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EXHIBIT 10.4    
    

FALCON FINANCIAL, LLC  

 THIRD AMENDMENT TO

REVOLVING WAREHOUSE FINANCING AGREEMENT  

        This THIRD AMENDMENT TO REVOLVING WAREHOUSE FINANCING AGREEMENT (this "Third
Amendment") is dated as of April 19, 1999 and entered into by and among Falcon Financial, LLC, SunAmerica Life Insurance Company, LaSalle National Bank and ABN AMRO Bank
N.V., and is made with reference to the Revolving Warehouse Financing Agreement dated as of January 7, 1998 by and among the parties hereto (as amended, the "Warehouse
Agreement"). Capitalized terms used herein without definition shall have the same meanings set forth in the Warehouse Agreement. 

        WHEREAS, the parties hereto have entered into the First Amendment to Revolving Warehouse Financing Agreement as of March 25, 1998
(the "First Amendment"), which added new definitions to, and amended and restated existing definitions in, Article I of the Warehouse Agreement
for the purpose of clarifying certain terms relating to the franchise loans eligible to be financed under the Warehouse Agreement; 

        WHEREAS, the parties hereto have entered into the Second Amendment to Revolving Warehouse Financing Agreement as of October 2, 1998
(the "Second Amendment"), which amended the recitals, added new definitions to, and amended and restated existing definitions in, Article I of
the Warehouse Agreement and amended certain other sections of the Warehouse Agreement to provide for the financing of mortgage loans under the Warehouse Agreement; 

        WHEREAS, the parties have extended the Facility Termination Date of the Warehouse Agreement to October 31, 1999; 

        WHEREAS, the parties to the Amended and Restated Senior Subordinated Loan Agreement dated as of January 7, 1998 have entered into
the Third Amendment to the Amended and Restated Senior
Subordinated Loan Agreement of even date herewith to provide for an increase in the working capital facility; 

        WHEREAS, Customer and Falcon Auto Venture LLC have entered into the Junior Subordinated Loan Agreement (as it may be amended, modified or
supplemented from time to time, the "Junior Subordinated Loan Agreement") of even date herewith; 

        WHEREAS, the parties desire to further amend the Warehouse Agreement to reflect the increase in the working capital facility under the
Senior Subordinated Loan Agreement and the existence of the Junior Subordinated Loan Agreement; 

        WHEREAS, the parties hereto disclaim any intent to effect a novation or an extinguishment or discharge of any liability or obligation
under the Warehouse Agreement arising prior to the date of this Third Amendment; 

        NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth herein, the parties hereto agree as
follows: 

 Section 1. AMENDMENTS TO WAREHOUSE AGREEMENT.  

1.1    Additional Definitions.    Article I is amended by adding the
following definitions thereto in appropriate alphabetical order: 

        A.    "Junior Interest Capitalization Note" means the note evidencing the
interest capitalized with respect to the Junior Subordinated Note pursuant to the Junior Subordinated Loan Agreement, as it may be amended, modified or supplemented from time to time. 

        B.    "Junior Subordinated Lender" means the Lender named in the Junior
Subordinated Loan Agreement, and its successors and assigns. 

 

        C.    "Junior Subordinated Loan Agreement" means the Junior Subordinated Loan
Agreement dated as of April 19, 1999 by and between Customer, as borrower thereunder, and Falcon Auto Venture LLC, as lender, as it may be amended, modified or supplemented from time to time. 

        D.    "Junior Subordinated Note" means the 12% subordinated note due
October 1, 2004 in the aggregate principal amount of not more than $500,000, issued by Customer pursuant to the Junior Subordinated Loan Agreement, as it may be amended, modified or
supplemented from time to time. 

        E.    "Senior Interest Capitalization Notes" means the Amended and Restated
Interest Capitalization Notes evidencing the interest capitalized with respect to the Senior Subordinated Notes pursuant to the Senior Subordinated Loan Agreement, as they may be amended, modified or
supplemented from time to time. 

        F.    "Senior Subordinated Lenders" means the Lenders named in the Senior
Subordinated Loan Agreement, and their successors and assigns. 

        G.    "Senior Subordinated Notes" means the Amended and Restated 12%
subordinated notes due October 1, 2004 in the aggregate principal amount of not more than $19,300,000, issued by Customer pursuant to the Senior Subordinated Loan Agreement, as they may be
amended, modified or supplemented from time to time. 

