Document:

EX-10.4

Exhibit 10.4

Execution Copy

AGREEMENT AND PLAN OF MERGER

     This Agreement and Plan of Merger (this “Agreement”) is entered into as of March 31,
2009, by and among Huntington Capital Financing, LLC (“Huntington Capital Financing”), HCFFL, LLC
(“HCFFL LLC”), Franklin Asset, LLC (“Franklin LLC”), Franklin Asset Merger Sub, LLC (“Merger Sub”),
Franklin Credit Holding Corporation (“Franklin Holding”) solely for the purposes of covenants made
by it in Section 10(b), and Franklin Credit Asset Corporation, Tribeca Lending Corp., and each of
their respective subsidiaries listed on Schedule I (the “Franklin Entities”). (HCFFL LLC and
Merger Sub are sometimes hereinafter referred to as the “Constituent Entities.”).

Recitals:

     A. Ownership of HCFFL LLC. HCFFL LLC is a wholly owned subsidiary of Huntington
Capital Financing.

     B. Ownership of Merger Sub. Merger Sub is a wholly owned subsidiary of Franklin LLC.

     C. Merger. The parties desire that HCFFL LLC shall acquire Merger Sub by a merger of
Merger Sub with and into HCFFL LLC, in accordance with the terms and conditions contained in this
Agreement.

Agreement:

     In consideration of the foregoing Recitals, which shall form a part of this Agreement, and the
mutual covenants contained herein, the parties hereby agree as follows:

     1. The Merger. Subject to the terms and conditions of this Agreement and in
accordance with Sections 92A.100 and 92A.150 of the Nevada Revised Statutes (the “NRS”) and Section
18-209 of the Delaware Limited Liability Company Act (the “Delaware Act”), at the Effective Time
(as defined in Section 4 hereof), Merger Sub shall be merged with and into HCFFL LLC (the
“Merger”). HCFFL LLC shall be the surviving entity in the Merger (sometimes hereinafter referred
to as the “Surviving Entity”), shall continue its existence as a limited liability company under
the laws of the State of Nevada, and shall continue to operate under the name “HCFFL, LLC”
following the consummation of the Merger. At the Effective Time, the separate existence of Merger
Sub shall cease.

     2. Articles of Organization; Operating Agreement. The articles of organization and
operating agreement of HCFFL LLC in effect at the Effective Time shall be the articles of
organization and operating agreement of Surviving Entity after the Effective Time and until
thereafter duly altered, amended, or repealed in accordance with the provisions thereof and
applicable law.

 

 

     3. Conversion, Exchange, Extinguishment of Membership Interests and Shares,
and Contributions by Huntington.

          (a) HCFFL LLC Interests. All of the membership interests in HCFFL LLC issued and
outstanding immediately prior to the Effective Time shall remain issued and outstanding after the
Effective Time and shall continue to be owned by Huntington Capital Financing.

          (b) Merger Sub Interests. At the Effective Time, the membership interests of Merger
Sub issued and outstanding immediately prior to the Effective Time shall be cancelled and
extinguished and in exchange therefor the holders thereof shall be entitled to receive, by virtue
of the Merger and without any action on the part of the holders thereof, the following
consideration:

               (1) 7 of the Common Shares of Huntington Capital Financing; and

               (2) 4,724.1330831 of the Class C Preferred Shares of Huntington Capital
Financing.

          (c) Transfer of Certificates; Payment of Consideration. On the Closing Date,
Huntington Capital Financing shall deliver to Franklin LLC certificates representing the number of
shares of Huntington Capital Financing Common Shares and Class C Preferred Shares (the “Huntington
Capital Financing Stock”) to which it is entitled as specified in paragraph (b) above.

          (d) Restricted Shares. The certificates evidencing shares of Huntington Capital
Financing Stock to be issued to Franklin LLC at Closing shall bear the following legend in
conspicuous type:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY
STATE SECURITIES LAWS. SUCH SHARES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION WITHOUT AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION OR QUALIFICATION
IS NOT REQUIRED.

          (e) Transfers by Huntington. On the Closing Date, The Huntington National
Bank shall cause to be transferred by the existing members of Huntington Capital Financing
the assets listed on Schedule 3(e) in exchange for 1,298.638625337070 of the Common
Shares of Huntington Capital Financing (the “Huntington Transfer”).

     4. Closing. The closing shall take place on or before March 31, 2009, or such later
date as the parties may agree (the “Closing Date”). Upon the execution and delivery of all such
documents and the performance of all such obligations, including the obligations of The Huntington
National Bank and Huntington Capital Financing contained in Section 3(e), HCFFL LLC shall cause
Certificates of Merger to be filed with the Secretary of State of Nevada and the

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Secretary of State of Delaware. The Merger shall become effective at 11:59 p.m. local time on
the date on which such Certificates of Merger are filed (the “Effective Time”).

     5. Effect of the Merger. At the Effective Time, the Merger shall have the effects
provided for herein and in Section 92A.250 of the NRS and Section 18-209 of the Delaware Act.
Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, the
separate existence of Merger Sub shall cease; all assets and property of any kind, real, personal,
and mixed, tangible and intangible, choses in action, rights, licenses, permits, and contract
rights, then owned by each Constituent Entity, or which would inure to either of them, shall
immediately, by operation of law and without any conveyance, transfer, or further action, become
the assets and property of the Surviving Entity. All rights and obligations of the Constituent
Entities shall remain unimpaired and the Surviving Entity shall succeed to all such rights and
obligations.

     6. Further Actions. If, at any time after the Effective Time, the Surviving Entity
shall consider or be advised that any further assignments or assurances in law or any other acts
are necessary or desirable (a) to vest, perfect or confirm, of record or otherwise, in the
Surviving Entity, title to and possession of any property or right of Merger Sub acquired or to be
acquired by reason of, or as a result of, the Merger, or (b) to carry out otherwise the purpose of
this Merger Agreement, Merger Sub and its officers and directors shall be deemed to have granted
hereby to the Surviving Entity an irrevocable power of attorney to execute and deliver all such
proper deeds, assignments and assurances in law and to do all acts necessary or proper to vest,
perfect or confirm title to and the possession of such property or rights in the Surviving Entity
and otherwise to carry out the purposes of this Agreement; and the proper officers of the Surviving
Entity are hereby fully authorized in the name of the Surviving Entity or otherwise to take any and
all such action.

     7. Representations And Warranties of the Franklin Entities.

     (a) The Franklin Entities jointly and severally represent and warrant to Huntington Capital
Financing and HCFFL LLC as follows:

          (1) Power and Authority. With the exception of obtaining any authorization of the
shareholders of Franklin Holding that may be required, the Agreement has been duly authorized by
all required corporate action by the Franklin Entities and constitutes a valid and binding
obligation of each of the Franklin Entities. With the exception of obtaining any authorization of
the shareholders of Franklin Holding that may be required, the execution of this Agreement and the
consummation of all transactions contemplated by this Agreement will not result in a violation of
any of the terms or provisions of any indenture or other agreement to which any of the Franklin
Entities may be a party or by which any of the Franklin Entities or their property may otherwise be
bound or of any law, rule, license, regulation, judgment, order, or decree governing or affecting
any of the Franklin Entities or their property.

- 3 -

 

     (b) Franklin LLC represents and warrants to Huntington Capital Financing and HCFFL LLC as
follows:

               (1) Franklin LLC is aware of the kind of information regarding Huntington
Capital Financing that would be available in a registration statement filed under
the provisions of the 1933 Act and Franklin LLC has had access to the same kind of
information about Huntington Capital Financing that would be available in such a
registration statement and any additional information necessary to verify the
accuracy of such information;

               (2) Franklin LLC has had an opportunity to discuss Huntington Capital
Financing’s business, management, financial affairs and the terms and conditions of
the offering of the shares with Huntington Capital Financing’s management and that
no requested information, oral or written, has been withheld from Franklin LLC;

               (3) Franklin LLC is aware that the shares of Huntington Capital Financing Stock
to be issued under this Agreement have not been registered under either federal or
state securities laws in reliance on certain exemptions and, accordingly, the shares
may not be sold or otherwise transferred in the absence of such registration or
qualification without an opinion of counsel satisfactory to Huntington Capital
Financing that such registration or qualification is not required;

               (4) Franklin LLC understands that (A) in reliance upon the representations made
by Franklin LLC herein, the Huntington Capital Financing Stock has not been
registered under the 1933 Act or any state securities laws, (B) since the Huntington
Capital Financing Stock has not been registered, Franklin LLC must bear the economic
risk of holding the Huntington Capital Financing Stock and may not be able to
liquidate its investment in the Huntington Capital Financing Stock, and (C) there is
not presently a trading market for the Huntington Capital Financing Stock, and there
is no assurance that such market will exist in the future;

               (5) Franklin LLC is aware that there are economic variables and risks that
could adversely affect an investment in Huntington Capital Financing Stock, and that
Franklin LLC has relied primarily on Franklin LLC’s own independent analysis to make
an investment decision with respect to the Huntington Capital Financing Stock; and

               (6) Franklin LLC is acquiring the Huntington Capital Financing Stock for
Franklin LLC’s own account, for investment only, and not with a view to or for the
sale, distribution, or fractionalization thereof.

It is understood that Huntington Capital Financing will rely upon these representations and
warranties in accepting the terms of this Agreement and that such representations and warranties

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will survive the execution and delivery of this Agreement and the closing of the transactions
contemplated by this Agreement.

     8. Representations and Warranties of Merger Sub, Franklin LLC and the Franklin
Entities. Merger Sub, Franklin LLC and the Franklin Entities jointly and severally represent
and warrant to Huntington Capital Financing and HCFFL LLC as follows:

          (a) Organization and Standing. Merger Sub is a limited liability company validly
existing and in good standing under the laws of the State of Delaware and is entitled to own or
lease its properties and to carry on its business as and in the places where such properties are
now owned, leased, or operated or such business is now conducted. The copies of the certificate of
formation and operating agreement of Merger Sub previously delivered to Huntington Capital
Financing constitute true, correct, and complete copies of Merger Sub’s certificate of formation
and operating agreement and reflect all amendments thereto through and including the date of this
Agreement.

          (b) Capitalization. Franklin LLC is the sole legal and beneficial owner of all the
authorized and issued membership interests of Merger Sub, all such issued membership interests have
been validly issued and are fully paid and non-assessable. Except as set forth on Schedule
8(b), Franklin LLC owns, free and clear of any lien, encumbrance, charge, restriction or
adverse claim whatsoever, all of the authorized and issued membership interests of Merger Sub, and
Franklin LLC has the sole right to transfer, sell or encumber such interests; and as of the Closing
Date, Franklin LLC will own, free and clear of any lien, encumbrance, charge, restriction or
adverse claim whatsoever, all of the issued and outstanding membership interests in Merger Sub, and
will have the sole right to transfer, sell or encumber such interests. No interests of Merger Sub
were issued in violation of any preemptive or other rights of any present or past member of Merger
Sub.

          (c) Options and Warrants. There are no outstanding options or warrants or other
agreements or arrangements to acquire any interests of Merger Sub, nor are there outstanding any
rights or privileges, preemptive or contractual, to acquire such interests.

          (d) Assets of Merger Sub. Merger Sub owns only the assets listed on Schedule
8(d) (the “Merger Sub Assets”). Merger Sub has no liabilities or obligations of any nature,
whether known or unknown, absolute, accrued, contingent, or otherwise and whether due or to become
due, asserted or unasserted, matured or unmatured.

          (e) Authorization; Waiver of Dissenters’ Rights. Franklin LLC, as the sole member of
Merger Sub, has duly approved and adopted this Agreement and Plan of Merger. Franklin LLC and the
Franklin Entities have waived any and all rights as dissenting holders with respect to the Merger
under the NRS and the Delaware Act. All limited liability company action necessary for the
consummation of the transactions described in this Agreement have been taken and this Agreement
constitutes a valid and binding obligation of Merger Sub. The copies of the resolutions of
Franklin LLC, as the sole member of Merger Sub, previously delivered to Huntington Capital
Financing are true and correct.

- 5 -

 

          (f) Noncontravention. With the exception of obtaining any authorization of the
shareholders of Franklin Holding that may be required, this Agreement and all transactions
contemplated by this Agreement will not result in a violation of or be in conflict with any of the
terms or provisions of the certificate of formation or operating agreement of Merger Sub, or of any
agreement to which any of the Franklin Entities may be a party or by which any of the Franklin
Entities may otherwise be bound or of any law, rule, license, regulation, judgment, order, or
decree governing or affecting the operation of the business, nor will the same constitute an event
permitting termination of any agreement, or the acceleration of any indebtedness.

          (g) Taxes. No election has been made to treat Merger Sub as an association taxable as
corporation, or as anything other than a disregarded entity owned by Franklin LLC, for U.S.
federal, state and local tax purposes under Section 301.7701-2 of the U.S. Income Tax Regulations
(the “Regulations”) or any similar provision of state or local law. Franklin LLC is organized as a
limited liability company, and all of the membership interests of Franklin LLC are owned by the
Franklin Entities. The Franklin Entities are all members of an affiliated group of corporations
within the meaning of Section 1504 of the Internal Revenue Code of 1986, as amended (the “Code”),
that files a consolidated income tax return for U.S. federal income tax purposes with Franklin
Holding as its parent corporation, and each of the Franklin Entities is a member of such affiliated
group. The Franklin Entities will at all times treat Franklin LLC as a partnership for U.S.
federal income tax purposes and take no actions inconsistent with Franklin LLC’s classification as
a partnership for U.S. tax federal income purposes. The assets held by Merger Sub were transferred
by the Franklin Entities to Franklin LLC in a transaction qualifying under Section 721 of the Code
in which no gain or loss was recognized by the transferors. Prior to such transfer by the Franklin
Entities to Franklin LLC, the Merger Sub Assets had not been transferred by the Franklin Entities.

     9. Representations and Warranties of Huntington Capital Financing and HCFFL LLC.
Huntington Capital Financing and HCFFL LLC jointly and severally represent and warrant to Merger
Sub, Franklin LLC and the Franklin Entities as follows:

          (a) Organization and Standing. Huntington Capital Financing is a Nevada limited
liability company duly organized, validly existing, and in good standing under the laws of the
State of Nevada. HCFFL LLC is a Nevada limited liability company duly organized, validly existing,
and in good standing under the laws of the State of Nevada.

          (b) Capitalization of HCFFL LLC. All of the issued and outstanding interests of HCFFL
LLC are owned by Huntington Capital Financing.

          (c) Capitalization of Huntington Capital Financing. The authorized shares of
Huntington Capital Financing consist of the following:

               (i) 6,305.638625337070 units designated as “Common Shares,” of which 5,000 are issued
and outstanding;

               (ii) 1,000 units designated as “Class A Preferred Shares”, with a liquidation value of
$1,000 per share, of which all are issued and outstanding;

               (iii) 5,000,000 units designated as “Class B Preferred Shares”, with a liquidation
value of $1,000 per share, of which all are issued and outstanding; and

               (iv) 4,724.1330831 units designated as “Class C Preferred Shares,”

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with a liquidation value of $100,000 per share, of which none are issued and
outstanding.

          (d) Authority of HCFFL LLC; Noncontravention. The board of directors of HCFFL LLC
has, by unanimous vote, duly approved the execution, delivery, and performance of this Agreement
and the plan of merger contained herein. This Agreement and all transactions contemplated by this
Agreement will not result in a violation of the articles of organization or operating agreement of
HCFFL LLC or any of the terms or provisions of any indenture or other agreement to which HCFFL LLC
may be a party or by which it may otherwise be bound or any law, rule, license, regulation,
judgment, order, or decree governing or affecting the operation of its business. All limited
liability company action on the part of HCFFL LLC necessary for the consummation of the
transactions described in this Agreement will have been taken prior to Closing and upon the taking
of such action, this Agreement constitutes a valid and binding obligation of HCFFL LLC.

          (e) Authority of Huntington Capital Financing; Noncontravention. The board of
directors of Huntington Capital Financing has, by unanimous vote, duly approved the execution,
delivery, and performance of this Agreement and the plan of merger contained herein. This
Agreement and all transactions contemplated by this Agreement will not result in a violation of the
articles of organization or operating agreement of Huntington Capital Financing or any of the terms
or provisions of any indenture or other agreement to which Huntington Capital Financing may be a
party or by which it may otherwise be bound or any law, rule, license, regulation, judgment, order,
or decree governing or affecting the operation of its business. All limited liability company
action on the part of Huntington Capital Financing necessary for the consummation of the
transactions described in this Agreement will have been taken prior to Closing and upon the taking
of such action, this Agreement constitutes a valid and binding obligation of Huntington Capital
Financing.

          (g) Huntington Capital Financing Stock. The Huntington Capital Financing Stock to be
delivered upon the consummation of the transactions contemplated by this Agreement will, when so
delivered, be validly issued and outstanding, fully paid, and non-assessable.

          (h) Taxes. No election has been made to treat HCFFL LLC as an association taxable as
corporation, or as anything other than a disregarded entity owned by Huntington Capital Financing,
for U.S. federal, state and local tax purposes under Section 301.7701-2 of the Regulations or any
similar provision of state or local law.

          10. Tax Covenants.

          (a) The parties agree to treat, for U.S. federal, state and local income tax purposes: (i)
the transfer of assets by the Franklin Entities to Franklin LLC as a transfer under Section 721 of
the Code in which no gain or loss was recognized by the transferors, (ii) the transfer of the
Merger Sub Assets by Franklin LLC to Merger Sub as a disregarded transfer to a disregarded entity,
(iii) the Merger as a transfer of the Merger Sub Assets by Franklin LLC to Huntington Capital
Financing in exchange for the Huntington Capital Financing Stock (the “Franklin Deemed Asset
Transfer”), (iv) the Franklin Deemed Asset Transfer and the Huntington Transfer as an integrated
transfer of property to Huntington Capital Financing

- 7 -

 

governed by Section 351 of the Code and (v) the Commercial Loans (as defined in the Amended
and Restated Credit Agreement, dated as of March 31, 2009, by and among Franklin Credit Asset
Corporation, Tribeca Lending Corp., and the other Borrowers listed on Schedule 1 thereto, the
financial institutions party thereto as lenders, and The Huntington National Bank (the “Credit
Agreement”)) as indebtedness of the Borrowers (as defined in the Credit Agreement). The parties
agree to report the transaction consistently with such intended tax treatment. Franklin LLC and
the Franklin Entities agree to not take any action, or knowingly fail to take any action, that
could cause the transaction to not have the intended tax treatment set forth in this Section 10.

          (b) Franklin LLC and the Franklin Entities agree to make the election under Section
362(e)(2)(C) of the Code (the “Election”) with respect to the Franklin Deemed Asset Transfer to
reduce its tax basis in the Huntington Capital Financing Stock in accordance with the procedure set
forth in Notice 2005-70, or any subsequent guidance or Regulations. For these purposes, the
parties agree that the aggregate fair market value of the assets transferred in the Franklin Deemed
Asset Transfer, as well as the respective fair market values of the assets transferred by each of
the Franklin Entities to Franklin LLC, shall equal the amounts set forth in Schedule 10(b).
Franklin Holding will cause the Franklin Entities to make all correlative basis adjustments in
accordance with Section 705(a)(2)(B) of the Code, in the case of the tax basis in the membership
interests in Franklin LLC, and Treasury Regulation Section 1.1502-32, in the case of the other
Franklin Entities to reflect Franklin LLC’s reduction in tax basis in the Huntington Capital
Financing Stock as a result of the Election. Franklin Holding will make a protective election
under Treasury Regulation Section 1.1502-36(d)(6) to preserve the attributes (i.e., asset basis) of
each of the Franklin Entities.

     11. Survival; Remedies; Indemnification.

          (a) The representations, warranties, covenants and agreements in this Agreement made by the
parties will survive the Closing indefinitely.

          (b) If there is a reacquisition required to be made by the Franklin Entities under Section
3.03 of the Transfer and Assignment Agreement by and among 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, as Sellers, dated as of March 31, 2009,
Franklin LLC will return such number of Class C Preferred Shares of Huntington Capital Financing
Stock that is equal in value to the Reacquisition Price (as defined in the Transfer and Assignment
Agreement).

          (c) The Franklin Entities shall, jointly and severally, indemnify and hold the Surviving
Entity, Huntington Capital Financing, and Huntington Capital Financing’s affiliates harmless at all
times from and after the Closing from and against any and all liabilities, losses, damages, claims,
penalties, actions, suits, proceedings, demands, assessments, judgments, costs, and expenses
(including without limitation attorneys fees), of any nature, whether absolute, contingent, or
otherwise resulting from, relating to, or arising out of any misrepresentation, breach of any
warranty, or non-fulfillment of any agreement or covenant on the part of the Franklin Entities or
Merger Sub contained in this Agreement or in connection with the transactions contemplated by this
Agreement.

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          (d) Huntington Capital Financing and HCFFL LLC shall, jointly and severally, indemnify and
hold Merger Sub and the Franklin Entities harmless at all times from and after the Closing from and
against any and all liabilities, losses, damages, claims, penalties, actions, suits, proceedings,
demands, assessments, judgments, costs, and expenses (including without limitation attorneys fees),
of any nature, whether absolute, contingent, or otherwise resulting from, relating to, or arising
out of any misrepresentation, breach of any warranty, or non-fulfillment of any agreement or
covenant on the part of Huntington Capital Financing or HCFFL LLC contained in this Agreement or in
connection with the transactions contemplated by this Agreement.

     12. Notices. All notices, consents, requests, demands, and other communications
hereunder shall be in writing and shall be deemed to have been duly given or delivered if delivered
personally or mailed by overnight delivery or registered or certified mail, return receipt
requested, with first class postage prepaid or sent by facsimile:

	 	(a)	 	If to Franklin LLC, Merger Sub or the Franklin Entities, to:

Franklin Credit Management Corporation

Attn: Kevin Gildea, Chief Legal Officer and Secretary

101 Hudson Street

Jersey City, New Jersey 070302

Facsimile Number: (201) 604-1818

	 	(b)	 	If to Huntington Capital Financing or HCFFL LLC, to:

Huntington Bancshares Incorporated

Attn: Richard A. Cheap, Esq.

41 South High Street

Columbus, Ohio 43287

Facsimile Number: (614) 480-5485

or to such other addresses as such parties shall have last designated by notice to the other
parties. Any item so mailed shall be deemed to have been delivered on the third day following the
date on which it is so mailed.

     13. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Ohio, without regard to conflicts-of-laws principles that
would require the application of any other law, except to the extent that Chapters 86 and 92A of
the Nevada Revised Statutes applies.

     14. Waiver. No waiver by any party of its rights under any provision of this
Agreement shall constitute a waiver of such party’s rights under such provision at any other time
or a waiver of such party’s rights under any other provision of this Agreement. No failure by any
party to take any action with respect to any breach of this Agreement or default by another party
shall constitute a waiver of the former party’s right to enforce any provision of this Agreement or
to take action with respect to such breach or default or any subsequent breach or default by such
other party. No waiver by any party shall be effective unless in writing and signed by a duly

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authorized officer of such party.

     15. Further Assurances. The parties agree (a) to furnish upon request to each other
such further information, (b) to execute and deliver to each other such other documents, and (c) to
do such other acts and things, all as any other party may reasonably request for the purpose of
carrying out the intent of this Agreement and the documents referred to in this Agreement.

     16. Severability. If any provision of this Agreement is held invalid or unenforceable
by any court of competent jurisdiction, the other provisions of this Agreement will remain in full
force and effect. Any provision of this Agreement held invalid or unenforceable only in part or
degree will remain in full force and effect to the extent not held invalid or unenforceable.

     17. Counterparts. This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement. The exchange of copies of this
Agreement and of signature pages by facsimile transmission shall constitute effective execution and
delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for
all purposes. Signatures of the parties transmitted by facsimile shall be deemed to be their
original signatures for all purposes.

[Signatures Begin on Following Page]

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     In Witness Whereof, the parties hereto have executed this Agreement as of the day and
year first above written.

	 	 	 	 	 
	 	HUNTINGTON CAPITAL FINANCING, LLC

 	 
	 	By:  	/s/
A. Dawn Story	 
	 	 	Name:  	A. Dawn Story	 
	 	 	Title:  	Vice President and Assistant Treasurer	 
	 
	 	HCFFL, LLC

 	 
	 	By:  	/s/
Edward J. Kane	 
	 	 	Name:  	Edward J. Kane	 
	 	 	Title:  	President	 
	 
	 	FRANKLIN ASSET, LLC

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

 	 
	 	By:  	/s/ Alexander Gordon Jardin	 
	 	 	Name:  	Alexander Gordon Jardin	 
	 	 	Title:  	President and Chief Executive Officer	 
	 
	 	FRANKLIN CREDIT HOLDING CORPORATION

 	 
	 	By:  	/s/
Thomas J. Axon	 
	 	 	Name:  	Thomas J. Axon	 
	 	 	Title:  	President	 
	 

[Signatures Continue on Following Page]

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	 	FRANKLIN CREDIT ASSET CORPORATION,

TRIBECA LENDING CORP. AND

EACH OF THEIR RESPECTIVE SUBSIDIARIES LISTED ON SCHEDULE I

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

- 12 -

 

	 	 	 	 	 

Schedule 3(e)

[details to be provided]

Total Estimated Fair Market Value of $900,000,000

 

 

Schedule 8(d)

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

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

- 14 -EX-10.5

Exhibit 10.5

 

Execution Copy

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of March 31, 2009

among

FRANKLIN CREDIT ASSET CORPORATION,

TRIBECA LENDING CORP.

