Document:

Exhibit 10.1

Execution Copy

AMENDMENT NO. 10 AND CONSENT TO REVOLVING CREDIT AGREEMENT

AMENDMENT AND CONSENT
(this “Amendment”), dated as of August 22, 2007, among FIRSTCITY
FINANCIAL CORPORATION, a Delaware corporation (the “Borrower”), the
financial institutions which are parties to the Agreement hereinafter referred
to (each a “Lender” and collectively, the “Lenders”), and BANK OF
SCOTLAND, as agent for the Lenders under such Agreement (in such capacity, the “Agent”),
to the Revolving Credit Agreement, dated as of November 12, 2004, among the
Borrower, the Lenders and the Agent (the “Agreement”).

W  I  T
N  E  S  S  E  T  H:

WHEREAS, the Borrower has
requested that certain amendments set forth herein be made to the Agreement;

WHEREAS, subject to the
terms and conditions contained below, the Agent and the Lenders are willing to
so amend the Agreement;

NOW, THEREFORE, it is
agreed:

1.  Definitions.  All terms used herein which are defined in
the Agreement (including, to the extent any such terms are to be added or amended
by this Amendment, as if such terms were already added or amended by this
Amendment, unless the context shall otherwise indicate) shall have the same
meanings when used herein unless otherwise defined herein.  All references to Sections in this Amendment
shall be deemed references to Sections in the Agreement unless otherwise
specified.

2.  Effect of
Amendment.  As used in the Agreement
(including all Exhibits thereto), the Notes and the other Loan Documents and
all other instruments and documents executed in connection with any of the
foregoing, on and subsequent to the
Amendment Closing Date (as hereinafter defined), any reference to the
Agreement shall mean the Agreement as amended hereby.

3.  Amendments.  The Agreement is hereby amended as follows:

(a)        Annex I.  Annex I to the Agreement is amended as
follows:

(i)         by inserting the
following new definitions therein in appropriate alphabetical order therein:

“Crestone
Portfolio Entity” shall mean FC Crestone 07 Corp. and any other entity
organized by FirstCity Denver Investment Corp, for the purpose of originating
or acquiring Assets.

“Crestone Facility” shall mean a $20 million line of credit to
be provided by FirstCity Denver Investment Corp. to FC Crestone 07 Corp. or
other Crestone Portfolio Entities to be used exclusively for the acquisition
and origination of Assets and payment of expenses related to those Assets which
is to be secured by a first priority lien on all

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assets of the Crestone Portfolio Entities and a $2 million line of credit to be provided
by FirstCity Denver Investment Corp. to FirstCity Crestone LLC to be used exclusively for working
capital purposes.

“Crestone Notes”
shall mean the promissory notes issued from time to time under the Crestone
Facility, as the same may be amended, restated or otherwise modified from time
to time with the prior written consent of the Lenders.

“FC Holdings
Real Property Financing Loans” shall mean (i) the FCS Fischer Loan, and
(ii) FCS Lancaster Loan.

“FCS
Fischer Loan” shall mean that certain loan amended on December 29, 2006,
having a balance consisting of principal, capitalized interest and accrued
interest as of December 26, 2006, not in excess of $5,098,798.05 made by FC
Holdings to FCS Fischer, Ltd.

“FCS
Lancaster Loan” shall mean that certain loan in an original principal
amount not in excess of $2,200,000.00 made by FC Holdings to FCS Lancaster,
Ltd. on or about December 29, 2005.

“New Ventures”
shall mean Franklin Client Management, a to-be-formed entity, American Pioneer
Bank, a Utah industrial bank, and an investment in a De  Novo
bank.

“New Ventures
Borrowing Base “ shall mean an amount equal to (A) the sum of (i) all
capital contributions paid in cash to any New Venture for the equity of such
new Venture plus (ii) retained earnings, if any, minus  (B) the sum of (i) accumulated deficit, if
any, plus (ii) such other reserves as Agent shall from time to time
deem, in good faith, to be appropriate, which is not otherwise taken into
account in determining the New Ventures Borrowing Base.  Once determined, the New Ventures Borrowing
Base shall remain in effect until the earlier of the next Borrowing Date or the
next Payment Date.

“Subordinated
Agent” shall mean BoS (USA) Inc., acting as Agent under the Subordinated
Debt.

“Subordinated
Debt” shall mean all indebtedness and obligations to be evidenced by that
certain Subordinated Delayed Draw Credit Agreement being negotiated as of the
Amendment Closing Date among the Borrower, the financial institutions party
thereto and BoS (USA) Inc., as Agent.

“Subordinated
Lenders” shall mean the lenders from time to time party to the documents
evidencing the Subordinated Debt.

“Traditional Borrowing Base” shall mean, as of any date of
calculation an amount equal to, determined as of the immediately preceding Payment Date but giving effect to all
subsequent Asset acquisitions by Portfolio Entities and consequent changes in
values determined pursuant to clauses (A), (B) and (C) below:

The Aggregate Net Present
Equity Value less

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(A)            the sum of (i) the amount by which the Net
Present Equity Value of all Portfolio Entities located in, or with Assets which
originated in Mexico exceeds $40,000,000, (ii) the amount by which the Net
Present Equity Value of all Portfolio Entities located in, or with Assets which
originated in Brazil exceeds $10,000,000, (iii) the amount by which the Net
Present Equity Value of all Portfolio Entities located in, or with Assets which
originated in Chile exceeds $25,000,000, (iv) the amount by which the Net
Present Equity Value of all Portfolio Entities with Assets located in, or which
originated in Argentina or Uruguay exceeds $6,000,000, (v) reserves as Agent
shall from time to time deem, in good faith to be appropriate, which is not
otherwise taken into account in determining the Net Present Value of an Asset
or the Net Present Equity Value of a Portfolio Entity, (vi) the Aggregate Net
Present Equity Value of each Portfolio Entity whose Equity Interests are owned
by any Subsidiary which has undertaken or is subject to any event described in
clauses (i) through (vii) of Section 9.8 of the Agreement, and (vii) the REO
Excess Value Adjustment, and less 

(B)
the sum of the Net Present Equity Values of each Portfolio Entity for which any
Loan Party has not completed all actions requested by Agent to ensure the
perfection and priority of its Liens on the Equity Interests issued by such
Portfolio Entity (including the perfection and priority of Liens on Equity
Interests in the country of organization of any Foreign Portfolio Entity,
including, if so requested, furnishing an opinion of counsel in such country
with respect to such perfection and priority, satisfactory to Agent in form and
substance) within ninety (90) days after the Funding Date of any Related
Acquisition Loan, plus

(C)
the sum of (a) for the FC Commercial Real Property Financing Loan: the lesser
of $30,000,000, or the then outstanding balance thereof; (b) for the FC
Holdings Real Property Financing Loans, the sum of: (i) the lesser of
$6,500,000, or the then outstanding balance of the FCS Fischer Loan, and (ii)
the lesser of $3,650,000, or the then outstanding balance of the FCS Lancaster
Loan, and (c) the aggregate principal amount of the Crestone Notes then
outstanding, reduced by the outstanding balance of any working capital loans
under the Crestone Facility.

Once determined, the Traditional Borrowing Base shall remain in effect
until the earlier of the next Borrowing Date or the next Payment Date

(ii)           by restating in its entirety the definition
of “Acquisition Price” therein to read as follows:

“Acquisition Price” with respect to
any Asset Pool means the purchase price to be paid to the seller of the Asset
Pool by the Portfolio Entity acquiring such Asset Pool for the acquisition of
all rights to all property included in such Asset Pool plus transaction costs
relating to the acquisition of such Asset Pool of up to 2% of the purchase
price of such pool; provided that with respect to an Asset Pool that consists
of one or more loans originated by the Crestone Portfolio Entity, Acquisition Price
shall

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mean the principal balance of the loan originated by the Crestone
Portfolio Entity plus transaction costs relating to the origination of such
Asset Pool of up to 2% of the principal balance of that Asset Pool.

(iii)          by restating in its entirety the definition
of “Aggregate Net Present Equity Value” therein to read as follows:

“Aggregate Net Present Equity Value”
shall mean the sum of the Net Present Equity Value of each Portfolio Entity
(for clarification, expressly excluding the New Ventures which are not
Portfolio Entities) (after giving effect, in the case of a Borrowing Base
Certificate delivered contemporaneously with a Notice of Borrowing, to an
applicable Eligible Portfolio Entity’s acquisition of an Asset Pool with
proceeds of the related Acquisition Loan, or, with respect to an Asset Pool
that consists of one or more Assets originated by a Crestone Portfolio Entity,
to the Crestone Portfolio Entity’s origination of an Asset Pool with proceeds
of the related Acquisition Loan).

(iv)          by restating in its entirety the definition
of “Aggregate Undistributed Funds” therein to read as follows:

“Aggregate
Undistributed Funds” shall mean, on any date of determination, the sum of
the amounts determined by multiplying (i) the FC Percentage of each Portfolio
Entity, times (ii) the amount of funds held by such Portfolio Entity (which for
purposes of this definition shall include the operating funds of the general
partner of any limited partnership which is the Portfolio Entity) which are not
(w) held in a lockbox account, nor (x) held by such Portfolio Entity for the
payment (a) of indebtedness to a Permitted Portfolio Company Creditor of such
Portfolio Entity due within the next 30 days or (b) Portfolio Protection
Expenses, nor (y) retained by such Portfolio Entity to satisfy a leverage
covenant imposed thereon by the Permitted Portfolio Company Creditor thereof
pursuant to a covenant under a loan agreement between such creditor and such
Portfolio Entity as in effect on the Execution Date, of which Agent has been
given written notice, nor (z) held by
ABL or any New Venture.

(v)           by restating in its entirety the definition
of “Amendment Closing Date” therein to read as follows:

“Amendment Closing Date” shall mean
August 22, 2007.

(vi)          by restating in its entirety the definition
of “Asset Pool” therein to read as follows:

“Asset Pool” shall mean (x) in
connection with the acquisition thereof by an Eligible Portfolio Entity or the
origination of an Asset by a Crestone Portfolio Entity, a portfolio of loans or
one or more Assets described in an

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Asset Pool Acquisition Certificate, and (y) in all other contexts, all
Assets of a Portfolio Entity.

(vii)         by restating in its entirety the definition of
“Asset Pool Acquisition Certificate” therein to read as follows:

“Asset Pool Acquisition Certificate”
shall mean a certificate from an Executive Officer of Borrower in the form of
Exhibit C to the Agreement, to which is attached (as contemplated by the form
of such certificate) the asset purchase agreement relating to the Assets
proposed to be purchased, and, if not previously provided to Agent or if
amended, restated or otherwise modified since previously provided, the Charter
Documents for the purchasing Portfolio Entity and any Shareholders Agreement
entered into or proposed to be entered into by the holders of the Equity
Interests of such Portfolio Entity; provided that with respect to any Crestone
Portfolio Entity, the certificate may relate to the origination of an Asset in
which case Borrower shall provide such other documentation requested by Agent
related to the Asset.

