Document:

Exhibit 10.3

Exhibit 10.3

COMMERCIAL NOTE

(REVOLVING LINE OF CREDIT)

	 	 	 	 	 	 	 

	Borrower:

	 	IOWA RENEWABLE ENERGY,
LLC
1701
East 7th Street

P.O. Box 2

Washington, IA 52353
	 	Lender:
	 	MLIC ASSET HOLDINGS LLC

4500 Westown Parkway, Suite 330A

West Des Moines, IA 50266

FEDERATION BANK

102 East Main Street

Washington, IA 52353

WASHINGTON STATE BANK

121 South Marion Avenue

Washington, IA 52353

			
	 	 	 
	Principal Amount: $6,000,000.00
	 	Date of Note: September 1, 2010

PROMISE TO PAY. For value received, IOWA RENEWABLE ENERGY, LLC (“Borrower”) promises to pay on or
before the Due Date (as hereinafter defined) to the order of MLIC ASSET HOLDINGS LLC, FEDERATION
BANK and WASHINGTON STATE BANK (collectively, the “Lender”) at Washington State Bank, Washington,
Iowa, or at any other place designated at any time by the holder of this Note, in lawful money of
the United States of America, the principal sum of SIX MILLION and 00/100 Dollars
($6,000,000.00), or as much as has been disbursed and remains outstanding on this Note at the Due
Date, as is shown by the Lender’s records, together with interest (calculated on the basis of
actual days elapsed in a year of 365 days) on the unpaid principal of this Note from the date of
this Note until this Note is paid in full.

DUE DATE. This Note shall be due and payable in full on May 31, 2011 (hereinafter referred to as
the “Due Date”).

PAYMENT AND REBORROWING; ADMINISTRATIVE FEE. Borrower shall make monthly payments in an amount
equal to all accrued, but unpaid interest on the Note. Borrower’s first monthly interest payment
is due on the first day of the first month following the first advance under this Note, and all
subsequent interest payments are due on the same day of each month after that. In addition, on
the Due Date, the Borrower shall make one payment in the amount of all unpaid principal and
interest.

Subject to the terms and conditions of the Loan Agreement between the Borrower and Lender of even
date herewith (“Loan Agreement”), the undersigned may borrow, prepay and reborrow under this Note
until the Due Date within the limits of this Note and the Loan Agreement. Any advances made under
this Note shall be at the sole discretion of the Lender and the Lender is not obligated to make
any advance.

Borrower’s final payment will be due on the Due Date, and will be for all principal and all
accrued interest not yet paid. Unless otherwise agreed or required by applicable law, payments
will be applied first to accrued unpaid interest, then to principal, and any remaining amount to
any unpaid collection costs and late charges. Borrower will pay Lender at Lender’s address shown
above or at such other place as Lender may designate in writing.

In addition to the payment of principal and interest on this Note, as set forth above, the
Borrower shall pay to the Lender the Administrative Fee (as defined in the Loan Agreement) in the
amount of Three Thousand Dollars ($3,000.00) each month. The first Administrative Fee payment
shall be made by the Borrower contemporaneous with the execution of the Loan Agreement and each
subsequent Administrative Fee payment shall be paid on the first day of each month thereafter.
The Administrative Fee shall be paid by the Borrower to the Lender whether or not there is a
balance then owed under this Note.

 

 

 

VARIABLE INTEREST RATE. The interest rate on this loan is subject to change from time to time
based on changes in an independent index which is the London Interbank offered rate for U.S.
Dollar deposits published in the Wall Street Journal as the Thirty (30) Day LIBOR Rate (“LIBOR
Rate”). The LIBOR Rate will be adjusted and determined without notice to Borrower as set forth
herein, as of the date of this Note and on the first (1st) day of each calendar month hereafter
(“Interest Rate Change Date”) to the Thirty (30) Day LIBOR Rate which is published in the Wall
Street Journal as the reported rate for the date that is two London Banking Days prior to each
Interest Rate Change Date. “London Banking Day” means any day other than a Saturday or Sunday, on
which commercial banking institutions in London, England are generally open for business. If for
any reason the LIBOR. Rate published by the Wall Street Journal is no longer available and/or
Lender is
unable to determine the LIBOR Rate for any Interest Rate Change Date, Lender may, in its sole
discretion, select an alternate source to determine the LIBOR Rate and will provide notice to
Borrower of the source selected. The LIBOR Rate determined as set forth above shall be referred
to herein as (the “Index”). The Index is not necessarily the lowest rate charged by Lender on its
loans. If the Index becomes unavailable during the term of this loan, Lender may designate a
substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon
Borrower’s request. The interest rate change will not occur more often than each month on the
first (1st) day of each month. Borrower understands that Lender may make loans based on other
rates as well. The Index currently is 0.26% per annum. The interest rate to be applied to the
unpaid principal balance of this loan will be calculated as described in the “INTEREST
CALCULATION METHOD” paragraph using a rate of 12.00 percentage points over the Index, resulting
in an initial rate of 12.26% per annum based on a year of 365 days.

