Document:

<PAGE>   1
                                                                 EXHIBIT 10.15.2

                                                                  EXECUTION COPY

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                          SALE AND SERVICING AGREEMENT
                          Dated as of September 1, 1999

                                     Between

                         FIB BUSINESS LOAN TRUST 1999-A
                                     (Trust)

                                       and

                            FIRST INTERNATIONAL BANK
                              (Seller and Servicer)

                     FIB Business Loan Notes, Series 1999-A

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                                          Page

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                                    ARTICLE I

                                   DEFINITIONS

Section 1.01        Definitions...................................................................................2
Section 1.02        Use of Words and Phrases......................................................................2
Section 1.03        Captions; Table of Contents...................................................................2

                                   ARTICLE II

                      SALE AND CONVEYANCE OF THE TRUST FUND

Section 2.01        Sale and Conveyance of Trust Fund.............................................................2
Section 2.02        Possession of Business Files..................................................................2
Section 2.03        Books and Records.............................................................................3
Section 2.04        Delivery of Business Loan Documents...........................................................3
Section 2.05        Acceptance by Trustee of the Trust Fund; Certain Substitutions; Certification by
                    Indenture Trustee.............................................................................5
Section 2.06        [Reserved]....................................................................................7
Section 2.07        [Reserved]....................................................................................7
Section 2.08        Fees and Expenses of the Owner Trustee and the Indenture Trustee..............................7
Section 2.09        Transfer and Conveyance of the Subsequent Business Loans......................................7
Section 2.10        Optional Repurchase of Defaulted Business Loans..............................................10

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

Section 3.01        Representations of the Seller................................................................11
Section 3.02        Individual Business Loans....................................................................14
Section 3.03        Purchase and Substitution of Defective Loans.................................................19
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                                   ARTICLE IV

                 ADMINISTRATION AND SERVICING OF BUSINESS LOANS

Section 4.01        Duties of the Servicer.......................................................................22
Section 4.02        Liquidation of Business Loans................................................................25
Section 4.03        Establishment of Principal and Interest Accounts; Deposits in Principal and Interest
                    Accounts.....................................................................................26
Section 4.04        Permitted Withdrawals From the Applicable Principal and Interest Account.....................27
Section 4.05        [Intentionally Omitted]......................................................................29
Section 4.06        Transfer of Accounts.........................................................................29
Section 4.07        Maintenance of Hazard Insurance..............................................................29
Section 4.08        [Intentionally Omitted]......................................................................29
Section 4.09        Fidelity Bond................................................................................29
Section 4.10        Title, Management and Disposition of Foreclosed Property.....................................30
Section 4.11        [Intentionally Omitted]......................................................................31
Section 4.12        Collection of Certain Business Loan Payments.................................................31
Section 4.13        Access to Certain Documentation and Information Regarding the Business Loans.................31

                                    ARTICLE V

                       PAYMENTS TO THE CERTIFICATEHOLDERS

Section 5.01        Establishment of Note Distribution Account; Deposits in Note Distribution Account;
                    Permitted Withdrawals from Note Distribution Account.........................................32
Section 5.02        Establishment of Spread Account; Deposits in Spread Account; Permitted Withdrawals
                    from Spread Account..........................................................................33
Section 5.03        Establishment of Expense Account; Deposits in Expense Account; Permitted Withdrawals
                    from Expense Account.........................................................................34
Section 5.04        Pre-Funding Account and Capitalized Interest Account.........................................36
Section 5.05        [Intentionally Omitted]......................................................................37
Section 5.06        Investment of Accounts.......................................................................37
Section 5.07        Distributions................................................................................38
Section 5.08        Determination of LIBOR.......................................................................40
Section 5.09        Statements...................................................................................41
Section 5.10        Advances by the Servicer.....................................................................44
Section 5.11        Compensating Interest........................................................................44
Section 5.12        Reports of Foreclosure and Abandonment.......................................................45
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                                   ARTICLE VI

                           GENERAL SERVICING PROCEDURE

Section 6.01        [Omitted]....................................................................................46
Section 6.02        Satisfaction of Mortgages and Collateral and Release of Business Files.......................46
Section 6.03        Servicing Compensation.......................................................................47
Section 6.04        Annual Statement as to Compliance............................................................47
Section 6.05        Annual Independent Public....................................................................48
Section 6.06        Trustee's Right to Examine Servicer Records and Audit Operations.............................48
Section 6.07        Reports to the Trustee; Principal and Interest Account Statements............................48

                                   ARTICLE VII

                       REPORTS TO BE PROVIDED BY SERVICER

Section 7.01        Financial Statements.........................................................................50

                                  ARTICLE VIII

                                  THE SERVICER

Section 8.01        Indemnification; Third Party Claims..........................................................51
Section 8.02        Merger or Consolidation of the Servicer......................................................52
Section 8.03        Limitation on Liability of the Servicer and Others...........................................52
Section 8.04        Servicer Not to Resign.......................................................................52

                                   ARTICLE IX

                                     DEFAULT

Section 9.01        Events of Default............................................................................54
Section 9.02        Trustee to Act; Appointment of Successor.....................................................55
Section 9.03        Waiver of Defaults...........................................................................57
Section 9.04.       Control by Majority Noteholders..............................................................57

                                    ARTICLE X

                                   TERMINATION

Section 10.01       Termination..................................................................................59
Section 10.02       Accounting Upon Termination of Servicer......................................................60
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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

Section 11.01       Acts of Noteholders..........................................................................61
Section 11.02       Amendment....................................................................................61
Section 11.03       Recordation of Agreement.....................................................................62
Section 11.04       Duration of Agreement........................................................................62
Section 11.05       Governing Law................................................................................62
Section 11.06       Notices......................................................................................62
Section 11.07       Severability of Provisions...................................................................63
Section 11.08       No Partnership...............................................................................63
Section 11.09       Counterparts.................................................................................63
Section 11.10       Successors and Assigns.......................................................................63
Section 11.11       Headings.....................................................................................63
Section 11.12       Notification to Rating Agencies..............................................................63
Section 11.13.      Limitation of Liability......................................................................64
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APPENDIX A                        Definitions and Usage

                                  EXHIBIT INDEX

EXHIBIT A                         Contents of Business File
EXHIBIT B                         [Intentionally Omitted]
EXHIBIT C                         Principal and Interest Account
                                    Letter Agreement
EXHIBIT D                         [Intentionally Omitted]
EXHIBIT E                         [Intentionally Omitted]
EXHIBIT F                         Initial Certification
EXHIBIT F-1                       Interim Certification
EXHIBIT F-2                       Final Certification
EXHIBIT G                         [Intentionally Omitted]
EXHIBIT H                         Business Loan Schedule
EXHIBIT I                         Request for Release of Documents
EXHIBIT J                         Form of Liquidation Report
EXHIBIT K                         Form of Delinquency Report
EXHIBIT L                         Servicer's Monthly Computer Tape Format

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         Sale and Servicing Agreement dated as of September 1, 1999, between FIB
Business Loan Trust 1999-A (the "Trust"), and First International Bank, as
Seller (the "Seller") and as Servicer (the "Servicer").

                              PRELIMINARY STATEMENT

         The Trust was formed for the purpose of issuing asset backed notes and
asset backed certificates secured by the Business Loans. The Issuer has entered
into a trust indenture, dated as of September 1, 1999 (the "Indenture"), between
the Trust and the Indenture Trustee, pursuant to which the Trust intends to
issue its FIB Business Loan Notes, Series 1999-A, Adjustable Rate Class A,
Adjustable Rate Class M-1, Adjustable Rate Class M-2 and Adjustable Rate Class B
in the aggregate initial principal amounts of $56,550,000, $2,600,000,
$2,600,000, and $3,250,000, respectively (collectively, the "Notes"). Pursuant
to the Indenture, as security for the indebtedness represented by the Notes, the
Issuer is and will be pledging to the Indenture Trustee, or granting the
Indenture Trustee a security interest in, among other things, certain Business
Loans and Subsequent Business Loans and its rights under this Agreement.

         The parties desire to enter into this Agreement to provide, among other
things, for the servicing of the Business Loans by the Servicer. The Servicer
acknowledges that, in order further to secure the Notes, the Trust is and will
be granting to the Indenture Trustee a security interest in, among other things,
its rights under this Agreement, and the Servicer agrees that all covenants and
agreements made by the Servicer herein with respect to the Business Loans shall
also be for the benefit and security of the Indenture Trustee and Holders of the
Notes. For its services hereunder, the Servicer will receive a Servicing Fee (as
defined herein) with respect to each Business Loan serviced hereunder.

<PAGE>   8

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.01 Definitions. For all purposes of this Agreement,
capitalized terms used herein shall have the meanings set forth in Appendix A,
unless the context clearly indicates otherwise.

         Section 1.02 Use of Words and Phrases. "Herein", "hereby", "hereunder",
"hereof", "hereinbefore", "hereinafter" and other equivalent words refer to this
Agreement as a whole and not solely to the particular section of this Agreement
in which any such word is used.

         Section 1.03 Captions; Table of Contents. The captions or headings in
this Agreement and the Table of Contents are for convenience only and in no way
define, limit or describe the scope and intent of any provisions of this
Agreement.

                                   ARTICLE II

                      SALE AND CONVEYANCE OF THE TRUST FUND

                  Section 2.01  Sale and Conveyance of Trust Fund.

                  The Seller hereby sells, transfers, assigns, sets over and
conveys to the Trust without recourse, subject to the terms of this Agreement,
all of the right, title and interest of the Seller in and to the Initial
Business Loans and all other assets included or to be included in the Trust Fund
in exchange for the Notes and the Certificates.

                  Section 2.02  Possession of Business Files.

                  (a) Upon the issuance of the Notes and Certificates, the
ownership of each Business Note, the Mortgage, if applicable, and the contents
of the related Business File relating to the Initial Business Loans is, and upon
each Subsequent Transfer Date the ownership of each Business Note, the Mortgage,
if applicable, and the contents of the related Business File relating to the
applicable Subsequent Business Loans will be, vested in the Trust for the
benefit of the Noteholders and Certificateholders, as the case may be.

                  (b) Pursuant to Section 2.04, with respect to the Initial
Business Loans the Seller has delivered or caused to be delivered, and, on each
Subsequent Transfer Date, the Seller will deliver or cause to be delivered, each
Business File to the Indenture Trustee.

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                  Section 2.03  Books and Records.

                  The transfer of each Business Loan shall be reflected on the
Seller's balance sheet and other financial statements and for tax purposes as a
sale of assets by the Seller and the Seller shall respond to any third-party
inquiry that such transfer is so reflected as a sale. The Seller shall be
responsible for maintaining, and shall maintain, a complete set of books and
records for each Business Loan which shall be clearly marked to reflect the
ownership of each Business Loan by the Trust for the benefit of the Noteholders
and Certificateholders.

                  Section 2.04  Delivery of Business Loan Documents.

                  The Seller, (i) contemporaneously with the delivery of this
Agreement, has delivered or caused to be delivered to the Indenture Trustee and
(ii) on each Subsequent Transfer Date, will deliver or cause to be delivered to
the Indenture Trustee, each of the following documents:

                  (a) For each Initial Business Loan or Subsequent Business
Loan, as the case may be:

                  (1) The original Business Note, endorsed by means of an
allonge as follows: "Pay to the order of HSBC Bank USA, and its successors and
assigns, as indenture trustee under that certain Indenture dated as of September
1, 1999 relating to FIB Business Loan Trust, 1999-A, without recourse" and
signed, by facsimile or manual signature, in the name of the Seller by a
Responsible Officer, with all prior and intervening endorsements showing a
complete chain of endorsement from the originator to the Seller, if the Seller
was not the originator provided, however that in lieu of the original Business
Note, where the original Business Note has been lost, the Seller shall deliver a
lost note affidavit and, if a copy exists, a copy of the original Business Note;

                  (2) Blanket assignment of all Collateral securing the Business
Loan, including without limitation, all rights under applicable guarantees and
insurance policies;

                  (3) Irrevocable power of attorney of the Seller to the
Indenture Trustee to execute, deliver, file or record and otherwise deal with
the Collateral for the Business Loans in accordance with this Agreement. The
power of attorney will be delegable by the Indenture Trustee to the Servicer and
any successor servicer and will permit the Indenture Trustee or its delegate to
prepare, execute and file or record UCC financing statements and notices to
insurers; and

                  (4) Blanket UCC-1 financing statements identifying by type all
Collateral for the Business Loans and naming the Indenture Trustee, as assignee
of the Trust, as Secured Party and the Seller as the Debtor. The UCC-1 financing
statements will be filed promptly following the Closing Date in New York and
Connecticut and will be in the nature of protective notice filings rather than
true financing statements.

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                  (b) For each Initial Business Loan or Subsequent Business Loan
secured by Commercial Property or Residential Property, as the case may be:

                  (1) Either: (i) the original Mortgage, with evidence of
recording thereon, (ii) a copy of the Mortgage certified as a true copy by a
Responsible Officer of the Seller where the original has been transmitted for
recording until such time as the original is returned by the public recording
office or duly licensed title or escrow officer or (iii) a copy of the Mortgage
certified by the public recording office in those instances where the original
recorded Mortgage has been lost;

                  (2) Either: (i) the original Assignment of Mortgage from the
Seller endorsed as follows: "HSBC Bank USA ("Assignee"), its successors and
assigns, as indenture trustee under the Indenture dated as of September 1, 1999
relating to FIB Business Loan Trust 1999-A" with evidence of recording thereon
(provided, however, that where permitted under the laws of the jurisdiction
wherein the Mortgaged Property is located, the Assignment of Mortgage may be
effected by one or more blanket assignments for Business Loans secured by
Mortgaged Properties located in the same county), or (ii) a copy of such
Assignment of Mortgage certified as a true copy by a Responsible Officer of the
Seller where the original has been transmitted for recording (provided, however,
that where the original Assignment of Mortgage is not being delivered to the
Indenture Trustee, the Responsible Officer may complete one or more blanket
certificates attaching copies of one or more Assignments of Mortgage relating to
the Mortgages originated by the Seller);

                  (3) Either: (i) originals of all intervening assignments, if
any, showing a complete chain of title from the originator to the Seller,
including warehousing assignments, with evidence of recording thereon if such
assignments were recorded, (ii) copies of any assignments certified as true
copies by a Responsible Officer of the Seller where the originals have been
submitted for recording until such time as the originals are returned by the
public recording officer, or (iii) copies of any assignments certified by the
public recording office in any instances where the original recorded assignments
have been lost;

                  (4) Either: (i) originals of all title insurance policies
relating to the Mortgaged Properties to the extent the Seller obtained such
policies or (ii) copies of any title insurance policies or other evidence of
lien position, including but not limited to PIRT policies, limited liability
reports and lot book reports, to the extent the Seller obtain such policies or
other evidence of lien position, certified as true by the Seller;

                  The Seller shall, within ten Business Days after the receipt
thereof, and in any event, within one year of the Closing Date (or, with respect
to the Subsequent Business Loans, within one year of the related Subsequent
Transfer Date), deliver or cause to be delivered to the Indenture Trustee: (i)
the original recorded Mortgage in those instances where a copy thereof certified
by the Seller was delivered to the Indenture Trustee; (ii) the original recorded
Assignment of Mortgage from the Seller to the Indenture Trustee, which, together
with any

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intervening assignments of Mortgage, evidences a complete chain of title from
the originator to the Indenture Trustee in those instances where copies thereof
certified by the Seller were delivered to the Indenture Trustee; and (iii) any
intervening assignments of Mortgage in those instances where copies thereof
certified by the Seller were delivered to the Indenture Trustee. Notwithstanding
anything to the contrary contained in this Section 2.04, in those instances
where the public recording office retains the original Mortgage, Assignment of
Mortgage or the intervening assignments of the Mortgage after it has been
recorded, the Seller shall be deemed to have satisfied its obligations hereunder
upon delivery to the Indenture Trustee of a copy of such Mortgage, Assignment of
Mortgage or assignments of Mortgage certified by the public recording office to
be a true copy of the recorded original thereof. All Business Loan documents
held by the Indenture Trustee as to each Business Loan are referred to herein as
the "Indenture Trustee's Document File."

                  Although it is the intent of the parties to this Agreement
that the conveyance of the Seller's right, title and interest in and to the
Business Loans and other assets in the Trust Fund pursuant to this Agreement
shall constitute a purchase and sale and not a loan, in the event that such
conveyance is deemed to be a loan, it is the intent of the parties to this
Agreement that the Seller shall be deemed to have granted, and hereby does
grant, to the Trust a first priority perfected security interest in all of the
Seller's right, title and interest in, to and under the Business Loans and other
assets in the Trust Fund, and that this Agreement shall constitute a security
agreement under applicable law.

                  All recording required pursuant to this Section 2.04 shall be
accomplished by and at the expense of the Servicer.

                  Section 2.05  Acceptance by Indenture Trustee of the Trust
                                Fund; Certain Substitutions; Certification by
                                Indenture Trustee.

                  (a) The Indenture Trustee shall execute and deliver on the
Closing Date (or, with respect to the Subsequent Business Loans, on the related
Subsequent Closing Date), an acknowledgment of receipt in the form attached as
Exhibit F hereto, stating that it has received, for each Business Loan, a
Business Note, and a file, and declares that the Indenture Trustee will hold
such documents and any amendments, replacements or supplements thereto, for the
benefit of the Noteholders and the Certificateholders. The Indenture Trustee
agrees, for the benefit of the Noteholders and the Certificateholders, to review
each Indenture Trustee's Document File within 90 days after the Closing Date or
Subsequent Closing Date, as the case may be, (or, with respect to any Qualified
Substitute Business Loan, within 45 days after the assignment thereof), and to
deliver to the Seller and the Servicer a certification in the form attached
hereto as Exhibit F-1. Within 360 days after the Closing Date (or, with respect
to any Qualified Substitute Business Loan, within 360 days after the assignment
thereof), the Indenture Trustee shall deliver to the Servicer, the Seller, the
Rating Agencies and any Noteholder who requests a copy from the Indenture
Trustee a final certification in the form attached hereto as Exhibit F-2
evidencing the completeness of the Indenture Trustee's Document Files.

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                  (b) If the Indenture Trustee, during the process of reviewing
the Indenture Trustee's Document Files finds any document constituting a part of
an Indenture Trustee's Document File which is not properly executed, has not
been received, is unrelated to a Business Loan identified in the Business Loan
Schedule, or does not conform in a material respect to the requirements of
Section 2.04 or the description thereof as set forth in the Business Loan
Schedule, the Indenture Trustee shall promptly so notify the Servicer and the
Seller. In performing any such review, the Indenture Trustee may conclusively
rely on the Seller as to the purported genuineness of any such document and any
signature thereon. It is understood that the scope of the Indenture Trustee's
review of the Indenture Trustee's Document Files is limited solely to confirming
that the documents listed in Section 2.04 have been executed and received and
relate to the Business Loans identified in the Business Loan Schedule. The
Seller agrees to use reasonable efforts to remedy a material defect in a
document constituting part of a Business File of which it is so notified by the
Indenture Trustee. If, however, within 60 days after the Indenture Trustee's
notice to it respecting such material defect the Seller has not remedied the
defect and such defect materially and adversely affects the value of the related
Business Loan, the Seller will (i) substitute in lieu of such Business Loan a
Qualified Substitute Business Loan in the manner and subject to the conditions
set forth in Section 3.03 or (ii) purchase such Business Loan at a purchase
price equal to the Principal Balance of such Business Loan as of the date of
purchase, plus 30 days' interest on such Principal Balance, computed at the
Adjusted Business Loan Remittance Rate as of the next succeeding Determination
Date, plus any accrued unpaid Servicing Fees, Monthly Advances and Servicing
Advances reimbursable to the Servicer, which purchase price shall be deposited
in the Principal and Interest Account on the next succeeding Determination Date.

                  (c) Upon receipt by the Indenture Trustee of a certification
of a Servicing Officer of the Servicer of such purchase and the deposit of the
amounts described above in the Principal and Interest Account (which
certification shall be in the form of Exhibit I hereto), the Indenture Trustee
shall release to the Servicer for release to the Seller the related Indenture
Trustee's Document File and the Indenture Trustee shall execute, without
recourse, and deliver such instruments of transfer necessary to transfer such
Business Loan to the Seller. All costs of any such transfer shall be borne by
the Servicer.

                  (d) If in connection with taking any action the Servicer
requires any item constituting part of the Indenture Trustee's Document File, or
the release from the lien of the related Business Loan of all or part of any
Mortgaged Property or other Collateral, the Servicer shall deliver to the
Indenture Trustee a certificate to such effect in the form attached as Exhibit I
hereto. Upon receipt of such certification, the Indenture Trustee shall deliver
to the Servicer the requested documentation and the Indenture Trustee shall
execute, without recourse, and deliver such instruments of transfer necessary to
release all or the requested part of the Mortgaged Property or other Collateral
from the lien of the related Business Loan.

                  On the Remittance Date in March of each year commencing March
2000, the Indenture Trustee shall deliver to the Seller and the Servicer a
certification detailing all

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transactions with respect to the Business Loans for which the Indenture Trustee
holds an Indenture Trustee's Document File pursuant to this Agreement during the
prior calendar year. Such certification shall list all Indenture Trustee's
Document Files which were released by or returned to the Indenture Trustee
during the prior calendar year, the date of such release or return and the
reason for such release or return.

                  Section 2.06  [Reserved].

                  Section 2.07  [Reserved].

                  Section 2.08  Fees and Expenses of the Owner Trustee and the
                                Indenture Trustee.

                  The fees and expenses of the Owner Trustee and the Indenture
Trustee including (i) the annual fees of the Owner Trustee and the Indenture
Trustee, payable quarterly in advance, and subject to rebate to the Servicer as
additional servicing compensation hereunder for any fraction of a calendar
quarter in which this Agreement terminates, (ii) any other fees and expenses to
which the Owner Trustee and the Indenture Trustee are entitled, and (iii)
reimbursements to the Servicer for any advances made by the Servicer to the
Expense Account pursuant to Section 5.03 hereof, shall be paid from the Expense
Account in the manner set forth in Section 5.03 hereof; provided, however, that
the Seller shall be liable for any expenses of the Trust Fund incurred prior to
the Closing Date. The Servicer, the Indenture Trustee and the Owner Trustee
hereby covenant with the Noteholders and the Certificateholders that every
material contract or other material agreement entered into by the Owner Trustee,
the Indenture Trustee, or the Servicer, acting as attorney-in-fact for the
Indenture Trustee or the Owner Trustee, on behalf of the Trust Fund shall
expressly state therein that no Noteholder or Certificateholder shall be
personally liable in connection with such contract or agreement.

                  Section 2.09  Transfer and Conveyance of the Subsequent
                                Business Loans.

                  (a) Subject to the conditions set forth in paragraph (b)
below, in consideration of the Indenture Trustee's delivery on the related
Subsequent Transfer Dates to or upon the order of the Seller of all or a portion
of the balance of funds in the Pre-Funding Account, the Seller shall on any
Subsequent Transfer Date contribute, transfer, assign, set over and otherwise
convey without recourse, to the Trust all right, title and interest of the
Seller in and to each Subsequent Business Loan listed on the Business Loan
Schedule delivered by the Seller on such Subsequent Transfer Date, all its
right, title and interest in and to principal collected and interest accruing on
each such Subsequent Business Loan on and after the related Subsequent Cut-Off
Date and all its right, title and interest in and to all insurance policies;
provided, however, that the Seller reserves and retains all its right, title and
interest in and to principal (including Principal Prepayments) collected and
interest accruing on each such Subsequent Business Loan prior to the related
Subsequent Cut-Off Date. The transfer by the Seller of the Subsequent Business
Loans set forth on the Business Loan Schedule to the Trust shall be absolute and
shall be intended by all parties hereto to be treated as a contribution by the
Seller.

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                  The amount released from the Pre-Funding Account shall be
one-hundred percent (100%) of the aggregate Principal Balances as of the related
Subsequent Transfer Date of the Subsequent Business Loans so transferred.

