Document:

EX-10.69

Exhibit 10.69

 PLEDGE,
ASSIGNMENT AND SECURITY AGREEMENT

PLEDGE, ASSIGNMENT AND Security Agreement (this “Agreement”), dated as of August
15, 2008, by FRANKLIN CREDIT MANAGEMENT CORPORATION, a Delaware corporation (the
“Borrower”), each of the entities listed on the signature pages hereof as grantors
or that becomes a party hereto pursuant to Section 7.10 of the Security Agreement referred to below
(each a “Grantor” and, collectively, the “Grantors”), in favor of THE HUNTINGTON
NATIONAL BANK, a national banking association (“Lender”).

W i t n e s s e t h:

Whereas, all the Grantors are party to a Security Agreement dated as of November 15, 2007,
in favor of Lender (the “Security Agreement”) pursuant to which the Grantors are
required to execute and deliver this Agreement;

Whereas, pursuant to the Credit Documents, Lender has made extensions of credit to
Borrower and certain of its affiliates upon the terms and subject to the conditions set forth
therein; and

     Now, Therefore, in consideration of the premises and to comply with the requirements
of the Security Agreement, each Grantor hereby agrees with Lender as follows:

Section 1. Defined Terms

Unless otherwise defined herein, terms defined in the Security Agreement and used herein have the
meaning given to them in the Security Agreement.

Section 2. Grant of Security Interest in Collateral

Each Grantor, as collateral security for the full, prompt and complete payment and performance when
due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations, hereby
collaterally pledges, assigns, conveys, mortgages, pledges, hypothecates and transfers to Lender,
and grants to Lender a lien on and security interest in, all of its right, title and interest in,
to and under the following collateral of such Grantor (the “Collateral”):

(a) all of its proceedings, choses in action and Commercial Tort Claims in which it has an
interest, including, without limitation, any proceeding, choses in action, and Commercial Tort
Claim referred to on Schedule I attached hereto; and

(b) all Proceeds of the foregoing.

Section 3. Security Agreement

The security interest granted pursuant to this Agreement is granted in conjunction with the
security interest granted to Lender pursuant to the Security Agreement and each Grantor hereby
acknowledges and affirms that the rights and remedies of Lender with respect to the security
interest in the Collateral made and granted hereby are more fully set forth in the Security
Agreement, the terms and provisions of which are incorporated by reference herein as if fully set
forth herein.

[Signature Pages Follow]

A6- 1

 

In witness whereof, each Grantor has caused this Agreement to be executed and delivered by
its duly authorized offer as of the date first set forth above.

	 	 	 	 	 
	 	FRANKLIN CREDIT MANAGEMENT 

CORPORATION,
as Borrower and Grantor

 	 
	 	By:  	/s/ Alexander Gordon Jardin
 	 
	 	Name:  	Alexander Gordon Jardin 	 
	 	 	 	 
	 
	 	Each Grantor listed on Schedule A attached 

hereto:

 	 
	 	By:  	 /s/ Alexander Gordon Jardin
 	 
	 	 	 	 
	 	Name: Alexander Gordon Jardin 	 
	 

Title: CEO, as an authorized office of and

on behalf of each Grantor Listed on

Schedule A attached hereto

Accepted and Agreed

as of the date first above written:

THE HUNTINGTON NATIONAL BANK

	 	 	 	 	 
	By:

	 	/s/ Alan D. Seitz
 

	 	  
	 

	 	Name: Alan D. Seitz	 	 
	 

	 	Title: Senior Vice President	 	 

 

 

Acknowledgement of Grantors

	 	 	 
	State of New Jersey

	 	)
	 

	 	)     ss.
	County of hudson

	 	)

On this 13th day of August, 20008 before me personally appeared Alexander Gordon
Jardin, proved to me on the basis of satisfactory evidence to be the person who executed the
foregoing instrument on behalf of Franklin Credit Management Corporation, a Delaware corporation,
who being by me duly sworn did depose and say that she/he is an authorized representative of said
entity, that the said instrument was signed on behalf of said entity and that she/he acknowledged
said instrument to be the free act and deed of said entity.

Donna M. Bonfiglio

Notary Public

	 	 	 
	State of New jersey

	 	)
	 

	 	)     ss.
	County of hudson

	 	)

On this 13th day of August, 2008 before me personally appeared Alexander Gordon Jardin,
proved to me on the basis of satisfactory evidence to be the person who executed the foregoing
instrument on behalf of each of the Grantors (as defined above), who being by me duly sworn did
depose and say that she/he is an authorized representative of each of said entities, that said
instrument was signed on behalf of each of said entity as authorized by their respective
                     and that she/he acknowledged said instrument to be the free act and deed of each
of said entities.

Donna M. Bonfiglio

Notary Public

 

 

Schedule A

[List of Grantors]

 

 

Schedule I

to

Agreement

Proceedings, Choses in Action and Commercial Tort Claims

	 	1.	 	All claims arising out of all loan purchase agreements between Franklin Credit
Management Corporation (“FCMC”) and WMC Mortgage, LLC (“WMC”), successor to WMC
Mortgage Corp., including, without limitation, (1) that certain loan purchase agreement
between FCMC and WMC, dated as of September 29, 2006 and (2) that certain loan purchase
agreement between FCMC and WMC, dated as of November 30, 2006.
	 
