Document:

EX-10.8

Exhibit 10.8

AMENDED AND RESTATED SECURITY AGREEMENT

     THIS AMENDED AND RESTATED SECURITY AGREEMENT, dated as of March 31, 2009 (this
"Agreement”), is entered into by 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 (“Franklin LLC”) and each of the entities listed on the
signature pages hereof as loan parties or that becomes a party hereto pursuant to Section 7.10, in
favor of The Huntington National Bank, acting hereunder as contractual representative pursuant to
the Credit Agreement (as defined below) for Lenders (as defined below) (“Huntington”, acting as
such contractual representative and any successor or successors to Huntington acting in such
capacity, being referred to as “Administrative Agent”).

W i t n e s s e t h:

     WHEREAS, Franklin Asset, Tribeca, Franklin LLC and certain other Loan Parties,
Administrative Agent, and the financial institutions party thereto as Lenders (Huntington, in its
individual capacity, and such other financial institutions being hereafter referred to collectively
as “Lenders” and individually as “Lender”), have entered into a certain Amended and Restated Credit
Agreement, dated March 31, 2009 (as amended, supplemented, modified or restated from time to time,
the “Credit Agreement”), pursuant to which Huntington and the other Lenders have agreed to make
and/or maintain advances and other financial accommodations to and for the benefit of the Loan
Parties, upon the terms and subject to the conditions set forth in the Credit Agreement
(Administrative Agent and Lenders, together with affiliates of Lenders, being referred to
collectively as the “Secured Creditors” and individually as a “Secured Creditor”);

     WHEREAS, this Agreement shall amend and restate the Existing Security Agreements (as
defined below) in their entirety as of the date hereof on the terms and subject to the conditions
set forth herein, (ii) this Agreement shall not constitute a novation of the obligations and
liabilities existing under the Existing Security Agreements or evidence payment of all or any ofsuch obligations and liabilities secured thereby, and (iii) from and after the date hereof, the
Existing Security Agreements shall be of no further force or effect, except to secure the Secured
Obligations (as defined below) incurred, the representations and warranties made, and the actions
and omissions performed or required to be performed, thereunder prior to the date hereof;

     WHEREAS, the Credit Agreement, each master credit and security agreement, flow
warehousing credit and security agreement, term loan and security agreement, warehousing credit and
security agreement, loan agreement, credit agreement, forbearance agreement, promissory note,
security agreement, certificate, letter of credit reimbursement agreement, pledge agreement,
control agreement, joinder agreement, counterpart signature page, assignment, guaranty agreement,
banking services agreement, hedging agreement, cash management agreement, consent agreement,
collateral agreement, amendment, modification agreement, instrument and financing statements and
other loan documents (as any of the same may be amended, restated, supplemented, modified or
replaced from time to time) executed or delivered from time to time to any Lender by any Loan
Party, are collectively referred to as the “Credit Documents”);

     WHEREAS, pursuant to the respective Credit Documents, Lenders have agreed subject to
certain conditions precedent, to make and/or maintain loans and other financial accommodations to
the Loan Parties from time to time;

     WHEREAS, the Secured Creditors have required as a condition, among others, of
extending credit to any Loan Party or of renewing, extending, or forbearing from demanding
immediate payment of extensions of credit to the Loan Parties, that Franklin Asset, Tribeca,
Franklin LLC and the other Loan Parties enter into this Agreement; and

     WHEREAS, each Loan Party will benefit, directly or indirectly, from credit and other
financial accommodations extended by the Secured Creditors to the Loan Parties.

 

     NOW, THEREFORE, in consideration of the promises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Franklin Asset,
Tribeca, Franklin LLC and each other Loan Party hereby agrees with the Secured Creditors as
follows:

ARTICLE
I Defined Terms

     Section 1.1 Definitions

     (a) Terms used herein that are defined in the UCC have the meanings given to them in the UCC,
including the following terms (which are capitalized herein):

     “Account Debtor”, “Accounts”, “Chattel Paper”, “Commercial Tort Claim”, “Commodity Account”,
“Commodity Intermediary”, “Deposit Account”, “Documents”, “Entitlement Holder”, “Entitlement
Order”, “Equipment”, “Financial Asset”, “General Intangibles”, “Instruments”, “Inventory”,
“Investment Property”, “Letter-of-Credit Right”, “Proceeds”, “Securities Account”, “Securities
Intermediary”, “Security, “Security Entitlement”.

     (b) The following terms shall have the following meanings:

     “Additional Pledged Collateral” means all shares of, partnership interests in (whether limited
or general), trust certificates of, and limited liability company interests in, all securities
convertible into, and warrants, options and other rights to purchase or otherwise acquire, stock of
or interests in, either (i) any Person that, after the date of this Agreement, as a result of any
occurrence, becomes a direct Subsidiary of any Loan Party or (ii) any issuer of Pledged Stock, any
Partnership or any LLC that is acquired by any Loan Party after the date hereof; all certificates
or other instruments representing any of the foregoing; all Security Entitlements of any Loan Party
in respect of any of the foregoing; all additional indebtedness from time to time owed to any Loan
Party by any obligor on the Pledged Notes and the instruments evidencing such indebtedness; and all
interest, cash, instruments and other property or Proceeds from time to time received, receivable
or otherwise distributed in respect of or in exchange for any of the foregoing. Additional Pledged
Collateral may be General Intangibles or Investment Property.

     “Agreement” means this Agreement.

     “Approved Deposit Account” means any present or future Deposit Account of any Loan Party that
(i) is maintained with Huntington (or any affiliate thereof) or (ii) is subject to an effective
Deposit Account Control Agreement in favor of the Administrative Agent and maintained with a
Deposit Account Bank. “Approved Deposit Account” includes all monies on deposit in a Deposit
Account and all certificates and instruments, if any, representing or evidencing such Deposit
Account.

     “Approved Securities Intermediary” means a Securities Intermediary or Commodity Intermediary
acceptable to the Administrative Agent and with respect to which a Loan Party has delivered to
Administrative Agent an executed Control Account Agreement.

     “Banking Services” means each and any of the following bank services provided to any Loan
Party by any Lender or any of its affiliates: (a) commercial credit cards, (b) stored value cards
and (c) treasury management services (including, without limitation, controlled disbursement,
automated clearinghouse transactions, return items, overdrafts and interstate depository network
services).

     “Bankruptcy Code” means Title 11 of the United States Code (11 USC, § 101 et
seq), as amended from time to time, and any successor statute thereto, including (unless
the context requires otherwise) any rules or regulations promulgated thereunder.

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

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     “Capital Leases” means a lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP.

     “Cash Collateral Account” means any deposit account over which the Administrative Agent has
sole dominion and control, established by the Administrative Agent, in its sole discretion at the
Administrative Agent, and entitled “The Huntington National Bank, as Agent and Secured Party for
Franklin Credit Asset Corporation (Blocked Account)” or such similar title as the Administrative
Agent may approve or require.

     “Cash Equivalents” means (i) marketable direct obligations issued or unconditionally
guaranteed by the United States of America or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one (1) year from the date of
acquisition thereof, (ii) marketable direct obligations issued by any state of the United States or
any political subdivision of any such state or any public instrumentality thereof maturing within
one (1) year from the date of acquisition thereof and, at the time of acquisition, having the
highest rating obtainable from either S&P or Moody’s, and (iii) certificates of deposit or bankers’
acceptances maturing within one (1) year from the date of acquisition thereof either (A) issued by
any bank organized under the laws of the United States or any state thereof which bank has a rating
of A or A2, or better, from S&P or Moody’s, or (B) issued by any other bank insured by the Federal
Deposit Insurance Corporation, (“FDIC”) provided that such certificates of deposit are less
than or equal to, in the aggregate, the deposit insurance coverage limit set by the FDIC for single
ownership accounts.

     “Collateral” has the meaning specified in Section 2.1.

     “Collection Account” means any Approved Deposit Account or Control Account in which cash and
Cash Equivalents may from time to time be on deposit or held therein as provided in this Agreement.

     “Contingent Obligations” means any agreement, undertaking or arrangement by which any Loan
Party assumes, guaranties, endorses, agrees to provide funding, or otherwise becomes or is
contingently liable upon the obligation or liability of any other Loan Party.

     “Control Account” means a Securities Account or Commodity Account that is subject of an
effective Control Account Agreement and that is maintained by any Loan Party with an Approved
Securities Intermediary. “Control Account” includes all Financial Assets held in a Securities
Account or a Commodity Account and all certificates and instruments, if any, representing or
evidencing the Financial Assets contained therein.

     “Control Account Agreement” means an agreement, in form and substance acceptable to the
Administrative Agent, executed by the relevant Loan Party, the Administrative Agent and the
relevant Approved Securities Intermediary.

     “Copyright Licenses” means any written agreement naming any Loan Party as licensor or licensee
granting any right under any Copyright, including the grant of any right to copy, publicly perform,
create derivative works, manufacture, distribute, exploit or sell materials derived from any
Copyright.

     “Copyrights” means (a) all copyrights arising under the laws of the United States, any other
country or any political subdivision thereof, whether registered or unregistered and whether
published or unpublished, all registrations and recordings thereof and all applications in
connection therewith, including all registrations, recordings and applications in the United States
Copyright Office or in any foreign counterparts thereof, and (b) the right to obtain all renewals
thereof.

     “Credit Documents” has the meaning specified above in the recitals.

     “Deposit Account Bank” means a financial institution selected or approved by the
Administrative Agent and with respect to which a Loan Party has delivered to the Administrative
Agent an executed Deposit Account Control Agreement.

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     “Deposit Account Control Agreement” means an agreement, in form and substance acceptable to
the Administrative Agent, executed by the relevant Loan Party, the Administrative Agent and the
relevant Deposit Account Bank.

     “Event of Default” means each of the following: (a) Franklin Asset, Tribeca, Franklin LLC or
any other Loan Party fails to perform or observe any covenant, agreement or duty contained in this
Agreement or any other Loan Document, or any default, forbearance default, or event of default
occurs under any Loan Document, including, without limitation, the Credit Agreement; or (b) any
warranty, representation or other statement made or deemed to be made in this Agreement or in any
Loan Document is false or misleading in any respect.

     “Excluded Property” means Equipment owned by any Loan Party that is, and continues to be,
subject to a Permitted Lien listed on Schedule 9 attached hereto, if the contract or other
agreement pursuant to which such Lien is granted contains an enforceable prohibition on the
creation of any Lien on such Equipment in favor of the Administrative Agent; and (b) equity
interests (whether Investment Property or General Intangibles), if the organizational or operating
documents pursuant to which such equity interests are issued or governed contain an enforceable
prohibition on the creation of any Lien on such equity interests in favor of the Administrative
Agent; in each case, only to the extent, and for so long as, such prohibition is not removed,
terminated or rendered unenforceable or otherwise deemed ineffective by applicable Law; provided,
however, that “Excluded Property” shall not include (i) the right to receive any payment of money
(including, without limitation, general intangibles for money due or to become due); and (ii) any
proceeds, products, offspring, accessions, rents, profits, income, benefits, substitutions or
replacements of any of the foregoing.

     “Existing Security Agreements” means (a) that certain Security Agreement, dated as of November
15, 2007, executed and delivered by and among the Franklin Credit Holding Corporation, Franklin
Credit Management Corporation, Franklin Asset and certain other Loan Parties, to and for the
benefit of Huntington (as amended, modified, supplemented or restated from time to time prior to
the date hereof), and (b) that certain Security Agreement, dated as of December 28, 2007, executed
and delivered by and among Tribeca and certain other Loan Parties, to and for the benefit of
Huntington (as amended, modified, supplemented or restated from time to time prior to the date
hereof).

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board, the American Institute of Certified Public
Accountants and the Financial Accounting Standards Board as in effect from time to time in the
United States consistently applied.

     “Governmental Authority” means any nation or government, any federal, state, local or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative authority or functions of or pertaining to government, including any
authority or other quasi-governmental entity established to perform any of such functions.

     “Indebtedness” means, at any time, (i) all indebtedness, obligations or other liabilities
(other than accounts payable arising in the ordinary course of business payable on terms customary
in the trade) which in accordance with GAAP should be classified as liabilities on the balance
sheet of such Person, including without limitation, (A) for borrowed money or evidenced by debt
securities, debentures, acceptances, notes or other similar instruments, and any accrued interest,
fees and charges relating thereto, (B) under profit payment agreements or in respect of obligations
to redeem, repurchase or exchange any securities or to pay dividends in respect of any stock, (C)
with respect to letters of credit, bankers acceptances, interest rate swaps or other contracts,
currency agreement or other financial products, (D) to pay the deferred purchase price of property
or services, or (E) in respect of Capital Leases; (ii) all indebtedness, obligations or other
liabilities secured by a lien on any property, whether or not such indebtedness, obligations or
liabilities are assumed by the owner of the same; and (iii) all Contingent Obligations.

     “Insolvency Proceeding” means any proceeding commenced by or against any Person under any
provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law,
receivership,

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assignment for the benefit of creditors, formal or informal moratorium, forbearance,
composition, extension generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief.

     “Intellectual Property” means, collectively, all rights, priorities and privileges of any Loan
Party relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including domain names, Copyrights, Copyright Licenses, Patents, Patent
Licenses, Trademarks, Trademark Licenses and trade secrets, and all rights to sue at law or in
equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

     “Intercompany Note” means any promissory note evidencing loans made by any Loan Party to any
of its Subsidiaries or another Loan Party.

     “Joinder Agreement” means a joinder agreement, in the form and substance acceptable to the
Administrative Agent, executed by the Administrative Agent and the relevant Subsidiary that
Franklin Asset, Tribeca, Franklin LLC or any other Loan Party is required to cause to become a
party hereto as a Loan Party.

     “Law” means any law (including common law), constitution, statute, treaty, convention,
regulation, rule, ordinance, order, injunction, writ, decree or award of any Governmental
Authority.

     “Lien” means any interest in an asset securing an obligation owed to, or a claim by, any
Person other than the owner of the asset, whether such interest shall be based on the common law,
statute, or contract, whether such interest shall be recorded or perfected, and whether such
interest shall be contingent upon the occurrence of some future event or events or the existence of
some future circumstance or circumstances, including the lien or security interest arising from any
mortgage, deed of trust, encumbrance, pledge, hypothecation, assignment (collateral or otherwise),
hypothec, deposit arrangement, security agreement, conditional sale, trust receipt, lease,
consignment, or bailment for security purposes, judgment, claim encumbrance or statutory trust and
also including reservations, exceptions, encroachments, easements, rights-of-way, covenants,
conditions, restrictions, leases, and other title exceptions and encumbrances affecting real
property.

     “LLC” means each limited liability company in which a Loan Party has an interest, including
those set forth on Schedule 3.

     “LLC Agreement” means each operating agreement with respect to an LLC, as each agreement has
heretofore been, and may hereafter be, amended, restated, supplemented or otherwise modified from
time to time.

     “Loan Documents” means the Credit Documents, any agreements or documents evidencing or
relating to the provision of any Banking Services by any Lender for the benefit of a Loan Party,
and any other agreement, document, or arrangement (whether now existing or hereafter arising) by
and among a Lender (or its affiliate) and one or more Loan Party.