1.2    Amendments to Existing Definitions.    Article I is amended by
amending the following definitions as indicated: 

        A.    The definition of "Interest Capitalization Notes" is amended and restated
in its entirety as follows: "Interest Capitalization Notes" means the Senior Interest Capitalization Notes and the Junior Interest Capitalization Note. 

        B.    The definition of "Subordinated Lenders" is amended and restated in its
entirety as follows: "Subordinated Lenders" means the Senior Subordinated Lenders and the Junior Subordinated Lender. 

        C.    The definition of "Subordinated Notes" is amended and restated in its
entirety as follows: "Subordinated Notes" means the Senior Subordinated Notes and the Junior Subordinated Note. 

        D.    The definition of "Transaction Documents" is amended by adding the phrase
"the Junior Subordinated Loan Agreement," immediately following the phrase "the Senior Subordinated Loan Agreement". 

1.3    Amendments to Section 2.5.    

        A.    Each of subparagraphs (viii) and (ix) of paragraph (c) of Section 2.5 are amended by adding the word
"Senior" immediately prior to (x) the phrase "Subordinated Lenders" and (y) the phrase "Interest Capitalization Notes". Such subparagraph (ix) is further amended by deleting the
word "and" at the end of such subparagraph. 

        B.    Paragraph (c) of Section 2.5 is amended by inserting the following new subparagraphs (x) and (xi)
after subparagraph (ix): 

       "(x)  tenth, to the Junior Subordinated Lender, the amount equal to the interest accrued and unpaid through that day on the
Junior Interest Capitalization Note; 

      "(xi)  eleventh, to the Junior Subordinated Lender, the amount equal to the interest accrued and unpaid through that day on
the Junior Subordinated Note (to the extent not converted into the Junior Interest Capitalization Note); and" 

        C.    Subparagraph (x) of paragraph (c) of Section 2.5 is amended as follows: (i) by renaming such
subparagraph "(xii)," and (ii) deleting the word "tenth" and replacing it with "twelfth." 

2

 

1.4   Amendments to Section 2.6.  

        A.    Each of subparagraphs (vii), (viii), (ix) and (x) of paragraph (b) of Section 2.6 is amended
by adding the word "Senior" immediately prior to the phrase "Subordinated Lenders". 

        B.    Each of subparagraphs (vii), (viii) and (ix) of paragraph (b) of Section 2.6 are further amended by
adding the word "Senior" immediately prior to the phrase "Interest Capitalization Notes". 

        C.    Subparagraph (x) of paragraph (b) of Section 2.6 is further amended by deleting the word "and" at the
end of such subparagraph. 

        D.    Paragraph (b) of Section 2.5 is amended by inserting the following new subparagraphs (xi) through
(xiv) after subparagraph (x): 

      "(xi)  eleventh, to the Junior Subordinated Lender, the amount equal to the interest accrued and unpaid through that day on
the Junior Interest Capitalization Note; 

       (xii)  twelfth, to the Junior Subordinated Lender, the amount equal to the interest accrued and unpaid through that day on the
Junior Subordinated Note (to the extent not converted into the Junior Interest Capitalization Note); 

      (xiii)  thirteenth, to the Junior Subordinated Lender, the amount of principal on the Junior Interest Capitalization Note, to
the extent due and payable as of such date; 

      (xiv)  fourteenth, to the Junior Subordinated Lender, the amount of principal of the Junior Subordinated Note, to the extent
due and payable as of such date; and" 

        E.    Subparagraph (xi) of paragraph (b) of Section 2.6 is amended as follows: (i) by renaming such
subparagraph "(xv)," and (ii) by deleting the word "eleventh" and replacing it with
"fifteenth." 

1.5    Amendment to Section 3.1.    The second and third sentences of
paragraph (v) of Section 3.1 are amended and restated in their entirety as follows: 

        "The
subordination provisions of the Senior Subordinated Loan Agreement and Junior Subordinated Loan Agreement, respectively, will be enforceable against the holders thereof or Persons
party thereto, as applicable, and all Customer Obligations are within the definition of "Senior Loan Obligations"
included in such provisions. The aggregate principal amount of Senior Subordinated Notes available pursuant to the Senior Subordinated Loan Agreement is $19,300,000, together with the aggregate
principal amount of the Senior Interest Capitalization Notes delivered pursuant to the Senior Subordinated Loan Agreement; the aggregate principal amount of the Junior Subordinated Note available
pursuant to the Junior Subordinated Loan Agreement is $500,000, together with the aggregate principal amount of the Junior Interest Capitalization Note delivered pursuant to the Junior Subordinated
Loan Agreement." 