(viii)        by restating in its entirety the definition of “Borrowing
Base” in Annex I thereto to read as follows:

“Borrowing Base” shall mean, as of any date of calculation, an
amount equal to the sum of (A) the Traditional Borrowing Base plus (B)
the New Ventures Borrowing Base.

(ix)           by restating in its entirety the definition
of “Borrowing Base Availability” in Annex 1 thereto to read as follows:

“Borrowing Base Availability” shall
mean, as of any computation date, an amount equal to the sum of (A) 70% of the
Traditional Borrowing Base in effect on such date plus (B) 40% of the New
Ventures Borrowing Base in effect on such date.

(x)            by restating in its entirety the definition
of “Eligible Asset Pool” in Annex 1 thereto to read as follows:

“Eligible Asset Pool” shall mean an Asset Pool, to be acquired
by a Portfolio Entity from an Eligible Seller for an all cash purchase price,
which (unless Agent in its discretion otherwise consents in writing) conforms
in every respect with the requirements of Exhibit D to the Agreement; provided
that (a) with respect to ABL the requirements of items 2 and 5 of
Exhibit D shall not apply, and (b) with respect to a Crestone Portfolio
Entity, that any Asset Pool which is an Asset originated by the Crestone
Portfolio Entity is not subject to the requirement that the Asset Pool be
acquired from an Eligible Seller or that the Eligible Asset Pool conform in any
respect with the requirements of items 1(c), 2 and 5 of Exhibit D to the
Agreement.

(xi)           by restating in its entirety the definition
of “Eligible Portfolio Entity” in Annex 1 thereto to read as follows:

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“Eligible Portfolio Entity” shall mean a partnership,
corporation, trust, or limited liability company or, if not formed in the
United States, a similar foreign organized entity which is a Portfolio Entity
of which (i) if such Portfolio Entity is a US Person, not less than 50% of each
class of Equity Interests is owned directly or indirectly by Borrower or a
Primary Obligor, (ii) no Equity Interests thereof owned directly or indirectly
by Borrower or a Primary Obligor are pledged to any Person other than Agent,
for the benefit of the Lenders, provided that the Equity Interests of a
Crestone Portfolio Entity may be pledged to secure the Crestone Facility, so
long as the Crestone Notes and documents securing the Crestone Facility are
assigned to Agent to secure the obligations of Borrower herein, (iii) the
Charter Documents and Shareholder Agreements result in Permitted Shareholder
Arrangements, (iv) which has no Indebtedness other than Indebtedness under an
Indebtedness Instrument (a) pursuant to Approved Portfolio Leverage
Arrangements, or with respect to ABL, the ABL Facility, (b) incurred to pay
development expenses related to real estate, or (c) loaned to it by the owners
of the Equity Interests of the Portfolio Entity to pay Property Improvement
Expenses, and (vi) in respect of which no Disclosure Restriction exists.

(xii)          by restating in its entirety the definition
of “Portfolio Entity” in Annex 1 thereto to read as follows:

“Portfolio Entity” shall mean any
entity (other than an REO Affiliate or an Immaterial Entity) in which Borrower
or a Primary Obligor is directly or indirectly an equity owner and which was
formed for the purpose of acquiring Asset Pools, and shall also include Bosque
Leasing, L.P. (which is owned by Bosque Asset Corp. and Bosque GP Corp.),
FirstStreet Investment LLC (which is owned by FirstStreet Investment
Corporation, WAMCO III, Ltd. and WAMCO IX, Ltd.), ABL (which was formed for the purpose of originating and acquiring SBA
Loans) and each Crestone Portfolio Entity.

(xiii)         by restating in its entirety the definition of
“Total Loan Commitment” therein to read as follows:

“Total
Loan Commitment” shall mean the sum of the Loan Commitments of all of the
Lenders, as from time to time reduced pursuant to Section 2.6, which as of the
Amendment Closing Date shall be $225,000,000.

(b)           Section 2.1(b).  Section 2.1(b) of the Agreement is s amended
and restated in its entirety to read as follows:

(b) The Loans shall be used by Borrower
solely (i) (A) to make advances to a Primary Obligor, the full amount of which
advances are used by such Primary Obligor (as more fully set forth in other
portions of this Section 2, in Section 6B and in other Sections of this
Agreement) to make, directly or indirectly, a loan or contribution to the
capital of an Eligible Portfolio Entity to be used by such entity for the
acquisition of one or more Eligible Asset Pools, (B) to make advances to an
Eligible Portfolio Entity,

 6
 

the full amount of which advances are used by such entity for the
acquisition of one or more Eligible Asset Pools, (C) to make an advance to FC
Commercial, the full amount of which advance is used by FC Commercial to make
the FC Commercial Real Property Financing Loan, (D) to make advances to FC
Commercial to enable FC Commercial to make loans to FirstCity Denver Investment
Corp. to be loaned to Crestone Portfolio Entities under the Crestone Facility,
or (D) if requested by Borrower in the Notice of Borrowing for such Loans, to
pay any fee (including the Utilization Fee) in respect of such Loans (such
Loans, “Acquisition Loans”); or (ii) for working capital and other
general corporate purposes (such Loans, “Working Capital Loans”).

(c)           Section 4.3.  Section 4.3 of the Agreement is amended and
restated in its entirety to read as follows:

Section
4.3   Utilization Fee. 
Borrower agrees to pay to Agent, for the ratable account of each Lender
(based upon the percentage that each Lender’s Loan Commitment represents of the
Total Loan Commitment) a utilization fee equal to 1% of the amount of each
Acquisition Loan made and each Letter of Credit (Acquisition) issued, such fee
to be due and payable on each date on which a Loan is made or a Letter of
Credit (Acquisition) is issued (each such fee, a “Utilization Fee”);
provided, however, in no event shall the aggregate amount of Utilization Fees
payable during the term of this Agreement exceed $600,000.  The Existing Term Loans shall not be subject
to the Utilization Fee.  The Agent
acknowledges that the maximum aggregate Utilization Fee of $600,000 has been
paid in full.

(d)           Section 4.4.  Section 4.4 of the Agreement is amended and
restated in its entirety to read as follows:

Section 4.4   Upfront Fee.  Borrower agrees to pay to
Agent, for the ratable account of each Lender (based upon the percentage that
each Lender’s Loan Commitment represents of the Total Loan Commitment) an
upfront fee on the increase in the Total Loan Commitment effected on the
Amendment Closing Date (the “Upfront Fee”) in the amount of $500,000,
which fee shall be due and payable on the Amendment Closing Date.

(e)           Section 5.3.  Section 5.3 of the Agreement is amended and
restated in its entirety to read as follows:

5.3             Payment Date and
Distribution of Funds.

(a)             Until such time as
Agent or the Subordinated Agent, as the case may be, has exercised control over
the Cash Flow Cash Collateral Account and the Cash Collateral Account-Servicing
in accordance with the Loan Documents, all funds in such accounts shall be
distributed by Borrower on the fourth to last Business Day of each month (each,
a “Payment Date”) pursuant to the distribution statement approved in
writing by Agent or the Subordinated Agent, as the case may be (or at any other
times as may be

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agreed upon from time to time by Borrower, Agent,
Subordinated Agent and Lenders) to be paid and applied as follows:

(i)              First, to the
payment to Agent, for the account of Lenders, of all interest on the Loans
which is then due and payable;

(ii)             Second, to the
payment to Agent, for the account of Lenders, of any Commitment Commission and
any Letter of Credit Fee payable pursuant to Section 2A.3(a);

(iii)            Third, to the
payment to Subordinated Agent, for the account of Subordinated Lenders, of all
interest on the Subordinated Debt which is then due and payable;

(iv)            Fourth, to the
payment to Subordinated Agent, for the account of Subordinated Lenders, of any
commitment fee in respect of Subordinated Debt which is due and owing;

(v)             Fifth, to the
payment to Agent, for the account of Lenders, as a principal payment, any
mandatory prepayment which is then due and payable pursuant to Section 2.4(a)
and 2.4(b);

(vi)            Sixth, to the
payment to Subordinated Agent, for the account of Subordinated Lenders, as a
principal payment, any mandatory prepayment which is then due and payable on
the Subordinated Debt;

(vii)           Seventh, to the
payment to Agent, for the account of Lenders, an amount equal to all of any
fees, late charges and other fees and expenses which are then due and payable
to Agent and/or Lenders under this Agreement or any of the other Loan Documents
or which will become so due and payable on or before the last day of the
calendar month in which the Payment Date in question occurs;

(viii)          Eighth, to the
payment to Subordinated Agent, for the account of Subordinated Lenders, an
amount equal to all of any fees, late charges and other fees and expenses which
are then due and payable to Subordinated Agent and/or Subordinated Lenders under
the Subordinated Debt;

(ix)            Ninth, to the
payment to Agent, for the account of Lenders, as a principal payment, an amount
equal to the amount (if any) of any voluntary prepayment which Borrower elects
to pay pursuant to Section 2.5 and any Commitment Commission payable pursuant
to Section 2.6(c);

(x)             Tenth, to the
payment to Subordinated Agent, for the account of Subordinated Lenders, as a
principal payment, an amount equal to the amount (if any) of any voluntary
prepayment which Borrower elects to pay on the Subordinated Debt;

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(xi)                 Eleventh,
to the payment to Borrower of any remaining balance of the funds in the Cash
Flow Cash Collateral Account and the Cash Collateral Account-Servicing.

(b)                 Upon the exercise
by Agent, or the Subordinated Agent, as the case may be,  of its right to control the Cash Flow Cash
Collateral Account and the Cash Collateral Account-Servicing in accordance with
the Loan Documents, all funds in the Cash Flow Cash Collateral Account and the Cash
Collateral Account-Servicing may be applied by Agent, or the Subordinated
Agent, as the case may be, to Obligations in the following order of
priority:  (i) to any amounts not
otherwise listed in this Section 5.2 then due and payable by Borrower under
this Agreement, the Notes or the Security Documents, (ii) to any interest on
the Notes (pro  rata according to the aggregate amount of interest
then due and payable on the Notes) then due and payable, (iii) to any
Commitment Commission then due and payable pursuant hereto, (iv) to any other
fees then due and payable pursuant to Section 4 of this Agreement, pro  rata
according to the aggregate amount of fees then due and payable, (v) to any
principal amount then due under the Notes, (vi) to any interest on the
Subordinated Debt then due and payable, (vii) to any commitment fee then due
and payable on the Subordinated Debt, (viii) to any other fees then due and
payable on the Subordinated Debt, (ix) to any principal amount then due under
the Subordinated Debt, (x) to any amounts not then due under the Notes, unless
otherwise provided herein and (xi) to any amounts not then due under the
Subordinated Debt.