     “Loan Party” means each of Franklin Asset, Tribeca, Franklin LLC, and any affiliate or
Subsidiary of Franklin Asset, Tribeca or Franklin LLC that is a signatory hereto on the date of
this Agreement, and any other Person who becomes a party to this Agreement pursuant to a Joinder
Agreement (in accordance with Section 7.10), and their respective successors and assigns. The term
“Loan Party” or “Loan Parties” as used herein shall mean and include the Loan Parties collectively
and also each individually, with all grants, representations, warranties, and covenants of and by
the Loan Parties, or any of them, herein contained to constitute joint and several grants,
representations, warranties, and covenants of and by the Loan Parties.

     “Material Intellectual Property” means Intellectual Property owned by or licensed to a Loan
Party and material to such Loan Party’s business.

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     “Partnership” means each partnership or joint venture in which a Loan Party has an interest,
including those set forth on Schedule 3.

     “Partnership Agreement” means each partnership or joint venture agreement governing a
Partnership, as each such agreement has heretofore been, and may hereafter be, amended, restated,
supplemented or otherwise modified.

     “Patents” means (a) all letters patent of the United States, any other country or any
political subdivision thereof and all reissues and extensions thereof, (b) all applications for
letters patent of the United States or any other country and all divisions, continuations and
continuations-in-part thereof and (c) all rights to obtain any reissues or extensions of the
foregoing.

     “Patent License” means all agreements, whether written or oral, providing for the grant by or
to any Loan Party of any right to manufacture, use, import, sell or offer for sale any invention
covered in whole or in part by a Patent.

     “Permitted Contests” means the right of Franklin Asset, Tribeca, Franklin LLC or another Loan
Party to contest or protest any Lien (other than any such Lien that secures the Secured
Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States
federal tax lien), or rental payment, provided that (i) a reserve with respect to such obligation
is established on Franklin Asset’s, Tribeca’s, Franklin LLC’s or another Loan Party’s, as the case
may be, books and records in such amount as is required under GAAP, (ii) any such protest is
instituted promptly and prosecuted diligently by Franklin Asset, Tribeca, Franklin LLC or the
applicable other Loan Party in good faith, and (iii) the Administrative Agent is satisfied in its
sole, good faith discretion, that, while any such protest is pending, there will be no impairment
of the enforceability, validity, or priority of any of the Administrative Agent’s Liens.

     “Permitted Liens” means (i) any Liens held by the Administrative Agent or an affiliate of the
Administrative Agent, (ii) Liens for unpaid taxes that either are not yet delinquent, or do not
constitute an Event of Default hereunder and are the subject of a Permitted Contest, (iii) Liens
set forth on Schedule 9 to the extent of the Indebtedness referenced therein, (iv) the interests of
lessors under operating leases, (v) Liens securing purchase money Indebtedness or the interests of
lessors under Capital Leases to the extent that such Liens or interests secure Permitted Purchase
Money Indebtedness, (vi) Liens arising by operation of law in favor of warehousemen, landlords,
carriers, mechanics, materialmen, or laborers, incurred in the ordinary course of a Loan Party’s
business and not in connection with the borrowing of money, and which Liens either (A) are for sums
not yet delinquent, or (B) are the subject of Permitted Contests, (vii) Liens arising from deposits
made in connection with obtaining worker’s compensation or other unemployment insurance, (viii)
Liens or deposits to secure performance of bids, tenders, or leases incurred in the ordinary course
of a Loan Party’s business and not in connection with the borrowing of money, (ix) Liens granted as
security for surety or appeal bonds in connection with obtaining such bonds in the ordinary course
of a Loan Party’s business, and (x) Liens resulting from any judgment or award that is not an Event
of Default hereunder.

     “Permitted Purchase Money Indebtedness” means secured or unsecured purchase money Indebtedness
(including obligations under Capital Leases) incurred to finance the acquisition of fixed assets or
equipment, if such Indebtedness (i) has a scheduled maturity and is not due on demand, (ii) does
not exceed the purchase price of the items being purchased, and (iii) is not secured by any
property or assets other than the item or items being purchased.

     “Person” means any individual, corporation, firm, enterprise, partnership, trust, incorporated
or unincorporated association, joint venture, joint stock company, limited liability company or any
other entity of any kind or any government or political subdivision or any agency, department or
instrumentality thereof.

     “Pledged Collateral” means, collectively, the Pledged Notes, the Pledged Stock, the Pledged
Trust Certificates, the Pledged Partnership Interests, the Pledged LLC Interests, any other
Investment Property of any

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Loan Party, all certificates or other instruments representing any of the foregoing and all
Security Entitlements of any Loan Party in respect of any of the foregoing. Pledged Collateral may
be General Intangibles or Investment Property.

     “Pledged LLC Interests” means all right, title and interest of any Loan Party as a member of
any LLC and all right, title and interest of any Loan Party in, to and under any LLC Agreement to
which it is a party.

     “Pledged Notes” means all right, title and interest of any Loan Party in the Instruments
evidencing all Indebtedness owed to such Loan Party, including all Indebtedness described on
Schedule 3, issued by the obligors named therein.

     “Pledged Partnership Interests” means all right, title and interest of any Loan Party as a
limited or general partner in all Partnerships and all right, title and interest of any Loan Party
in, to and under any Partnership Agreements to which it is a party.

     “Pledged Stock” means the shares of capital stock owned by each Loan Party, including all
shares of capital stock listed on Schedule 3.

     “Pledged Trust Certificates” means trust certificates issued by or on behalf of a statutory
trust and owned or held by a Loan Party.

     “Rate Management Transactions” means any transaction (including an agreement with respect
thereto) now existing or hereafter entered into among Franklin Asset, Tribeca, Franklin LLC, any
Subsidiary thereof, any Lender or any affiliate of a Lender, or any of its subsidiaries or
affiliates or their successors, which is a rate swap, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond
option, interest rate option, foreign exchange transaction, cap transaction, floor transaction,
collar transaction, forward transaction, currency swap transaction, cross-currency rate swap
transaction, currency option or any other similar transaction (including any option with respect to
any of these transactions) or any combination thereof, whether linked to one or more interest
rates, foreign currencies, commodity prices, equity prices or other financial measures.

     “Secured Obligations” means (a) any and all indebtedness, obligations, and liabilities now
existing or hereafter arising of Franklin Asset, Tribeca, Franklin LLC or any other Loan Party to
one or more Lender (or any affiliate) or arising under or in connection with or evidenced by (i)
the Credit Documents, this Agreement, or any other Loan Document, (ii) any other agreement relating
to (A) letters of credit or pursuant to any letter of credit agreement or application (if any), or
pursuant to any agreement or document relating to Banking Services, (B) any agreement in respect of
any Rate Management Transaction, (C) any agreement for any electronic transfers, treasury
management, cash management services and deposit and disbursement account liability, and (D) any
agreement of guaranty, surety or indemnity issued by such Person, (b) any and all indebtedness,
obligations, and liabilities, now existing or hereafter arising, whether absolute or contingent and
however and whenever created, arising, evidenced or acquired, of Franklin Asset, Tribeca, Franklin
LLC or any other Loan Party owed to any Lender (or any affiliate of a Lender), (and in each
instance in clauses (a)and (b) above, whether arising before or after the filing of a petition in
bankruptcy and including all interest accrued after any such petition date), due or to become due,
direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired, and (c) any
and all reasonable expenses and charges, legal or otherwise, suffered or incurred by a Lender or
any affiliate of a Lender in collecting or enforcing any such indebtedness, obligation, and
liability or in realizing on or protecting or preserving any security therefor, including, without
limitation, the Lien and security interest granted by any Credit Document.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Subsidiary” of a Person means any corporation, partnership, limited liability company or
other entity in which such Person directly or indirectly owns or controls the securities or other
ownership interests having

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ordinary voting power to elect a majority of the board of directors, or appoint managers or other
persons performing similar functions.

     “Trademark License” means any agreement, whether written or oral, providing for the grant by
or to any Loan Party of any right to use any Trademark.

     “Trademarks” means (a) all trademarks, trade names, corporate names, company names, business
names, fictitious business names, trade styles, service marks, logos and other source or business
identifiers, and, in each case, all goodwill associated therewith, whether now existing or
hereafter adopted or acquired, all registrations and recordings thereof and all applications in
connection therewith, in each case whether in the United States Patent and Trademark Office or in
any similar office or agency of the United States, any State thereof or any other country or any
political subdivision thereof, or otherwise, and all common-law rights related thereto, and (b) the
right to obtain all renewals thereof.

     “Trust Agreement” means that certain Trust Agreement, dated as of March 31, 2009, by and among
Franklin Asset, LLC, as depositor, The Huntington National Bank, as certificate trustee, Wilmington
Trust Company, as owner trustee.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the State of Ohio;
provided, however, that, in the event that, by reason of mandatory provisions of Law, any of the
attachment, perfection or priority of the Administrative Agent’s security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the
State of Ohio, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or
priority and for purposes of definitions related to such provisions.

     “Vehicles” means all vehicles covered by a certificate of title law of any state.

     Section 1.2 Certain Other Terms

     (a) In this Agreement, in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to” and “until” each mean
“to but excluding” and the word “through” means “to and including.”

     (b) The terms “herein,” “hereof,” “hereto” and “hereunder” and similar terms refer to this
Agreement as a whole and not to any particular Article, Section, subsection or clause in this
Agreement.

     (c) References herein to a Schedule, Article, Section, subsection or clause refer to the
appropriate Schedule to, or Article, Section, subsection or clause in this Agreement.

     (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

     (e) Where the context requires, provisions relating to any Collateral, when used in relation
to a Loan Party, shall refer to such Loan Party’s Collateral or any relevant part thereof.

     (f) Any reference in this Agreement to a Loan Document shall include all appendices, exhibits
and schedules thereto, and, unless specifically stated otherwise all amendments, restatements,
supplements or other modifications thereto, and as the same may be in effect at any time such
reference becomes operative.

     (g) Each of the terms “Lender”, “Lenders”, “Secured Creditor”, and “Secured Creditors”
includes its or their respective successors or assigns.

     (h) References in this Agreement to any statute shall be to such statute as amended or
modified and in effect from time to time.

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ARTICLE II Grant of Security Interest

     Section 2.1 Collateral

     For the purposes of this Agreement, all of the following property now owned or at any time
hereafter acquired by a Loan Party or in which a Loan Party now has or at any time in the future
may acquire any right, title or interests is collectively referred to as the “Collateral”:

     all Accounts and all rights to payment, whether or not earned by performance, including,
without limitation, for property that has been or is to be sold, leased, licensed, assigned or
otherwise disposed of, for services rendered or to be rendered, to a government, state, or
governmental unit, or for or in connection with any federal, state or local governmental relief,
bailout or other similar program or plan, whether or not arising under statute, rule or regulation;
all Chattel Paper; all Deposit Accounts; any amounts or refunds received from or in connection with
any taxing authority; all Documents; all Equipment; all General Intangibles (including, without
limitation, all contractual rights arising under any purchase agreement or assignments relating to
mortgage loans); all Instruments; all Inventory; all Investment Property; all Letter-of-Credit
Rights; all Vehicles; the Commercial Tort Claims described on Schedule 8 and on any supplement
thereto received by the Administrative Agent; all books and records pertaining to the other
property described in this Section 2.1; all other goods and personal property of such Loan Party,
whether tangible or intangible and wherever located; all property of any Loan Party held by any
Lender, including all property of every description, in the possession or custody of or in transit
to the Administrative Agent for any purpose, including safekeeping, collection or pledge, for the
account of such Loan Party or as to which such Loan Party may have any right or power; and to the
extent not otherwise included, all Proceeds.

     Section 2.2 Grant of Security Interest in Collateral

     Each Loan Party, as collateral security for the full, prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or otherwise) of the Secured
Obligations, hereby collaterally assigns, mortgages, pledges and hypothecates to Administrative
Agent (for the benefit of the Secured Creditors), and grants (whether under the UCC or otherwise)
to Administrative Agent (for the benefit of the Secured Creditors), a lien on and security interest
in, and a collateral assignment of, all of its right, title and interest in, to and under the
Collateral of such Loan Party; provided, however, that the foregoing grant of security interest
shall not include a security interest in any Excluded Property; provided, further, that, if and
when any property shall cease to be Excluded Property, the Administrative Agent shall have, and at
all times after the date hereof deemed to have had, a security interest in such property.

     Section 2.3 Cash Collateral Accounts

     The Administrative Agent may, in its discretion, establish one or more Cash Collateral
Accounts with Huntington, one or more other Deposit Account Banks and one or more Approved
Securities Intermediaries as it in its sole discretion shall determine. Each such account shall be
in the name of the Administrative Agent (as Agent for the benefit of the Secured Creditors) (but
may also have words referring to each Loan Party and such account’s purpose). Each Loan Party
agrees that each such Cash Collateral Account shall be under the sole dominion and control of the
Administrative Agent, as Agent for the benefit of the Secured Creditors. The Administrative Agent
shall be the sole Entitlement Holder with respect to each Securities Account constituting a Cash
Collateral Account and the only Persons authorized to give Entitlement Orders with respect thereto.
No Loan Party or Person claiming on behalf of any Loan Party shall have any right to demand
payment of any funds held in any Cash Collateral Account at any time prior to the termination of
all outstanding letters of credit and the indefeasible payment in full of all Secured Obligations.
During the continuance of an Event of Default, the

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Administrative Agent shall apply all funds on deposit in any Cash Collateral Account in
accordance with the terms and conditions of the Credit Agreement and otherwise as the
Administrative Agent may elect.

ARTICLE III Representations and Warranties

     To induce the Administrative Agent and Lenders to enter into or maintain the Credit Documents,
each Loan Party hereby represents and warrants each of the following to each Secured Creditor:

     Section 3.1 Title; No Other Liens

     Except for the Lien granted to the Administrative Agent pursuant to this Agreement and the
other Permitted Liens, such Loan Party is the record and beneficial owner of the Pledged Collateral
pledged by it hereunder constituting Instruments or certificated securities, is the Entitlement
Holder of all such Pledged Collateral constituting Investment Property held in a Securities Account
and has rights in or the power to transfer each other item of Collateral in which a Lien is granted
by it hereunder, free and clear of any Lien.

     Section 3.2 Perfection and Priority

     The security interest granted pursuant to this Agreement shall constitute a valid and
continuing perfected security interest in favor of the Administrative Agent in the Collateral for
which perfection is governed by the UCC or filing with the United States Copyright Office upon (i)
the completion of the filings and other actions specified on Schedule 4 which, in the case of all
filings and other documents referred to on such schedule, have been delivered to the Administrative
Agent in completed and duly executed form), (ii) the delivery to the Administrative Agent of all
Collateral consisting of Instruments and certificated securities, in each case properly endorsed
for transfer to the Administrative Agent or in blank, (iii) the execution of Control Account
Agreements with respect to Investment Property not in certificated form, (iv) the execution of
Deposit Account Control Agreements with respect to all Deposit Accounts and (v) all appropriate
filings having been made with the United States Copyright Office. Such security interest shall be
prior to all other Liens on the Collateral except for Permitted Liens having priority over the
Administrative Agent’s Lien by operation of law or otherwise, as permitted under this Agreement or
any other Loan Documents.