	 	2.	 	All claims arising out of all loan purchase agreements between Franklin Credit
Management Corporation (“FCMC”) and WMC Mortgage, LLC (“WMC”) including, without
limitation, (1) that certain loan purchase agreement between FCMC and WMC, dated as of
May 25, 2006, (2) that certain loan purchase agreement between FCMC and WMC, dated as
of September 29, 2006, and (3) that certain loan purchase agreement between FCMC and
WMC, dated as of November 30, 2006.
	 
	 	3.	 	All claims arising out of all loan purchase agreements between Franklin Credit
Management Corporation (“FCMC”), Decision One Mortgage Company, LLC (“Decision One”),
and HSBC Finance Corporation including, without limitation, (1) that certain loan
purchase agreement between FCMC and Decision One, dated as of June 23, 2006, (2) that
certain loan purchase agreement between FCMC and Decision One, dated as of August 29,
2006, (3) that certain loan purchase agreement between FCMC and Decision One, dated as
of September 27, 2006, (4) that certain loan purchase agreement between FCMC and
Decision One, dated as of January 26, 2007, and (5) that certain loan purchase
agreement between FCMC and Decision One, dated as of February 26, 2007.
	 
	 	4.	 	All claims arising out of all loan purchase agreements between Franklin Credit
Management Corporation (“FCMC”) and Pine State Mortgage Corporation (“Pine State”)
including, without limitation, (1) that certain loan purchase agreement between FCMC
and Pine State, dated as of February 12, 2007, (2) that certain loan purchase agreement
between FCMC and Pine State, dated as of February 28, 2007, (3) that certain loan
purchase agreement between FCMC and Pine State, dated as of March 30, 2007, (4) that
certain loan purchase agreement between FCMC and Pine State, dated as of April 19,
2007, and (5) that certain loan purchase agreement between FCMC and Pine State, dated
as of May 15, 2007.
	 
	 	5.	 	All claims arising out of all loan purchase agreements between Franklin Credit
Management Corporation (“FCMC”) and Metrocities Mortgage, LLC (“Metro”) including,
without limitation, that certain loan purchase agreement between FCMC and Metro, dated
as of June 18, 2007.
	 
	 	6.	 	All claims arising out of all loan purchase agreements between Franklin Credit
Management Corporation (“FCMC”) and First Residential Mortgage Services Corporation
(“First Residential”) including, without limitation, that certain loan purchase
agreement between FCMC and First Residential, dated as of February 22, 2007.exv10w1

Exhibit 10.1

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT (“Agreement”) is made and entered into this 13th day of
August, 2008, by and between QUESTCOR PHARMACEUTICALS, INC., a California corporation (the
“Company”) and CHAUMIERE CONSULTADORIA & SERVICOS SDC UNIPESSOAL L.D.A., a corporation
organized under the laws of Portugal (“Shareholder”).

RECITALS

     A. Shareholder holds of record Seven Million, One Hundred and Eight Thousand, Eight Hundred
and Eighty Nine (7,108,889) shares of the Common Stock, no par value, of the Company.

     B. The Company desires to repurchase Two Million and Two Hundred Thousand (2,200,000) of the
shares from Shareholder (the “Repurchased Shares”) and Shareholder desires to sell the
Repurchased Shares to the Company, for an aggregate repurchase consideration equal to Ten Million
Eight Hundred Ninety Thousand U.S. Dollars ($10,890,000) (the “Repurchase Price”)
representing a per share price of Four U.S. Dollars and Ninety-Five Cents ($4.95), all on the terms
set forth in this Agreement (the “Repurchase”).

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

AGREEMENT

     1. Repurchase. Shareholder agrees to and does hereby sell, transfer and convey to the
Company the Repurchased Shares, free and clear of all liens, claims and encumbrances, and the
Company agrees to and does hereby purchase the Repurchased Shares. In consideration of the sale
and transfer of the Repurchased Shares, the Company shall pay to Shareholder the Repurchase Price,
all on the terms set forth in this Agreement. As a result of the Repurchase, in accordance with
the Company’s Articles of Incorporation and the California General Corporation Law, the Repurchased
Shares shall return to the status of authorized by unissued shares of the Company.

     2. Deliveries. The Company shall pay to Shareholder the Repurchase Price by wire
transfer in immediately available funds. Promptly following the date of this Agreement,
Shareholder shall deliver to the Company duly executed stock powers in the form of Exhibit A
attached hereto transferring the Repurchased Shares to the Company and stock certificates including
the Repurchased Shares registered in the name of such Shareholder for cancellation and return to
the Company’s stock record book. Upon receipt of the stock certificates and duly executed stock
powers, the Company shall direct its transfer agent to issue a new stock certificate representing
any remaining shares included in the stock certificates delivered by Shareholder to the Company.
Shareholder has provided the correct wire transfer instructions to effect the wire transfer to the
Company.