(f)            Section 6B.3.  Section 6B.3 of the Agreement is amended by
adding thereto a new Section 6B.3 to read in its entirety as follows:

6B.3  Consummation
of Asset Acquisition.  Except as to
any Asset Pool that consists of an Asset originated by a Crestone Portfolio
Entity, there shall have been delivered to Agent evidence satisfactory to Agent
that the acquisition of the Asset Pool described in the related Asset Pool
Acquisition Certificate shall have been consummated in accordance with the
terms of the applicable asset purchase agreement (without any waiver of any
material provision thereof by the Subject Portfolio Entity) and the Asset Pool
conforms to the description thereof contained in the Asset Pool Acquisition
Certificate as modified by revisions permitted by Section 6B.4, that the entire
amount of proceeds of such Loan were loaned or contributed by Borrower to the
Subject Portfolio Entity or a Primary Obligor which directly or indirectly
loaned or contributed such funds to the Subject Portfolio Entity simultaneously
with the closing of such acquisition, that the entire amount of the capital
contribution by other holders of the Equity Interests in such Subject Portfolio
Entity were contributed, and the proceeds of all Indebtedness incurred by such
Subject Portfolio Entity were received by such Subject Portfolio Entity, at the
same time as or before such Primary Obligor’s contribution or loan, and that
such Subject Portfolio Entity used all such loans or capital contributions
together with all such proceeds of Indebtedness to acquire such Asset
Pool.  As to any Asset Pool that consists
of an Asset originated by a Crestone Portfolio Entity, there shall have been

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delivered to Agent evidence satisfactory to Agent that the origination
of the Asset Pool described in the related Asset Pool Acquisition Certificate
shall have been consummated in accordance with the terms set forth in the
applicable Asset Pool Acquisition Certificate (without any waiver of any
material provision thereof by the Crestone Portfolio Entity) and the Asset Pool
conforms to the description thereof contained in the Asset Pool Acquisition
Certificate as modified by revisions permitted by Section 6B.4, that the entire
amount of proceeds of such Loan were loaned under the Crestone Facility to the
Crestone Portfolio Entity simultaneously with the funding of the Asset Pool,
and, and that such Crestone Portfolio Entity used all such funds to originate
the Asset Pool.

(g)           Section 7.1.  Section 7.1 of the Agreement is amended by
adding thereto a new subsection (n) to read in its entirety as follows:

(n)  As
soon as available and in any event within 30 days after the close of each
calendar month, as at the end of such month and for the period commencing at
the end of the previous Fiscal Year and ending with the end of such month, a
balance sheet of each New Venture, and the related statement of operations for
such period, each certified by the CFO of such New Venture as being prepared in
accordance with GAAP and to present fairly the financial position and results
of operation of such New Venture for such period.

(h)           Section 8.3(v).  Section 8.3(v) of the Agreement is amended
and restated in its entirety to read as follows:

(v) Indebtedness of FirstCity Denver
Investment Corp. payable to FC Commercial related to loans made by FC
Commercial to enable FirstCity Denver Investment Corp. to fund loans to
Crestone Portfolio Entities under the Crestone Facility.

(i)            Section 8.12(a).  Section 8.12(a) of the Agreement is amended
and restated in its entirety to read as follows:

(a) Except as set forth on Schedule
8.12(a), none of Borrower, any Subsidiary or any Portfolio Entity-50% shall
make any loan to any Person, or otherwise invest in or acquire any note, bond,
other debt instruments or obligations of or issued by any Person except
(subject to compliance with Section 7.15) (i) for loans made by Borrower to any
Primary Obligors which are evidenced by a Pledged Note; (ii) for loans
made by Borrower, any Subsidiary or any Portfolio Entity-50% to any Portfolio
Entity in the ordinary course of business, which loans are evidenced by a
Pledged Note in the case of a loan by the Borrower or any Subsidiary or a note
in the case of a loan by a Portfolio Entity-50%, or an inter-company
receivable; (iii) the accepting by a Subsidiary or a Portfolio Entity-50% of a
note from its 100% owned REO Affiliate evidencing the deferred purchase price
of a mortgage note sold to such REO Affiliate by such Subsidiary or Portfolio
Entity-50% or a portion of the purchase price for the real property in the
event that the REO Affiliate

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acquires the real property at a foreclosure sale or otherwise by
purchase from the Subsidiary or Portfolio Entity-50%; (iv) the accepting by an
REO Affiliate, a Latin American Acquisition Entity or a European Acquisition
Entity of a note from the transferee of real property sold by such REO
Affiliate, Latin American Acquisition Entity or European Acquisition Entity (as
the case may be) in the ordinary course of business evidencing a portion of the
deferred purchase price of such property; (v) in the case of FC Servicing and
ASDM, short term servicer advances in the ordinary course of business with
respect to portfolios which they are servicing in aggregate principal amount at
any one time outstanding not in excess of $5,000,000, on a combined basis; (vi) direct or indirect loans by
Primary Obligors to a Portfolio Entity for the acquisition of an Asset Pool in
accordance with the other terms hereof on the Funding Date of the Acquisition
Loans relating thereto in accordance with the Asset Pool Acquisition
Certificate relating thereto (or of any other asset pool in respect of which no
Loans have been requested if such acquisition is in the ordinary course of
business for the Consolidated Group and is not otherwise prohibited hereunder);
(vii) direct or indirect loans by Primary Obligors to Portfolio Entities to be
used by such entities (a) to pay development expenses related to real estate or
(b) to pay Portfolio Protection Expenses; (viii) SBA Loans made by ABL in accordance with the
SBA Rules and Regulations; and (ix) loans made by FC Commercial to
FirstCity Denver Investment Corp. to enable FirstCity Denver Investment Corp.
to fund loans to Crestone Portfolio Entities under the Crestone Facility.

(j)            Section 8.15.  Section 8.15 of the Agreement is amended and
restated in its entirety to read as follows:

8.15 Use of Proceeds.  The proceeds of Acquisition Loans shall be
used by Borrower solely to make advances evidenced by Pledged Notes in the
amount of such advance (minus any portion thereof utilized to pay any
Utilization Fee) to a Primary Obligor for such Primary Obligor, directly or
indirectly, to loan to, or contribute to the capital of, the Portfolio Entity
identified in the Notice of Borrowing, the full amount of which loan or
contribution to capital is used by such Portfolio Entity to pay all or a
portion of the Acquisition Price of the Asset Pool identified in the related
Notice of Borrowing to the seller of such Asset Pool previously identified to
Agent and Lenders pursuant to the terms hereof; provided that Acquisition Loans
made to enable FirstCity Denver Investment Corp. to make loans to a Crestone
Portfolio Entity may be advanced by Borrower to FC Commercial to be advanced by
FC Commercial to FirstCity Denver Investment Corp.  The proceeds of Working Capital Loans shall
be used solely for working capital purposes of Borrower.

(k)           Section 8.18(a)(iii).  Section 8.18(a)(iii) of the Agreement is
amended and restated in its entirety to read as follows:

(iii) 
maintain a Tangible Net Worth equal to or greater than $85,000,000 for
the last day of the fiscal quarter then ended.

 11
 

(l)            Section 8.26(a).  Section 8.26(a) of the Agreement is amended
and restated in its entirety to read as follows:

(a) Borrower shall ensure that FC Servicing
or Minn Servicing is the servicer for each Subsidiary and Portfolio Entity-50%
which is a US Person, except as to (a) ABL,  which will
service all loans originated or acquired by ABL, and (b) each Crestone
Portfolio Entity, whose assets will be serviced by FirstCity Crestone LLC.

(m)          Section 8.28(a).  Section 8.28(a) of the Agreement is amended
and restated in its entirety to read as follows:

(a) In furtherance and not in limitation of
the other restrictions set forth in this Agreement, Borrower shall ensure that
(i) no Subsidiary which is a Portfolio Entity and no Portfolio Entity-50%
engages in any activity other than owning Asset Pools and shall have no Assets
other than such Asset Pools, collections thereon and interests in REO
Affiliates of which it is the REO Owner, or the ownership of Incidental Equity
Interests, provided, that (i) a Subsidiary or a Portfolio Entity-50%
doing business outside the United States may own the type of assets an REO
Affiliate would own (if it had an REO Affiliate of which it were the REO
Owner); (ii) each REO Affiliate shall be formed in respect of a specific REO
Owner and shall not hold assets other than from such REO Owner; (iii) WAMCO
III, Ltd. and WAMCO IX, Ltd. may continue to own Equity Interests in
FirstStreet Investment LLC; (iv) ABL may originate and service SBA Loans in accordance with the SBA
Rules and Regulations; and
(iv) Crestone Portfolio Entities may originate Assets and engage in those activities
described in Section 10.33.

(n)           Section 9.19.  Section 9 of the Agreement is amended by
adding thereto a new Section 9.19 to read in its entirety as follows:

9.19.  Closing of Subordinated Debt.  Borrower shall have failed to execute and
deliver by no later than September 5, 2007 documents evidencing and effecting a
closing under the Subordinated Debt.

(o)           Section 10.33.  Section 10.33 of the Agreement is deleted and
replaced in its entirety to read as follows:

10.33 
Crestone Portfolio Entities.  FC
Commercial has organized an eighty per cent (80%) owned subsidiary, FirstCity
Denver Investment Corp., in connection with Crestone Partners, LLC, which owns
the remaining twenty per cent (20%) ownership interest, for the purpose of
investing in (a) distressed debt, (b) special situation mezzanine and bridge
loan originations, (c) leveraged buyouts and (d) other special investment
opportunities to be determined by FC Commercial and Crestone Partners, LLC.  FirstCity Denver Investment Corp. has a
wholly owned subsidiary, FirstCity Crestone, LLC, which will service Assets
owned by Subsidiaries of FirstCity Denver Investment Corp.  FirstCity Denver Investment Corp. will provide
financing for the Crestone Portfolio Entities pursuant to the Crestone
Facility.

 12
 

Borrower and Lenders agree that the Loans made to Borrower to be
advanced to FC Commercial and advanced by FC Commercial to FirstCity Denver
Investment Corp. to enable it to make loans under the Crestone Facility shall
constitute Acquisition Loans notwithstanding any provision of this Agreement
that limits Acquisition Loans to loans made to a Portfolio Entity to acquire
loans, Assets Pools or other Assets, and that the Crestone Facility shall
constitute an Approved Portfolio Leverage Arrangement notwithstanding any
provision of this Agreement that provides that an Approved Portfolio Leverage
Arrangement must be made by a financial institution or that loans made under
any Approved Portfolio Leverage Arrangement must be for acquisition of loans or
other Assets.  Borrower and Lenders agree
that the Crestone Portfolio Entities shall constitute Eligible Portfolio
Entities notwithstanding that the Assets of the Crestone Portfolio Entities
will be pledged to secure the Crestone Facility.