1.6    Amendment to Section 5.2.    Section 5.2(a) is amended by
adding the following clause after clause (iii): 

        "Liens
incurred pursuant to the Senior Subordinated Loan Agreement." 

1.7    Amendment to Section 7.1.    Section 7.1 is amended by adding
the following parenthetical clause to the introductory clause of Section 7.1 immediately following the phrase "shall constitute a "Termination Event"": 

        "(provided,
that notwithstanding the following provisions of this Section 7.1 and in light of the subordinated position of the obligations under the Junior Subordinated Loan
Agreement, an Event of Default under the Junior Subordinated Loan Agreement, including but not limited to a failure to make a scheduled interest payment when due, shall not constitute a Termination
Event hereunder):". 

3

 

 Section 2. MISCELLANEOUS.  

2.1    Reference to and effect on the Warehouse Agreement and other documents relating to the Warehouse
Agreement.    

        A.    On and after the date hereof, each reference in the Warehouse Agreement to "this Agreement", "hereunder", "hereof",
"herein" or words of like import referring to the Warehouse Agreement, and each reference in any other document relating to the Warehouse Agreement to the "Warehouse Agreement", "thereunder",
"thereof", or words of like import referring to the Warehouse Agreement
shall mean and be a reference to the Warehouse Agreement as amended by the First Amendment, the Second Amendment and this Third Amendment. 

        B.    Except as specifically amended by the First Amendment, the Second Amendment and this Third Amendment, the Warehouse
Agreement and any other documents relating to the Warehouse Agreement shall remain in full force and effect and are hereby ratified and confirmed. 

        C.    The execution, delivery and performance of the First Amendment, the Second Amendment and this Third Amendment shall not,
except as expressly provided therein and herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of the parties under, the Warehouse Agreement or any
other document relating to the Warehouse Agreement. 

2.2    Execution in Counterparts.    This Third Amendment may be executed in any
number of counterparts, and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts taken together
shall constitute but one and the same instrument. 

2.3    Headings.    Section and subsection headings in this Third Amendment are
included herein for convenience of reference only and shall not constitute a part of this Third Amendment for any other purpose or be given any substantive effect. 

2.4    Applicable Law.    THIS THIRD AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HERETO AND ALL OTHER ASPECTS HEREOF SHALL BE DEEMED TO BE MADE UNDER, SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 

[Remainder
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        IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be executed by their respective duly authorized officers as of
the date first above written. 

	

 	
 	
FALCON FINANCIAL, LLC
	

 	
 	

By:	
 	

/s/  DAVID A. KARP      
 Name: David A. Karp

Title: Chief Operating Officer
	

 	
 	
SUNAMERICA LIFE INSURANCE COMPANY
	

 	
 	

By:	
 	

/s/  JOHN G. LAPHAM, III      
 Name: John G. Lapham, III

Title: Authorized Agent
	

 	
 	
LASALLE NATIONAL BANK
	

 	
 	

By:	
 	

/s/  COLIN DONLAN      
 Name: Colin Donlan

Title: Trust Officer
	

 	
 	
ABN AMRO BANK N.V.
	

 	
 	

By:	
 	

/s/  THOMAS J. EDUCATE      
 Name: Thomas J. Educate

Title: Group Vice President
	

 	
 	

By:	
 	

/s/  THERESE M. GREMLEY      
 Name: Therese M. Gremley

Title: Vice President

S-1

 

        ACKNOWLEDGED AND AGREED as of the date first above written pursuant to Section 2 of the Participation Agreement dated as of
January 7, 1998 between SunAmerica Life Insurance Company and the undersigned. 

