODIAN EXCEPTION REPORTS

Exhibit 8-1

 

 

EXHIBIT 9

EXCEPTIONS TO LOAN LEVEL AND REO REPRESENTATIONS AND WARRANTIES

None

Exhibit 9-1EX-10.3

Exhibit 10.3

CONTRIBUTION AGREEMENT

          CONTRIBUTION AGREEMENT, dated as of March 31, 2009 (this “Agreement”), between
Franklin Asset, LLC, a Delaware limited liability company (“Parent”) and Franklin Asset
Merger Sub, LLC , a Delaware limited liability company (“Merger Sub”).

W I T N E S S E T H

          WHEREAS, the Board of Directors of Parent has deemed it advisable and to the advantage of
Parent that Parent contribute the rights (defined below) to Merger Sub;

          NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties
hereto hereby agree as follows:

          1. Capital Contribution. Parent hereby contributes, transfers, assigns and
otherwise conveys to Merger Sub without recourse to Parent all of its rights, title and interest in
and to the following: the trust certificates set forth on Exhibit A hereto, and all amounts
(including accrued interest) due or to become due thereunder from and after the date hereof (the
“Contributed Assets”).

          2. Governing law. This Agreement shall be governed by, and construed and interpreted
in accordance with, the laws of the State of Delaware, without giving effect to the principles of
conflicts of laws thereof.

          3. Miscellaneous.

               (A) Each of Parent and Merger Sub shall use its commercially reasonable efforts to take, or
cause to be taken, such action, to execute and deliver, or cause to be executed and delivered, such
additional documents and instruments and to do, or cause to be done, all things necessary, proper
or advisable under the provisions of this Agreement to consummate and make effective the
transactions described in this Agreement.

               (B) This Agreement will be binding upon and will inure to the benefit of Parent and Merger
Sub and their respective successors and permitted assigns.

               (C) This Agreement may be executed in any number of counterparts by the parties hereto, and
all of said counterparts when taken together shall be deemed to constitute one and the same
instrument, it being understood that all the parties need not sign the same counterpart.

               (D) This Agreement embodies the entire agreement and understanding between Parent and Merger
Sub with respect to its subject matter and supersedes all prior agreements and understandings,
written and oral, between Parent and Merger Sub related to that subject matter. This Agreement and
the obligations of the parties under this Agreement may be amended, waived and discharged only by
an instrument in writing executed by the party against which enforcement of the amendment, waiver
or discharge is sought.

1

 

               (E) The determination that any provision of this Agreement is invalid or unenforceable will
not affect the validity or enforceability of the remaining provisions or of that provision under
other circumstances. Any invalid or unenforceable provision will be enforced to the maximum extent
permitted by law.

               (F) This Agreement will be binding upon the parties and their respective successors and
assigns and will insure to the benefit of the parties and their respective successors and assigns.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

2

 

          IN WITNESS WHEREOF, each of the undersigned has caused this Contribution Agreement to be duly
executed and delivered by its duly authorized officer as of the day and year first above written.

	 	 	 	 	 
	 	FRANKLIN ASSET, LLC

as Parent

 	 
	 	By:  	
/s/ Alexander Gordon Jardin	 
	 	 	Name: 	Alexander Gordon Jardin	 
	 	 	Title: 	Chief Executive Officer	 
	 
	 	FRANKLIN ASSET MERGER SUB,

LLC, as Merger Sub

 	 
	 	By:  	/s/ Alexander Gordon Jardin	 
	 	 	Name:  	Alexander Gordon Jardin	 
	 	 	Title:  	Chief Executive Officer	 

 

 

	 	 	 	 	 

Exhibit A

Contributed Assets

	•	 	Class A Certificate No. 3, Franklin Mortgage Asset Trust 2009-A

	•	 	Class REO Certificate No. 3, Franklin Mortgage Asset Trust 2009-A

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