AND

THE OTHER BORROWERS PARTY HERETO

as Borrowers,

THE FINANCIAL INSTITUTIONS PARTY HERETO AS LENDERS,

as Lenders, and

THE HUNTINGTON NATIONAL BANK,

as Administrative Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Article I. Definitions and Accounting Matters
	 	 	4	 
	Section 1.01 Certain Defined Terms
	 	 	4	 
	Section 1.02 Accounting Terms and Determinations
	 	 	24	 
	 
	 	 	 	 
	Article II. Advances, Notes and Prepayments
	 	 	24	 
	Section 2.01 Advances
	 	 	24	 
	Section 2.02 Notes
	 	 	25	 
	Section 2.03 Inability to Determine Rates; Illegality
	 	 	25	 
	Section 2.04 Payments of Interest and Principal on the Advances; Waterfall
	 	 	26	 
	Section 2.05 Mandatory Prepayments
	 	 	29	 
	Section 2.06 Breakage
	 	 	29	 
	Section 2.07 Requirements of Law
	 	 	29	 
	Section 2.08 Purpose of Advances
	 	 	31	 
	Section 2.09 Appointment of Borrower Representative as Agent and Attorney-in-Fact for
all Borrowers
	 	 	31	 
	Section 2.10 Facility Fee
	 	 	31	 
	Section 2.11 Joint and Several Liability
	 	 	31	 
	Section 2.12 Disbursements from Reserve Account
	 	 	33	 
	 
	 	 	 	 
	Article III. Blocked Accounts, Computations; Taxes
	 	 	34	 
	Section 3.01 Payments
	 	 	34	 
	Section 3.02 Computations
	 	 	35	 
	Section 3.03 U.S. Taxes
	 	 	35	 
	 
	 	 	 	 
	Article IV. Certain Matters Relating to Collateral
	 	 	36	 
	Section 4.01 Collections
	 	 	36	 
	 
	 	 	 	 
	Article V. Conditions Precedent
	 	 	36	 
	Section 5.01 Initial Advances
	 	 	36	 
	Section 5.02 Advances
	 	 	39	 
	 
	 	 	 	 
	Article VI. Representations and Warranties
	 	 	40	 
	Section 6.01 Existence
	 	 	40	 
	Section 6.02 Litigation
	 	 	40	 
	Section 6.03 No Breach
	 	 	40	 
	Section 6.04 Action
	 	 	40	 
	Section 6.05 Approvals
	 	 	40	 
	Section 6.06 Taxes
	 	 	41	 
	Section 6.07 Investment Company Act
	 	 	41	 
	Section 6.08 No Legal Bar
	 	 	41	 
	Section 6.09 No Default
	 	 	41	 
	Section 6.10 True and Complete Disclosure
	 	 	41	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 6.11 ERISA
	 	 	42	 
	Section 6.12 [Reserved]
	 	 	42	 
	Section 6.13 True Sales
	 	 	42	 
	Section 6.14 No Burdensome Restrictions
	 	 	42	 
	Section 6.15 Subsidiaries
	 	 	42	 
	Section 6.16 Financial Statements; Fraudulent Conveyance
	 	 	42	 
	Section 6.17 Regulation U
	 	 	43	 
	 
	 	 	 	 
	Article VII. Covenants of the Borrowers
	 	 	43	 
	Section 7.01 Financial Statements
	 	 	43	 
	Section 7.02 Litigation
	 	 	44	 
	Section 7.03 Existence, Etc
	 	 	44	 
	Section 7.04 Prohibition of Fundamental Changes; Subsidiaries
	 	 	45	 
	Section 7.05 Restricted Payments
	 	 	45	 
	Section 7.06 Notices
	 	 	45	 
	Section 7.07 Perfection of Participant Trust Certificates
	 	 	46	 
	Section 7.08 Activities of Franklin Servicing
	 	 	46	 
	Section 7.09 Settlement of Claims
	 	 	47	 
	Section 7.10 Transactions with Affiliates
	 	 	47	 
	Section 7.11 Use of Proceeds
	 	 	47	 
	Section 7.12 Limitation on Liens
	 	 	47	 
	Section 7.13 Limitation on Indebtedness
	 	 	47	 
	Section 7.14 Limitation on Sale of Assets
	 	 	47	 
	Section 7.15 Limitation on Investments
	 	 	47	 
	Section 7.16 Solvency
	 	 	48	 
	Section 7.17 No Amendment or Waiver
	 	 	48	 
	Section 7.18 Maintenance of Property; Insurance
	 	 	48	 
	Section 7.19 Further Identification of Collateral
	 	 	48	 
	Section 7.20 Organizational Documents, Pledge or Transfer of Equity Interests
	 	 	48	 
	Section 7.21 Payment of Expenses
	 	 	48	 
	Section 7.22 Certain Post-Effective Date Deliverables
	 	 	49	 
	Section 7.23 Representations and Warranties; Disclosure Updates
	 	 	49	 
	Section 7.24 Enforcement of Purchase Agreement
	 	 	49	 
	 
	 	 	 	 
	Article VIII. Section 8.01 Events of Default
	 	 	49	 
	 
	 	 	 	 
	Article IX. Remedies
	 	 	52	 
	Section 9.01 Remedies Upon Default
	 	 	52	 
	 
	 	 	 	 
	Article X. Miscellaneous
	 	 	54	 
	Section 10.01 Waiver
	 	 	54	 
	Section 10.02 Notices
	 	 	54	 
	Section 10.03 Indemnification and Expenses
	 	 	54	 
	Section 10.04 Amendments
	 	 	56	 
	Section 10.05 Successors and Assigns
	 	 	57	 
	Section 10.06 Survival
	 	 	57	 
	Section 10.07 Captions
	 	 	57	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 10.08 Counterparts
	 	 	57	 
	Section 10.09 Governing Law
	 	 	57	 
	Section 10.10 SUBMISSION TO JURISDICTION; WAIVERS
	 	 	57	 
	Section 10.11 WAIVER OF JURY TRIAL
	 	 	58	 
	Section 10.12 Acknowledgments
	 	 	58	 
	Section 10.13 Non-liability of the Administrative Agent and the Lenders
	 	 	58	 
	Section 10.14 Amendment and Restatement
	 	 	59	 
	Section 10.15 Assignment of Liens
	 	 	60	 
	Section 10.16 Set-Off
	 	 	60	 
	Section 10.17 Entire Agreement; Continuation of Credit Agreement
	 	 	60	 
	Section 10.18 Full-Recourse
	 	 	61	 
	Section 10.19 Confidentiality
	 	 	61	 
	Section 10.20 Consent to Transactions
	 	 	61	 
	Section 10.21 Lien on Mortgage Loans and REO Properties
	 	 	61	 
	Section 10.22 Release of Pledged Interests in FCMC
	 	 	62	 
	 
	 	 	 	 
	Article XI. The Administrative Agent
	 	 	63	 
	Section 11.01 Appointment; Nature of Relationship
	 	 	63	 
	Section 11.02 Exculpatory Provisions
	 	 	64	 
	Section 11.03 Reliance on Communications
	 	 	64	 
	Section 11.04 Delegation of Duties
	 	 	65	 
	Section 11.05 The Administrative Agent’s Reimbursement and Indemnification
	 	 	65	 
	Section 11.06 Notice of Default
	 	 	66	 
	Section 11.07 Rights as a Lender
	 	 	66	 
	Section 11.08 Non-Reliance on Administrative Agent and Other Lenders
	 	 	66	 
	Section 11.09 Resignation of Administrative Agent
	 	 	67	 
	Section 11.10 Administrative Agent Fees
	 	 	67	 
	Section 11.11 Execution of Collateral Documents
	 	 	67	 
	Section 11.12 Collateral
	 	 	67	 
	Section 11.13 Agency for Perfection
	 	 	68	 
	 
	 	 	 	 
	Article XII. Participations and Assignments
	 	 	68	 
	Section 12.01 Permitted Participants; Effect
	 	 	68	 
	Section 12.02 Assignments
	 	 	70	 
	Section 12.03 Dissemination of Information
	 	 	72	 
	Section 12.04 Tax Treatment
	 	 	73	 

iii

 

	 	 	 
	 	 	SCHEDULES
	 
	SCHEDULE 1

	 	Borrowers
	SCHEDULE 2

	 	Participation Agreements
	SCHEDULE 3

	 	Commitments of Lenders
	SCHEDULE 6.15

	 	Subsidiaries
	SCHEDULE 7

	 	Transaction Documents
	SCHEDULE 7.22

	 	Post-Closing Matters

	 	 	 
	 	 	EXHIBITS
	 
	EXHIBIT A

	 	Form of Tranche A Promissory Note
	EXHIBIT B

	 	Form of Tranche B Promissory Note
	EXHIBIT C

	 	Form of Tranche C Promissory Note
	EXHIBIT D

	 	Form of Security Agreement
	EXHIBIT E

	 	Form of Investment Property Security Agreement
	EXHIBIT F

	 	Form of Holding Pledge Agreement
	EXHIBIT G

	 	Form of Pledge Agreement – Claims
	EXHIBIT H

	 	Form of Assignment and Acceptance Agreement

i

 

AMENDED AND RESTATED CREDIT AGREEMENT

          This AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 31, 2009 (as the same may be
amended, supplemented or otherwise modified and in effect from time to time in accordance with the
terms hereof, this “Agreement”) is entered into by and among FRANKLIN CREDIT ASSET
CORPORATION, a Delaware Corporation (“Franklin Asset”), TRIBECA LENDING CORP., a New York
corporation (“Tribeca”), Franklin Asset, LLC, a Delaware limited liability company
(“FCAC Subco”) and the other BORROWERS listed on Schedule 1 hereto, (together, with
Franklin Asset, Tribeca and FCAC Subco, each, a “Borrower” and collectively, the
“Borrowers”), THE FINANCIAL INSTITUTIONS PARTY HERETO AS LENDERS (each, a “Lender”
and collectively, the “Lenders”), and THE HUNTINGTON NATIONAL BANK (“Huntington”),
as administrative agent for the Lenders (in such capacity, together with its successors and assigns
in such capacity, the “Administrative Agent”).

RECITALS:

     WHEREAS, certain of the Borrowers, Franklin Credit Management Corporation (“FCMC”) and
Huntington (as successor-in-interest to Sky Bank) are parties to that certain Master Credit and
Security Agreement, dated as of October 13, 2004, as the same has been amended, supplemented,
restated or otherwise modified prior to the date of this Agreement (the “Franklin Master
Agreement”), pursuant to which Huntington holds certain outstanding loans made to the
applicable Borrowers (the “Franklin Master Term Loans”, which term shall be exclusive of
loans evidenced by (i) a certain Flow 2006 F Corp. note in the original principal amount of
$19,863,972.93, (ii) a certain FCMC 2006 M Corp. note in the original principal amount of
$16,183,766.66, and (iii) a certain FCMC 2006 K Corp. note in the original principal amount of
$14,433,383.90, together the “Static Loans”), which Franklin Master Term Loans are secured
by, among other things, certain Mortgage Loans as provided in the Franklin Master Agreement and the
other agreements entered into in connection therewith; and

     WHEREAS, FCMC and Huntington (as successor-in-interest to Sky Bank) are parties to that
certain Flow Warehousing Credit and Security Agreement, dated as of August 11, 2006, as the same
has been amended, supplemented, restated or otherwise modified prior to the date of this Agreement
(the “Franklin Warehousing Agreement”), pursuant to which Huntington holds certain
outstanding loans made to FCMC and in connection therewith issued certain outstanding letters of
credit for the account of FCMC (collectively, the “Franklin Warehousing Credits”), which
loans and reimbursement obligations under such letters of credit are secured by, among other
things, certain Mortgage Loans as provided in the Franklin Warehousing Agreement and the other
agreements entered into in connection therewith; and

     WHEREAS, FCMC and Huntington (as successor-in-interest to Sky Bank) are parties to that
certain Term Loan and Security Agreement, dated as of February 22, 1995, as the same has been
amended, supplemented, restated or otherwise modified prior to the date of this Agreement (the
“Franklin Term Loan Agreement”), pursuant to which Huntington holds certain outstanding
loans made to FCMC (the “Franklin Revolving Loans”), which loans are secured by, among

1

 

other things, certain Mortgage Loans as provided in the Franklin Term Loan Agreement and the other
agreements entered into in connection therewith; and

     WHEREAS, certain of the Borrowers, Tribeca and Huntington (as successor-in-interest to Sky
Bank) are parties to that certain Master Credit and Security Agreement, dated as of February 28,
2006, as the same has been amended, supplemented, restated or otherwise modified prior to the date
of this Agreement (the “Tribeca Master Agreement”), pursuant to which Huntington holds
certain outstanding loans made to the applicable Borrowers (the “Tribeca Master Term
Loans”), which Tribeca Master Term Loans are secured by, among other things, certain Mortgage
Loans as provided in the Tribeca Master Agreement and the other agreements entered into in
connection therewith; and

     WHEREAS, Tribeca and Huntington (as successor-in-interest to Sky Bank) are parties to that
certain Warehousing Credit and Security Agreement, dated as of October 18, 2005, as the same has
been amended, supplemented, restated or otherwise modified prior to the date of this Agreement (the
“Tribeca Warehousing Agreement”), pursuant to which Huntington holds certain outstanding
loans made to Tribeca (the “Tribeca Warehousing Credits”), which loans are secured by,
among other things, certain Mortgage Loans as provided in the Tribeca Warehousing Agreement and the
other agreements entered into in connection therewith; and

     WHEREAS, Tribeca, certain of the Borrowers, FCMC and Huntington are parties to a certain
Joinder and Amendment No. 1 to Tribeca Forbearance Agreement, dated as of March 31, 2008, and
certain loan documents and agreements related thereto, pursuant to which, among other things,
Huntington extended credit (the “Tribeca LI Loans”) to Tribeca and certain of the Borrowers
to refinance a certain credit facility of BOS (USA) Inc. to Tribeca LI 2005 Corp., and BOS (USA)
Inc. concurrently purchased an undivided participation interest in the amount of such credit
extended by Huntington; and

     WHEREAS, the Franklin Master Agreement, the Franklin Warehousing Agreement, the Franklin Term
Loan Agreement, the Tribeca Master Agreement and the Tribeca Warehousing Agreement are collectively
referred to as the “Credit Agreements,” and the Franklin Master Term Loans, the Franklin
Warehousing Credits, the Franklin Revolving Loans, the Tribeca Master Term Loans, the Tribeca
Warehousing Credits and the Tribeca LI Loans are collectively referred to as the “Commercial
Loans”); and

     WHEREAS, FCMC, Holding, Franklin Asset, certain of the Borrowers and Huntington are parties to
that certain First Amended and Restated Forbearance Agreement and Amendment to Credit Agreements
dated as of December 19, 2008, as the same has been amended, supplemented, restated or otherwise
modified prior to the date of this Agreement, and which amended and restated a certain Forbearance
Agreement and Amendment to Credit Agreements dated as of December 27, 2007 (together, the
“Existing Franklin Forbearance Agreement”), pursuant to the terms of which Huntington
agreed not to exercise its rights to initiate proceedings to foreclose or otherwise realize upon
the Collateral which secures the Obligations of the loan parties thereunder as a consequence of the
defaults acknowledged therein, and the loan parties thereto granted Liens to Huntington in all
assets of such loan parties as provided in such loan documents and other agreements entered into in
connection therewith; and

2

 

     WHEREAS, FCMC, Holding, Tribeca, certain of the Borrowers and Huntington are parties to that
certain First Amended and Restated Tribeca Forbearance Agreement and Amendment to Credit Agreements
dated as of December 19, 2008, as the same has been amended, supplemented, restated or otherwise
modified prior to the date of this Agreement, and which amended and restated a certain Tribeca
Forbearance Agreement and Amendment to Credit Agreements dated as of December 27, 2007 (the
“Existing Tribeca Forbearance Agreement” and together with the Existing Franklin
Forbearance Agreement, the “Existing Forbearance Agreements”), pursuant to the terms of
which Huntington agreed not to exercise its rights to initiate proceedings to foreclose or
otherwise realize upon the Collateral which secures the Obligations of the loan parties thereunder
as a consequence of the defaults acknowledged therein, and the loan parties thereto granted Liens
to Huntington in all assets of such loan parties as provided in such loan documents and other
agreements entered into in connection therewith;

     WHEREAS, in connection with the Credit Agreements and the Existing Forbearance Agreements,
FCMC, Tribeca, Holding, Borrowers and FCMC, as applicable, are parties to certain promissory notes,
security agreements, pledge agreements, powers of attorney, letter of credit reimbursement
agreements, pledge agreements, control agreements, joinder agreements, counterpart signature pages,
assignments, collateral assignments, guaranties, banking services agreements, hedging agreements,
financing statements and other loan documents (as amended, restated, supplemented or otherwise
modified from time to time prior to the date hereof, together with each Credit Agreement and
Existing Forbearance Agreement, an “Existing Loan Document”, and together the “Existing
Loan Documents”);

     WHEREAS, the Lenders, other than Huntington, hold undivided participation interests in the
Commercial Loans, the Existing Forbearance Agreements, all loan documents relating thereto and all
collateral security therefor, pursuant to the participation agreements or amended and restated
participation (the “Participation Agreements”) and in the amounts set forth on Schedule
2 hereto, and such Lenders desire to amend and restate such participation interests as Advances
subject to the terms of this Agreement and terminate the Participation Agreements and all
agreements incidental thereto; and

     WHEREAS, Holding and FCMC have requested that the Administrative Agent and the Lenders agree
to the following:

     (i) the formation of New Trust for which Huntington is certificate trustee, and
Wilmington Trust Company is owner trustee, the formation of Newco 1, a merger subsidiary
wholly-owned by FCAC Subco, the dissolution of Trusts DB and the transfer of any assets of
the Trusts DB to FCMC and Tribeca, as depositors of such trusts, subject to the Liens of the
Existing Loan Documents on a portion thereof;

     (ii) the contribution, transfer and assignment of all interests of FCMC, Holding, the
Borrowers and the Trusts DB, as applicable, in all Mortgage Loans and REO Properties held as
collateral security for the Commercial Loans to New Trust pursuant to the consummation of
the Transfer Agreement for Mortgage Loans and REO Properties, the issuance by New Trust of
the REIT Trust Certificates and the Participant Trust Certificates to FCAC Subco as directed
by the depositors to New Trust, the contribution

3

 

of the REIT Trust Certificates to Newco 1, a wholly-owned subsidiary of FCAC Subco, and
the subsequent merger of the Equity Interests of Newco 1 into Newco 2 LLC pursuant to the
Transfer and Merger Agreement in exchange for the issuance of the REIT Shares;

     (iii) the grant by the applicable Borrowers of security interests and Mortgages in the
Collateral as set forth in the Agreement as collateral security for the Advances in exchange
for the consent of the Administrative Agent and each Lender to transfer all such Mortgage
Loans and REO Properties to New Trust subject to the Liens of the Existing Loan Documents
and this Agreement;

     (iv) the entry into a new servicing agreement between FCMC and New Trust;

     (v) the release of FCMC and Holding from their respective Guaranties of payment in
favor of Huntington and the Lenders, in substitution for limited recourse guaranties of such
entities, and the release of the assets of FCMC and Holding (other than the Collateral set
forth in this Agreement or the Loan Documents) from the operation of the Liens under the
Existing Loan Documents;

          (collectively, the “Transactions”); and

     WHEREAS, the Loan Parties, the Administrative Agent and the Lenders wish to amend and restate
the Credit Agreements and the Existing Forbearance Agreements and assign all Liens held in respect
of the collateral security therefor to the Administrative Agent, on the terms and conditions set
forth herein, in order to, among other things, (a) consolidate the Commercial Loans and establish
the aggregate outstanding principal amounts thereof as of the Effective Date into (i) a term loan
facility in the amount of the Tranche A Commitment, divided into four sub-tranches, (ii) a term
loan facility in the amount of the Tranche B Commitment, divided into two sub-tranches, and (iii) a
term loan facility in the amount of the Tranche C Commitment, (b) maintain each of Tranche A,
Tranche B and Tranche C as full recourse, joint and several obligations of each Borrower, and (c)
reaffirm all obligations, liabilities and Liens and grant Liens on substantially all assets of each
Loan Party (other than Holding and FCMC).

          NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

          Article I. Definitions and Accounting Matters.

          Section 1.01 Certain Defined Terms. As used herein and the recitals, the following
terms shall have the following meanings (all terms defined in this Section 1.01 or in other
provisions of this Agreement in the singular to have the same meanings when used in the plural and
vice versa):

     “Address for Notices” shall have the meaning assigned thereto in Section 10.02.

4

 

     “Administration Agreement” shall mean a certain Administration Agreement dated as of
the Effective Date between the Administrative Agent and New Trust, as amended, restated,
supplemented or otherwise modified from time to time.

     “Administrative Agent” shall have the meaning assigned to that term in the preamble
and as further defined in Section 11.01.

     “Administrative Agent Fees” shall mean the annual fee equal to $300,000.

     “Advance” or “Advances” shall mean one or more of the Tranche A Advances, the
Tranche B Advances or the Tranche C Advances, or any combination thereof.

     “Affected Lender” shall have the meaning assigned thereto in Section 2.03(c).

     “Affiliate” shall mean, with respect to any Person, any other Person who, directly or
indirectly, controls, is controlled by, or is under common control with, such Person. For purposes
of this definition, “control” (together with the correlative meanings of “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power (a) to vote ten
percent (10%) or more of the securities (on a fully diluted basis) having ordinary voting power for
the directors or managing general partners (or their equivalent) of such Person, or (b) to direct
or cause the direction of the management or policies of such Person, whether through the ownership
of voting securities, by contract, or otherwise.

     “Agreement” shall have the meaning assigned to that term in the preamble of this
Agreement.

     “Applicable Collections Amount” shall have the meaning assigned thereto in Section
2.04(d).

     “Applicable Margin” shall mean, with respect to each Tranche A Advance, 2.25% and with
respect to each Tranche B Advance, 2.75%:

     “Application and Agreement for Letter of Credit” shall mean an application and
agreement for standby letter of credit by, between and among any Loan Party, on the one hand, and
Huntington, on the other hand, in a form provided by Huntington, either as originally executed or
as it may from time to time be supplemented, modified, amended, renewed or extended.

     “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section
12.02) and accepted by the Administrative Agent, in substantially the form of Exhibit H or
any other form approved by the Administrative Agent.

     “Bankruptcy Code” shall mean Title 11 of the United States Code (11 U.S.C. Section 101
et seq.), as amended by the Bankruptcy Reform Act and as further amended from time to time, or any
successor statute.

5

 

     “Bankruptcy Reform Act” shall mean the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005, effective as of October 17, 2005.

     “Blocked Account” shall have the meaning assigned to such term in Section 3.01(a).

     “Borrower” and “Borrowers” shall have the meanings assigned to such terms in
the preamble of this Agreement.

     “Borrower Representative” shall mean Franklin Asset acting as the representative of
the Borrowers pursuant to Section 2.09.

     “BOS” shall mean BOS (USA) Inc.

     “BOS Adjustment” shall mean, in respect of any period, determined quarterly in
arrears, either (i) if a positive number, an additional payment made to BOS or (ii) if a negative
number, a deduction from payments to be made to BOS, in each instance in respect of Tranche A
Advances, based on the following calculation: (x) net Collections arising from any Mortgage Loan
originated by Tribeca or any Subsidiary thereof, REO Property resulting from any such Mortgage Loan
and any other collateral security securing any such Mortgage Loan as of the Effective Date,
multiplied by (y) 10.53765%, minus (z) amounts received by BOS in respect of it
Tranche A Advances for such period.

     “Business Day” shall mean any day other than (i) a Saturday, Sunday, or other day on
which commercial banks are required or authorized to close under the laws of the State of Ohio or
(ii) a day on which any Custodian is required or authorized to close under the laws of the state in
which such Custodian’s offices are located and, if such day relates to a determination of LIBOR,
means any such day on which dealings in Dollar deposits are conducted by and between banks in the
London interbank eurodollar market.

     “Capital Lease Obligations” shall mean, for any Person, all obligations of such Person
to pay rent or other amounts under a lease of (or other agreement conveying the right to use)
Property to the extent such obligations are required to be classified and accounted for as a
capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement,
the amount of such obligations shall be the capitalized amount thereof, determined in accordance
with GAAP.

     “Capital Stock” shall mean any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any other Equity Interests in
an entity however designated, any membership interests in a limited liability company, any and all
similar ownership interests in a Person, in each case whether certificated or uncertificated, and
any and all warrants or options to purchase any of the foregoing.

     “Cash Equivalents” shall mean (a) securities with maturities of ninety (90) days or
less from the date of acquisition thereof that are issued or fully Guaranteed or insured by the
United States Government or any agency thereof, (b) certificates of deposit and eurodollar time
deposits with maturities of ninety (90) days or less from the date of acquisition thereof and
overnight bank deposits, in each case of any commercial bank having capital and surplus in excess
of

6

 

$500,000,000, (c) repurchase obligations of any commercial bank satisfying the requirements of
clause (b) of this definition, in each case having a term of not more than seven days and relating
to securities issued or fully Guaranteed or insured by the United States Government, (d) commercial
paper of a domestic issuer rated at least A-1 or the equivalent thereof by Standard and Poor’s
Ratings Group (“S&P”) or P-1 or the equivalent thereof by Moody’s, and in either case
maturing within ninety (90) days after the date of acquisition thereof, (e) securities with
maturities of 90 days or less from the date of acquisition thereof that are issued or fully
Guaranteed by any state, commonwealth, or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth, or territory or by any foreign
government, in each case the securities of which state, commonwealth, territory, political
subdivision, taxing authority, or foreign government (as the case may be) are rated at least A by
S&P or A by Moody’s, (f) securities with maturities of ninety (90) days or less from the date of
acquisition thereof that are backed by standby letters of credit issued by any commercial bank
satisfying the requirements of clause (b) of this definition, or (g) shares of money market mutual
or similar funds that invest exclusively in assets satisfying the requirements of clauses (a)
through (f) of this definition.

     “Change of Control” shall mean, (a) with respect to Holding, the replacement of a
majority of the board of directors from the directors who constituted the board of directors on the
Effective Date for any reason other than death or disability, and such replacement shall not have
been approved by such board of directors, as constituted on the Effective Date (or as changed over
time with the approval of the then existing board of directors of Holding); or (b) a Person or
Persons acting in concert, as a result of a tender or exchange offer, open market purchases,
privately negotiated purchases, exercise of the stock pledge or otherwise, shall have become the
beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as
amended) of equity securities of Holding representing more than twenty percent (20%) of the
combined voting power of the outstanding securities of Holding, ordinarily having the right to vote
in the election of directors from the beneficial owners as of the Effective Date; or (c) with
respect to any Loan Party other than Holding, the failure of Holding to own, directly or indirectly
and free and clear of any adverse claims (other than Liens securing the Obligations), one hundred
percent (100%) of the issued and outstanding Capital Stock of such Loan Party.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     “Collateral” shall have the meaning assigned to such term in the Security Agreement,
Mortgage, the Pledge Agreement or any other Loan Document executed and delivered to the
Administrative Agent by any Loan Party and shall include without limitation:

	 	(i)	 	the REIT Shares;
	 
	 	(ii)	 	the Participant Trust Certificates;
	 
	 	(iii)	 	an undivided interest in the Mortgage Loans and REO Properties transferred to
New Trust pursuant to the Transactions to the extent of the Participant Trust
Certificates Percentage;
	 
	 	(iv)	 	the Pledged Interests in FCMC;

7

 

	 	(v)	 	all monies owing to any Loan Party (other than Holding) from any taxing
authority;
	 
	 	(vi)	 	all amounts owing pursuant to any deposit account or securities account of any
Loan Party (other than Holding);
	 
	 	(vii)	 	any commercial tort or other claim of FCMC or any Loan Party, including the
WMC Claims;
	 
	 	(viii)	 	certain real property interests of FCMC in respect to the Proprietary Leases
and any REO Property re-acquired by any Borrower pursuant to any Transfer Agreement;
	 
	 	(ix)	 	a second priority Lien on cash collateral held as security for revolving credit
and letters of credit from Huntington, HF and certain other lenders to FCMC;
	 
	 	(x)	 	a first Mortgage in real property interests at 6 Harrison Street, Unit 6, New
York, New York; and
	 
	 	(xi)	 	any monies, funds or sums due or received by any Borrower in respect of any
program sponsored by any Governmental Authority, any federal program, federal agency
or quasi-governmental agency, including without limitation any fees received,
directly or indirectly, under the U.S. Treasury Homeowners Affordability and
Stability Plan.

     “Collection Account” shall mean that certain account, subject to a Control Agreement,
in the name of the Administrative Agent, being account number 01892600442, maintained at
Huntington, in order to deposit all income of the Borrowers, all dividends and proceeds of the
REIT Preferred Stock, the REIT Common Stock, proceeds from each Participant Trust Certificate, and
proceeds of any other Collateral.

     “Collections” shall mean, without duplication, all income, receipts, collections,
distributions, dividends, payments and other proceeds, net liquidation proceeds or insurance
proceeds, monies received in respect of Interest Rate Hedge Agreements from whatever source, or any
monies, funds or sums due or received by any Borrower in respect of any program sponsored by any
Governmental Authority, any federal program, federal agency or quasi-governmental agency, including
without limitation any fees received, directly or indirectly, under the U.S. Treasury Homeowners
Affordability and Stability Plan, received by or for the account of any Borrower, or received by
the Administrative Agent on or in respect of any asset, property or otherwise constituting part of
the Collateral, including without limitation (i) the net cash proceeds received by any Borrower or
any of Subsidiaries, together with any non-offered securities issued, in connection with the
securitization or sale of any property, and (ii) the related proceeds of any liquidation,
collection, sale, receipt, appropriation or realization upon the Collateral.

8

 

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

     “Commitment” shall mean, as to any Lender, the Commitment of such Lender to make or
maintain a Tranche A Advance, a Tranche B Advance or a Tranche C Advance, as applicable. The
initial Commitment of each Lender shall be as set forth on Schedule 3 attached hereto.

     “Contractual Obligation” shall mean, as to any Person, any provision of any written
agreement, instrument, or other undertaking to which such Person is a party or by which it or any
of its property is bound, or any provision of any security issued by such Person.