     Section 3.3 Name; Jurisdiction of Organization; Chief Executive Office

     Except as set forth on Schedule 2, within the five-year period preceding the date hereof, such
Loan Party has not had, or operated in any jurisdiction, under any trade name, fictitious name or
other name other than its legal name, and such Loan Party’s jurisdiction of organization,
organizational identification number, if any, and the location of such Loan Party’s chief executive
office or sole place of business is specified on Schedule 2.

     Section 3.4 Inventory and Equipment

     Such Loan Party’s Inventory and Equipment (other than mobile goods and Inventory or Equipment
in transit) are kept at the locations listed on Schedule 5 as supplemented pursuant to the terms
hereof.

     Section 3.5 Pledged Collateral

     (a) The Pledged Stock, Pledged Partnership Interests, Pledged Trust Certificates, and Pledged
LLC Interests pledged hereunder by such Loan Party are listed on Schedule 3 and constitute that
percentage of the issued and outstanding equity of all classes of each issuer thereof as set forth
on Schedule 3.

     (b) All of the Pledged Stock, Pledged Partnership Interests, Pledged Trust Certificates, and
Pledged LLC Interests have been duly and validly issued and are fully paid and nonassessable.

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     (c) Each of the Pledged Notes constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, and general equitable principles (whether
considered in a proceeding in equity or at law).

     (d) Except for Pledged Collateral and Additional Pledged Collateral not required to be
delivered to the Administrative Agent pursuant to Section 4.7, all Pledged Collateral and, if
applicable, any Additional Pledged Collateral, consisting of certificated securities or Instruments
has been delivered to the Administrative Agent in accordance with Section 4.4(a).

     (e) All Pledged Collateral held by a Securities Intermediary in a Securities Account is in a
Control Account.

     (f) Other than the Pledged Partnership Interests and the Pledged LLC Interests that constitute
General Intangibles, there is no Pledged Collateral other than (i) that represented by certificated
securities or Instruments in the possession of the Administrative Agent, or (ii) that consisting of
Financial Assets currently held in a Control Account.

     (g) Each Loan Party hereby acknowledges and agrees Borrower Representative, Tribeca and or
Franklin Asset accept and pledge, on behalf of the Loan Parties, 100% of their certificate
interests to the Administrative Agent in each Certificate (as defined in the Trust Agreement) and
100% of their interests in the REIT Shares (as defined in the Credit Agreement).

     Section 3.6 Accounts

     No amount in excess of $100,000 payable to such Loan Party under or in connection with any
Account is evidenced by any Instrument or Chattel Paper that has not been delivered to the
Administrative Agent, properly endorsed for transfer, to the extent delivery is required by Section
4.4.

     Section 3.7 Intellectual Property

     (a) Schedule 6 lists all Material Intellectual Property of such Loan Party, separately
identifying that owned by such Loan Party and that licensed to such Loan Party. The Material
Intellectual Property set forth on Schedule 6 for such Loan Party constitutes all of the
intellectual property rights necessary to conduct its business.

     (b) All Material Intellectual Property owned by such Loan Party is valid, subsisting,
unexpired and enforceable, has not been adjudged invalid and has not been abandoned and the use
thereof in the business of such Loan Party does not infringe the intellectual property rights of
any other Person.

     (c) Except as set forth in Schedule 6, none of the Material Intellectual Property owned by
such Loan Party is the subject of any licensing or franchise agreement pursuant to which such Loan
Party is the licensor or franchisor.

     (d) No holding, decision or judgment has been rendered by any Governmental Authority that
would limit, cancel or question the validity of, or such Loan Party’s rights in, any Material
Intellectual Property.

     (e) Except as set forth in Schedule 6, no action or proceeding seeking to limit, cancel or
question the validity of any Material Intellectual Property owned by such Loan Party or such Loan
Party’s ownership interest therein is pending or, to the knowledge of such Loan Party, threatened.
There are no claims, judgments or settlements to be paid by such Loan Party relating to the
Material Intellectual Property.

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     Section 3.8 Deposit Accounts; Securities Accounts

     The only Deposit Accounts or Securities Accounts maintained by any Loan Party are those listed
on Schedule 7 as supplemented pursuant to the terms hereof, which sets forth such information
separately for each Loan Party.

     Section 3.9 Commercial Tort Claims

     The only existing or potential Commercial Tort Claims pending or threatened in writing of any
Loan Party existing (regardless of whether the amount, defendant or other material facts can be
determined and regardless of whether such Commercial Tort Claim has been asserted, threatened or
has otherwise been made known to the obligee thereof or whether litigation has been commenced for
such claims) are those listed on Schedule 8 as supplemented pursuant to the terms hereof, which
sets forth such information separately for each Loan Party.

ARTICLE IV Covenants

     Each Loan Party agrees with Secured Creditors to the following, as long as any Secured
Obligation remains outstanding or any Secured Creditor has any obligation to extend credit to any
Loan Party under any Loan Document, and, in each case, unless the Administrative Agent otherwise
consents in writing:

     Section 4.1 Generally

     Such Loan Party shall (a) except for the security interest created by this Agreement, not
create or suffer to exist any Lien upon or with respect to any Collateral, except Permitted Liens,
(b) not use or permit any Collateral to be used unlawfully or in violation of any provision of this
Agreement, any other Loan Document, any applicable Law or any policy of insurance covering the
Collateral, (c) not sell, transfer or assign (by operation of law or otherwise) any Collateral
except as permitted under the Loan Documents or otherwise within the ordinary course of its
business, (d) not enter into any agreement or undertaking restricting the right or ability of such
Loan Party or the Administrative Agent to sell, assign or transfer any Collateral except as
permitted under the Loan Documents and (e) promptly notify the Administrative Agent of its entry
into any agreement or assumption of undertaking that restricts the ability to sell, assign or
transfer any Collateral.

     Section 4.2 Maintenance of Perfected Security Interest; Further Documentation

     (a) Such Loan Party shall maintain the security interest created by this Agreement as a
perfected security interest having at least the priority described in Section 3.2 and shall defend
such security interest against the claims and demands of all Persons.

     (b) Such Loan Party 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 reasonably request, all in reasonable detail.

     (c) At any time and from time to time, upon the written request of the Administrative Agent,
and at the sole expense of such Loan Party, such Loan Party shall promptly and duly execute and
deliver, and have recorded, such further instruments, agreements, assignments, or other documents
and take such further action as the Administrative Agent may reasonably request for the purpose of
obtaining or preserving the full benefits of this Agreement and of the rights and powers herein
granted, including the filing of any financing or continuation statement under the UCC (or other
similar laws) in effect in any jurisdiction with respect to the security interest created hereby
and the execution and delivery of Deposit Account Control Agreements and Control Account
Agreements.

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     Section 4.3 Changes in Locations, Name, Etc.

     (a) Except upon 15 days’ prior written notice to the Administrative Agent and delivery to the
Administrative Agent of (i) all additional documents reasonably requested by the Administrative
Agent to maintain the validity, perfection and priority of the security interests provided for
herein and (ii) if applicable, a written supplement to Schedule 5 showing any additional location
at which Inventory or Equipment shall be kept, such Loan Party shall not do any of the following:

     (i) permit any Inventory or Equipment to be kept at a location other than those listed
on Schedule 5, except for Inventory or Equipment in transit to and from such locations;

     (ii) change its jurisdiction of organization or the location of its chief executive
office or sole place of business from that referred to in Section 3.3; or

     (iii) change its name, identity or corporate structure to such an extent that any
financing statement filed in connection with this Agreement would become seriously
misleading.

     (b) Such Loan Party shall keep and maintain at its own cost and expense satisfactory and
complete records of the Collateral, including a record of all payments received and all credits
granted with respect to the Collateral and all other dealings with the Collateral. Except to the
extent any such Vehicle is Excluded Property, if requested by the Administrative Agent, the
security interest of the Administrative Agent shall be noted on the certificate of title of each
Vehicle.

     Section 4.4 Pledged Collateral

     (a) Such Loan Party shall (i) deliver to the Administrative Agent all certificates and
Instruments representing or evidencing any Pledged Collateral (including Additional Pledged
Collateral), whether now existing or hereafter acquired, in suitable form for transfer by delivery
or, as applicable, accompanied by such Loan Party’s endorsement, where necessary, or duly executed
instruments of transfer or assignment in blank, all in form and substance satisfactory to the
Administrative Agent, together, in respect of any Additional Pledged Collateral, with a Pledge
Amendment, duly executed by the Loan Parties, in substantially form substance acceptable to the
Administrative Agent or such other documentation acceptable to the Administrative Agent and (ii)
maintain all other Pledged Collateral constituting Investment Property in a Control Account. Such
Loan Party authorizes the Administrative Agent to attach each Pledge Amendment to this Agreement.
From and after the occurrence and during the continuance of an Event of Default, the Administrative
Agent shall have the right, at any time in its discretion and without notice to any Loan Party, to
transfer to or to register in its name or in the name of its nominees any Pledged Collateral. The
Administrative Agent shall have the right at any time to exchange any certificate or instrument
representing or evidencing any Pledged Collateral for certificates or instruments of smaller or
larger denominations.

     (b) Except as provided in Article V, such Loan Party shall be entitled to receive all cash
dividends paid in respect of the Pledged Collateral (other than liquidating or similar dividends)
with respect to the Pledged Collateral. Any sums paid upon or in respect of any Pledged Collateral
upon the liquidation or dissolution of any issuer of any Pledged Collateral, any distribution of
capital made on or in respect of any Pledged Collateral or any property distributed upon or with
respect to any Pledged Collateral pursuant to the recapitalization or reclassification of the
capital of any issuer of Pledged Collateral or pursuant to the reorganization thereof shall, unless
otherwise subject to a perfected security interest in favor of the Administrative Agent, be
delivered to the Administrative Agent to be held by it hereunder as additional collateral security
for the Secured Obligations. If any sum of money or property so paid or distributed in respect of
any Pledged Collateral shall be received by such Loan Party, such Loan Party shall, until such
money or property is paid or delivered to the Administrative Agent, hold such money or property in
trust for the Administrative Agent, segregated from other funds of such Loan Party, as additional
security for the Secured Obligations.

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     (c) Except as provided in Article V, such Loan Party shall be entitled to exercise all voting,
consent and corporate rights with respect to the Pledged Collateral; provided, however, that no
vote shall be cast, consent given or right exercised or other action taken by such Loan Party that
would impair the Collateral, be inconsistent with or result in any violation of any provision of
this Agreement or any other Loan Document or, without prior notice to the Administrative Agent,
enable or permit any issuer of Pledged Collateral to issue any stock or other equity securities of
any nature or to issue any other securities convertible into or granting the right to purchase or
exchange for any stock or other equity securities of any nature of any issuer of Pledged
Collateral.

     (d) Such Loan Party shall not grant control over any Investment Property to any Person other
than the Administrative Agent.

     (e) In the case of each Loan Party that is an issuer of Pledged Collateral, such Loan Party
agrees to be bound by the terms of this Agreement relating to the Pledged Collateral issued by it
and shall comply with such terms insofar as such terms are applicable to it. In the case of each
Loan Party that is a partner in a Partnership, such Loan Party hereby consents to the extent
required by the applicable Partnership Agreement to the pledge by each other Loan Party, pursuant
to the terms hereof, of the Pledged Partnership Interests in such Partnership and to the transfer
of such Pledged Partnership Interests to the Administrative Agent or its nominee and to the
substitution of the Administrative Agent or its nominee as a substituted partner in such
Partnership with all the rights, powers and duties of a general partner or a limited partner, as
the case may be. In the case of each Loan Party that is a member of an LLC, such Loan Party hereby
consents to the extent required by the applicable LLC Agreement to the pledge by each other Loan
Party, pursuant to the terms hereof, of the Pledged LLC Interests in such LLC and to the transfer
of such Pledged LLC Interests to the Administrative Agent or its nominee and to the substitution of
the Administrative Agent or its nominee as a substituted member of the LLC with all the rights,
powers and duties of a member of the LLC in question.

     (f) Such Loan Party shall not agree to any amendment of an LLC Agreement or Partnership
Agreement that in any way adversely affects the perfection of the security interest of the
Administrative Agent in the Pledged Partnership Interests or Pledged LLC Interests pledged by such
Loan Party hereunder, including any amendment electing to treat the membership interest or
partnership interest of such Loan Party as a security under Article 8 of the UCC.

     Section 4.5 Control Accounts; Approved Deposit Accounts

     (a) Such Loan Party shall (i) deposit in an Approved Deposit Account all cash received by such
Loan Party, (ii) not establish or maintain any Securities Account that is not a Control Account and
(iii) not establish or maintain any Deposit Account other than with a Deposit Account Bank, the
Administrative Agent or an affiliate of the Administrative Agent; provided, however, that any Loan
Party may maintain payroll, withholding tax and other fiduciary accounts with the Administrative
Agent or an affiliate thereof in Deposit Accounts that are not Approved Deposit Accounts.

     (b) Such Loan Party shall instruct each Account Debtor or other Person obligated to make a
payment to such Loan Party under a General Intangible to make payment, or to continue to make
payment, as the case may be, to an Approved Deposit Account and shall deposit in an Approved
Deposit Account all Proceeds of such Accounts and General Intangibles received by such Loan Party
from any other Person immediately upon receipt.

     (c) In the event (i) such Loan Party or any Approved Securities Intermediary or Deposit
Account Bank shall, after the date hereof, terminate an agreement with respect to the maintenance
of a Control Account or Approved Deposit Account for any reason, (ii) the Administrative Agent
shall demand such termination as a result of the failure of an Approved Securities Intermediary or
Deposit Account Bank to comply with the terms of the applicable Control Account Agreement or
Deposit Account Control Agreement, or (iii) the Administrative Agent determines in its sole good
faith discretion that the financial condition of an Approved

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Securities Intermediary or Deposit Account Bank, as the case may be, has materially
deteriorated, such Loan Party agrees to notify all of its obligors that were making payments to
such terminated Control Account or Approved Deposit Account, as the case may be, to make all future
payments to another Control Account or Approved Deposit Account, as the case may be.

     (d) The Administrative Agent agrees that it shall not provide any instruction with respect to
any Approved Deposit Account or Control Account unless an Event of Default has occurred and is
continuing.

     Section 4.6 Accounts

     (a) Such Loan Party shall not, other than in the ordinary course of business consistent with
its past practice, (i) grant any extension of the time of payment of any Account, (ii) compromise
or settle any Account for less than the full amount thereof, (iii) release, wholly or partially,
any Person liable for the payment of any Account, (iv) allow any credit or discount on any Account
or (v) amend, supplement or modify any Account in any manner that could adversely affect the value
thereof.

     (b) The Administrative Agent shall have the right to make test verifications of the Accounts
in any manner and through any medium that the Administrative Agent reasonably considers advisable,
and such Loan Party shall furnish all such assistance and information as the Administrative Agent
may reasonably require in connection therewith. At any time and from time to time, upon the
Administrative Agent’s request and at the expense of the relevant Loan Party, such Loan Party shall
cause independent public accountants or others satisfactory to the Administrative Agent to furnish
to the Administrative Agent reports showing reconciliations, aging and test verifications of, and
trial balances for, the Accounts.