                  (b) The Seller shall transfer to the Trust the Subsequent
Business Loans and the other property and rights related thereto described in
paragraph (a) above only upon the satisfaction of each of the following
conditions on or prior to the related Subsequent Transfer Date:

                           (i) the Seller shall have provided the Indenture
                  Trustee with a timely Addition Notice and shall have provided
                  any information reasonably requested by it with respect to the
                  Subsequent Business Loans;

                           (ii) the Seller shall have delivered to the Indenture
                  Trustee a duly executed written assignment (including an
                  acceptance by the Indenture Trustee) that shall include a
                  Business Loan Schedule, listing the Subsequent Business Loans
                  and any other exhibits listed thereon;

                           (iii) the Seller shall have deposited in the
                  applicable Principal and Interest Account all collections in
                  respect of the Subsequent Business Loans received on or after
                  the related Subsequent Cut-Off Date;

                           (iv) as of each Subsequent Transfer Date, neither the
                  Seller nor the Servicer was insolvent nor will either of them
                  have been made insolvent by such transfer nor is either of
                  them aware of any pending insolvency;

                           (v) such addition will not result in a material
                  adverse tax consequence to the Trust Fund or the Holders of
                  the Notes and the Certificates;

                           (vi) the Pre-Funding Period shall not have
                  terminated;

                           (vii) the Seller shall have delivered to the
                  Indenture Trustee an Officer's Certificate confirming the
                  satisfaction of each condition precedent specified in this
                  paragraph (b) and in the related Subsequent Transfer
                  Agreement;

                           (viii) the Seller shall have delivered to the Rating
                  Agencies, the Owner Trustee and the Indenture Trustee,
                  Opinions of Counsel with respect to the transfer of the
                  Subsequent Business Loans substantially in the form of the
                  Opinions of Counsel delivered to the Indenture Trustee and the
                  Owner Trustee on the Closing Date (bankruptcy, corporate and
                  tax opinions);

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<PAGE>   15

                           (ix) such addition will not cause the Principal
                  Balance of the Business Loans secured by accounts receivables
                  and inventory to be greater than 25% of the aggregate
                  Principal Balance of the Business Loans;

                           (x) such addition will not cause the Principal
                  Balance of the Business Loans secured by first liens on
                  commercial real estate or machinery and equipment to be less
                  than 70% of the aggregate Principal Balance of the Business
                  Loans; provided however, in no event shall any such transfer
                  cause 50% or more of the aggregate Principal Balance of the
                  Business Loans to be "real estate mortgages (or interest
                  therein)" within the meaning of Section 7701(i)(A)(i) of the
                  Code and Treasury Regulations Section 301.7701-1(d); and

                           (xi) each Subsequent Business Loan shall not have an
                  Original Principal Balance greater than any single balance of
                  the top ten (10) largest Business Loans sold to the Trust.

                  (c) The obligation of the Trust to purchase a Subsequent
Business Loan on any Subsequent Transfer Date is subject to the requirement, as
evidenced by a certificate from a Responsible Officer of the Seller, that such
Subsequent Business Loan conforms in all material respects to the
representations and warranties concerning the individual Initial Business Loans
set forth in Sections 3.01 and 3.02 (except that any reference therein to the
Cut-Off Date shall be deemed a reference to the applicable Subsequent Cut-Off
Date) or in the Private Placement Memorandum under the heading "The Business
Loan Pool - Subsequent Business Loans" and that the inclusion of all Subsequent
Business Loans being transferred to the Trust on such Subsequent Transfer Date
will not change, in any material respect, the characteristics of the Initial
Business Loans in the aggregate, set forth in Sections 3.01 and 3.02.

                  (d) In connection with the transfer and assignment of the
Subsequent Business Loans, the Seller agrees to satisfy the conditions set forth
in Sections 2.02, 2.03, 2.04 and 2.05.

                  (e) In connection with each Subsequent Transfer Date, on the
Remittance Dates in October, November and December 1999 and the Special
Remittance Date, the Seller shall determine, and the Indenture Trustee shall
cooperate with the Seller in determining (i) the amount and correct dispositions
of the Capitalized Interest Requirements and the Pre-Funding Earnings and (ii)
any other necessary matters in connection with the administration of the
Pre-Funding Account and of the Capitalized Interest Account. If any amounts are
incorrectly released to the Seller from the Capitalized Interest Account, the
Seller shall immediately repay such amounts to the Indenture Trustee.

                  (f) No later than December 31, 1999, the Seller shall obtain a
letter from an independent accountant stating whether or not the characteristics
of the Subsequent Business Loans conform to the characteristics set forth
herein.

                                      -9-
<PAGE>   16

                  Section 2.10  Optional Purchase of Defaulted Business Loans.

                  The Servicer shall have the right, but not the obligation, to
purchase any Defaulted Business Loan for a purchase price equal to the then
outstanding principal balance of such Defaulted Business Loan as of the date of
such purchase plus accrued interest thereon at the Adjusted Business Loan
Remittance Rate, which purchase price shall be deposited in the Principal and
Interest Account on the next succeeding Determination Date. In no event,
however, may the aggregate principal balance of all Defaulted Business Loans
purchased pursuant to this Section 2.10 exceed 10% of the sum of (i) the
Original Pool Principal Balance and (ii) the initial Pre-Funded Amount.

                                      -10-
<PAGE>   17

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         Section 3.01  Representations of the Seller.

                  The Seller hereby represents and warrants to the Indenture
Trustee, the Owner Trustee, the Certificateholders and the Noteholders as of the
Closing Date:

                  (a) The Seller is a state chartered bank and trust company
organized and validly existing under the laws of the State of Connecticut and
has all licenses necessary to carry on its business as now being conducted and
is licensed and qualified in each state where the laws of such state require
licensing or qualification in order to conduct business of the type conducted by
the Seller and perform its obligations hereunder; the Seller has all requisite
power and authority to execute and deliver this Agreement and each other Basic
Document to which it is a party and to perform in accordance herewith and
therewith; the execution, delivery and performance of this Agreement and each
other Basic Document to which it is a party (including all instruments of
transfer to be delivered pursuant to this Agreement) by the Seller and the
consummation of the transactions contemplated hereby and thereby have been duly
and validly authorized by all necessary corporate action; this Agreement and
each other Basic Document to which it is a party evidence the valid, binding and
enforceable obligations of the Seller; and all requisite corporate action has
been taken by the Seller to make this Agreement and each other Basic Document to
which it is a party valid, binding and enforceable upon the Seller in accordance
with its respective terms, subject to the effect of bankruptcy, insolvency,
reorganization, moratorium and other similar laws relating to or affecting
creditors' rights generally or the application of equitable principles in any
proceeding, whether at law or in equity, none of which will affect the ownership
of the Business Loans by the Trust.

                  (b) All actions, approvals, consents, waivers, exemptions,
variances, franchises, orders, permits, authorizations, rights and licenses
required to be taken, given or obtained, as the case may be, by or from any
federal, state or other governmental authority or agency (other than any such
actions, approvals, etc., under any state securities laws, real estate
syndication or "Blue Sky" statutes, as to which the Seller makes no such
representation or warranty), that are necessary or advisable in connection with
the purchase and sale of the Notes and the execution and delivery by the Seller
of the documents to which it is a party, have been duly taken, given or
obtained, as the case may be, are in full force and effect on the date hereof,
are not subject to any pending proceedings or appeals (administrative, judicial
or otherwise) and either the time within which any appeal therefrom may be taken
or review thereof may be obtained has expired or no review thereof may be
obtained or appeal therefrom taken, and are adequate to authorize the
consummation of the transactions contemplated by this Agreement and each other
Basic Document to which it is a party and the other documents on the part of the
Seller and the performance by the Seller of its obligations under this Agreement
and the other Basic Documents to which it is a party;

                                      -11-
<PAGE>   18

                  (c) The consummation of the transactions contemplated by this
Agreement and the other Basic Documents to which the Seller is a party will not
result in the breach of any terms or provisions of the certificate of
incorporation or by-laws of the Seller or result in the breach of any term or
provision of, or conflict with or constitute a default under or result in the
acceleration of any obligation under, any material agreement, indenture or loan
or credit agreement or other material instrument to which the Seller or its
property is subject, or result in the violation of any law, rule, regulation,
order, judgment or decree to which the Seller or its property is subject;

                  (d) Neither this Agreement or any other Basic Document to
which the Seller is a party nor any statement, report or other document
furnished or to be furnished pursuant to this Agreement or any other Basic
Document to which the Seller is a party or in connection with the transactions
contemplated hereby and thereby contains any untrue statement of material fact
or omits to state a material fact necessary to make the statements contained
herein or therein not misleading in light of the circumstances under which they
were made;

                  (e) The Seller does not believe, nor does it have any reason
or cause to believe, that it cannot perform each and every covenant contained in
this Agreement or any other Basic Document to which the Seller is a party;

                  (f) There is no action, suit, proceeding or investigation
pending or, to the best of the Seller's knowledge, threatened against the Seller
which, either in any one instance or in the aggregate, may (i) result in any
material adverse change in the business, operations, financial condition,
properties or assets of the Seller or in any material impairment of the right or
ability of the Seller to carry on its business substantially as now conducted,
or in any material liability on the part of the Seller or of any action taken or
to be taken in connection with the obligations of the Seller contemplated
herein, or which would be likely to impair materially the ability of the Seller
to perform under the terms of this Agreement or any other Basic Document to
which the Seller is a party or (ii) which would draw into question the validity
of this Agreement or any other Basic Document to which the Seller is a party or
the Business Loans;

                  (g) The Trust will not constitute an "investment company"
within the meaning of the Investment Company Act of 1940, as amended;

                  (h) The Seller is not in default with respect to any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which default might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Seller or its properties or might have consequences that would
materially and adversely affect its performance hereunder;

                  (i) The statements contained in the Private Placement
Memorandum which describe the Seller or the Business Loans or matters or
activities for which the Seller is responsible in accordance with the Private
Placement Memorandum, this Agreement or any other Basic Document to which the
Seller is a party and all documents referred to therein or herein or

                                      -12-
<PAGE>   19

delivered in connection therewith or herewith, or which are attributable to the
Seller therein or herein are true and correct in all material respects, and the
Private Placement Memorandum does not contain any untrue statement of a material
fact with respect to the Seller or the Business Loans and does not omit to state
a material fact necessary to make the statements contained therein with respect
to the Seller or the Business Loans not misleading in light of the circumstances
under which they were made. The Seller is not aware that the Private Placement
Memorandum contains any untrue statement of a material fact or omits to state
any material fact necessary to make the statements contained therein not
misleading in light of the circumstances under which they were made. There is no
fact peculiar to the Seller or the Business Loans and known to the Seller that
materially adversely affects or in the future may (so far as the Seller can now
reasonably foresee) materially adversely affect the Seller or the Business Loans
that has not been set forth in the Private Placement Memorandum;

                  (j) No Noteholder or Certificateholder is subject to
Connecticut state licensing requirements solely by virtue of holding the Notes
or the Certificates;

                  (k) The transfer, assignment and conveyance of the Business
Notes and the Mortgages by the Seller pursuant to this Agreement are not or,
with respect to the Subsequent Business Loans, will not be, subject to the bulk
transfer laws or any similar statutory provisions in effect in any applicable
jurisdiction;

                  (l) The origination and collection practices used by the
Seller with respect to each Business Note and Mortgage relating to the Initial
Business Loans have been, and the origination and collection practices to be
used by the Seller with respect to each Business Note and Mortgage relating to
the Subsequent Business Loans will have been, in all material respects legal,
proper, prudent and customary in the business loan origination and servicing
business;

                  (m) Each Initial Business Loan was, and each Subsequent
Business Loan will be, selected from among the existing business loans in the
Seller's portfolio at the date hereof or, in the case of the Subsequent Business
Loans, at the related Subsequent Cut-Off Date, in a manner not designed to
adversely affect the Noteholders or the Certificateholders;

                  (n) The Seller received fair consideration and reasonably
equivalent value or, in the case of the Subsequent Business Loans, will have
received fair consideration and reasonably equivalent value, in exchange for the
sale of the Business Loans;

                  (o) Neither the Seller nor any of its affiliates sold or, in
the case of the Subsequent Business Loans, will have sold any interest in any
Business Loan with any intent to hinder, delay or defraud any of their
respective creditors;

                  (p) The Seller is solvent, and the Seller will not be rendered
insolvent as a result of the transfer of the Business Loans to the Trust or the
sale of the Notes;

                                      -13-
<PAGE>   20
         (q) The chief executive office and legal name of the Seller is as set
forth on the respective UCC-1 financing statement filed on behalf of the Seller
pursuant to Section 2.04(a)(4), such office is the place where the Seller is
"located" for the purposes of Section 9-103(3)(d) of the Uniform Commercial Code
as in effect in the State of New York, and neither the location of such office
nor the legal name of the Seller has changed in the past four months except that
the Seller changed its name from First International Bank, National Association;

         (r) The Seller has filed all required tax returns on a timely basis;

         (s) The pension or profit sharing plans of the Seller and all
consolidated subsidiaries have been fully funded in accordance with the Seller's
obligations;

         (t) The legal name of the Seller has not been changed in the last six
years and the Seller does not have tradenames, fictitious names, assumed names
or "doing business as" names except First National Bank of Connecticut, First
National Bank of New England and First International Bank, N.A. and First
International Capital;

         (u) The Seller will treat the sale of the Business Loans as a sale for
federal income tax reporting and accounting purposes; and

         (v) The Seller conducts its affairs such that the Trust would not be
substantively consolidated in the trust estate of the Seller and their
respective separate existences disregarded in bankruptcy.

                  Section 3.02  Individual Business Loans.

                  The Seller hereby represents and warrants to the Indenture
Trustee and the Noteholders, with respect to each Initial Business Loan as of
the Closing Date, and with respect to each Subsequent Business Loan, as of the
related Subsequent Transfer Date:

                  (a) The information with respect to each Business Loan set
forth in the Business Loan Schedule is true and correct;

                  (b) All of the original or certified documentation set forth
in Section 2.04 (including all material documents related thereto) has been or
will be delivered to the Indenture Trustee on the Closing Date or as otherwise
provided in Section 2.04;

                  (c) Each Mortgaged Property serving as the primary collateral
is improved by a Commercial Property or a Residential Property and does not
constitute other than real property under state law;

                  (d) Each Initial Business Loan was (and each Subsequent
Business Loan will be) originated and underwritten or purchased and
reunderwritten by the Seller, in its capacity as Seller and each Business Loan
is being serviced by the Seller, in its capacity as Servicer;

                                      -14-
<PAGE>   21

                  (e) [Intentionally Omitted];

                  (f) Approximately 33.22% of the Initial Business Loans (by
Principal Balance) bear fixed rates of interest and approximately 50.02%, 3.03%,
1.73%, 11.86% and 0.13% of the Business Loans (by Principal Balance) bear
interest that adjusts monthly based on the Prime Rate, annually based on
One-Year CMT, every three years based on Three-Year CMT, every five years based
on Five-Year CMT, and every ten years based on Ten-Year CMT, respectively. Each
Business Note will, with respect to principal payments, provide for a schedule
of Monthly Payments which are, if timely paid, sufficient to fully amortize the
principal balance of such Business Loan on its respective maturity date;

                  (g) With respect to those Business Loans secured by a
Mortgaged Property, each Mortgage is a valid and subsisting lien of record on
the Mortgaged Property subject only to any applicable Prior Liens on such
Mortgaged Property and subject in all cases to such exceptions that are
generally acceptable to banking institutions in connection with their regular
commercial lending activities, and such other exceptions to which similar
properties are commonly subject and which do not individually, or in the
aggregate, materially and adversely affect the benefits of the security intended
to be provided by such Mortgage;

                  (h) Immediately prior to the transfer and assignment herein
contemplated, the Seller held good and indefeasible title to, and was the sole
owner of, each Business Loan conveyed by the Seller subject to no liens,
charges, mortgages, encumbrances or rights of others except liens which will be
released simultaneously with such transfer and assignment; and immediately upon
the transfer and assignment herein contemplated, the Trust will hold good and
indefeasible title, to, and be the sole owner of, each Business Loan subject to
no liens, charges, mortgages, encumbrances or rights of others except liens
which will be released simultaneously with such transfer and assignment;

                  (i) As of the Cut-Off Date (or, with respect to any Subsequent
Business Loan, as of the related Subsequent Cut-Off Date), no Business Loan is
more than 30 days delinquent in payment;

                  (j) To the best of the Seller's knowledge, there is no
delinquent tax or assessment lien on any Mortgaged Property which is the primary
Collateral for the related Business Loan, and each Mortgaged Property is free of
material damage and is in good repair;

                  (k) No Business Loan is subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will the
operation of any of the terms of the Business Note or any related Mortgage, or
the exercise of any right thereunder, render either the Business Note or any
related Mortgage unenforceable in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto;

                                      -15-
<PAGE>   22

                  (l) Each Business Loan at the time it was made complied, and
as of the Closing Date complies, in all material respects with applicable state
and federal laws and regulations, including, without limitation, usury, equal
credit opportunity, disclosure and recording laws;

                  (m) Each Initial Business Loan was (and each Subsequent
Business Loan will be) originated and underwritten or purchased and
reunderwritten by the Seller in accordance with the underwriting criteria set
forth in the Private Placement Memorandum;

                  (n) The Seller requires that the improvements upon each
Mortgaged Property are covered by a valid and existing hazard insurance policy
with a generally acceptable carrier that provides for fire and extended coverage
representing coverage described in Section 4.07;

                  (o) The Seller requires that if a Mortgaged Property is in an
area identified in the Federal Register by the Federal Emergency Management
Agency as having special flood hazards, a flood insurance policy is in effect
with respect to such Mortgaged Property with a generally acceptable carrier in
an amount representing coverage described in Section 4.07;

                  (p) Each Business Note, any related Mortgage and any other
agreement pursuant to which Collateral is pledged to the Seller is the legal,
valid and binding obligation of the maker thereof and is enforceable in
accordance with its terms, except only as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors' rights generally and by general
principles of equity (whether considered in a proceeding or action in equity or
at law), none of which will prevent the ultimate realization of the security
provided by the Collateral or other agreement, and all parties to each Business
Loan had full legal capacity to execute all Business Loan documents and convey
the estate therein purported to be conveyed;

                  (q) The Seller has caused and will cause to be performed any
and all acts reasonably required to be performed to preserve the rights and
remedies of the Indenture Trustee and the Owner Trustee in any insurance
policies applicable to the Business Loans including, without limitation, in each
case, any necessary notifications of insurers, assignments of policies or
interests therein, and establishments of co-insured, joint loss payee and
mortgagee rights in favor of the Indenture Trustee or the Seller, respectively;

                  (r) Each original Mortgage was recorded, and all subsequent
assignments of the original Mortgage have been recorded in the appropriate
jurisdictions wherein such recordation is necessary to perfect the lien thereof
as against creditors of the Seller (or, subject to Section 2.04 hereof, are in
the process of being recorded);

                  (s) Each Business Loan conforms, and all such Business Loans
in the aggregate conform, to the description thereof set forth in the Private
Placement Memorandum;

                                      -16-
<PAGE>   23

                  (t) The terms of the Business Note and the related Mortgage or
other security agreement pursuant to which Collateral was pledged have not been
impaired, altered or modified in any respect, except by a written instrument
which has been recorded, if necessary, to protect the interest of the
Noteholders and the Certificateholders and which has been delivered to the
Indenture Trustee;

                  (u) There are no material defaults in complying with the terms
of any applicable Mortgage, and all taxes, governmental assessments, insurance
premiums, water, sewer and municipal charges, leasehold payments or ground rents
which previously became due and owing have been paid, or an escrow of funds has
been established in an amount sufficient to pay for every such item which
remains unpaid and which has been assessed but is not yet due and payable;

                  (v) There is no proceeding pending or threatened for the total
or partial condemnation of any Mortgaged Property, nor is such a proceeding
currently occurring, and such property is undamaged by waste, fire, earthquake
or earth movement, windstorm, flood, tornado or other casualty, so as to affect
adversely the value of the Mortgaged Property as security for the Business Loan
or the use for which the premises were intended;

                  (w) Each Mortgaged Property which is the primary collateral
for the related Business Loan underwent, at the time of origination of such
Business Loan, the standard environmental studies and such studies revealed that
such Mortgaged Property was free of contamination from toxic substances or
hazardous wastes requiring action under applicable laws or is subject to ongoing
environmental rehabilitation satisfactory to the Seller;

                  (x) The proceeds of the Business Loan have been fully
disbursed, and there is no obligation on the part of the Seller to make future
advances thereunder. Any and all requirements as to disbursements of any escrow
funds therefor have been complied with. All costs, fees and expenses incurred in
making or closing or recording the Business Loans were paid;

                  (y) There is no obligation on the part of the Seller or any
other party (except for any guarantor of a Business Loan) to make Monthly
Payments (except for Monthly Advances) in addition to those made by the Obligor;

                  (z) No statement, report or other document signed by the
Seller constituting a part of the Business File contains any untrue statement of
a material fact or omits to state a material fact necessary to make the
statements contained therein not misleading in light of the circumstances under
which they were made;

                  (aa) With respect to each Mortgage constituting a deed of
trust, a trustee, duly qualified under applicable law to serve as such, has been
properly designated and currently so serves and is named in such Mortgage, and
no fees or expenses are or will become payable by the

                                      -17-
<PAGE>   24

Noteholders and/or the Certificateholders to the trustee under the deed of
trust, except in connection with a trustee's sale after default by the Obligor;

                  (bb) No Business Loan has a shared appreciation feature, or
other contingent interest feature;

                  (cc) With respect to each Business Loan secured by a Mortgaged
Property or other Collateral and that is not a first priority lien, either (i)
no consent for the Business Loan is required by the holder of any related Prior
Lien or (ii) such consent has been obtained;

                  (dd) Each Business Loan was originated to a business located
in the State identified in the Business Loan Schedule;

                  (ee) All parties which have had any interest in the Business
Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the
period in which they held and disposed of such interest, were) (1) in compliance
with any and all applicable licensing requirements of the laws of the state
wherein any Mortgaged Property is located, and (2)(A) organized under the laws
of such state, or (B) qualified to do business in such state, or (C) federal
savings and loan associations or national banks having principal offices in such
state, or (D) not doing business in such state;

                  (ff) Any related Mortgage contains customary and enforceable
provisions which render the rights and remedies of the holder thereof adequate
for the realization against the Mortgaged Property of the benefits of the
security, including, (i) in the case of a Mortgage designated as a deed of
trust, by trustee's sale, and (ii) otherwise by judicial foreclosure. There is
no homestead or other exemption available to the Mortgagor which would
materially interfere with the right to sell the Mortgaged Property at a
trustee's sale or the right to foreclose the Mortgage;

                  (gg) There is no default, breach, violation or event of
acceleration existing under the Business Note and no event which, with the
passage of time or with notice and the expiration of any grace or cure period,
would constitute a default, breach, violation or event of acceleration; and the
Seller, in its capacity as either Servicer or Seller, has not waived any
default, breach, violation or event of acceleration;

                  (hh) All parties to the Business Note and any related Mortgage
or other document pursuant to which Collateral was pledged had legal capacity to
execute the Business Note and any such Mortgage or other document and each
Business Note and Mortgage or other document have been duly and properly
executed by such parties;

                  (ii) The Business Loan was not selected for inclusion under
this Agreement from the Seller's portfolio of comparable business loans on any
basis which would have a material adverse affect on a Noteholder or
Certificateholder;

                                      -18-
<PAGE>   25

                  (jj) All amounts received on or after the Cut-Off Date (or,
with respect to the Subsequent Business Loans, on or after the related
Subsequent Cut-Off Date) with respect to the Business Loans have been, to the
extent required by this Agreement, deposited into the Principal and Interest
Account and are, as of the Closing Date (or with respect to the Subsequent
Business Loans, as of the related Subsequent Closing Date), in the Principal and
Interest Account;

                  (kk) With respect to those Business Loans secured by
Collateral other than a Mortgaged Property, the related Business Note, security
agreements, if any, and UCC-1 filed with respect to such Collateral creates a
valid and subsisting lien of record on such Collateral subject only to any Prior
Liens, if any, on such Collateral and subject in all cases to such exceptions
that are generally acceptable to lending institutions in connection with their
regular commercial lending activities, and such other exceptions to which
similar Collateral is commonly subject and which do not individually, or in the
aggregate, materially and adversely affect the benefits of the security intended
to be provided by such Business Note, security agreement and UCC-1;

                  (ll) As of the Closing Date, less than 50% of the Business
Loans, by Principal Balance, are (and after the Funding Period less than 50% of
Initial Business Loans and Subsequent Business Loans will be) "real estate
mortgages (or interests therein)" within the meaning of Section 7701(i)(A)(i) of
the Code and Treasury regulations Section 301.7701-1(d); and

                  (mm) The Seller has no knowledge that at the time of the sale
of the Business Loans, the obligations thereunder would not be paid in full.