     “Control Agreement” means each control agreement, in form and substance satisfactory
to the Administrative Agent, executed and delivered by the applicable Borrower, the Administrative
Agent, and the applicable depositary bank.

     “Credit Agreements” shall have the meaning assigned to that term in the recitals of
this Agreement.

     “Default” shall mean an Event of Default or an event that, with notice or lapse of
time or both, would become an Event of Default.

     “Disbursement Accounts” shall have the meaning assigned to such term in Section
3.01(b).

     “Dollars” and “$” shall mean lawful money of the United States of America.

     “Effective Date” shall mean the date on which the conditions set forth in Section 5.01
are satisfied.

     “Eligible Assignee” shall mean (a) a Lender, (b) an Affiliate of a Lender (other than
an individual), (c) any other Person approved by the Administrative Agent and, unless a Default has
occurred and is continuing, the Borrower Representative (each such approval not to be unreasonably
withheld or delayed), which approval of the Borrower Representative shall be deemed to have been
given if no objection is received by the assigning Lender and the Administrative Agent from the
Borrower Representative within five (5) Business Days after notice of such proposed assignment has
been provided by the assigning Lender to the Borrower Representative, (d) a commercial bank
organized under the laws of the United States, or any state thereof, and having total assets in
excess of $250,000,000, (e) a commercial bank organized under the laws of any other country which
is a member of the Organization for Economic Cooperation and Development or a political subdivision
of any such country and which has total assets in excess of $250,000,000, provided that such bank
is acting through a branch or agency located in the United States and has complied with Section
3.03, (f) a finance company, insurance company, or other financial institution or fund that has
complied with Section 3.03 and is engaged in making, purchasing, or otherwise investing in
commercial loans in the ordinary course of its business and having (together with its Affiliates)
total assets in excess of $250,000,000; provided that, notwithstanding the foregoing,
“Eligible Assignee” shall not include any Loan Party or an Affiliate of any Loan Party.

9

 

     “Equity Interests” shall mean any and all shares, interests, participations, or other
equivalents (however designated) of Capital Stock of a corporation, any other equity interests in
an entity however designated, any membership interests in a limited liability company, any and all
similar ownership interests in a Person, in each case whether certificated or uncertificated, and
any and all warrants or options to purchase any of the foregoing.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time.

     “ERISA Affiliate” shall mean any corporation or trade or business that is a member of
any group of organizations (i) described in Section 414(b) or (c) of the Code of which any Loan
Party is a member or (ii) solely for purposes of potential liability under Section 302(c)(11) of
ERISA and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and
Section 412(n) of the Code, described in Section 414(m) or (o) of the Code of which any Loan Party
is a member.

     “Event of Default” shall have the meaning provided in Section 8.

     “Existing Forbearance Agreements” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Existing Franklin Forbearance Agreement” shall have the meaning assigned to that term
in the recitals of this Agreement.

     “Existing Loan Documents” shall have the meaning assigned to that term in the recitals
of this Agreement.

     “Existing Tribeca Forbearance Agreement” shall have the meaning assigned to that term
in the recitals of this Agreement.

     “Facility Fee” shall mean $1,000,000.

     “FCAC Subco” shall have the meaning assigned to that term in the preamble of this
Agreement.

     “FCMC” shall have the meaning assigned to that term in the recitals of this Agreement.

     “Form W-8BEN” shall have the meaning assigned thereto in Section 3.03(a).

     “Form W-8ECI” shall have the meaning assigned thereto in Section 3.03(a).

     “Franklin Asset” shall have the meaning assigned to that term in the preamble of this
Agreement.

     “Franklin Master Agreement” shall have the meaning assigned to that term in the
recitals of this Agreement.

10

 

     “Franklin Master Term Loans” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Franklin Revolving Loans” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Franklin Servicing LLC” shall mean Franklin Credit Loan Servicing LLC, a Delaware
limited liability company.

     “Franklin Term Loan Agreement” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Franklin Trust” shall mean FRANKLIN CREDIT TRUST SERIES I, a Delaware statutory
trust, the sole certificate holder of which will be the Administrative Agent, as pledge of Franklin
Asset.

     “Franklin Warehousing Agreement” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Franklin Warehousing Credits” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “GAAP” shall mean generally accepted accounting principles as in effect from time to
time in the United States of America.

     “Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government and any court or arbitrator having
jurisdiction over any Loan Party, any of their Subsidiaries, or any of their properties.

     “Guarantee” shall mean, as to any Person, any obligation of such Person directly or
indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the
payment of any Indebtedness of any other Person or otherwise protecting the holder of such
Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities, or services, or to take-or-pay or otherwise);
provided that the term “Guarantee” shall not include (i) endorsements for collection or
deposit in the ordinary course of business or (ii) obligations to make servicing advances for
delinquent taxes and insurance, or other obligations in respect of a Mortgage securing any Mortgage
Loan or REO Property. The terms “Guarantee” and “Guaranteed” used as verbs shall
have correlative meanings.

     “Guarantor” shall mean each of FCMC and Holding pursuant to a limited recourse
guaranty and any other Person which has become obligated to the Administrative Agent or the Lenders
in respect of the Obligations under any Loan Document pursuant to the terms of a Guarantee.

     “HF” shall mean Huntington Finance LLC, an Ohio limited liability company.

11

 

     “Holding” shall mean Franklin Credit Holding Corporation, a Delaware corporation.

     “Huntington” shall have the meaning assigned to that term in the preamble of this
Agreement.

     “Indebtedness” shall mean, for any Person: (a) obligations created, issued, or
incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt
securities, or the sale of Property to another Person subject to an understanding or agreement,
contingent or otherwise, to repurchase such Property from such Person); (b) obligations of such
Person to pay the deferred purchase or acquisition price of Property or services, other than trade
accounts payable arising, and accrued expenses incurred, in the ordinary course of business so long
as such trade accounts payable are payable within ninety (90) days of the date the respective goods
are delivered or the respective services are rendered; (c) indebtedness and obligations of others
secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so
secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person
in respect of letters of credit or similar instruments issued or accepted by banks and other
financial institutions for account of such Person; (e) Capital Lease Obligations of such Person;
(f) obligations of such Person under repurchase agreements or like arrangements; (g) indebtedness
and obligations of others Guaranteed by such Person; (h) all obligations of such Person incurred in
connection with the acquisition or carrying of fixed assets by such Person; (i) indebtedness and
obligations of general partnerships of which such Person is a general partner; (j) indebtedness and
obligations under Interest Rate Hedge Agreements; and (k) any other indebtedness or obligation of
such Person evidenced by a note, bond, debenture, or similar instrument.

     “Indemnified Party” shall have the meaning assigned thereto in Section 10.03(a).

     “Interest Expense” shall mean for any period total interest expense (other than PIK
Interest), whether paid or accrued or due and payable (including without limitation in respect of
all Advances and any Subordinated Indebtedness), plus the interest component of Capital Lease
Obligations for such period, plus all bank fees capitalized pursuant to GAAP, plus net costs under
Interest Rate Hedge Agreements.

     “Interest Period” shall mean, with respect to any Advance, (i) initially, the period
commencing on the Effective Date with respect to such Advance and ending on the calendar day prior
to the Payment Date of the next succeeding month; (ii) thereafter, each period commencing on the
Payment Date of one month and ending on the calendar day prior to the Payment Date of the next
succeeding month; provided, that if any Interest Period would otherwise expire on a day
which is not a Business Day, such Interest Period shall be extended to the next succeeding Business
Day; provided, however, that if such next succeeding Business Day occurs in the following
calendar month, then such Interest Period shall expire on the immediately preceding Business Day,
and provided further that interest shall continue to accrue on all amounts due and payable
hereunder that remain unpaid on the applicable Termination Date until such time as such amounts are
paid in full.

12

 

     “Interest Rate” shall mean, for each day in respect of (i) the Tranche A Advances, a
per annum rate equal to LIBOR for that day plus the Applicable Margin, (ii) the Tranche B
Advances, a per annum rate equal to LIBOR for that day plus the Applicable Margin, and (iii) the
Tranche C Advances, a rate of fifteen percent (15%) per annum.

     “Interest Rate Hedge Agreement” shall mean an interest rate swap, cap, or collar
agreement or any other hedging arrangements providing for protection against fluctuations in
interest rates or the exchange of nominal interest obligations, either generally or under specific
contingencies.

     “Investment” means, with respect to any Person, (i) any purchase or other acquisition
by that Person of any securities or Equity Interest, or of a beneficial interest in any securities
or Equity Interest issued by any other Person, (ii) any purchase by that Person of all or a
significant part of the Property of a business conducted by another Person, and (iii) any loan,
advance (other than deposits with financial institutions available for withdrawal on demand,
prepaid expenses, accounts receivable, and similar items made or incurred in the ordinary course of
business as presently conducted), or a capital contribution by that Person to any other Person,
including all Indebtedness to such Person arising from a sale of Property by such Person other than
in the ordinary course of its business.

     “Investment Company Act” shall have the meaning assigned thereto in Section 6.07.

     “Lender” shall have the meaning assigned thereto in the preamble hereof and includes
the financial institutions party hereto as Lenders on the Effective Date and parties that become
Lenders thereafter pursuant to an Assignment and Acceptance.

     “LIBOR” shall mean, for each day during an Interest Period with respect to an Advance,
the rate per annum obtained by dividing (1) the actual or estimated per annum rate, or the
arithmetic mean of the per annum rates, of interest for deposits in U.S. dollars for one (1) month,
as determined by the Administrative Agent in its good faith discretion based upon information which
appears on page LIBOR01, captioned British Bankers Assoc. Interest Settlement Rates, of the Reuters
America Network, a service of Reuters America Inc. (or such other page that may replace that page
on that service for the purpose of displaying London interbank offered rates; or, if such service
ceases to be available or ceases to be used by the Administrative Agent, such other reasonably
comparable money rate service as the Administrative Agent may select) or upon information obtained
from any other reasonable procedure, as of two banking days prior to the commencement of such
Interest Period; by (2) an amount equal to one minus the stated maximum rate (expressed as a
decimal), if any, of all reserve requirements (including, without limitation, any marginal,
emergency, supplemental, special or other reserves) that is specified on each date LIBOR is
determined by the Board of Governors of the Federal Reserve System (or any successor agency
thereto) for determining the maximum reserve requirement with respect to eurocurrency funding
(currently referred to as “Eurocurrency liabilities” in Regulation D of such Board) maintained by a
member bank of such system, or any other regulations of any Governmental Authority having
jurisdiction with respect thereto, all as conclusively determined by the Administrative Agent. As
used herein, “banking day” shall mean any day other than a Saturday or a Sunday on which banks are
open for business in Columbus, Ohio, and on which banks in London, England, settle payments.
Subject to any maximum or minimum interest rate

13

 

limitation
specified herein or by applicable law, LIBOR shall change automatically without
notice to any Loan Party immediately on the first day of each Interest Period, with any change
thereto effective as of the opening of business on the day of any change.

     “LIBOR Advance” shall mean an Advance bearing an Interest Rate based on LIBOR.

     “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), other charge or security interest, or any
preference, priority or other agreement or preferential arrangement of any kind or nature
whatsoever.

     “Loan Documents” shall mean, collectively, this Agreement, the Notes, the Security
Agreement, the Pledge Agreement, each agreement in respect of a Blocked Account, Disbursement
Account, Collection Account, or Reserve Account, each deposit account control agreement, each
letter of credit reimbursement agreement, pledge agreement, joinder agreement, collateral
assignments, guarantee, banking services agreement, Interest Rate Hedge Agreement, cash management
agreement, amendment, modification agreement, instrument, financing statements and each other
document or agreement relating to this Agreement or the transactions contemplated by this
Agreement; provided, however, no Transaction Document shall be a Loan Document.

     “Loan Parties” shall mean the Borrowers, the Pledgors, and any Guarantor collectively,
and “Loan Party” means any Borrower, any Guarantor, Pledgor, and any other Person which has
become obligated to the Administrative Agent or any Lender under the terms of this Agreement or any
other Loan Document pursuant to a joinder, supplement or guarantee agreement and other Loan
Documents satisfactory to the Administrative Agent in its sole and absolute discretion.

     “M&I” shall mean M&I Marshall & Ilsley Bank.

     “Mandatory Prepayment Event” shall mean:

     (a) any sale, transfer, or other disposition of any Property of any Borrower or any
property constituting Collateral pursuant hereto; or

          (b) any casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any Property of any Borrower or any
Collateral; or

     (c) the issuance by any Borrower of any Equity Interests, or the receipt by any
Borrower of any capital contribution; or

     (d) the incurrence by any Borrower of any Subordinated Indebtedness; or

          (e) the receipt by any Borrower or any Loan Party of the proceeds of any settlement or
monetary judgment in respect of any litigation or other similar proceeding.

14

 

     “Margin Stock” shall have the meaning assigned to that term in Regulation U of the
Board of Governors of the Federal Reserve System (or any successor agency thereto) as in effect
from time to time.

     “Material Adverse Effect” shall mean a material adverse effect on (a) the operations,
business, properties, liabilities (actual or contingent), or condition (financial or otherwise) of
the Loan Parties taken as a whole, (b) the ability of any Loan Party to perform in all material
respects its Obligations under this Agreement or any obligations under any of the Loan Documents to
which it is a party, (c) the validity or enforceability in all material respects of any of the Loan
Documents, other than any Loan Document that is terminated with the prior written consent of the
Administrative Agent, and if required hereby, the Required Lenders, (d) the rights and remedies of
the Administrative Agent or any Lender under any of the Loan Documents (including without
limitation the Administrative Agent’s or any Lender’s ability to foreclose upon any Collateral or
to exercise any of its other rights or remedies under any of the Loan Documents, whether as a
secured party under the Uniform Commercial Code, in equity, at law or otherwise), (e) the timely
payment of the principal of or interest on the Advances or other amounts payable in connection
therewith or (f) the Collateral; provided, however, that in no event shall a Material Adverse
Effect be deemed to occur as a result of the consummation of the Transactions.

     “Moody’s” shall mean Moody’s Investors Service, Inc.

     “Mortgage” shall mean, any mortgage, deed of trust, security deed or other instrument
which creates a Lien on the fee simple or a leasehold estate in the real property securing any
obligation described therein.

     “Mortgage Loan” shall mean any mortgage loan in which any such Person has an interest,
which mortgage loan includes, without limitation, (i) a mortgage note, the related Mortgage and all
other mortgage loan documents and (ii) all right, title and interest of any such Person in and to
the related property subject to the Mortgage.

     “Multiemployer Plan” shall mean a multiemployer plan defined as such in Section 3(37)
of ERISA to which contributions have been or are required to be made by any Borrower or any ERISA
Affiliate and that is covered by Title IV of ERISA.

     “Net Proceeds” shall mean, with respect to any Mandatory Prepayment Event, (a) the
cash proceeds received in respect of such Mandatory Prepayment Event, including (i) any cash
received in respect of any non-cash proceeds (including any cash payments received by way of
deferred payment of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but only as and when received), (ii) in the case of a casualty
or other insured damage to any property or asset of any Loan Party, insurance proceeds, and (iii)
in the case of a condemnation or similar event, condemnation awards and similar payments, in each
case net of (b) the sum of (i) all reasonable and customary fees and out-of-pocket expenses paid to
third parties (other than Affiliates) in connection with such Mandatory Prepayment Event, and (ii)
in the case of a sale, transfer or other disposition of an asset or a casualty, a condemnation or
similar proceeding, or the receipt of any tax refund, the amount of

15

 

all payments
required to be made as a result of such Mandatory Prepayment Event to repay Indebtedness (other
than Advances) secured by such asset.

     “Net Remittances” shall mean all collections and remittances received by New Trust in
respect of any Mortgage loan or REO Property transferred pursuant to any Transfer Agreement, net of
all “Servicing Fees and Expenses” (as defined in the Servicing Agreement) paid pursuant to the
Servicing Agreement.

     “New Trust” shall mean Franklin Mortgage Asset Trust 2009-A, a Delaware statutory
trust.

     “New Trust Trust Agreement” shall mean a certain Trust Agreement dated as of March 31,
2009, by and among FCAC Subco, as depositor, Huntington, as certificate trustee and Wilmington
Trust Company, as owner trustee, as amended, restated, supplemented or otherwise modified from time
to time.

     “Newco 1” shall mean Franklin Asset Merger Sub, LLC, a Delaware limited liability
company.

     “Newco 2 LLC” shall mean HCFFL, LLC, a Nevada limited liability company.

     “Newco 2 REO” shall mean Huntington Capital Financing OREO, Inc., a Nevada
corporation.

     “Note” shall mean each Tranche A Note, Tranche B Note or Tranche C Note, as
applicable.

     “Obligations” shall mean all loan, debts, principal, interest (including any interest
that, but for the commencement of an insolvency proceeding, would have accrued), premiums,
liabilities (including all amounts charged to any Borrower’s account pursuant hereto), obligations
(including indemnification obligations), fees (including the fees provided for in this Agreement),
charges, costs, expenses (including any fees or expenses that, but for the commencement of an
insolvency proceeding would have accrued), lease payments, guaranties, covenants, and duties of any
kind and description owing by any Loan Party to any Secured Party pursuant to or evidenced by any
Loan Document and irrespective of whether for the payment of money, whether direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter arising, and including all
interest not paid when due and all expenses that any Loan Party is required to pay or reimburse by
any Loan Document, by law, or otherwise. Any reference in this Agreement or in any Loan Document
to the Obligations shall include all extensions, modifications, renewals, or alterations thereof,
both prior and subsequent to any insolvency proceeding.

     “Participant Mortgage Loan Certificate” shall mean one or more trust certificates
aggregating the Participant Trust Certificate Percentage issued by New Trust to FCAC Subco as
directed by the depositors to New Trust in respect of Mortgage Loans and collaterally assigned to
the Administrative Agent pursuant to the Loan Documents.

16

 

     “Participant REO Certificate” shall mean one or more trust certificates aggregating
the Participant Trust Certificate Percentage issued by New Trust to FCAC Subco as directed by the
depositors to New Trust in respect of REO Properties and collaterally assigned to the
Administrative Agent pursuant to the Loan Documents.

     “Participants” has the meaning assigned to such term in Section 12.01.

     “Participant Trust Certificates” shall mean that portion of the Collateral composed of
the Participant Mortgage Loan Certificates and the Participant REO Certificates issued by New Trust
to FCAC Subco as directed by the depositors to New Trust and collaterally assigned by FCAC Subco to
the Administrative Agent pursuant to the Loan Documents.

     “Participant Trust Certificates Percentage” shall mean 16.72038%, composed of a trust
certificate representing 12.37060% and a trust certificate representing 4.34978%.

     “Participation Agreements” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Payment Date” shall mean either (a) the last day of each calendar month or, if such
day is not a Business Day, the next succeeding Business Day, or (b) in the case of the final
Payment Date for the Tranche A Advances, the Tranche B Advances or the Tranche C Advances, the
Tranche A Termination Date, the Tranche B Termination Date or the Tranche C Termination Date,
respectively; provided, however, payments of interest accrued on the Advances shall
commence on April 30, 2009. If the due date of any payment due in respect to any Advance shall be
a day that is not a Business Day, such due date shall be extended to the next succeeding Business
Day; provided, however, that if such next succeeding Business Day occurs in the following
calendar month, then such due date shall be the immediately preceding Business Day.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to
any or all of its functions under ERISA.

     “Person” shall mean any individual, corporation, company, voluntary association,
partnership, joint venture, limited liability company, trust, unincorporated association or
government (or any agency, instrumentality or political subdivision thereof).

     “PIK Interest” shall have the meaning assigned thereto in Section 2.04(a)(ii).

     “Plan” shall mean an employee benefit or other plan established or maintained by any
Borrower or any ERISA Affiliate and that is covered by Title IV of ERISA, other than a
Multiemployer Plan.

     “Pledge Agreement” shall mean (i) the Amended and Restated Pledge Agreement,
substantially in the form of Exhibit F, dated as of date hereof and made by Holding in
favor of the Administrative Agent on behalf of the Secured Parties, as the same may be amended,
supplemented, or otherwise modified and in effect from time to time in accordance with the terms
thereof, and (ii) any collateral assignment, security agreement or other Pledge Agreement executed
in respect of the WMC Claims, any commercial tort claims or other Property at any

17

 

time, as the same may be amended, supplemented, or otherwise modified and in effect from time
to time in accordance with the terms thereof.

     “Pledged Interests in FCMC” shall mean at any time of determination the portion of the
Equity Interests of Holding in FCMC that are subject to a Pledge Agreement.

     “Pledgor” shall mean FCMC, Holding and any other party to a Pledge Agreement.

     “Post-Default Rate” shall mean, in respect of any principal of any Advance or any
other amount under this Agreement, any Note or any other Loan Document that is not paid when due to
the Administrative Agent, any Lender or any Affiliate thereof (whether at stated maturity, by
acceleration or mandatory prepayment or otherwise), a rate per annum during the period from and
including the due date to but excluding the date on which such amount is paid in full equal to the
sum of (x) five percent (5.00%) per annum plus (y)(i) the related fixed or variable
Interest Rate otherwise applicable to such Advance or other amount or (ii) if no such Interest Rate
is otherwise applicable, LIBOR plus the Applicable Margin in respect of Tranche A.

     “Prime Commercial Rate” shall mean the commercial lending rate of interest per annum
as fixed from time to time by the management of Huntington and its successors, at its main office
and designated as its “Prime Commercial Rate,” from time to time in effect, with each change in
such rate automatically and immediately changing the interest rate on all applicable Advances
without notice to the Borrowers, subject to any maximum or minimum interest rate limitation
specified by applicable law. Each Borrower hereby waives any right to claim that the Prime
Commercial Rate is an interest rate other than that rate designated by Huntington as its “Prime
Commercial Rate” on the grounds that: (i) such rate may or may not be published or otherwise made
known to such Borrower or (ii) Huntington may make loans to certain borrowers at interest rates
that are lower than its “Prime Commercial Rate.”

     “Pro Forma Balance Sheet” shall have the meaning assigned thereto in Section 6.10(b).

     “Property” shall mean any right or interest in or to property of any kind whatsoever,
whether real, personal, or mixed, and whether tangible or intangible.

     “Proprietary Leases” means each of that certain (i) Proprietary Lease, dated March 12,
2008, by and between FCMC and Wallace-Holland Owners Corp., and (ii) Proprietary Lease, dated on or
around October 15, 2007, by and between FCMC and The Sherbrooke Co-Op, Inc.

     “Pro Rata Share” shall mean, for any Lender as of any date of determination, with
respect to all payments, computations and other matters relating to each individual Term Loan
Tranche, the percentage obtained by dividing (A) the outstanding principal amount of such
Lender’s Advance under such Term Loan Tranche by (B) the aggregate outstanding principal
amount of all Advances under such Term Loan Tranche (the applicable amount being such Lender’s
“Term Loan Tranche Exposure” in respect of the relevant Term Loan Tranche as of such date
of determination).

     “Purchasers” shall have the meaning assigned thereto in Section 12.02(b).

18

 

     “Register” shall have the meaning assigned thereto in Section 12.02(d).

     “Regulation U” shall mean Regulation U of the Board of Governors of the Federal
Reserve System (or any successor agency thereto), as the same may be modified and supplemented and
in effect from time to time.

     “REIT Common Stock” shall mean seven (7) shares of the common stock of Huntington
Capital Financing, LLC.

     “REIT Preferred Stock” shall mean 4,724.1330831 Class C preferred shares of Huntington
Capital Financing, LLC.

     “REIT Shares” shall the REIT Common Stock and the REIT Preferred Stock of Huntington
Capital Financing, LLC issued to FCAC Subco as directed by the depositors to New Trust and
collaterally assigned to the Administrative Agent pursuant to the Loan Documents.

     “REIT Trust Certificates” shall mean those trust certificates aggregating the REIT
Trust Certificates Percentage issued by New Trust initially to FCAC Subco as directed by the
depositors to New Trust and subsequently contributed to and held by Newco 2 LLC and its Subsidiary
Newco 2 REO in respect of Mortgage Loans and REO Properties respectively.

     “REIT Trust Certificates Percentage” shall mean 83.27962%.

     “Related Assets” shall have the meaning assigned thereto in Section 7.03(f).

     “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, and advisors of such Person and of such Person’s
Affiliates.

     “REO Property” shall mean any real property, the title to which is held by any such
Person or one of its Subsidiaries, together with all buildings, fixtures and improvements thereon
and all other rights, benefits and proceeds arising from and in connection with such property.

     “Required Lenders” shall mean (i) if three or fewer lenders have Commitments,
Huntington, HF and one of the other Lenders that are not in default of any obligation to make any
Advances or payment hereunder, or (ii) if more than three Lenders have Commitments, the Lenders
that are not in default of any obligation to make any Advance or payment hereunder having in the
aggregate at least eighty-five percent (85%) of the sum of Term Loan Tranche Exposures of all
Lenders in respect of all Term Loan Tranches.

     “Required Payments” shall have the meaning assigned thereto in Section 2.04(d).

     “Requirement of Law” shall mean, as to any Person, the certificate of incorporation
and by-laws, limited liability company agreement (whether written or oral), certificate of
formation or other organizational or governing documents of such Person, and any law, treaty, rule,
or regulation (including, without limitation, the Investment Company Act of 1940, as amended) or
determination of an arbitrator or a court or other Governmental Authority, in each case

19

 

applicable to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

     “Reserve Account” shall mean that certain account, subject to a Control Agreement, in
the name of the Administrative Agent, being account number 01892594532 for the payment of any
expense of a Borrower approved by the Administrative Agent, maintained at Huntington, or such other
similar account as may be specified in writing by the Administrative Agent from time to time as the
“Reserve Account.”

     “Reserves” shall mean such cash reserves in the Reserve Account or such other
collateral account subject to a Control Agreement pledged as security for the Obligations as the
Administrative Agent shall establish in such amounts, and with respect to such matters, as the
Administrative Agent in its good faith discretion shall deem necessary or appropriate, including
without limitation, to make available to any Loan Party or a creditor of any Loan Party with
respect to (i) sums that any Loan Party is required to pay pursuant to any Contractual Obligations
that would have an adverse effect on the Collateral (such as taxes, or assessments), (ii) Liens or
trusts for ad valorem, excise, sales, or other taxes where given priority under applicable law in
and to an item of Collateral, (iii) the payment of any Required Payment, interest under any
Advance, the BOS Adjustment, or any fees or expenses owing or anticipated to be owing to any
Secured Party under the terms of any Loan Document, and (iv) funds required to preserve or protect
any of the Collateral.

     “Responsible Officer” shall mean, as to any Person, the chief executive officer or,
with respect to financial matters, the chief financial officer of such Person; provided,
that in the event any such officer is unavailable at any time he or she is required to take any
action hereunder, Responsible Officer shall mean any officer authorized to act on such officer’s
behalf as demonstrated by a certificate of corporate resolution.

     “Restricted Payment” shall mean (i) any dividend or other distribution, direct or
indirect, on account of any shares of any class of Capital Stock or Equity Interest of Franklin
Asset or Tribeca now or hereafter outstanding, (ii) any redemption, retirement, sinking fund or
similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any
class of Capital Stock or interest of Franklin Asset or Tribeca now or hereafter outstanding, (iii)
any payment made to redeem, purchase, repurchase or retire, or to obtain the surrender of, any
outstanding warrants, options or other rights to acquire shares of any class of Capital Stock or
ownership interest of any Loan Party (other than Holding) now or hereafter outstanding, and (iv)
any payment or prepayment of principal, premium, if any, or interest, fees or other charges on or
with respect to, and any redemption, purchase, retirement, defeasance, sinking fund or similar
payment and any claim to rescission with respect to, any Subordinated Indebtedness.

     “Secured Parties” shall mean the Administrative Agent and each Lender.