     Section 4.7 Delivery of Instruments and Chattel Paper

     If any amount in excess of $100,000 payable under or in connection with any Collateral owned
by such Loan Party shall be or become evidenced by an Instrument or Chattel Paper, such Loan Party
shall immediately deliver such Instrument or Chattel Paper to the Administrative Agent, duly
indorsed in a manner satisfactory to the Administrative Agent, or, if consented to by the
Administrative Agent, shall mark all such Instruments and Chattel Paper with the following legend:
“This writing and the obligations evidenced or secured hereby are subject to the security interest
of The Huntington National Bank, as Agent.”

     Section 4.8 Intellectual Property

     (a) Such Loan Party (either itself or through licensees) shall (i) continue to use each
Trademark that is Material Intellectual Property in order to maintain such Trademark in full force
and effect with respect to each class of goods for which such Trademark is currently used, free
from any claim of abandonment for non-use, (ii) maintain as in the past the quality of products and
services offered under such Trademark, (iii) use such Trademark with the appropriate notice of
registration and all other notices and legends required by applicable Law, (iv) not adopt or use
any mark that is confusingly similar or a colorable imitation of such Trademark unless the
Administrative Agent shall obtain a perfected security interest in such mark pursuant to this
Agreement and (v) not (and not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way.

     (b) Such Loan Party (either itself or through licensees) shall not do any act, or omit to do
any act, whereby any Patent that is Material Intellectual Property may become forfeited, abandoned
or dedicated to the public.

     (c) Such Loan Party (either itself or through licensees) (i) shall not (and shall not permit
any licensee or sublicensee thereof to) do any act or omit to do any act whereby any portion of the
Copyrights that is Material Intellectual Property may become invalidated or otherwise impaired and
(ii) shall not (either itself or

15

 

through licensees) do any act whereby any portion of the Copyrights that is Material
Intellectual Property may fall into the public domain.

     (d) Such Loan Party (either itself or through licensees) shall not do any act, or omit to do
any act, whereby any trade secret that is Material Intellectual Property may become publicly
available or otherwise unprotectable.

     (e) Such Loan Party (either itself or through licensees) shall not do any act that knowingly
uses any Material Intellectual Property to infringe the intellectual property rights of any other
Person.

     (f) Such Loan Party shall notify the Administrative Agent immediately if it knows, or has
reason to know, that any application or registration relating to any Material Intellectual Property
may become forfeited, abandoned or dedicated to the public, or of any adverse determination or
development (including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office, the United States Copyright Office or
any court or tribunal in any country) regarding such Loan Party’s ownership of, right to use,
interest in, or the validity of, any Material Intellectual Property or such Loan Party’s right to
register the same or to own and maintain the same.

     (g) Whenever such Loan Party, either by itself or through any agent, licensee or designee,
shall file an application for the registration of any Intellectual Property with the United States
Patent and Trademark Office, the United States Copyright Office or any similar office or agency
within or outside the United States, such Loan Party shall report such filing to the Administrative
Agent within five Business Days after the last day of the fiscal quarter in which such filing
occurs. Upon request of the Administrative Agent, such Loan Party shall execute and deliver, and
have recorded, all agreements, instruments, documents and papers as the Administrative Agent may
request to evidence the Administrative Agent’s security interest in any Copyright, Patent or
Trademark and the goodwill and general intangibles of such Loan Party relating thereto or
represented thereby.

     (h) Such Loan Party shall take all reasonable actions necessary or requested by the
Administrative Agent, including in any proceeding before the United States Patent and Trademark
Office, the United States Copyright Office or any similar office or agency, to maintain and pursue
each application (and to obtain the relevant registration) and to maintain each registration of any
Copyright, Trademark or Patent that is Material Intellectual Property, including filing of
applications for renewal, affidavits of use, affidavits of incontestability and opposition and
interference and cancellation proceedings.

     (i) In the event that any Material Intellectual Property is infringed upon or misappropriated
or diluted by a third party, such Loan Party shall notify the Administrative Agent promptly after
such Loan Party learns thereof. Such Loan Party shall take appropriate action in response to such
infringement, misappropriation of dilution, including promptly bringing suit for infringement,
misappropriation or dilution and to recover all damages for such infringement, misappropriation of
dilution, and shall take such other actions as may be appropriate in its reasonable judgment under
the circumstances to protect such Material Intellectual Property.

     (j) Unless otherwise agreed to by the Administrative Agent, such Loan Party shall execute and
deliver to the Administrative Agent for filing in (i) the United States Copyright Office a
short-form copyright security agreement in form and substance acceptable to the Administrative
Agent, (ii) in the United States Patent and Trademark Office a short-form patent security agreement
in form and substance acceptable to the Administrative Agent and (iii) the United States Patent and
Trademark Office a short-form trademark security agreement in form and substance acceptable to the
Administrative Agent.

     Section 4.9 Vehicles

     Upon the request of the Administrative Agent, on or before the date of this Agreement and
within ten (10) days after the date of acquisition of any Vehicle acquired after the date hereof,
such Loan Party shall

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execute a short-form motor vehicle security agreement, in form and substance acceptable to the
Administrative Agent, specifically describing each Vehicle owned by such Loan Party. In addition,
upon the request of the Administrative Agent, within 30 days after the date of such request and,
with respect to any Vehicle acquired by such Loan Party subsequent to the date of any such request,
within 30 days after the date of acquisition thereof, such Loan Party shall (i) file all
applications for certificates of title or ownership indicating the Administrative Agent’s first
priority security interest in the Vehicle covered by such certificate and any other necessary
documentation, in each office in each jurisdiction that the Administrative Agent shall deem
advisable to perfect its security interests in the Vehicles.

     Section 4.10 Notice of Commercial Tort Claims

     Such Loan Party agrees that, if it shall acquire any interest in any Commercial Tort Claim
(whether from another Person or because such Commercial Tort Claim shall have come into existence),
(i) such Loan Party shall, immediately upon such acquisition, deliver to the Administrative Agent,
in each case in form and substance satisfactory to the Administrative Agent, a notice of the
existence and nature of such Commercial Tort Claim and deliver a supplement to Schedule 8
containing a specific description of such Commercial Tort Claim, certified by such Loan Party as
true, correct and complete, (ii) the provision of Section 2.1 shall apply to such Commercial Tort
Claim (and the Loan Parties authorize the Administrative Agent to supplement such schedule with a
description of such Commercial Tort Claim if such Loan Party fails to deliver the supplement
described in clause (i)) and (iii) such Loan Party shall execute and deliver to the Administrative
Agent, in each case in form and substance satisfactory to the Administrative Agent, any
certificate, agreement and other document, and take all other action, deemed by the Administrative
Agent to be reasonably necessary or appropriate for the Administrative Agent to obtain a
first-priority, perfected security interest in all such Commercial Tort Claims. Any supplement to
Schedule 8 delivered pursuant to this Section 4.10 shall become part of Schedule 8 for all
purposes hereunder other than, absent a written consent of the Administrative Agent, for purpose of
the representations and warranties set forth in Section 3.9.

ARTICLE
V Remedial Provisions

     Section 5.1 Code and Other Remedies

     During the continuance of an Event of Default, the Administrative Agent may exercise, in
addition to all other rights and remedies granted to the Administrative Agent in this Agreement and
in any other instrument or agreement securing, evidencing or relating to the Secured Obligations,
all rights and remedies of a secured party under the UCC or any other applicable Law. Without
limiting the generality of the foregoing, the Administrative Agent, without demand of performance
or other demand, presentment, protest, advertisement or notice of any kind (except any notice
required by Law referred to below) to or upon any Loan Party or any other Person (all and each of
which demands, defenses, advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon any Collateral, and may forthwith sell,
lease, assign, give option or options to purchase, or otherwise dispose of and deliver any
Collateral (or contract to do any of the foregoing), in one or more parcels at public or private
sale or sales, at any exchange, broker’s board or office of the Administrative Agent or elsewhere
upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk. The Administrative
Agent shall have the right upon any such public sale or sales, and, to the extent permitted by Law,
upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold,
free of any right or equity of redemption in any Loan Party, which right or equity is hereby waived
and released. Each Loan Party further agrees, at the Administrative Agent’s request, to assemble
the Collateral and make it available to the Administrative Agent at places that the Administrative
Agent shall reasonably select, whether at such Loan Party’s premises or elsewhere. The
Administrative Agent shall apply the net proceeds of any action taken by it pursuant to this
Section 5.1, after deducting all reasonable costs and expenses of every kind incurred in connection
therewith or incidental to the care or safekeeping of any Collateral or in any way relating to the
Collateral or the rights of the Administrative Agent hereunder, including reasonable attorneys’
fees and disbursements, to the payment in whole or in part of the Secured Obligations, in such
order as the Loan

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Documents shall prescribe (or if no such order is prescribed therein, then in such order as
the Administrative Agent may elect), and only after such application and after the payment by the
Administrative Agent of any other amount required by any provision of Law, need the Administrative
Agent account for the surplus, if any, to any Loan Party. To the extent permitted by applicable
Law, each Loan Party waives all claims, damages and demands it may acquire against the
Administrative Agent arising out of the exercise by them of any rights hereunder. If any notice of
a proposed sale or other disposition of Collateral shall be required by Law, such notice shall be
deemed reasonable and proper if given at least 10 days before such sale or other disposition.

     Section 5.2 Accounts and Payments in Respect of General Intangibles

     (a) If required by the Administrative Agent in writing at any time during the continuance of
an Event of Default, each Loan Party shall cause all payment of Accounts or payment in respect of
General Intangibles to be directed to a Cash Collateral Account, and if collected by any Loan
Party, each such payment shall be forthwith deposited by such Loan Party in the exact form
received, duly indorsed by such Loan Party to the Administrative Agent if required, in a Cash
Collateral Account. Until so turned over, each such payment shall be held by such Loan Party in
trust for the Administrative Agent, segregated from other funds of such Loan Party. Each such
deposit of Proceeds of Accounts and payments in respect of General Intangibles shall be accompanied
by a report identifying in reasonable detail the nature and source of the payments included in the
deposit.

     (b) At the Administrative Agent’s request in writing, during the continuance of an Event of
Default, each Loan Party shall deliver to the Administrative Agent all original and other documents
evidencing, and relating to, the agreements and transactions that gave rise to the Accounts or
payments in respect of General Intangibles, including all original orders, invoices and shipping
receipts.

     (c) The Administrative Agent may, without notice, at any time during the continuance of an
Event of Default, limit or terminate the authority of a Loan Party to collect its Accounts or
amounts due under General Intangibles or any thereof.

     (d) The Administrative Agent in its own name or in the name of others may at any time during
the continuance of an Event of Default communicate with Account Debtors to verify with them to the
Administrative Agent’s satisfaction the existence, amount and terms of any Account or amounts due
under any General Intangible.

     (e) Upon the request of the Administrative Agent in writing at any time after the occurrence
of an Event of Default, each Loan Party shall notify Account Debtors that the Accounts or General
Intangibles have been collaterally assigned to the Administrative Agent and that payments in
respect thereof shall be made directly to the Administrative Agent or to a Cash Collateral Account.
In addition, the Administrative Agent may at any time during the continuance of an Event of
Default enforce such Loan Party’s rights against such Account Debtors and obligors of General
Intangibles.

     (f) Anything herein to the contrary notwithstanding, each Loan Party shall remain liable under
each of the Accounts and payments in respect of General Intangibles to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in accordance with
the terms of any agreement giving rise thereto. The Administrative Agent shall not have any
obligation or liability under any agreement giving rise to an Account or a payment in respect of a
General Intangible by reason of or arising out of this Agreement or the receipt by the
Administrative Agent of any payment relating thereto, nor shall the Administrative Agent be
obligated in any manner to perform any obligation of any Loan Party under or pursuant to any
agreement giving rise to an Account or a payment in respect of a General Intangible, to make any
payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or
as to the sufficiency of any performance by any party thereunder, to present or file any claim, to
take any action to enforce any performance or to collect the payment of any amounts that may have
been assigned to it or to which it may be entitled at any time or times.

18

 

     Section 5.3 Pledged Collateral

     (a) During the continuance of an Event of Default, upon notice by the Administrative Agent to
the relevant Loan Party or Loan Parties, (i) the Administrative Agent shall have the right to
receive any Proceeds of the Pledged Collateral and make application thereof to the Secured
Obligations in the order set forth in the Loan Documents (or if no such order is set forth therein,
then in such order as the Administrative Agent may elect) and (ii) the Administrative Agent or its
nominee may exercise (A) any voting, consent, corporate and other right pertaining to the Pledged
Collateral at any meeting of shareholders, partners or members, as the case may be, of the relevant
issuer or issuers of Pledged Collateral or otherwise and (B) any right of conversion, exchange and
subscription and any other right, privilege or option pertaining to the Pledged Collateral as if it
were the absolute owner thereof (including the right to exchange at its discretion any of the
Pledged Collateral upon the merger, consolidation, reorganization, recapitalization or other
fundamental change in the corporate structure of any issuer of Pledged Collateral, the right to
deposit and deliver any Pledged Collateral with any committee, depositary, transfer agent,
registrar or other designated agency upon such terms and conditions as the Administrative Agent may
determine), all without liability except to account for property actually received by it; provided,
however, that the Administrative Agent shall have no duty to any Loan Party to exercise any such
right, privilege or option and shall not be responsible for any failure to do so or delay in so
doing.

     (b) In order to permit the Administrative Agent to exercise the voting and other consensual
rights that it may be entitled to exercise pursuant hereto and to receive all dividends and other
distributions that it may be entitled to receive hereunder, (i) each Loan Party shall, promptly
execute and deliver (or cause to be executed and delivered) to the Administrative Agent all such
proxies, dividend payment orders and other instruments as the Administrative Agent may from time to
time reasonably request and (ii) without limiting the effect of clause (i) above, such Loan Party
hereby grants to the Administrative Agent an irrevocable proxy to vote all or any part of the
Pledged Collateral and to exercise all other rights, powers, privileges and remedies to which a
holder of the Pledged Collateral would be entitled (including giving or withholding written
consents of shareholders, partners or members, as the case may be, calling special meetings of
shareholders, partners or members, as the case may be, and voting at such meetings), which proxy
shall be effective, automatically and without the necessity of any action (including any transfer
of any Pledged Collateral on the record books of the issuer thereof) by any other Person (including
the issuer of such Pledged Collateral or any officer or agent thereof) during the continuance of an
Event of Default and which proxy shall only terminate upon the payment in full of the Secured
Obligations.

     (c) Each Loan Party hereby expressly authorizes and instructs each issuer of any Pledged
Collateral pledged hereunder by such Loan Party to (i) comply with any instruction received by it
from the Administrative Agent in writing that (A) states that an Event of Default has occurred and
is continuing and (B) is otherwise in accordance with the terms of this Agreement, without any
other or further instructions from such Loan Party, and each Loan Party agrees that such issuer
shall be fully protected in so complying and (ii) unless otherwise expressly permitted hereby, pay
any dividend or other payment with respect to the Pledged Collateral directly to the Administrative
Agent.