                  Section 3.03  Purchase and Substitution of Defective
                                Loans.

                  It is understood and agreed that the representations and
warranties set forth in Sections 3.01 and 3.02 shall survive delivery of the
Notes to the Noteholders and the Certificates to the Certificateholders. Upon
discovery by the Servicer, any Subservicer, the Owner Trustee or the Indenture
Trustee of a breach of any of such representations and warranties which
materially and adversely affects the value of the Business Loans or the interest
of the Notes and Certificates therein or which materially and adversely affects
the interests of the Notes and Certificates in the related Business Loan in the
case of a representation and warranty relating to a particular Business Loan
(notwithstanding that such representation and warranty was made to the Seller's
best knowledge), the party discovering such breach shall give prompt written
notice to the others. Within 60 days of the earlier of its discovery or its
receipt of notice of any breach of a representation or warranty, the Seller
shall (a) promptly cure such breach in all material respects, (b) purchase such
Business Loan by depositing in the applicable Principal and Interest Account, on
the next succeeding Determination Date, an amount in the manner specified in
Section 2.05(b), or (c) if within two years of the Closing Date, remove such
Business Loan from the Trust Fund (in which case it shall become a Deleted
Business Loan) and substitute one or more Qualified Substitute Business Loans
provided such substitution is effected not later than the

                                      -19-
<PAGE>   26

date which is two years after the Closing Date or at such later date, if the
Indenture Trustee receives an Opinion of Counsel that such substitution would
not constitute a Prohibited Transaction at any time the Notes are outstanding.
Any such substitution shall be accompanied by payment by the Seller of the
Substitution Adjustment, if any.

                  As to any Deleted Business Loan for which the Seller
substitutes a Qualified Substitute Business Loan or Loans, the Servicer shall
effect such substitution by delivering to the Indenture Trustee a certification
in the form attached hereto as Exhibit I, executed by a Servicing Officer, and
shall also deliver to the Indenture Trustee, the documents constituting the
Indenture Trustee's Document File for such Qualified Substitute Business Loan or
Loans.

                  The Servicer shall deposit in the applicable Principal and
Interest Account all payments of principal received in connection with such
Qualified Substitute Business Loan or Loans after the date of such substitution
together with all interest (net of the Servicing Fee). Monthly Payments received
with respect to Qualified Substitute Business Loans on or before the date of
substitution will be retained by the Seller. The Trust will own all payments
received with respect to the Deleted Business Loan on or before the date of
substitution, and the Seller shall thereafter be entitled to retain all amounts
subsequently received in respect of such Deleted Business Loan. The Servicer
shall give written notice to the Indenture Trustee that such substitution has
taken place and shall amend the Business Loan Schedule to reflect the removal of
such Deleted Business Loan from the terms of this Agreement and the substitution
of the Qualified Substitute Business Loan or Loans. Upon such substitution, such
Qualified Substitute Business Loan or Loans shall be subject to the terms of
this Agreement in all respects, including Sections 2.04 and 2.05, and the Seller
shall be deemed to have made with respect to such Qualified Substitute Business
Loan or Loans, as of the date of substitution, the covenants, representations
and warranties set forth in Sections 3.01 and 3.02. On the date of such
substitution, the Seller will remit to the Servicer, and the Servicer will
deposit into the applicable Principal and Interest Account an amount equal to
the Substitution Adjustment.

                  In addition to the cure, purchase and substitution obligation
in Section 2.05 and this Section 3.03, the Seller shall indemnify and hold
harmless the Trust, the Indenture Trustee, the Noteholders and the
Certificateholders against any loss, damages, penalties, fines, forfeitures,
reasonable legal fees and related costs, judgments and other costs and expenses
resulting from any claim, demand, defense or assertion based on or grounded
upon, or resulting from, a breach of the Seller's representations and warranties
contained in this Agreement. It is understood and agreed that the obligations of
the Seller set forth in Sections 2.05 and 3.03 to cure, purchase or substitute
for a defective Business Loan and to indemnify the Noteholders, the
Certificateholders, the Indenture Trustee and the Owner Trustee as provided in
Sections 2.05 and 3.03 constitute the sole remedies of the Indenture Trustee,
the Noteholders, the Certificateholders and the Owner Trustee, respecting a
breach of the foregoing representations and warranties.

                  Any cause of action against the Servicer or the Seller
relating to or arising out of the breach of any representations and warranties
made in Sections 2.05, 3.01 or 3.02 shall accrue as to any Business Loan upon
(i) discovery of such breach by any party and notice thereof to the

                                      -20-
<PAGE>   27

Seller and or notice thereof by the Seller to the Indenture Trustee, (ii)
failure by the Seller to cure such breach or purchase or substitute such
Business Loan as specified above, and (iii) demand upon the Seller by the
Indenture Trustee for all amounts payable hereunder in respect of such Business
Loan.

                                      -21-

<PAGE>   28

                                   ARTICLE IV.

                 ADMINISTRATION AND SERVICING OF BUSINESS LOANS

         Section 4.01 Duties of the Servicer.

         (a) The Servicer, as an independent contract servicer, shall service
and administer the Business Loans and shall have full power and authority,
acting alone, to do any and all things in connection with such servicing and
administration which the Servicer may deem necessary or desirable and consistent
with the terms of this Agreement. The Servicer may enter into Subservicing
Agreements for any servicing and administration of Business Loans so long as the
Rating Agency Condition is satisfied. The Servicer shall be entitled to
terminate any Subservicing Agreement in accordance with the terms and conditions
of such Subservicing Agreement and to either itself directly service the related
Business Loans or enter into a Subservicing Agreement with a successor
subservicer which qualifies hereunder.

         (b) Notwithstanding any Subservicing Agreement, any of the provisions
of this Agreement relating to agreements or arrangements between the Servicer
and Subservicer or reference to actions taken through a Subservicer or
otherwise, the Servicer shall remain obligated and primarily liable to the
Indenture Trustee and the Noteholders for the servicing and administering of the
Business Loans in accordance with the provisions of this Agreement, without
diminution of such obligation or liability by virtue of such Subservicing
Agreements or arrangements or by virtue of indemnification from the Subservicer
and to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering the Business Loans. For purposes
of this Agreement, the Servicer shall be deemed to have received payments on
Business Loans when any Subservicer has received such payments. The Servicer
shall be entitled to enter into any agreement with a Subservicer for
indemnification of the Servicer by such Subservicer, and nothing contained in
this Agreement shall be deemed to limit or modify such indemnification.

         (d) Any Subservicing Agreement that may be entered into and any
transactions or services relating to the Business Loans involving a Subservicer
in its capacity as such and not as an originator shall be deemed to be between
the Subservicer and the Servicer alone, and the Indenture Trustee and the
Noteholders shall not be deemed parties thereto and shall have no claims,
rights, obligations, duties or liabilities with respect to the Subservicer
except as set forth in Section 4.01(e).

         (e) In the event the Servicer shall for any reason no longer be the
Servicer (including by reason of a Servicer Termination Event), the Indenture
Trustee or its designee shall, subject to Section 9.02 hereof, thereupon assume
all of the rights and obligations of the Servicer under each Subservicing
Agreement that the Servicer may have entered into, unless the Indenture Trustee
is then permitted and elects to terminate any Subservicing Agreement in
accordance with its terms. The Indenture Trustee, its designee or the successor
servicer for the Indenture Trustee shall be deemed to have assumed all of the
Servicer's interest therein and to

                                      -22-
<PAGE>   29
have replaced the Servicer as a party to each Subservicing Agreement to the same
extent as if the Subservicing Agreements had been assigned to the assuming
party, except that the Servicer shall not thereby be relieved of any liability
or obligations under the Subservicing Agreements. The Servicer at its expense
and without right of reimbursement therefor, shall, upon request of the
Indenture Trustee, deliver to the assuming party all documents and records
relating to each Subservicing Agreement and the Business Loans then being
serviced and an accounting of amounts collected and held by it and otherwise use
its best efforts to effect the orderly and efficient transfer of the
Subservicing Agreements to the assuming party.

         (f) Consistent with the terms of this Agreement, the Servicer may
waive, modify or vary any term of any Business Loan or consent to the
postponement of strict compliance with any such term or in any manner grant
indulgence to any Obligor if in the Servicer's determination such waiver,
modification, postponement or indulgence is not materially adverse to the
interests of the Noteholders, provided, however, that (unless (x) the Obligor is
in default with respect to the Business Loan, or such default is, in the
judgment of the Servicer, imminent and (y) the Servicer determines that any
modification would not be considered a new loan for federal income tax purposes)
the Servicer may not permit any modification with respect to any Business Loan
that would change the Business Loan Interest Rate, defer (subject to Section
4.12), or forgive the payment of any principal or interest (unless in connection
with the liquidation of the related Business Loan), or extend the final maturity
date on such Business Loan. No costs incurred by the Servicer or any Subservicer
in respect of Servicing Advances shall for the purposes of distributions to
Noteholders be added to the amount owing under the related Business Loan.
Without limiting the generality of the foregoing, the Servicer shall continue,
and is hereby authorized and empowered to execute and deliver on behalf of the
Trust, the Indenture Trustee, the Owner Trustee, each Noteholder and each
Certificateholder, all instruments of satisfaction or cancellation, or of
partial or full release, discharge and all other comparable instruments, with
respect to the Business Loans and with respect to any Mortgaged Properties or
other Collateral. If reasonably required by the Servicer, the Indenture Trustee,
on behalf of the Trust, shall furnish the Servicer, within 5 Business Days of
receipt of the Servicer's request, with any powers of attorney and other
documents necessary or appropriate to enable the Servicer to carry out its
servicing and administrative duties under this Agreement. Any such request to
the Indenture Trustee, on behalf of the Trust, shall be accompanied by a
certification in the form of Exhibit I attached hereto signed by a Servicing
Officer.

         The Servicer, in servicing and administering the Business Loans, shall
employ or cause to be employed procedures (including collection, foreclosure and
Foreclosed Property management procedures) and exercise the same care that it
customarily employs and exercises in servicing and administering business loans
for its own account, giving due consideration to the Noteholders' and
Certificateholders' reliance on the Servicer.

         (g) On and after such time as the Indenture Trustee and the Trust
receive the resignation of, or notice of the removal of, the Servicer from its
rights and obligations under this Agreement, and with respect to resignation
pursuant to Section 8.04, after receipt of the Opinion of Counsel required
pursuant to Section 8.04 addressed to the Indenture Trustee, the Indenture

                                      -23-
<PAGE>   30
Trustee or its designee shall assume all of the rights and obligations of the
Servicer, subject to Section 9.02 hereof. The Servicer shall, upon request of
the Indenture Trustee but at the expense of the Servicer, deliver to the
Indenture Trustee all documents and records (including computer tapes and
diskettes) relating to the Business Loans and an accounting of amounts collected
and held by the Servicer and otherwise use its best efforts to effect the
orderly and efficient transfer of servicing rights and obligations to the
assuming party.

         (h) The Servicer shall perform the duties of the Issuer and the Owner
Trustee under the Basic Documents. In furtherance of the foregoing, the Servicer
shall consult with the Owner Trustee as the Servicer deems appropriate regarding
the duties of the Issuer and the Owner Trustee under the Basic Documents. The
Servicer shall monitor the performance of the Issuer and the Owner Trustee and
shall advise the Owner Trustee when action is necessary to comply with the
Issuer's or the Owner Trustee's duties under the Basic Documents. The Servicer
shall prepare for execution by the Owner Trustee or shall cause the preparation
by other appropriate Persons of all such documents, reports, filings,
instruments, certificates and opinions as it shall be the duty of the Issuer or
the Owner Trustee to prepare, file or deliver pursuant to the Basic Documents.

         (i) In addition to the duties of the Servicer set forth in this
Agreement or any of the Basic Documents, the Servicer shall perform such
calculations and shall prepare for execution by the Issuer or the Owner Trustee
or shall cause the preparation by other appropriate Persons of all such
documents, reports, filings, instruments, certificates and opinions as it shall
be the duty of the Issuer to prepare, file or deliver pursuant to state and
federal tax and securities laws. In accordance with the directions of the Issuer
or the Owner Trustee, the Servicer shall administer, perform or supervise the
performance of such other activities in connection with the Issuer as are not
covered by any of the foregoing provisions and as are expressly requested by the
Issuer or the Owner Trustee and are reasonably within the capability of the
Servicer.

         (j) Notwithstanding anything in this Agreement or any of the Basic
Documents to the contrary, the Servicer shall be responsible for promptly
notifying the Owner Trustee and the Paying Agent in the event that any
withholding tax is imposed on the Issuer's payments (or allocations of income)
to a Noteholder or a Certificateholder. Any such notice shall be in writing and
specify the amount of any withholding tax required to be withheld by the Owner
Trustee or the Paying Agent pursuant to such provision.

         (k) The Servicer shall prepare and file, on behalf of the Issuer, all
tax returns tax elections, financial statements and such annual or other reports
of the Issuer as are necessary for the preparation of tax reports as provided in
the Trust Agreement or required by applicable law. All tax returns will be
signed by the Servicer on behalf of the Issuer.

         (l) The Servicer shall maintain appropriate books of account and
records relating to services performed under this Agreement, which books of
account and records shall be accessible for inspection by the Owner Trustee at
any time during normal business hours.

                                      -24-
<PAGE>   31
         (m) The Servicer shall furnish to the Owner Trustee from time to time
such additional information regarding the Issuer or the Basic Documents as the
Owner Trustee shall reasonably request.

         For so long as any of the Notes are outstanding and are "restricted
securities" within the meaning of Rule 144 (a) (3) of the Securities Act, (1)
the Servicer will provide or cause to be provided to any holder of such Notes
and any prospective purchaser thereof designated by such holder, upon the
request of such a holder or prospective purchaser, the information required to
be provided to such holder or prospective purchaser by Rule 144A(d) (4) under
the Securities Act; and (2) the Servicer shall update such information from time
to time in order to prevent such information from becoming false and misleading
and will take such other actions as are necessary to ensure that the safe harbor
exemption from the registration requirements of the Securities Act under Rule
144A is and will be available for resales of such Notes conducted in accordance
with Rule 144A.

         Section 4.02 Liquidation of Business Loans.

         In the event that any payment due under any Business Loan and not
postponed pursuant to Section 4.01 is not paid when the same becomes due and
payable, or in the event the Obligor fails to perform any other covenant or
obligation under the Business Loan, the Servicer shall take such action as it
shall deem to be in the best interests of the Noteholders and
Certificateholders. The Servicer shall foreclose upon or otherwise comparably
effect the ownership in the name of the Trust of Mortgaged Properties or other
Collateral relating to defaulted Business Loans for which the related Business
Loan is still outstanding, as to which no satisfactory arrangements can be made
for collection of delinquent payments in accordance with the provisions of
Section 4.10. In connection with such foreclosure or other conversion, the
Servicer shall exercise collection and foreclosure procedures with the same
degree of care and skill in its exercise or use as it would exercise or use
under the circumstances in the conduct of its own affairs. Any amounts advanced
in connection with such foreclosure or other action shall constitute "Servicing
Advances." The Servicer shall take into account the existence of any hazardous
substances, hazardous wastes or solid wastes on Mortgaged Properties in
determining whether to foreclose upon or otherwise comparably convert the
ownership of such Mortgaged Property, and will not foreclose on a Mortgaged
Property where it has cause to believe such substances exist unless it (i) has
received a Phase I environmental report and such report reveals no environmental
problems, or (ii) any problems revealed by such Phase I environmental report
have been corrected or such Mortgaged Property is subject to an environmental
rehabilitation for which the Servicer is not responsible.

         After a Business Loan has become a Liquidated Business Loan, the
Servicer shall promptly prepare and forward to the Indenture Trustee and upon
request, any Noteholder or Certificateholder, a Liquidation Report, in the form
attached hereto as Exhibit J, detailing the Liquidation Proceeds received from
the Liquidated Business Loan, expenses incurred with respect thereto, and any
loss incurred in connection therewith.

                                      -25-
<PAGE>   32
         Section 4.03   Establishment of Principal and
                        Interest Accounts; Deposits in
                        Principal and Interest Accounts.

         (a) The Servicer shall cause to be established and maintained one or
more Principal and Interest Accounts, in one or more Eligible Deposit Accounts,
in the form of time deposit or demand accounts, which may be interest-bearing or
such accounts may be trust accounts wherein the moneys therein are invested in
Permitted Instruments, titled "First International Bank, as Servicer, in trust
for the registered holders of FIB Business Loan Notes, Series 1999-A." All funds
in such Principal and Interest Accounts shall be insured by the BIF or SAIF
administered by the FDIC to the maximum extent provided by law. The creation of
any Principal and Interest Account shall be evidenced by a letter agreement in
the form of Exhibit C hereto.

         A copy of such letter agreement shall be furnished to the Indenture
Trustee, the Owner Trustee and, upon request, any Noteholder or
Certificateholder.

         (b) The Servicer and each Subservicer shall deposit without duplication
(within two Business Days of receipt thereof) in the applicable Principal and
Interest Account and retain therein:

                           (i) all payments received on or after the Cut-Off
                  Date on account of principal on the Business Loans, including
                  all Excess Payments, Principal Prepayments and Curtailments
                  collected on or after the Cut-Off Date;

                           (ii) all payments received on or after the Cut-Off
                  Date on account of interest on the Business Loans (net of the
                  Servicing Fee with respect to each Business Loan and other
                  servicing compensation payable to the Servicer as permitted
                  herein);

                           (iii) all Net Liquidation Proceeds;

                           (iv) all Insurance Proceeds (other than amounts to be
                  applied to restoration or repair of any related Mortgaged
                  Property, or to be released to the Obligor in accordance with
                  customary servicing procedures);

                           (v) all Released Mortgaged Property Proceeds and any
                  other proceeds from any other released property securing the
                  Business Loans;

                           (vi) any amounts paid in connection with the
                  repurchase of any Business Loan and the amount of any
                  Substitution Adjustment received pursuant to Sections 2.05 and
                  3.03;

                                      -26-
<PAGE>   33
                           (vii) any amount required to be deposited in the
                  Principal and Interest Account pursuant to Section 4.04 or
                  4.10; and

                           (viii) the amount of any losses incurred in
                  connection with investments in Permitted Instruments.

         (c) The foregoing requirements for deposit in the applicable Principal
and Interest Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, payments with respect to the
Servicing Fee (to the extent received and permitted by Section 6.03), with
respect to each Business Loan, together with the difference between any
Liquidation Proceeds and the related Net Liquidation Proceeds, need not be
deposited by the Servicer in the applicable Principal and Interest Account.

         (d) Any interest earnings on funds held in the applicable Principal and
Interest Account paid by an Eligible Deposit Account shall be for the account of
the Servicer and may only be withdrawn from the applicable Principal and
Interest Account by the Servicer immediately following its monthly remittance to
the Indenture Trustee pursuant to Section 4.04(a). Any reference herein to
amounts on deposit in the applicable Principal and Interest Account shall refer
to amounts net of such investment earnings.

         Section 4.04   Permitted Withdrawals From the Applicable
                        Principal and Interest Account.

         The Servicer shall withdraw funds from the applicable Principal and
Interest Account for the following purposes:

         (a) to effect the remittance to the Indenture Trustee on each
Determination Date for deposit into the Note Distribution Account that portion
of the Available Funds for the related Remittance Date that is net of
Compensating Interest, the Monthly Advances and amounts then on deposit in the
Spread Account (and, with respect to the Determination Dates occurring during
the Funding Period, net of amounts then on deposit in the Pre-Funding Account
and the Capitalized Interest Account);

         (b) to reimburse itself for any accrued unpaid Servicing Fees,
unreimbursed Monthly Advances and for unreimbursed Servicing Advances to the
extent deposited in the Principal and Interest Account (and not netted from
Monthly Payments received). The Servicer's right to reimbursement for unpaid
Servicing Fees and, except as provided in the following sentence, Servicing
Advances and Monthly Advances shall be limited to Liquidation Proceeds, Released
Mortgaged Property Proceeds, Insurance Proceeds and such other amounts as may be
collected by the Servicer from the Obligor or otherwise relating to the Business
Loan in respect of which such unreimbursed amounts are owed. The Servicer's
right to reimbursement for Servicing Advances and Monthly Advances in excess of
such amounts shall be limited to any late collections of interest received on
the Business Loans generally, including Liquidation Proceeds, Released Mortgaged
Property Proceeds, Insurance Proceeds and any other amounts;

                                      -27-
<PAGE>   34
provided, however, that the Servicer's right to such reimbursement pursuant
hereto shall be subordinate to the rights of the Noteholders and may be
exercised only if the Spread Balance equals the then applicable Specified Spread
Account Requirement;

         (c) to withdraw any amount received from an Obligor that is recoverable
and sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the United States Bankruptcy Code in accordance with a final,
nonappealable order of a court having competent jurisdiction;

         (d) (i) to make investments in Permitted Instruments and (ii) to pay to
itself, as permitted by Section 4.03(d), interest paid in respect of Permitted
Instruments or by an Eligible Deposit Account on funds deposited in the
Principal and Interest Account;

         (e) to withdraw any funds deposited in the Principal and Interest
Account that were not required to be deposited therein or were deposited therein
in error;

         (f) to pay itself servicing compensation pursuant to Section 6.03
hereof or interest as permitted under the definition of Excess Proceeds; and

         (g) to clear and terminate the Principal and Interest Accounts upon the
termination of this Agreement.

         So long as no default or Servicer Termination Event shall have occurred
and be continuing, and consistent with any requirements of the Code, the
Principal and Interest Accounts shall either be maintained with an Eligible
Deposit Account as an interest-bearing account meeting the requirements set
forth in Section 4.03(a), or the funds held therein may be invested by the
Servicer (to the extent practicable) in Permitted Instruments, as directed in
writing by the Servicer. In either case, funds in the Principal and Interest
Account must be available for withdrawal without penalty, and any Permitted
Instruments must mature not later than the Business Day immediately preceding
the Determination Date next following the date of such investment (except that
if such Permitted Instrument is an obligation of the institution that maintains
such account, then such Permitted Instrument shall mature not later than such
Determination Date) and shall not be sold or disposed of prior to its maturity.
All Permitted Instruments must be held by or registered in the name of "First
International Bank, as Servicer, in trust for the registered holders of FIB
Business Loan Notes, Series 1999-A." All interest or other earnings from funds
on deposit in the Principal and Interest Account (or any Permitted Instruments
thereof) shall be the exclusive property of the Servicer, and may be withdrawn
from the Principal and Interest Account pursuant to clause (d) above. The amount
of any losses incurred in connection with the investment of funds in the
Principal and Interest Account in Permitted Instruments shall be deposited in
the Principal and Interest Account by the Servicer from its own funds
immediately as realized without reimbursement therefor.

         Section 4.05 [Intentionally Omitted]

                                      -28-
<PAGE>   35
         Section 4.06 Transfer of Accounts.

         The Servicer may, upon written notice to the Indenture Trustee,
transfer any Principal and Interest Account to a different Eligible Deposit
Account.

         Section 4.07 Maintenance of Hazard Insurance.

         The Servicer shall comply with the customary servicing procedures
concerning the issuance and maintenance of fire and hazard insurance with
extended coverage customary in the area where the Mortgaged Property is located.
If at origination of a Business Loan, to the best of the Servicer's knowledge
after reasonable investigation, the related Mortgaged Property is in an area
identified in the Federal Register by the Flood Emergency Management Agency as
having special flood hazards (and such flood insurance has been made available),
the Servicer will require the related Obligor to purchase a flood insurance
policy with a generally acceptable insurance carrier, in an amount representing
coverage not less than the least of (i) the full insurable value of the
Mortgaged Property, or (ii) the maximum amount of insurance available under the
National Flood Insurance Act of 1968, as amended. The Servicer shall also
maintain, to the extent such insurance is available, and in accordance with the
Servicer's policies, on Foreclosed Property constituting real property, fire and
hazard insurance in the amounts described above and liability insurance. Any
amounts collected by the Servicer under any such policies (other than amounts to
be applied to the restoration or repair of the Mortgaged Property, or to be
released to the Obligor in accordance with applicable law) shall be deposited in
the Principal and Interest Account, subject to withdrawal pursuant to Section
4.04. It is understood and agreed that no earthquake or other additional
insurance need be required by the Servicer of any Obligor or maintained on
Foreclosed Property, other than pursuant to such applicable laws and regulations
as shall at any time be in force and as shall require such additional insurance.
All policies required hereunder shall be endorsed with standard mortgagee
clauses with losses payable to the Servicer or its affiliates.