     “Security Agreement” shall mean each of: (i) a certain Amended and Restated Security
Agreement, substantially in the form of Exhibit D, and (ii) a certain Investment Property
Security Agreement, substantially in the form of Exhibit E, each dated as of the date
hereof and made by Borrower in favor of the Administrative Agent on behalf of the Secured Parties,
as each of the

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same may be amended, supplemented, or otherwise modified and in effect from time to time in
accordance with the terms thereof.

     “Servicer” shall mean FCMC or such other servicer of the assets of New Trust.

     “Servicing Agreement” shall mean that certain Servicing Agreement entered into as of
the Effective Date between New Trust and FCMC with respect to the assets purchased by New Trust
pursuant to the Transactions, as amended, restated, supplemented, substituted or otherwise modified
from time to time.

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

     “Subordinated Indebtedness” shall mean any Indebtedness incurred by a Loan Party or
any Subsidiary, the payment of which is subject to a debt subordination agreement or other
subordination provisions in favor of the Administrative Agent, to the written satisfaction of the
Administrative Agent and the terms (including, without limitation, with respect to amount,
maturity, amortization, interest rate, premiums, fees, covenants, subordination terms, events of
default and remedies) of which are reasonably acceptable to the Administrative Agent.

     “Subsidiary” shall mean, with respect to any Person, any corporation, limited
liability company, partnership or other entity of which at least a majority of the securities or
other ownership interests having by the terms thereof ordinary voting power to elect a majority of
the board of directors or other persons performing similar functions of such corporation,
partnership, limited liability company or other entity (irrespective of whether or not at the time
securities or other ownership interests of any other class or classes of such corporation,
partnership or other entity shall have or might have voting power by reason of the happening of any
contingency) is at the time directly or indirectly owned or controlled by such Person or one or
more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.

     “Termination Date” shall mean, as applicable, the Tranche A Termination Date, the
Tranche B Termination Date or the Tranche C Termination Date.

     “Term Loan Tranche” shall mean each of Tranche A, Tranche B and Tranche C. “Term
Loan Tranche Exposure” shall have the meaning assigned to that term in the definition of “Pro
Rata Share.”

     “Tranche” shall mean each of Tranche A-1, Tranche A-2, Tranche A-3, Tranche A-4,
Tranche B-1, Tranche B-2 and Tranche C.

     “Tranche A” shall mean a term loan facility in the aggregate amount of $837,932,435.91
divided into the following four sub-tranches: a sub-tranche of $209,483,108.98 (“Tranche
A-1”), an additional sub-tranche of $209,483,108.98 (“Tranche A-2”), an additional
sub-tranche of $209,483,108.98 (“Tranche A-3”), and an additional sub-tranche of
$209,483,108.98 (“Tranche A-4”).

     “Tranche A Advance” shall have the meaning assigned to that term in Section 2.01(a).

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     “Tranche A-1 Advance” shall have the meaning assigned to that term in Section 2.01(a).

     “Tranche A-2 Advance” shall have the meaning assigned to that term in Section 2.01(a).

     “Tranche A-3 Advance” shall have the meaning assigned to that term in Section 2.01(a).

     “Tranche A-4 Advance” shall have the meaning assigned to that term in Section 2.01(a).

     “Tranche A Commitment” shall mean, as to any Lender, the Commitment of such Lender to
make a Tranche A Advance as of the Effective Date as set forth on Schedule 3. The original
aggregate principal amount of the Tranche A Commitments of all Lenders is $837,932,435.91.

     “Tranche A Note” shall mean each of the amended and restated promissory notes provided
for each Lender’s Tranche A-1 Advance, Tranche A-2 Advance, Tranche A-3 Advance and Tranche A-4
Advance, and any promissory note delivered in substitution or exchange therefor, in each case as
the same shall be modified, supplemented, amended or restated and in effect from time to time in
accordance with the terms of this Agreement.

     “Tranche A Termination Date” shall mean March 31, 2012 or such earlier date on which
this Agreement shall terminate in accordance with the provisions hereof or by operation of law.

     “Tranche B” shall mean a term loan facility in the aggregate amount of
$407,488,418.31, divided into the following two sub-tranches: a sub-tranche of $382,488,418.31
(“Tranche B-1”), and an additional sub-tranche of $25,000,000 (“Tranche B-2”).

     “Tranche B Advance” shall have the meaning assigned to that term in Section 2.01(b).

     “Tranche B-1 Advance”, and “Tranche B-2 Advance”, shall have the meanings
assigned thereto in Section 2.01(b).

     “Tranche B Commitment” shall mean, as to any Lender, the Commitment of such Lender to
make a Tranche B Advance as of the Effective Date as set forth on Schedule 3. The original
aggregate principal amount of the Tranche B Commitments of all Lenders is $407,488,418.31.

     “Tranche B Note” shall mean each of the amended and restated promissory notes provided
for each Lender’s Tranche B-1 Advance and Tranche B-2 Advance, and any promissory note delivered in
substitution or exchange therefor, in each case as the same shall be modified, supplemented,
amended or restated and in effect from time to time in accordance with the terms of this Agreement.

     “Tranche B Termination Date” shall mean shall mean March 31, 2012 or such earlier date
on which this Agreement shall terminate in accordance with the provisions hereof or by operation of
law.

     “Tranche C” shall mean a term loan facility in the aggregate amount of $125,000,000.

     “Tranche C Advance” shall have the meaning assigned to that term in Section 2.01(c).

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     “Tranche C Commitment” shall mean, as to any Lender, the Commitment of such Lender to
make a Tranche C Advance as of the Effective Date as set forth on Schedule 3. The original
aggregate principal amount of the Tranche C Commitments of all Lenders is $125,000,000.

     “Tranche C Note” shall mean the amended and restated promissory note provided for each
Lender’s Tranche C Advance and any promissory note delivered in substitution or exchange therefor,
in each case as the same shall be modified, supplemented, amended or restated and in effect from
time to time in accordance with the terms of this Agreement.

     “Tranche C Termination Date” shall mean March 31, 2012 or such earlier date on which
this Agreement shall terminate in accordance with the provisions hereof or by operation of law.

     “Transaction Documents” shall mean the agreements set forth on Schedule 7 attached
hereto.

     “Transactions” shall have the meaning assigned to that term in the recitals of this
Agreement.

     “Transfer” shall have the meaning assigned thereto in Section 7.14.

     “Transfer Agreements” shall mean the Transfer and Merger Agreement and the Transfer
Agreement for Mortgage Loans and REO Properties.

     “Transfer and Merger Agreement” shall mean a certain Agreement and Plan of Merger
dated as of March 31, 2009, by and among Huntington Capital Financing, LLC, Newco 2 LLC, Holding,
Franklin Asset, Tribeca, FCMC, the Borrowers and FCAC Subco.

     “Transfer Agreement for Mortgage Loans and REO Properties” shall mean a certain
Transfer and Assignment Agreement dated as of March 31, 2009, between and among FCMC, Tribeca,
Franklin Asset and their respective subsidiaries, as sellers and New Trust, as purchaser.

     “Transferee” shall have the meaning assigned thereto in Section 12.03.

     “Tribeca” shall have the meaning assigned to that term in the preamble of this
Agreement.

     “Tribeca LI Loans” shall have the meaning assigned to that term in the recitals of
this Agreement.

     “Tribeca Master Agreement” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Tribeca Master Term Loans” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Tribeca Warehousing Agreement” shall have the meaning assigned to that term in the
recitals of this Agreement.

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     “Tribeca Warehousing Credits” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Tribeca Trust” shall mean TRIBECA LENDING TRUST SERIES I, a Delaware statutory trust,
the sole certificate holder of which will be the Administrative Agent, as pledgee of Tribeca.

     “Trust Agreement DB” shall mean a certain Master Trust Agreement for the Franklin
Trust and Tribeca Trust, dated as of December 15, 2008, among FCMC and Tribeca as depositors,
Deutsche Bank National Trust Company, as certificate trustee, and Deutsche Bank Trust Company
Delaware, as Delaware trustee.

     “Trusts DB” shall mean the Franklin Trust and the Tribeca Trust created pursuant to
the Trust Agreement DB, and “Trust DB” means either of the Franklin Trust or the Tribeca
Trust.

     “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect on the
date hereof in the State of Ohio; provided, that if by reason of mandatory provisions of
law, the perfection or the effect of perfection or non-perfection of the security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than
Ohio, “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection.

     “U. S. Taxes” shall have the meaning assigned thereto in Section 3.03(a).

     “WMC Claims” shall mean all claims and causes of action of FCMC or any other Loan
Party against WMC Mortgage, LLC, successor to WMC Mortgage Corp. from time to time, including
without limitation, any claim or cause of action asserted in Case No. 600355/2008 or other case
number assigned of the Supreme Court of the State of New York, County of New York, entitled
“Franklin Credit Management Corporation, Plaintiff, against WMC Mortgage, LLC, successor to WMC
Mortgage Corp., Defendant.”

          Section 1.02 Accounting Terms and Determinations. Except as otherwise expressly
provided herein, all accounting terms used herein shall be interpreted, and all financial
statements and certificates and reports as to financial matters required to be delivered to the
Administrative Agent under this Agreement shall be prepared, in accordance with GAAP.

          Article II.
Advances, Notes and Prepayments.

          Section 2.01 Advances.

     Subject to the terms and conditions of this Agreement and in reliance on the representations,
warranties and covenants of the Borrowers herein set forth, each Lender to the extent of its
respective Commitment hereby severally agrees on the Effective Date to amend and restate and make
Advances described in this Section 2.01:

     (a) Tranche A Advances. Four term loans (each, a “Tranche A Advance”
and each proportionate portion thereof a “Tranche A-1 Advance”, “Tranche A-2
Advance”, “Tranche A-3 Advance” and “Tranche A-4 Advance”) to the
Borrowers equal to such

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Lender’s Tranche A Commitment. Any portion of the Tranche A Advances that is
subsequently repaid or prepaid may not be reborrowed.

     (b) Tranche B Advances. Two term loans (each, a “Tranche B Advance”
and each proportionate portion thereof a “Tranche B-1 Advance”, and “Tranche B-2
Advance”) to the Borrowers equal to such Lender’s Tranche B Commitment. Any portion of
the Tranche B Advances that is subsequently repaid or prepaid may not be reborrowed.

     (c) Tranche C Advances. One term loan (“Tranche C Advance”) to the
Borrowers equal to such Lender’s Tranche C Commitment. Any portion of the Tranche C
Advances that is subsequently repaid or prepaid may not be reborrowed.

          Section 2.02 Notes.

     (a) Each Lender’s Tranche A-1 Advance, Tranche A-2 Advance, Tranche A-3 Advance,
Tranche A-4 Advance, Tranche B-1 Advance, Tranche B-2 Advance, and Tranche C Advance shall
be evidenced by an amended and restated promissory note of the Borrowers, substantially in
the forms of Exhibits A, B, and C, in each case dated as of the Effective Date and
payable to such Lender or its registered assigns in a principal amount equal to such
Lender’s Pro Rata Share of the applicable Commitment.

     (b) The date, amount and Interest Rate applicable from time to time in respect of each
Tranche A Advance made by a Lender, and each payment made on account of the principal
thereof or interest thereon, shall be recorded by such Lender on its books and records and,
prior to any transfer of the applicable Note, noted by such Lender on the grid attached to
such Note or any continuation thereof. Any such recordation or notation shall be
conclusive and binding on the Borrowers, absent manifest error; provided, that the
failure of such Lender to make any such recordation or notation shall not affect the
obligations of any Borrower to make payment when due of any amount owing hereunder or under
such Note in respect of the applicable Advance; and provided further, that in the
event of any inconsistency between the Register and any Lender’s books and records, the
recordation in the Register shall govern.

          Section 2.03 Inability to Determine Rates; Illegality. Anything contained herein to
the contrary notwithstanding, if, prior to or upon any determination of LIBOR, for any applicable
Interest Period:

	 	(a)	 	the Administrative Agent or the Required Lenders determine in
good faith, which determination shall be conclusive and binding upon the
Borrowers, that quotations of interest rates for the relevant deposits referred
to in the definition of “LIBOR” are not being provided in the relevant amounts
or for the relevant maturities for purposes of determining rates of interest
for LIBOR Advances as provided herein; or
	 
	 	(b)	 	the Administrative Agent or the Required Lenders determine in
good faith, which determination shall be conclusive and binding upon the
Borrowers,

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	 	 	 	that LIBOR is not likely to adequately cover the cost to such Lenders of
making or maintaining the relevant LIBOR Advances; or

	 	(c)	 	any Lender (for purposes of this Section 2.03, an “Affected
Lender”) notifies the Administrative Agent that it has become unlawful for
such Lender to honor its obligations to make or maintain LIBOR Advances
hereunder;

then the Administrative Agent shall give the Borrower Representative prompt notice thereof and, so
long as such condition remains in effect, all Advances of the Lenders or such Affected Lender, as
the case may be, shall bear interest at a rate per annum equal to the Prime Commercial Rate
plus four percent (4%).

          Section 2.04 Payments of Interest and Principal on the Advances; Waterfall.

	 	(a)	 	Interest on the Advances; PIK Interest.

     (i) The Borrowers shall pay to the Administrative Agent for the benefit of the Lenders interest on
the aggregate outstanding principal amount of the Advances of each Tranche for the period from and
including the respective dates of such Advances to but excluding the respective dates such Advances
are paid in full, in each case at a rate per annum equal to the applicable Interest Rate.
Notwithstanding the foregoing, the Borrowers shall pay to the Administrative Agent for the benefit of
the Lenders interest at the applicable Post-Default Rate (i) on the
outstanding principal amount of any Advances during any period when any
Event of Default has occurred and is continuing and (ii) on any interest or
amount (other than principal of any Advance) payable by the Borrowers
hereunder or under any applicable Note that shall not be paid in full when
due, for the period from and including the due date thereof to but
excluding the date the same is paid in full. Accrued and unpaid interest
on each Advance shall be payable monthly on each Payment Date and on the
Tranche A Termination Date, Tranche B Termination Date or Tranche C
Termination Date, as applicable, except that interest payable at the
applicable Post-Default Rate shall accrue daily and shall be payable
promptly upon demand. The Borrowers shall pay interest in cash to the
Administrative Agent for the benefit of the Lenders on Tranche A to the
extent of all cash available to the Borrowers in the Collection Account or
otherwise.

     (ii) Anything contained in Section 2.04(a)(i) to the contrary
notwithstanding, the Borrower Representative, on behalf of the Borrowers,
has elected as of the Effective Date, and each Lender has consented
thereto, to pay the accrued and unpaid interest due in respect of the
Tranche B Advances and the Tranche C Advances from and after such date by
adding the amount thereof to the outstanding principal amount of the
Tranche B Advances and Tranche C Advances, as

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applicable, and may further elect solely to the extent that the
Borrowers do not have cash collections to pay accrued interest on Tranche A
Advances by adding the amount thereof to the outstanding principal amount
of the Tranche A Advances (any such interest in respect of the Tranche B
Advances, the Tranche C Advances and the Tranche A Advances that is so
added to the outstanding principal amount of the Tranche B Advances,
Tranche C Advances or Tranche A Advances, as applicable, being “PIK
Interest”). Upon request of the Administrative Agent, the Borrowers
will execute and deliver to each Lender an additional Tranche B Note,
Tranche C Note, or Tranche A Note, as applicable, for the amount of such
PIK Interest or a replacement Tranche B Note, Tranche C Note, or Tranche A
Note, as applicable, in a face amount equal to the then outstanding
principal sum, plus the amount of such PIK Interest; provided,
however, the failure of the Administrative Agent to request that the
Borrowers execute, or the failure of the Borrowers to provide, any such
additional Tranche B Note, Tranche C Note, or Tranche A Note as applicable,
shall in no way affect the Borrowers obligations to pay any such PIK
Interest at the time and in the manner of other Tranche B Advances, Tranche
C Advances, and Tranche A Advances.

     (b) Principal Payments. On each Payment Date, after the payment of interest,
as required by paragraph 2.04(a) above, each Borrower shall be required to make principal
payments on the Advances in an amount equal to the amount at such time of all cash,
dividends or other property in the Collection Account, any amount received from dividends
or distributions of the Collateral and any other amount otherwise available to any
Borrower.

     (c) Payment Date Reports. No later than two (2) Business Days prior to each
Payment Date, the Administrative Agent shall provide to the Borrower Representative a report
stating (i) the amount of interest due for the current Interest Period pursuant to Section
2.04(a), separately stated for the applicable Tranche A Advances, the Tranche B Advances, if
applicable, and the Tranche C Advances, if applicable, and (ii) if such Payment Date occurs
on a Termination Date, the aggregate outstanding aggregate principal amount of the Tranche A
Advances, Tranche B Advances and Tranche C Advances, as applicable; provided, that
the failure of the Administrative Agent to make any such report shall not affect the
obligations of the Borrowers to make payment when due of any amount owing hereunder or under
any Note in respect of the related Advances.

     (d) Distributions on Payment Dates. Without in any way limiting the
obligations of the Borrowers to make the payments of interest and principal that are
required to be made in respect of the Advances pursuant to Sections 2.04(a) and 2.04(b)
(with respect to any Payment Date, the “Required Payments”), the Borrowers hereby
authorize and direct the Administrative Agent, on each Payment Date, to apply all
Collections received from and after the immediately preceding Payment Date to but excluding
such Payment Date (the aggregate amount of such Collections, after deducting any Reserves,
shall be referred to as the “Applicable Collections Amount” in respect of

27

 

such Payment Date) in the following order of priority:

first, to pay any costs, expenses, fees, charges or indemnities due the
Administrative Agent under the terms of this Agreement or any Loan Document;

second, to pay any costs, expenses, fees, charges or indemnities due any
Lender under the terms of this Agreement or any Loan Document;

third, to the payment of amounts constituting additional periodic payments
of interest required under any Interest Rate Hedge Agreement to any Lender in full;

fourth, to the cash payment of interest on the Tranche A Advances as
calculated for such Payment Date;

fifth, to the BOS Adjustment, if a positive number;

sixth, to prepay the outstanding principal amount of the Tranche A Advances,
including any PIK Interest that has been added to such principal amount until the
same are paid in full in the following order: Tranche A-1 Advances, Tranche A-2
Advances, Tranche A-3 Advances, and Tranche A-4 Advances;

seventh, to pay any Obligations (other than payments constituting additional
periodic payments of interest payable under item “third” above) under any Interest
Rate Hedge Agreement to any Lender in full;

eighth, to the cash payment of interest on the Tranche B-1 Advances as
calculated for such Payment Date;

ninth, to prepay the outstanding principal amount of the Tranche B-1
Advances, including any PIK Interest that has been added to such principal amount
until the same are paid in full;

tenth, to the cash payment of interest on the Tranche B-2 Advances as
calculated for such Payment Date;

eleventh, to prepay the outstanding principal amount of the Tranche B-2
Advances, including any PIK Interest that has been added to such principal amount
until the same are paid in full;

twelfth, to the cash payment of interest on the Tranche C Advances as
calculated for such Payment Date;

thirteenth, to prepay the outstanding principal amount of the Tranche C
Advances, including any PIK Interest that has been added to such principal amount
until the same are paid in full;

fourteenth, to any obligations secured by any Collateral then remaining; and

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fifteenth, to the Borrower Representative for the benefit of the Borrowers.

     Anything contained herein to the contrary notwithstanding, all payments, dividends and
distributions in respect of, and the net proceeds from any disposition, of the Participant Trust
Certificates shall be applied solely to the Pro Rata Share of each Lender (other than Huntington
and HF) in respect of the Advances. Further, anything contained herein to the contrary
notwithstanding, all recoveries and distributions from, and the net proceeds of the WMC Claims, net
of costs attributable to the collection of such recoveries and distributions, shall be applied as
follows: 82.5895% to M&I’s Advances, and 17.4105% to Huntington’s and HF’s Advances. Further,
anything contained herein to the contrary notwithstanding, all dividends, distributions from, and
the net proceeds of any disposition from Pledged Interests in FCMC, shall be applied as follows:
2.65964% to BOS’s Advances, 13.12074 to M&I’s Advances, and 84.21962 to Huntington’s and HF’s
Advances; provided, however, that if any Lender has been paid in full prior to such
dividend or distribution, such percentages shall be calculated without regard to such Lender’s
percentage above. Further, anything contained herein to the contrary notwithstanding, all
dividends, distributions from, and the net proceeds of any disposition from the REIT Shares shall
be applied solely to Huntington’s and HF’s Pro Rata Share of the Advances, in order of priority as
determined by Huntington, in its sole discretion. Further, anything contained herein to the
contrary notwithstanding, all Collections in respect of the Static Loans shall be applied pursuant
to the terms of the Franklin Master Agreement.

          Section 2.05 Mandatory Prepayments. Within five (5) Business Days after the
occurrence of any Mandatory Prepayment Event, the Borrowers shall prepay the Advances in an
aggregate amount equal to the Net Proceeds of such Mandatory Prepayment Event, any such prepayment
to be applied to prepay the outstanding principal amount of the Tranche A Advances.

          Section 2.06 Breakage. If the Borrowers make any prepayment of the Advances on a day
that is not a Payment Date, the Borrowers shall indemnify each Lender and hold each Lender harmless
from and against any actual loss or expense that such Lender may sustain or incur arising from (i)
the re-employment of funds obtained by such Lenders to maintain the portion of such Lender’s
Advances so prepaid or (ii) fees payable to terminate the arrangements from which such funds were
obtained, in either case which actual loss or expense shall be equal to the excess, as determined
by the such Lender, of (x) its cost of obtaining funds for such portion of such Lender’s Advances
for the period from the date of such prepayment through the following Payment Date over (ii) the
amount of interest likely to be realized by such Lender in redeploying the funds not utilized by
reason of such prepayment for such period. This Section 2.06 shall survive termination of this
Agreement and payment in full of the Notes.

          Section 2.07 Requirements of Law.

     (a) If any Requirement of Law or any change in the interpretation or application
thereof, or compliance by the Administrative Agent or any Lender with any request or
directive (whether or not having the force of law) from any central bank or other
Governmental Authority made subsequent to the date hereof:

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     (i) shall subject the Administrative Agent or any Lender to any tax of any kind
whatsoever with respect to this Agreement, such Lender’s Note(s) or any Advance(s)
made by it (excluding net income taxes), or change the basis of taxation of payments
to the Administrative Agent or any Lender in respect thereof;

     (ii) shall impose, modify, or hold applicable any reserve, special deposit,
compulsory advance, or similar requirement against assets held by, or deposits or
other liabilities in or for the account of, advances or other extensions of credit
by, or any other acquisition of funds by any office of such Lender; or

     (iii) shall impose on the Administrative Agent or any Lender any other
condition;

and the result of any of the foregoing is to increase the cost to the Administrative Agent
or such Lender, by an amount which the Administrative Agent or such Lender deems to be
material, of making, continuing, or maintaining any Advance or to reduce any amount
receivable hereunder in respect thereof, then, in any such case, the Borrower Representative
on behalf of the Borrowers shall promptly pay the Administrative Agent or such Lender such
additional amount or amounts as will compensate the Administrative Agent or such Lender for
such increased cost or reduced amount receivable thereafter incurred.

          (b) If any Lender shall have determined that the adoption, effectiveness, phase-in, or
applicability of, or any change in, any Requirement of Law regarding capital adequacy or in
the interpretation or application thereof, or compliance by such Lender or any corporation
controlling such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority made subsequent to the date
hereof shall have the effect of reducing the rate of return on that Lender’s or such
corporation’s capital as a consequence of its obligations hereunder to a level below that
which that Lender or such corporation (taking into consideration that Lender’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by that Lender
to be material, then from time to time, the Borrowers shall promptly pay to that Lender
such additional amount or amounts as will thereafter compensate that Lender for such
reduction.

          (c) If the Administrative Agent or any Lender becomes entitled to claim any additional
amounts pursuant to this Section 2.07, it shall promptly notify the Borrower Representative
of the event by reason of which it has become so entitled. A certificate as to any
additional amounts payable pursuant to this Section 2.07 submitted by the Administrative
Agent or a Lender to the Borrower Representative shall be conclusive and binding on the
Borrowers in the absence of manifest error.

          (d) Failure or delay on the part of the Administrative Agent or any Lender to demand
compensation pursuant to this Section 2.07 shall not constitute a waiver of the
Administrative Agent’s or such Lender’s right to demand such compensation.

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          Section 2.08 Purpose of Advances. Each of the Advances are made for the purpose of
amending and restating the Commercial Loans and to pay fees and other transaction costs in
connection therewith on the Effective Date pursuant to term loans which are (a) the joint and
several obligations of the Borrowers and (b) are secured by substantially all assets of the
Borrowers and the other Collateral.

          Section 2.09 Appointment of Borrower Representative as Agent and Attorney-in-Fact for all
Borrowers. Each Borrower hereby irrevocably constitutes and appoints the Borrower
Representative and any officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact, with full irrevocable power and authority in the place and stead of such
Borrower and in the name of such Borrower or in its own name, and for the purpose of carrying out
the terms of this Agreement, to take any and all necessary or appropriate actions, including
without limitation the right to give or receive any notice or other document provided for under
this Agreement on behalf of such Borrower, and to execute on behalf of such Borrower any and all
documents and instruments that may be necessary or desirable to accomplish the purposes of this
Agreement. Any notice given to or received from the Borrower Representative on behalf of any
Borrower under this Agreement shall be deemed to have been given to or received from that Borrower.

          Section 2.10 Facility Fee. The Borrowers jointly and severally agree to pay to the
Administrative Agent on the Effective Date, for the account of each applicable Lender according to
its Pro Rata Share, the Facility Fee.

          Section 2.11 Joint and Several Liability.

     (a) Each Borrower is accepting joint and several liability hereunder and under the
other Loan Documents in consideration of the financial accommodations to be provided by the
Lenders under this Agreement, for the mutual benefit, directly and indirectly, of each
Borrower and in consideration of the undertakings of each other Borrower to accept joint
and several liability for the Obligations.

     (b) Each Borrower, jointly and severally, hereby irrevocably and unconditionally
accepts, as a surety and as a co-debtor, joint and several liability with each other
Borrower, with respect to the payment and performance of all of the Obligations (including,
without limitation, any Obligations arising under this Section 2.11), it being the
intention of the parties hereto that all the Obligations shall be the joint and several
Obligations of each Borrower without preferences or distinction among them.

     (c) If and to the extent that any Borrower shall fail to make any payment with respect
to any Obligation as and when due or to perform any Obligation in accordance with the terms
thereof, then, in each such event, the other Borrowers will make such payment with respect
to, or perform, such Obligation, as applicable.

     (d) The Obligations of each Borrower under the provisions of this Section 2.11
constitute the absolute and unconditional, full recourse Obligations of each Borrower
enforceable against each such Borrower to the full extent of its properties and assets,

31

 

irrespective of the validity, regularity or enforceability of this Agreement or any other
circumstances whatsoever.