PREPAYMENT PENALTY; MINIMUM INTEREST CHARGE. Borrower agrees that all loan fees and other prepaid
finance charges are earned fully as of the date of the loan and will not be subject to refund
upon early payment (whether voluntary or as a result of default), except as otherwise required by
law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount
owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing,
relieve Borrower of Borrower’s obligation to continue to make payments under the payment
schedule. Rather, early payments will reduce the principal balance due and may result in
Borrower’s making fewer payments. Borrower agrees not to send Lender payments marked “paid in
full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may
accept it without losing any of Lender’s rights under this Note, and Borrower will remain
obligated to pay any further amount owed to Lender. All written communications concerning
disputed amounts, including any check or other payment instrument that indicates that the payment
constitutes “payment in full” of the amount owed or that is tendered with other conditions or
limitations or as full satisfaction of a disputed amount must be mailed or delivered to:
Washington State Bank at the address set forth in the first paragraph of this Note.

LATE CHARGE. If any payment required by this Note is not paid within 15 days after the payment is
due, the undersigned will make an additional payment to the Lender of four percent (4.00%) of the
amount of the late payment (the “Late Fee”).

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest
rate on this Note shall be increased by adding a four (4) percentage point margin (“Default Rate
Margin”). The Default Rate Margin shall also apply to each succeeding interest rate change that
would have applied had there been no default. However, in no event will the interest rate exceed
the maximum interest rate limitations under applicable law.

DEFAULT. Each of the following shall constitute an event of default (“Event of Default”) under
this Note:

Payment Default. Borrower fails to make any payment when due under this Note or any other
indebtedness owed by Borrower to Lender.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Note, the Loan Agreement or in any of the other
loan documents or to comply with or to perform any term, obligation, covenant or condition
contained in any other agreement between Lender (or any of them) and Borrower, including,
without limitation the Construction-Term Loan Documents (as defined in the Loan Agreement).

Default in Favor of Third Parties. Borrower defaults under any loan, extension of credit,
security agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Borrower’s property or
Borrower’s ability to repay any Loan or perform its obligations under this Note, the Loan
Agreement or any of the other loan documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Note, the Loan Agreement or any of the other
loan documents is false or misleading in any material respect, either now or at the time
made or furnished or becomes false or misleading at any time thereafter.

Insolvency. The dissolution or termination of Borrower’s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property,
any assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or against
Borrower.

Defective Collateralization. This Note, the Loan Agreement or any of the other loan
documents ceases to be in full force and effect (including failure of any collateral
document to create a valid and perfected security interest or lien) at any time and for any
reason.

 

 

 

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any
creditor of Borrower or by any governmental agency against any collateral securing this
Note. This includes a garnishment of any of Borrower’s accounts, including deposit
accounts, with Lender. However, this Event of Default shall not apply if there is a good
faith dispute by Borrower as to the validity or reasonableness of the claim which is the
basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice
of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond
for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole
discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any
Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or
revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.
In the event of a death, Lender, at its option, may, but shall not be required to, permit
the Guarantor’s estate to assume unconditionally the obligations arising under the guaranty
in a manner satisfactory to Lender, and, in doing so, cure any Event of Default.

Change in Ownership. Any change of an ownership interest of twenty-five percent (25%) or
more in Borrower.