     Section 5.4 Proceeds to be Turned Over To the Administrative Agent

     Except as set forth in the Credit Agreement, all Proceeds received by the Administrative Agent
hereunder during the continuance of an Event of Default shall be held by the Administrative Agent
in a Cash Collateral Account. All Proceeds while held by the Administrative Agent in a Cash
Collateral Account (or by such Loan Party in trust for the Administrative Agent) shall continue to
be held as collateral security for the Secured Obligations and shall not constitute payment thereof
until applied to the payment of the Secured Obligations.

19

 

     Section 5.5 Sale of Pledged Collateral

     (a) Each Loan Party recognizes that the Administrative Agent may be unable to effect a public
sale of any Pledged Collateral by reason of certain prohibitions contained in the Securities Act
and applicable state securities laws or otherwise or may determine that a public sale is
impracticable or not commercially reasonable and, accordingly, may resort to one or more private
sales thereof to a restricted group of purchasers that shall be obliged to agree, among other
things, to acquire such securities for their own account for investment and not with a view to the
distribution or resale thereof. Each Loan Party acknowledges and agrees that any such private sale
may result in prices and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner. The Administrative Agent shall be under no obligation to
delay a sale of any Pledged Collateral for the period of time necessary to permit the issuer
thereof to register such securities for public sale under the Securities Act, or under applicable
state securities laws, even if such issuer would agree to do so.

     (b) Each Loan Party agrees to use its best efforts to do or cause to be done all such other
acts as may be necessary to make such sale or sales of all or any portion of the Pledged Collateral
pursuant to this Section 5.5 valid and binding and in compliance with all other applicable Law.
Each Loan Party further agrees that a breach of any covenant contained in this Section 5.5 will
cause irreparable injury to the Administrative Agent, that the Administrative Agent has no adequate
remedy at law in respect of such breach and, as a consequence, that each and every covenant
contained in this Section 5.5 shall be specifically enforceable against such Loan Party, and such
Loan Party hereby waives and agrees not to assert any defense against an action for specific
performance of such covenants except for a defense that no Event of Default has occurred under any
Loan Document.

     Section 5.6 Deficiency

     Each Loan Party shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay the Secured Obligations and the reasonable
fees and disbursements of any attorney employed by the Administrative Agent to collect such
deficiency.

ARTICLE
VI The Administrative Agent

     Section 6.1 The Administrative Agent’s Appointment as Attorney-in-Fact

     (a) Each Loan Party hereby irrevocably constitutes and appoints the Administrative Agent 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 Loan
Party and in the name of such Loan Party or in its own name, for the purpose of carrying out the
terms of this Agreement, to take any appropriate action and to execute any document or instrument
that may be necessary or desirable to accomplish the purposes of this Agreement, and, without
limiting the generality of the foregoing, each Loan Party hereby gives the Administrative Agent the
power and right, on behalf of such Loan Party, without notice to or assent by such Loan Party, to
do any of the following:

     (i) in the name of such Loan Party or its own name, or otherwise, take possession of
and indorse and collect any check, draft, note, acceptance or other instrument for the
payment of moneys due under any Account or General Intangible or with respect to any other
Collateral and file any claim or take any other action or proceeding in any court of law or
equity or otherwise deemed appropriate by the Administrative Agent for the purpose of
collecting any such moneys due under any Account or General Intangible or with respect to
any other Collateral whenever payable;

     (ii) in the case of any Intellectual Property, execute and deliver, and have recorded,
any agreement, instrument, document or paper as the Administrative Agent may request to
evidence the

20

 

Administrative Agent’s security interest in such Intellectual Property and the goodwill
and General Intangibles of such Loan Party relating thereto or represented thereby;

     (iii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repair or pay or discharge any insurance called for by the terms of
this Agreement (including all or any part of the premiums therefore and the costs thereof);

     (iv) execute, in connection with any sale provided for in Section 5.1 or Section 5.5,
any endorsement, assignment or other instrument of conveyance or transfer with respect to
the Collateral; or

     (v) (A) direct any party liable for any payment under any Collateral to make payment of
any moneys due or to become due thereunder directly to the Administrative Agent or as the
Administrative Agent shall direct, (B) ask or demand for, collect, and receive payment of
and receipt for, any moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral, (C) sign and indorse any invoice, freight or
express bill, bill of lading, storage or warehouse receipt, draft against debtors,
assignment, verification, notice and other document in connection with any Collateral, (D)
commence and prosecute any suit, action or proceeding at law or in equity in any court of
competent jurisdiction to collect any Collateral and to enforce any other right in respect
of any Collateral, (E) defend any suit, action or proceeding brought against such Loan Party
with respect to any Collateral, (F) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as the
Administrative Agent may deem appropriate, (G) assign any Copyright, Patent or Trademark
(along with the goodwill of the business to which any such Trademark pertains) throughout
the world for such term or terms, on such conditions, and in such manner as the
Administrative Agent shall in its sole discretion determine, including the execution and
filing of any document necessary to effectuate or record such assignment and (H) generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal with any
Collateral as fully and completely as though the Administrative Agent was the absolute owner
thereof for all purposes, and do, at the Administrative Agent’s option and such Loan Party’s
expense, at any time, or from time to time, all acts and things that the Administrative
Agent deems necessary to protect, preserve or realize upon the Collateral and the
Administrative Agent’s security interests therein and to effect the intent of this
Agreement, all as fully and effectively as such Loan Party might do.

     (b) If any Loan Party fails to perform or comply with any of its agreements contained herein,
the Administrative Agent, at its option, but without any obligation so to do, may perform or
comply, or otherwise cause performance or compliance, with such agreement.

     (c) The expenses of the Administrative Agent incurred in connection with actions undertaken as
provided in this Section 6.1, together with interest thereon at a rate per annum equal to the
highest rate per annum at which interest would then be payable on any past due amount under any
Credit Document from the date of payment by the Administrative Agent to the date reimbursed by the
relevant Loan Party, shall be payable by such Loan Party to the Administrative Agent on demand.

     (d) Each Loan Party hereby ratifies all that said attorneys shall lawfully do or cause to be
done by virtue hereof. All powers, authorizations and agencies contained in this Agreement are
coupled with an interest and are irrevocable until this Agreement is terminated and the security
interests created hereby are released.

     Section 6.2 Duty of the Administrative Agent

     The Administrative Agent’s sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession shall be to deal with it in the same manner as the
Administrative Agent deals with similar property for its own account. Neither the Administrative
Agent, nor any of its respective officers, directors, employees or agents shall be liable for
failure to demand, collect or realize upon any Collateral or for

21

 

any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Loan Party or any other Person or to take any other action
whatsoever with regard to any Collateral. The powers conferred on the Administrative Agent
hereunder are solely to protect the Administrative Agent’s interest in the Collateral and shall not
impose any duty upon the Administrative Agent to exercise any such powers. The Administrative
Agent shall be accountable only for amounts that the Administrative Agent actually receives as a
result of the exercise of such powers, and neither the Administrative Agent nor any of the
Administrative Agent’s officers, directors, employees or agents shall be responsible to any Loan
Party for any act or failure to act hereunder, except for the Administrative Agent’s gross
negligence or willful misconduct.

     Section 6.3 Financing Statements

     Each Loan Party hereby authorizes the Administrative Agent to file, and if requested will
deliver to the Administrative Agent, all financing statements and other documents and take such
other actions as may from time to time be requested by the Administrative Agent in order to
maintain a first perfected security interest in and, if applicable, control of, the Collateral.
Any financing statement filed by the Administrative Agent may be filed in any filing office in any
UCC jurisdiction and may (i) indicate the Collateral (1) as all assets of each Loan Party or words
of similar effect, regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article 9 of the UCC or such jurisdiction, or (2) by any other description
which reasonably approximates the description contained in this Agreement, and (ii) contain any
other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office
acceptance of any financing statement or amendment, including (A) whether any Loan Party is an
organization, the type of organization and any organization identification number issued to each
Loan Party and (B) in the case of a financing statement filed as a fixture filing or indicating
Collateral as as-extracted collateral or timber to be cut, a sufficient description of real
property to which the Collateral relates. Each Loan Party also agrees to furnish any such
information to the Administrative Agent promptly upon request. Each Loan Party also ratifies its
authorization for the Administrative Agent to have filed in any UCC jurisdiction any initial
financing statements or amendments thereto if filed prior to the date hereof.

ARTICLE
VII Miscellaneous

     Section 7.1 Amendments in Writing

     None of the terms or provisions of this Agreement may be waived, amended, restated,
supplemented or otherwise modified without the written consent of the Administrative Agent and each
Loan Party.

     Section 7.2 Notices

     All communications under this Agreement shall be in writing and shall be sent by facsimile or
by a nationally recognized overnight delivery service (i) if to the Administrative Agent, at the
address set forth below the Administrative Agent’s signature to this Agreement, or at such other
address as may have been furnished in writing to Franklin Asset, by the Administrative Agent; and
(ii) if to Franklin Asset or any other Loan Party, at the address set forth below Franklin Asset’s
signature to this Agreement, or at such other address as may have been furnished in writing to the
Administrative Agent by Franklin Asset. Any notice so addressed and sent by telecopier shall be
deemed to be given when confirmed, and any notice sent by nationally recognized overnight delivery
service shall be deemed to be given the next day after the same is delivered to such carrier.

     Section 7.3 No Waiver by Course of Conduct; Cumulative Remedies

     The Administrative Agent shall not by any act (except by a written instrument pursuant to
Section 7.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the

22

 

Administrative Agent, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power or privilege. A
waiver by the Administrative Agent of any right or remedy hereunder on any one occasion shall not
be construed as a bar to any right or remedy that the Administrative Agent would otherwise have on
any future occasion. The rights and remedies herein provided are cumulative, may be exercised
singly or concurrently and are not exclusive of any other rights or remedies provided by Law.

     Section 7.4 Successors and Assigns

     This Agreement shall be binding upon the successors and assigns of each Loan Party and shall
inure to the benefit of the Administrative Agent and its respective successors and assigns;
provided, however, that no Loan Party may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the Administrative Agent.

     Section 7.5 Counterparts

     This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple counterparts and attached to a single counterpart so
that all signature pages are attached to the same document. Delivery of an executed counterpart by
telecopy shall be effective as delivery of a manually executed counterpart.

     Section 7.6 Severability

     Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     Section 7.7 Section Headings

     The Article and Section titles contained in this Agreement are, and shall be, without
substantive meaning or content of any kind whatsoever and are not part of the agreement of the
parties hereto.

     Section 7.8 Entire Agreement

     This Agreement together with the other Loan Documents represents the entire agreement of the
parties and supersedes all prior agreements and understandings relating to the subject matter
hereof.

     Section 7.9 Governing Law

     This Agreement and the rights and obligations of the parties hereto shall be governed by, and
construed and interpreted in accordance with, the law of the State of Ohio, without regard to its
conflict of law principles.

     Section 7.10 Additional Loan Parties

     Each of Franklin Asset, Tribeca and Franklin LLC hereby agrees and covenants that it will
cause each of its Subsidiaries that are not a signatory hereto on the date of this Agreement to
execute and deliver to the Administrative Agent a Joinder Agreement in form and substance
acceptable to the Administrative Agent and shall thereafter for all purposes be a party hereto and
have the same rights, benefits and obligations as a Loan Party party hereto on the date of this
Agreement.

23

 

     Section 7.11 Reinstatement

     Each Loan Party further agrees that, if any payment made by any Loan Party or other Person and
applied to the Secured Obligations is at any time annulled, avoided, set aside, rescinded,
invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or
repaid, or the proceeds of Collateral are required to be returned by the Administrative Agent or
any Lender to such Loan Party, its estate, trustee, receiver or any other party, including any Loan
Party, under any bankruptcy law, state or federal law, common law or equitable cause, then, to the
extent of such payment or repayment, any Lien or other Collateral securing such liability shall be
and remain in full force and effect, as fully as if such payment had never been made or, if prior
thereto the Lien granted hereby or other Collateral securing such liability hereunder shall have
been released or terminated by virtue of such cancellation or surrender, such Lien or other
Collateral shall be reinstated in full force and effect, and such prior cancellation or surrender
shall not diminish, release, discharge, impair or otherwise affect any Lien or other Collateral
securing the obligations of any Loan Party in respect of the amount of such payment.

     Section 7.12 Agent

     In acting under or by virtue of this Agreement, Administrative Agent shall be entitled to all
the rights, authority, privileges, and immunities provided in the Credit Agreement, all of which
provisions of said Credit Agreement are incorporated by reference herein with the same force and
effect as if set forth herein in their entirety.

     Section 7.13 Amendment and Restatement

     (a) On the date hereof, the Existing Security Agreements shall be amended and restated in
their entirety by this Agreement and the Credit Agreement, and the Existing Security Agreements
shall thereafter be of no further force and effect except (i) to secure the incurrence by each Loan
Party of the “Secured Obligations” under and as defined in the Existing Security Agreements
(whether or not such “Secured Obligations” are contingent as of the date hereof), (ii) to evidence
the representations and warranties made by any Loan Party prior to the date hereof and (iii) to
evidence any action or omission performed or required to be performed pursuant to any Existing
Security Agreement prior to the date hereof. This Agreement is not in any way intended to
constitute a novation of any obligation or liability of any Loan Party existing under the Existing
Security Agreements or evidence payment of all or any portion of any such obligation and liability.
Each security agreement and financing statement filed pursuant to the Existing Security Agreement
or any predecessor thereto shall remain in full force and effect in all respects as if such
“Secured Obligations” had been payable and effective originally as provided by this Agreement.

     (b) The terms and conditions of this Agreement and Administrative Agent’s, Lenders’, and any
other Secured Creditors’ rights and remedies under this Agreement and the other Credit Documents
shall apply to all of the “Secured Obligations” incurred under the Existing Security Agreement and
any promissory notes or other instruments issued thereunder.

     (c) Each Loan Party reaffirms the Liens granted in respect to the Collateral and pursuant to
any Loan Document executed and delivered in connection with this Agreement and the Existing
Security Agreement to Administrative Agent for the benefit of Secured Creditors, 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 Secured Obligations.

24

 

     (d) On and after the date hereof, (i) all references to any Existing Security 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 applicable Existing Security Agreement, as amended and
restated hereby, (ii) all references to any section (or subsection) of any Existing Security
Agreement in any Loan Document (but not herein) shall be amended to become, mutatis mutandis,
references to the corresponding provisions of this Agreement or the Credit Agreement, as the case
may be, and (iii) except as the context otherwise provides, on or after the date hereof, all
references to this Agreement herein (including for purposes of indemnification and reimbursement of
fees) shall be deemed to refer to the Existing Security Agreements, 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 each Loan Document remain in full force
and effect unless otherwise specifically amended hereby or any other Loan Document.

[Signature Pages Follow]

25

 

     In witness whereof, the undersigned has caused this Amended and Restated Security
Agreement to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	FRANKLIN CREDIT ASSET CORPORATION

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

	 	 	 	 	 
	 	Address:   	 Franklin Credit Asset Corporation

101 Hudson St., 25th Floor

Jersey City, New Jersey 07302

Fax: 201-604-4400

Attention: General Counsel

 	 

	 	 	 	 	 
	 	TRIBECA LENDING CORP.