     (e) Except as otherwise expressly provided in this Agreement, each Borrower hereby
waives notice of acceptance of its joint and several liability, notice of any Advances
issued under or pursuant to this Agreement, notice of the occurrence of any Default, Event
of Default, or of any demand for any payment under this Agreement, notice of any action at
any time taken or omitted by the Administrative Agent or any Lender under or in respect of
any Obligation, any requirement of diligence or to mitigate damages and, generally, to the
extent permitted by applicable law, all demands, notices and other formalities of every
kind in connection with this Agreement (except as otherwise provided in this Agreement).
Each Borrower hereby assents to, and waives notice of, any extension or postponement of the
time for the payment of any Obligation, the acceptance of any payment of any Obligation,
the acceptance of any partial payment thereon, any waiver, consent or other action or
acquiescence by the Administrative Agent or any Lender at any time or times in respect of
any Default by any Borrower in the performance or satisfaction of any term, covenant,
condition or provision of this Agreement, any and all other indulgences whatsoever by the
Administrative Agent or any Lender in respect of any Obligation, and the taking, addition,
substitution or release, in whole or in part, at any time or times, of any security for any
Obligation or the addition, substitution or release, in whole or in part, of any Borrower.
Without limiting the generality of the foregoing, each Borrower assents to any other action
or delay in acting or failure to act on the part of the Administrative Agent or any Lender
with respect to the failure by any Borrower to comply with any of its respective
Obligations, including, without limitation, any failure strictly or diligently to assert
any right or to pursue any remedy or to comply fully with applicable laws or regulations
thereunder, which might, but for the provisions of this Section 2.11 afford grounds for
terminating, discharging or relieving any Borrower, in whole or in part, from any of its
Obligations under this Section 2.11, it being the intention of each Borrower that, so long
as any of the Obligations hereunder remain unsatisfied, the Obligations of such Borrower
under this Section 2.11 shall not be discharged except by performance and then only to the
extent of such performance. The Obligations of each Borrower under this Section 2.11 shall
not be diminished or rendered unenforceable by any winding up, reorganization, arrangement,
liquidation, reconstruction or similar proceeding with respect to any Borrower. The joint
and several liability of the Borrowers hereunder shall continue in full force and effect
notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the
name, constitution or place of formation of the other Borrowers, the Administrative Agent
or any Lender.

     (f) Each Borrower represents and warrants to the Administrative Agent and the Lenders
that such Borrower is currently informed of the financial condition of each other Borrower
and of all other circumstances which a diligent inquiry would reveal and which bear upon
the risk of nonpayment of the Obligations. Each Borrower hereby covenants that such
Borrower will continue to keep informed of each other Borrower’s financial
condition, the financial condition of any guarantors, if any, and of all other
circumstances which bear upon the risk of nonpayment or nonperformance of the Obligations.

32

 

     (g) The provisions of this Section 2.11 are made for the benefit of the Administrative
Agent and the Lenders and their respective successors and assigns, and may be enforced by
any of them from time to time against any or all Borrowers as often as occasion therefor
may arise and without requirement on the part of the Administrative Agent or any Lender, or
any or their respective successors or assigns first to marshal any claims or to exercise
any rights against any other Borrower or to exhaust any remedies available against any
other Borrower or to resort to any other source or means of obtaining payment of any of the
Obligations hereunder or to elect any other remedy. The provisions of this Section 2.11
shall remain in effect until all of the Obligations shall have been paid in full or
otherwise fully satisfied. If at any time, any payment, or any part thereof, made in
respect of any of the Obligations, is rescinded or must otherwise be restored or returned
by the Administrative Agent or any Lender upon any insolvency proceeding of any Borrower,
or otherwise, the provisions of this Section 2.11 will forthwith be reinstated in effect,
as though such payment had not been made.

     (h) Each Borrower hereby agrees that it will not enforce any of its rights of
contribution or subrogation against any other Borrower with respect to any liability
incurred by it hereunder or under any of the other Loan Documents, any payments made by it
to the Administrative Agent or any Lender with respect to any of the Obligations or any
collateral security therefor until such time as all of the Obligations have been paid in
full. Any claim which any Borrower may have against any other Borrower with respect to any
payments to the Administrative Agent or any Lender hereunder or under any other Loan
Documents are hereby expressly made subordinate and junior in right of payment, without
limitation as to any increases in the Obligations arising hereunder or thereunder, to the
prior payment in full in cash of the Obligations and, in the event of any insolvency
proceeding relating to any Borrower, its debts or its assets, whether voluntary or
involuntary, all such Obligations shall be paid in full in cash before any payment or
distribution of any character, whether in cash, securities or other property, shall be made
to any other Borrower therefor.

     (i) Each Borrower hereby agrees that, after the occurrence and during the continuance
of any Default or Event of Default, the payment of any amounts due with respect to the
Indebtedness owing by any Borrower to any other Borrower is hereby subordinated to the
prior payment in full in cash of the Obligations. Each Borrower hereby agrees that after
the occurrence and during the continuance of any Default or Event of Default, such Borrower
will not demand, sue for or otherwise attempt to collect any Indebtedness of any other
Borrower owing to such Borrower until the Obligations shall have been paid in full in cash.
If, notwithstanding the foregoing sentence, such Borrower shall collect, enforce or
receive any amounts in respect of such Indebtedness, such amounts shall be collected,
enforced and received by such Borrower as trustee for the Administrative Agent and the
Lenders.

          Section 2.12 Disbursements from Reserve Account. Upon the request of the Borrower
Representative for a disbursement from the Reserve Account, the Administrative Agent, in it sole
discretion, may disburse any such amount to any Disbursement Account.

33

 

          Article III. Blocked Accounts, Computations; Taxes.

          Section 3.01 Payments.

     (a) On or before the Effective Date, the Borrower Representative on behalf of the
Borrowers shall establish one or more blocked accounts at Huntington, including without
limitation the Reserve Account (“Blocked Accounts”), and thereafter the Borrower
Representative shall (i) request in writing and otherwise take such reasonable steps to
ensure proceeds of Collateral and other payments due any Borrower are forwarded directly to
the Blocked Accounts, (ii) irrevocably instruct the bank which maintains each Blocked
account to transfer to the Collection Account, on each Business Day, cleared funds in
respect of all cash, checks, drafts or other similar items of payment so received in any
Blocked Account and (iii) deposit promptly, and in any event no later than the first
Business Day after the date of receipt thereof, any cash, checks, drafts or other similar
items of payment relating to or constituting payments made in respect of any and all
Collateral that are received directly by such Borrower (notwithstanding the requirements of
clause (i) above) into the Collection Account.

     (b) The Borrower Representative may maintain at Huntington or other bank reasonably
acceptable to the Administrative Agent, in the name of the Borrower Representative, one or
more accounts subject to a Control Agreement, including account number 01580117315 (a
“Disbursement Account”), into which the Administrative Agent shall, from time to
time, deposit the proceeds of Collections or Reserves, as applicable, for the payment of
any expenses approved by the Administrative Agent to be paid from the Reserves.

     (c) On or before the Effective Date (or such later date as the Administrative Agent
shall consent to in writing with respect to any deposit account entered into after the
Effective Date), the Borrowers shall cause any bank where a Disbursement Account is
maintained to enter into a Control Agreement with the Administrative Agent, for the benefit
of the Secured Parties, and the applicable Borrower, in form and substance acceptable to
the Administrative Agent, which shall become operative on or prior to the Effective Date
(or such later date as the Administrative Agent shall consent to in writing). No Borrower
shall accumulate or maintain cash in any Disbursement Account as of any date of
determination.

     (d) Each Blocked Account and Disbursement Account shall be controlled accounts, with
all cash, checks and other similar items of payment in such accounts securing payment of
the Advances and all other Obligations, and in which each Borrower shall have granted a
Lien to the Administrative Agent, on behalf of the Secured Parties, pursuant to the
Security Agreement.

     (e) All amounts deposited in the Collection Account shall be deemed received by the
Administrative Agent in accordance with Section 2.04 and shall be applied (and allocated)
by the Administrative Agent in accordance with Section 2.04. In no event shall any amount
be so applied unless and until such amount shall have been credited in immediately
available funds to the Collection Account. Each Borrower hereby

34

 

acknowledges that it has
no rights of withdrawal from the Collection Account or any Blocked Account established for
Reserves.

     (f) Each Borrower shall and shall cause the Borrower Representative and each Related
Party to (i) hold in trust for the Administrative Agent, for the benefit of the Secured
Parties, all checks, cash, and other items of payment received by such Borrower or Related
Party for the account of such Borrower, and (ii) within one Business Day after receipt by
such Borrower or any such Related Party of any checks, cash, or other items of payment,
deposit the same into the Collection Account. All proceeds of the sale or other
disposition of any Collateral shall be deposited directly into the applicable Blocked
Accounts.

          Section 3.02 Computations. Interest on the Advances and fees and other charges
expressed as a percentage shall be computed on the basis of a 360-day year for the actual days
elapsed (including the first day but excluding the last day) occurring in the period for which
payable.

          Section 3.03 U.S. Taxes.

     (a) Each Borrower hereby agrees to pay to the Administrative Agent or any Lender such
additional amount as is necessary in order that the net payment of any amount due to the
Administrative Agent or that Lender hereunder after deduction for or withholding in respect
of any U. S. Tax imposed with respect to such payment (or in lieu thereof, payment of such
U.S. Tax by the Secured Parties), will not be less than the amount stated herein to be then
due and payable; provided, that the foregoing obligation to pay such additional
amounts shall not apply:

	 	(i)	 	to any payment to any Secured Party hereunder unless that
Secured Party is entitled to submit a Form W-8BEN (relating to that Secured
Party and entitling it to a complete exemption from withholding on all interest
to be received by it hereunder in respect of the Advances) or Form W-8ECI
(relating to all interest to be received by that Secured Party hereunder in
respect of the Advances), or
	 
	 	(ii)	 	to any U.S. Tax imposed solely by reason of the failure by that
Secured Party to comply with applicable certification, information,
documentation or other reporting requirements concerning the nationality,
residence, identity or connections with the United States of America of Secured
Party if such compliance is required by statute or regulation of the United
States of America as a precondition to relief or exemption from such U.S. Tax.

For the purposes of this Section 3.03(a), (w) “Form W-8BEN” shall mean Form W-8BEN
(Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding) of the
Department of the Treasury of the United States of America, (x) “Form W-8ECI” shall
mean Form W-8ECI (Certificate of Exemption from Withholding on Income Effectively Connected
with the Conduct of a Trade or Business in the United States) of the Department of the
Treasury of the United States of America (or in relation

35

 

to either such Form such successor
and related forms as may from time to time be adopted by the relevant taxing authorities of
the United States of America to document a claim to which such Form relates), and (y)
“U.S. Taxes” shall mean any present or future tax, assessment or other charge or
levy imposed by or on behalf of the United States of America or any taxing authority thereof
or therein.

     (b) Within thirty (30) days after paying any such amount to a Secured Party, and
within thirty (30) days after it is required by law to remit such deduction or withholding
to any relevant taxing or other authority, the applicable Borrower shall deliver to that
Secured Party evidence satisfactory to that Secured Party of such deduction, withholding or
payment (as the case may be).

     (c) Each Secured Party, on its behalf, represents and warrants to the Borrowers that,
on the date of this Agreement, such Secured Party is either incorporated under the laws of
the United States or a State thereof or is entitled to submit a Form W-8BEN (relating to
that Secured Party and entitling it to a complete exemption from withholding on all
interest to be received by it hereunder in respect of the Advances) or Form W-8ECI
(relating to all interest to be received by that Secured Party under this Agreement in
respect of the Advances).

          Article IV. Certain Matters Relating to Collateral.

          Section 4.01 Collections. Each Borrower shall remit (or cause to be remitted) all
Collections to the Administrative Agent, in the manner contemplated by Section 3.01(a), for
application as provided in Sections 2.04 and 9.01(d) as applicable. Notwithstanding the foregoing,
if an Event of Default shall occur and be continuing, (a) all proceeds of Collateral received by
any Borrower consisting of cash, checks and other non-cash items shall be held by such Borrower in
trust for the Administrative Agent, segregated from other funds of such Borrower, and shall
forthwith upon receipt by such Borrower be turned over to the Administrative Agent in the exact
form received by such Borrower (duly endorsed by such Borrower to the Administrative Agent, if
required) and (b) any and all such proceeds received by the Administrative Agent will be applied by
the Administrative Agent against the Obligations (whether matured or unmatured), such application
to be in the order of priority specified in Section 9.01(d). Any balance of such proceeds
remaining after the Obligations shall have been paid in full and this Agreement shall have been
terminated shall be promptly paid over to the Borrower Representative. For purposes hereof,
proceeds shall include, but not be limited to, all principal and interest payments, prepayments,
payoffs, insurance claims, condemnation awards, sale proceeds, real estate owned rents, any other
income, and all other amounts received with respect to the Collateral.

          Article V. Conditions Precedent.

          Section 5.01 Initial Advances. The obligations of the Lenders to make the Advances
are subject to the satisfaction, immediately prior to or concurrently with the making of such
Advances, of the following conditions precedent:

36

 

	 	(a)	 	Credit Agreement. The Administrative Agent and each
Lender shall have received this Agreement, executed and delivered by a duly
authorized officer of each Borrower.
	 
	 	(b)	 	Loan Documents. The Administrative Agent and the
Lenders as applicable shall have received the following documents, each of
which shall be satisfactory to the Administrative Agent in form and substance:

	 	1)	 	Notes. Each of such Lender’s Notes,
duly completed, executed, and delivered;
	 
	 	2)	 	Pledge Agreement regarding WMC
Claims;
	 
	 	3)	 	Pledge Agreement from Holding;
	 
	 	4)	 	Participation Assignments;
	 
	 	5)	 	Assignments of Liens;
	 
	 	6)	 	Security Agreement. Each Security
Agreement, duly executed and delivered by the Borrowers;
	 
	 	7)	 	Cash Management Agreements. Each
agreement governing a Blocked Account, a Collection Account and the
Disbursement Accounts duly executed and delivered by the relevant
Borrower or Borrowers and the applicable depository bank;
	 
	 	8)	 	Control Agreements. A deposit
account control agreement for each Disbursement Account, the
Collection Account, and the Blocked Account established for Reserves.
	 
	 	9)	 	Other Documents. The other documents
as the Administrative Agent shall reasonably require.

	 	(c)	 	Organizational Documents. The Administrative Agent
shall have received, in form and substance satisfactory to the Lenders, a good
standing certificate, certified copies of the charter and by-laws (or
equivalent documents) and an incumbency certificate of each Borrower and
evidence of all corporate or other authority for each Borrower with respect to
the execution, delivery, and performance of the Loan Documents and each other
document to be delivered by such Borrower, as applicable, from time to time in
connection herewith (and the Administrative Agent may conclusively rely on
such certificates until it receives notice in writing from such Borrower, as
applicable, to the contrary).
	 
	 	(d)	 	Legal Opinion. The Administrative Agent shall have
received one or more legal opinions of counsel to the Borrowers, in the form
acceptable to the 

37

 

	 	 	 	Administrative Agent and the Lenders, containing customary
legal opinions for a secured loan facility.

	 	(e)	 	Filings, Registrations, Recordings. (i) Any documents
(including, without limitation, financing statements) required to be filed,
registered or recorded in order to create, in favor of the Administrative
Agent for the benefit of the Secured Parties, a perfected, first-priority
security interest in the Collateral, subject to no Liens other than those
created hereunder, shall have been properly prepared and (if necessary)
executed for filing (including any applicable county-level filings if the
Administrative Agent determines such filings are necessary in its reasonable
discretion), registration or recording in each office in each jurisdiction in
which such filings, registrations and recordations are required to perfect
such first-priority security interest and any assignments necessary for
perfecting security interests in the Collateral; and (ii) UCC lien searches in
such jurisdictions as shall be applicable to the Borrowers and the Collateral,
the results of which shall be satisfactory to the Administrative Agent.
	 
	 	(f)	 	Fees and Expenses. The Administrative Agent shall
have received all fees and expenses required to be paid by the Borrowers on or
prior to the Effective Date pursuant to Section 10.03(b) and such fees and
expenses may be netted out of the Tranche A Advances made by the Lenders on
the Effective Date.
	 
	 	(g)	 	Consents, Licenses, Approvals, etc. The
Administrative Agent shall have received copies, certified by each Borrower,
of all consents, licenses and approvals, if any, required in connection with
the execution, delivery and performance by such Borrower of, and the validity
and enforceability against such Borrower of, the Loan Documents to which such
Borrower is a party, which consents, licenses, and approvals shall be in full
force and effect.
	 
	 	(h)	 	Insurance. The Administrative Agent shall have
received evidence in form and substance satisfactory to the Administrative
Agent showing compliance by each Borrower with Section 7.18.
	 
	 	(i)	 	Accounts. The Administrative Agent shall have
received evidence of the establishment of each Blocked Account and the
Collection Account.
	 
	 	(j)	 	Officer’s Certificate. The Administrative Agent shall
have received a duly executed copy of an officer’s certificate of each
Borrower.
	 
	 	(k)	 	Trust DB Termination. The Trusts DB shall have been
terminated and all assets thereof shall be transferred to New Trust.
	 
	 	(l)	 	Transactions. The Transactions shall be fully
consummated pursuant to agreements and documents satisfactory to the
Administrative Agent and each Lender.

38

 

	 	(m)	 	Other Documents. The Administrative Agent shall have
received such other documents as the Administrative Agent or its counsel may
reasonably require.

          Section 5.02 Advances. The making of any A Advance is subject to the following
further conditions precedent, both immediately prior to the making of such Advance and also after
giving effect thereto and to the intended use thereof:

	 	(a)	 	no Default or Event of Default shall have occurred and be
continuing;
	 
	 	(b)	 	the representations and warranties made by the Borrowers in
Article 6 hereof, and in each of the other Loan Documents, shall be true and
correct in all material respects on and as of the date of the making of such
Advance with the same force and effect as if made on and as of such date (or,
if any such representation or warranty is expressly stated to have been made
as of a specific date, as of such specific date). At the request of the
Administrative Agent, the Administrative Agent shall have received officer’s
certificates signed by Responsible Officers of the Borrowers certifying as to
the truth and accuracy of the foregoing, which certificates shall specifically
include a statement that the Borrowers are in compliance with all governmental
licenses and authorizations and is qualified to do business and in good
standing in all required jurisdictions;
	 
	 	(c)	 	the Administrative Agent shall have received the tax
identification number of each Borrower;
	 
	 	(d)	 	all corporate and other proceedings, and all documents,
instruments and other legal matters in connection with the financing
transactions contemplated by this Agreement and the other Loan Documents shall
be satisfactory in form and substance to the Administrative Agent, and the
Administrative Agent shall have received such other documents and legal
opinions in respect of any aspect or consequence of the financing transactions
contemplated hereby or thereby as it shall request;
	 
	 	(e)	 	there shall not have occurred one or more events that, in the
good faith judgment of the Administrative Agent or the Required Lenders,
constitutes or could reasonably be expected to constitute a Material Adverse
Effect;
	 
	 	(f)	 	all fees and expenses due and payable to the Administrative
Agent and the Lenders pursuant to this Agreement and each Loan Document shall
have been paid in full; and
	 
	 	(g)	 	the Administrative Agent shall have received such other
documents as the Administrative Agent or its counsel may reasonably request.

39

 

          Article VI. Representations and Warranties. Each Borrower hereby represents and
warrants to Secured Parties that, as of the Effective Date and throughout the term of this
Agreement:

          Section 6.01 Existence. Each Borrower (a) is a corporation or limited liability
company duly formed, validly existing and in good standing under the laws of the jurisdiction of
its formation, (b) has all requisite power, and has all governmental licenses, authorizations,
consents and approvals, necessary to own its assets and carry on its business as now being
conducted, except where the lack of such licenses, authorizations, consents and approvals would not
be reasonably likely to have a Material Adverse Effect; and (c) is qualified to do business and is
in good standing in all other jurisdictions in which the nature of the business conducted by it
makes such qualification necessary, except where failure so to qualify would not be reasonably
likely (either individually or in the aggregate) to have a Material Adverse Effect and (d) is in
compliance in all material respects with all Requirements of Law.

          Section 6.02 Litigation. There are no actions, suits, arbitrations, investigations or
proceedings pending or, to its knowledge, threatened against any Borrower or any of their
respective Subsidiaries or affecting any of the property thereof before any Governmental Authority,
(i) as to which individually or in the aggregate there is a reasonable likelihood of an adverse
decision which would be reasonably likely to have a Material Adverse Effect or (ii) which questions
the validity or enforceability of any of the Loan Documents.

          Section 6.03 No Breach. Neither (a) the execution and delivery of the Loan Documents
or (b) the consummation of the financing transactions therein contemplated in compliance with the
terms and provisions thereof will conflict with or result in a breach of the charter, by-laws,
limited liability company agreement (written or oral), certificate of formation (or equivalent
documents or oral agreements) of any Borrower, or any applicable law, rule or regulation, or any
order, writ, injunction or decree of any Governmental Authority or other agreement or instrument to
which any Borrower or any of their respective Subsidiaries, is a party or by which any of them or
any of their property is bound or to which any of them is subject, or constitute a default under
any such agreement or instrument, or (except for the Liens created pursuant to this Agreement)
result in the creation or imposition of any Lien upon any property of any Borrower or any of their
respective Subsidiaries pursuant to the terms of any such agreement or instrument.

          Section 6.04 Action. Each Borrower has all necessary power, authority and legal right
to execute, deliver and perform its obligations under each of the Loan Documents to which it is a
party; the execution, delivery and performance by each Borrower of each of the Loan Documents to
which it is a party have been duly authorized by all necessary action on its part; and each Loan
Document has been duly and validly executed and delivered by each Borrower and constitutes a legal,
valid and binding obligation of each Borrower, enforceable against each Borrower in accordance with
its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to or limiting creditors’ rights generally or by equitable principles
relating to enforceability.

          Section 6.05 Approvals. No authorizations, approvals or consents of, and no filings
or registrations with, any Governmental Authority, or any other Person, are necessary for

40

 

the
execution, delivery or performance by any Borrower of the Loan Documents to which it is a party or
for the legality, validity or enforceability thereof, except for filings and recordings in respect
of the Liens created pursuant to any Loan Document.

          Section 6.06 Taxes. Each Borrower has filed all Federal income tax returns and all
other tax returns that are required to be filed by them and have paid all taxes due pursuant to
such returns or pursuant to any assessment received by any of them, except for any such taxes, if
any, that are being appropriately contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves have been provided. The charges, accruals
and reserves on the books of each Borrower in respect of taxes and other governmental charges are,
in the opinion of such Borrower, adequate.

          Section 6.07 Investment Company Act. No Borrower is an “investment company” within
the meaning of the Investment Company Act of 1940, as amended (the “Investment Company
Act”). No Borrower is subject to any Federal or state statute or regulation that limits its
ability to incur Indebtedness.

          Section 6.08 No Legal Bar. The execution, delivery and performance of this Agreement
and the Notes, the borrowings hereunder and the use of the proceeds thereof will not violate any
Requirement of Law or Contractual Obligation of any Borrower and will not result in, or require,
the creation or imposition of any Lien (other than the Liens created under any Loan Document) on
any of its or their respective properties or revenues pursuant to any such Requirement of Law or
Contractual Obligation.

          Section 6.09 No Default. No Borrower is in default under or with respect to any of
its respective Contractual Obligations in any respect which is reasonably expected to have a
Material Adverse Effect. No Default or Event of Default has occurred and is continuing.

          Section 6.10 True and Complete Disclosure.

     (a) The information, reports, financial statements, exhibits and schedules furnished in
writing by or on behalf of any Borrower to the Administrative Agent or any Lender in
connection with the negotiation, preparation or delivery of this Agreement and the other
Loan Documents or included herein or therein or delivered pursuant hereto or thereto, when
taken as a whole, do not contain any untrue statement of material fact or omit to state any
material fact necessary to make the statements herein or therein, in light of the
circumstances under which they were made, not misleading. All written information furnished
after the date hereof by or on behalf of each Borrower to the Administrative Agent or any
Lender in connection with this Agreement and the other Loan Documents and the financing
transactions contemplated hereby and thereby will be true, complete and accurate in every
material respect, or (in the case of projections) based on reasonable good faith estimates,
on the date as of which such information is stated or certified. There is no fact known to
a Responsible Officer of any Borrower that, after due inquiry, could reasonably be expected
to have a Material Adverse Effect that has not been disclosed herein, in the other Loan
Documents or in a report, financial statement, exhibit,
schedule, disclosure letter or other writing furnished to the Administrative Agent for
use in connection with the financing transactions contemplated hereby or thereby.

41

 

     (b) The unaudited pro forma consolidated balance sheet of the Borrowers, dated as of
the Effective Date, a copy of which has heretofore been delivered to Administrative Agent,
gives pro forma effect to the consummation of each Transfer Agreement, the initial
extensions of credit made under this Agreement, and the payment of transaction fees and
expenses related to the foregoing, all as if such events had occurred on such date (the
“Pro Forma Balance Sheet”). The Pro Forma Balance Sheet has been prepared in a
manner consistent with GAAP and the financial statements described in Section 7.01(a)
(subject to the absence of footnotes required by GAAP and subject to normal year-end
adjustments) and, made in good faith and having a reasonable basis set forth therein,
presents fairly in all material respects the consolidated financial condition of the
Borrowers on an unaudited pro forma basis as of the date set forth therein after giving
effect to the consummation of the Transactions described above.

          Section 6.11 ERISA. No Borrower or any of their respective Subsidiaries has any Plan
or Multiemployer Plan subject to the provisions of ERISA, the Code and other Federal or State law.

          Section 6.12 [Reserved].

          Section 6.13 True Sales. Any and all interest of a prior owner in, to and under any
Mortgage Loan or other Collateral has been sold, transferred, conveyed, and assigned to the
applicable Borrower pursuant to a legal sale or capital contribution and such prior owner retains
no interest in such Mortgage Loan or other Collateral.

          Section 6.14 No Burdensome Restrictions. No Requirement of Law or Contractual
Obligation of any Borrower or any of its respective Subsidiaries would reasonably be expected to
have a Material Adverse Effect.

          Section 6.15 Subsidiaries. All of the Subsidiaries of any Borrower are listed on
Schedule 6.15 to this Agreement.

          Section 6.16 Financial Statements; Fraudulent Conveyance.

     (a) The consolidated balance sheet of the Borrowers and any Subsidiaries as of the
specific date and the related statements of income and cashflows for that fiscal year,
previously furnished to the Secured Parties, fairly present the financial condition of the
Borrowers as of that date and the results of its operations for that fiscal period. The
Borrowers had, on that date, no known liabilities, direct or indirect, fixed or contingent,
matured or unmatured, or liabilities for taxes, long-term leases, or unusual forward or
long-term commitments not disclosed by, or reserved against in, said balance sheet and
related statements, except for the Lenders’ extensions of credit to the Borrowers. Except
for financial statements prepared for interim periods between the fiscal year-end, all
financial statements were prepared in accordance with GAAP applied on a consistent basis
throughout the periods involved. Since the date of the statement, there has been no change
in the business, operations, assets or financial condition of any Borrower that
could reasonably be expected to have any Material Adverse Effect, nor is any Borrower
aware of any state of facts that (with or without notice or lapse of time or both) could
reasonably be expected to have any Material Adverse Effect.

42

 

     (b) No Borrower intends to incur, or believes that it has incurred, debt beyond its
ability to pay such debts as they mature. No Borrower is taking any action to commence
insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a
receiver, liquidator, conservator, trustee or similar official in respect of such Borrower
or any of its assets. No Borrower is pledging or transferring any Assets with any intent
to hinder, delay or defraud any of its creditors.

          Section 6.17 Regulation U. No part of the proceeds of any Advance will be used to
purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any Margin Stock.