(p)           Exhibit G.  Exhibit G (Borrowing Base Certificate) to the
Agreement is amended and restated in its entirety as set forth in Exhibit G
hereto.

(q)           Termination of FC Holdings Line of Credit.  The FC Holdings Line of Credit has been fully
paid by FC Holdings and all liens and security interests arising under the
Holdings/CFSC Loan Agreement, the Holdings/CFSC Loan Documents and documents
executed in connection therewith have been released.  The following terms and provisions in the Agreement
shall be deleted from the Agreement effective upon execution of this Amendment:
CFSC, CFSC Guaranty Subordination Agreement, CFSC Intercreditor Agreement, FC
Holdings Line of Credit, Holdings/CFSC Loan Agreement, Holdings/CFSC Loan
Documents, Shared Collateral, Section 8.23 and Section 10.33 which is replace
in this amendment by a new Section 10.33 related to the Crestone Portfolio
Entities which remains in full force and effect.  All provisions in the Agreement related to
the FC Holdings Line of Credit and the terms deleted in this subpart (q) shall
be of no further force or effect.

4.  Consent.  The
Borrower has advised the Agent that FirstCity Mexico, SA de CV and certain
affiliates have been requested to indemnify KPMG Cardenas Dosal, S.C. in connection
with its provision of services relating to transfer pricing matters, such
indemnity to be in the form of Exhibit 1 hereto (the “Indemnity”).  The issuance of the Indemnity is prohibited
by the Agreement.

  In reliance upon the representations, warranties, and agreements set forth
herein, the Agent hereby consents to the execution and delivery of the
Indemnity.

The
Agent consents to the loans to be made by FC Commercial to FirstCity Denver Investment
Corp. to enable it to make loans under the Crestone Facility.  The Agent also consents to the pledge of
Assets by each Crestone Portfolio Entity to secure the Crestone Facility and
the assignment of those liens and security interests by FirstCity Denver
Investment Corp. to FC Commercial.

5.  Representations.  In order to induce the Agent and the Lenders to execute this Amendment, the
Borrower hereby represents, warrants and covenants to the Agent and the Lenders
as of the date hereof and (if different) as of the Amendment Closing Date
(which

 13
 

representations, warranties and covenants shall survive the execution,
delivery and effectiveness of this Amendment) as follows:

(a)           No
Default or Event of Default exists.

(b)           Each representation and warranty made by
Borrower, each Primary Obligor, each Portfolio Entity, each Related Entity and
each other Loan Party in the Loan Documents is true and correct.

(c)           The execution and delivery of this Amendment
by the Borrower and the consummation of the transactions contemplated herein
have been duly authorized by all necessary corporate action.

(d)           This Amendment is the legal, valid and
binding obligation of the Borrower, enforceable in accordance with its terms
subject, as to enforceability, to applicable bankruptcy, insolvency,
reorganization and similar laws affecting the enforcement of creditors’ rights
generally and to general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

(e)           No Material Adverse Change has occurred since
June 30, 2007.

6.  Effectiveness.
 This Amendment shall become effective
when each of the following conditions have been fulfilled to the satisfaction
of the Agent (or waived by the Agent).

(a)           Signed
Copies.  The Borrower, the Lenders and the Agent shall
have executed a copy hereof and delivered the same to the Agent at 565 Fifth
Avenue, New York, New York 10017 (Attention:  Joseph Fratus) or such other place directed
by the Agent.

(b)           Guarantor’s Consent.  Each
Guarantor shall have executed a confirming consent, substantially in the form attached
hereto as Annex A or otherwise satisfactory to the Agent (a “Confirming
Consent”), and delivered the same to the Agent at 565 Fifth Avenue, New
York, New York 10017 (Attention:  Joseph
Fratus) or such other place directed by the Agent.

(c)           No Defaults.  No Default or Event of Default
shall exist.

(d)           Accuracy of Representations.  Each
representation and warranty made by the Borrower, each Primary Obligor, each
Portfolio Entity, each Related Entity and each other Loan Party in the
Agreement and the other Loan Documents shall be true and correct in all
material respects as of the Amendment Closing Date with the same effect as
though made at and as of such date (except for those that specifically speak as
of a prior date).

(e)           Audited Financials.  The Borrower
shall have delivered a copy of its audited Financial Statements for the year
ended December 31, 2006 to the Agent at 565 Fifth Avenue, New York, New York
10017 (Attention:  Joseph Fratus) or such
other place directed by the Agent.

 14
 

7.  Limited
Nature of Amendments.  The amendments
set forth herein are limited precisely as written and shall not be deemed to
(a) be a consent by the Agent or the Lenders to any waiver of, or modification
of, any other term or condition of the Agreement, or any of the documents
referred to in any of the foregoing or (b) prejudice any right or rights which
any of the Lenders or the Agent may now have or may have in the future under or
in connection with the Agreement, or any of the documents referred to in any of
the foregoing.  Except as expressly
amended hereby, the terms and provisions of the Agreement shall remain in full
force and effect.

8.  Governing
Law.  THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE THAT WOULD RESULT IN THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

9.  Jurisdiction,
Waiver of Jury Trial.  THE BORROWER
HEREBY AGREES THAT ANY LEGAL ACTION OR PROCEEDING AGAINST IT WITH RESPECT TO
THIS AMENDMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN
NEW YORK CITY OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF
NEW YORK AS THE AGENT OR ANY LENDER MAY ELECT, and, by execution and delivery
hereof, the Borrower accepts and consents for itself and in respect to its
property, generally and unconditionally, the exclusive jurisdiction of the
aforesaid courts, unless waived in writing by the Agent and the Majority
Lenders.  EACH OF THE BORROWER, THE AGENT
AND THE LENDERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND
ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AMENDMENT OR ANY
OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE BORROWER, ANY AFFILIATE OF THE
BORROWER, THE AGENT OR ANY LENDER.  THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE AGENT AND THE LENDER ENTERING INTO
THIS AMENDMENT.

10.  Headings.
 The descriptive headings of the various
provisions of this Amendment are inserted for convenience of reference only and
shall not be deemed to affect the meaning or construction of any of the
provisions hereof.

11.  Writings
Only.  BORROWER HEREBY ACKNOWLEDGES
AND AGREES THAT NO TERM OR PROVISION OF THE AGREEMENT, THE NOTES OR ANY OF THE
OTHER LOAN DOCUMENTS MAY BE CHANGED, WAIVED, SUPPLEMENTED OR OTHERWISE MODIFIED
VERBALLY, BUT ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE RELEVANT PARTIES,
AS FURTHER PROVIDED IN SECTION 12.2 OF THE CREDIT AGREEMENT.

12.  Counterparts.  This Amendment may be executed in any number
of counterparts, and by the different parties on the same or separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original, but all of which together shall constitute one and the same
agreement.  Telecopied signatures hereto
and to the Confirming Consent shall be of the same force and effect as an
original of a manually signed copy.

[Signature page follows.]

 15

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by
their respective duly authorized officers.

	
  

  	
  BANK OF SCOTLAND,

  
	
   

  	
  Individually and as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FIRSTCITY FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[Signature Page to Amendment No. 10 to Revolving Credit Agreement]

Annex A

CONFIRMING CONSENT

Reference is hereby made to the foregoing Amendment
(the “Amendment”) to the Revolving Credit Agreement dated as of August
22, 2007 among the Borrower, the Lenders and the Agent; said agreement, as
amended and modified by the Amendment and from time to time hereafter further
amended or otherwise modified, the “Amended  Agreement”.

Each Guarantor hereby consents to the terms and
provisions of the Amendment and confirms and acknowledges that:

(a)  its
obligations under the Loan Documents to which it is a party remain in full
force and effect and the terms “Obligations” and “Secured Obligations” used in
such Loan Documents include all Obligations of the Borrower under the Amended
Agreement; and

(b)  its
consent and acknowledgement hereunder is not required under the terms of such
Loan Documents and any failure to obtain its consent or acknowledgment to any
subsequent amendment to the Agreement or the Amended Agreement or any of the
other Loan Documents will not affect the validity of its obligations under the
aforesaid Loan Documents or any other Loan Document, and this consent and
acknowledgement is being delivered for purposes of form only.

Capitalized terms used herein and not otherwise defined have the same
meanings as in the Amended Agreement. 
This Consent is dated as of the Amendment Closing Date (as defined in
the Amendment).

	
  FIRSTCITY COMMERCIAL CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  FC CAPITAL CORP.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  FIRSTCITY CONSUMER LENDING

  CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  

 

 

	
  FIRSTCITY EUROPE CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  FIRSTCITY HOLDINGS CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  FIRSTCITY HOLDINGS CORPORATION OF

  MINNESOTA

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  FIRSTCITY INTERNATIONAL CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  FIRSTCITY MEXICO, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  FIRSTCITY SERVICING CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  BOSQUE ASSET CORP.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  

 

 

	
  BOSQUE LEASING, L.P.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes 

  
	
   

  	
  Title: Executive Vice President

  
	
   

  
	
  BOSQUE LEASING GP CORP.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice President

  

 

EXHIBIT
1

KPMG
INDEMNITY

June 5, 2007 

Private

C.P.A. Enrique Moran

FirstCity Mexico, S.A. de C.V. 

Francisco de Quevedo 117, Piso 2 

Col. Arcos Vallarta 44130

Guadalajara, Jalisco

Dear Enrique:

We are pleased to submit our
proposal for professional services regarding transfer pricing to Administracion
de Carteras Empresariales S. de R.L. de C.V., Administracion de Carteras
Nacionales S. de R.L. de C.V., Administracion de Carteras Nacionales II S. de
R.L. de C.V., Cartera en Administracion y Cobranza S. de R.L. de C.V., Cobranza
Internacional de Carteras S. de R.L. de C.V., Cobranza Nacional de Carteras S.
de R.L. de C.V. FirstCity Mexico S.A. de C.V., Integracion de Activos Mexicanos
S. de R.L. de C.V., Notmex, S.A. de C.V. SOFOM ENR, Recuperacion de Activos
Mexicanos S. de R.L. de C.V., Recuperacion de Carteras Mexicanas S. de R.L. de
C.V., Residencial Oeste S. de R.L. de C.V., Residencial Oeste 2 S. de R.L. de
C.V., Solucion de Activos Comerciales S. de R.L. de C.V., Solucion de Activos
Residenciales S. de R.L. de C.V., Solucion de Creditos Comerciales S. de R.L.
de C.V. and Servicios Efectivos de Recuperacion S.A. de C.V. (hereinafter
referred to as “The Companies”). By this mean we confirm the terms and conditions of the agreement that
KPMG Cardenas Dosal, S.C. (hereinafter “KPMG”), will perform to assist The
Companies to comply with their transfer pricing obligations regarding the
transactions performed by The Companies with its foreign based related parties;
and the opinion letters regarding the transactions performed in Mexico between
The Companies during fiscal year 2006.