         Section 4.08 [Intentionally Omitted].

         Section 4.09 Fidelity Bond.

         The Servicer shall maintain with a responsible company, and at its own
expense, a blanket fidelity bond and an errors and omissions insurance policy,
in a minimum amount equal to $1,500,000,and a maximum deductible of $100,000, if
commercially available, with coverage on all employees acting in any capacity
requiring such persons to handle funds, money, documents or papers relating to
the Business Loans ("Servicer Employees"). The fidelity bond shall insure the
Indenture Trustee and the Owner Trustee, their respective officers and employees
against losses resulting from forgery, theft, embezzlement or fraud by such
Servicer Employees. The errors and omissions policy shall insure against losses
resulting from the errors, omissions and negligent acts of such Servicer
employees. No provision of this Section 4.09 requiring such fidelity bond and
errors and omissions insurance shall relieve the Servicer from its duties as set
forth in this Agreement. Upon the request of the Indenture Trustee, the Owner
Trustee or any

                                      -29-
<PAGE>   36
Noteholder or Certificateholder, the Servicer shall cause to be delivered to the
Indenture Trustee, Owner Trustee or such Noteholder or such Certificateholder a
certified true copy of such fidelity bond and insurance policy. The current
issuer of such fidelity bond and insurance policy is The Hartford Underwriters
Insurance Company.

         Section 4.10 Title, Management and Disposition of Foreclosed Property.

         In the event that title to a Mortgaged Property or other Collateral is
acquired in foreclosure or by deed in lieu of foreclosure or by other legal
process (a "Foreclosed Property"), the deed or certificate of sale, or the
repossessed Collateral shall be taken in the name of the Trust for the benefit
of the Noteholders and Certificateholders.

         The Servicer, subject to Sections 4.01 and 4.02 hereof, shall manage,
conserve, protect and operate each Foreclosed Property for the Noteholders and
the Certificateholders solely for the purpose of its prudent and prompt
disposition and sale. The Servicer shall, either itself or through an agent
selected by the Servicer, manage, conserve, protect and operate the Foreclosed
Property in the same manner that it manages, conserves, protects and operates
other foreclosed property for its own account, and in the same manner that
similar property in the same locality as the Foreclosed Property is managed. The
Servicer shall attempt to sell the same (and may temporarily rent the same) on
such terms and conditions as the Servicer deems to be in the best interest of
the Noteholders and Certificateholders.

         The Servicer shall cause to be deposited in the Principal and Interest
Account, no later than five Business Days after the receipt thereof, all
revenues received with respect to the conservation and disposition of the
related Foreclosed Property net of Servicing Advances.

         The disposition of Foreclosed Property shall be carried out by the
Servicer at such price, and upon such terms and conditions, as the Servicer,
deems to be in the best interest of the Noteholders and the Certificateholders.
The proceeds of sale of the Foreclosed Property shall promptly, but in no event
later than two Business Days after receipt, be deposited in the Principal and
Interest Account as received from time to time and, as soon as practicable
thereafter, the expenses of such sale shall be paid, the Servicer shall, subject
to Section 4.04, reimburse itself for any related unreimbursed Servicing
Advances, unpaid Servicing Fees and unreimbursed Monthly Advances, and the
Servicer shall deposit in the Principal and Interest Account the net cash
proceeds of such sale to be distributed to the Noteholders in accordance with
Section 5.07 hereof.

         Section 4.11 [Intentionally Omitted].

                                      -30-
<PAGE>   37
          Section 4.12      Collection of Certain Business
                            Loan Payments.

         The Servicer shall make reasonable efforts to collect all payments
called for under the terms and provisions of the Business Loans, and shall, to
the extent such procedures shall be consistent with this Agreement, comply with
the terms and provisions of any applicable hazard insurance policy. Consistent
with the foregoing , the Servicer may in its discretion waive or permit to be
waived any fee or charge which the Servicer would be entitled to retain
hereunder as servicing compensation and extend the due date for payments due on
a Business Note for a period (with respect to each payment as to which the due
date is extended) not greater than 180 days after the initially scheduled due
date for such payment provided that the Servicer determines such extension would
not be considered a new mortgage loan for federal income tax purposes. In the
event the Servicer shall consent to the deferment of the due dates for payments
due on a Business Note, the Servicer shall nonetheless make payment of any
required Monthly Advance with respect to the payments so extended to the same
extent as if such installment were due, owing and delinquent and had not been
deferred, and shall be entitled to reimbursement therefor in accordance with
Section 4.04(b) hereof.

         Section 4.13      Access to Certain Documentation and
                           Information Regarding the Business Loans.

         The Servicer shall provide to the Owner Trustee, the Indenture Trustee,
the FDIC, the OCC, the Federal Reserve, the Office of Thrift Supervision and the
supervisory agents and examiners of the foregoing, access to the documentation
regarding the Business Loans required by applicable local, state and federal
regulations, such access being afforded without charge but only upon reasonable
request and during normal business hours at the offices of the Servicer
designated by it.

                                      -31-
<PAGE>   38
                                    ARTICLE V

                       PAYMENTS TO THE CERTIFICATEHOLDERS

          Section 5.01       Establishment of Note Distribution Account;
                             Deposits in Note Distribution Account; Permitted
                             Withdrawals from Note Distribution Account.

         (a) No later than the Closing Date, the Indenture Trustee will
establish and maintain with itself in its trust department a trust account,
which shall not be interest-bearing, titled "Note Distribution Account, HSBC
Bank USA, as Indenture Trustee for the registered holders of FIB Business Loan
Notes, Series 1999-A" (the " Note Distribution Account"). The Indenture Trustee
shall, promptly upon receipt, deposit in the Note Distribution Account and
retain therein:

                           (i) the Available Funds (net of the amount of Monthly
                  Advances and Compensating Interest deposited pursuant to
                  subclause (ii) below and the amount on deposit in the Spread
                  Account);

                           (ii) the Compensating Interest and the portion of the
                  Monthly Advance remitted to the Indenture Trustee by the
                  Servicer;

                           (iii) amounts transferred from the Spread Account
                  pursuant to Section 5.02(b)(i);

                           (iv) amounts required to be paid by the Servicer
                  pursuant to Section 5.06(e) in connection with losses on
                  investments of amounts in the Accounts; and

                           (v) amounts transferred from the Pre-Funding Account
                  and the Capitalized Interest Account on the Special Remittance
                  Date pursuant to Sections 5.04(c) and (h), respectively.

         (b) Amounts on deposit in the Note Distribution Account shall be
withdrawn on each Remittance Date by the Indenture Trustee, or the Paying Agent,
on its behalf, to effect the distribution described in Section 5.07(b) and
thereafter by the following parties in no particular order of priority:

                           (i) by the Indenture Trustee, to invest amounts on
                  deposit in the Note Distribution Account in Permitted
                  Instruments pursuant to Section 5.06;

                           (ii) by the Indenture Trustee, to pay on a monthly
                  basis to the Servicer as additional servicing compensation
                  interest paid and earnings realized on Permitted Instruments;

                                      -32-
<PAGE>   39
                           (iii) by the Indenture Trustee, to withdraw any
                  amount not required to be deposited in the Note Distribution
                  Account or deposited therein in error; and

                           (iv) by the Indenture Trustee, to clear and terminate
                  the Note Distribution Account upon the termination of this
                  Agreement in accordance with the terms of Section 10.01
                  hereof.

         Section 5.02      Establishment of Spread Account;
                           Deposits in Spread Account; Permitted
                           Withdrawals from Spread Account.

         (a) No later than the Closing Date, the Indenture Trustee will
establish and maintain with itself in its trust department a trust account,
which shall not be interest bearing, titled "Spread Account, HSBC Bank USA, as
Indenture Trustee for the registered holders of FIB Business Loan Notes, Series
1999-A" (the "Spread Account"). The Spread Account shall constitute part of the
Trust Fund, and the funds held therein may be invested in Permitted Instruments.
On the Closing Date, the Indenture Trustee will make an initial cash deposit
from the proceeds of the sale of the Class A, Class M-1 and Class M-2 Notes into
the Spread Account in an amount equal to $3,900,000. Thereafter, on each
Remittance Date, the Indenture Trustee shall, promptly upon receipt, deposit
into the Spread Account:

                           (i) that portion of the Available Funds required to
                  be deposited into the Spread Account pursuant to Section
                  5.07(b)(x) until the Spread Balance equals the then applicable
                  Specified Spread Account Requirement; and

                           (ii) amounts required to be paid by the Servicer
                  pursuant to Section 5.06(e) in connection with losses on
                  investments of amounts in the Spread Account.

         (b) Amounts on deposit in the Spread Account shall be withdrawn by
Indenture Trustee for distribution in the manner set forth in subclause (c)
below on each Remittance Date in the following order of priority:

                           (i) to deposit in the Note Distribution Account an
                  amount by which (a) the sum of (i) the Class A, Class M-1 and
                  Class M-2 Interest Distribution Amounts, (ii) the Class A,
                  Class M-1 and Class M-2 Principal Distribution Amounts, (iii)
                  the Class M-1 and Class M-2 Carry Forward Interest Amounts and
                  (iv) the Class A, Class M-1 and Class M-2 Carry Forward
                  Amounts exceeds (b) the Available Funds for such Remittance
                  Date (but excluding from such definition, amounts in the
                  Spread Account);

                           (ii) to deposit in the Note Distribution Account the
                  amount, if any, required to make the full distribution to the
                  Expense Account pursuant to Section 5.07(b)(vii); and

                                      -33-
<PAGE>   40
                           (iii) to the extent that the amount then on deposit
                  in the Spread Account after giving effect to all required
                  transfers from the Spread Account to the Note Distribution
                  Account on such Remittance Date then exceeds the Specified
                  Spread Account Requirement as of such Remittance Date (such
                  excess, a "Spread Account Excess"), an amount equal to such
                  Spread Account Excess shall be distributed first, to make any
                  payments required pursuant to Section 5.07(b)(xi) -- (xviii),
                  in that order, and then, to the Holders of the Certificates;

and also, in no particular order of priority:

                           (iv) to invest amounts on deposit in the Spread
                  Account in Permitted Instruments pursuant to Section 5.06;

                           (v) to withdraw any amount not required to be
                  deposited in the Spread Account or deposited therein in error;
                  and

                  (vi) to clear and terminate the Spread Account upon the
                  termination of this Agreement in accordance with the terms of
                  Section 10.01.

         (c) Any amounts which are required to be withdrawn from the Spread
Account pursuant to paragraph (b) above shall be withdrawn from the Spread
Account in the following order of priority: (i) first, from any uninvested funds
therein, and (ii) second, from the proceeds of the liquidation of any
investments therein pursuant to Section 5.06(b).

         (d) Any amounts which are distributed by the Indenture Trustee to the
holders of the Certificates pursuant to paragraph (b) above will not be required
to be refunded, regardless of whether there are sufficient funds on a Subsequent
Remittance Date to make a full distribution to holders of the Notes on such
Remittance Date.

         Section 5.03      Establishment of Expense Account;
                           Deposits in Expense Account; Permitted
                           Withdrawals from Expense Account

         (a) No later than the Closing Date, the Indenture Trustee will
establish with itself an account (the "Expense Account"). The Expense Account
shall not constitute part of the Trust Fund and is for the benefit of the
Indenture Trustee and the Owner Trustee to pay their fees and expenses related
to the Trust and, on a subordinate basis, for the benefit of the Servicer as
described in (b)(ii) and (c) below. The Indenture Trustee shall deposit into the
Expense Account:

                           (i) on each Remittance Date from the amounts on
                  deposit in the Note Distribution Account an amount equal to
                  one-twelfth of the Annual Expense Escrow Amount; and

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<PAGE>   41
                           (ii) upon receipt, amounts required to be paid by the
                  Servicer pursuant to Section 5.06(e) in connection with losses
                  on investments of amounts in the Expense Account.

If, at any time the amount then on deposit in the Expense Accounts shall be
insufficient to pay in full the fees and expenses of the Indenture Trustee and
the Owner Trustee then due, the Indenture Trustee and the Owner Trustee shall
make demand on the Servicer to advance the amount of such insufficiency, and the
Servicer shall promptly advance such amount. Thereafter, the Servicer shall be
entitled to reimbursement from the Expense Account for the amount of any such
advance from any excess funds available pursuant to subclause (c)(ii) below.
Without limiting the obligation of the Servicer to advance such insufficiency,
in the event the Servicer does not advance the full amount of such insufficiency
by the Business Day immediately preceding the Determination Date, the amount of
such insufficiency shall be deposited into the Expense Account for payment to
the Indenture Trustee pursuant to Section 5.07(b)(vii), to the extent of
available funds in the Note Distribution Account.

         (b) The Indenture Trustee may invest amounts on deposit in the Expense
Accounts in Permitted Instruments pursuant to Section 5.06 hereof, and the
Indenture Trustee shall withdraw amounts on deposit in the Expense Accounts to:

                           (i) pay the Indenture Trustee's and Owner Trustee's
                  fees and expenses as described in Section 2.08 hereof;

                           (ii) pay on a monthly basis to the Servicer as
                  additional servicing compensation interest paid and earnings
                  realized on Permitted Instruments;

                           (iii) withdraw any amounts not required to be
                  deposited in the Expense Accounts or deposited therein in
                  error; and

                           (iv) clear and terminate the Expense Account upon the
                  termination of this Agreement in accordance with the terms of
                  Section 10.01.

         (c) On the twelfth Remittance Date following the Closing Date, and on
each twelfth Remittance Date thereafter, the Indenture Trustee shall determine
that all payments required to be made during the prior twelve month period
pursuant to subclauses (b)(i), (b)(ii) and (b)(iii) above, have been made, and,
if all such payments have been made, from the amounts remaining in the Expense
Accounts, the Indenture Trustee shall (in the following order of priority):

                           (i) reimburse the Servicer and/or the Seller, for
                  reimbursable advances made pursuant to Section 8.01;

                           (ii) reimburse the Servicer for advances made by it
                  pursuant to the last paragraph of subclause (a) above; and

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<PAGE>   42
                           (iii) remit to the Servicer as additional servicing
                  compensation any amounts remaining in the Expense Account
                  after payments made pursuant to subclauses (b)(i), (b)(ii),
                  (b)(iii), (c)(i) and (c)(ii), above.

         Section 5.04      Pre-Funding Account and Capitalized
                           Interest Account

         (a) No later than the Closing Date, the Indenture Trustee shall
establish and maintain in its trust department a trust account, which shall not
be interest-bearing, titled "FIB Business Loan Pre-Funding Account 1999-A" (the
"Pre-Funding Account"). The Pre-Funding Account shall constitute part of the
Trust Fund and may only be invested in Permitted Investments. The Indenture
Trustee shall, promptly upon receipt, deposit into the Pre-Funding Account and
retain therein the Original Pre-Funded Amount in an amount equal to the sum of
$10,024,756.59 from the proceeds of the sale of the Class A Notes.

         (b) On each Subsequent Transfer Date, the Servicer shall instruct the
Indenture Trustee to withdraw from the Pre-Funding Account an amount equal to
100% of the aggregate Principal Balances of the Subsequent Business Loans sold
to the Trust Fund on such Subsequent Transfer Date and pay such amount to or
upon the order of the Seller with respect to such transfer. In no event shall
the Servicer be permitted to instruct the Indenture Trustee to release from the
Pre-Funding Account in excess of $10,024,756.59.

         (c) If at the end of the Funding Period amounts still remain in the
Pre-Funding Account, the Servicer shall instruct the Indenture Trustee to
withdraw from the Pre-Funding Account on the immediately following Remittance
Date and deposit such amounts in the Note Distribution Account. However, if at
the close of business on the Determination Date in December 1999 amounts still
remain in the Pre-Funding Account, the Servicer shall instruct the Indenture
Trustee to withdraw from the Pre-Funding Account on the Special Remittance Date
and deposit in the Note Distribution Account any Pre-Funded Amount then
remaining in the Pre-Funding Account.

         (d) On the Remittance Dates occurring in October, November and
December, 1999, the Indenture Trustee shall transfer from the Pre-Funding
Account to the Note Distribution Account, the Pre-Funding Earnings, if any,
applicable to each such Remittance Date.

         (e) No later than the Closing Date, the Indenture Trustee shall
establish and maintain in its trust department a trust account which shall not
be interest-bearing, titled "FIB Business Loan Capitalized Interest Account
1999-A" (the "Capitalized Interest Account"). The Capitalized Interest Account
shall constitute part of the Trust Fund and may only be invested in Permitted
Investments. The Indenture Trustee shall, promptly upon receipt, deposit into
the Capitalized Interest Account $73,000.00. If prior to the end of the Funding
Period the funds on deposit in the Pre-Funding Account are invested in a
guaranteed investment contract, repurchase agreement or other arrangement
acceptable to the Rating Agencies, that constitutes a Permitted

                                      -36-
<PAGE>   43
Instrument, the Indenture Trustee shall, within one Business Day of its receipt
of notification of satisfaction of the Rating Agency Condition, withdraw from
the Capitalized Interest Account and pay to the Seller the amount set forth in
such notification.

         (f) On the Remittance Dates occurring in October, November and
December, 1999, the Indenture Trustee shall transfer from the Capitalized
Interest Account to the Note Distribution Account, the Capitalized Interest
Requirement, if any, for such Remittance Dates.

         (g) On the Special Remittance Date, the Indenture Trustee shall
transfer from the Capitalized Interest Account to the Note Distribution Account
the Capitalized Interest Requirement, if any, for such Special Remittance Date.
Any amounts remaining in the Capitalized Interest Account after taking into
account such transfer shall be paid on such Special Remittance Date to the
Certificateholders, and the Capitalized Interest Account shall be closed.

         Section 5.05 [Intentionally Omitted]

         Section 5.06 Investment of Accounts.

         (a) So long as no default or Event of Default shall have occurred and
be continuing, and consistent with any requirements of the Code, all or a
portion of any Account which by the terms of this Agreement shall be invested in
Permitted Instruments by the Indenture Trustee, as directed in writing by the
Servicer, in one or more Permitted Instruments in the name of the Indenture
Trustee, bearing interest or sold at a discount. No such investment in the
Principal and Interest Account, Note Distribution Account, the Pre-Funding
Account, the Capitalized Interest Account and the Spread Account shall mature
later than the Business Day immediately preceding the next Remittance Date and
no such investment in the Expense Account shall mature later than the Business
Day immediately preceding the date such funds will be needed to pay fees or
premiums; provided, however, the Indenture Trustee or any affiliate thereof, may
be the obligor on any investment which otherwise qualifies as a Permitted
Instrument and any investment on which the Indenture Trustee is the obligor may
mature on such Remittance Date or date when needed, as the case may be.

         (b) If any amounts are needed for disbursement from any Account held by
the Indenture Trustee and sufficient uninvested funds are not available to make
such disbursement, the Indenture Trustee shall cause to be sold or otherwise
converted to cash a sufficient amount of the investments in such Account. The
Indenture Trustee shall not be liable for any investment loss or other charge
resulting therefrom.

         (c) The Indenture Trustee shall not in any way be held liable by reason
of any insufficiency in any Account held by the Indenture Trustee resulting from
any investment loss on any Permitted Instrument included therein (except to the
extent that the Indenture Trustee is the obligor thereon).

                                      -37-
<PAGE>   44
         (d) The Indenture Trustee shall invest and reinvest funds in the
Accounts held by the Indenture Trustee to the fullest extent practicable, in
such manner as the Servicer shall from time to time direct in writing, but only
in one or more Permitted Instruments.

         (e) All income or other gain from investments in any Account held by
the Indenture Trustee shall be deposited in such Account, immediately on
receipt, and the Indenture Trustee shall notify the Servicer of any loss
resulting from such investments. The Servicer shall remit the amount of any such
loss from its own funds, without reimbursement therefor, to the Indenture
Trustee for deposit in the Account from which the related funds were withdrawn
for investment by the next Determination Date following receipt by the Servicer
of such notice.

         Section 5.07 Distributions.

         (a) The rights of the Noteholders and Certificateholders to receive
distributions from the proceeds of the Trust Fund, and all ownership interests
of the Certificateholders in such distributions, shall be as set forth in this
Agreement.

         (b) On each Remittance Date the Indenture Trustee shall withdraw from
the Note Distribution Account an amount equal to (A) that portion of the
Available Funds received from the Servicer pursuant to Section 5.01(a)(i), (ii),
(iv) and (v) and (B) the amounts deposited therein pursuant to Section
5.02(b)(i) and make distributions thereof in the following order of priority:

         (i) first, to the Class A Noteholders, in an amount up to the Class A
Interest Distribution Amount;

         (ii) second, to the Class M-1 Noteholders, in an amount up to the Class
M-1 Interest Distribution Amount;

         (iii) third, to the Class M-2 Noteholders, in an amount up to the Class
M-2 Interest Distribution Amount;

         (iv) fourth, to the Class A Noteholders, in an amount up to the sum of
(a) the Class A Principal Distribution Amount for the Class A Notes and (b) the
Class Carry Forward Amount for the Class A Notes;

         (v) fifth, to the Class M-1 Noteholders, in an amount up to the sum of
(a) the Class M-1 Principal Distribution Amount for the Class M-1 Notes and (b)
the Class Carry Forward Amount for the Class M-1 Notes;

         (vi) sixth, to the Class M-2 Noteholders, in an amount up to the sum of
(a) the Class M-2 Principal Distribution Amount for the Class M-2 Notes and (b)
the Class Carry Forward Amount for the Class M-2 Notes;

                                      -38-
<PAGE>   45
         (vii) seventh, to the Expense Account in an amount up to one-twelfth of
the Annual Expense Escrow Amount plus any amount required to be paid to the
Owner Trustee and the Indenture Trustee pursuant to this Agreement;

         (viii) eighth, to the Servicer, certain amounts reimbursable pursuant
to the Sale and Servicing Agreement;

         (ix) ninth, to the Class A, Class M-1 and Class M-2 Noteholders, pro
rata based upon their Class Principal Balance, until the first Remittance Date
on which the Overcollateralization equals the OC Target Amount;

         (x) tenth, to the Spread Account, unless and until the amount therein
equals the Specified Spread Account Requirement;

         (xi) eleventh, to the Class A Noteholders, any Interest Carryover for
the Class A Notes;

         (xii) twelfth, to the Class M-1 Noteholders, any Interest Carryover for
the Class M-1 Notes;

         (xiii) thirteenth, to the Class M-2 Noteholders, any Interest Carryover
for the Class M-2 Notes;

         (xiv) fourteenth, to the Class B Noteholders, in an amount up to the
Class B Interest Distribution Amount, minus the Class Carry Forward Interest
Amount for the Class B Notes;

         (xv) fifteenth, to the Class B Noteholders, in an amount up to the
Class B Principal Distribution Amount for the Class B Notes;

         (xvi) sixteenth, to the Class B Noteholders, the Class Carry Forward
Interest Amount for the Class B Notes;

         (xvii) seventeenth, to the Class B Noteholders, the Class Carry Forward
Amount for the Class B Notes;

         (xviii)eighteenth, to the Class B Noteholders, any Interest Carryover
for the Class B Notes; and

         (xix) nineteenth, to the Owner Trustee, for distribution to the
Certificateholders, any excess.

         Additionally, on the Special Remittance Date, the Indenture Trustee
shall withdraw from the Note Distribution Account the amount, if any, deposited
therein pursuant to

                                      -39-
<PAGE>   46
Section 5.01(a)(v) and make distributions thereof to Noteholders as follows: (i)
from amounts transferred from the Pre-Funding Account, distributions of
principal to the Notes of each Class pro rata based upon the applicable Class A,
Class M-1, Class M-2 and Class B Percentages and (ii) from amounts transferred
from the Capitalized Interest Account, distributions of interest to the Holders
of each Class of Notes equal to the Capitalized Interest Requirement.