	 	 	GOLDMAN SACHS MORTGAGE COMPANY
	

 	
 	

By:	
 	

GOLDMAN SACHS REAL ESTATE FUNDING CORP., its general partner
	

 	
 	

By:	
 	

/s/  ROBERT CHRISTIE      
 Name: Robert Christie

Title: Vice President

S-2

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EXHIBIT 10.5    
    

FALCON FINANCIAL, LLC  

 FOURTH AMENDMENT TO

REVOLVING WAREHOUSE FINANCING AGREEMENT  

        This FOURTH AMENDMENT TO REVOLVING WAREHOUSE FINANCING AGREEMENT (this "Fourth
Amendment") is dated as of October 29, 2001 and entered into by and among Falcon Financial, LLC, SunAmerica Life Insurance Company, LaSalle National Bank and ABN AMRO
Bank N.V., and is made with reference to the Revolving Warehouse Financing Agreement dated as of January 7, 1998 by and among the parties hereto (as amended, the  "Warehouse Agreement"). Capitalized
terms used herein without definition shall have the same meanings set forth in the Warehouse Agreement.
 

        WHEREAS, the parties hereto have entered into the First Amendment to Revolving Warehouse Financing Agreement as of March 25, 1998
(the "First Amendment"), which added new definitions to, and amended and restated existing definitions in, Article I of the Warehouse Agreement
for the purpose of clarifying certain terms relating to the franchise loans eligible to be financed under the Warehouse Agreement; 

        WHEREAS, the parties hereto have entered into the Second Amendment to Revolving Warehouse Financing Agreement as of October 2, 1998
(the "Second Amendment"), which amended the recitals, added new definitions to, and amended and restated existing definitions in, Article I of
the Warehouse Agreement and amended certain other sections of the Warehouse Agreement to provide for the financing of mortgage loans under the Warehouse Agreement; 

        WHEREAS, the parties hereto have entered into the Third Amendment to Revolving Warehouse Financing Agreement as of April 19, 1999
(the "Third Amendment"), which amended the Warehouse Agreement to reflect the increase in the working capital facility under the Senior Subordinated
Loan Agreement and the existence of the Junior Subordinated Loan Agreement; 

        WHEREAS, the parties to the Senior Subordinated Loan Agreement have entered into the Fourth Amendment to the Senior Subordinated Loan
Agreement of even date herewith to provide for the availability of certain Bridge Loans (as defined therein) and certain other amendments to the Senior Subordinated Loan Agreement; 

        WHEREAS, the parties hereto disclaim any intent to effect a novation or an extinguishment or discharge of any liability or obligation
under the Warehouse Agreement arising prior to the date of this Fourth Amendment; 

        NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth herein, the parties hereto agree as
follows: 

 Section 1. AMENDMENTS TO WAREHOUSE AGREEMENT.  

1.1    Amendments to Existing Definitions.    Section 1.1 of the Warehouse
Agreement is amended by amending and restating the following definitions in their entirety: 

        "'Applicable Margin' means 3%." 

        "'Facility Limit' means (i) during the period from and including October 15, 2001 through and including March 31,
2002, an amount equal to $166,000,000 and (ii) at all other times, $150,000,000." 

        "'Momentum Loans' means the participation certificates in connection with the mortgage loan in the original principal amount of
$14,290,000.00 to Momentum Lease Holdings, LLC. 

        "'Reich Acquisition Loan' means the mortgage loan in the original principal amount of $4,000,000.00 to Reich Acquisition One, LP. 

 

1.2    Amendment to Section 2.4(b).    Section 2.4(b) of the Warehouse
Agreement is amended by adding the following clause at the end of the section: 

";  provided further that, as of the consummation of the first Securitization Transaction after the date of the Fourth Amendment and subject to
SunAmerica's consent as provided for in Section 2.12(b), if Customer does not include any Receivable and its related Warehouse Assets in any Securitization Transaction for reasons other than
the date of origination of such Receivable, then the Investment of Principal used to acquire such Receivable shall accrue Interest at its Applicable Rate plus 100 basis points from the consummation of
the first Securitization Transaction following the origination of such Receivable; provided further that each Momentum Loan and the Reich Acquisition
Loan shall accrue Interest at its Applicable Rate whether or not Customer includes such Momentum Loan or the Reich Acquisition Loan in any of the next three Securitization Transactions after the date
of the Fourth Amendment unless any such Momentum Loan or the Reich Acquisition Loan is in default (as defined therein), in which case, such Momentum Loan or the Reich Acquisition Loan shall accrue
Interest at its Applicable Rate plus 100 basis points from the date of such default." 

1.3    Amendment to Section 2.11(e).    Section 2.11(e) of the
Warehouse Agreement is amended by adding the following sentence at the end of the section: "Customer shall deliver to SunAmerica, no later than the Interest Payment Date, a servicing report in a
format and containing such information that is reasonably satisfactory to SunAmerica and Customer. Such report shall be made available in both written and electronic format." 