I.
Background

It is our understanding
that The Companies is a group of Mexican entities primarily engaged in the
recovery of overdue loans. It is also our understanding that The Companies
performed the following transactions with foreign and Mexican related parties,
during fiscal year 2006:

	
  Company

  	
   

  	
  Main Activity

  	
   

  	
  Operations with foreign

  and Mexican related

  parties

  
	
  Integracion de Activos Mexicanos S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans.

  	
   

  	
  ·
  Financing*.

  · Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Servicios Efectivos de Recuperacion S.A. de C.V.

  	
   

  	
  Rendering of
  administrative services

  	
   

  	
  a Payment of
  commissions*.

  ·
  Rendering of administrative services. 

  a Payment of technical assistance.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Recuperacion de Activos Mexicanos S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans.

  	
   

  	
  ·
  Financing*.

  ·
  Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Firstcity Mexico S.A. de C.V.

  	
   

  	
  Rendering of
  administrative services

  	
   

  	
  a Financing*. 

  a Rendering of administrative
  services. 

  a Payment of technical
  assistance.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Solucion de Activos Comerciales S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans.

  	
   

  	
  a Financing*. 

  a Payment of
  administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Solucion de Activos Residenciales S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans.

  	
   

  	
  a Financing*.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notmex, S.A. de C.V. SOFOM ENR

  	
   

  	
  Finance Society of
  Multiple Object.

  	
   

  	
  a Financing*.

  

 

*Transaction
performed with foreign based related parties.

On the
other side, it is also our understanding that The Companies performed the
following transactions only with Mexican related parties, during fiscal year
2006:

 2
 

 

	
  Company

  	
   

  	
  Main Activity

  	
   

  	
  Operations with

  Mexican related parties

  
	
  Administracion de Carteras Nacionales S. de R.L. de
  C.V.

  	
   

  	
  Recovery of overdue
  loans.

  	
   

  	
  · Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administracion de Carteras Nacionales II S. de R.L. de
  C.V.

  	
   

  	
  Recovery of overdue
  loans

  	
   

  	
  ·
  Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administracion de Carteras Empresariales S. de R.L. de
  C.V.

  	
   

  	
  Recovery of overdue
  loans

  	
   

  	
  · Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cobranza Internacional de Carteras S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans

  	
   

  	
  · Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cobranza Nacional de Carteras S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·
  Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Recuperacion de Carteras Mexicanas S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans

  	
   

  	
  · Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Residencial Oeste S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans

  	
   

  	
  · Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cartera en Administracion y Cobranza S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans

  	
   

  	
  ·
  Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Solucion de Creditos Comerciales S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans

  	
   

  	
  · Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Residencial Oeste 2 S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue
  loans

  	
   

  	
  ·
  Payment of administrative services.

  

 

Due to
the previously mentioned, the intercompany transactions by which it is required
to know if they comply with transfer pricing regulations are the following:

·        Financing,

·        Rendering of administrative services,

·        Payment of commissions, and

·        Payment of technical assistance.

 3
 

II. Scope of Engagement

Our work will be performed
based on the information provided by you and we will not issue any opinion
regarding the reasonability of the figures involved, every time that the
procedures to apply do not constitute an audit of the financial statements or
the information provided to us in order to fulfill our work.

The purpose of our work will
be to assist The Companies to fulfill its transfer pricing documentation
obligations, and to evaluate if the prices, amounts of compensation or profit
margins of the transactions performed by The Companies with its foreign related
parties are similar those which would have been agreed between independent
parties in comparable transactions, according to Articles 86-XII and 215 of the
Mexican Income Tax Law (MITL), during fiscal year 2006, and to determine if the
prices, amounts of compensation or profit margins of the transactions performed
by The Companies with its Mexican related parties, are similar to those which
would have been agreed between independent parties in comparable transactions,
according to Article 86-XV of the MITL.

This proposal covers only
the elaboration of the transfer pricing analysis for the transactions performed
with the related parties mentioned in the Background section, and does not
include the filing for an advanced pricing agreement with the tax authorities,
in order to obtain a transfer pricing ruling. In such case, a request for an
advanced pricing agreement would be evaluated once the transfer pricing study
is concluded.

According to Article 86-XII of the MITL for fiscal
year 2006, the transfer pricing analysis with respect to the transactions
carried out with foreign related parties, must be performed for each type of
transaction (sales, purchases, services, among others). Also, the informative
tax return regarding transactions with foreign related parties requires that
the information of these transactions be filed per type of transaction.
Therefore, in order to support the information that will be filed in the
informative tax return for fiscal year 2006, as well as to fulfill the
applicable tax provisions for said fiscal year, our work will consist of
analyzing separately each type of transaction performed by The Companies with
its foreign related parties, during fiscal year 2006. The transfer pricing
analysis of the transactions performed between The Companies and its Mexican
related parties will be performed on the same basis.

 4
 

We will keep in strict confidentiality any documentation and
information that may be furnished to us in order to perform our work, as well
as the results obtained in the analysis. No information will be disclosed to
any other party unless it is specifically requested by The Companies.

The scope of our work will be limited to prepare a
transfer pricing studies for fiscal year 2006, which will include the
transactions carried out by The Companies with its foreign related parties,
mentioned in the Background section, and to determine if the prices, amounts of
compensation or profit margins of these transactions are similar to those which
would be agreed between independent parties in comparable transactions. At the
end, we will provide you with a report that will consist of the following:

Section I:     Introduction

Section
II: Business Overview

Section
III: Transactions with Foreign Related Parties

Section
IV: Economic Analysis

Section
V: Conclusions 

Section
VI: Appendixes

Likewise, regarding the transactions performed with
the Mexican related parties mentioned in the Background section of this
proposal, we will provide opinion letters containing the following:

Section
I:     Introduction 

Section
II: Business Overview

Section
III: Analysis and Results

Section IV: Conclusions

III. Work Plan

We anticipate that the project will take
approximately twelve weeks to carry out and deliver the transfer pricing report
for fiscal year 2006, once we have all the information required to perform our
work. This timetable depends on a timely support from The Companies’ personnel
to our information requirements, as well as on the quality of such information.
During the elaboration of the project, we will make our best effort to deliver
it on the time stipulated in this engagement letter. Unanticipated events may
require some modification of the timetable as well as of our fees. We will
notify you of these events as soon as they arise.

 5
 

Startup of the project will be scheduled once we receive a signed copy
with your approval of our proposal.

Our work will be performed according to the following stages:

Information
requirement: An information requirement will be submitted to The
Companies’ personnel in order to obtain the information necessary to start the
transfer pricing studies.

Data
gathering: A meeting with The Companies’ personnel will be
carried out in order to gather and to review the information required in the
previous stage.

Functional
analysis/Background: With the information obtained, we will carry out
the functional analysis of The Companies, which consists of a detailed
description of its functions and transactions with its foreign related parties.
Regarding the opinion letters, we will prepare a description of the
intercompany transactions performed with Mexican related parties.

Transfer
pricing methodology: We will apply the best transfer pricing methodology
for each type of transaction performed with related parties, including the
comparable companies search, the economic adjustments that may apply and the
results.

Transfer
pricing report and opinion letter: We will prepare the drafts
for discussion purposes of the report and the opinion letters, which will
contain the functional analysis, the economic analysis, the results and our
conclusions, as well as the appendixes, which support the work performed.

Draft
review: We will deliver the drafts for discussion purposes, for your review
and comments. If necessary, we will schedule a meeting to go over the work
performed, as well as the results obtained.

Final version: Once The Companies has reviewed the drafts
and provided us its comments, we will prepare and deliver the final versions of
the transfer pricing reports, and the opinion letters.

 6
 

As a result of our work we will issue opinions which will be based on
the current applicable Mexican regulations in force. Such regulations may be
modified or abrogated at any moment. As a result, such changes may affect the
future validity of our conclusions, which would be updated in the event that
The Companies requests it from us, causing additional fees. Our comments will
not constitute a resolution of mandatory application. Thus, third parties may
not agree with them.

IV.      Staffing

The success of our transfer pricing
projects is attributable to the team work of our specialized staff. KPMG has a
professional team with experience in serving the needs of corporations with
respect to transfer pricing. In this analysis we will incorporate economical
and fiscal issues with transfer pricing applications. The successful synergy of
these two perspectives is our signature and what we believe makes us different from our
competitors.

Our project team will
consist of myself, Partner of the Tax Practice, Jose Casas, Transfer Pricing
Partner, Alma Gutierrez, Transfer Pricing Manager, as well as members from our staff specialized in
this area. I will be responsible for the project, while Alma Gutierrez will
direct the project on a day-to-day basis.

V.       Fees

Our professional fees for
the transfer pricing report and opinion letter of 2006 will be of $30,000 US
dollars, plus Value Added Tax (“VAT”). We will require a 60% advanced payment
at the beginning of our work, 20% will be invoiced the following month and the
rest will be required once we deliver the draft for discussion
purposes. Any out-of-pocket expenses will be charged separately, previous
authorization of The Companies before incurring them.

Our fees are based on the
degree of responsibility and skills involved and the time necessary to conduct
the work. Circumstances encountered during the rendering of our services that
warrant additional time and expense may cause us to be unable to deliver them
within the time and amount listed above. We will notify you of any circumstances
as they are assessed.

 7
 

***********

We are pleased to have the
opportunity to submit our proposal of professional services, and express our
commitment to deliver a high quality service. If you accept this proposal, we
would ask you to sign where indicated and send us a copy for our files.

Our advice is for the sole
benefit of The Companies based upon your specific facts and circumstances. It
should not be relied upon by others. In the event that a third party takes
legal action, resulting from the use or possession of KPMG Cardenas Dosal, S.C.’s advice, The
Companies will compensate KPMG Cardenas Dosal, S.C. for such legal action, the
derived contingencies and costs.

In connection with this
engagement, you agree that the liability to The Companies of KPMG Cardenas
Dosal, S.C., (its partners, directors, employees and agents under statute
otherwise) for any loss or damage suffered by you arising
out of or in connection with our work, however the loss or damage is caused,
including our negligence but nor our willful default, shall be limited to the
amount of the fees established in this engagement letter.

We are currently carrying
out the internal process that our international policies require to document
our understanding and evaluation of professional risk for the acceptance of new
clients based on information provided to us by the management of The Companies
that is being verified by our specialists. We do not anticipate any change
derived from this procedure; nevertheless, in the case that some circumstance
exists which obliges us to modify our preliminary evaluation of risk and that
has some impact in this proposal, and as such, we have to resign from rendering
our services, we will promptly contact you.