                  (c) All distributions made to the Noteholders of a particular
Class will be made on a pro rata basis among the Noteholders of record of the
applicable Class on the next preceding Record Date based on the Percentage
Interest represented by their respective Notes, and shall be made by check or,
upon request by a Noteholders, by wire transfer of immediately available funds
to the account of such Noteholders at a bank or other entity having appropriate
facilities therefor, and, in the case of wire transfers, at the expense of such
Noteholder unless such Noteholder shall own of record Notes which have initial
principal balances aggregating at least $1,000,000.

                  Section 5.08 Determination of LIBOR.

         LIBOR applicable to the calculation of the Remittance Rate on the Notes
for any Interest Accrual Period will be determined on each LIBOR Rate Adjustment
Date.

         On each LIBOR Rate Adjustment Date, LIBOR shall be established by the
Servicer and, as to any Interest Accrual Period, will equal the rate for one
month United States dollar deposits that appears on the Telerate Screen Page
3750 as of 11:00 a.m., London time, on such LIBOR Rate Adjustment Date.
"Telerate Screen Page 3750" means the display designated as page 3750 on the
Bridge Telerate Service (or such other page as may replace page 3750 on that
service) for the purpose of displaying London interbank offered rates of major
banks). If such rate does not appear on such page (or such other page as may
replace that page on that service), or if such service is no longer offered,
LIBOR, shall be so established by use of such other service for displaying LIBOR
or comparable rates as may be selected by the Servicer, the rate will be the
Reference Bank Rate. The "Reference Bank Rate" will be determined on the basis
of the rates at which deposits in U.S. Dollars are offered by the reference
banks (which shall be any three major banks that are engaged in transactions in
the London interbank market, selected by the Servicer) as of 11:00 a.m., London
time, on the LIBOR Rate Adjustment Date to prime banks in the London interbank
market for a period of one month in amounts approximately equal to the Class
Principal Balance of the Notes then outstanding. The Servicer will request the
principal London office of each of the reference banks to provide a quotation of
its rate. If at least two such quotations are provided, the rate will be the
arithmetic mean of the quotations rounded up to the next multiple of 1/16%. If
on such date fewer than two quotations are provided as requested, the rate will
be the arithmetic mean of the rates quoted by one or more major banks in New
York City, selected by the Servicer, as of 11:00 a.m., New York City time, on
such date for loans in U.S. Dollars to leading European banks for a period of
one month in amounts approximately equal to the Class Principal Balance of the
Notes then outstanding. If no such quotations can be obtained, the rate will be
LIBOR for the prior Distribution Date.

                                      -40-
<PAGE>   47
         The establishment of LIBOR by the Servicer on any LIBOR Rate Adjustment
Date and the Servicer's subsequent calculation of the Remittance Rates
applicable to the Notes for the relevant Interest Accrual Period, in the absence
of manifest error, will be final and binding.

         Promptly following each LIBOR Rate Adjustment Date the Servicer shall
supply the Indenture Trustee with the results of its determination of LIBOR on
such date.

                  Section 5.09 Statements.

                  Each month, not later than 12:00 noon New York time on the
Determination Date, the Servicer shall deliver to the Indenture Trustee, by
telecopy, for distribution to the Noteholders, the receipt and legibility of
which shall be confirmed telephonically, with hard copy thereof and the
Servicer's Monthly Computer Tape in the form attached hereto as Exhibit L (both
in hard copy and in computer tape form) to be delivered on the Business Day
following the Determination Date, a certificate signed by a Servicing Officer (a
"Servicer's Certificate") stating the date (day, month and year), the Series
number of the Notes, the date of this Agreement, and, as of the close of
business on the Record Date for such month:

                  (i) Available Funds for the related Remittance Date;

                  (ii) The Aggregate Class A Note Principal Balance, the
Aggregate Class M-1 Note Principal Balance, the Aggregate Class M-2 Note
Principal Balance, and the Aggregate Class B Note Principal Balance as reported
in the prior Servicer's Certificate pursuant to subclause (xi) below, or, in the
case of the first Determination Date, the Original Class A, Class M-1, Class
M-2, and Class B Note Principal Balance;

                  (iii) The number and Principal Balances of all Business Loans
which were the subject of Principal Prepayments during the Due Period and the
number and Principal Balances of all Defaulted Business Loans purchased by the
Servicer during the Due Period;

                  (iv) The amount of all Curtailments which were received during
the Due Period;

                  (v) The amount of all Excess Payments and the amount of all
Monthly Payments in respect of principal received during the Due Period;

                  (vi) The aggregate amount of interest received on Business
Loans;

                  (vii) The amount of the Monthly Advances to be made on the
Determination Date and the Compensating Interest payment to be made on the
Determination Date;

                  (viii) The delinquency and foreclosure information set forth
in the form attached hereto as Exhibit K;

                                      -41-
<PAGE>   48
                  (ix) The Interest Distribution Amounts and Principal
Distribution Amounts for each Class for the Remittance Date with the components
thereof stated separately;

                  (x) The amount available in the Spread Account as of the
related Record Date in cash and from liquidation of Permitted Instruments and
the amount, if any, to be transferred from the Spread Account to the Note
Distribution Account pursuant to Section 5.02(b)(i);

                  (xi) The Aggregate Class A Note Principal Balance, Aggregate
Class M-1 Note Principal Balance, Aggregate Class M-2 Note Principal Balance and
Aggregate Class B Note Principal Balance after giving effect to the distribution
to be made on the Remittance Date;

                  (xii) The weighted average maturity and weighted average
Business Loan Interest Rate;

                  (xiii) The Servicing Fees and amounts to be deposited to the
Expense Account;

                  (xiv) The amount of all payments and reimbursements to the
Servicer;

                  (xv) The Class A, Class M-1, Class M-2 and Class B Remittance
Rates with respect to such Remittance Date;

                  (xvi) During the Funding Period, the aggregate Principal
Balance of the Subsequent Business Loans purchased during the prior Due Period
and the amount on deposit in the Pre-Funding Account as of the end of such Due
Period;

                  (xvii) The Net Interest Cap with respect to the Remittance
Date;

                  (xviii) If the Class Remittance Rate for a Class of Notes for
such Remittance Date is based on the Net Interest Cap, the amount of any
Interest Carryover for such Class of Notes for such Remittance Date;

                  (xix) the amount of the distribution, if any, allocable to
Interest Carryover and the amount of any Interest Carryover for all prior
Remittance Dates after giving effect to such distribution (in each case, stated
separately by Class and in the aggregate); and

                  (xx) Such other information as the Indenture Trustee, the
Noteholders and the Certificateholders or the Rating Agencies may reasonably
require.

                  The Indenture Trustee shall forward such report to the
Noteholders, the Certificateholders, the Owner Trustee and the Rating Agencies
on the Remittance Date, together with a separate report indicating the amount of
funds deposited in each Note Distribution Account pursuant to Section
5.01(a)(iv); and the amounts which are reimbursable to the Servicer or the
Seller pursuant to Sections 5.03(c)(i), 5.03(c)(ii) and 5.07(b)(viii) (all
reports prepared by

                                      -42-
<PAGE>   49
the Indenture Trustee of such withdrawals and deposits will be based in whole or
in part upon the information provided to the Indenture Trustee by the Servicer).

                  To the extent that there are inconsistencies between the
telecopy of the Servicer's Certificate and the hard copy thereof, the Indenture
Trustee shall be entitled to rely upon the telecopy. In the case of information
furnished pursuant to subclauses (ii), (iii), (iv), (v), (ix) and (xi), above,
the amounts shall be expressed in a separate section of the report as a dollar
amount for each Class per $1,000 original dollar amount as of the Cut-Off Date.

                  Additionally, on the Special Remittance Date the Indenture
Trustee shall, based upon information received from the Servicer, forward to the
Noteholders, the Owner Trustee and the Rating Agencies a report setting forth
the amount of principal and interest, if any, being paid to each Class of Notes
on the Special Remittance Date.

                  (a) Within a reasonable period of time after the end of each
calendar year, the Servicer shall furnish to the Indenture Trustee and the Owner
Trustee for distribution to each Person who at any time during the calendar year
was a Noteholder or a Certificateholder such information as is reasonably
necessary to provide to such Person a statement containing the information set
forth in subclauses (vi), (ix), and (xiv), above, aggregated for such calendar
year or applicable portion thereof during which such Person was a Noteholder or
a Certificateholder. Such obligation of the Servicer shall be deemed to have
been satisfied to the extent that substantially comparable information shall be
provided by the Servicer pursuant to any requirements of the Code as from time
to time are in force.

                  (b) Upon reasonable advance notice in writing, the Servicer
will provide to each Noteholder or Certificateholder which is a savings and loan
association, bank or insurance company certain reports and access to information
and documentation regarding the Business Loans sufficient to permit such
Noteholder or Certificateholder to comply with applicable regulations of the
Office of Thrift Supervision or other regulatory authorities with respect to
investment in the Notes or Certificates, as applicable.

                  (c) The Servicer shall furnish to each Noteholder and
Certificateholder, during the term of this Agreement, such periodic, special, or
other reports or information, whether or not provided for herein, as shall be
necessary, reasonable, or appropriate with respect to the Noteholder and
Certificateholder or otherwise with respect to the purposes of this Agreement,
all such reports or information to be provided by and in accordance with such
applicable instructions and directions as the Noteholder and Certificateholder
may reasonably require; provided, that the Servicer shall be entitled to be
reimbursed by such Noteholder or Certificateholder for the Servicer's actual
expenses incurred in providing such reports if such reports are not producable
in the ordinary course of the Servicer's business. The Rating Agencies shall
receive copies of any such reports or information furnished to the Noteholders
and Certificateholders.

                  Section 5.10 Advances by the Servicer.

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<PAGE>   50
                  Not later than the close of business on each Determination
Date, the Servicer shall remit to the Indenture Trustee for deposit in the Note
Distribution Account an amount (as indicated in the Servicer's Certificate
prepared pursuant to Section 5.09), to be distributed on the related Remittance
Date pursuant to Section 5.07, equal to the amount by which (i) 30 days'
interest at a rate equal to the then applicable Adjusted Business Loan
Remittance Rate on the Aggregate Class A, Class M-1, Class M-2 and Class B Note
Principal Balances immediately prior to the related Remittance Date exceeds (ii)
the amount received by the Servicer as of the related Record Date in respect of
interest on the Business Loans (plus, for the Remittance Dates during the
Funding Period, the sum of (i) all funds to be transferred to the Note
Distribution Account from the Capitalized Interest Account for such Remittance
Date pursuant to Section 5.04(g) and (ii) the Pre-Funding Earnings for the
applicable Remittance Date), such excess being defined herein as the "Monthly
Advance." The Servicer may reimburse itself for Monthly Advances made pursuant
to Section 4.04. Notwithstanding the foregoing, the Servicer shall not be
required to make a Monthly Advance with respect to a Business Loan if it
determines, in good faith, that such advance would be nonrecoverable from
amounts received in respect of the Business Loans.

                  Section 5.11 Compensating Interest.

                  Each Class of Notes shall be entitled to a full month's
interest on the principal portion of each Business Loan at the then applicable
Class A, Class M-1, Class M-2 or Class B Remittance Rate for such Class, as the
case may be. Not later than the close of business on each Determination Date,
with respect to each Business Loan for which a Principal Prepayment or
Curtailment was received during the related Due Period, the Servicer shall remit
to the Indenture Trustee for deposit in the Note Distribution Account from
amounts otherwise payable to it as servicing compensation, an amount (such
amount required to be delivered to the Indenture Trustee is referred to herein
as "Compensating Interest") (as indicated in the Servicer's Certificate prepared
pursuant to Section 5.09) equal to the difference between (a) 30 days' interest
at the Adjusted Business Loan Remittance Rate on the Principal Balance of each
related Business Loan as of the beginning of the Due Period applicable to the
Remittance Date on which such amount will be distributed, and (b) the amount of
interest actually received on each such Business Loan for such Due Period net of
the Servicing Fee, and the fees and expenses of the Owner Trsutee and the
Indenture Trustee allocable to such interest.

                  Section 5.12   Reports of Foreclosure and Abandonment of
                                 Mortgaged Property

                  Each year the Servicer shall make the reports of foreclosures
and abandonment of any Mortgaged Property required by Section 6050J of the Code.
Promptly after filing each such report with the Internal Revenue Service, the
Servicer shall provide the Indenture Trustee with an Officer's Certificate
certifying that such report has been filed.

                                      -44-
<PAGE>   51
                                   ARTICLE VI

                           GENERAL SERVICING PROCEDURE

                  Section 6.01      [Intentionally Omitted]

                  Section 6.02      Satisfaction of Mortgages and Collateral
                                    and Release of Business Files

                  The Servicer shall maintain the Fidelity Bond as provided for
in Section 4.09 insuring the Servicer against any loss it may sustain with
respect to any Business Loan not satisfied in accordance with the procedures set
forth herein.

                  Upon the payment in full of any Business Loan, or the receipt
by the Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, the Servicer will immediately notify the
Indenture Trustee by a certification in the form of Exhibit I attached hereto
(which certification shall include a statement to the effect that all amounts
received or to be received in connection with such payment which are required to
be deposited in the Principal and Interest Account pursuant to Section 4.03 have
been or will be so deposited) of a Servicing Officer and shall request delivery
to it of the Indenture Trustee's Document File. Upon receipt of such
certification and request, the Indenture Trustee shall release, within 3
Business Days, the related Indenture Trustee's Document File to the Servicer.
Expenses incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be payable only from and to the extent of servicing
compensation and shall not be chargeable to the Principal and Interest Account
or the Note Distribution Account.

                  From time to time and as appropriate for the servicing or
foreclosure of any Business Loan, the Indenture Trustee shall, upon request of
the Servicer and delivery to the Indenture Trustee of a certification in the
form of Exhibit I attached hereto signed by a Servicing Officer, release the
related Indenture Trustee's Document File to the Servicer within 3 Business
Days, and the Indenture Trustee shall execute such documents as shall be
necessary to the prosecution of any such proceedings. Such servicing receipt
shall obligate the Servicer to return the Indenture Trustee's Document File to
the Indenture Trustee when the need therefor by the Servicer no longer exists,
unless the Business Loan has been liquidated and the Liquidation Proceeds
relating to the Business Loan have been deposited in the Principal and Interest
Account and remitted to the Indenture Trustee for deposit in the Note
Distribution Account or the Business File or such document has been delivered to
an attorney, or to a public Indenture Trustee or other public official as
required by law, for purposes of initiating or pursuing legal action or other
proceedings for the foreclosure of the Mortgaged Property or other Collateral
either judicially or non-judicially, and the Servicer has delivered to the
Indenture Trustee a certificate of a Servicing Officer certifying as to the name
and address of the Person to which such Business File or such document was
delivered and the purpose or purposes of such delivery. Upon receipt of a
certificate of a Servicing Officer stating that such Business Loan was
liquidated, the servicing receipt shall be released by the Indenture Trustee to
the Servicer.

                                      -45-
<PAGE>   52
                  The Indenture Trustee shall execute and deliver to the
Servicer any court pleadings, requests for Indenture Trustee's sale or other
documents necessary to the foreclosure or Indenture Trustee's sale in respect of
a Mortgaged Property or other Collateral or to any legal action brought to
obtain judgment against any Obligor on the Business Note or Mortgage or other
agreement securing Collateral or to obtain a deficiency judgment, or to enforce
any other remedies or rights provided by the Business Note or Mortgage or other
agreement securing Collateral or otherwise available at law or in equity.
Together with such documents or pleadings, the Servicer shall deliver to the
Indenture Trustee a certificate of a Servicing Officer requesting that such
pleadings or documents be executed by the Indenture Trustee and certifying as to
the reason such documents or pleadings are required and that the execution and
delivery thereof by the Indenture Trustee will not invalidate or otherwise
affect the lien of the Mortgage or other agreement securing Collateral, except
for the termination of such a lien upon completion of the foreclosure or
Indenture Trustee's sale. The Indenture Trustee shall, upon receipt of a written
request from a Servicing Officer, execute any document provided to the Indenture
Trustee by the Servicer or take any other action requested in such request, that
is, in the opinion of the Servicer as evidenced by such request, required by any
state or other jurisdiction to discharge the lien of a Mortgage or other
agreement securing Collateral upon the satisfaction thereof and the Indenture
Trustee will sign and post, but will not guarantee receipt of, any such
documents to the Servicer, or such other party as the Servicer may direct,
within five Business Days of the Indenture Trustee's receipt of such certificate
or documents. Such certificate or documents shall establish to the Indenture
Trustee's satisfaction that the related Business Loan has been paid in full by
or on behalf of the Obligor and that such payment has been deposited in the
Principal and Interest Account.

                  Section 6.03      Servicing Compensation.

                  As compensation for its services hereunder, the Servicer shall
be entitled to withdraw from the Principal and Interest Account or to retain
from interest payments on the Business Loans the Servicer's Servicing Fee;
provided, however, that the Servicer only may withdraw from the Principal and
Interest Account the Servicer's Servicing Fee related to the Business Loan for
which the Servicing Fee was received. Additional servicing compensation in the
form of assumption and other administrative fees, prepayment penalties, interest
paid on funds on deposit in the Principal and Interest Account, interest paid
and earnings realized on Permitted Instruments and amounts remitted pursuant to
Section 5.03(c)(iii) shall be retained by or remitted to the Servicer to the
extent not required to be remitted to the Indenture Trustee for deposit in the
Note Distribution Account. The Servicer shall be required to pay all expenses
incurred by it in connection with its servicing activities hereunder and shall
not be entitled to reimbursement therefor except as specifically provided for
herein.

                  Section 6.04      Annual Statement as to Compliance.

                  The Servicer will deliver to the Indenture Trustee, the Rating
Agencies and the Owner Trustee on or before March 31 of each year beginning
March 31, 2001, an Officer's

                                      -46-
<PAGE>   53
Certificate stating that (i) the Servicer has fully complied with the provisions
of Articles IV, V, VI and VII, (ii) a review of the activities of the Servicer
during the preceding calendar year and of performance under this Agreement has
been made under such officers' supervision, and (iii) to the best of such
officers' knowledge, based on such review, the Servicer has fulfilled all its
obligations under this Agreement throughout such year, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such officers and the nature and status thereof including the steps
being taken by the Servicer to remedy such default.

                  Section 6.05      Annual Independent Public
                                    Accountants' Servicing Report

                  On or before March 31 of each year beginning March 31, 2001,
the Servicer, at its expense, shall cause a firm of nationally recognized
independent public accountants reasonably acceptable to the Indenture Trustee to
furnish a letter or letters to the Indenture Trustee, the Owner Trustee and the
Rating Agencies to the effect that such firm has with respect to the Servicer's
overall servicing operations examined such operations in accordance with the
requirements of the Uniform Single Audit Program for Mortgage Bankers, and
stating such firm's conclusions relating thereto.

                  Section 6.06      Indenture Trustee's and Owner Trustee's
                                    Right to Examine Servicer Records and
                                    Audit Operations

                  The Indenture Trustee, the Owner Trustee and the Rating
Agencies shall have the right upon reasonable prior notice, during normal
business hours and as often as reasonably required, to examine and audit any and
all of the books, records or other information of the Servicer, whether held by
the Servicer or by another on behalf of the Servicer, which may be relevant to
the performance or observance by the Servicer of the terms, covenants or
conditions of this Agreement. No amounts payable in respect of the foregoing
shall be paid from the Trust Fund.

                  Section 6.07      Reports to the Indenture Trustee; Principal
                                    and Interest Account Statements.

                  Not later than 20 days after each Record Date, the Servicer
shall forward to the Indenture Trustee a statement, certified by a Servicing
Officer, setting forth the status of the Principal and Interest Account as of
the close of business on the preceding Record Date and showing, for the period
covered by such statement, the aggregate of deposits into the Principal and
Interest Account for each category of deposit specified in Section 4.03, the
aggregate of withdrawals from the Principal and Interest Account for each
category of withdrawal specified in Section 4.04, the aggregate amount of
permitted withdrawals not made in the related Due Period, and the amount of any
Monthly Advances or payments of Compensating Interest, in each case, for the
related Due Period.

                                      -47-
<PAGE>   54
                                   ARTICLE VII

                       REPORTS TO BE PROVIDED BY SERVICER

                  Section 7.01      Financial Statements.

                  The Servicer understands that, in connection with the transfer
of the Notes and the Certificates, Noteholders and Certificateholders may
request that the Servicer make available to prospective Noteholders and
Certificateholders the annual audited financial statements of the Servicer's
parent (First International Bancorp, Inc. and any successor thereto) for one or
more of the most recently completed five fiscal years for which such statements
are publicly available, which request shall not be unreasonably denied. Such
audited financial statements shall also be provided to the Rating Agencies by
the Servicer upon request.

                  The Servicer also agrees to make available on a reasonable
basis to any prospective Noteholder a knowledgeable financial or accounting
officer for the purpose of answering reasonable questions respecting recent
developments affecting the Servicer or the financial statements of the Servicer
and its parent (First International Bancorp, Inc. and any successor thereto) and
to permit any prospective Noteholder to inspect the Servicer's servicing
facilities during normal business hours for the purpose of satisfying such
prospective Noteholder that the Servicer has the ability to service the Business
Loans in accordance with this Agreement.

                                      -48-
<PAGE>   55
                                  ARTICLE VIII

                                  THE SERVICER

                  Section 8.01      Indemnification; Third Party Claims.

                  (a) The Servicer agrees to indemnify and hold the Indenture
Trustee, the Owner Trustee, and each Noteholder and Certificateholder harmless
against any and all claims, losses, penalties, fines, forfeitures, legal fees
and related costs, judgments, and any other costs, fees and expenses that the
Indenture Trustee, the Owner Trustee, and any Noteholder or Certificateholder
may sustain in any way related to the failure of the Servicer to perform its
duties and service the Business Loans in compliance with the terms of this
Agreement. The Servicer shall immediately notify the Indenture Trustee and the
Owner Trustee if a claim is made by any party with respect to this Agreement,
and the Servicer shall assume (with the consent of the Indenture Trustee) the
defense of any such claim and pay all expenses in connection therewith,
including reasonable counsel fees, and promptly pay, discharge and satisfy any
judgment or decree which may be entered against the Servicer, the Indenture
Trustee, the Owner Trustee, and/or a Noteholder or Certificateholder in respect
of such claim. The Indenture Trustee may reimburse the Servicer from the Expense
Account pursuant to Section 5.03(c)(i) for all amounts advanced by it pursuant
to the preceding sentence except when the claim relates directly to the failure
of the Servicer to service and administer the Business Loans in compliance with
the terms of this Agreement.

                  (b) The Seller agrees to indemnify and hold the Indenture
Trustee, the Owner Trustee and each Noteholder and Certificateholder harmless
against any and all claims, losses, penalties, fines, forfeitures, legal fees
and related costs, judgments, and any other costs, fees and expenses that the
Indenture Trustee, the Owner Trustee, and any Noteholder or Certificateholder
may sustain in any way related to the failure of the Seller to perform its
duties in compliance with the terms of this Agreement and in the best interests
of the Noteholders and Certificateholders. The Seller shall immediately notify
the Indenture Trustee and the Owner Trustee, if a claim is made by a third party
with respect to this Agreement, and the Seller shall assume (with the consent of
the Indenture Trustee) the defense of any such claim and pay all expenses in
connection therewith, including reasonable counsel fees, and promptly pay,
discharge and satisfy any judgment or decree which may be entered against the
Servicer, the Seller, the Indenture Trustee, the Owner Trustee and/or a
Noteholder or Certificateholder in respect of such claim. The Indenture Trustee
may reimburse the Seller from the Expense Account pursuant to Section 5.03(c)(i)
for all amounts advanced by it pursuant to the preceding sentence except when
the claim relates directly to the Seller indemnification pursuant to Section
2.05 and Section 3.03 or to the failure of the Servicer, if it is an affiliate
of the Seller, to perform its obligations to service and administer the Business
Loans in compliance with the terms of this Agreement, or the failure of the
Seller to perform its duties in compliance with the terms of this Agreement and
in the best interests of the Noteholders and Certificateholders.

                                      -49-
<PAGE>   56
         Section 8.02      Merger or Consolidation of the Servicer.

                  The Servicer will keep in full effect its existence, rights
and franchises as a corporation, bank or association and if required by
applicable law will obtain and preserve its qualification to do business as a
foreign entity, in each jurisdiction necessary to protect the validity and
enforceability of this Agreement or any of the Business Loans and to perform its
duties under this Agreement.