          Article VII. Covenants of the Borrowers. Each Borrower hereby covenants and agrees
with the Secured Parties that, so long as any Advance is outstanding and until payment in full of
all Obligations:

          Section 7.01 Financial Statements. The Borrower Representative shall deliver to the
Administrative Agent and each Lender:

	 	(a)	 	as soon as available and in any event within thirty (30) days after
the end of each month, the consolidated balance sheet of the Borrowers and
consolidated Subsidiaries as at the end of such period and the related unaudited
consolidated statements of income for the Borrowers and consolidated Subsidiaries
for such period and the portion of the fiscal year through the end of such
period, setting forth in each case in comparative form the figures for the
previous year and accompanied by a certificate of a Responsible Officer of the
Borrower Representative, which certificate shall state that said consolidated
financial statements fairly present the consolidated financial condition and
results of operations of the Borrowers and Subsidiaries in accordance with GAAP,
consistently applied, as at the end of, and for, such period (subject to normal
year-end audit adjustments);
	 
	 	(b)	 	as soon as available and in any event within ninety (90) days after
the end of each fiscal year of the Borrowers, (i) the consolidated balance sheets
of the Borrowers and consolidated Subsidiaries as at the end of such fiscal year
and the related consolidated statements of income and retained earnings and of
cash flows for the Borrowers and consolidated Subsidiaries for such year, setting
forth in each case in comparative form the figures for the previous year, and
(ii) an audit report on the items listed in clause (i) hereof prepared and
certified by independent certified public accountants of recognized standing and
acceptable to the Administrative Agent, which audit report shall state that such
financial statements fairly present the financial position of the Borrowers and
Subsidiaries at the dates indicated and the results of their operations and cash
flows for the periods indicated
in conformity with GAAP and that the examination by such accountants in
connection with such financial statements has been made in accordance with
generally accepted auditing standards. The deliveries made pursuant to this
clause shall be accompanied by (X) any management letter prepared 

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	 	 	 	by the
above-referenced accountants and (Y) a certificate of such accountants that,
in the course of their examination necessary for their certification of the
foregoing, they have obtained no knowledge of any Default or Event of Default,
or if, in the opinion of such accountants, any Default or Event of Default
shall exist, a statement of the nature and status thereof;

	 	(c)	 	[Reserved];
	 
	 	(d)	 	the Borrower Representative shall furnish to the
Administrative Agent, at the time as it furnishes each set of financial
statements pursuant to paragraphs (a) and (b) above, a certificate of a
Responsible Officer of the Borrower Representative to the effect that, to the
best of such Responsible Officer’s knowledge, such Borrower, as applicable,
during such fiscal period or year has observed or performed all of its
covenants and other agreements, and satisfied every condition, contained in
this Agreement and the other Loan Documents to be observed, performed or
satisfied by it, and that such Responsible Officer has obtained no knowledge
of any Default or Event of Default except as specified in such certificate
(and, if any Default or Event of Default has occurred and is continuing,
describing the same in reasonable detail and describing the action such
Borrower, as applicable, has taken or proposes to take with respect thereto);
and
	 
	 	(e)	 	from time to time such other information regarding the
financial condition, operations, or business of any Borrower as the
Administrative Agent may request.

          Section 7.02 Litigation. Each Borrower shall promptly, and in any event within two
(2) Business Days after service of process on any of the following, give to the Administrative
Agent notice of all legal or arbitral proceedings affecting such Borrower or any of their
respective Subsidiaries that questions or challenges the validity or enforceability of any of the
Loan Documents or as to which there is a reasonable likelihood of an adverse determination that
would result in a Material Adverse Effect.

          Section 7.03 Existence, Etc. Each Borrower and their respective Subsidiaries will:

	 	(a)	 	preserve and maintain its legal existence and all of its
material rights, privileges, licenses, and franchises;
	 
	 	(b)	 	comply with the requirements of all applicable laws, rules,
regulations, and orders of Governmental Authorities and other Requirements of
Law (including, without limitation, truth in lending, real estate settlement
procedures, consumer protection and all environmental laws) if failure to
comply with such requirements would be reasonably likely (either
individually or in the aggregate) to have a Material Adverse Effect;

44

 

	 	(c)	 	keep adequate records and books of account, in which complete
entries will be made in accordance with GAAP consistently applied;
	 
	 	(d)	 	pay and discharge all taxes, assessments, and governmental
charges or levies imposed on it or on its income or profits or on any of its
Property prior to the date on which penalties attach thereto, except for any
such tax, assessment, charge, or levy the payment of which is being contested
in good faith and by proper proceedings and against which adequate reserves
are being maintained;
	 
	 	(e)	 	permit representatives of the Administrative Agent, during normal
business hours upon prior written notice at a mutually desirable time (or at any
time and from time to time upon the occurrence of a Default or an Event of
Default and during the continuance thereof), to examine, copy and make extracts
from any Borrower’s books and records, to inspect any of its Properties, and to
discuss its business and affairs with its officers, all to the extent reasonably
requested by the Administrative Agent; and
	 
	 	(f)	 	limit its activities to such activities as are incident to and
necessary or convenient to accomplish the following purposes: to acquire, own,
hold, pledge, finance and otherwise deal with the Collateral, or with the
prior written consent of the Administrative Agent, property or assets similar
to the Collateral (collectively, the “Related Assets”), in each case,
as are to be pledged to the Secured Parties pursuant to this Agreement and
(ii) to sell, securitize or otherwise liquidate all or any portion of such
Related Assets in accordance with the provisions of this Agreement.

          Section 7.04 Prohibition of Fundamental Changes; Subsidiaries. No Borrower shall
enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or
dissolve itself (or suffer any liquidation, winding up or dissolution) or sell any substantial
portion of its assets, other than (i) any Borrower may merge into Franklin Asset or Tribeca, as
applicable, and (ii) pursuant to the Transactions. No Borrower shall establish any Subsidiary
(other than a Borrower existing as of the Effective Date).

          Section 7.05 Restricted Payments. No Borrower shall make or declare any Restricted
Payment, other than any Subsidiary of Franklin Asset or Tribeca, as applicable, may make a
Restricted Payment to Franklin Asset or Tribeca, as applicable.

          Section 7.06 Notices. The Borrower Representative shall give notice to the
Administrative Agent promptly:

	 	(a)	 	within three (3) Business Days after such Borrower becomes
aware of the occurrence of any Default or Event of Default or any event of
default or default under any other material agreement of such Borrower;
	 
	 	(b)	 	within three (3) Business Days after service of process on any
Borrower or any of their respective Subsidiaries, or any agent thereof for
service of process, in respect of any legal or arbitral proceedings affecting
any 

45

 

	 	 	 	Borrower or any of their respective Subsidiaries (i) that questions or
challenges the validity or enforceability of any of the Loan Documents or (ii)
in which the amount in controversy exceeds $250,000;

	 	(c)	 	upon any Borrower becoming aware of any Default related to any
Collateral, any Material Adverse Effect, or any event or change in
circumstances that should reasonably be expected to have a Material Adverse
Effect;
	 
	 	(d)	 	upon any Borrower becoming aware that any Collateral with an
aggregate fair market value of at least $100,000 has been damaged by waste,
fire, earthquake or earth movement, windstorm, flood, tornado or other
casualty, or otherwise damaged;
	 
	 	(e)	 	upon the entry of a judgment or decree against any Borrower in
an amount in excess of $100,000.

Each notice pursuant to this Section 7.06 (other than 7.06(e)) shall be accompanied by a statement
of a Responsible Officer setting forth details of the occurrence referred to therein and stating
what action the applicable Borrower has taken or proposes to take with respect thereto.

          Section 7.07 Perfection of Participant Trust Certificates. Unless a Default shall
have occurred and be continuing, the Administrative Agent shall not (i) sell, pledge, transfer or
otherwise assign its interest in any Participant Trust Certificate, other than to secure
obligations of the Administrative Agent or any Lender to any Governmental Authority having
jurisdiction with respect thereto, or (ii) provide direction to any trustee under the New Trust
Trust Agreement or take any other action to terminate the New Trust Trust Agreement, in each
instance, without the prior written consent of the Borrower Representative. Notwithstanding the
registration of any Participant Trust Certificate in the Administrative Agent’s name in order to
perfect the Administrative Agent’s Liens in such property and to enable the Administrative Agent to
exercise remedies under the Loan Documents, each Borrower agrees that, regardless of such
designation, subject to the terms of the applicable trust agreements, FCAC Subco shall possess all
other indicia of ownership of each Participant Trust Certificate, including without limitation all
matters related to taxes and preparing returns regarding the same.

          Section 7.08 Activities of Franklin Servicing. No Borrower shall permit Franklin
Servicing LLC to conduct any business, other than the servicing of loans in the states of Michigan,
Illinois, and Massachusetts and any other state to which the Administrative Agent has provided
prior written approval after the request of the Borrower Representative; provided that Franklin
Servicing LLC shall conduct business activities only to the extent that FCMC does not have a valid
license or other authority to conduct such business; and provided further, however, no Loan Party
shall be under any contractual obligation or agreement to make cash contributions or investments
in, loans and advances to, enter into any Guarantee or other accommodation for the benefit of, or
contribute or transfer any property to, Franklin Servicing LLC in excess of the
aggregate sum of $350,000 from and after the formation of Franklin Servicing LLC. The Loan
Parties shall cause (i) Franklin Servicing LLC at all times to maintain its limited liability
company existence and preserve and keep, or cause to be preserved and kept, in full force and

46

 

effect its rights and licenses material to its business; and (ii) Holding to pledge one hundred
percent (100%) of the Capital Stock of Franklin Servicing LLC and all dividends or distributions in
respect thereof to the Administrative Agent.

          Section 7.09 Settlement of Claims. No Borrower will enter into, and will not permit
Holding, FCMC or any Servicer to enter into, any settlement agreement in respect of the WMC Claims
or any other property subject to any Pledge Agreement without the prior written consent of the
Administrative Agent and, to the extent any such settlement involves the WMC Claims, the prior
written consent of M& I.

          Section 7.10 Transactions with Affiliates. No Borrower shall enter into any
transaction, including, without limitation, any purchase, sale, lease, or exchange of property or
the rendering of any service, with any Affiliate unless such transaction is (a) otherwise permitted
under this Agreement, (b) in the ordinary course of such Borrower’s business, and (c) upon fair and
reasonable terms no less favorable to such Borrower than it would obtain in a comparable arm’s
length transaction with a Person that is not an Affiliate, or make a payment that is not otherwise
permitted by this Section 7.10.

          Section 7.11 Use of Proceeds. The Borrowers will use the proceeds of the Advances
solely for the purposes described in Section 2.08.

          Section 7.12 Limitation on Liens. No Borrower shall, nor will it permit or allow
others to, create, incur or permit to exist any Lien, security interest or claim on or to any of
its Property, except for Liens on the Collateral created pursuant to this Agreement. The Borrowers
will defend the Collateral against, and will take such other action as is necessary to remove, any
Lien, security interest or claim on or to the Collateral, other than the security interests created
under this Agreement, and the Borrowers will defend the right, title and interest of each Secured
Party in and to any of the Collateral against the claims and demands of all persons whomsoever. The
Borrowers shall take all action necessary to fully preserve, maintain and protect each Secured
Party’s security interest in the Collateral including, without limitation, the first priority
status of such security interest.

          Section 7.13 Limitation on Indebtedness. No Borrower shall incur any liabilities for
Indebtedness, other than (i) the Advances, and (ii) loans and advances from one Borrower to
another.

          Section 7.14 Limitation on Sale of Assets. No Borrower shall convey, sell, lease,
assign, transfer, or otherwise dispose of (collectively, “Transfer”), all or any portion of
its Property, business or assets (including, without limitation, receivables and leasehold
interests) whether now owned or hereafter acquired or allow any Subsidiary to Transfer any portion
all of its assets to any Person, other than Borrowers shall be permitted to Transfer (i) the REIT
shares with the prior written consent of Huntington and HF and (ii) the Participant Trust
Certificates with the prior written consent of each of the other Lenders.

          Section 7.15 Limitation on Investments. No Borrower and no Subsidiary of a Borrower
shall directly or indirectly make or own any Investment except (i) Investments in Cash Equivalents
pledged to the Administrative Agent, and (ii) loans and advances from one Borrower to another.

47

 

          Section 7.16 Solvency. No Borrower shall incur debts beyond its ability to pay such
debts as they mature. No Borrower shall commence any insolvency, bankruptcy, liquidation, or
consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee, or
similar official in respect of such Borrower or any of its respective assets. No Borrower shall
have a judgment entered against it returned unsatisfied.

          Section 7.17 No Amendment or Waiver. No Borrower shall, nor shall it permit or allow
any Person to, amend, modify, terminate or waive any provision of any Collateral in any manner that
shall reasonably be expected to materially and adversely affect the value of such item of
Collateral.

          Section 7.18 Maintenance of Property; Insurance. Each Borrower shall keep all
property useful and necessary in its business in good working order and condition. Each Borrower
shall cause FCMC to maintain errors and omissions insurance and blanket bond coverage in such
amounts as are in effect on the Effective Date (as disclosed to the Administrative Agent in
writing) and shall not reduce such coverage without the written consent of the Administrative
Agent, and shall also maintain or cause FCMC to maintain such other insurance with financially
sound and reputable insurance companies, and with respect to property and risks of a character
usually maintained by entities engaged in the same or similar business similarly situated, against
loss, damage and liability of the kinds and in the amounts customarily maintained by such entities.

          Section 7.19 Further Identification of Collateral. Each Borrower shall furnish to the
Administrative Agent from time to time statements and schedules further identifying and describing
the Collateral and such other reports in connection with the Collateral as the Administrative Agent
may request, all in reasonable detail.

          Section 7.20 Organizational Documents, Pledge or Transfer of Equity Interests.

	 	(a)	 	No Borrower shall amend its articles or certificate of
incorporation, code of regulations or by-laws, limited liability company
agreement, operating agreement, certificate of formation or other
organizational document without the prior written consent of the
Administrative Agent, which consent will not be unreasonably withheld or
delayed.
	 
	 	(b)	 	No Borrower shall change its name without at least thirty (30)
days prior written notice to the Administrative Agent.
	 
	 	(c)	 	No Borrower will permit or allow others to, create, incur or
permit to exist any Lien, security interest or claim on or to any Equity
Interests of FCMC, Franklin Servicing LLC, Franklin Asset or Tribeca, other
than a Lien securing the Obligations.

          Section 7.21 Payment of Expenses. At all times after the Effective Date, no Borrower
shall incur any liabilities or pay any expenses other than liabilities and expenses incurred in the
ordinary course of business and approved in writing by the Administrative Agent. No Borrower shall
incur any liability or pay any amount to FCMC or any Affiliate.

48

 

          Section 7.22 Certain Post-Effective Date Deliverables. The Borrowers will comply with
each requirement or condition subsequent set forth on Schedule 7.22 on or before the date
applicable thereto set forth on Schedule 7.22, or such later date as the Administrative
Agent in writing shall provide, to the satisfaction of the Administrative Agent, and each Borrower
hereby agrees that the failure of any Borrower to so perform or cause to be performed shall
constitute an Event of Default hereunder without cure of any kind; provided, with respect to any
such event, the Administrative Agent shall have provided notice to the Borrower Representative of
such event.

          Section 7.23 Representations and Warranties; Disclosure Updates. Each Borrower shall
promptly and in no event later than five (5) Business Days after obtaining knowledge thereof,
notify the Administrative Agent if any written information, exhibit, or report furnished to the
Administrative Agent or any Lender contained any untrue statement of a material fact or omitted to
state any material fact necessary to make the statements contained therein not misleading in light
of the circumstances in which made. The foregoing to the contrary notwithstanding, any
notification pursuant to the foregoing provision will not cure or remedy the effect of the prior
untrue statement of a material fact or omission of any material fact nor shall any such
notification have the affect of amending or modifying this Agreement or any of the Schedules
hereto.

          Section 7.24 Enforcement of Purchase Agreement. At all times, the Borrower
Representative agrees to diligently pursue and enforce any rights and remedies under any purchase
agreements for the purchase of Mortgage Loans, in which any Borrower has any right, title or
interest.

          Article VIII. Section 8.01 Events of Default. An “Event of Default” shall
exist under this Agreement (i) if any one or more of the events set forth in clause (g) or (h)
shall have occurred or (ii) if any one or more of the other events described below shall have
occurred, and with respect to any such event, the Administrative Agent shall have provided notice
to the Borrower Representative of such event:

	 	(a)	 	any Borrower shall fail to make a Required Payment on any Payment
Date or otherwise fail to pay any principal of or interest on any Advance prior
to the close of business on the date on which such payment is due (whether at
stated maturity, upon acceleration or at mandatory prepayment or otherwise); or
	 
	 	(b)	 	any Borrower shall default in the payment of any other amount
payable by it under this Agreement or any other Loan Document, and such default
shall have continued unremedied for three (3) Business Days; or
	 
	 	(c)	 	any representation, warranty or certification made or deemed made
in this Agreement or in any other Loan Document by any Loan Party or any
certificate furnished to the Administrative Agent pursuant to the provisions
hereof or thereof, shall prove to have been false or misleading in any material
respect as of the time made or furnished; or

49

 

	 	(d)	 	any Borrower shall fail to comply with the requirements of Section
7.01, Section 7.02, Section 7.03(a), Section 7.03(b), Section 7.03(d), Section
7.03(e), Section 7.04, Section 7.05, Section 7.06 (a), (b) or (c), Sections 7.10
through 7.18, Sections 7.20 through 7.24, or any Loan Party shall otherwise fail
to observe or perform any other agreement contained in this Agreement or any
other Loan Document, and such failure to observe or perform shall continue
unremedied for a period of ten (10) Business Days; or
	 
	 	(e)	 	a final judgment or judgments for the payment of money in excess
of, with respect to any Loan Party or any Subsidiary of any Loan Party, $250,000
in the aggregate shall be rendered against such Loan Party, by one or more
courts, administrative tribunals or other bodies having jurisdiction over them
and the same shall not be discharged (or provision shall not be made for such
discharge) or bonded, or a stay of execution thereof shall not be procured,
within sixty (60) days from the date of entry thereof and such Loan Party shall
not, within said period of sixty (60) days, or such longer period during which
execution of the same shall have been stayed or bonded, appeal therefrom and
cause the execution thereof to be stayed during such appeal; or
	 
	 	(f)	 	any Loan Party shall admit in writing its inability to pay its
debts as such debts become due; or
	 
	 	(g)	 	any Loan Party shall (i) apply for or consent to the appointment
of, or the taking of possession by, a receiver, custodian, trustee, examiner, or
liquidator of itself or of all or a substantial part of its property, (ii) make
a general assignment for the benefit of its creditors, (iii) commence a
voluntary case under the Bankruptcy Code, (iv) file a petition seeking to take
advantage of any other law relating to bankruptcy, insolvency, reorganization,
liquidation, dissolution, arrangement or winding-up, or composition or
readjustment of debts, (v) fail to controvert in a timely and appropriate
manner, or acquiesce in writing to, any petition filed against it in an
involuntary case under the Bankruptcy Code, or (vi) take any corporate or other
action for the purpose of effecting any of the foregoing; or
	 
	 	(h)	 	a proceeding or case shall be commenced, without the application
or consent of any Loan Party or any Subsidiary of a Loan Party, in any court of
competent jurisdiction, seeking (i) its reorganization, liquidation,
dissolution, arrangement or winding-up, or the composition or readjustment
of its debts, (ii) the appointment of a receiver, custodian, trustee,
examiner, liquidator, or the like of any Loan Party or any such Subsidiary or
of all or any substantial part of its property, or (iii) similar relief in
respect of any Loan Party or any such Subsidiary under any law relating to
bankruptcy, insolvency, reorganization, winding-up, or composition or
adjustment of debts, and such proceeding or case shall continue undismissed,
or an order, 

50

 

	 	 	 	judgment or decree approving or ordering any of the foregoing
shall be entered and continue unstayed and in effect, for a period of sixty
(60) or more days; or an order for relief against any Loan Party or any such
Subsidiary shall be entered in an involuntary case under the Bankruptcy Code;
or

	 	(i)	 	this Agreement, any Note, or any other Loan Document shall for
whatever reason (including an Event of Default, Default, default or event of
default, as applicable thereunder) be terminated, or any Lien of any Secured
Party on any material portion of the Collateral shall cease to be a valid and
perfected first priority Lien on or other security interest in any of the
Collateral, or any Borrower’s obligations under this Agreement shall cease to be
in full force and effect, or the enforceability of any Loan Document shall be
contested by any Loan Party; or
	 
	 	(j)	 	(i) any Loan Party or any ERISA Affiliate shall engage in any
non-exempt “prohibited transaction” (as defined in Section 406 of ERISA or
Section 4975 of the Code) involving any Plan, (ii) any material “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not waived,
shall exist with respect to any Plan or any Lien in favor of the PBGC or a Plan
shall arise on the assets of any Loan Party or any ERISA Affiliate, (iii)
proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Plan of any Loan Party or any
ERISA Affiliate, which commencement of proceedings or appointment of a trustee
is, in the reasonable opinion of the Administrative Agent, likely to result in
the termination of such Plan for purposes of Title IV of ERISA, (iv) any such
Plan shall terminate for purposes of Title IV of ERISA, (v) any Loan Party or
any ERISA Affiliate shall, or in the reasonable opinion of the Administrative
Agent is likely to, incur any liability in connection with a withdrawal from, or
the insolvency or reorganization of, a Multiemployer Plan, or (vi) any other
event or condition shall occur or exist with respect to a Plan; and in each case
in clauses (i) through (vi) above, such event or condition, together with all
other such events or conditions, if any, could reasonably be expected to have a
Material Adverse Effect; or
	 
	 	(k)	 	any Change of Control of any Loan Party shall have occurred; or
	 
	 	(l)	 	any Loan Party shall grant, or suffer to exist, any Lien on any
Collateral except the Liens contemplated by this Agreement; or the Liens
contemplated hereby shall cease to be first priority perfected and
enforceable Liens on the Collateral in favor of the Secured Parties or shall
be Liens in favor of any Person other than the Secured Parties; or
	 
	 	(m)	 	any Loan Party or any Subsidiary of a Loan Party shall default
under, or fail to perform as required under, or shall otherwise breach the terms
of any instrument, agreement or contract between such Loan Party or such other

51

 

	 	 	 	Person, on the one hand, and the Administrative Agent or any Lender or any of
the Administrative Agent’s or any Lender’s Affiliates on the other hand, whether
or not such default results in the acceleration or prepayment of any
Indebtedness thereunder; or any Loan Party or any Subsidiary of a Loan Party
such entity shall default under, or fail to perform as requested under, the
terms of any repurchase agreement, credit and security agreement or similar
credit facility or agreement which provides for borrowed funds in an amount in
excess of $100,000, in each case entered into by such Loan Party or such other
entity and any third party, which default or failure resulted in the
acceleration or prepayment of any Indebtedness thereunder;

	 	(n)	 	Servicer shall cease its servicing business, a Material Adverse
Effect occurs in respect of Servicer, or any default or event of default shall
occur under the Servicing Agreement;
	 
	 	(o)	 	(i) Holding shall fail, prior to June 30, 2009, to amend Article
VII. D of the Fifth Amended and Restated Certificate of Incorporation of FCMC to
delete the following provision: “Any action or transaction by or involving the
Corporation, other than the election or removal of directors, that requires for
its adoption the approval of the stockholders of the Corporation under the
General Corporation Law of the State of Delaware or this Certificate of
Incorporation shall, pursuant to Section 251(g) of the General Corporation Law
of the State of Delaware, require, in addition, the approval of the stockholders
of Franklin Credit Holding Corporation, a Delaware corporation, or any successor
thereto by merger, by the same vote that is required by the General Corporation
Law of the State of Delaware or this Certificate of Incorporation, as the case
may be,” or (ii) Holding or FCMC after the Effective Date shall amend, restate,
supplement or otherwise modify such amended and restated certificate of
incorporation, the bylaws or other organizational or governing document of FCMC
to add or make effective any substantially similar provision; or
	 
	 	(p)	 	any Material Adverse Effect with respect to any Loan Party or any
of their respective Subsidiaries, or the Collateral, in each case as determined
by the Administrative Agent in its reasonable discretion, or the existence of
any other condition that, in the Administrative Agent’s reasonable discretion,
constitutes a material impairment of any Loan Party’s ability to perform its
obligations under this Agreement, the Note or any other Loan Document.

          Article IX. Remedies.

          Section 9.01
Remedies Upon Default. (a) Upon the occurrence of one or more
Events of Default (subject to the expiration of the applicable cure period contained
therein) other than those referred to in Section 8(g) or (h), the Required Lenders (at
their election but without notice of their election and without demand) may authorize and
instruct the Administrative Agent to do any one or more of the following on behalf of the

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Secured Parties (and the Administrative Agent, acting upon the instructions of the Required
Lenders, shall, subject to the terms of Article 12 hereof, do the same on behalf of the
Secured Parties), all of which are authorized by the Borrowers: (i) immediately declare all
Obligations then outstanding to be immediately due and payable, together with all interest
accrued thereon and all other amounts due under this Agreement, the Notes and any other
Loan Document; provided, that upon the occurrence of an Event of Default referred
to in Sections 8(g) or (h), such amounts shall immediately and automatically become due and
payable without any further action by any Person and (ii) the Administrative Agent may
exercise, in addition to all other rights and remedies granted to it in this Agreement, the
rights and remedies provided for under any Loan Document. Upon such declaration or such
automatic acceleration, the unpaid balance of all Advances then outstanding and all other
amounts due under this Agreement and any other Loan Document shall become immediately due
and payable, without presentment, demand, protest, or other formalities of any kind, all of
which are hereby expressly waived by the Borrowers, and the Administrative Agent, upon
receipt of instructions from the Required Lenders, subject to the terms of Section 12
hereof, thereupon shall exercise any rights and remedies the Loan Documents, including but
not limited to, the transfer of servicing or the liquidation of the Collateral on a
servicing released basis. To the extent permitted by applicable law, each Borrower waive
all claims, damages, and demands it may acquire against the Administrative Agent or the
Lenders arising out of the exercise by the Administrative Agent or a Secured Party of any
of their rights hereunder or under any other Loan Documents, other than those claims,
damages, and demands to the extent any of the foregoing is found in a final non-appealable
judgment by a court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of the Administrative Agent or a Lender.

     (b) Upon the occurrence of one or more Events of Default, the Administrative Agent
shall have the right to obtain physical possession of all records and all other files of
the Borrowers relating to the Collateral and all documents relating to the Collateral that
are then or may thereafter come in to the possession of any Loan Party, or any third party
acting for any Loan Party, and each Loan Party shall deliver to the Administrative Agent
such assignments and other documents as the Administrative Agent shall request. The
Administrative Agent shall be entitled to specific performance of all agreements of each
Loan Party contained in this Agreement and any other Loan Document.

     (c) If a Default shall occur and be continuing, the Administrative Agent may, at its
option, enter into one or more Interest Rate Hedge Agreements covering all or a portion of
the Advances, and the Borrowers shall be responsible for all damages, judgments, costs, and
expenses (including, without limitation, reasonable attorneys’ fees and disbursements) of
any kind which may be imposed on, incurred by, or asserted
against the Administrative Agent relating to or arising out of such Interest Rate
Hedge Agreements; including without limitation any losses resulting from such Interest Rate
Hedge Agreements.

     (d) Any money or property collected or otherwise received by the Administrative Agent
in connection with the exercise of its rights and remedies specified in this Section 9.01
(including, without limitation, any money or property received in

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respect of a liquidation
of any Collateral) shall be applied by the Administrative Agent first, to the
payment of any Obligations in respect of any protective advances, fees, expenses,
reimbursements or indemnities then due to the Administrative Agent, second, to the
payment of any Obligations in respect of any protective advances, fees, expenses,
reimbursements or indemnities then due to any Lender, and then, in the same order
of priority as Section 2.04(d).

          Article X. Miscellaneous.

          Section 10.01 Waiver. No failure on the part of the Administrative Agent to exercise,
no delay in exercising, and no course of dealing with respect to, any right, power, or privilege
under this Agreement or any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power, or privilege under this Agreement or any other Loan
Document preclude any other or further exercise thereof or the exercise of any other right, power,
or privilege. The remedies provided herein and therein are cumulative and not exclusive of any
remedies provided by law.

          Section 10.02 Notices. Except as otherwise expressly permitted by this Agreement, all
notices, requests, and other communications provided for herein (including, without limitation, any
modifications of, or waivers, requests or consents under, this Agreement) shall be given or made in
writing (including, without limitation, by telex or telecopy) delivered to the intended recipient
at the “Address for Notices” specified below its name on the signature pages hereof) or, as
to any party, at such other address as shall be designated by such party in a written notice to
each other party. Except as otherwise provided in this Agreement and except for notices given under
Article 2 (which shall be effective only on receipt), all such communications shall be deemed to
have been duly given when transmitted by telex or telecopier or personally delivered or, in the
case of a mailed notice, upon receipt, in each case given or addressed as aforesaid.