The Companies authorizes KPMG Cardenas Dosal, S.C.
to use electronic mail (e-mail) and other electronic methods to transmit and
receive information related to our services mentioned in this proposal letter,
including confidential information between KPMG Cardenas Dosal, S.C. and The
Companies, and between KPMG Cardenas Dosal, S.C. and entities and external
specialists, contracted by KPMG Cardenas Dosal, S.C. or by FirstCity Mexico.

 8
 

KPMG Cardenas Dosal, S.C. does not assume any responsibility with
respect to the loss of information or legal action taken for the loss of
confidentiality, related to communication through the Internet.

For the interpretation, execution and fulfillment of
this engagement letter, the parties appearing before the courts of Mexico City,
the Federal District and to the competent federal authorities under federal
laws, and expressly renounce to any other statute that some of the parties have
or have come to consider by reason of its present or future residence or by any
other reason.

This engagement letter, together with its
appendixes, if any, forms the entire agreement and understanding between KPMG
Cardenas Dosal, S.C. and The Companies with respect to the subject matter
hereof. This engagement letter supersedes all previous arrangements and
understandings between the parties with respect to the subject of this
engagement letter, which shall cease to have any further force or effect. Any
variation to the terms of this proposal letter shall be made in writing and
will not be effective unless signed by a partner of KPMG Cardenas Dosal, S.C.
and by a duly authorized representative of The Companies.

This engagement letter is subject to the
authorization policies of The Companies, as well as to KPMG’s policies of risk
evaluation and authorization of service.

If you require further information or clarification, please contact us.

Sincerely,

KPMG Cardenas Dosal, S.C.

Leopoldo
Velazquez 

Tax Partner

	
  c.c.p.: C.P. Jose Casas

  	
   

  	
  – KPMG

  
	
   

  	
  C.P. Luis Enrique Guzman

  	
   

  	
  – KPMG

  
				

 

 9
 

 

VI.
Approval

I have read and
understand the terms and conditions expressed in this engagement letter, and I
agree to and accept them.

Administracion de Carteras Empresariales S. de R.L. de
C.V. Administracion de Carteras Nacionales S. de R.L. de C.V. Administracion de
Carteras Nacionales II S. de R.L. de C.V. Cartera
en Administracion
y Cobranza S. de R.L. de C.V. Cobranza Internacional de Carteras S. de R.L. de
C.V. Cobranza Nacional de Carteras S. de R.L. de C.V.

FirstCity Mexico S.A. de C.V.

Integracion de Activos Mexicanos S. de R.L. de C.V.
Notmex, S.A. de C.V. SOFOM ENR

Recuperacion de Activos Mexicanos
S. de R.L. de C.V. Recuperacion de Carteras Mexicanas S. de R.L. de C.V.
Residencial Oeste S. de R.L. de C.V.

Residencial Oeste 2 S. de R.L. de
C.V.

Servicios Efectivos de
Recuperacion S.A. de C.V.

Solucion de Activos Comerciales S. de R.L. de C.V.
Solucion de Activos Residenciales S. de R.L. de C.V. Solucion de Creditos
Comerciales S. de R.L. de C

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Name and
  Signature

  	
   

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

 10Exhibit 10.2

EXECUTION COPY

AMENDMENT NO. 3 AND CONSENT TO REVOLVING
CREDIT AGREEMENT

AMENDMENT  AND CONSENT (this “Amendment”),
dated as of August 22, 2007, among FH PARTNERS LLC, a Texas limited liability
company (the “Borrower”), the financial institutions which are parties
to the Agreement hereinafter referred to (each a “Lender” and
collectively, the “Lenders”), and BANK OF SCOTLAND, as agent for the
Lenders (in such capacity, the “Agent”) under the Revolving Credit
Agreement, dated as of August 26, 2005, among the Borrower, the Lenders and the
Agent (the “Agreement”).

W  I  T  N  E
S  S  E  T  H:

WHEREAS,
the Borrower has requested that certain amendments set forth herein be made to
the Agreement;

WHEREAS,
subject to the terms and conditions contained below, the Agent and the Lenders
are willing to so amend the Agreement;

NOW,
THEREFORE, it is agreed:

1.  Definitions.  All terms used herein which are defined in
the Agreement (including, to the extent any such terms are to be added or
amended by this Amendment, as if such terms were already added or amended by
this Amendment, unless the context shall otherwise indicate) shall have the
same meanings when used herein unless otherwise defined herein.  All references to Sections in this Amendment
shall be deemed references to Sections in the Agreement unless otherwise
specified.

2.  Effect of Amendment.  As used in the Agreement (including all
Exhibits thereto), the Notes and the other Loan Documents and all other
instruments and documents executed in connection with any of the foregoing, on and subsequent to the Amendment
Closing Date (as hereinafter defined), any reference to the Agreement shall
mean the Agreement as amended hereby.

3.  Amendments.  The Agreement is hereby amended as follows:

(a)           Annex I. Annex I to the Agreement is amended as
follows:

(i)            by adding the following new definition of “Amendment
Closing Date” in appropriate alphabetical order therein:

“Amendment
Closing Date” shall mean August 22, 2007.

(ii)           by adding the following new definition of “Cumulative Original
Projected Collections” in appropriate alphabetical order therein:

 1
 

“Cumulative Original
Projected Collections” shall mean an amount equal to the sum of all
anticipated future collections on all Assets described in Final NPV Pool
Certificates delivered in connection with Asset Pools acquired on or after
January 1, 2004, as projected at the time of the delivery of, and as set forth
in, all such Final NPV Pool Certificates.

(iii)          by adding the following new definition of “Cumulative Current Recovered
and Projected Collections” in appropriate alphabetical order therein:

“Cumulative Current
Recovered and Projected Collections” shall mean, at any date of
determination, an amount equal to the sum of (x) the aggregate amount of all
cash previously collected on Assets described in Final NPV Pool Certificates
delivered in connection with Asset Pools acquired on or after January 1, 2004,
plus (y) all reasonably anticipated future collections on such Assets.

(iv)          by restating in its entirety the definition of “Total Loan Commitment”
therein to read as follows:

“Total Loan Commitment”
shall mean the sum of the Loan Commitments of all of the Lenders, as from time
to time reduced pursuant to Section 2.6, which as of the Amendment Closing Date
shall be $100,000,000.

(v)           by restating in its entirety the definition of “Maturity Date” therein
to read as follows:

“Maturity Date” shall
mean November 12, 2010.

(b)           Section 2.1(b).  The
last sentence of Section 2.1(b) of the Agreement is amended and restated in its
entirety to read as follows:

Loans made from time to time
after the Effective Date shall be used by Borrower solely for the acquisition
of one of more Eligible Asset Pools, or if requested by Borrower in the Notice
of Borrowing for such Loans, to pay any fee (including the Utilization Fee) in
respect of such Loans or for any other purpose approved in advance in writing
by the Agent.

(c)           Section 4.2.  Section 4.2 of the Agreement
is amended and restated in its entirety to read as follows:

Section 4.2.  Utilization Fee.  Borrower agrees to pay to Agent, for the
ratable account of each Lender (based upon the percentage that such Lender’s
Loan Commitment represents of the Total Loan Commitment) a utilization fee
equal to .50% of the amount of each Loan made, such fee to be due and payable
on each date on which a Loan is made (each such fee, a “Utilization Fee”);
provided,  however, in no
event shall the aggregate amount of Utilization Fees payable after the
Amendment Closing Date during the term of this Agreement exceed $375,000.

 2
 

(d)           Section 4.3.  Section 4.3 of the Agreement
is amended and restated in its entirety to read as follow:

Section 4.3.            Upfront Fee.  Borrower agrees to pay to
Agent, for the ratable account of each Lender (based upon the percentage that
each Lender’s Loan Commitment represents of the Total Loan Commitment) an
upfront fee (the “Upfront Fee”) in the amount of $350,000, which fee
shall be due and payable in full on the Effective Date, and in the amount of
$350,000, which fee shall be due and payable in full on the Amendment Closing
Date.

(e)           Section 8.  Section 8 is amended by adding
the following new Subsection 8.23 to read in its entirety as follows:

8.23.  LTV Ratio.  Borrower shall not permit at any time an LTV
Ratio as to any Asset Pool to exceed 70% and not permit at any time the
aggregate LTV Ratio as to all Asset Pools to exceed 65%.

(f)            Section 8A(a)(iii). 
Section 8A(a)(iii) is amended and restated in its entirety to read as
follows:

(iii) maintain a Tangible
Net Worth equal to or greater than $85,000,000 on the last day of each fiscal
quarter.

(g)           Section 8A(a). 
Section 8A(a) is amended by adding the following new clause (iv) to
subsection (a) therein, immediately following clause (iii) therein:

(iv) maintain a ratio of Cumulative
Current Recovered and Projected Collections to Cumulative Original Projected
Collections, of not less than 0.90 to 1.00.

4.  Consent.  The Borrower has advised the Agent that
FirstCity Mexico, SA de CV and certain affiliates have been requested to
indemnify KPMG Cardenas Dosal, S.C. in connection with its provision of
services relating to transfer pricing matters, such indemnity to be in the form
of Exhibit 1 hereto (the “Indemnity”). 
The issuance of the Indemnity is prohibited by the Agreement.

In
reliance upon the representations, warranties, and agreements set forth herein,
the Agent hereby consents to the execution and delivery of the Indemnity.

Agent
consents to the filing of the amendment to Certificate of Formation on July 30,
2007, to change of the name of FH Partners Investments LLC to FH Partners LLC.

5.  Representations.  In order to induce the Agent and the Lenders
to execute this Amendment, the Borrower hereby represents, warrants and
covenants to the Agent and the Lenders as of the date hereof and (if different)
as of the Amendment Closing Date (which representations, warranties and
covenants shall survive the execution, delivery and effectiveness of this
Amendment) as follows:

 3
 

(a)           No Default or Event of
Default exists.

(b)           Each representation and warranty made by Borrower and each other Loan
Party in the Loan Documents is true and correct.

(c)           The execution and delivery of this Amendment by the Borrower and the
consummation of the transactions contemplated herein have been duly authorized
by all necessary corporate action.

(d)           This Amendment is the legal, valid and binding obligation of the
Borrower, enforceable in accordance with its terms subject, as to
enforceability, to applicable bankruptcy, insolvency, reorganization and similar
laws affecting the enforcement of creditors’ rights generally and to general
principles of equity (regardless of whether such enforcement is considered in a
proceeding in equity or at law).

(e)           No Material Adverse Change has occurred since June 30, 2007.