Adverse Change. A material adverse change occurs in Borrower’s financial condition, or
Lender believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance on this
Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits
under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether or not there
is a lawsuit, including without limitation all attorneys’ fees and legal expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or injunction), and
appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition
to all other sums provided by law.

GOVERNING LAW. This Note will be governed by, construed and enforced in accordance with federal
law and the laws of the State of Iowa. This Note has been accepted by Lender in the State of
Iowa.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the
jurisdiction of the courts of WASHINGTON County, State of Iowa.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Borrower’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted
by applicable law, to charge or setoff all sums owing on the indebtedness against any and all
such accounts, and, at Lender’s option, to administratively freeze all such accounts to allow
Lender to protect Lender’s charge and setoff rights provided in this paragraph.

COLLATERAL. Borrower acknowledges this Note is secured, without limitation, by all Collateral and
Loan Documents described in the Loan Agreement, including, without limitation, the following
documents dated of even date herewith: Security Agreement, Mortgage and Hedge Account Assignment.

U.S.A. PATRIOT ACT. IMPORTANT NOTICE: To help the government fight the funding of terrorism and
money laundering activities, the USA PATRIOT Act requires all banks to obtain and verify the
identity of each person or business that opens an account. When Borrower opens an account Lender
will ask Borrower for information that will allow Lender to properly identify Borrower and Lender
will verify that information. If Lender cannot properly identify within 30 calendar days, Lender
reserves the right to deem all of the balance and accrued interest due and payable immediately.

ERRORS AND OMISSIONS. I agree, if requested by you, to fully cooperate in the correction, if
necessary, in the reasonable discretion of you of any and all loan closing documents so that all
documents accurately describe the loan between you and me. I agree to assume all costs including
by way of illustration and not limitation, actual expenses, legal fees and marketing losses
for failing to reasonably comply with your requests within thirty (30) days.

 

 

 

PURPOSE OF LOAN. The specific purpose of this loan is: Finance the production of bio-diesel at
the Borrower’s Washington, Iowa biodiesel plant.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender
and its successors and assigns.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this
Note without losing them. Borrower and any other person who signs, guarantees or endorses this
Note, to the extent allowed by law, waive presentment, demand for payment, and notice of
dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in
writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender may renew or
extend (repeatedly and for any length of time) this loan or release any party, guarantor or
collateral; or impair, fail to realize upon or perfect Lender’s security interest in the
collateral; and take any other action deemed necessary by Lender without the consent of or notice
to anyone. All such parties also agree that Lender may modify this loan without the consent of or
notice to anyone other than the party with whom the modification is made. The obligations under
this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE,
INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE AND ALL OTHER LOAN
DOCUMENTS RELATING TO THIS DEBT.

	 	 	 	 	 
	 	BORROWER:

IOWA RENEWABLE ENERGY, LLC

 	 
	 	By:  	/s/ Michael J. Bohannan
 	 
	 	 	Michael J. Bohannan  	 
	 	 	its: PresidentExhibit 10.1

Exhibit 10.1

AMENDMENT NO. 7 TO

FIRST AMENDED AND RESTATED FORBEARANCE AGREEMENT

AND AMENDMENT TO CREDIT AGREEMENTS

THIS AMENDMENT NO. 7 TO FIRST AMENDED AND RESTATED FORBEARANCE AGREEMENT AND AMENDMENT TO
CREDIT AGREEMENTS (this “Amendment”), is dated January 7, 2011 and effective as of the
31st day of December, 2010 (the “Amendment Effective Date”), by and among
FRANKLIN CREDIT ASSET CORPORATION (“Franklin Asset”), FRANKLIN CREDIT HOLDING CORPORATION
(“Holding”), Flow 2006 F CORP., FCMC 2006 M CORP., FCMC 2006 K CORP. and THE HUNTINGTON
NATIONAL BANK (“Lender”). This Amendment further amends and modifies a certain First
Amended and Restated Forbearance Agreement and Amendment to Credit Agreements, dated as of December
19, 2008 (as amended, restated, supplemented or otherwise modified from time to time prior to the
Amendment Effective Date, the “Forbearance Agreement”) by and among the parties hereto and
certain other parties to such Forbearance Agreement. All capitalized terms used in this Amendment
and not otherwise defined herein shall have the meanings ascribed to such terms in the Forbearance
Agreement. Franklin Asset, Holding and each Static Loan Borrower (as defined below) shall be
individually an “Amendment Loan Party” and together the “Amendment Loan Parties.”