 	 
	 	By:  	/s/ Alexander Gordon Jardin	 
	 	 	Name:  	Alexander Gordon Jardin 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	Address: Same as above

 	 
	 	Each Loan Party 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 Loan Party listed on

Schedule 1 attached hereto.

	 
	 
	 	Address: Same as above

 	 
	 	FRANKLIN ASSET, LLC

 	 
	 	By:  	/s/ Alexander Gordon Jardin 	 
	 	 	Name:  	Alexander Gordon Jardin 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	Address: Same as above

 	 
	 	 	 
	 	 	 
	 	 	 

Signature Page to Amended and Restated Security Agreement       
       

 

	 	 	 	 	 
	 	ACCEPTED AND AGREED

as of the date first above written:
 	 
	 	 	 
	 
	 	THE HUNTINGTON NATIONAL BANK,

as Administrative Agent

 	 
	 	By:  	/s/ Alan D. Seitz 	 
	 	 	Name:  	Alan D. Seitz 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	Address: 	 2361 Morse Road

NC3W67

Columbus, Ohio 43229

Attn: Special Assets

Fax: (614) 480-3795

 	 
	 	 	 
	 	 	 
	 	 	 
	 

Signature Page to Amended and Restated Security Agreement              

 

SCHEDULE 1

[Other Loan Parties]EX-10.9

Exhibit 10.9

AMENDED AND RESTATED PLEDGE AGREEMENT

     THIS AMENDED AND RESTATED PLEDGE AGREEMENT, dated as of March 31, 2009 (this
"Agreement”), is entered into by FRANKLIN CREDIT HOLDING CORPORATION, a Delaware corporation (the
"Grantor”), and is in favor of THE HUNTINGTON NATIONAL BANK, acting hereunder as contractual
representative pursuant to the Credit Agreement (as defined below) for Lenders (as defined below)
(“Huntington”, acting as such contractual representative and any successor or successors to
Huntington acting in such capacity, being referred to as “Administrative Agent”).

W i t n e s s e t h:

     Whereas, Franklin Credit Asset Corporation, Tribeca Lending Corp. and certain of
their Subsidiaries as borrowers (collectively, “Borrowers” and individually, a “Borrower”),
Administrative Agent, and the financial institutions party thereto as Lenders (Huntington, in its
individual capacity, and such other financial institutions being hereafter referred to collectively
as “Lenders” and individually as “Lender”), have entered into a certain Amended and Restated Credit
Agreement, dated March 31, 2009 (as amended, supplemented, modified or restated from time to time,
the “Credit Agreement”), pursuant to which Huntington and the other Lenders have agreed to make
and/or maintain advances and other financial accommodations to and for the benefit of the
Borrowers, upon the terms and subject to the conditions set forth in the Credit Agreement
(Administrative Agent and Lenders, together with affiliates of Lenders, being referred to
collectively as the “Secured Creditors” and individually as a “Secured Creditor”);

     Whereas, as of even date herewith, the Grantor has executed a certain Limited
Recourse Guaranty in connection with the Credit Agreement (the “Guaranty”) whereby the Grantor
guaranteed to Administrative Agent the prompt and complete payment and performance by Borrowers of
all Secured Obligations;

     Whereas, the Credit Agreement, each master credit and security agreement, flow
warehousing credit and security agreement, term loan and security agreement, warehousing credit and
security agreement, loan agreement, credit agreement, forbearance agreement, promissory note,
security agreement, certificate, letter of credit reimbursement agreement, pledge agreement,
control agreement, joinder agreement, counterpart signature page, assignment, guaranty agreement,
banking services agreement, hedging agreement, cash management agreement, consent agreement,
collateral agreement, amendment, modification agreement, instrument and financing statements and
other loan documents (as any of the same may be amended, restated, supplemented, modified or
replaced from time to time) executed or delivered from time to time to any Lender by any Borrower
or Loan Party, are collectively referred to as the “Credit Documents”);

     Whereas, pursuant to the respective Credit Documents, Lenders have agreed, subject to
certain conditions precedent, to make and/or maintain loans and other financial accommodations to
the Loan Parties from time to time;

     Whereas, the Secured Creditors have required as a condition, among others, of
extending credit to any Loan Party or of renewing, extending, or forbearing from demanding
immediate payment of extensions of credit to the Loan Parties, that the Grantor enter into this
Agreement; and

     Whereas, each Loan Party will benefit, directly or indirectly, from credit and other
financial accommodations extended by the Secured Creditors to the Loan Parties.

 

 

     Now, Therefore, in consideration of the promises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor hereby
agrees with the Secured Creditors as follows:

ARTICLE
I Defined Terms

     Section 1.1 Definitions

     (a) Terms used herein that are defined in the UCC have the meanings given to them in the UCC,
including the following terms (which are capitalized herein):

     “General Intangibles”; “Instruments”; “Investment Property”; “Proceeds”, “Security”; and
“Security Entitlements”.

     (b) The following terms shall have the following meanings:

     “Additional Pledged Collateral” means all shares of, partnership interests in (whether limited
or general), trust certificates of, and limited liability company interests in, all securities
convertible into, and warrants, options and other rights to purchase or otherwise acquire, stock of
or interests in, either (i) any Person that, after the date of this Agreement, as a result of any
occurrence, becomes a direct Subsidiary of the Grantor or (ii) any issuer of Pledged Stock, any
Partnership or any LLC that is acquired by the Grantor after the date hereof; all certificates or
other instruments representing any of the foregoing; all Security Entitlements of the Grantor in
respect of any of the foregoing; and all interest, cash, instruments and other property or Proceeds
from time to time received, receivable or otherwise distributed in respect of or in exchange for
any of the foregoing. Additional Pledged Collateral may be General Intangibles or Investment
Property.

     “Agreement” means this Agreement.

     “Banking Services” means each and any of the following bank services provided to any Loan
Party by any Lender or any of its affiliates: (a) commercial credit cards, (b) stored value cards
and (c) treasury management services (including, without limitation, controlled disbursement,
automated clearinghouse transactions, return items, overdrafts and interstate depository network
services).

     “Bankruptcy Code” means Title 11 of the United States Code (11 USC, § 101 et
seq), as amended from time to time, and any successor statute thereto, including (unless
the context requires otherwise) any rules or regulations promulgated thereunder.

     “Collateral” has the meaning specified in Section 2.1.

     “Contingent Obligations” means any agreement, undertaking or arrangement by which the Grantor
assumes, guaranties, endorses, agrees to provide funding, or otherwise becomes or is contingently
liable upon the obligation or liability of any other Loan Party.

     “Credit Documents” has the meaning specified above in the recitals.

     “Event of Default” has the meaning specified in the Credit Agreement.

     “FCMC Credit Agreement (Licensing)” means that certain Amended and Restated Credit Agreement
(Licensing), dated as of March, 31, 2009, among Franklin Credit Management Corporation, as
borrower, the financial institutions party thereto, as lenders, and The Huntington National Bank,
as administrative agent and issuing bank.

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     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board, the American Institute of Certified Public
Accountants and the Financial Accounting Standards Board as in effect from time to time in the
United States consistently applied.

     “Governmental Authority” means any nation or government, any federal, state, local or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative authority or functions of or pertaining to government, including any
authority or other quasi-governmental entity established to perform any of such functions.

     “Indebtedness” means, at any time, (i) all indebtedness, obligations or other liabilities
(other than accounts payable arising in the ordinary course of business payable on terms customary
in the trade) which in accordance with GAAP should be classified as liabilities on the balance
sheet of such Person, including without limitation, (A) for borrowed money or evidenced by debt
securities, debentures, acceptances, notes or other similar instruments, and any accrued interest,
fees and charges relating thereto, (B) under profit payment agreements or in respect of obligations
to redeem, repurchase or exchange any securities or to pay dividends in respect of any stock, (C)
with respect to letters of credit, bankers acceptances, interest rate swaps or other contracts,
currency agreement or other financial products, (D) to pay the deferred purchase price of property
or services, or (E) in respect of any capital leases; (ii) all indebtedness, obligations or other
liabilities secured by a lien on any property, whether or not such indebtedness, obligations or
liabilities are assumed by the owner of the same; and (iii) all Contingent Obligations.

     “Joinder Agreement” means a joinder agreement, in the form and substance acceptable to the
Administrative Agent, executed by the Administrative Agent and the relevant Subsidiary that Grantor
is required to cause to become a party hereto as a Loan Party.

     “Law” means any law (including common law), constitution, statute, treaty, convention,
regulation, rule, ordinance, order, injunction, writ, decree or award of any Governmental
Authority.

     “Lien” means any interest in an asset securing an obligation owed to, or a claim by, any
Person other than the owner of the asset, whether such interest shall be based on the common law,
statute, or contract, whether such interest shall be recorded or perfected, and whether such
interest shall be contingent upon the occurrence of some future event or events or the existence of
some future circumstance or circumstances, including the lien or security interest arising from any
mortgage, deed of trust, encumbrance, pledge, hypothecation, assignment (collateral or otherwise),
hypothec, deposit arrangement, security agreement, conditional sale, trust receipt, lease,
consignment, or bailment for security purposes, judgment, claim encumbrance or statutory trust and
also including reservations, exceptions, encroachments, easements, rights-of-way, covenants,
conditions, restrictions, leases, and other title exceptions and encumbrances affecting real
property.

     “LLC” means each limited liability company in which a Loan Party has an interest, including
those set forth on Schedule 2.

     “LLC Agreement” means each operating agreement with respect to an LLC, as each agreement has
heretofore been, and may hereafter be, amended, restated, supplemented or otherwise modified from
time to time.

     “Loan Documents” means the Credit Documents, any agreements or documents evidencing or
relating to the provision of any Banking Services by any Lender for the benefit of a Loan Party,
and any other agreement, document, or arrangement (whether now existing or hereafter arising) by
and among a Lender (or its affiliate) and one or more Loan Party.

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     “Loan Party” means Grantor, and any affiliate or Subsidiary of Grantor that is a signatory
hereto on the date of this Agreement, and any other Person who becomes a party to this Agreement
pursuant to a Joinder Agreement (in accordance with Section 7.10), and their respective successors
and assigns. The term “Loan Party” or “Loan Parties” as used herein shall mean and include the
Loan Parties collectively and also each individually, with all grants, representations, warranties,
and covenants of and by the Loan Parties, or any of them, herein contained to constitute joint and
several grants, representations, warranties, and covenants of and by the Loan Parties.

     “Partnership” means each partnership or joint venture in which a Loan Party has an interest,
including those set forth on Schedule 2.

     “Partnership Agreement” means each partnership or joint venture agreement governing a
Partnership, as each such agreement has heretofore been, and may hereafter be, amended, restated,
supplemented or otherwise modified.

     “Person” means any individual, corporation, firm, enterprise, partnership, trust, incorporated
or unincorporated association, joint venture, joint stock company, limited liability company or any
other entity of any kind or any government or political subdivision or any agency, department or
instrumentality thereof.

     “Pledged Collateral” means, collectively, the Pledged Stock, the Pledged Partnership
Interests, the Pledged LLC Interests, any other Investment Property of the Grantor, all
certificates or other instruments representing any of the foregoing and all Security Entitlements
of the Grantor in respect of any of the foregoing. Pledged Collateral may be General Intangibles
or Investment Property.

     “Pledged LLC Interests” means all right, title and interest of the Grantor as a member of any
LLC and all right, title and interest of the Grantor in, to and under any LLC Agreement to which it
is a party.

     “Pledged Partnership Interests” means all right, title and interest of the Grantor as a
limited or general partner in all Partnerships and all right, title and interest of the Grantor in,
to and under any Partnership Agreements to which it is a party.

     “Pledged Stock” means the shares of capital stock owned by the Grantor, including all shares
of capital stock listed on Schedule 2.

     “Rate Management Transaction” means any transaction (including an agreement with respect
thereto) now existing or hereafter entered into among Grantor, any Subsidiary thereof, any Lender
or any affiliate of a Lender, or any of its subsidiaries or affiliates or their successors, which
is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or
equity index swap, equity or equity index option, bond option, interest rate option, foreign
exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction,
currency swap transaction, cross-currency rate swap transaction, currency option or any other
similar transaction (including any option with respect to any of these transactions) or any
combination thereof, whether linked to one or more interest rates, foreign currencies, commodity
prices, equity prices or other financial measures.

     “Secured Obligations” means (a) any and all Indebtedness, obligations, and liabilities now
existing or hereafter arising of Grantor or any other Loan Party to one or more Lender (or any
affiliate) or arising under or in connection with or evidenced by (i) the Credit Documents, this
Agreement, or any other Loan Document, (ii) any other agreement relating to (A) letters of credit
or pursuant to any letter of credit agreement or application (if any), or pursuant to any agreement
or document relating to Banking Services, (B) any agreement in respect of any Rate Management
Transaction, (C) any agreement for any electronic transfers, treasury management, cash management
services and deposit and disbursement account liability, and (D) any agreement of guaranty, surety
or indemnity issued by such Person, (b) any and all Indebtedness, obligations, and liabilities, now
existing or hereafter arising, whether absolute or contingent and however and whenever created,
arising, evidenced or

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acquired, of Grantor or any other Loan Party owed to any Lender (or any affiliate of a
Lender), (and in each instance in clauses (a)and (b) above, whether arising before or after the
filing of a petition in bankruptcy and including all interest accrued after any such petition
date), due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced,
held or acquired, and (c) any and all reasonable expenses and charges, legal or otherwise, suffered
or incurred by a Lender or any affiliate of a Lender in collecting or enforcing any such
Indebtedness, obligation, and liability or in realizing on or protecting or preserving any security
therefore, including, without limitation, the Lien and security interest granted by any Credit
Document.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Servicing Agreement” means that certain Servicing Agreement dated as of March 31, 2009, by
and between Franklin Mortgage Asset Trust 2009-A, as owner, and Franklin Credit Management
Corporation, as servicer, as amended, supplemented, modified or restated from time to time.

     “Subsidiary” of a Person means any corporation, partnership, limited liability company or
other entity in which such Person directly or indirectly owns or controls the securities or other
ownership interests having ordinary voting power to elect a majority of the board of directors, or
appoint managers or other persons performing similar functions.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the State of Ohio;
provided, however, that, in the event that, by reason of mandatory provisions of Law, any of the
attachment, perfection or priority of the Administrative Agent’s security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the
State of Ohio, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or
priority and for purposes of definitions related to such provisions.

     Section 1.2 Certain Other Terms

     (a) In this Agreement, in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to” and “until” each mean
“to but excluding” and the word “through” means “to and including.”

     (b) The terms “herein,” “hereof,” “hereto” and “hereunder” and similar terms refer to this
Agreement as a whole and not to any particular Article, Section, subsection or clause in this
Agreement.

     (c) References herein to a Schedule, Article, Section, subsection or clause refer to the
appropriate Schedule to, or Article, Section, subsection or clause in this Agreement.