1.4    Amendment to Section 5.1(k).    Section 5.1(k) of the Warehouse
Agreement is amended by deleting the reference to "$200,000" in clause (b) and replacing it with a reference to "$400,000". 

1.5    Amendment to Section 7.1:    Section 7.1 of the Warehouse
Agreement is amended by adding after clause (t) the following clause: 

        "(u)
the Aggregate Principal Outstanding exceeds $150,000,000 on or after April 1, 2002." 

1.6    Amendment to Schedule 1.1(a).    Schedule 1.1(a) to the
Warehouse Agreement (relating to Loan Origination Guidelines) is hereby amended and restated in its entirety as set forth on Exhibit A attached
to this Fourth Amendment. 

 Section 2. MISCELLANEOUS.  

2.1    Reference to and effect on the Warehouse Agreement and other documents relating to the Warehouse
Agreement.    

        A.    On and after the date hereof, each reference in the Warehouse Agreement to "this Agreement", "hereunder", "hereof",
"herein" or words of like import referring to the Warehouse Agreement, and each reference in any other document relating to the Warehouse Agreement to the "Warehouse Agreement", "thereunder",
"thereof", or words of like import referring to the Warehouse Agreement shall mean and be a reference to the Warehouse Agreement as amended by the First Amendment, the Second Amendment, the Third
Amendment and this Fourth Amendment. 

        B.    Except as specifically amended by the First Amendment, the Second Amendment, the Third Amendment and this Fourth
Amendment, the Warehouse Agreement and any other documents relating to the Warehouse Agreement shall remain in full force and effect and are hereby ratified and confirmed. 

        C.    The execution, delivery and performance of the First Amendment, the Second Amendment, the Third Amendment and this Fourth
Amendment shall not, except as expressly provided therein and herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of 

2

 

the
parties under, the Warehouse Agreement or any other document relating to the Warehouse Agreement. 

2.2    Execution in Counterparts.    This Fourth Amendment may be executed in any
number of counterparts, and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts taken together
shall constitute but one and the same instrument. 

2.3    Headings.    Section and subsection headings in this Fourth Amendment are
included herein for convenience of reference only and shall not constitute a part of this Fourth Amendment for any other purpose or be given any substantive effect. 

2.4    Further Assurances.    The parties to this Fourth Amendment agree to execute
and deliver any additional information, documents or agreements contemplated hereby and/or necessary or appropriate to effect and perform the actions contemplated hereby. 

2.5    Applicable Law.    THIS FOURTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HERETO AND ALL OTHER ASPECTS HEREOF SHALL BE DEEMED TO BE MADE UNDER, SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 

[Remainder
of page intentionally left blank] 

3

   
        IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed by their respective duly authorized officers as of
the date first above written. 

	 	 	FALCON FINANCIAL, LLC
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  DAVID A. KARP      

	 	 	 	 	Name:	 	David A. Karp
	 	 	 	 	Title:	 	President
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	
SUNAMERICA LIFE INSURANCE COMPANY
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  THOMAS N. DANKLER      

	 	 	 	 	Name:	 	Thomas N. Dankler
	 	 	 	 	Title:	 	Authorized Agent
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	
LASALLE NATIONAL BANK
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  KARON F. GREENE      

	 	 	 	 	Name:	 	Karon F. Greene
	 	 	 	 	Title:	 	Assistant Treasurer
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	
ABN AMRO BANK N.V.
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  THERESE M. GREMLEY      

	 	 	 	 	Name:	 	Therese M. Gremley
	 	 	 	 	Title:	 	Vice President
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  S. SEAN CHEN      

	 	 	 	 	Name:	 	S. Sean Chen
	 	 	 	 	Title:	 	Senior Vice President

S-1

 

        ACKNOWLEDGED AND AGREED as of the date first above written pursuant to Section 2 of the Participation Agreement dated as of
January 7, 1998 between SunAmerica Life Insurance Company and the undersigned. 

	 	 	GOLDMAN SACHS MORTGAGE COMPANY
	

 	
 	

By:	
 	

GOLDMAN SACHS REAL ESTATE FUNDING CORP., its general partner
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  ROBERT CHRISTIE      

	 	 	 	 	Name:	 	Robert Christie
	 	 	 	 	Title:	 	Vice President

S-2

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EXHIBIT 10.5

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