WHEREAS, Flow 2006 F Corp., FCMC 2006 M Corp., and FCMC 2006 K Corp. (each a “Static Loan
Borrower” and together, the “Static Loan Borrowers”), Franklin Asset, certain other
parties thereto, and Lender are parties to that certain Master Credit and Security Agreement, dated
as of October 13, 2004, as the same has been amended, supplemented, restated, or otherwise modified
prior to the date of this Amendment (the “Franklin Master Agreement”), pursuant to which
Lender holds certain outstanding loans evidenced by (i) a certain Flow 2006 F Corp. note dated
December 1, 2006, in the original principal amount of $19,863,972.93, (ii) a certain FCMC 2006 M
Corp. amended and restated note dated August 30, 2006, in the original principal amount of
$16,183,766.66, and (iii) a certain FCMC 2006 K Corp. amended and restated promissory note dated
August 30, 2006, in the original principal amount of $14,433,383.90 (collectively, the “Static
Loans”);

WHEREAS, the Static Loan Borrowers have defaulted and may continue to default under the
Forbearance Agreement, the Franklin Master Agreement and the promissory notes and other Loan
Documents executed in connection therewith in respect of (i) their failure to make scheduled
principal and interest payments when due thereunder, and (ii) their failure after the Amendment
Effective Date to make any scheduled principal and interest payments due thereunder as a result of
the cash flow from the Mortgage Loans securing the Static Loans being insufficient to pay such
amounts (collectively the defaults under clauses (i) and (ii) above shall be referred to as the
“Identified Forbearance Defaults”);

WHEREAS, pursuant to the terms of the Forbearance Agreement, Lender has agreed not to exercise
its rights to initiate proceedings to foreclose or otherwise realize upon the Mortgage
Loans securing the Static Loans prior to December 31, 2010, and Franklin Asset and the Static Loan
Borrowers have requested that Lender further extend such forbearance; and

 

 

 

WHEREAS, Franklin Asset owns and holds of 100% of the Capital Stock of, among other
Subsidiaries, the Static Loan Borrowers.

NOW, THEREFORE, the parties hereto agree as follows:

1. Extension of Forbearance for the Static Loans. The first sentence of Section 1(a)
of the Forbearance Agreement is deleted and is hereby replaced with the following:

Absent the occurrence and continuance of a Forbearance Default other than an
Identified Forbearance Default, prior to September 30, 2011 (the “Forbearance
Date”), Lender agrees not to initiate collection proceedings or exercise its
remedies under the Loan Documents in respect of any Static Loan against any Loan
Party or any Collateral for such Static Loan or elect to have interest accrue under
the respective Loan Documents at the stated rate applicable after default.

2. Conditions of Effectiveness. This Amendment shall become effective as of the
Amendment Effective Date, upon satisfaction of all of the following conditions precedent:

(a) Lender shall have received execution and delivery of, to the satisfaction of
Lender and its counsel, two (2) duly executed copies of this Amendment; and

(b) The representations contained in the immediately following paragraph shall be true
and accurate.

3. Representations and Warranties. Each Amendment Loan Party represents and warrants
to Lender as follows: except in respect of the Identified Forbearance Defaults, (a) the execution,
delivery, and performance of this Amendment by each Amendment Loan Party has been duly authorized
by all requisite corporate or organizational action on the part of such Amendment Loan Party and
will not violate any of its organizational documents; (c) this Amendment has been duly executed and
delivered by each Amendment Loan Party, and each of this Amendment, the Forbearance Agreement, and
each other Loan Document as amended hereby constitutes the legal, valid, and binding obligation of
each Amendment Loan Party, enforceable against such Amendment Loan Party in accordance with the
terms thereof; and (d) no event has occurred and is continuing, and no condition exists, which
would constitute a Forbearance Default.