                  Any Person into which the Servicer may be merged or
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Servicer shall be a party, or any Person succeeding
to the business of the Servicer, shall be an established mortgage loan servicing
institution that has a net worth of at least $15,000,000, and shall be the
successor of the Servicer, hereunder, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding. The Servicer shall send notice of any
such merger or consolidation to the Indenture Trustee and the Rating Agency.

                  Subject to the satisfaction of the Rating Agency Condition,
the Servicer is permitted to assign its rights and duties hereunder to, and such
rights and duties can be assumed by, an affiliate of the Servicer having a net
worth of at least $15,000,000 (the "Assignee") (in which case all of the
provisions of this Agreement shall, to the same extent as they apply to the
Servicer hereunder, apply to the Assignee rather than the Servicer), without the
execution or filing of any paper or any further act on the part of any parties
hereto, anything herein to the contrary notwithstanding. The Servicer shall send
notice of any such assignment to the Indenture Trustee, the Owner Trustee, and
the Rating Agencies.

                  Section 8.03      Limitation on Liability of the
                                    Servicer and Others.

                  The Servicer and any director, officer, employee or agent of
the Servicer may rely on any document of any kind which it in good faith
reasonably believes to be genuine and to have been adopted or signed by the
proper authorities respecting any matters arising hereunder. Subject to the
terms of Section 8.01 herein, the Servicer shall have no obligation to appear
with respect to, prosecute or defend any legal action which is not incidental to
the Servicer's duty to service the Business Loans in accordance with this
Agreement.

                  Section 8.04      Servicer Not to Resign.

                  The Servicer shall not assign this Agreement nor resign from
the obligations and duties hereby imposed on it except (i) by mutual consent of
the Servicer, the Indenture Trustee, the Owner Trustee and the Majority
Noteholders, or (ii) in connection with a merger, conversion or consolidation
permitted pursuant to Section 8.02 and upon satisfaction of the Rating Agency
Condition (in which case the Person resulting from the merger, conversion or
consolidation shall

                                      -50-
<PAGE>   57
be the successor of the Servicer), or (iii) in connection with an assignment
permitted pursuant to Section 8.02 and upon satisfaction of the Rating Agency
Condition (in which case the Assignee shall be the successor of the Servicer) or
(iv) upon the determination that the Servicer's duties hereunder are no longer
permissible under applicable law or administrative determination and such
incapacity cannot be cured by the Servicer. Any such determination permitting
the resignation of the Servicer shall be evidenced by a written Opinion of
Counsel (who may be counsel for the Servicer) to such effect delivered to the
Indenture Trustee and the Owner Trustee, which Opinion of Counsel shall be in
form and substance acceptable to the Indenture Trustee and the Owner Trustee. No
such resignation shall become effective until a successor has assumed the
Servicer's responsibilities and obligations hereunder in accordance with Section
9.02.

                                      -51-
<PAGE>   58
                                   ARTICLE IX

                              SERVICER TERMINATION

                  Section 9.01      Servicer Termination Events.

                  (a) In case one or more of the following events (each a
"Servicer Termination Event") by the Servicer shall occur and be continuing,
that is to say:

                           (i) (A) the failure by the Servicer to make any
                  required Servicing Advance, to the extent such failure
                  materially and adversely affects the interests of the
                  Noteholders; (B) the failure by the Servicer to make any
                  required Monthly Advance to the extent such failure materially
                  and adversely affects the interests of the Noteholders; (C)
                  the failure by the Servicer to remit any Compensating Interest
                  to the extent such failure materially and adversely affects
                  the interests of the Noteholders; or (D) any failure by the
                  Servicer to remit to Noteholders, or to the Indenture Trustee
                  for the benefit of the Noteholders, or to the Owner Trustee
                  for the benefit of the Certificateholders, any payment
                  required to be made under the terms of this Agreement which
                  continues unremedied after the date upon which written notice
                  of such failure, requiring the same to be remedied, shall have
                  been given to the Servicer by the Indenture Trustee or to the
                  Servicer and the Indenture Trustee by any Noteholder or
                  Certificateholder; or

                           (ii) failure by the Servicer or the Seller duly to
                  observe or perform, in any material respect, any other
                  covenants, obligations or agreements of the Servicer or the
                  Seller as set forth in this Agreement, which failure continues
                  unremedied for a period of 60 days after the date on which
                  written notice of such failure, requiring the same to be
                  remedied, shall have been given to the Servicer or the Seller,
                  as the case may be, by the Indenture Trustee or to the
                  Servicer, or the Seller, as the case may be, and the Indenture
                  Trustee by any Noteholder or Certificateholder; or

                           (iii) a decree or order of a court or agency or
                  supervisory authority having jurisdiction for the appointment
                  of a conservator or receiver or liquidator in any insolvency,
                  readjustment of debt, marshaling of assets and liabilities or
                  similar proceedings, or for the winding-up or liquidation of
                  its affairs, shall have been entered against the Servicer and
                  such decree or order shall have remained in force,
                  undischarged or unstayed for a period of 60 days; or

                           (iv) the Servicer shall consent to the appointment of
                  a conservator or receiver or liquidator in any insolvency,
                  readjustment of debt, marshaling of assets and liabilities or
                  similar proceedings of or relating to the Servicer or of or
                  relating to all or substantially all of the Servicer's
                  property; or

                                      -52-
<PAGE>   59
                           (v) the Servicer shall admit in writing its inability
                  to pay its debts as they become due, file a petition to take
                  advantage of any applicable insolvency or reorganization
                  statute, make an assignment for the benefit of its creditors,
                  or voluntarily suspend payment of its obligations;

                  (b) then, and in each and every such case, so long as a
Servicer Termination Event shall not have been remedied, and in the case of
clause (i) above (except for clause (i)(B)), if such Servicer Termination Event
shall not have been remedied within 30 days after the Servicer has received
notice of such Servicer Termination Event, (x) with respect solely to clause
(i)(B) above, if such Monthly Advance is not made earlier than 4:00 p.m. New
York time on the Determination Date, the Indenture Trustee shall give immediate
telephonic notice of such failure to a Servicing Officer of the Servicer and,
unless such failure is cured, either by receipt of payment or receipt of
evidence (e.g., a wire reference number communicated by the sending bank) that
such funds have been sent, by 12:00 Noon New York time on the following Business
Day, the Indenture Trustee shall immediately assume, pursuant to Section 9.02
hereof, the duties of a successor Servicer; and (y) in the case of clauses
(i)(A), (i)(C), (i)(D), (iii), (iv) and (v), the Majority Noteholders, by notice
in writing to the Servicer (except with respect to (iii), (iv) and (v) for which
no notice is required) may, in addition to whatever rights such Noteholders may
have at law or equity including damages, injunctive relief and specific
performance, in each case immediately terminate all the rights and obligations
of the Servicer under this Agreement and in and to the Business Loans and the
proceeds thereof, as Servicer. Upon such receipt by the Servicer of a second
written notice from the Majority Noteholders stating that they or it intend to
terminate the Servicer as a result of such Servicer Termination Event, all
authority and power of the Servicer under this Agreement, whether with respect
to the Business Loans or otherwise, shall, subject to Section 9.02, pass to and
be vested in the Indenture Trustee and the Indenture Trustee is hereby
authorized and empowered to execute and deliver, on behalf of the Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments and
do or cause to be done all other acts or things necessary or appropriate to
effect the purposes of such notice of termination, including, but not limited
to, the transfer and endorsement or assignment of the Business Loans and related
documents. The Servicer agrees to cooperate with the Indenture Trustee in
effecting the termination of the Servicer's responsibilities and rights
hereunder, including, without limitation, the transfer to the Indenture Trustee
for administration by it of all amounts which shall at the time be credited by
the Servicer to each Principal and Interest Account or thereafter received with
respect to the Business Loans.

                  Section 9.02      Indenture Trustee to Act; Appointment of
                                    Successor

                  On and after the time of the Servicer's immediate termination,
or the Servicer's receipt of notice if required by Section 9.01, or at any time
if the Indenture Trustee receives the resignation of the Servicer evidenced by
an Opinion of Counsel pursuant to Section 8.04 or the Servicer is removed as
Servicer pursuant to this Article IX, the Indenture Trustee shall be the
successor in all respects to the Servicer in its capacity as Servicer under this
Agreement and the transactions set forth or provided for herein and shall be
subject to all the responsibilities, duties

                                      -53-
<PAGE>   60
and liabilities relating thereto placed on the Servicer by the terms and
provisions hereof; provided, however, that the Indenture Trustee shall not be
liable for any actions of any Servicer prior to it, and that the Indenture
Trustee shall not be obligated to make advances or payments pursuant to Sections
4.03, 4.10, 5.03, 5.10 or 5.11 but only to the extent the Indenture Trustee
determines reasonably and in good faith that such advances would not be
recoverable, such determination to be evidenced with respect to each such
advance by a certification of a Responsible Officer of the Indenture Trustee. As
compensation therefor, the Indenture Trustee shall be entitled to all funds
relating to the Business Loans which the Servicer would have been entitled to
receive from the Principal and Interest Account pursuant to Section 4.04 if the
Servicer had continued to act as Servicer hereunder, together with other
servicing compensation in the form of assumption fees, late payment charges or
otherwise as provided in Sections 5.01 and 5.03.

                  Notwithstanding the above, the Indenture Trustee shall, if it
is unable to so act, appoint, or petition a court of competent jurisdiction to
appoint, any established servicing institution acceptable to the Rating Agencies
that has a net worth of not less than $15,000,000, as the successor to the
Servicer hereunder in the assumption of all or any part of the responsibilities,
duties or liabilities of the Servicer hereunder. Any collections received by the
Servicer after removal or resignation shall be endorsed by it to the Indenture
Trustee and remitted directly to the Indenture Trustee or, at the direction of
the Indenture Trustee, to the successor servicer. The compensation of any
successor servicer (including, without limitation, the Indenture Trustee) so
appointed shall be the aggregate Servicing Fees and other servicing compensation
in the form of assumption fees, late payment charges or otherwise. In the event
the Indenture Trustee is required to solicit bids as provided herein, the
Indenture Trustee shall solicit, by public announcement, bids from banks and
mortgage servicing institutions meeting the qualifications set forth above. Such
public announcement shall specify that the successor servicer shall be entitled
to the full amount of the aggregate Servicing Fees as servicing compensation,
together with the other servicing compensation in the form of assumption fees,
late payment charges or otherwise. Within thirty days after any such public
announcement, the Indenture Trustee shall negotiate and effect the sale,
transfer and assignment of the servicing rights and responsibilities hereunder
to the qualified party submitting the highest qualifying bid. The Indenture
Trustee shall deduct from any sum received by the Indenture Trustee from the
successor to the Servicer in respect of such sale, transfer and assignment all
costs and expenses of any public announcement and of any sale, transfer and
assignment of the servicing rights and responsibilities hereunder and the amount
of any unreimbursed Servicing Advances and Monthly Advances. After such
deductions, the remainder of such sum shall be paid by the Indenture Trustee to
the Servicer at the time of such sale, transfer and assignment to the Servicer's
successor. The Indenture Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. The Servicer agrees to cooperate with the Indenture Trustee and any
successor servicer in effecting the termination of the Servicer's servicing
responsibilities and rights hereunder and shall promptly provide the Indenture
Trustee or such successor servicer, as applicable, all documents and records
reasonably requested by it to enable it to assume the Servicer's functions
hereunder and shall promptly also transfer to the Indenture Trustee or such
successor servicer, as applicable, all amounts which then have been or should
have been

                                      -54-
<PAGE>   61
deposited in the Principal and Interest Account or Spread Account by the
Servicer or which are thereafter received with respect to the Business Loans.
Neither the Indenture Trustee nor any other successor servicer shall be held
liable by reason of any failure to make, or any delay in making, any
distribution hereunder or any portion thereof caused by (i) the failure of the
Servicer to deliver, or any delay in delivering, cash, documents or records to
it, or (ii) restrictions imposed by any regulatory authority having jurisdiction
over the Servicer hereunder. No appointment of a successor to the Servicer
hereunder shall be effective until written notice of such proposed appointment
shall have been provided by the Indenture Trustee to each Noteholder and
Certificateholder and the Indenture Trustee shall have consented thereto. The
Indenture Trustee shall not resign as servicer until a successor servicer has
been appointed.

                  Pending appointment of a successor to the Servicer hereunder,
the Indenture Trustee shall act in such capacity as hereinabove provided. In
connection with such appointment and assumption, the Indenture Trustee may make
such arrangements for the compensation of such successor out of payments on
Business Loans as it and such successor shall agree; provided, however, that no
such compensation shall be in excess of that permitted the Servicer pursuant to
Section 6.03 or otherwise as provided in this Agreement. The Servicer, the
Indenture Trustee and such successor shall take such action, consistent with
this Agreement, as shall be necessary to effectuate any such succession.

                  Section 9.03      Waiver of Defaults.

                  The Majority Noteholders may, and subject to satisfaction of
the Rating Agency Condition, waive any events permitting removal of the Servicer
pursuant to this Article IX; provided, however, that the Majority Noteholders
may not waive a default in making a required distribution on a Note without the
consent of the holder of such Note. Upon any waiver of a past default, such
default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been remedied for every purpose of this Agreement. No such
waiver shall extend to any subsequent or other default or impair any right
consequent thereto except to the extent expressly so waived.

                  Section 9.04.     Control by Majority Noteholders.

                  The Majority Noteholders may direct the time, method and place
of conducting any proceeding relating to the Trust or the Notes or for any
remedy available to the Indenture Trustee or the Owner Trustee with respect to
the Trust or exercising any trust or power conferred on the Indenture Trustee or
the Owner Trustee with respect to the Trust provided that:

                           (i) such direction shall not be in conflict with any
                  rule of law or with this Agreement;

                           (ii) the Indenture Trustee shall have been provided
                  with indemnity satisfactory to it; and

                                      -55-
<PAGE>   62
                           (iii) the Indenture Trustee or the Owner Trustee may
                  take any other action deemed proper by the Indenture Trustee
                  or the Owner Trustee which is not inconsistent with such
                  direction; provided, however, that the Indenture Trustee or
                  the Owner Trustee, as the case may be, need not take any
                  action which it determines might involve it in liability or
                  may be unjustly prejudicial to the Holders not so directing.

                                      -56-
<PAGE>   63
                                    ARTICLE X

                                   TERMINATION

                  Section 10.01     Termination.

                  This Agreement shall terminate upon notice to the Indenture
Trustee of the earlier of the following events: (a) the final payment or other
liquidation of the last Business Loan or the disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure of any Business Loan
and the remittance of all funds due thereunder, or (b) mutual consent of the
Servicer and all Noteholders and Certificateholders in writing; provided,
however, that in no event shall this Agreement terminate later than twenty-one
years after the death of the last surviving lineal descendant of Joseph P.
Kennedy, late Ambassador of the United States to the Court of St. James, alive
as of the date hereof.

                  The Servicer may, at its option, terminate this Agreement on
any date on which the Pool Principal Balance is less than 10% of the sum of (i)
the Original Pool Principal Balance and (ii) the Original Pre-Funded Amount by
purchasing, on the next succeeding Remittance Date, all of the Business Loans
and Foreclosed Properties at a price equal to the sum of (i) 100% of the then
outstanding Aggregate Class A, Aggregate Class M-1, Aggregate Class M-2 and
Aggregate Class B Note Principal Balances, and (ii) 30 days' interest thereon at
the then applicable weighted average Class A, Class M-1, Class M-2 and Class B
Remittance Rates, as the case may be (the "Termination Price"). Notwithstanding
the prior sentence, if at the time the Servicer determines to exercise such
option the unsecured long-term debt obligations of the Servicer are not rated at
least Baa3 by Moody's, if the Rating Agencies are still rating the Notes, the
Servicer shall give the Rating Agencies prior written notice of the Servicer's
determination to exercise such option and shall not exercise such option,
without the consent of the Rating Agencies, prior to furnishing the Rating
Agencies with an Opinion of Counsel, in form and substance reasonably
satisfactory to the Rating Agencies, that the exercise of such option would not
be deemed a fraudulent conveyance by the Servicer.

                  Notice of any termination, specifying the Remittance Date upon
which the Trust Fund will terminate and that the Noteholders shall surrender
their Notes to the Indenture Trustee for payment of the final distribution and
cancellation shall be given promptly by the Servicer by letter to Noteholders
mailed during the month of such final distribution before the Determination Date
in such month, specifying (i) the Remittance Date upon which final payment of
the Notes will be made upon presentation and surrender of Notes at the office of
the Indenture Trustee therein designated, (ii) the amount of any such final
payment and (iii) that the Record Date otherwise applicable to such Remittance
Date is not applicable, payments being made only upon presentation and surrender
of the Notes at the office of the Indenture Trustee therein specified. The
Servicer shall give such notice to the Indenture Trustee therein specified. The
Servicer shall give such notice to the Indenture Trustee and the Rating Agencies
at the time such notice is given to Noteholders. Any obligation of the Servicer
to pay amounts due to the Indenture Trustee shall survive the termination of
this Agreement.

                                      -57-
<PAGE>   64
                  Section 10.02     Accounting Upon Termination of
                                    Servicer

                  Upon termination of the Servicer under Article IX hereof, the
Servicer shall:

                  (a) deliver to its successor or, if none shall yet have been
appointed, to the Indenture Trustee the funds in any Principal and Interest
Account;

                  (b) deliver to its successor or, if none shall yet have been
appointed, to the Indenture Trustee all Business Files and related documents and
statements held by it hereunder and a Business Loan portfolio computer diskette;

                  (c) deliver to its successor or, if none shall yet have been
appointed, to the Indenture Trustee and, upon request, to the Noteholders a full
accounting of all funds, including a statement showing the Monthly Payments
collected by it and a statement of monies held in trust by it for the payments
or charges with respect to the Business Loans; and

                  (d) execute and deliver such instruments and perform all acts
reasonably requested in order to effect the orderly and efficient transfer of
servicing of the Business Loans to its successor and to more fully and
definitively vest in such successor all rights, powers, duties,
responsibilities, obligations and liabilities of the Servicer under this
Agreement.

                                      -58-
<PAGE>   65
                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  Section 11.01     Acts of Noteholders.

                  Except as otherwise specifically provided herein, whenever
Noteholder action, consent or approval is required under this Agreement, such
action, consent or approval shall be deemed to have been taken or given on
behalf of, and shall be binding upon, all Noteholders if the Majority
Noteholders agree to take such action or give such consent or approval.

                  Section 11.02     Amendment.

                  (a) This Agreement may be amended from time to time by the
Servicer and the Owner Trustee with the consent of the Indenture Trustee (which
consent may not be unreasonably withheld), without notice to or consent of the
Noteholders or Certificateholders, to cure any ambiguity, to correct or
supplement any provisions herein, to comply with any changes in the Code, or to
make any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this
Agreement; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel delivered to the Indenture Trustee, adversely affect the
interests of any Noteholder or Certificateholder or any other party and further
provided that no such amendment shall reduce in any manner the amount of, or
delay the timing of, any amounts received on Business Loans which are required
to be distributed on any Note Certificate without the consent of the Holder of
such Note or Certificate, or change the rights or obligations of any other party
hereto without the consent of such party.

                  (b) This Agreement may be amended from time to time by the
Servicer and the Owner Trustee with the consent of the Indenture Trustee and the
consent of the Majority Noteholders, for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Agreement
or of modifying in any manner the rights of the Holders such amendment shall
reduce in any manner the amount of, or delay the timing of, any amounts which
are required to be distributed on any Note without the consent of the Holder of
such Note or reduce the percentage of Holders which are required to consent to
any such amendment without the consent of the Holders of 100% of the Notes and
Certificates affected thereby and, provided further, that no amendment affecting
only one or more Classes of Notes shall require the approval of holders of Notes
of the other Classes.

                  (c) It shall not be necessary for the consent of Holders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof.

                                      -59-
<PAGE>   66
                  Section 11.03     Recordation of Agreement.

                  To the extent permitted by applicable law, this Agreement is
subject to recordation in all appropriate public offices for real property
records in all of the counties or other comparable jurisdictions in which any or
all of the properties subject to the Mortgages are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Servicer at the Noteholders' expense on direction of the
Majority Noteholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Noteholders or is necessary for the administration or servicing of the
Business Loans.

                  Section 11.04     Duration of Agreement.

                  This Agreement shall continue in existence and effect until
terminated as herein provided.

                  SECTION 11.05     GOVERNING LAW.

                  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

                  Section 11.06     Notices.

                  All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by overnight mail, certified mail or registered mail, postage prepaid,
to (i) in the case of the Servicer and the Seller, First International Bank, 280
Trumbull Street, Hartford, Connecticut 06103, Attention: Theodore J. Horan, or
such other addresses as may hereafter be furnished to the Noteholders in writing
by the Seller and the Servicer, (ii) in the case of the Indenture Trustee, HSBC
Bank USA, 140 Broadway, New York, New York 10005, 12th Floor, Attention:
Corporate Trust Department, (iii) in the case of the Owner Trustee, Wilmington
Trust Company, Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890, (iv) in the case of the Noteholders, as set forth in the Note
Register, (v) in the case of Moody's, to Moody's Investors Service, ABS
Monitoring Department, 99 Church Street, 4th Floor, New York, New York 10007 and
(vi) in the case of Duff & Phelps, Duff & Phelps Credit Rating Co., 55 East
Monroe Street, Chicago, Illinois 60603, Attention: ABS Monitoring Group. Any
such notices shall be deemed to be effective with respect to any party hereto
upon the receipt of such notice by such party, except that notices to the
Noteholders shall be effective upon mailing or personal delivery.

                                      -60-
<PAGE>   67
                  Section 11.07     Severability of Provisions.

                  If any one or more of the covenants, agreements, provisions or
terms of this Agreement shall be held invalid for any reason whatsoever, then
such covenants, agreements, provisions or terms shall be deemed severable from
the remaining covenants, agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other covenants,
agreements, provisions or terms of this Agreement.

                  Section 11.08     No Partnership.

                  Nothing herein contained shall be deemed or construed to
create a co-partnership or joint venture between the parties hereto and the
services of the Servicer shall be rendered as an independent contractor and not
as agent for the Noteholders.

                  Section 11.09     Counterparts.

                  This Agreement may be executed in one or more counterparts and
by the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same agreement.

                  Section 11.10     Successors and Assigns.

                  This Agreement shall inure to the benefit of and be binding
upon the Seller and the Servicer, the Indenture Trustee and the Noteholders and
their respective successors and assigns.

                  Section 11.11     Headings.

                  The headings of the various sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be
part of this Agreement.

                  Section 11.12     Notification to Rating Agencies.

                  The Indenture Trustee shall give prompt notice to the Rating
Agencies of the occurrence of any of the following events of which it has
received notice: (1) any modification or amendment to this Agreement, (2) any
change of the Indenture Trustee, the Servicer or Paying Agent, (3) any Event of
Default, and (4) the final payment of all the Notes. The Servicer shall promptly
deliver to the Rating Agencies a copy of each of the Servicer's Certificates.
Further, the Servicer shall give prompt notice to the Rating Agencies if the
Servicer or any of its affiliates acquire any Notes.

                                      -61-
<PAGE>   68
                  Section 11.13.  Limitation of Liability.

                  It is expressly understood and agreed by the parties hereto
that (a) this Agreement is executed and delivered by Wilmington Trust Company,
not individually or personally but solely as Owner Trustee on behalf of the
Issuer under the Trust Agreement, in the exercise of the powers and authority
conferred and vested in it, (b) each of the representations, undertaking and
agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust
Company but is made and intended for the purpose of binding only the Issuer, (c)
nothing herein contained shall be construed as creating any liability on
Wilmington Trust Company individually or personally, to perform any covenant
either expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties to the Agreement and by any person claiming by,
through or under them and (d) under no circumstances shall Wilmington Trust
Company be personally liable for the payment of any indebtedness or expenses of
the Issuer or be liable for the payment of any indebtedness or expenses of the
Issuer or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaking by the Issuer under this Agreement or
any related documents.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                      -62-
<PAGE>   69
                  IN WITNESS WHEREOF, the Seller, the Servicer and the Trust
have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written.