          Section 10.03 Indemnification and Expenses.

     (a) Each Borrower hereby agrees jointly and severally, to hold each Secured Party, and
each Affiliate thereof and the respective officers, directors, employees, agents, and
advisors of each Secured Party (each an “Indemnified Party”) harmless from and
indemnify the Secured Parties and such other Persons against all liabilities, losses,
damages, judgments, costs, and expenses of any kind that may be imposed on, incurred by, or
asserted against the Secured Parties or such other Persons, relating to or arising out of,
this Agreement (including, without limitation, any cost, loss, or expense which the Secured
Parties or such other Persons may sustain or incur as a consequence of any acceleration of
the maturity of the Advances by the Secured Parties in accordance with
the terms of this Agreement, including, but not limited to, any cost, loss, or expense
arising in liquidating the Advances and the Collateral and from interest or fees payable by
the Secured Parties to lenders of funds obtained by it in order to maintain the Advances
hereunder), the Notes, any other Loan Document or any financing transaction contemplated
hereby or thereby, or any amendment, supplement, or modification of, or any waiver or
consent under or in respect of, this Agreement, the Notes, any other Loan Document, or any
financing transaction contemplated hereby or thereby, that, in each

54

 

case, results from any
matter whatsoever, except to the extent any of the foregoing is found in a final
non-appealable judgment by a court of competent jurisdiction to have resulted from the
gross negligence or willful misconduct of the Administrative Agent or a Lender. Without
limiting the generality of the foregoing, each Borrower agrees, jointly, and severally, to
hold the Secured Parties and any other indemnified Person described above harmless from and
indemnify such Indemnified Party against all costs with respect to all any Mortgage Loan
and any REO Property at any time owned by any Borrower relating to or arising out of any
violation or alleged violation of any environmental law, rule, or regulation or any
consumer credit laws, including, without limitation, laws with respect to unfair or
deceptive lending practices and predatory lending practices, the Truth in Lending Act, and
the real estate settlement procedures act, that, in each case, results from anything other
than to the extent any of the foregoing is found in a final non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or willful
misconduct of such Indemnified Party. In any suit, proceeding, or action brought by any
Secured Party in connection with any other Collateral pledged hereunder for any sum owing
thereunder, or to enforce any provisions of any Collateral pledged hereunder, each Borrower
will save, indemnify and hold the Secured Parties and any other indemnified Person
described above harmless from and against all expense, loss, or damage suffered by reason
of any defense, set-off, counterclaim, recoupment, reduction, or liability whatsoever of
the account debtor or obligor thereunder, arising out of a breach by any Borrower of any
obligation thereunder or arising out of any other agreement, Indebtedness, or liability at
any time owing to or in favor of such account debtor or obligor or its successors from any
Borrower. Each Borrower also agrees, jointly and severally, to reimburse the Secured
Parties as and when billed by the Administrative Agent for all the Secured Parties’
reasonable out-of-pocket costs and expenses incurred in connection with the enforcement or
the preservation of the Secured Parties’ rights under this Agreement, the Notes, any other
Loan Document, or any financing transaction contemplated hereby or thereby, including,
without limitation, the reasonable fees and disbursements of its counsel.

     (b) Each Borrower agrees to pay as and when billed by the Administrative Agent all of
the out-of pocket costs and expenses reasonably incurred by the Administrative Agent in
connection with the development, preparation, and execution of any amendment, restatement
supplement, or modification to this Agreement, any Note, any other Loan Document, or any
other documents prepared in connection herewith or therewith. Each Borrower further agrees
to pay as and when billed by the Administrative Agent all of the out-of-pocket costs and
expenses, reasonably incurred by any Secured Party (i) in connection with the development,
preparation, and execution of this Agreement, each Note and any Loan Document executed in
connection herewith or therewith, and consummation and administration of the financing
transactions
contemplated hereby and thereby including, without limitation, (A) all the reasonable
fees, disbursements, and expenses of counsel for the Administrative Agent and for each
other Secured Party and (B) all the due diligence, inspection, testing, and review costs
and expenses incurred by any Secured Party with respect to Collateral under this Agreement,
including, but not limited to, those costs and expenses incurred by any Secured Party
pursuant to Sections 11.01, 11.05, and 11.10, other than any costs and expenses incurred in
connection with the Secured Parties’ re-hypothecation of the Assets

55

 

prior to an Event of
Default, and (ii) all of the out-of pocket costs and expenses after the occurrence of an
Event of Default or in connection with the enforcement of any right or remedy under this
Agreement or applicable law .

          Section 10.04 Amendments. (a) Subject to the provisions of this Section 10.04, the
Required Lenders (or the Administrative Agent with the consent in writing of the Required Lenders)
and any Loan Party may enter into agreements supplemental hereto for the purpose of adding or
modifying any provisions of this Agreement or any Loan Document, or changing in any manner the
rights of the Lenders or any Loan Party hereunder or thereunder or waiving any Event of Default
hereunder; provided, however, that no such supplemental agreement, waiver or amendment
shall, without the consent of each Lender affected thereby:

     (i) Extend any Termination Date or any other date fixed for any payment of
principal of, or interest on, the Advances, or any fees or other amounts payable to
such Lender (except with respect to modifications of the provisions relating to
prepayments of Advances and other Obligations);

     (ii) Reduce the rate of interest on any Advance, fee, or other amount due such
Lender;

     (iii) Reduce the percentage specified in the definition of Required Lenders or
any other percentage of Lenders specified to be the applicable percentage in this
Agreement to act on specified matters or amend the definitions of “Required
Lenders,” or “Pro Rata Share”;

     (iv) Increase the amount of Commitment of any Lender;

     (v) Other than pursuant to a transaction permitted by the terms of this
Agreement, release all or substantially all of the Collateral;

     (vi) Amend this Section 10.04;

     (vii) Amend the definition of “Participant Trust Certificates
Percentage”; or

     (viii) Amend any percentage set forth in last paragraph of Section 2.04(d).

          (b) No amendment of any provision of this Agreement relating to the Administrative Agent shall
be effective without the written consent of the Administrative Agent,
and no amendment of the definition of “BOS Adjustment” shall be effective without the
written consent of BOS. The Administrative Agent may waive payment of the fee required under
Section 12.01(c) without obtaining the consent of any of the Lenders. Except as otherwise
expressly provided in Section 10.04(a) above, any provision of this Agreement may only be amended,
modified or supplemented only by an instrument in writing signed by each Borrower, the
Administrative Agent, and the Required Lenders.

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          Section 10.05 Successors and Assigns. Subject to Sections 12.01 and 12.02, this
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

          Section 10.06 Survival. The obligations of each Borrower under Sections 2.06 3.03,
10.03 and 11.05 hereof shall survive the repayment of the Advances and the termination of this
Agreement. In addition, each representation and warranty made, or deemed to be made by a request
for a borrowing, herein or pursuant hereto shall survive the making of such representation and
warranty and the disbursement of the related Advance, and the Secured Parties shall not be deemed
to have waived, by reason of making any Advance, any Default that may arise by reason of such
representation or warranty proving to have been false or misleading, notwithstanding that the
Secured Parties may have had notice or knowledge or reason to believe that such representation or
warranty was false or misleading at the time such Advance was made.

          Section 10.07 Captions. The table of contents and captions and section headings
appearing herein are included solely for convenience of reference and are not intended to affect
the interpretation of any provision of this Agreement.

          Section 10.08 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such counterpart.

          Section 10.09 Governing Law. This Agreement shall be governed by Ohio law without
reference to choice of law doctrine.

          Section 10.10 SUBMISSION TO JURISDICTION; WAIVERS. Each party hereby irrevocably and
unconditionally:

	 	(i)	 	SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS,
OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE
NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF OHIO, THE
FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF
OHIO, AND APPELLATE COURTS FROM ANY THEREOF;
	 
	 	(ii)	 	CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN
SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT
MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT
AND AGREES NOT TO PLEAD OR CLAIM THE SAME;
	 
	 	(iii)	 	AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR
PROCEEDING MAY BE EFFECTED BY MAILING A COPY 

57

 

	 	 	 	THEREOF BY REGISTERED OR CERTIFIED
MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS
ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH
THE ADMINISTRATIVE AGENT SHALL HAVE BEEN NOTIFIED; AND

	 	(iv)	 	AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT
SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE
RIGHT TO SUE IN ANY OTHER JURISDICTION.

          Section 10.11 WAIVER OF JURY TRIAL. EACH BORROWER, EACH LENDER AND THE ADMINISTRATIVE
AGENT HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY
OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          Section 10.12 Acknowledgments. Each Borrower hereby acknowledges that:

	 	(a)	 	it has been advised by counsel in the negotiation, execution, and
delivery of this Agreement, the Notes and the other Loan Documents to which it
is a party;
	 
	 	(b)	 	the Secured Parties have no fiduciary relationship to such
Borrower, and the relationship between such Borrower and the Secured Parties is
solely that of debtor and creditor; and
	 
	 	(c)	 	no joint venture exists among or between the Secured Parties and
any such Borrower.

          Section 10.13 Non-liability of the Administrative Agent and the Lenders. Neither the
Administrative Agent nor any Lender undertakes any responsibility to any Borrower to review or
inform any Borrower of any matter in connection with any phase of a Borrower’s business or
operations. Each Borrower agrees that neither the Administrative Agent nor any Lender shall have
liability to any Borrower for losses suffered by a Borrower in connection with, arising out of, or
in anyway related to the Transactions or any financing transaction contemplated and the
relationship established by the Loan Documents, or any act, omission, or event occurring in
connection therewith, unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of
the party from which recovery is sought. Neither the Administrative Agent nor any Lender
shall have any liability with respect to, and the Borrowers hereby waive, release and agree
not to sue for, any special, indirect, consequential, or punitive damages suffered by the Borrowers
in connection with, arising out of, or in any way related to the Loan Documents, the financing
transactions contemplated thereby or any of the Transactions.

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          Section 10.14 Amendment and Restatement.

     (a) On the Closing Date, the Credit Agreements and the Existing Forbearance Agreements
shall be amended and restated in its entirety by this Agreement, and the Credit Agreements
and the Existing Forbearance Agreements shall thereafter be of no further force and effect
except to evidence (i) the incurrence by each Borrower of the indebtedness evidenced
thereby, (ii) the representations and warranties made by any Borrower prior to the Effective
Date, (iii) any action or omission performed or required to be performed pursuant to such
the Credit Agreements and the Existing Forbearance Agreements prior to the Effective Date
and (iv) the Static Loans will remain subject to the applicable Credit Agreement and
Existing Forbearance Agreement. This Agreement is not in any way intended to constitute a
novation of any obligation or liability of any Borrower existing under any Credit Agreement
or Existing Forbearance Agreement or evidence payment of all or any portion of any such
obligation and liability. Each security agreement and financing statement filed pursuant to
any Credit Agreement or Existing Forbearance Agreement or any predecessor thereto shall
remain in full force and effect in all respects as if such obligation or liability had been
payable and effective originally as provided by this Agreement.

     (b) The terms and conditions of this Agreement and the Administrative Agent’s, Lenders’
and Huntington’s rights and remedies under this Agreement and the other Loan Documents shall
apply to all of the obligations and liabilities incurred under any Credit Agreement or any
Existing Forbearance Agreement and any promissory notes or other instruments issued
thereunder.

     (c) Each Borrower reaffirms each Lien granted by it pursuant to any Existing Loan
Document executed and delivered in connection with any Credit Agreement or any Existing
Forbearance Agreement to The Huntington National Bank, as Lender and the Administrative
Agent for the benefit of Lenders and Huntington, which Liens shall continue in full force
and effect during the term of this Agreement and any renewals thereof and shall continue to
secure the Obligations.

     (d) On and after the Effective Date, (i) all references to any Credit Agreement or any
Existing Forbearance Agreement (or to any amendment or any amendment and restatement
thereof) in any Loan Document (other than this Agreement) shall be deemed to refer to the
such Credit Agreement or Existing Forbearance Agreement, as amended and restated hereby,
(ii) all references to any section (or subsection) of any Credit Agreement or any Existing
Forbearance Agreement in any Loan Document (but not herein) shall be amended to become,
mutatis mutandis, references to the corresponding provisions of this Agreement and (iii)
except as the context otherwise provides, on or after the Effective Date, all references to
this Agreement herein (including for purposes
of indemnification and reimbursement of fees) shall be deemed to refer to each Credit
Agreement or Existing Forbearance Agreement, as amended and restated hereby.

     (e) This amendment and restatement is limited as written and is not a consent to any
other amendment, restatement or waiver, whether or not similar and, except as expressly
provided herein or in any other Loan Document, all terms and conditions of

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each Existing
Loan Document remain in full force and effect unless otherwise specifically amended hereby
or any other Loan Document.

          Section 10.15 Assignment of Liens. As of the Effective Date, Huntington hereby assigns to
the Administrative Agent all Liens and security interests granted pursuant to any Credit Agreement,
the Existing Forbearance Agreements and any assignment, pledge, security agreement or other Loan
Document executed in connection therewith. In addition in respect to the Mortgage Loans and REO
Properties being transferred to New Trust, Huntington assigns to New Trust all Liens and security
interests granted in such Mortgage Loans and REO Properties pursuant to any Credit Agreement, the
Existing Forbearance Agreements and any assignment, pledge, security agreement or other Loan
Document executed in connection therewith.

          Section 10.16 Set-Off. In addition to any rights and remedies of each Lender and the
Administrative Agent provided by this Agreement and by law, the Administrative Agent and each
Lender shall have the right, without prior notice to any Borrower, any such notice being expressly
waived by each Borrower to the extent permitted by applicable law, upon any amount becoming due and
payable by any Borrower under this Agreement or any other Loan Document (whether at the stated
maturity, by acceleration or otherwise) to set-off and appropriate and apply against such amount
any and all Property and deposits (general or special, time or demand, provisional or final), in
any currency, and any other credits, Indebtedness or claims, in any currency, in each case whether
direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the
Administrative Agent, such Lender or any Affiliate thereof to or for the credit or the account of
any Borrower, irrespective of whether the Administrative Agent or such Lender shall have made any
demand under this Agreement or any other Loan Document and although such obligations of such
Borrower may be contingent or unmatured or are owed to a branch or office of the Administrative
Agent or such Lender different from the branch or office holding such deposit or obligated on such
Indebtedness. Each Lender may set-off cash, the proceeds of the liquidation of any Collateral and
all other sums or obligations owed by the Administrative Agent or such Lender or any of their
Affiliates to any Borrower against all of Borrowers’ obligations to the Administrative Agent, such
Lender or any of their Affiliates, whether under this Agreement, any other Loan Document or under
any other agreement between the parties or between any Borrower and the Administrative Agent or any
Lender, or otherwise, without prejudice to the Administrative Agent’s, any Lender’s or any of their
Affiliate’s right to recover any deficiency. Each Lender and the Administrative Agent agrees
promptly to notify such Borrower after any such set-off and application made by such Lender or the
Administrative Agent; provided, that the failure to give such notice shall not affect the
validity of such set-off and application. All amounts set off pursuant to this Section 10.16 shall
be applied pursuant to Section 2.04(d) or Section 9.01(d), as applicable.

          Section 10.17 Entire Agreement; Continuation of Credit Agreement. This Agreement
embodies the entire agreement and understanding of the parties hereto and
supersedes any and all prior agreements, arrangements and understandings relating to the
matters provided for herein. No alteration, waiver, amendments, change, or supplement hereto shall
be binding or effective unless the same is set forth in writing by a duly authorized representative
of each party hereto.

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          Section 10.18 Full-Recourse. The Obligations of the Borrowers hereunder shall be full
recourse to each Borrower and all property and assets of each Borrower, whether now owned or
hereafter acquired, including, without limitation, the property and assets of any Borrower which
any Borrower pledges on the date hereof, or may hereinafter from time to time pledge, as Collateral
pursuant to the terms of this Agreement.

          Section 10.19 Confidentiality. The Administrative Agent and each Lender agree to hold
any confidential information that it may receive from any Borrower in connection with this
Agreement in confidence, except for disclosure (i) to its Affiliates and to the Administrative
Agent and any other Lender and their respective Affiliates, (ii) to legal counsel, accountants, and
other professional advisors to such Lender, (iii) to regulatory officials, (iv) to any Person as
requested pursuant to or as required by law, regulation, or legal process, (v) to any Person in
connection with any legal proceeding to which it is a party, (vi) to its direct or indirect
contractual counterparties in swap agreements or to legal counsel, accountants, and other
professional advisors to such counterparties, and (vii) to rating agencies if requested or required
by such agencies in connection with a rating relating to the Advances. The Borrower agrees that
the terms of this Section 10.19 shall set forth the entire agreement between the Borrowers and each
Lender (including the Administrative Agent) with respect to any confidential information previously
or hereafter received by such Lender in connection with this Agreement, and this Section 10.19
shall supersede any and all prior confidentiality agreements entered into by such Lender with
respect to such confidential information. Notwithstanding anything in this Agreement to the
contrary, confidential information shall not include, and each party to any of the Loan Documents
and their respective Affiliates (and the respective partners, directors, officers, employees,
advisors, representatives, and other agents of each of the foregoing and their Affiliates) may
disclose to any and all Persons, without limitation of any kind, (i) any information with respect
to the U.S. federal and state income tax treatment of the transactions contemplated hereby and any
facts that may be relevant to understanding such tax treatment, which facts shall not include for
this purpose the names of the parties or any other Person named herein, or information that would
permit identification of the parties or such other Persons, or any pricing terms or other nonpublic
business or financial information that is unrelated to such tax treatment or facts, and (ii) all
materials of any kind (including opinions or other tax analyses) relating to such tax treatment or
facts that are provided to any of the Persons referred to above, and it is hereby confirmed that
each of the Persons referred to above has been authorized to make such disclosures since the
commencement of discussions regarding the transactions contemplated hereby.

          Section 10.20 Consent to Transactions. Each Lender hereby consents to the
Transactions.

          Section 10.21 Lien on Mortgage Loans and REO Properties. Each Lender hereby agrees
that New Trust has acknowledged that the assets transferred pursuant to the Transfer Agreement for
Mortgage Loans and REO Properties are transferred subject to the Lien of
Huntington under the Existing Loan Documents and the Lien of the Administrative Agent pursuant
to the Loan Documents and that such Liens have at all times been properly perfected Liens. Each
Lender agrees that New Trust shall have no duty or obligation to the Administrative Agent or any
Lender under any Loan Document or otherwise and that the Administrative Agent may permit New Trust
to distribute, without qualification, (i) to the certificate holder of the

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REIT Trust Certificates,
the REIT Trust Certificates Percentage and (ii) to the certificate holders of each Participant
Trust Certificate, the applicable Participant Trust Certificates Percentage, in each instance of
all net collections received by New Trust irrespective of any default or event of default under any
Existing Loan Agreement or any Default or Event of Default under this Agreement. Neither the
Administrative Agent nor any of its Affiliates, nor any of their respective officers, directors,
employees, agents, or attorneys-in-fact, shall be liable to any Lender for any action lawfully
taken or omitted to be taken by it or such Person under or in connection herewith or in connection
with any of the other Loan Documents in respect to any Lien on any asset of New Trust.

          Section 10.22 Release of Pledged Interests in FCMC. In connection with the incentives
provided to the Servicer under the Servicing Agreement, each Lender hereby agrees and directs the
Administrative Agent to release a portion of the Pledged Interests in FCMC to Holding pursuant to
the following schedule of Net Remittances. The Administrative Agent shall be entitled to rely on a
certificate of the Servicer as to the amount of Net Remittances. Provided that the requisite Net
Remittances have been made, the Pledged Interests in FCMC shall be released to Holding based upon
Net Remittances in the amount of not less than the amount set forth in the table below, within the
time specified below, for a partial release of percentage of Equity Interests specified below:

	 	 	 	 	 	 	 	 	 
	 	 	Minimum Amount of Net	 	 	 	Release of Equity
	Level	 	Remittances (Minimum Level Amount)	 	Time Period	 	Interests
	Level 1

	 	$	225,000,000	 	 	1 year from
Effective Date
	 	10% (70% reduces to
60%)
	Level 2

	 	$	475,000,000	 	 	3 years from
Effective Date
	 	10% —(60% reduces
to 50%)
	Level 3

	 	$	575,000,000	 	 	No time period specified
	 	10% — (50% reduces
to 40%)
	Level 4

	 	$	650,000,000	 	 	No time period specified
	 	10% —(40 reduces
to 30%)
	Level 5

	 	$	750,000,000	 	 	No time period specified
	 	10% —(30 reduces
to 20%)

; provided, however, (i) if Net Remittances do not reach the minimum Level 1 amount prior to the
first anniversary of the Effective Date, but reach the minimum Level 2 amount prior to the third
anniversary of the Effective Date, the release of the Pledged Equity Interests in FCMC to Holding
shown in Level 1 shall reduce 5% in respect of Level 1 (70% reduces to 55%), and any
subsequent releases of Pledged Equity Interests in FCMC shall reduce 10% from the Pledged Equity
Interests in FCMC in effect prior to the achievement of such applicable minimum Level amount; and
provided further that (ii) if Net Remittances do not reach the minimum Level 1 amount prior to the
first anniversary of the Effective Date and do not reach the minimum Level 2 amount prior to the
third anniversary of the Effective Date, then the release of the Pledged

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Equity Interests in FCMC
shall be released as follows: (x) upon attaining the minimum Level 3 amount, the Pledged Equity
Interests in FCMC shall reduce 25% (from 70% to 45%); (y) upon attaining the minimum Level 4
amount, the Pledged Equity Interests in FCMC shall reduce 10% (from 45% to 35%), and (z) upon
attaining the minimum Level 5 amount, the Pledged Equity Interests in FCMC shall reduce 10% (from
35% to 25%).

          Article XI. The Administrative Agent.

          Section 11.01 Appointment; Nature of Relationship. Huntington is hereby appointed by
each of the Lenders as its contractual representative (referred to as the “Administrative
Agent”) under this Agreement and under each other Loan Document, and each of the Lenders
irrevocably authorizes the Administrative Agent in this Agreement to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent by the terms of
this Agreement, together with such actions and powers as are reasonably incidental thereto. The
Administrative Agent agrees to act as such contractual representative upon the express conditions
contained in this Section 11.01. Notwithstanding the use of the defined term “Administrative
Agent,” it is expressly understood and agreed that the Administrative Agent shall not have any
fiduciary responsibilities to any Lender by reason of this Agreement or any other Loan Document and
that the Administrative Agent is merely acting as the contractual representative of the Lenders
with only those duties as are expressly set forth in this Agreement and the other Loan Documents.
The Administrative Agent acknowledges, solely in its capacity as the Administrative Agent, that (i)
it is a “representative” of the Lenders within the meaning of the term “secured party” as defined
in the Uniform Commercial Code, and (ii) it is acting as an independent contractor, the rights and
duties of which are limited to those expressly set forth in this Agreement and the other Loan
Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan
Documents that provides rights or powers to the Administrative Agent, Lenders agree that the
Administrative Agent shall have the right to exercise the following powers as long as this
Agreement remains in effect: (a) maintain, in accordance with its customary business practices,
ledgers and records reflecting the status of the Obligations, the Collateral, the Collections of
the Borrowers and their Subsidiaries, and related matters, (b) execute or file any and all
financing or similar statements or notices, amendments, renewals, supplements, documents,
instruments, proofs of claim, notices and other written agreements with respect to the Loan
Documents, (c) exclusively receive, apply, and distribute the Collections of the Borrowers and
their Subsidiaries as provided in the Loan Documents, (d) open and maintain such bank accounts as
the Administrative Agent deems necessary and appropriate in accordance with the Loan Documents for
the foregoing purposes with respect to the Collateral and the Collections of the Borrowers and
their Subsidiaries, (e) perform, exercise, and enforce any and all other rights and remedies of the
Lenders with respect to the Borrowers, the Obligations, the Collateral, the Collections of the
Borrowers and their Subsidiaries, or otherwise related to any of same as provided in the Loan
Documents, and (f) incur and pay such expenses as the Administrative Agent may deem necessary or
appropriate for the performance and
fulfillment of its functions and powers pursuant to the Loan Documents; provided, however,
that the Administrative Agent agrees, in its capacities as administrator under the Administration
Agreement and as Administrative Agent hereunder, without the consent of the Required Lenders, it
will not (i) take any action to amend or consent or agree to amend the New Trust Trust Agreement or
(ii) direct New Trust to take any action, in each instance, that adversely affects, in

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any material
respect, any right of any Lender under any Loan Document, other than as expressly permitted under
the terms of this Agreement.

          Section 11.02 Exculpatory Provisions. Neither the Administrative Agent nor any of its
Affiliates, nor any of their respective officers, directors, employees, agents, or
attorneys-in-fact, shall be liable to any Lender for any action lawfully taken or omitted to be
taken by it or such Person under or in connection herewith or in connection with any of the other
Loan Documents (except to the extent any of the foregoing is found in a final non-appealable
judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful
misconduct of the such Person) or responsible in any manner to any of the Lenders for any recitals,
statements, representations, or warranties made by any of the Borrowers contained in this Agreement
or in any of the other Loan Documents or in any certificate, report, document, financial statement,
or other written or oral statement referred to or provided for in, or received by the
Administrative Agent under or in connection herewith, or in connection with the other Loan
Documents, or enforceability or sufficiency therefor of any of the other Loan Documents, or for any
failure of a Borrower to perform its obligations under this Agreement or thereunder. The
Administrative Agent shall not be responsible to any Lender for the effectiveness, genuineness,
validity, enforceability, collectibility, or sufficiency of this Agreement, or any of the other
Loan Documents or for any representations, warranties, recitals, or statements made herein or
therein or made by any Borrower in any written or oral statement or in any financial or other
statements, instruments, reports, certificates, or any other documents in connection herewith or
therewith furnished or made by the Administrative Agent to the Lenders or by or on behalf of the
Borrowers to the Administrative Agent or any Lender or be required to ascertain or inquire as to
the performance or observance of any of the terms, conditions, provisions, covenants, or agreements
contained herein or therein or as to the use of the proceeds of the Advances or of the existence or
possible existence of any Default or Event of Default or to inspect the properties, books or
records of the Borrowers. The Administrative Agent is not a trustee for the Lenders and owes no
fiduciary duty to the Lenders. Each Lender recognizes and agrees that the Administrative Agent
shall not be required to determine independently whether the conditions described in Sections 5.01
and 5.02 have been satisfied and, when the Administrative Agent disburses funds to the Borrowers,
it may rely fully upon statements contained in the relevant requests by the Borrowers.

          Section 11.03 Reliance on Communications. The Administrative Agent shall be entitled
to rely upon, and shall not incur any liability of relying upon, any Note, notice, consent,
request, certificate, affidavit, letter, telegram, facsimile, telex, electronic mail message,
statement, instrument, paper, document, or other writing (including any electronic message,
Internet or intranet website posting, or other distribution) believed by it in good faith to be
genuine and correct and to have been signed or sent by the proper person or persons, and, in
respect to legal matters, upon the opinion of counsel selected by the Administrative Agent, which
counsel may be employees of the Administrative Agent. For purposes of determining compliance with
the conditions specified in Sections 5.01 and 5.02, each Lender that has signed
this Agreement or has become a party hereto pursuant to the terms of Section 12 hereof shall
be deemed to have consented to, approved or accepted, or to be satisfied with, each document or
other matter required thereunder to be consented to, approved by, or acceptable or satisfactory to,
a Lender, unless the Administrative Agent shall have received notice from such Lender prior to the
applicable date specifying its objection thereto.