     (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

     (e) Any reference in this Agreement to a Loan Document shall include all appendices, exhibits
and schedules thereto, and, unless specifically stated otherwise all amendments, restatements,
supplements or other modifications thereto, and as the same may be in effect at any time such
reference becomes operative.

     (f) Each of the terms “Lender”, “Lenders”, “Secured Creditor”, and “Secured Creditors”
includes its or their respective successors or assigns.

     (g) References in this Agreement to any statute shall be to such statute as amended or
modified and in effect from time to time.

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ARTICLE II Grant of Security Interest

     Section 2.1 Collateral

     For the purposes of this Agreement, all of the following property now owned or at any time
hereafter acquired by the Grantor or in which the Grantor now has or at any time in the future may
acquire any right, title or interests is collectively referred to as the “Collateral”: all Pledged
Collateral and related Proceeds.

     Section 2.2 Grant of Security Interest in Collateral

     The Grantor, as collateral security for the full, prompt and complete payment and performance
when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations,
hereby collaterally assigns, mortgages, pledges and hypothecates to Administrative Agent (for the
benefit of the Secured Creditors), and grants (whether under the UCC or otherwise) to
Administrative Agent (for the benefit of the Secured Creditors), a lien on and security interest
in, and a collateral assignment of, all of its right, title and interest in, to and under the
Collateral. The Grantor hereby acknowledges and agrees that the Grantor will directly and
indirectly by Lenders entering into the Credit Agreement.

ARTICLE III Representations and Warranties

     To induce the Administrative Agent and Lenders to enter into or maintain the Credit Documents,
the Grantor hereby represents and warrants each of the following to each Secured Creditor:

     Section 3.1 Title; No Other Liens

     Except for the Liens granted to the Administrative Agent pursuant to this Agreement, the
Grantor is the record and beneficial owner of the Pledged Collateral pledged by it hereunder
constituting Instruments or certificated securities, and has rights in or the power to transfer
each other item of Collateral in which a Lien is granted by it hereunder, free and clear of any
Lien.

     Section 3.2 Perfection and Priority

     The security interest granted pursuant to this Agreement shall constitute a valid and
continuing perfected security interest in favor of the Administrative Agent in the Collateral for
which perfection is governed by the UCC upon (i) the completion of the filings and other actions
specified on Schedule 1 which, in the case of all filings and other documents referred to on such
schedule, have been delivered to the Administrative Agent in completed and duly executed form) and
(ii) the delivery to the Administrative Agent of all Collateral consisting of Instruments and
certificated securities, in each case properly endorsed for transfer to the Administrative Agent or
in blank. Such security interest shall be prior to all other Liens on the Collateral.

     Section 3.3 Name; Jurisdiction of Organization; Chief Executive Office

     Except as set forth on Schedule 1, within the five-year period preceding the date hereof, the
Grantor has not had, or operated in any jurisdiction, under any trade name, fictitious name or
other name other than its legal name, and the Grantor’s jurisdiction of organization,
organizational identification number, if any, and the location of the Grantor’s chief executive
office or sole place of business is specified on Schedule 1.

     Section 3.4 Pledged Collateral

     (a) The Pledged Stock, Pledged Partnership Interests, and Pledged LLC Interests pledged
hereunder by the Grantor are listed on Schedule 2 and constitute that percentage of the issued and
outstanding equity of all classes of each issuer thereof as set forth on Schedule 2.

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     (b) All of the Pledged Stock, Pledged Partnership Interests, and Pledged LLC Interests have
been duly and validly issued and are fully paid and nonassessable.

     (c) All Pledged Collateral and, if applicable, any Additional Pledged Collateral, consisting
of certificated securities or Instruments has been delivered to the Administrative Agent in
accordance with Section 4.4(a).

     (d) There is no Pledged Collateral other than that represented by certificated securities or
Instruments in the possession of the Administrative Agent.

ARTICLE IV Covenants

     The Grantor agrees with the Secured Creditors to the following, as long as any Secured
Obligation remains outstanding or any Secured Creditor has any obligation to extend credit to any
Loan Party under any Loan Document, and, in each case, unless the Administrative Agent otherwise
consents in writing:

     Section 4.1 Generally

     The Grantor shall (a) except for the security interest created by this Agreement, not create
or suffer to exist any Lien upon or with respect to any Collateral; (b) not use or permit any
Collateral to be used unlawfully or in violation of any provision of this Agreement, any other Loan
Document, any applicable Law or any policy of insurance covering the Collateral; (c) not sell,
transfer, pledge or assign (by operation of law or otherwise) any Collateral or any other stock of
Franklin Credit Management Corporation; (d) not enter into any agreement or undertaking restricting
the right or ability of the Administrative Agent to sell, assign or transfer any Collateral; (e)
promptly notify the Administrative Agent of its entry into any agreement or assumption of
undertaking that restricts the ability to sell, assign or transfer any Collateral; (f) not cause or
permit Franklin Credit Management Corporation or any other of the Grantor’s Subsidiaries to
directly or indirectly create, incur, assume or otherwise become or remain liable with respect to
any Indebtedness, except for Indebtedness to any Lenders; (g) not allow or permit Franklin Credit
Management Corporation from maintaining at any time a Net Worth (as defined in the FCMC Credit
Agreement (Licensing)) required in the Credit Agreement; (h) exclusively use Franklin Credit
Management Corporation for the Grantor’s loan servicing requirements or needs; (i) not agree, or
permit Franklin Credit Management Corporation or any of its Subsidiaries to agree, to create or
otherwise become effective any consensual encumbrance or restriction of any kind on the ability of
Franklin Credit Management Corporation or any Subsidiary to pay, directly or indirectly, dividends
or make any other distributions in respect of its capital stock to the extent Franklin Credit
Management Corporation delivers to the Administrative Agent and the Lenders the appropriate
percentage of Franklin Credit Management Corporation’s net income, dividends and distributions as
required and determined under the Credit Agreement from time to time; (j) not issue any additional
stock, membership interests or other equity interests (including, without limitation, any option
rights) in Franklin Credit Management Corporation or any other Subsidiary of the Grantor; and (k)
cause Franklin Credit Management Corporation to not enter into any servicing agreements (other than
the Servicing Agreement), otherwise agree to service any assets other than pursuant to the
Servicing Agreement, or provide any other business services not currently in practice as of the
date hereof, which are reasonably likely to have a material adverse impact on the value of the
stock of Franklin Credit Management Corporation, or the business or financial performance of
Franklin Credit Management Corporation, without the prior written consent of the Administrative
Agent, which consent shall not be unreasonably withheld.

     Section 4.2 Maintenance of Perfected Security Interest; Further Documentation

     (a) The Grantor shall maintain the security interest created by this Agreement as a perfected
security interest having at least the priority described in Section 3.2 and shall defend such
security interest against the claims and demands of all Persons.

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     (b) The Grantor 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 reasonably request, all in reasonable detail.

     (c) At any time and from time to time, upon the written request of the Administrative Agent,
and at the sole expense of the Grantor, the Grantor shall promptly and duly execute and deliver,
and have recorded, such further instruments and documents and take such further action as the
Administrative Agent may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted, including the filing of any
financing or continuation statement under the UCC (or other similar laws) in effect in any
jurisdiction with respect to the security interest created hereby.

     Section 4.3 Changes in Locations, Name, Etc.

     (a) Except upon fifteen (15) days’ prior written notice to the Administrative Agent and
delivery to the Administrative Agent of all additional documents reasonably requested by the
Administrative Agent to maintain the validity, perfection and priority of the security interests
provided for herein, the Grantor shall not do any of the following:

     (i) change its jurisdiction of organization or the location of its chief executive
office or sole place of business from that referred to in Section 3.3; or

     (ii) change its name, identity or corporate structure to such an extent that any
financing statement filed in connection with this Agreement would become seriously
misleading.

     (b) The Grantor shall keep and maintain at its own cost and expense satisfactory and complete
records of the Collateral, including a record of all payments received and all credits granted with
respect to the Collateral and all other dealings with the Collateral.

     Section 4.4 Pledged Collateral

     (a) The Grantor shall deliver to the Administrative Agent all certificates and Instruments
representing or evidencing any Pledged Collateral (including Additional Pledged Collateral),
whether now existing or hereafter acquired, in suitable form for transfer by delivery or, as
applicable, accompanied by the Grantor’s endorsement, where necessary, or duly executed instruments
of transfer or assignment in blank, all in form and substance satisfactory to the Administrative
Agent, together, in respect of any Additional Pledged Collateral, with a Pledge Amendment, duly
executed by the Grantor, in substantially form substance acceptable to the Administrative Agent or
such other documentation acceptable to the Administrative Agent. The Grantor authorizes the
Administrative Agent to attach each Pledge Amendment to this Agreement. From and after the
occurrence and during the continuance of an Event of Default, the Administrative Agent shall have
the right, at any time in its discretion and without notice to the Grantor or any other Loan Party,
to transfer to or to register in its name or in the name of its nominees any Pledged Collateral.
The Administrative Agent shall have the right at any time to exchange any certificate or instrument
representing or evidencing any Pledged Collateral for certificates or instruments of smaller or
larger denominations.

     (b) Except as provided in Article V, the Grantor shall be entitled to receive all cash
dividends paid in respect of the Pledged Collateral (other than liquidating or similar dividends)
with respect to the Pledged Collateral. Any sums paid upon or in respect of any Pledged Collateral
upon the liquidation or dissolution of any issuer of any Pledged Collateral, any distribution of
capital made on or in respect of any Pledged Collateral or any property distributed upon or with
respect to any Pledged Collateral pursuant to the recapitalization or reclassification of the
capital of any issuer of Pledged Collateral or pursuant to the reorganization thereof shall, unless
otherwise subject to a perfected security interest in favor of the Administrative Agent, be
delivered to the Administrative Agent to be held by it hereunder as additional collateral security
for the Secured Obligations. If any sum of money or property so paid or distributed in respect of
any Pledged Collateral shall be received the

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Grantor or any other Loan Party, the Grantor or such other Loan Party shall, until such money
or property is paid or delivered to the Administrative Agent, hold such money or property in trust
for the Administrative Agent, segregated from other funds of the Grantor or such other Loan Party,
as additional security for the Secured Obligations.

     (c) Except as provided in Article V, the Grantor shall be entitled to exercise all voting,
consent and corporate rights with respect to the Pledged Collateral; provided, however, that no
vote shall be cast, consent given or right exercised or other action taken by the Grantor that
would impair the Collateral, be inconsistent with or result in any violation of any provision of
this Agreement or any other Loan Document or, without prior notice to the Administrative Agent,
enable or permit any issuer of Pledged Collateral to issue any stock or other equity securities of
any nature or to issue any other securities convertible into or granting the right to purchase or
exchange for any stock or other equity securities of any nature of any issuer of Pledged
Collateral.

     (d) The Grantor shall not grant control over any Investment Property to any Person other than
the Administrative Agent.

     (e) The Grantor shall not agree to any amendment of an LLC Agreement or Partnership Agreement
that in any way adversely affects the perfection of the security interest of the Administrative
Agent in the Pledged Partnership Interests or Pledged LLC Interests pledged by the Grantor
hereunder, including any amendment electing to treat the membership interest or partnership
interest of the Grantor as a security under Article 8 of the UCC.

ARTICLE
V Remedial Provisions

     Section 5.1 Code and Other Remedies

     During the continuance of an Event of Default, the Administrative Agent may exercise, in
addition to all other rights and remedies granted to the Administrative Agent in this Agreement and
in any other instrument or agreement securing, evidencing or relating to the Secured Obligations,
all rights and remedies of a secured party under the UCC or any other applicable Law. Without
limiting the generality of the foregoing, the Administrative Agent, without demand of performance
or other demand, presentment, protest, advertisement or notice of any kind (except any notice
required by Law referred to below) to or upon any Loan Party or any other Person (all and each of
which demands, defenses, advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon any Collateral, and may forthwith sell,
lease, assign, give option or options to purchase, or otherwise dispose of and deliver any
Collateral (or contract to do any of the foregoing), in one or more parcels at public or private
sale or sales, at any exchange, broker’s board or office of the Administrative Agent or elsewhere
upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk. The Administrative
Agent shall have the right upon any such public sale or sales, and, to the extent permitted by Law,
upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold,
free of any right or equity of redemption in the Grantor, which right or equity is hereby waived
and released. The Grantor further agrees, at the Administrative Agent’s request, to assemble the
Collateral and make it available to the Administrative Agent at places that the Administrative
Agent shall reasonably select, whether at the Grantor’s premises or elsewhere. The Administrative
Agent shall apply the net proceeds of any action taken by it pursuant to this Section 5.1, after
deducting all reasonable costs and expenses of every kind incurred in connection therewith or
incidental to the care or safekeeping of any Collateral or in any way relating to the Collateral or
the rights of the Administrative Agent hereunder, including reasonable attorneys’ fees and
disbursements, to the payment in whole or in part of the Secured Obligations, in such order as the
Loan Documents shall prescribe (or if no such order is prescribed therein, then in such order as
the Administrative Agent may elect), and only after such application and after the payment by the
Administrative Agent of any other amount required by any provision of Law, need the Administrative
Agent account for the surplus, if any, to the Grantor. To the extent permitted by applicable Law,
the Grantor waives all claims, damages and demands it may acquire against the Administrative Agent
arising out of the exercise by them of any rights hereunder. If

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any notice of a proposed sale or other disposition of Collateral shall be required by Law,
such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale
or other disposition. The Grantor waives any claims or other rights which the Grantor might now
have or hereafter acquire against any Borrower or any other Person that is primarily or
contingently liable on the obligations that arise from the existence or performance of the
Grantor’s obligations under this Agreement, including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, indemnification, or any right to participate
in any claim or remedy of any Secured Creditor against any Borrower or any collateral security
therefore which any Secured Creditor now has or hereafter acquires; whether such claim, remedy or
right arises in equity, under contract or statute, at common law, or otherwise. The waivers
contained in this paragraph inure only to the benefit of each Secured Creditor, and their
respective successors and assigns, and not to any other parties.

     Section 5.2 Pledged Collateral

     (a) During the continuance of an Event of Default, upon notice by the Administrative Agent to
the Grantor, (i) the Administrative Agent shall have the right to receive any Proceeds of the
Pledged Collateral and make application thereof to the Secured Obligations in the order set forth
in the Loan Documents (or if no such order is set forth therein, then in such order as the
Administrative Agent may elect) and (ii) the Administrative Agent or its nominee may exercise (A)
any voting, consent, corporate and other right pertaining to the Pledged Collateral at any meeting
of shareholders, partners or members, as the case may be, of the relevant issuer or issuers of
Pledged Collateral or otherwise and (B) any right of conversion, exchange and subscription and any
other right, privilege or option pertaining to the Pledged Collateral as if it were the absolute
owner thereof (including the right to exchange at its discretion any of the Pledged Collateral upon
the merger, consolidation, reorganization, recapitalization or other fundamental change in the
corporate structure of any issuer of Pledged Collateral, the right to deposit and deliver any
Pledged Collateral with any committee, depositary, transfer agent, registrar or other designated
agency upon such terms and conditions as the Administrative Agent may determine), all without
liability except to account for property actually received by it; provided, however, that the
Administrative Agent shall have no duty to any the Grantor or any other Loan Party to exercise any
such right, privilege or option and shall not be responsible for any failure to do so or delay in
so doing.