     3. Representations, Warranties and Covenants of the Shareholder. Shareholder hereby
represents, warrants and covenants to the Company as follows:

          (a) Legal Power. Shareholder has the requisite legal power and authority to enter
into this Agreement, to deliver the Repurchased Shares and to carry out and perform its obligations

 

 

under the terms of this Agreement, without obtaining the approval or consent of any other party or
authority.

          (b) Title to Shares. Shareholder owns the Repurchased Shares free and clear of all
liens, charges, claims, encumbrances, security interests, equities, restrictions on transfer (other
than restrictions under applicable securities laws) or other defects in title of any kind or
description and, upon delivery of the Repurchased Shares and receipt of the Repurchase Price
therefor, Shareholder will convey to the Company valid and marketable title to the Repurchased
Shares, free and clear of all liens, charges, claims, encumbrances, security interests, equities,
restrictions on transfer (other than restrictions under applicable securities laws) or other
defects in title or description.

          (c) Investment Representations. Due to Shareholder’s pharmaceutical industry
experience, Shareholder possesses the expertise to be able to fend for itself in the transaction
contemplated by this Agreement. Shareholder has had, during the course of this transaction and
prior hereto, the opportunity to ask questions of, and receive answers from, the Company and its
management concerning the Company, its operations and prospects, and the terms and conditions of
this Agreement. Shareholder is entering into this Agreement freely and understands and expressly
accepts and assumes the economic and market risk associated with the transactions contemplated by
this Agreement and agrees that this Agreement shall be in all respects effective and not subject to
termination or rescission under any circumstances.

          (d) Tax Matters. Shareholder acknowledges that the Company is making no
representation or warranty as to the tax consequences for Shareholder in selling the Shares for the
Repurchase Price pursuant to this Agreement. Shareholder further acknowledges that it has had an
opportunity to seek independent counsel and advisors with respect to tax and other matters relating
to this Agreement, and Shareholder acknowledges and agrees that it shall bear its own tax
consequences, if any, of Shareholder’s selling the Repurchased Shares for the Repurchase Price
pursuant to the terms of this Agreement. The Company acknowledges and agrees that it shall bear
its own tax consequences, if any, of the Company’s purchasing the Repurchased Shares for the
Repurchase Price pursuant to the terms of this Agreement. Following execution of this Agreement,
Shareholder will promptly deliver to the Company a properly executed IRS Form W-8.

     4. Company Representations. The Company represents and warrants to Shareholder that:

          (a) Legal Power. This Agreement has been duly executed and delivered by the Company
and constitutes a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms and no consent, approval or authorization of, exemption by, or
filing with, any governmental or regulatory authority is required in connection with the execution,
delivery and performance by the Company of this Agreement, other than the filing of a Form 8-K with
the Securities and Exchange Commission.

          (b) Accounting Treatment. The Company will account for the Repurchase in its financial
statements as a reduction of the line item “common stock” on its balance sheet and the Repurchase
has no impact on the Company’s income statement or its accumulated deficit.

     5. Miscellaneous.

2

 

          (a) Entire Agreement. This Agreement represents and contains the full, final and
complete agreement and understanding between the parties hereto relating to or connected with the
subject matter hereof. This Agreement shall not be amended except in a writing signed by the
parties hereto. Notwithstanding the foregoing, each party agrees that, at any time and from time
to time after the date hereof, it will take any and all actions and execute and deliver to any
other party such further instruments or documents as may reasonably be required to give effect to
the intentions of the parties as contemplated under this Agreement.

          (b) Governing Law and Venue. This Agreement was entered into in the State of
California, and its validity, construction, interpretation and legal effect shall be governed by
the laws and judicial decisions of the State of California applicable to contracts entered into and
performed entirely within the State of California and by applicable federal law, and the
choice-of-law provisions of California law shall not be applied to substitute the law of any other
State or nation. The parties expressly agree that any action arising out of or relating to this
Agreement shall be filed and maintained only in the courts of the State of California for the
County of Alameda, or the United States District Court for the Northern District of California.
The parties hereby consent and submit to the personal jurisdiction of such courts for the purposes
of litigating any such action, and that each such court is a proper venue for litigating any such
action.

          (c) Attorneys’ Fees. In the event that either party to this Agreement shall commence
any action to interpret or enforce this Agreement or any action to enforce or appeal any decision
or judgment rendered in connection therewith, the prevailing party in any such action or actions
shall recover such party’s reasonable costs and expenses incurred in connection therewith,
including reasonably attorneys’ fees.

          (d) Counterparts. This Agreement may be executed in two or more counterparts, which
shall together constitute one and the same agreement.

[Signature page follows]

3

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written
above.

“COMPANY”

QUESTCOR PHARMACEUTICALS, INC.

a California corporation

 

Don Bailey

President and Chief Executive Officer

CHAUMIERE CONSULTADORIA & SERVICOS

     SDC UNIPESSOAL L.D.A.

 

By:

Title:

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