6.  Effectiveness.  This Amendment shall become effective when
each of the following conditions have been fulfilled to the satisfaction of the
Agent (or waived by the Agent).

(a)           Signed Copies.  The
Borrower, the Lenders and the Agent shall have executed a copy hereof and
delivered the same to the Agent at 565 Fifth Avenue, New York,
New York 10017 (Attention:  Joseph
Fratus) or such other place directed by the Agent.

(b)           Guarantor’s Consent.  Each
Guarantor shall have executed a confirming consent, substantially in the form
attached hereto as Annex A or otherwise satisfactory to the Agent (a “Confirming
Consent”), and delivered the same to the Agent at 565 Fifth Avenue, New
York, New York 10017 (Attention:  Joseph
Fratus) or such other place directed by the Agent.

(c)           No Defaults.  No Default or Event of Default
shall exist.

(d)           Accuracy of Representations.  Each
representation and warranty made by the Borrower and each other Loan Party in
the Agreement and the other Loan Documents shall be true and correct in all
material respects as of the Amendment Closing Date with the same effect as
though made at and as of such date (except for those that specifically speak as
of a prior date).

(e)           Audited Financials.  The
Borrower shall have delivered a copy of its audited Financial Statements for
the year ended December 31, 2006 to the Agent at 565 Fifth Avenue, New York,
New York 10017 (Attention:  Joseph
Fratus) or such other place directed by the Agent.

(f)            Extension Fee. 
Borrower shall have paid to Agent, for the ratable account of each
Lender (based upon the percentage that each Lender’s Loan Commitment represents
of the Total Loan Commitment) an extension fee in the amount of $125,000. .

 4
 

7.  Limited Nature of Amendments.  The amendments set forth herein are limited
precisely as written and shall not be deemed to (a) be a consent by the Agent
or the Lenders to any waiver of, or modification of, any other term or
condition of the Agreement, or any of the documents referred to in any of the
foregoing or (b) prejudice any right or rights which any of the Lenders or the
Agent may now have or may have in the future under or in connection with the
Agreement, or any of the documents referred to in any of the foregoing.  Except as expressly amended hereby, the terms
and provisions of the Agreement shall remain in full force and effect.

8.  Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO CHOICE OF LAW DOCTRINE THAT WOULD RESULT IN THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION.

9.  Jurisdiction, Waiver of Jury Trial.  THE BORROWER HEREBY AGREES THAT ANY LEGAL
ACTION OR PROCEEDING AGAINST IT WITH RESPECT TO THIS AMENDMENT MAY BE BROUGHT
IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK CITY OR OF THE
UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AS THE AGENT OR
ANY LENDER MAY ELECT, and, by execution and delivery hereof, the Borrower
accepts and consents for itself and in respect to its property, generally and
unconditionally, the exclusive jurisdiction of the aforesaid courts, unless
waived in writing by the Agent and the Majority Lenders.  EACH OF THE BORROWER, THE AGENT AND THE
LENDERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND ALL
RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AMENDMENT OR ANY OTHER LOAN
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN), OR ACTIONS OF THE BORROWER, ANY AFFILIATE OF THE BORROWER,
THE AGENT OR ANY LENDER.  THIS PROVISION
IS A MATERIAL INDUCEMENT FOR THE AGENT AND THE LENDER ENTERING INTO THIS
AMENDMENT.

10.  Headings.  The descriptive headings of the various
provisions of this Amendment are inserted for convenience of reference only and
shall not be deemed to affect the meaning or construction of any of the
provisions hereof.

11.  Writings Only.  BORROWER HEREBY ACKNOWLEDGES AND AGREES THAT
NO TERM OR PROVISION OF THE AGREEMENT, THE NOTES OR ANY OF THE OTHER LOAN
DOCUMENTS MAY BE CHANGED, WAIVED, SUPPLEMENTED OR OTHERWISE MODIFIED VERBALLY,
BUT ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE RELEVANT PARTIES, AS FURTHER
PROVIDED IN SECTION 12.2 OF THE CREDIT AGREEMENT.

12.  Counterparts.  This Amendment may be executed in any number
of counterparts, and by the different parties on the same or separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original, but all of which together shall 

 5
 

constitute one and the same
agreement.  Telecopied signatures hereto
and to the Confirming Consent shall be of the same force and effect as an
original of a manually signed copy.

[Signature Page Follows]

 6

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their respective duly authorized officers.

	
  

  	
  BANK OF SCOTLAND,

  
	
   

  	
  Individually and as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FH PARTNERS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[Signature
Page to Amendment No. 3 to Revolving Credit Agreement]

Annex A

CONFIRMING CONSENT

Reference is hereby made to the foregoing Amendment
dated as of August 22, 2007 (the “Amendment”) to the Revolving Credit
Agreement dated as of August 26, 2005 among the Borrower, the Lenders and the
Agent; said agreement, as amended and modified by the Amendment and from time
to time hereafter further amended or otherwise modified, the “Amended  Agreement”.

Each Guarantor hereby consents to the terms and
provisions of the Amendment and confirms and acknowledges that:

(a)  its
obligations under the Loan Documents to which it is a party remain in full
force and effect and the terms “Obligations” and “Secured Obligations” used in
such Loan Documents include all Obligations of the Borrower under the Amended
Agreement; and

(b)  its
consent and acknowledgement hereunder is not required under the terms of such
Loan Documents and any failure to obtain its consent or acknowledgment to any
subsequent amendment to the Agreement or the Amended Agreement or any of the
other Loan Documents will not affect the validity of its obligations under the
aforesaid Loan Documents or any other Loan Document, and this consent and
acknowledgement is being delivered for purposes of form only.

Capitalized terms used herein and not otherwise defined have the same
meanings as in the Amended Agreement. 
This Consent is dated as of the Amendment Closing Date (as defined in
the Amendment).

	
  FIRSTCITY FINANCIAL CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice
  President

  
	
   

  
	
  FIRSTCITY COMMERCIAL
  CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice
  President

  
	
   

  
	
  FIRSTCITY EUROPE
  CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice
  President

  

 

 

	
  FIRSTCITY HOLDINGS CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice
  President

  
	
   

  
	
  FIRSTCITY INTERNATIONAL
  CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice
  President

  
	
   

  
	
  FIRSTCITY MEXICO, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice
  President

  
	
   

  
	
  FIRSTCITY SERVICING
  CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  
	
   

  	
  Title: Executive Vice
  President

  

 

EXHIBIT
1

KPMG
INDEMNITY

June 5, 2007 

Private

C.P.A. Enrique Moran

FirstCity Mexico, S.A. de C.V. 

Francisco de Quevedo 117, Piso 2 

Col. Arcos Vallarta 44130

Guadalajara, Jalisco

Dear Enrique:

We are pleased to submit our
proposal for professional services regarding transfer pricing to Administracion
de Carteras Empresariales S. de R.L. de C.V., Administracion de Carteras
Nacionales S. de R.L. de C.V., Administracion de Carteras Nacionales II S. de
R.L. de C.V., Cartera en Administracion y Cobranza S. de R.L. de C.V., Cobranza
Internacional de Carteras S. de R.L. de C.V., Cobranza Nacional de Carteras S.
de R.L. de C.V. FirstCity Mexico S.A. de C.V., Integracion de Activos Mexicanos
S. de R.L. de C.V., Notmex, S.A. de C.V. SOFOM ENR, Recuperacion de Activos
Mexicanos S. de R.L. de C.V., Recuperacion de Carteras Mexicanas S. de R.L. de
C.V., Residencial Oeste S. de R.L. de C.V., Residencial Oeste 2 S. de R.L. de
C.V., Solucion de Activos Comerciales S. de R.L. de C.V., Solucion de Activos
Residenciales S. de R.L. de C.V., Solucion de Creditos Comerciales S. de R.L.
de C.V. and Servicios Efectivos de Recuperacion S.A. de C.V. (hereinafter
referred to as “The Companies”). By this mean we confirm the terms and conditions of the agreement that
KPMG Cardenas Dosal, S.C. (hereinafter “KPMG”), will perform to assist The
Companies to comply with their transfer pricing obligations regarding the
transactions performed by The Companies with its foreign based related parties;
and the opinion letters regarding the transactions performed in Mexico between
The Companies during fiscal year 2006.

I.
Background

It is our understanding
that The Companies is a group of Mexican entities primarily engaged in the
recovery of overdue loans. It is also our understanding that The Companies
performed the following transactions with foreign and Mexican related parties,
during fiscal year 2006:

	
  Company

  	
   

  	
  Main Activity

  	
   

  	
  Operations with foreign

  and Mexican related

  parties

  
	
  Integracion de Activos Mexicanos S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans.

  	
   

  	
  · Financing*.

  · Payment of
  administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Servicios Efectivos de Recuperacion S.A. de C.V.

  	
   

  	
  Rendering of administrative services

  	
   

  	
  a Payment of commissions*.

  ·
  Rendering of administrative services. 

  a Payment of technical assistance.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Recuperacion de Activos Mexicanos S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans.

  	
   

  	
  · Financing*.

  · Payment of
  administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Firstcity Mexico S.A. de C.V.

  	
   

  	
  Rendering of administrative services

  	
   

  	
  a Financing*. 

  a Rendering of administrative services. 

  a Payment of technical assistance.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Solucion de Activos Comerciales S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans.

  	
   

  	
  a Financing*. 

  a Payment of administrative services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Solucion de Activos Residenciales S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans.

  	
   

  	
  a Financing*.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notmex, S.A. de C.V. SOFOM ENR

  	
   

  	
  Finance Society of Multiple Object.

  	
   

  	
  a Financing*.

  

 

*Transaction
performed with foreign based related parties.

On the other side, it is
also our understanding that The Companies performed the following transactions
only with Mexican related parties, during fiscal year 2006:

 2
 

 

	
  Company

  	
   

  	
  Main Activity

  	
   

  	
  Operations with

  Mexican related parties

  
	
  Administracion de Carteras Nacionales S. de R.L. de
  C.V.

  	
   

  	
  Recovery of overdue loans.

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administracion de Carteras Nacionales II S. de R.L. de
  C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administracion de Carteras Empresariales S. de R.L. de
  C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cobranza Internacional de Carteras S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cobranza Nacional de Carteras S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Recuperacion de Carteras Mexicanas S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Residencial Oeste S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cartera en Administracion y Cobranza S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Solucion de Creditos Comerciales S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Residencial Oeste 2 S. de R.L. de C.V.

  	
   

  	
  Recovery of overdue loans

  	
   

  	
  ·  Payment of administrative
  services.

  

 

Due to the previously
mentioned, the intercompany transactions by which it is required to know if
they comply with transfer pricing regulations are the following:

·        Financing,

·        Rendering of administrative services,

·        Payment of commissions, and

·        Payment of technical assistance.