4. Ratification and Reaffirmation. Each Amendment Loan Party agrees (i) that all the
obligations, indebtedness, and liabilities of each Static Loan Borrower to Lender under the
Forbearance Agreement are the valid and binding obligations of such Static Loan Borrower; (ii) that
the obligations, indebtedness, and liabilities of each Static Loan Borrower evidenced by each Loan
Document executed and delivered by each Static Loan Borrower is valid and binding without any
present right of offset, claim, defense, or recoupment of any kind and are hereby ratified and
confirmed in all respects; and (iii) that the Liens and security interests granted to Lender as
security for all obligations and liabilities of each Static Loan Borrower under the
Forbearance Agreement and the other Loan Documents are valid and binding and are hereby
ratified and confirmed in all respects.

 

 

 

5. Reference to and Effect on the Loan Documents. Upon the effectiveness of this
Amendment, each reference in the Forbearance Agreement to “Forbearance Agreement and Amendment to
Credit Agreements,” “Forbearance Agreement,” “Agreement,” the prefix “herein,” “hereof,” or words
of similar import, and each reference in the Loan Documents to the Forbearance Agreement, shall
mean and be a reference to the Forbearance Agreement as amended hereby. In respect of each Static
Loan Borrower, except to the extent amended or modified hereby, all of the representations,
warranties, terms, covenants, and conditions of the Forbearance Agreement and the other Loan
Documents shall remain as written originally and in full force and effect in accordance with their
respective terms and are hereby ratified and confirmed, and nothing herein shall affect, modify,
limit, or impair any of the rights and powers which Lender may have hereunder or thereunder.
Nothing in this Amendment shall constitute a novation. The amendments set forth herein shall be
limited precisely as provided for herein, and shall not be deemed to be a waiver of, amendment of,
consent to, or modification of any of Lender’s rights under, or of any other term or provisions of,
the Forbearance Agreement or any other Loan Document, or of any term or provision of any other
instrument referred to therein or herein or of any transaction or future action which would require
the consent of Lender.

6. Waiver and Release of All Claims and Defenses; Communications.

(a) Each Amendment Loan Party, for itself and its respective successors and assigns,
agents, employees, officers, and directors, hereby forever waive, relinquish, discharge, and
release all defenses and Claims of every kind or nature, whether existing by virtue of
state, federal, or local law, by agreement, or otherwise, against (i) Lender, its
successors, assigns, directors, officers, shareholders, agents, employees, and attorneys,
and (ii) all participants in any Commercial Loans or Advances, such participants’
successors, assigns, directors, officers, shareholders, agents, employees, and attorneys,
(iii) any obligation evidenced by any Credit Agreement, any promissory note, instrument, or
other Loan Document in connection therewith, and (iv) any Collateral, in each instance,
which any Amendment Loan Party, may have or may have made at any time up through and
including the date of this Amendment, including without limitation, any affirmative
defenses, counterclaims, setoffs, deductions, or recoupments, by any Amendment Loan Party.
“Claims” means all debts, demands, actions, causes of action, suits, dues, sums of
money, accounts, bonds, warranties, covenants, contracts, controversies, promises,
agreements, or obligations of any kind, type, or description, and any other claim or demand
of any nature whatsoever, whether known or unknown, accrued or unaccrued, disputed or
undisputed, liquidated of contingent, in contract, tort, at law, or in equity, which any
Amendment Loan Party, claimed to have, now has, or shall or may have. The term Claims also
includes all causes of action, liabilities, and rights arising under or by virtue of any
Credit Agreement, promissory note, or other document or any transaction entered into in
connection therewith. Nothing contained in this Amendment prevents enforcement of this
waiver and release.

 

 

 

(b) Each party to this Amendment acknowledges and agrees that one purpose of this
Amendment is to facilitate the resolution of the Identified Forbearance Defaults and that,
consistent with such purpose, no part of any oral or written communications between or among
any Amendment Loan Party or Lender regarding the transactions contemplated in this
Amendment, exclusive of this written Amendment itself (collectively,
“Communications”), shall be utilized or deemed to be admissible as evidence in any
litigation involving any party to this Amendment. Communications shall be deemed to
constitute “compromise negotiations,” and not to constitute evidence that is “discoverable,”
as those phrases are used in the Federal Rules of Evidence and any applicable state rules of
evidence, and no Communications shall be deemed to constitute evidence that is otherwise
admissible for any other purpose.

(c) The release and communication provisions provided by paragraphs (a) and (b) of this
Section, shall survive and continue in full force and effect notwithstanding the occurrence
of a Forbearance Default under the terms of this Amendment or the termination of this
Amendment.