                                     FIRST INTERNATIONAL BANK
                                         as Seller and Servicer

                                     By:  /s/Leslie Galbraith
                                          -------------------------------------
                                          Name:  Leslie Galbraith
                                          Title:    President

                                     FIB BUSINESS LOAN TRUST 1999-A,

                                     By:   Wilmington Trust Company, not in its
                                     individual capacity but solely as Owner
                                     Trustee on behalf of the Trust

                                     By:   /s/Anita E. Dallago
                                          -------------------------------------
                                           Name:  Anita E. Dallago
                                           Title: Administrative Account Manager

                                       65
<PAGE>   70
                                     Accepted and Agreed to:

                                     HSBC BANK USA, not in its individual
                                     capacity, but solely as Indenture Trustee

                                      By:  /s/Susan Barstock
                                          -------------------------------------
                                           Name:  Susan Barstock
                                           Title:    Assistant Vice President

                                       66
<PAGE>   71
STATE OF DELAWARE    )
                   : ss.:
COUNTY OF NEW CASTLE )

                  On this 29th day of September in the year of 1999 before me,
the undersigned, a Notary Public in and for said State, personally appeared
Anita E. Dallago personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed
to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                       /s/Janel R. Havrilla
                                       -------------------------------------
                                            Notary Public

                                     My Commission expires 2/2/01
<PAGE>   72
STATE OF CONNECTICUT )
                    : ss.:
COUNTY OF HARTFORD   )

                  On this 24th day of September in the year of 1999 before me,
the undersigned, a Notary Public in and for said State, personally appeared
Leslie Galbraith personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed
to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                      /s/Susan Levin
                                      -------------------------------------
                                      Notary Public

                                      My Commission expires 12/31/00<PAGE>   1
                                                                   Exhibit 10.16

                                                                  EXECUTION COPY

           REVOLVING COMMERCIAL LOAN WAREHOUSE AND SECURITY AGREEMENT

                  REVOLVING COMMERCIAL LOAN WAREHOUSE AND SECURITY AGREEMENT,
dated as of December 1, 1999 (as amended or otherwise modified from time to
time, this "Agreement") between PRUDENTIAL SECURITIES CREDIT CORPORATION, a
Delaware corporation, having an office at One New York Plaza, New York, New York
10292 (the "Lender"), and FIB HOLDINGS, INC., a Delaware corporation, having its
principal office at 280 Trumbull Street, Hartford, Connecticut 06103 (the
"Borrower").

                  WHEREAS, the Lender intends to lend and the Borrower intends
to borrow up to a maximum of $75,000,000 to fund the holding of Commercial Loans
(as defined herein).

                  NOW, THEREFORE, in consideration of the promises and for other
good and valuable consideration, the parties hereto hereby agree as follows:

                  Section 1. The Loan. (a) Subject to the terms of this
Agreement:

                  1. The Lender agrees to lend to the Borrower up to $75,000,000
less any amounts outstanding under any loans from Lender to the Borrower's
parent, First International Bank ("First International"), (such borrowing, the
"Loan"), to be made in one or more advances (each, an "Advance"). The Borrower
agrees that the Loan shall be used to finance fixed or adjustable rate
Commercial Loans underwritten pursuant to the underwriting guidelines of First
International, as such Commercial Loans are identified to the Lender in writing
and in electronic form from time to time. All Commercial Loans financed
hereunder shall be closed loans; i.e., this facility shall not be used for "wet"
or "table" fundings. The Lender may refuse to lend against any Commercial
Loan(s) which the Lender reasonably believes will not be eligible for inclusion
in a securitized pool either (x) due to the characteristics of such Commercial
Loan or (y) due to the expected aggregate characteristics of the Commercial
Loans (an "Ineligible Commercial Loan).

                  2. Each Advance shall be made on a date occurring during the
last two weeks of March, June, September or December (but in no event within one
week prior to the Maturity Date referred to below) (each such date, a "Funding
Date"); provided that:

                                       1
<PAGE>   2
                (i) (a) the conditions precedent to the making of each Advance
set forth in Sections 1(a)4, 1(a)5 and 1(a)6 hereof shall be satisfied and
(b)the Lender shall have received an officer's certificate, dated the date of
such Advance and signed by a duly authorized officer of the Borrower, certifying
that (x) the representations and warranties of the Borrower in Section 4 hereof
shall be true and correct on and as of such Funding Date as if made on and as of
such date, and (y) no Event of Default shall have occurred and be continuing or
would exist after the making of the Advance on such Funding Date;

                (ii) the Lender shall have received (A) in connection with each
Advance, a receipt from the Custodian (as defined below) to the effect that it
has received the original notes relating to the Commercial Loans that are being
pledged in connection with the Advance being made on such Funding Date; and (B)
prior to the initial Advance: (1) legal opinions from counsel to the Borrower,
First International and First International Bancorp, Inc. ("Bancorp."), in the
form of Exhibit B attached hereto; (2) the Secured Note (as defined herein)
executed by the Borrower; (3) the Custody Agreement (as defined herein) executed
by the Borrower and the Custodian; (4) a receipt from the Custodian to the
effect that it has received the assignment of Collateral and power of attorney
referred to in Sections 2(f) and (g) of the Custody Agreement (as defined
below); (5) the Guarantee of Bancorp relating to the Borrower's obligations
under Section 12 hereof and (6) with respect to the first Funding Date on which
Insured Commercial Loans will be pledged, an Insurer Consent (each as defined
below) and an endorsement to each Insurance Policy (as defined below) naming the
Lender as an additional loss payee. Accordingly, the Borrower shall not request
an Advance with respect to, and the Lender shall not fund, Insured Commercial
Loans until the Lender receives the Insurer Consent and such legal opinions and
other documentation as Lender may reasonably request.

                (iii) the Lender has satisfactorily completed its due diligence
investigation of the Commercial Loans being pledged on such Funding Date;

                (iv) if any Commercial Loan to be pledged to the Lender pursuant
to an Advance shall have an outstanding principal balance greater than or equal
to $1,000,000, the Borrower shall have delivered to the Lender, at least three
Business Days prior to the related Funding Date, a credit memorandum, in form
and substance satisfactory to the Lender, containing, among other things, an
environmental report for any real estate pledged as collateral for such
Commercial Loan.

                                       2
<PAGE>   3
                  (v) the Borrower shall have delivered to the Lender and the
Custodian the Commercial Loan Schedule with respect to the Commercial Loans that
are being pledged on such Funding Date; and

                  (vi) no other Advance shall have been made hereunder nor shall
any advance have been made by the Lender to First International under the
Revolving Commercial Loan Warehouse and Security Agreement, dated as of December
4, 1998, as amended, among the Lender, First International and Bancorp (the
"First International Warehouse Agreement"), in each case in the same calendar
week as such Funding Date.

                  3. The Loan shall accrue interest daily on its outstanding
principal amount, with interest calculated on the basis of actual days elapsed
and a 360-day year. The daily interest rate on the outstanding principal amount
of the Loan shall be LIBOR plus 1.20% and shall be reset on each Business Day.
Interest which accrues during each calendar month shall be payable on the first
Business Day of the following month, with any outstanding interest due and
payable in its entirety on the date of termination of this Agreement (including
the Maturity Date).

                  "LIBOR" means the London interbank offered rate for one-month
U.S. dollar deposits on the basis of the offered rates of the Reference Banks
for one-month U.S. Dollar Deposits, as such rates appear on Telerate Page 3750,
as of 11:00 a.m. (New York Time) reset daily, as determined by Lender in its
sole discretion.

                  Any amounts pre-paid or required to be repaid under this
Agreement prior to the Maturity Date may be re-borrowed, subject to the terms
and conditions of this Agreement, until the Maturity Date.

                  4. Not later than 4:00 p.m. New York time three Business Days
prior to the proposed Funding Date for an Advance, the Borrower shall deliver to
the Lender (i) a written notice in the form of Exhibit D hereto (the "Funding
Notice") and (ii) an electronic disk or tape, in a mutually satisfactory form to
be agreed upon by the Lender and the Borrower, detailing certain specified
characteristics of the Commercial Loans previously pledged and those Commercial
Loans proposed to be pledged in connection with such Advance (each such
schedule, a "Commercial Loan Schedule").

                  5. The Borrower shall reimburse the Lender for any of the
Lender's out-of-pocket costs and attorneys' fees and expenses incurred by the
Lender in connection with this Agreement, (plus related attorneys'
disbursements) up to the date hereof. In addition, the Borrower shall reimburse
the Lender for any of the Lender's out-of-pocket costs and expenses incurred in
connection

                                       3
<PAGE>   4
with its due diligence review, such costs not to exceed a total maximum of
$20,000 when aggregated with similar expenses of the Lender incurred under the
First International Warehouse Agreement up to and including the Maturity Date.

                  6. The Commercial Loans will be serviced by First
International. Therefore, the financial condition of First International is
relevant to the interests of Lender. Accordingly, both as a condition to each
Advance and during the term of this facility:

                  (i) First International's Tangible Net Worth (determined in
accordance with GAAP) shall not be less than $47,500,000.

                  (ii) First International's Tangible Net Worth shall not be
less than its Tangible Net Worth as shown on its financial statements as of
September 30, 1999 (as delivered previously to the Lender) plus fifty percent
(50%) of all accumulated positive net income from September 30, 1999 less
$4,000,000. "Tangible Net Worth" means the difference between (x) net worth
determined in accordance with GAAP less (y) the sum of (i) receivables from
stockholders or Affiliates of First International and (ii) intangible assets
determined in accordance with GAAP (which include assets such as copyrights,
patents, trademarks, goodwill, computer programs, capitalized advertising costs,
organization costs, licenses, leases, franchises, exploration permits, and
import and export permits, etc.).

                  (iii) First International's leverage ratio shall not exceed
8:1, such ratio being the ratio of (x) First International's total liabilities
plus an amount equal to all Advances hereunder, less subordinated debt maturing
in more than one year, to (y) First International's Tangible Net Worth
(determined as set forth above).

                  (iv) First International shall be "well capitalized" as
defined in 12 CFR Part 325.

                  (b) The amount of each Advance shall not exceed the excess of
(A) the lesser of (i) the Applicable Percentage of the aggregate outstanding
principal balance of the Commercial Loans proposed to be pledged to the Lender
in connection with such Advance as of the related Cut-Off Date, and (ii) the
product of (x) the Market Value of the Commercial Loans proposed to be pledged
in connection with such Advance and (y) the Applicable Percentage (such lesser
amount, the "Borrowing Base"), minus (B) in the event that a Collateral
Deficiency Situation exists as of the date of such Advance, the Restoration
Amount as of the date of such Advance.

                                       4
<PAGE>   5
                        For purposes of this Agreement:

                        Affiliate means, as to any Person, any other Person
controlling, controlled by or under common control with such Person. "Control"
means the power to direct the management and policies of a Person, directly or
indirectly, whether through ownership of voting securities, by contract or
otherwise. "Controlled" and "Controlling" have meanings correlative to the
foregoing.

                        Applicable Percentage shall mean (i) for Commercial
Loans that are not Insured Commercial Loans, 82% and (ii) for Commercial Loans
that are Insured Commercial Loans, the percentage agreed to among the Borrower,
First International and the Lender pursuant to a separate written agreement.

                        Business Day shall mean any day excluding Saturday,
Sunday and any day which is a legal holiday under the laws of the States of New
York or Connecticut or any day on which a bank located in the State of New York,
City of New York or the State of Connecticut or the New York Stock Exchange is
authorized or permitted to close for business.

                        Collateral Deficiency Situation shall be deemed to be
existing as of any day on which (i) the outstanding principal amount of the Loan
as of such day (including accrued interest but excluding the amount of any
Advance to be made on such day) exceeds the Borrowing Base of the Commercial
Loans then pledged to the Lender (disregarding the Commercial Loans, if any,
proposed to be pledged to the Lender on such day).

                        Commercial Loan has the meaning set forth in Section 2.

                        Commercial Loan Schedule means each schedule of
Commercial Loans listing the Commercial Loans which have been or are to be
pledged by the Borrower in connection with (x) each Advance or (y) a Collateral
Deficiency, such schedule identifying each Commercial Loan by address of and the
name of the underlying obligor and setting forth as to each Commercial Loan at
least the following information: (i)the address and name of the underlying
obligor, (ii) the original principal amount, (iii) the Cut-Off Date, (iv) the
principal outstanding as of the related Cut-Off Date, (v) the account number,
(vi) the amount of any change in the outstanding principal balance of each
Commercial Loan since the date of the last delivered Commercial Loan Schedule,
(vii)the paid-through date, (viii) a description of the related collateral, (ix)
if the primary collateral includes real estate, the related loan-to-value ratio
of such property and the lien status of such real property collateral, (x) the
interest rate,

                                       5
<PAGE>   6
(xi) whether such Commercial Loan bears a fixed or floating rate of interest,
(xii) the original term, (xiii) the remaining term, (xiv) the loan type, (xv) if
the Commercial Loan is an Insured Commercial Loan, the Insured Portion expressed
as a percentage and (xvi) any other information that Lender may reasonably
request.

                           Cut-Off Date means, as of any date, the close of
business on the date set forth in the related Commercial Loan Schedule. In no
event shall the Cut-Off Date precede by more than two weeks the date on which
the related Commercial Loan Schedule is delivered.

                           GAAP means generally accepted accounting principles
applied on a consistent basis.

                           Insurance Policy collectively, means the
Comprehensive Export Credit Insurance Policy #649-8471 issued on April 17, 1998
and renewed on April 17, 1999 and the Domestic Credit Insurance Policy #649-8512
issued on July 28, 1998 and renewed on July 28, 1999, each issued by the Insurer
and relating to each Insured Commercial Loan, as each may be subsequently
renewed, extended, amended, supplemented or modified from time to time.

                           Insured Commercial Loan means a Commercial Loan that
is entitled to the benefits of the Insurance Policy.

                           Insured Portion means that portion of each Insured
Commercial Loan that is covered by the Insurance Policy.

                           Insurer means the National Union Fire Insurance
Company of Pittsburgh, PA and its permitted successors and assigns.

                           Insurer Consent means a letter from the Insurer
consenting to the transfer by First International to the Borrower of any and all
Insured Commercial Loans to be pledged hereunder and the pledge of such Insured
Commercial Loans to the Lender pursuant hereto, and containing such other
provisions that the Lender may request.

                           Loan Documents means this Agreement, as it may be
renewed, extended or continued from time to time the Secured Note, the Custody
Agreement and any other document, instrument or agreement executed by the
Borrower or the Custodian in connection herewith or therewith, as any of the
same may be amended, extended or replaced from time to time. Reference to any
specific Loan Document in this Agreement or any other Loan Document shall

                                       6
<PAGE>   7
be deemed to include any amendment, extension or replacement thereof.

                           Market Value means, as of any date and with respect
to any Commercial Loan, the servicing-released fair market value of such
Commercial Loan as of such date as determined by the Lender (or an Affiliate
thereof) in its sole discretion.

                           Person means any individual, corporation,
partnership, joint venture, association, limited liability company, joint-stock
company, trust (including any beneficiary thereof), unincorporated organization
or government or any agency or political subdivision thereof.

                           Pledged Commercial Loan means, as of any date of
determination, any Commercial Loan for which the related note is then held by
the Custodian as bailee for the Lender for purposes of perfecting the Lender's
security interest.

                           Qualifying Special Purpose Entity means an entity
which qualifies as such under Financial Accounting Standards Board (FASB)
Statement No. 125.

                           Reference Banks means leading banks selected by the
Lender and engaged in transactions in Eurodollar deposits in the international
Eurocurrency market (i) with an established place of business in London, (ii)
whose quotations appear on Telerate Page 3750 on the Funding Date in question,
(iii) which have been designated as such by the Custodian and (iv) not
controlling, controlled by, or be under common control with, the Borrower.

                           Restoration Amount means, as of any date of
determination, the amount, if any, by which (i) the outstanding principal amount
of the Loan as of such date (including accrued interest, but excluding the
amount of any Advance to be made on such date) exceeds (ii) the Borrowing Base
of the Commercial Loans theretofore pledged to the Lender (disregarding any
Commercial Loans proposed to be pledged to the Lender on such date).

                  (c) The Loan shall mature on December 28, 2000, as such date
may be extended by means of a Credit Increase Confirmation and Note Amendment
(the "Maturity Date"), pursuant to the terms of Section 1(f) below.

                  (d) A Pledged Commercial Loan may only be removed from this
facility under the following circumstances: (i) such Pledged Commercial Loan has
been paid in full by the obligor, (ii) such

                                       7
<PAGE>   8
Pledged Commercial Loan breaches one or more of the representations and
warranties listed in Section 4(b) below, (iii) the Lender has advised the
Borrower that the Lender reasonably believes that any such Pledged Commercial
Loan is an Ineligible Commercial Loan or (iv) such Pledged Commercial Loan is
being sold in connection with the Lender exercising the Put Option pursuant to
Section 20.

                  (e) If the Loan is not repaid in whole on or prior to the
Maturity Date, the Loan, if continued by the Lender as provided in paragraph (f)
below, shall, commencing on the Maturity Date, bear interest at a rate per annum
equal to LIBOR plus 5.00% until repaid.

                  (f) In the event the Loan is not repaid in whole on or prior
to the Maturity Date, the Lender shall have the option, in its sole discretion,
to continue the Loan on the Maturity Date through the last day of the month
following the Maturity Date and, thereafter, on a month-to-month basis through
the last day of each succeeding month. If the Lender elects to continue the Loan
as aforesaid, it shall deliver notice of such election to the Borrower by means
of a Credit Increase Confirmation and Note Amendment in the form of Exhibit C no
later than 3:00 p.m. on the Business Day preceding the then scheduled date of
maturity of the Loan (any such preceding date, an "Election Date"). If no such
notice is delivered, the Loan shall immediately and automatically become due and
payable without any further action by the Lender on the day following such
Election Date, and in such event the Lender may exercise all rights and remedies
available to it as the holder of a first perfected security interest under the
Uniform Commercial Code of the State of New York (the "New York UCC").

                  (g) The Loan shall be evidenced by the secured promissory note
of the Borrower in the form attached hereto as Exhibit A (the "Secured Note").

                  (h) If any Pledged Commercial Loan is removed from the
facility in violation of subsection (d) above, except if the Lender does not
continue the Maturity Date until the Termination Date (as such term is defined
in the Engagement Letter dated as of December 4, 1998, as amended, among
Prudential Securities Incorporated, First International and Bancorp), then an
amount equal to 1.0% of the average outstanding principal balance of such
Commercial Loan during the time it was a Pledged Commercial Loan shall be paid
by Borrower to the Lender on the date such Commercial Loan is removed from this
facility.

                  Section 2. Purpose of Loan. The Borrower agrees that the Loan
shall be used to finance the following types of

                                       8
<PAGE>   9
commercial loans: equipment loans, working capital term loans, loans secured by
mortgages on commercial real estate and Insured Commercial Loans (such loans
being the "Commercial Loans", it being understood that Commercial Loans shall
not include loans originated under Section 7(a) of the Small Business Act). In
calculating the Market Value, Borrowing Base, principal balance of Pledged
Commercial Loans or the Restoration Amount, only the Insured Portion of Insured
Commercial Loans shall be included. Each of the Commercial Loans shall be loans
made to small business concerns either (a) originated by First International
pursuant to its published underwriting criteria existing at the time the
Commercial Loans were originated if such Commercial Loans were originated prior
to the date hereof and if such criteria was different than the criteria
heretofore supplied to the Lender, (b) originated by First International
pursuant to its published underwriting criteria heretofore supplied to the
Lender (or if such criteria have been changed, the terms of such new
underwriting criteria shall have been supplied to Lender and are acceptable to
Lender) or (c) originated by third parties and re-underwritten by First
International on terms consistent with its published underwriting criteria (or
pursuant to underwriting criteria presented to and acceptable to Lender) and in
each case transferred by First International to the Borrower; provided, however,
that the Lender shall have the right to conduct such review of any such
Commercial Loans as the Lender may, in its sole discretion, decide to conduct.
The Lender may decline to include in the facility any Commercial Loan.

                  Section 3. Custody of Original Notes and Loan Documents. (a)
Prior to the time that the Borrower requests any Advance by the Lender with
respect to any Commercial Loan, the Borrower shall cause to be delivered to the
Custodian, at the offices of the Custodian located in New York, New York, or at
any such other place as the parties hereto may select from time to time, the
originals of all notes evidencing any Commercial Loan in which the Lender is to
be granted a security interest pursuant to this Agreement. Upon delivery to the
Custodian by the Borrower (or by the title company as directed by the Borrower)
of any note evidencing a Commercial Loan, the Custodian will immediately execute
and deliver to the Lender and Borrower the Initial Trust Receipt and
Certification, in the form attached as Exhibit A to the Custody Agreement, as
provided in Section 3(a) of the Custody Agreement. Delivery of the note or notes
to the Custodian and the Custodian's continuous possession of such note or notes
shall be a condition precedent to any such Commercial Loan being considered as
Collateral (as defined in (b) below) for the purposes of the computation of the
amount of any Advance or the Loan under this Agreement.

                                       9
<PAGE>   10
                  (b) Within 30 days after Borrower delivers to the Custodian a
note evidencing a Commercial Loan, Borrower shall deliver to HSBC Bank USA, as
custodian (the "Custodian") on behalf of the Lender, the documents and
instruments listed in Section 2(c)-(e) of that certain Commercial Loan Custody
Agreement dated as of December 1, 1999 (the "Custody Agreement") among First
International, the Borrower, the Custodian and the Lender. (Such documents and
instruments, including without limitation all mortgages relating thereto (with
respect to each Pledged Commercial Loan, the related "Loan File"), and the
original note or notes evidencing and relating to the Commercial Loans, together
with any proceeds thereof, are hereinafter referred to as the "Collateral.")
Within three Business Days of delivery to the Custodian by the Borrower (or by
the title company as directed by the Borrower) of the Loan File relating to a
Commercial Loan, the Custodian will execute and deliver to the Lender, with a
copy to the Borrower, the Final Trust Receipt and Certification, in the form
attached as Exhibit B to the Custody Agreement, as provided in Section 3(b) of
the Custody Agreement.

                  The Borrower hereby pledges all of its right, title and
interest in and to the Collateral to the Lender to secure the repayment of
principal of and interest on the Loan and all other amounts owing to the Lender
hereunder (collectively, the "Secured Obligations").

                  (c) Whenever any Pledged Commercial Loan is removed from this
facility, as permitted hereunder, all files held by the Custodian relating to
such removed Pledged Commercial Loan shall be returned to the Borrower in the
manner set forth in the Custody Agreement.

                           Section 4. Representations, Warranties and Covenants.
(a) The Borrower represents and warrants to the Lender that:

                  (i) The Borrower has been duly organized and is validly
         existing as a corporation in good standing under the laws of the State
         of Delaware. It is a Qualifying Special Purpose Entity.

                  (ii) It is duly licensed as a "Licensee" or is otherwise
         qualified in each state in which it transacts business where the
         ownership or leasing of its properties or the conduct of its business
         requires such license or qualification and is not in default of such
         state's applicable law, rules and regulations. It has the requisite
         power and authority and legal right to own and grant a lien on all of
         its right, title and interest in and to the Collateral, and to execute
         and deliver, engage in the

                                       10
<PAGE>   11
         transactions contemplated by, and perform and observe the terms and
         conditions of, this Agreement, the Custody Agreement and the other Loan
         Documents.

                  (iii) At all times after the Custodian has received from the
         Borrower an original note and Loan File relating to a Commercial Loan
         and until payment in full of the Loan, the Borrower will not commit any
         act in violation of applicable laws, or regulations promulgated with
         respect thereto.

                  (iv) The Borrower is solvent and is not in default under any
         mortgage, borrowing agreement or other instrument or agreement
         pertaining to indebtedness for borrowed money, and the execution,
         delivery and performance by the Borrower of this Agreement and the
         other Loan Documents and the execution by the Borrower of the Secured
         Note do not conflict with any term or provision of its certificate of
         incorporation or by-laws or any law, rule, regulation, order, judgment,
         writ, injunction or decree applicable to it of any court, regulatory
         body, administrative agency or governmental body having jurisdiction
         over it and will not result in any violation of any mortgage,
         instrument or agreement pertaining to indebtedness for borrowed money.