 3
 

II. Scope of Engagement

Our work will be performed
based on the information provided by you and we will not issue any opinion
regarding the reasonability of the figures involved, every time that the
procedures to apply do not constitute an audit of the financial statements or
the information provided to us in order to fulfill our work.

The purpose of our work will
be to assist The Companies to fulfill its transfer pricing documentation
obligations, and to evaluate if the prices, amounts of compensation or profit
margins of the transactions performed by The Companies with its foreign related
parties are similar those which would have been agreed between independent
parties in comparable transactions, according to Articles 86-XII and 215 of the
Mexican Income Tax Law (MITL), during fiscal year 2006, and to determine if the
prices, amounts of compensation or profit margins of the transactions performed
by The Companies with its Mexican related parties, are similar to those which
would have been agreed between independent parties in comparable transactions,
according to Article 86-XV of the MITL.

This proposal covers only
the elaboration of the transfer pricing analysis for the transactions performed
with the related parties mentioned in the Background section, and does not
include the filing for an advanced pricing agreement with the tax authorities,
in order to obtain a transfer pricing ruling. In such case, a request for an
advanced pricing agreement would be evaluated once the transfer pricing study
is concluded.

According to Article 86-XII of the MITL for fiscal
year 2006, the transfer pricing analysis with respect to the transactions
carried out with foreign related parties, must be performed for each type of
transaction (sales, purchases, services, among others). Also, the informative
tax return regarding transactions with foreign related parties requires that
the information of these transactions be filed per type of transaction.
Therefore, in order to support the information that will be filed in the
informative tax return for fiscal year 2006, as well as to fulfill the
applicable tax provisions for said fiscal year, our work will consist of
analyzing separately each type of transaction performed by The Companies with
its foreign related parties, during fiscal year 2006. The transfer pricing
analysis of the transactions performed between The Companies and its Mexican
related parties will be performed on the same basis.

 4
 

We will keep in strict confidentiality any documentation and
information that may be furnished to us in order to perform our work, as well
as the results obtained in the analysis. No information will be disclosed to
any other party unless it is specifically requested by The Companies.

The scope of our work will be limited to prepare a
transfer pricing studies for fiscal year 2006, which will include the
transactions carried out by The Companies with its foreign related parties,
mentioned in the Background section, and to determine if the prices, amounts of
compensation or profit margins of these transactions are similar to those which
would be agreed between independent parties in comparable transactions. At the
end, we will provide you with a report that will consist of the following:

Section
I:     Introduction 

Section
II: Business Overview

Section
III: Transactions with Foreign Related Parties

Section
IV: Economic Analysis

Section
V: Conclusions 

Section VI: Appendixes

Likewise, regarding the transactions performed with
the Mexican related parties mentioned in the Background section of this
proposal, we will provide opinion letters containing the following:

Section
I:     Introduction 

Section
II: Business Overview

Section
III: Analysis and Results

Section IV: Conclusions

III. Work Plan

We anticipate that the project will take
approximately twelve weeks to carry out and deliver the transfer pricing report
for fiscal year 2006, once we have all the information required to perform our
work. This timetable depends on a timely support from The Companies’ personnel
to our information requirements, as well as on the quality of such information.
During the elaboration of the project, we will make our best effort to deliver
it on the time stipulated in this engagement letter. Unanticipated events may
require some modification of the timetable as well as of our fees. We will
notify you of these events as soon as they arise.

 5
 

Startup of the project will be scheduled once we receive a signed copy
with your approval of our proposal.

Our work will be performed according to the following stages:

Information
requirement: An information requirement will be submitted to The
Companies’ personnel in order to obtain the information necessary to start the
transfer pricing studies.

Data
gathering: A meeting with The Companies’ personnel will be
carried out in order to gather and to review the information required in the
previous stage.

Functional
analysis/Background: With the information obtained, we will carry out
the functional analysis of The Companies, which consists of a detailed
description of its functions and transactions with its foreign related parties.
Regarding the opinion letters, we will prepare a description of the
intercompany transactions performed with Mexican related parties.

Transfer
pricing methodology: We will apply the best transfer pricing methodology
for each type of transaction performed with related parties, including the
comparable companies search, the economic adjustments that may apply and the
results.

Transfer
pricing report and opinion letter: We will prepare the drafts
for discussion purposes of the report and the opinion letters, which will
contain the functional analysis, the economic analysis, the results and our
conclusions, as well as the appendixes, which support the work performed.

Draft
review: We will deliver the drafts for discussion purposes, for your review
and comments. If necessary, we will schedule a meeting to go over the work
performed, as well as the results obtained.

Final version: Once The Companies has reviewed the drafts
and provided us its comments, we will prepare and deliver the final versions of
the transfer pricing reports, and the opinion letters.

 6
 

As a result of our work we will issue opinions which
will be based on the current applicable Mexican regulations in force. Such
regulations may be modified or abrogated at any moment. As a result, such
changes may affect the future validity of our conclusions, which would be
updated in the event that The Companies requests it from us, causing additional
fees. Our comments will not constitute a resolution of mandatory application.
Thus, third parties may not agree with them.

IV.      Staffing

The success of our transfer pricing
projects is attributable to the team work of our specialized staff. KPMG has a
professional team with experience in serving the needs of corporations with
respect to transfer pricing. In this analysis we will incorporate economical
and fiscal issues with transfer pricing applications. The successful synergy of
these two perspectives is our signature and what we believe makes us different from our
competitors.

Our project team will
consist of myself, Partner of the Tax Practice, Jose Casas, Transfer Pricing
Partner, Alma Gutierrez, Transfer Pricing Manager, as well as members from our staff specialized in
this area. I will be responsible for the project, while Alma Gutierrez will
direct the project on a day-to-day basis.

V.       Fees

Our professional fees for
the transfer pricing report and opinion letter of 2006 will be of $30,000 US
dollars, plus Value Added Tax (“VAT”). We will require a 60% advanced payment
at the beginning of our work, 20% will be invoiced the following month and the
rest will be required once we deliver the draft for discussion
purposes. Any out-of-pocket expenses will be charged separately, previous
authorization of The Companies before incurring them.

Our fees are based on the
degree of responsibility and skills involved and the time necessary to conduct
the work. Circumstances encountered during the rendering of our services that
warrant additional time and expense may cause us to be unable to deliver them
within the time and amount listed above. We will notify you of any circumstances
as they are assessed.

 7
 

***********

We are pleased to have the
opportunity to submit our proposal of professional services, and express our
commitment to deliver a high quality service. If you accept this proposal, we
would ask you to sign where indicated and send us a copy for our files.

Our advice is for the sole
benefit of The Companies based upon your specific facts and circumstances. It
should not be relied upon by others. In the event that a third party takes
legal action, resulting from the use or possession of KPMG Cardenas Dosal, S.C.’s advice, The
Companies will compensate KPMG Cardenas Dosal, S.C. for such legal action, the
derived contingencies and costs.

In connection with this
engagement, you agree that the liability to The Companies of KPMG Cardenas
Dosal, S.C., (its partners, directors, employees and agents under statute
otherwise) for any loss or damage suffered by you arising
out of or in connection with our work, however the loss or damage is caused,
including our negligence but nor our willful default, shall be limited to the
amount of the fees established in this engagement letter.

We are currently carrying
out the internal process that our international policies require to document
our understanding and evaluation of professional risk for the acceptance of new
clients based on information provided to us by the management of The Companies
that is being verified by our specialists. We do not anticipate any change
derived from this procedure; nevertheless, in the case that some circumstance
exists which obliges us to modify our preliminary evaluation of risk and that
has some impact in this proposal, and as such, we have to resign from rendering
our services, we will promptly contact you.

The Companies authorizes KPMG Cardenas Dosal, S.C.
to use electronic mail (e-mail) and other electronic methods to transmit and
receive information related to our services mentioned in this proposal letter,
including confidential information between KPMG Cardenas Dosal, S.C. and The
Companies, and between KPMG Cardenas Dosal, S.C. and entities and external
specialists, contracted by KPMG Cardenas Dosal, S.C. or by FirstCity Mexico.

 8
 

KPMG Cardenas Dosal, S.C. does not assume any responsibility with
respect to the loss of information or legal action taken for the loss of
confidentiality, related to communication through the Internet.

For the interpretation, execution and fulfillment of
this engagement letter, the parties appearing before the courts of Mexico City,
the Federal District and to the competent federal authorities under federal
laws, and expressly renounce to any other statute that some of the parties have
or have come to consider by reason of its present or future residence or by any
other reason.

This engagement letter, together with its
appendixes, if any, forms the entire agreement and understanding between KPMG
Cardenas Dosal, S.C. and The Companies with respect to the subject matter
hereof. This engagement letter supersedes all previous arrangements and
understandings between the parties with respect to the subject of this
engagement letter, which shall cease to have any further force or effect. Any
variation to the terms of this proposal letter shall be made in writing and
will not be effective unless signed by a partner of KPMG Cardenas Dosal, S.C.
and by a duly authorized representative of The Companies.

This engagement letter is subject to the
authorization policies of The Companies, as well as to KPMG’s policies of risk
evaluation and authorization of service.

If you require further information or clarification, please contact us.

Sincerely,

KPMG Cardenas Dosal, S.C.

Leopoldo
Velazquez 

Tax Partner

	
  c.c.p.: C.P. Jose Casas

  	
   

  	
  – KPMG

  
	
   

  	
  C.P. Luis Enrique Guzman

  	
   

  	
  – KPMG

  
				

 

 9
 

VI.
Approval

I have read and
understand the terms and conditions expressed in this engagement letter, and I
agree to and accept them.

Administracion de Carteras Empresariales S. de R.L. de
C.V. Administracion de Carteras Nacionales S. de R.L. de C.V. Administracion de
Carteras Nacionales II S. de R.L. de C.V. Cartera
en Administracion
y Cobranza S. de R.L. de C.V. Cobranza Internacional de Carteras S. de R.L. de
C.V. Cobranza Nacional de Carteras S. de R.L. de C.V.

FirstCity Mexico S.A. de C.V.

Integracion de Activos Mexicanos S. de R.L. de C.V.
Notmex, S.A. de C.V. SOFOM ENR

Recuperacion de Activos Mexicanos
S. de R.L. de C.V. Recuperacion de Carteras Mexicanas S. de R.L. de C.V.
Residencial Oeste S. de R.L. de C.V.

Residencial Oeste 2 S. de R.L. de
C.V.

Servicios Efectivos de
Recuperacion S.A. de C.V.

Solucion de Activos Comerciales S. de R.L. de C.V.
Solucion de Activos Residenciales S. de R.L. de C.V. Solucion de Creditos
Comerciales S. de R.L. de C

	
  

  	
   

  	
   

  	
   

  
	
  Name and
  Signature

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

 10

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