7. No Waiver. Nothing in this Amendment shall be construed to waive, modify, or cure
any default or Event of Default or Forbearance Default (other than the Identified Forbearance
Defaults) that exist that exists or may exist under the Forbearance Agreement or other Loan
Document.

8. Waiver of Right to Trial by Jury. EACH PARTY TO THIS AMENDMENT HEREBY EXPRESSLY
WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (1) ARISING
UNDER THIS AMENDMENT OR ANY LOAN DOCUMENT, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AMENDMENT OR
ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE, AND EACH
PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AMENDMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

9. Counterparts. This 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 an original, and all of which together will constitute one and the same instrument.
Receipt by Lender of a facsimile copy of an executed signature page hereof will constitute receipt
by Lender of an executed counterpart of this Amendment.

10. Costs and Expenses. Each Amendment Loan Party agrees to pay on demand all costs
and expenses of Lender in connection with the preparation, reproduction, execution, and delivery of
this Amendment and all other Loan Documents entered into in connection herewith,
including the reasonable fees and out-of-pocket expenses of Lender’s counsel with respect
thereto.

 

 

 

11. Further Assurances. Each Amendment Loan Party agrees to execute and deliver such
additional documents, instruments, and agreements reasonably requested by Lender as may be
reasonably necessary or appropriate to effectuate the purposes of this Amendment.

12. Governing Law. This Amendment and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in accordance with, the laws of the
State of Ohio.

13. Headings. Section headings in this Amendment are included herein for convenience
of reference only and will not constitute a part of this Amendment for any other purpose.

14. Patriot Act Notice. Lender hereby notifies each Amendment Loan Party that
pursuant to the requirements of the USA Patriot Act (Title III of Pub.L. 10756, signed into law
October 26, 2001) (the “Act”), it is required to obtain, verify, and record information
that identifies each party hereto, which information includes the name and address of each
Amendment Loan Party and other information that will allow Lender to identify each such party in
accordance with the Act.

[Signature pages follow.]

 

 

 

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the Amendment
Effective Date.

	 	 	 	 	 
	 	AMENDMENT LOAN PARTIES:

FRANKLIN CREDIT ASSET CORPORATION

 	 
	 	By:  	/s/ Thomas J. Axon
 	 
	 	 	Name:  	Thomas J. Axon 	 
	 	 	Title:  	President	 
	 	
Address for Notices:

101 Hudson St., 25th Floor

Jersey City, New Jersey 07302

Fax: (201) 604-4400

Attention:  General Counsel  

	 	 	 	 	 
	 	FRANKLIN CREDIT HOLDING CORPORATION

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

Address for Notices:

Same as above 

	 	 	 	 	 
	 	FLOW 2006 F CORP.

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

Address for Notices:

Same as above  

Signature Page to Amendment No. 7 to First Amended and Restated Forbearance Agreement and Amendment to Credit Agreements

 

 

 

	 	 	 	 	 
	 	FCMC 2006 M CORP.

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

Address for Notices:

Same as above  

	 	 	 	 	 
	 	FCMC 2006 K CORP.

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

Address for Notices:

Same as above  

Signature Page to Amendment No. 7 to First Amended and Restated Forbearance Agreement and Amendment to Credit Agreements

 

 

 

	 	 	 	 	 
	 	LENDER:

THE HUNTINGTON NATIONAL BANK

 	 
	 	By:  	/s/ Mark Taylor Bahlmann
 	 
	 	 	Name:  	Mark Taylor Bahlmann 	 
	 	 	Title:  	Authorized Signer	 
	 	

Address for Notices:

41 South High Street (HC0936)

Columbus, Ohio 43215

Attn: Commercial Lending/Huntington Capital

Telephone No.: (614) 480-4449

Telecopier No.: (614) 480-4999

With a copy to:

Porter Wright Morris & Arthur LLP

41 South High Street

Columbus, Ohio 43215

Attn:  Timothy E. Grady, Esq.

Telecopier No.: (614) 227-2105

Telephone No.: (614) 227-2100  

Signature Page to Amendment No. 7 to First Amended and Restated Forbearance Agreement and Amendment to Credit Agreements

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