                  (v) Any financial statements of the Borrower furnished to the
         Lender do not omit to disclose any material liabilities or other facts
         relevant to the Borrower's condition. All certificates of the Borrower
         or any of its officers furnished to the Lender are true and complete.
         Any such financial statements shall have been prepared in accordance
         with GAAP.

                  (vi) Except as have been previously obtained, no consent,
         approval, authorization or order of, registration or filing with, or
         notice to any governmental authority or court is required under
         applicable law in connection with the execution, delivery and
         performance by it of this Agreement and the other Loan Documents.

                  (vii) There is no action, proceeding or investigation pending
         or, to its best knowledge, threatened against Borrower or any of its
         Affiliates before any court, administrative agency or other tribunal
         (A) asserting the invalidity of this Agreement or the other Loan
         Documents, (B) seeking to prevent the consummation of any of the
         transactions contemplated by this Agreement or the other Loan Documents
         or (C) which might materially and adversely affect the validity of the
         Commercial Loans or the performance by it of its obligations under, or
         the validity

                                       11
<PAGE>   12
         or enforceability of, this Agreement or the other Loan Documents.

                  (viii) There has been no adverse change in the business,
         operations, financial condition, properties or prospects of the
         Borrower, First International and Bancorp taken as a whole since the
         date set forth in Bancorp's most recent 10-K or 10-Q filing under the
         Securities Exchange Act of 1934, as amended, which would have a
         material adverse effect on the ability of the Borrower to perform its
         obligations under this Agreement or the other Loan Documents.

                  (ix) This Agreement and the other Loan Documents have been
         duly authorized, executed and delivered by the Borrower, all requisite
         corporate action having been taken, and each is valid, binding and
         enforceable against the Borrower in accordance with its terms.

                  (x) When a note and the related Loan File evidencing a
         Commercial Loan and the other Loan Documents are delivered to the
         Custodian, the security interest granted pursuant to this Agreement
         will constitute a fully-perfected first priority security interest in
         the Collateral in favor of the Lender.

                  (xi) The Board of Directors of the Borrower has approved the
         transactions contemplated by this Agreement and the other Loan
         Documents.

                  (xii) At the time of origination of a Commercial Loan, in all
         instances where commercial real property serves as the primary
         collateral for such Commercial Loan, the related mortgaged property was
         free of contamination from toxic substances or hazardous wastes
         requiring action under applicable laws or is subject to ongoing
         environmental rehabilitation, and the Borrower has no knowledge of any
         such contamination from toxic substances or hazardous waste material on
         any mortgaged property unless such items are below action levels or
         such mortgaged property is subject to ongoing environmental
         rehabilitation.

                  (b) With respect to every Commercial Loan and related note and
Loan File delivered to the Custodian and pledged to the Lender to secure the
Loan, the Borrower represents and warrants to the Lender that:

                  (i) Such note evidencing a Commercial Loan and the related
         Loan File are complete and authentic and all signatures thereon are
         genuine.

                                       12
<PAGE>   13
                  (ii) Such Commercial Loan was (a) originated by First
         International pursuant to its published underwriting criteria existing
         at the time the Commercial Loans were originated if such Commercial
         Loans were originated prior to the date hereof and if such criteria
         were different than the criteria heretofore supplied to the Lender, (b)
         originated by First International pursuant to its published
         underwriting criteria heretofore supplied to the Lender (or if such
         criteria have been changed, the terms of such new underwriting criteria
         shall have been supplied to Lender) or (c) originated by third parties
         and re-underwritten by First International on terms consistent with its
         published underwriting criteria (or pursuant to other underwriting
         criteria previously supplied to Lender), and such Commercial Loan arose
         from a bona fide loan, complying with all applicable state and Federal
         laws and regulations, to Persons having legal capacity to contract and
         is not subject to any defense, set-off or counterclaim.

                  (iii) All amounts represented to be payable on such Commercial
         Loan are, in fact, payable in accordance with the provisions of such
         Commercial Loan.

                  (iv) No payment default or material non-payment default has
         occurred in any provisions of such Commercial Loan.

                  (v) Any real property subject to any security interest granted
         by an obligor in connection with any Commercial Loan is not subject to
         any other encumbrances other than (i) a stated prior mortgage or
         mortgages, (ii) liens for taxes not yet due and payable or similar
         governmental charges not yet due and payable or still subject to
         payment without interest or penalty or (iii) zoning restrictions,
         utility easements, covenants or conditions and restrictions of record
         and other encumbrances, which will neither defeat nor render invalid
         such security interest or the priority thereof nor materially impair
         the marketability or value of such real property nor be violated by the
         existing improvements or the intended use thereof.

                  (vi) The Borrower holds good and indefeasible title to, and is
         the sole owner of, such Commercial Loan, or in the case of the Insured
         Commercial Loans, the Insured Portion, subject to no liens, charges,
         mortgages, participations, encumbrances or rights of any Person.

                  (vii) Each Commercial Loan conforms to the description thereof
         as set forth on the related Commercial Loan Schedule delivered to the
         Custodian and the Lender.

                                       13
<PAGE>   14
                  (viii) The Commercial Loans do not have characteristics which
         are materially worse than those of other loans made to small business
         concerns financed by First International during the twelve-month period
         preceding the related Funding Date.

                  (ix) No Commercial Loan shall have been originated in, or be
         subject to the laws of, any jurisdiction under which the sale, transfer
         and assignment of such Commercial Loan under this Agreement shall be
         unlawful, void or voidable.

                  (x) With respect to each Insured Commercial Loan, the related
         Insurance Policy is in full force and effect and the holder of such
         Insured Commercial Loan is entitled to the full benefits of the
         Insurance Policy.

                  (xi) Except for Insured Commercial Loans, the obligor on such
         Commercial Loan is a United States entity.

                  (xii) Such Commercial Loan is payable in U.S. Dollars.

                  (xiii) The first payment due on such Commercial Loan was not,
         or will not be, 30 or more days delinquent in payments.

                  (c) The Borrower covenants with the Lender that, during the
term of this facility:

                  (i) The Borrower will continue to be a wholly-owned subsidiary
         of First International.

                  (ii) The Borrower shall not incur any other indebtedness,
other than trade payables in the ordinary course of business.

                  (iii) The Borrower shall make available to Lender and its
agents and employees, upon reasonable prior notice and during normal business
hours, the books and records of the Borrower relating to the Pledged Commercial
Loans and the transactions contemplated hereby.

                  Section 5. Mandatory Prepayment of Loan. (a) Upon discovery by
the Borrower, the Custodian or the Lender of any breach of any of the
representations and warranties listed in Section 4 preceding, the party
discovering such breach shall promptly give notice of such discovery to the
others.

                  The Lender has the right to require, in its unreviewable
discretion, the Borrower to repay the Loan in part

                                       14
<PAGE>   15
with respect to (i) any Commercial Loan which breaches one or more of the
representations and warranties listed in Section 4(b) preceding or (ii) any
Commercial Loan which the Lender reasonably believes to be an Ineligible
Commercial Loan; provided, however, that the Borrower may, in lieu of repaying
the Loan in part, substitute one or more other Commercial Loans, in replacement
for any Commercial Loan described in (i) or (ii) above.

                  (b) If any Commercial Loan, as indicated on any Commercial
Loan Schedule delivered pursuant to Section 9 hereof, becomes thirty (30) or
more days delinquent in payment, the Lender may require the Borrower to prepay
the Loan in part with respect to such Commercial Loan; provided, however, that
the Borrower may, in lieu of repaying the Loan in part, substitute one or more
other Commercial Loans, in replacement for any Commercial Loan that has become
thirty (30) or more days delinquent in payment.

                  (c) If, on any date other than a Funding Date, the Lender
determines that a Collateral Deficiency Situation exists, the Lender shall so
notify the Borrower, and the Borrower, within three (3) Business Days, shall
either (i) pay to the Lender the Restoration Amount or (ii) deliver to the
Custodian on behalf of the Lender additional Commercial Loans with an aggregate
Market Value at least equal to the product of (x) the Restoration Amount and (y)
a fraction, the numerator of which is 100% and the denominator of which is the
Applicable Percentage. The provisions of Section l shall govern with regard to a
Collateral Deficiency Situation as of a Funding Date; provided, however, that if
the Collateral Deficiency Situation results from a release by the Lender of its
lien, such Collateral Deficiency Situation shall be remedied as aforesaid on the
business day on which such Collateral Deficiency Situation arises.

                  Section 6. Additional Documents. The Borrower will execute and
deliver, or cause to be executed and delivered, to the Lender from time to time,
such confirmatory or supplementary security agreements, financing statements,
reaffirmations and consents and such other documents, instruments or agreements
as the Lender may reasonably request, which are in the Lender's judgment
necessary or desirable to obtain for the Lender the benefit of the Collateral.

                  Section 7. Servicing. First International shall service the
Commercial Loans with the degree of skill and care consistent with that which
First International customarily exercises with respect to similar loans owned,
managed or serviced by it and all applicable industry standards. First
International shall comply with all applicable state and federal laws and
regulations; shall maintain all state and federal licenses and

                                       15
<PAGE>   16
franchises necessary for it to perform its servicing responsibilities hereunder
and shall not impair the rights of the Lender in any Commercial Loans or for
payment thereunder. As compensation for its services hereunder, the Borrower
shall pay First International a monthly servicing fee equal to 0.40% per annum
of the aggregate principal balance of the Pledged Commercial Loans as of the
first day of such month. The servicing fee shall be paid no later than 15 days
after each calendar month.

                  Section 8. No Oral Modifications; Successors and Assigns. No
provisions of this Agreement shall be waived or modified except by a writing
duly signed by the authorized agents of the Lender and the Borrower. This
Agreement shall be binding upon the successors and assigns of the parties
hereto.

                  Section 9. Reports. (a) The Borrower shall provide or cause
First International to provide the Lender with an electronic disk or tape (each,
a "Supplemental Commercial Loan Schedule") (i) three Business Days prior to each
Funding Date, (ii) within 10 Business Days after the end of each month, and
(iii) within two Business Days following any request made by the Lender or any
Affiliate thereof for such a report, setting forth, on a loan-by-loan basis, all
the information contained in the definition of "Commercial Loan Schedule"
herein, plus the current principal balance outstanding of each Commercial Loan
as of the end of the prior calendar month and the change in the current
principal balance outstanding of each Commercial Loan since the date of the last
delivered Commercial Loan Schedule or Supplemental Commercial Loan Schedule, as
the case may be. Such Supplemental Commercial Loan Schedule will also contain
delinquency information concerning (x) all Commercial Loans then held in this
warehouse facility and (y) any Commercial Loans proposed to be delivered to this
facility on the next Funding Date. The Supplemental Commercial Loan Schedule
shall be in a format as may be agreed upon by the Borrower and the Lender from
time to time.

                  (b) The Borrower shall provide or cause First International to
provide the Lender and the Custodian with a "hard-copy" Commercial Loan Schedule
or Supplemental Commercial Loan Schedule meeting the requirements of the Custody
Agreement on each date on which an electronic disk or tape is delivered to the
Lender (or a designated Affiliate thereof); the electronic disk or tape and the
Commercial Loan Schedule shall each relate to the same Cut-Off Date.

                  (c) The Borrower shall furnish or cause First International to
furnish to Lender (i) promptly, copies of any material and adverse notices
(including, without limitation, notices of defaults, breaches, potential
defaults or potential breaches) given to or received from its or its Affiliates
other

                                       16
<PAGE>   17
lenders, (ii) immediately, notice of the occurrence of any "Event of Default"
hereunder or of any situation which the Borrower reasonably expects to develop
into an "Event of Default" hereunder, (iii) copies of Bancorp's annual and
quarterly financial statements reflecting any public filings made to the
Securities and Exchange Commission, provided that any annual Form 10-K filing
shall be furnished no later than 90 days after each year-end and any quarterly
Form 10-Q filing shall be furnished no later than 45 days after each quarter
end, (iv) annual audited financial statements 90 days after each year-end, (v)
three (3) days prior to the date of each Advance (the date of which Advance
shall be no later than two (2) weeks after the receipt of the Supplemental
Commercial Loan Schedule delivered pursuant to Section 9 (a) (ii) above),
portfolio performance data with respect to the Commercial Loans, (vi) First
International's quarterly Call Report no later than 45 days after each quarter,
(vii) any other financial information reasonably requested by the Lender and
(viii) an officer's certificate within ten (10) Business Days after the end of
each quarter to the effect that the covenants set forth in Section 4(c) and the
conditions set forth in Section 1(a)6 are true and satisfied, respectively, on
such date and containing therein the mathematical calculations used to determine
Tangible Net Worth and all required ratios. All required financial statements,
information and reports shall be prepared in accordance with GAAP, or, if
applicable to SEC filings, SEC accounting regulations.

                  Section 10. Events of Default. Each of the following shall
constitute an "Event of Default" hereunder:

                  (a) Failure of the Borrower or an Affiliate to (i) make any
payment of interest or principal or any other sum which has become due, whether
by acceleration or otherwise, under the terms of the Secured Note, this
Agreement or any other Loan Document evidencing or securing indebtedness of the
Borrower to the Lender or (ii) pay the Restoration Amount or deliver Commercial
Loans in the amount required by Section 5(c);

                  (b) Assignment or attempted assignment by the Borrower of this
Agreement or any rights hereunder, without first obtaining the specific written
consent of the Lender, or the granting by the Borrower of any security interest,
lien or other encumbrance on any Collateral to other than the Lender;

                  (c) The filing by or against the Borrower or any Affiliate
thereof of a petition for liquidation, reorganization, arrangement or
adjudication as a bankrupt or similar relief under the bankruptcy, insolvency or
similar laws of the United States or any state or territory thereof or of any
foreign jurisdiction; the failure of the Borrower or such Affiliate to secure
dismissal

                                       17
<PAGE>   18
of any such petition filed against it within thirty (30) days of such filing;
the making of any general assignment by the Borrower or any Affiliate for the
benefit of creditors; the appointment of a receiver or trustee for the Borrower
or any such Affiliate, or for any part of the Borrower's or such Affiliate's
assets; the institution by the Borrower or any Affiliate of any other type of
insolvency proceeding (under the Bankruptcy Code or otherwise) or of any formal
or informal proceeding, for the dissolution or liquidation of, settlement of
claims against, or winding up of the affairs of, the Borrower or any Affiliate;
the institution of any such proceeding against the Borrower or any Affiliate if
the Borrower or such Affiliate shall fail to secure dismissal thereof within
thirty (30) days thereafter; the consent by the Borrower or any Affiliate to any
type of insolvency proceeding against the Borrower or such Affiliate (under the
Bankruptcy Code or otherwise); the occurrence of any event or existence of any
condition which could be the ground, basis or cause for any proceeding or
petition described in this Section;

                  (d) Any materially adverse change in the financial condition
of the Borrower, First International or Bancorp or the existence of any other
condition which, in the Lender's sole determination, constitutes an impairment
of the Borrower's ability to perform its obligations under this Agreement or the
Secured Note;

                  (e) Failure of First International to service the Commercial
Loans in substantial compliance with the servicing requirements set forth in
Section 7 hereof;

                  (f) A breach of (i) any representation or warranty set forth
in Section 4(a) hereof, (ii) any of the covenants set forth in Sections 4(c) and
9 hereof, (iii) any of the conditions set forth in Section 1(a)6 hereof shall
cease to be satisfied or (iv) a use of the proceeds of the Loan for a purpose
other than as set forth in Section 2 hereof;

                  (g) The Borrower or any of its Affiliates shall default in (i)
any payment of principal or interest of any indebtedness (other than the Loan)
or guarantee obligation beyond the grace period, if any, provided therefor in
the instruments or agreements pursuant to which such indebtedness was created
(not to exceed 14 days), or in (ii) the observance or performance of any other
provision of such indebtedness or guarantee, and the lender or beneficiary
thereunder shall have the ability to declare an "event of default" under such
instrument or agreement, which would result in either an acceleration of the
indebtedness created thereunder or the termination of future funding commitments
to the Borrower or an Affiliate.

                                       18
<PAGE>   19
                  Section 11. Remedies Upon Default. (a) Upon the happening of
one or more Events of Default, the Lender may (x) refuse to make further
Advances hereunder and (y) immediately declare the principal of the Secured Note
then outstanding to be immediately due and payable, together with all interest
thereon and fees and expenses accruing under this Agreement and exercise all
rights and remedies available to it as the holder of a first perfected security
interest under the New York UCC; provided that, upon the occurrence of the Event
of Default referred to in Section 10(c), such amounts shall immediately and
automatically become due and payable without any further action by any Person or
entity. Upon such declaration or such automatic acceleration, the balance then
outstanding on the Secured Note shall become immediately due and payable without
presentation, demand or further notice of any kind to the Borrower.

                  (b) Upon the occurrence of an Event of Default, the Lender may
assume all collection and servicing functions (including, without limitation,
the establishment of new addresses and accounts to receive all payments on the
Pledged Commercial Loans) or may appoint a successor servicer designated by the
Lender to assume those functions. At all times following such events, for so
long as the Loan or any portion thereof is outstanding, the Lender shall have
the right to collect and receive all further payments made on the Collateral,
and if any such payments are received by the Borrower, the Borrower shall not
commingle the amounts received with other funds of the Borrower and shall
promptly remit all such payments received over to the Lender.

                  (c) Following the occurrence and during the continuance of an
Event of Default, interest shall accrue on the Loan at a default interest rate
of LIBOR plus 5.00%.

                  Section 12. Indemnification. The Borrower agrees to hold the
Lender (which term shall include all Affiliates, officers, directors, employees
and agents of Lender and its Affiliates) harmless from and indemnifies the
Lender against all liabilities, losses, damages, judgments, costs and expenses
of any kind which may be imposed on, incurred by, or asserted against the Lender
relating to or arising out of this Agreement, the other Loan Documents or any
transaction contemplated hereby or thereby resulting from anything other than
the Lender's gross negligence or willful misconduct. The Borrower also agrees to
reimburse the Lender for all reasonable expenses in connection with the
enforcement of this Agreement and the other Loan Documents including without
limitation the reasonable fees and disbursements of counsel. The Borrower's
agreements in this Section shall survive the payment in full of the Secured Note
and the expiration or termination of this Agreement. The Borrower

                                       19
<PAGE>   20
hereby acknowledges that, notwithstanding the fact that the Secured Note is
secured by the Collateral, the obligations of the Borrower under the Secured
Note are recourse obligations of the Borrower.

                  Section 13. Power of Attorney. The Borrower hereby authorizes
the Lender, at the Borrower's expense, to file such financing statement or
statements relating to the Collateral without the Borrower's signature thereon
as the Lender at its option may deem appropriate, and appoints the Lender as the
Borrower's attorney-in-fact to execute any such financing statement or
statements in the Borrower's name and to perform all other acts which the Lender
deems appropriate to perfect and continue the security interest granted hereby
and to protect, preserve and realize upon the Collateral, including, but not
limited to, the right to endorse notes, complete blanks in documents and sign
assignments on behalf of the Borrower as its attorney-in-fact. This Power of
Attorney is coupled with an interest and is irrevocable without the Lender's
consent. Notwithstanding the foregoing, the power of attorney hereby granted may
be exercised only during the occurrence and continuance of any Event of Default
hereunder.

                  SECTION 14. GOVERNING LAW; AGREEMENT CONSTITUTES SECURITY
AGREEMENT. THIS AGREEMENT IS INTENDED BY THE PARTIES HERETO TO BE GOVERNED BY
NEW YORK LAW, WITHOUT GIVING EFFECT TO PRINCIPALS OF CONFLICTS OF LAW, AND TO
CONSTITUTE A SECURITY AGREEMENT WITHIN THE MEANING OF THE NEW YORK UCC.

                  Section 15. Lender May Act Through Affiliates. The Lender may,
from time to time, designate one or more Affiliates for the purpose of
performing any action hereunder.

                  Section 16. Notices. All demands, notices and communications
relating to this Agreement shall be in writing and shall be deemed to have been
duly given if mailed, by registered or certified mail, return receipt requested,
or by overnight courier, or, if by other means, when received by the other party
or parties at the address shown below, or such other address as may hereafter be
furnished to the other party or parties by like notice. Any such demand, notice
or communication hereunder shall be deemed to have been received on the date
delivered to or received at the premises of the addressee (as evidenced, in the
case of registered or certified mail, by the date noted on the return receipt).

If to the Borrower:

                           FIB HOLDINGS, INC.

                                       20
<PAGE>   21
                           280 Trumbull Street
                           Hartford, CT  06103
                           Attention:    Theodore J. Horan
                           Telephone:    860-241-2595
                           Fax Number:   860-241-4726

With a copy to:

                           Bruce C. Silvers, Esq.
                           Bingham Dana LLP
                           One State Street
                           Hartford, CT  06103
                           Telephone:    860-240-2943
                           Fax Number:   860-240-2800

If to the Lender:

                           Prudential Securities Credit
                               Corporation
                           One New York Plaza
                           Credit Analysis Department
                           New York, New York 10292
                           Attention:    Jeff French/Jim Maitland
                           Telephone:    (212) 778-1540
                           Fax Number:   (212) 778-2239

With copies to:

                           Prudential Securities Incorporated
                           One New York Plaza
                           Investment Banking Group
                           New York, New York 10292
                           Attention:    Andrew Yuder
                           Phone Number: (212) 778-2581
                           Fax Number:   (212) 778-7403

                           Richard L. Fried, Esq.
                           Stroock & Stroock & Lavan LLP
                           180 Maiden Lane
                           New York, New York  10038
                           Phone Number: (212) 806-6047
                           Fax Number:   (212) 806-6006

                  Section 17. Severability. Any provision of this Agreement
which is prohibited, unenforceable or not authorized in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or non-authorization, without invalidating the remaining
provisions

                                       21
<PAGE>   22
hereof or affecting the validity, enforceability or legality of such provision
in any other jurisdiction.

                  Section 18. Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute one and the same instrument.

                  Section 19. Headings. The section headings contained herein
are for convenience of reference only and shall not define or limit any of the
terms and provisions hereof.

                  Section 20. Put Option. (a) The Borrower hereby grants the
Lender the option (the "Put Option") to require the Borrower to repay some or
all of the Loan, at any time following the date hereof, but subject to the
provisions set forth in this Section 20, for an amount equal to the sum of (i)
100% of the principal amount of the portion of the Loan being repaid (ii) all
accrued interest thereon, and (iii) any amounts owed, to the Lender under this
Agreement (the "Put Option Price"). If the Lender desires to exercise the Put
Option, it shall provide the Borrower and the Custodian with written notice to
that effect. Such notice shall specify the portion of the Loan for which the Put
Option is being exercised and shall set for closing a date (the "Put Option
Purchase Date") which is not less than 15 nor more than 90 days after the date
such notice is sent. The Lender may rescind such notice, without liability of
any kind, any time prior to the Put Option Purchase Date by giving written
notice thereof to the Borrower and the Custodian.

                  (b) Notwithstanding anything to the contrary in Section 20(a),
the Put Option may only be exercised if the Borrower obtains the Put Option
Price by transferring the Pledged Commercial Loans in connection with the
settlement of a commercial transaction conducted in the capital markets. If less
than all of the Pledged Commercial Loans are to be so transferred, the Borrower
shall transfer those Pledged Commercial Loans as are designated in writing by
the Lender.

                  (c) If the Lender exercises the Put Option, on the Put Option
Purchase Date the Borrower shall pay the Lender the Put Option Price.

                  (d) If in connection with a transaction described in paragraph
(b) above, the Lender exercises the Put Option, on the closing date of such
transaction the Borrower shall sell to the party designated by the Lender those
Pledged Commercial Loans that are designated in writing by the Lender pursuant
to paragraph (b) above.

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                  [Rest of Page Intentionally Left Blank]

                                       23
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                  IN WITNESS WHEREOF, the parties have executed this Agreement
the date and year first above written.

                                          FIB HOLDINGS, INC.

                                          By:/s/Theodore J. Horan
                                                Name:  Theodore J. Horan
                                                Title: Vice President

                                          PRUDENTIAL SECURITIES CREDIT
                                                   CORPORATION

                                          By:/s/Jeffrey K. French
                                                Name:  Jeffrey K. French
                                                Title: Senior Vice President

Accepted and Agreed as to
  Section 7

FIRST INTERNATIONAL BANK

By:/s/ Theodore J. Horan
       Name:  Theodore J. Horan
       Title  Senior Vice President

                                       24

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