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          Section 11.04 Delegation of Duties. The Administrative Agent may execute any of its
duties as the Administrative Agent hereunder and under any other Loan Document by or through
employees, agents, and attorneys-in-fact and shall not be answerable to the Lenders, except as to
money or securities received by it or its authorized agents, and to the extent any conduct is found
in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the
gross negligence or willful misconduct of the Administrative Agent or any such agents or
attorneys-in-fact. The Administrative Agent shall be entitled to the advice of legal counsel,
accountants, and other professionals selected by the Administrative Agent concerning the
contractual arrangement between the Administrative Agent and the Lenders and all matters pertaining
to the Administrative Agent’s duties under this Agreement and under any other Loan Document. The
Borrowers and the Lenders agree that the Administrative Agent may delegate any of its duties under
this Agreement to any of its Affiliates, and that any such Affiliate that performs duties in
connection with this Agreement shall be entitled to the same benefits of the indemnification,
waiver, and other protective provisions to which the Administrative Agent is entitled under Section
10.03.

          Section 11.05 The Administrative Agent’s Reimbursement and Indemnification. The
Administrative Agent may incur and pay expenses to the extent the Administrative Agent reasonably
deems necessary or appropriate for the performance and fulfillment of its functions, powers, and
obligations pursuant to the Loan Documents, including court costs, attorneys fees and expenses,
fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of
collection by outside collection agencies, auctioneer fees and expenses, and costs of security
guards or insurance premiums paid to maintain the Collateral, whether or not the Borrowers are
obligated to reimburse the Administrative Agent or Lenders for such expenses pursuant to the Credit
Agreement or otherwise. The Administrative Agent is authorized and directed to deduct and retain
sufficient amounts from the Collections of each Borrower and any Subsidiary of a Borrower received
by the Administrative Agent to reimburse the Administrative Agent for such out-of-pocket costs and
expenses prior to the distribution of any amounts to any Lender or any other Person. In the event
the Administrative Agent is not reimbursed for such costs and expenses from the Collections of the
Borrowers their Subsidiaries received by the Administrative Agent, the Lenders agree to reimburse
and indemnify the Administrative Agent for their Pro Rata Share of (i) any amounts not reimbursed
by the Borrower for which the Administrative Agent is entitled to reimbursement by the Borrower
under the Loan Documents, (ii) any other expenses incurred by the Administrative Agent on behalf of
the Lenders, in connection with the preparation, execution, delivery, administration and
enforcement of the Loan Documents (including, without limitation, for any expenses incurred by the
Administrative Agent in connection with any dispute between the Administrative Agent and any Lender
or between two or more of the Lenders), and (iii) any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses, or disbursements of any kind and nature
whatsoever that may be imposed on, incurred by, or asserted against the Administrative Agent in any
way relating to or arising out of the Loan Documents or any other document delivered in
connection therewith or the transactions contemplated thereby (including, without limitation,
for any such amounts incurred by or asserted against the Administrative Agent in connection with
any dispute between the Administrative Agent and any Lender or between two or more of the Lenders),
or the enforcement of any of the terms of the Loan Documents or of any such other documents;
provided, that (i) no Lender shall be liable for any of the foregoing to the extent any of
the foregoing is found in a final non-appealable judgment by a court of competent jurisdiction

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to
have resulted from the gross negligence or willful misconduct of the Administrative Agent and (ii)
any indemnification required pursuant to Section 2.06 shall, notwithstanding the provisions of this
Section 11.05, be paid by the relevant Lender in accordance with the provisions thereof. The
obligations of the Lenders under this Section 11.05 shall survive payment of the Advances and
termination of this Agreement.

          Section 11.06 Notice of Default. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default, unless the Administrative
Agent has received written notice from a Lender or the Borrower referring to this Agreement
describing such Default or Event of Default and stating that such notice is a “notice of default.”
In the event that the Administrative Agent receives such a notice, the Administrative Agent shall
give prompt notice thereof to the Lenders. The Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement or under any of the other
Loan Documents in accordance with a request of the Required Lenders (or to the extent specifically
required, all the Lenders) and such request and any action or failure to act pursuant thereto shall
be binging upon all the Lenders (including their successors and assigns and any Participants).

          Section 11.07 Rights as a Lender. If the Administrative Agent is also a Lender, the
Administrative Agent shall have the same rights and powers under this Agreement and under any other
Loan Document with respect to its Commitment and its Advances as any Lender and may exercise the
same as though it were not the Administrative Agent, and the term “Lender” or “Lenders” shall, at
any time when the Administrative Agent is a Lender, unless the context otherwise indicates, include
the Administrative Agent in its individual capacity. The Administrative Agent and its Affiliates
may accept deposits from, lend money to, and generally engage in any kind of business, in addition
to those contemplated by this Agreement or any other Loan Document, with the Borrower or any of its
Subsidiaries in which the Borrower or such Subsidiary is not restricted hereby from engaging with
any other Person and without any duty to account therefor to the Lenders.

          Section 11.08 Non-Reliance on Administrative Agent and Other Lenders. Each Lender
acknowledges that it has, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement and the
other Loan Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement and the other Loan Documents. Except for any
notice, report, document or other information expressly required to be furnished to the Lenders by
the Administrative Agent under this Agreement, the Administrative Agent shall not have any duty or
responsibility (either initially or on a continuing
basis) to provide any Lender with any notice, report, document, credit information or other
information concerning the affairs, financial condition or business of the Borrower or any of its
Affiliates that may come into the possession of the Administrative Agent (regardless of whether in
its capacity as Administrative Agent) or any of its Affiliates.

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          Section 11.09 Resignation of Administrative Agent. The Administrative Agent may
resign at any time upon 30 days prior written notice to the Lenders and the Borrowers. Upon such
receipt of any such notice of resignation, the Required Lenders shall have the right, in
consultation with the Borrower Representative, to appoint a successor, which shall be a bank with
an office in the United States of America, or an Affiliate of any such bank with an office in the
United States of America. If no such successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the
Lenders appoint a successor Administrative Agent meeting the qualifications set forth above,
provided that if the Administrative Agent shall notify the Borrower and the Lenders that no
qualifying Person has accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other Loan Documents (except
that in the case of any collateral security held by the Administrative Agent on behalf of the
Lenders under any of the Loan Documents, the retiring Administrative Agent shall continue to hold
such collateral security until such time as a successor Administrative Agent is appointed) and (2)
all payments, communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above in this paragraph).
Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor
shall succeed to and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be
discharged from all of its duties and obligations hereunder or under the other Loan Documents (if
not already discharged therefrom as provided above in this paragraph). The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the retiring Administrative
Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Section
11.09 and Section 10.03 shall continue in effect for the benefit of such retiring Administrative
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while the retiring Administrative Agent was acting as the
Administrative Agent.

          Section 11.10 Administrative Agent Fees. The Borrowers agree to pay to the
Administrative Agent, for its account, the Administrative Agent Fees on the Effective Date and on
each anniversary thereof, pursuant to this Agreement or as otherwise agreed from time to time.

          Section 11.11 Execution of Collateral Documents. The Lenders hereby empower and
authorize the Administrative Agent to execute and deliver to the Borrowers on their behalf the Loan
Documents and all related financing statements and any financing statements, agreements, documents,
or instruments as shall be necessary or appropriate to effect the purposes of this Agreement.

          Section 11.12 Collateral. (a) The Lenders hereby irrevocably authorize the Administrative
Agent, at its option and in its sole discretion, to release any Lien on any Collateral (i) upon the
termination of the Commitments and payment and satisfaction in full by the Borrowers of all
Obligations, (ii) constituting property in which no Borrower owned any

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interest at the time Lien
was granted nor at any time thereafter, (iii) constituting property leased to any Borrower or a
Subsidiary of a Borrower under a lease that has expired or is terminated in a transaction permitted
under this Agreement, (iv) constituting property that a Borrower has authorization to Transfer
under the terms of this Agreement or any other Loan Document or (v) constituting property for which
such release shall otherwise have been approved by the Required Lenders. Upon request by the
Administrative Agent or any Borrower at any time, the Lenders will confirm in writing the
Administrative Agent’s authority to release any such Liens on particular types or items of
Collateral pursuant to this Section 11.12; provided, however, that (1) the Administrative
Agent shall not be required to execute any document necessary to evidence such release on terms
that, in the Administrative Agent’s opinion, would expose the Administrative Agent to liability or
create any obligation or entail any consequence other than the release of such Lien without
recourse, representation, or warranty, and (2) such release shall not in any manner discharge,
affect, or impair any Obligation of any Borrower or any Lien (other than a Lien expressly being
released) upon any interest retained by any Borrower, including, the proceeds of any sale, all of
which shall continue to constitute part of the Collateral. Anything contained herein to the
contrary notwithstanding, each Lender agrees that the Administrative Agent, at any time upon the
written request of Huntington, may release the REIT Shares as collateral security for the Advances
in reduction or satisfaction of any such Advances held by Huntington or any Affiliate thereof.

     (b) The Administrative Agent shall have no obligation whatsoever to any of the Lenders to
assure that the Collateral exists or is owned by Borrowers or is cared for, protected, or insured
or has been encumbered, or that Liens of the Administrative Agent have been properly or
sufficiently or lawfully created, perfected, protected, or enforced or are entitled to any
particular priority, or to exercise at all or in any particular manner or under any duty of care,
disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers
granted or available to the Administrative Agent pursuant to any of the Loan Documents, it being
understood and agreed that in respect of the Collateral, or any act, omission, or event related
thereto, subject to the terms and conditions contained herein, the Administrative Agent may act in
any manner it may deem appropriate, in its sole discretion given the Administrative Agent’s own
interest in the Collateral in its capacity as one of the Lenders, and that the Administrative Agent
shall have no other duty or liability whatsoever to any Lender as to any of the foregoing, except
as otherwise provided herein.

               Section 11.13 Agency for Perfection. The Administrative Agent hereby appoints each other
Lender as its agent (and each Lender hereby accepts such appointment) for the purpose of perfecting
the Administrative Agent’s Liens in assets which, in accordance with Article 9 of the UCC can be
perfected only by possession. Should any Lender obtain possession of any such Collateral, such
Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent’s
request therefor shall deliver such Collateral to the Administrative Agent or in accordance with
the Administrative Agent’s instructions.

               Article XII. Participations and Assignments.

               Section 12.01 Permitted Participants; Effect.

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     (a) Any Lender may at any time sell to one or more banks or other entities
(“Participants”) participating interests in any Advance owing to such Lender, any
Note held by such Lender, any Commitment of such Lender or any other interest of such
Lender under the Loan Documents, subject to the consent of the Administrative Agent unless
such sale is to an Eligible Assignee. Such participation shall be in writing and a copy
thereof shall be provided promptly to the Administrative Agent. In the event of any such
sale by a Lender of participating interests to a Participant, such Lender’s obligations
under the Loan Documents shall remain unchanged, such Lender shall remain solely
responsible to the other parties to this Agreement for the performance of such obligations,
such Lender shall remain the owner of its Advances and the holder of any Note issued to it
in evidence thereof for all purposes under the Loan Documents, all amounts payable by the
Borrower under this Agreement shall be determined as if such Lender had not sold such
participating interests, and the Borrower and the Administrative Agent shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.

     (b) Voting Rights. Each Lender shall retain the sole right to approve,
without the consent of any Participant, any amendment, modification, or waiver of any
provision of the Loan Documents other than any amendment, modification, or waiver with
respect to any Advance or Commitment in which such Participant has an interest that would
require consent of all of the Lenders pursuant to the terms of Section 10.04.

     (c) Benefit of Certain Provisions. The Borrower agrees that each Participant
shall be deemed to have the right of set-off provided in Section 10.16 in respect of its
participating interest in amounts owing under the Loan Documents to the same extent as if
the amount of its participating interest were owing directly to it as a Lender under the
Loan Documents, provided that each Lender shall retain the right of set-off provided in
Section 10.16 with respect to the amount of participating interests sold to each
Participant. The Lenders agree to share with each Participant, and each Participant, by
exercising the right of set-off provided in Section 10.16, agrees to share with each
Lender, any amount received pursuant to the exercise of its right of setoff, such amounts
to be shared in accordance with Section 2.04 (d) or Section 9.01, as applicable, as if each
Participant were a Lender. The Borrower further agrees that each Participant shall be
entitled to the benefits of Sections 2.03, 2.07, 3.02, 3.03 and 9.01 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to Section 12.02,
provided that (i) a Participant shall not be entitled to receive any greater payment other
than the Lender who sold the participating interest to such Participant would have received
had it retained such interest for its own account, unless the sale of such interest to such
Participant is made with the prior written consent of the Borrower, and (ii) any
Participant not incorporated under the laws of the United States of America or any State
thereof agrees to comply with the provisions of Section 3.03 to the same extent as if it
were a Lender.

     (d) Limitations upon Participant Rights. A participant shall not be entitled
to receive any greater payment under Section 3.01 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such participant,
unless

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the sale of the participation to such Participant is made with the Borrower’s prior
written consent.

          Section 12.02 Assignments.

          (a) Successors and Assigns Generally. The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that the Borrowers may not assign or
otherwise transfer any of its rights or obligations under this Agreement without the prior
written consent of the Administrative Agent and each Lender, and no Lender may assign or
otherwise transfer any of its rights or obligations under this Agreement except (i) to an
assignee in accordance with Section 12.02(b), (ii) by way of participation in accordance
with Section 12.01, or (iii) by way of pledge or assignment of a security interest subject
to the restrictions of Section 12.02(e) (and any other attempted assignment or transfer by
any party hereto shall be null and void). Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, participants to the extent provided in
Section 12.01 and, to the extent expressly contemplated hereby, the Related Parties of each
of the Secured Parties) any legal or equitable right, remedy, or claim under or by reason
of this Agreement.

          (b) Assignments by Lenders. Any Lender may at any time assign to one or more
banks or other entities (“Purchasers”) all or any part of its rights and
obligations under this Agreement and the Loan Documents. Such assignment shall be
substantially in the form of Exhibit H or in such other form as may be agreed to by
the parties thereto. Each such assignment shall be subject to the following:

          1) Minimum Amounts.

          i) in the case of any assignment of the entire remaining amount
of the assigning Lender’s Commitment and the Advances at the time
owing to it or in the case of an assignment to a Lender or an
Affiliate of a Lender no minimum amount need be assigned; and

          ii) in any case not described in clause (b)(i)(A) of this Section
12.02, the aggregate amount of the Commitment (which for this purpose
includes Advances outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of
the Advances of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Acceptance with respect
to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Acceptance, as of the
Trade Date) shall not be less than $2,500,000, in the case of any
assignment in respect of a term facility, unless each of the
Administrative Agent and, so long as no Default or Event of Default
has occurred and is continuing, the

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Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed).

     2) Proportionate Amounts. Each partial
assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement with
respect to the Advance or the Commitment assigned.

     3) Required Consents. No consent shall be
required for any assignment except to the extent required by paragraph
(b)(i)(B) of this Section 12.02 and, in addition:

     i) the consent of the Borrower (such consent not to be
unreasonably withheld or delayed) shall be required unless (x) an
Event of Default has occurred and is continuing at the time of such
assignment or (y) such assignment is to a Lender or an Affiliate of a
Lender or is in connection with merger or consolidation of a Lender or
a Transfer by Lender of one or more of its loan portfolios; and

     ii) the consent of the Administrative Agent (such consent not to
be unreasonably withheld or delayed) shall be required for assignments
in respect of (i) an unfunded or revolving credit facility if such
assignment is to a person that is not a Lender with a Commitment in
respect of such facility or an Affiliate of such Lender with respect
to such Lender or (ii) a funded term facility to a Person who is not a
Lender or an Affiliate of a Lender.

     4) Assignment and Acceptance. The parties
to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Acceptance, together with a processing and recordation
fee of $3,500, and the assignee, if it is not a Lender, shall deliver to
the Administrative Agent an administrative questionnaire in form
prescribed by the Administrative Agent.

     5) No Assignment to Borrower. No such
assignment shall be made to the Borrower or any of the Borrower’s
Affiliates or Subsidiaries.

     6) No Assignment to Natural Persons. No
such assignment shall be made to a natural person.

     (c) Effect; Effective Date. Upon (i) delivery to the Administrative Agent of
an assignment, together with any consents required by Section 12.02(b), and (ii) payment of
a $3,500 fee to the Administrative Agent for processing such assignment (unless such fee is
waived by the Administrative Agent), such assignment shall become effective on the
assignment effective date specified in such assignment. The assignment shall contain a
representation by the Purchaser to the effect that none of the consideration used to make
the purchase of the Commitment and Advances under the applicable assignment agreement
constitutes “plan assets” as defined under ERISA and that the rights and

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interests of the Purchaser in and under the Loan Documents will not be
“plan assets” under ERISA. On and after the assignment effective date of such assignment,
such Purchaser shall for all purposes be a Lender party to this Agreement and any other
Loan Document executed by or on behalf of the Lenders and shall have all the rights and
obligations of a Lender under the Loan Documents, to the same extent as if it were an
original party thereto, and the transferor Lender shall be released with respect to the
Commitment and Advances assigned to such Purchaser without any further consent or action by
the Borrower, the Lenders or the Administrative Agent. In the case of an assignment
covering all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a Lender under this Agreement but shall continue to be entitled to
the benefits of, and subject to, those provisions of this Agreement and the other Loan
Documents that survive payment of the Advances and termination of the applicable agreement.
Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this Section 12.02 shall be treated for purposes of this Agreement as
a sale by such Lender of a participation in such rights and obligations in accordance with
Section 12.01. Upon the consummation of any assignment to a Purchaser pursuant to this
Section 12.02, the transferor Lender, the Administrative Agent, and the Borrower shall, if
the transferor Lender or the Purchaser desires that its Advances be evidenced by Notes,
make appropriate arrangements so that new Notes or, as appropriate, replacement Notes are
issued to such transferor Lender and new Notes or, as appropriate, replacement Notes, are
issued to such Purchaser, in each case in principal amounts reflecting their respective
Commitments, as adjusted pursuant to such assignment.

     (d) Register. The Administrative Agent shall maintain at one of its offices
in Columbus, Ohio a copy of each Assignment and Acceptance delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the Commitments of, and
principal amounts of the Advances owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall be conclusive,
and the Borrower, the Administrative Agent, and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrowers at any reasonable time and from time to time upon
reasonable prior notice.

     (e) Certain Pledges. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure obligations of
that Lender, including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided, that no such pledge or assignment shall release that Lender from
any of its obligations under this Agreement or substitute any such pledge or assignee for
such Lender as a party to this Agreement; provided, however that such Federal Reserve Bank
may enforce such pledge or security interest in any manner permitted by applicable law.

          Section 12.03 Dissemination of Information. Each Borrower authorizes each Lender to
disclose to any Participant or Purchaser or any other Person acquiring an interest in the Loan
Documents by operation of law (each a “Transferee”) and any prospective Transferee any

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and all documents and information in such Lender’s possession relating to the Borrowers and
their Subsidiaries; provided, that each Transferee and prospective Transferee agrees to be
bound by Section 10.19 of this Agreement.

          Section 12.04 Tax Treatment. If any interest in any Loan Document is transferred to
any Transferee that is not incorporated under the laws of the United States or any State thereof,
the transferor Lender shall cause such Transferee, concurrently with the effectiveness of such
transfer, to comply with the provisions of Section 3.03 of this Agreement.

[SIGNATURE PAGES FOLLOW]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered as of the day and year first above written

	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	FRANKLIN CREDIT ASSET CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alexander Gordon Jardin	 	 
	 

	 	Name:
	 	 

Alexander Gordon Jardin
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	101 Hudson St., 25th Floor	 	 
	 	 	Jersey City, New Jersey 07302	 	 
	 	 	Fax: (201) 604-4400	 	 
	 	 	Attention: General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Kramer Levin Naftalis & Frankel LLP	 	 
	 	 	1177 Avenue of the Americas	 	 
	 	 	New York, New York 10036	 	 
	 	 	Fax: (212) 715-8346	 	 
	 	 	Attention: J. Michael Mayerfeld, Esq.	 	 
	 
	 	 	 	 	 	 
	 	 	TRIBECA LENDING CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alexander Gordon Jardin	 	 
	 

	 	Name:
	 	 

Alexander Gordon Jardin
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 

	 	      Same as above	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 

	 	      Same as above	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	FRANKLIN ASSET, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alexander Gordon Jardin	 	 
	 

	 	Name:
	 	 

Alexander Gordon Jardin
	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Same as above	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Same as above	 	 
	 
	 	 	 	 	 	 
	 	 	EACH BORROWER LISTED ON SCHEDULE 1
ATTACHED HERETO:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alexander Gordon Jardin	 	 
	 

	 	Name:
	 	 

Alexander Gordon Jardin
	 	 
	 
	 	 	 	 	 	 
	 	 	Title: as Chief Executive Officer of, and on
behalf of, each Borrower listed on Schedule
1 attached hereto.	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Same as above	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Same as above	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alan D. Seitz	 	 
	 

	 	Name:
	 	 

Alan D. Seitz
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	2361 Morse Road	 	 
	 	 	NC3W67	 	 
	 	 	Columbus, Ohio 43229	 	 
	 	 	Attn: Special Assets	 	 
	 	 	Telephone No.: (614) 480-5355	 	 
	 	 	Telecopier No.: (614) 480-3795	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Porter Wright Morris & Arthur LLP	 	 
	 	 	41 South High Street	 	 
	 	 	Columbus, Ohio 43215	 	 
	 	 	Attn: Timothy E. Grady, Esq.	 	 
	 	 	Telecopier No.: (614) 227-2105	 	 
	 	 	Telephone No.: (614) 227-2100	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LENDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK, as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alan D. Seitz	 	 
	 

	 	Name:
	 	 

Alan D. Seitz
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Same Address as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Same Address as Administrative Agent	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	HUNTINGTON FINANCE LLC, as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James K. Ciroli	 	 
	 

	 	Name:
	 	 

James K. Ciroli
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	c/o Huntington Bancshares Incorporated	 	 
	 	 	41 South High Street	 	 
	 	 	Columbus, Ohio 43215	 	 
	 	 	Attn: James K. Ciroli, Vice President	 	 
	 	 	Telephone No.: (614) 480-5931	 	 
	 	 	Telecopier No.: (614) 480-4284	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Same Address as Administrative Agent	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	M & I MARSHALL & ILSLEY BANK, as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas R. Johnson	 	 
	 

	 	Name:
	 	 

Thomas R. Johnson
	 	 
	 

	 	Title:
	 	 

Senior Vice President
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark P. Schaus	 	 
	 

	 	Name:
	 	 

Mark P. Schaus
	 	 
	 

	 	Title:
	 	 

Vice President
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	M & I Marshall & Ilsley Bank	 	 
	 	 	770 N. Water Street	 	 
	 	 	Milwaukee, WI 53202	 	 
	 	 	Attn: Thomas R. Johnson and Mark P. Schaus	 	 
	 	 	Telephone No.: (414) 765-7610	 	 
	 	 	Telecopier No.: (414) 298-2744	 	 
	 	 	e-mail: Thomas.Johnson@micorp.com and 

            Mark.Schaus@micorp.com	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Michael Best & Friedrich LLP	 	 
	 	 	100 East Wisconsin Avenue, Suite 3300	 	 
	 	 	Milwaukee, WI 53202	 	 
	 	 	Attn: K. Thor Lundgren, Esq.	 	 
	 	 	Phone: (414) 225-4952	 	 
	 	 	Fax: (414) 277-0652	 	 
	 	 	E-mail: KTLundgren@michaelbest.com	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BOS (USA) INC., as Lender	 	 
	 
	 	 	 	 	 	 
	 	 	By: Bank of Scotland plc, as Administrative
Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	       By:	 	/s/ Julia R. Franklin
 	 	 
	 

	 	 	 	 

	 	 
	 

	 	       Name: Julia R. Franklin

	 

	 	       Title: Assistant Vice President
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	1095 Avenue of Americas, 35th Floor	 	 
	 	 	New York, NY 10036	 	 
	 	 	Attn: Christine Renard and John Yusi	 	 
	 	 	Telephone No.: (212) 803-3445	 	 
	 	 	Telecopier No.: (212) 883-6610	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Sullivan & Worcester LLP	 	 
	 	 	ZAG/S&W LLP	 	 
	 	 	One Post Office Square	 	 
	 	 	Boston, MA 02109	 	 
	 	 	Attn: Gayle P. Ehrlich	 	 
	 	 	Telephone No.: (617) 338-2453	 	 
	 	 	Telecopier No.: (617) 338-2880	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

Schedule 1

BORROWERS

Schedule 1-1

 

 

Schedule 2

PARTICIPATION AGREEMENTS

Participation Agreements by and between The Huntington National Bank and Huntington Finance,
LLC:

	 	1.	 	Third Amended and Restated Participation Agreement – Tranche D Credits, dated as of
March 31, 2008.
	 
	 	2.	 	Participation Agreement, dated as of September 30, 2008.
	 
	 	3.	 	Sixth Amended and Restated Participation Agreement – Tranche A and B Advances Made To
Tribeca Lending Corp., dated as of December 8, 2008.
	 
	 	4.	 	Sixth Amended and Restated Participation Agreement – Tranches A, B-1, B-2, B-3, B-4,
and C Advances Made to Franklin Credit Management Corporation, dated as of December 8,
2008.
	 
	 	5.	 	Participation Certificate Tranches B-1 and B-2 Advances Made to Franklin Credit
Management Corporation (Certificate No. D-01), dated September 30, 2008.
	 
	 	6.	 	Participation Certificate Tranches B-1 and B-2 Advances Made to Franklin Credit
Management Corporation (Certificate No. D-03), dated September 30, 2008.
	 
	 	7.	 	Participation Certificate Tranches B-1 and B-2 Advances Made to Franklin Credit
Management Corporation (Certificate No. D-05), dated September 30, 2008.
	 
	 	8.	 	Participation Certificate Tranches B-1 and B-2 Advances Made to Tribeca Lending Corp.
(Certificate No. D-02), dated September 30, 2008.
	 
	 	9.	 	Participation Certificate Tranches B-1 and B-2 Advances Made to Tribeca Lending Corp.
(Certificate No. D-04), dated September 30, 2008.
	 
	 	10.	 	Participation Certificate Tranches B-1 and B-2 Advances Made to Tribeca Lending Corp.
(Certificate No. D-06), dated September 30, 2008.

Participation Agreements by and between The Huntington National Bank and M&I Marshall & Ilsley
Bank:

	 	1.	 	Amended and Restated Participation Agreement, dated as of December 28, 2007.
	 
	 	2.	 	Second Amended and Restated Participation Agreement, dated as of March 31, 2008.

Schedule 2-1

 

 

Participation Agreements by and between The Huntington National Bank and BOS (USA), Inc.:

	 	1.	 	Participation Agreement (Tribeca), dated as of March 31, 2008.

Schedule 2-2

 

 

Schedule 3

COMMITMENTS OF LENDERS

Schedule 3

 

 

Schedule 6.15

SUBSIDIARIES

Schedule 6.15

 

 

Schedule 7

TRANSACTION DOCUMENTS

	 	1.	 	Transfer and Assignment 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 and Franklin Mortgage Asset Trust 2009-A.
	 
	 	2.	 	Servicing Agreement, dated as of March 31, 2009, between Franklin Mortgage Asset Trust 2009-A
and Franklin Credit Management Corporation.
	 
	 	3.	 	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.
	 
	 	4.	 	Administration Agreement, dated as of March 31, 2009, between The Huntington National Bank
and Franklin Mortgage Asset Trust 2009-A.

Schedule 7

 

 

Schedule 7.22

POST-CLOSING MATTERS

Schedule 7.22

 

 

EXHIBIT A

FORM OF PROMISSORY NOTE TRANCHE A

 

 

EXHIBIT B

FORM OF TRANCHE B NOTE

 

 

EXHIBIT C

FORM OF TRANCHE C NOTE

 

 

EXHIBIT D

FORM OF SECURITY AGREEMENT

 

 

EXHIBIT E

FORM OF INVESTMENT PROPERTY SECURITY AGREEMENT

 

 

EXHIBIT F

FORM OF PLEDGE AGREEMENT

 

 

EXHIBIT G

FORM OF PLEDGE AGREEMENT — CLAIMS

 

 

EXHIBIT H 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

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