     (b) In order to permit the Administrative Agent to exercise the voting and other consensual
rights that it may be entitled to exercise pursuant hereto and to receive all dividends and other
distributions that it may be entitled to receive hereunder, (i) the Grantor shall, promptly execute
and deliver (or cause to be executed and delivered) to the Administrative Agent all such proxies,
dividend payment orders and other instruments as the Administrative Agent may from time to time
reasonably request and (ii) without limiting the effect of clause (i) above, the Grantor hereby
grants to the Administrative Agent an irrevocable proxy to vote all or any part of the Pledged
Collateral and to exercise all other rights, powers, privileges and remedies to which a holder of
the Pledged Collateral would be entitled (including giving or withholding written consents of
shareholders, partners or members, as the case may be, calling special meetings of shareholders,
partners or members, as the case may be, and voting at such meetings), which proxy shall be
effective, automatically and without the necessity of any action (including any transfer of any
Pledged Collateral on the record books of the issuer thereof) by any other Person (including the
issuer of such Pledged Collateral or any officer or agent thereof) during the continuance of an
Event of Default and which proxy shall only terminate upon the payment in full of the Secured
Obligations.

     (c) The Grantor hereby expressly authorizes and instructs each issuer of any Pledged
Collateral pledged hereunder by the Grantor to (i) comply with any instruction received by it from
the Administrative Agent in writing that (A) states that an Event of Default has occurred and is
continuing and (B) is otherwise in accordance with the terms of this Agreement, without any other
or further instructions from the Grantor, and the Grantor agrees that such issuer shall be fully
protected in so complying and (ii) unless otherwise expressly permitted hereby, pay any dividend
or other payment with respect to the Pledged Collateral directly to the Administrative Agent.

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     Section 5.3 Proceeds to be Turned Over To the Administrative Agent

     Except as set forth in the Credit Agreement, all Proceeds received by the Administrative Agent
hereunder during the continuance of an Event of Default shall be held by the Administrative Agent.
All Proceeds while held by the Administrative Agent (or by the Grantor in trust for the
Administrative Agent) shall continue to be held as collateral security for the Secured Obligations
and shall not constitute payment thereof until applied to the payment of the Secured Obligations.

     Section 5.4 Sale of Pledged Collateral

     (a) The Grantor recognizes that the Administrative Agent may be unable to effect a public sale
of any Pledged Collateral by reason of certain prohibitions contained in the Securities Act and
applicable state securities laws or otherwise or may determine that a public sale is impracticable
or not commercially reasonable and, accordingly, may resort to one or more private sales thereof to
a restricted group of purchasers that shall be obliged to agree, among other things, to acquire
such securities for their own account for investment and not with a view to the distribution or
resale thereof. The Grantor acknowledges and agrees that any such private sale may result in
prices and other terms less favorable than if such sale were a public sale and, notwithstanding
such circumstances, agrees that any such private sale shall be deemed to have been made in a
commercially reasonable manner. The Administrative Agent shall be under no obligation to delay a
sale of any Pledged Collateral for the period of time necessary to permit the issuer thereof to
register such securities for public sale under the Securities Act, or under applicable state
securities laws, even if such issuer would agree to do so.

     (b) The Grantor agrees to use its best efforts to do or cause to be done all such other acts
as may be necessary to make such sale or sales of all or any portion of the Pledged Collateral
pursuant to this Section 5.4 valid and binding and in compliance with all other applicable Law.
The Grantor further agrees that a breach of any covenant contained in this Section will cause
irreparable injury to the Administrative Agent, that the Administrative Agent has no adequate
remedy at law in respect of such breach and, as a consequence, that each and every covenant
contained in this Section shall be specifically enforceable against the Grantor, and the Grantor
hereby waives and agrees not to assert any defense against an action for specific performance of
such covenants except for a defense that no Event of Default has occurred under any Loan Document.

     (c) The Administrative Agent agrees from time to time to release portions of the “Pledged
Interests in FCMC” (as defined in the Credit Agreement) in accordance with the terms and conditions
of Section 10.22 of the Credit Agreement.

ARTICLE VI The Administrative Agent

     Section 6.1 The Administrative Agent’s Appointment as Attorney-in-Fact

     (a) The Grantor hereby irrevocably constitutes and appoints the Administrative Agent 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 the Grantor and in the name of
the Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to
take any appropriate action and to execute any document or instrument that may be necessary or
desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the
foregoing, the Grantor hereby gives the Administrative Agent the power and right, on behalf of the
Grantor, without notice to or assent by the Grantor, to do any of the following:

     (i) in the name of the Grantor or its own name, or otherwise, take possession of and
indorse and collect any check, draft, note, acceptance or other instrument for the payment
of moneys due under any Account or General Intangible or with respect to any other
Collateral and file any claim or take any other action or proceeding in any court of law or
equity or otherwise deemed appropriate by

11

 

the Administrative Agent for the purpose of collecting any such moneys due under any
Account or General Intangible or with respect to any other Collateral whenever payable;

     (ii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repair or pay or discharge any insurance called for by the terms of
this Agreement (including all or any part of the premiums therefore and the costs thereof);

     (iii) execute, in connection with any sale provided for in Section 5.1 or Section 5.4,
any endorsement, assignment or other instrument of conveyance or transfer with respect to
the Collateral; or

     (iv) (A) direct any party liable for any payment under any Collateral to make payment
of any moneys due or to become due thereunder directly to the Administrative Agent or as the
Administrative Agent shall direct, (B) ask or demand for, collect, and receive payment of
and receipt for, any moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral, (C) commence and prosecute any suit, action or
proceeding at law or in equity in any court of competent jurisdiction to collect any
Collateral and to enforce any other right in respect of any Collateral, (D) defend any suit,
action or proceeding brought against the Grantor with respect to any Collateral, (E) settle,
compromise or adjust any such suit, action or proceeding and, in connection therewith, give
such discharges or releases as the Administrative Agent may deem appropriate, and (F)
generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal
with any Collateral as fully and completely as though the Administrative Agent was the
absolute owner thereof for all purposes, and do, at the Administrative Agent’s option the
Grantor’s expense, at any time, or from time to time, all acts and things that the
Administrative Agent deems necessary to protect, preserve or realize upon the Collateral and
the Administrative Agent’s security interests therein and to effect the intent of this
Agreement, all as fully and effectively as the Grantor might do.

     (b) If the Grantor fails to perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

     (c) The expenses of the Administrative Agent incurred in connection with actions undertaken as
provided in this Section 6.1, together with interest thereon at a rate per annum equal to the
highest rate per annum at which interest would then be payable on any past due amount under any
Credit Document from the date of payment by the Administrative Agent to the date reimbursed by the
Grantor, shall be payable by the Grantor to the Administrative Agent on demand.

     (d) The Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.

     Section 6.2 Duty of the Administrative Agent

     The Administrative Agent’s sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession shall be to deal with it in the same manner as the
Administrative Agent deals with similar property for its own account. Neither the Administrative
Agent, nor any of its respective officers, directors, employees or agents shall be liable for
failure to demand, collect or realize upon any Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the request of the Grantor
or any other Person or to take any other action whatsoever with regard to any Collateral. The
powers conferred on the Administrative Agent hereunder are solely to protect the Administrative
Agent’s interest in the Collateral and shall not impose any duty upon the Administrative Agent to
exercise any such powers. The Administrative Agent shall be accountable only for amounts that the
Administrative Agent actually receives as a result of the exercise of such powers, and neither the
Administrative Agent nor any of the Administrative Agent’s officers, directors, employees or agents
shall be responsible to the Grantor or any other

12

 

Loan Party for any act or failure to act hereunder, except for the Administrative Agent’s
gross negligence or willful misconduct.

     Section 6.3 Financing Statements

     The Grantor hereby authorizes the Administrative Agent to file, and if requested will deliver
to the Administrative Agent, all financing statements and other documents and take such other
actions as may from time to time be requested by the Administrative Agent in order to maintain a
first perfected security interest in and, if applicable, control of, the Collateral. Any financing
statement filed by the Administrative Agent may be filed in any filing office in any UCC
jurisdiction and may (i) indicate the Collateral (1) described the Collateral in any manner which
reasonably approximates the description of the Collateral contained in this Agreement, and (ii)
contain any other information required by part 5 of Article 9 of the UCC for the sufficiency or
filing office acceptance of any financing statement or amendment, including whether the Grantor is
an organization, the type of organization and any organization identification number issued to the
Grantor. The Grantor also agrees to furnish any such information to the Administrative Agent
promptly upon request. The Grantor also ratifies its authorization for the Administrative Agent to
have filed in any UCC jurisdiction any initial financing statements or amendments thereto if filed
prior to the date hereof.

ARTICLE VII Miscellaneous

     Section 7.1 Amendments in Writing

     None of the terms or provisions of this Agreement may be waived, amended, restated,
supplemented or otherwise modified without the written consent of the Administrative Agent and the
Grantor.

     Section 7.2 Notices

     All communications under this Agreement shall be in writing and shall be sent by facsimile or
by a nationally recognized overnight delivery service (i) if to the Administrative Agent, at the
address set forth below the Administrative Agent’s signature to this Agreement, or at such other
address as may have been furnished in writing to Grantor, by the Administrative Agent; and (ii) if
to Grantor, at the address set forth below Grantor’s signature to this Agreement, or at such other
address as may have been furnished in writing to the Administrative Agent by Grantor. Any notice
so addressed and sent by telecopier shall be deemed to be given when confirmed, and any notice sent
by nationally recognized overnight delivery service shall be deemed to be given the next day after
the same is delivered to such carrier.

     Section 7.3 No Waiver by Course of Conduct; Cumulative Remedies

     The Administrative Agent shall not by any act (except by a written instrument pursuant to
Section 7.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by the Administrative Agent of any right or remedy hereunder on any
one occasion shall not be construed as a bar to any right or remedy that the Administrative Agent
would otherwise have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by Law.

     Section 7.4 Successors and Assigns

     This Agreement shall be binding upon the successors and assigns of the Grantor and shall inure
to the benefit of the Administrative Agent and its respective successors and assigns; provided,
however, that the

13

 

Grantor may not assign, transfer or delegate any of its rights or obligations under this
Agreement without the prior written consent of the Administrative Agent.

     Section 7.5 Counterparts

     This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple counterparts and attached to a single counterpart so
that all signature pages are attached to the same document. Delivery of an executed counterpart by
telecopy shall be effective as delivery of a manually executed counterpart.

     Section 7.6 Severability

     Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     Section 7.7 Section Headings

     The Article and Section titles contained in this Agreement are, and shall be, without
substantive meaning or content of any kind whatsoever and are not part of the agreement of the
parties hereto.

     Section 7.8 Entire Agreement

     This Agreement together with the other Loan Documents represents the entire agreement of the
parties and supersedes all prior agreements and understandings relating to the subject matter
hereof.

     Section 7.9 Governing Law

     This Agreement and the rights and obligations of the parties hereto shall be governed by, and
construed and interpreted in accordance with, the law of the State of Ohio, without regard to its
conflict of law principles.

     Section 7.10 Reinstatement

     The Grantor further agrees that, if any payment made by the Grantor or other Person and
applied to the Secured Obligations is at any time annulled, avoided, set aside, rescinded,
invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or
repaid, or the proceeds of Collateral are required to be returned by the Administrative Agent or
any Lender to such Loan Party, its estate, trustee, receiver or any other party, including any Loan
Party, under any bankruptcy law, state or federal law, common law or equitable cause, then, to the
extent of such payment or repayment, any Lien or other Collateral securing such liability shall be
and remain in full force and effect, as fully as if such payment had never been made or, if prior
thereto the Lien granted hereby or other Collateral securing such liability hereunder shall have
been released or terminated by virtue of such cancellation or surrender, such Lien or other
Collateral shall be reinstated in full force and effect, and such prior cancellation or surrender
shall not diminish, release, discharge, impair or otherwise affect any Lien or other Collateral
securing the obligations of any Loan Party in respect of the amount of such payment.

     Section 7.11 Agent

     In acting under or by virtue of this Agreement, Administrative Agent shall be entitled to all
the rights, authority, privileges, and immunities provided in the Credit Agreement, all of which
provisions of said Credit

14

 

Agreement are incorporated by reference herein with the same force and effect as if set forth
herein in their entirety.

     Section 7.12 Amendment And Restatement.

     This Agreement shall (i) amend and restate one or more existing Credit Documents and (ii) not
constitute a novation of the obligations and liabilities existing under such existing Credit
Document(s) or evidence payment of all or any of such obligations and liabilities secured thereby.

[Signature Page Follows]

15

 

     In witness whereof, the undersigned has caused this Pledge Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	FRANKLIN CREDIT HOLDING CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/ Thomas J. Axon	 	 
	 

	 	 
	 	 
	 	 	Name: Thomas J. Axon	 	 
	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	101 Hudson St., 25th Floor	 	 
	 

	 	 	 	Jersey City, NJ 07302

Fax Number: (201) 604-4400

Attn: General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Kramer Levin Naftalis & Frankel LLP	 	 
	 	 	1177 Avenue of the Americas	 	 
	 	 	New York, NY 10036	 	 
	 	 	Attn: J. Michael Mayerfeld	 	 
	 	 	Fax: (212) 715-8346	 	 

ACCEPTED AND AGREED

as of the date first above written:

THE HUNTINGTON NATIONAL BANK,

as Administrative Agent

	 	 	 	 	 
	By: /s/ Alan D. Seitz
	 	 
	 

	 	 
	       Name: Alan D. Seitz	 	 
	       Title: Senior Vice President	 	 
	 
	 	 	 	 
	Address:

	 	The Huntington National Bank

2361 Morse Road (NC3W67)

Columbus, OH 43229

Attn: Special Assets

Fax: (614) 480-3795	 	 

Signature Page to Amended and Restated Pledge Agreement

 

 

SCHEDULE 1

(Name; Jurisdiction of Organization; Chief Executive Office)

	•	 	Grantor’s organizational identification number: 4581520

	•	 	Grantor’s chief executive office: 101 Hudson St., 25th Floor, Jersey City,
N.J. 07302

	•	 	Grantor is a corporation organized under the laws of Delaware.

(Filings)

	•	 	Franklin Credit Holding Corporation — Delaware Secretary of State

 

 

SCHEDULE 2

(Pledged Collateral)

	•	 	100% of issued and outstanding equity of all classes of stock and membership interests
of subsidiaries of Franklin Credit Holding Corporation, including but not limited to,
Franklin Credit Asset Corporation, Tribeca Lending Corp. and Franklin Credit Loan
Servicing, LLC, but excluding Franklin Credit Management Corporation.

	•	 	70% of issued and outstanding equity of all classes of stock and membership interests
of the following subsidiary of Franklin Credit Holding Corporation (the “FCMC Pledged
Stock”): Franklin Credit Management Corporation; provided, however, that portions of the
FCMC Pledged Stock may be released from time to time in accordance with the terms and
conditions of Section 5.4(c) of the Pledge Agreement and Section 10.22 of the Credit
Agreement.

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