Document:

EX-10.56

Exhibit 10.56

THE HUNTINGTON NATIONAL BANK

Second Amended and Restated Promissory Note

(D Note)

			
	 	 	 
	$10,000,000
	 	March 31, 2008 (the “Effective Date”)

RECITALS

     WHEREAS, each of the borrowers set forth on Schedule 1 attached to the Forbearance
Agreement (as defined below) (individually a “Borrower” and collectively,
“Borrowers”) has executed and delivered that certain Forbearance Agreement and Amendment to
Credit Agreements, dated as of December 31, 2007, by and among Franklin Credit Management
Corporation (“FCMC”), Borrowers, and The Huntington National Bank, successor by merger to
Sky Bank (“Bank”), (as amended, restated, modified or otherwise supplemented from time to
time, herein the “Forbearance Agreement”), and Borrowers and Bank desire to amend and
restate a certain Amended and Restated Promissory Note (D Note) dated December 28, 2007, in the
original principal sum of $5,000,000 (the “Existing Note”); and

     WHEREAS, Borrowers and Bank intend that (i) this Second Amended and Restated Promissory Note
(D Note) (this “Note”) will not constitute a novation, (ii) this Note will amend and
restate the indebtedness, obligations and liabilities under the Existing Note, and (iii) from and
after the Effective Date, the Existing Note shall be of no force or effect, except to evidence the
incurrence of Borrowers’ obligations thereunder; and

     WHEREAS, Borrowers and Bank acknowledge and agree that this Note is the amended and restated
promissory note intended to evidence the indebtedness in respect to the Tranche D Advances;

     NOW THEREFORE, in consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Borrowers hereby jointly and severally agree as follows:

PROMISE TO PAY

     FOR VALUE RECEIVED, each of Borrowers, jointly and severally, promises to pay to the order of
Bank, at 10 East Main Street, Salineville, Ohio 43945, or such other address as Bank in writing
shall provide to FCMC (as defined below), the sum of Ten Million and 00/100 Dollars ($10,000,000)
(the “Principal Sum”), or if less, the aggregate unpaid principal amount of all Tranche D
Advances made by Bank to the Borrowers, together with interest as hereinafter provided and payable
at the times and in the manner hereinafter provided. All payments made with respect to this Note
shall be made to Bank in immediately available funds.

 

 

     This Note is issued pursuant to, and/or is entitled to the benefits of, the Forbearance
Agreement; the Credit Agreements; and the Loan Documents.

     This Note amends and restates in its entirety the Existing Note issued by Borrowers (other
than the Additional Subsidiaries) to Bank. As of the Effective Date, the Existing Note shall be
amended and restated in its entirety by this Note, and the Existing Note shall thereafter be of no
further force and effect except to evidence the incurrence of Borrowers’ obligations thereunder.
It is expressly understood and agreed by the parties hereto that this Note is not intended to
constitute a novation of the obligations and liabilities of Borrowers under any Credit Agreement or
the Existing Note and is not a payment of any amounts due from any Borrower.

     The proceeds of the indebtedness evidenced hereby may be advanced, repaid and readvanced in
partial amounts during the term of this Note and prior to maturity. Each such advance shall be
made to Borrowers upon receipt by Bank of the application by a Borrower therefor and disbursement
instructions, shall be in such form as Bank shall from time to time prescribe. Bank shall be
entitled to rely on any oral or telephonic communication requesting an advance or providing
disbursement instructions hereunder, which shall be received by it in good faith from anyone
reasonably believed by Bank to be a Borrower, or the authorized agent of a Borrower. Borrowers
agree that all advances made by Bank will be evidenced by entries made by Bank into its electronic
data processing system and/or internal memoranda maintained by Bank. Borrowers further agree that
the sum or sums shown on the most recent printout from Bank’s electronic data processing system
and/or on such memoranda shall be conclusive and binding evidence (absent manifest error) of the
amount of the Principal Sum and of the amount of any accrued interest.

INTEREST

     (a) Interest shall be calculated and will accrue on the unpaid balance of the Principal Sum at
the applicable Interest Rates as provided in the Forbearance Agreement.

     (b) The books and records of Bank, absent manifest error, shall constitute binding and
conclusive evidence of the principal balance of the outstanding Principal Sum and other amounts
outstanding hereunder, and the date and amount of each payment of principal and interest and
applicable Interest Rates and other information with respect thereto.

MANNER OF PAYMENT; PRINCIPAL BALANCE

     (a) The entire unpaid balance of the Principal Sum (including, without limitation, all
indebtedness in respect to Letters of Credit) shall be due and payable on the Tranche D Termination
Date, and at maturity, whether by demand, acceleration or otherwise.

     (b) In addition to any other amounts due and payable under this Note, Borrowers shall deliver
to Bank any other amounts due and payable from time to time under the Forbearance Agreement in
respect to the Tranche D Advances and Tranche D Note.

2

 

SECURITY

     This Note is secured by the security interests, assignments, and mortgages granted or
referenced in the Credit Agreements, the Forbearance Agreement, and the Loan Documents.

DEFAULT

     If a Forbearance Default has occurred and is continuing, Borrowers shall be obligated to pay
Bank interest on the outstanding Principal Sum at the Post-Default Rate (as defined in the
Forbearance Agreement). Additionally, upon the occurrence and continuation of a Forbearance
Default, the unpaid balance of Principal Sum and all accrued interest may be declared to be due and
payable all in the manner, upon the conditions and with the effect provided in the Forbearance
Agreement.

GENERAL PROVISIONS

     Each Borrower is accepting joint and several liability hereunder in consideration of the
financial accommodations to be provided by Bank under this Note, for the mutual benefit, directly
and indirectly, of each Borrower and in consideration of the undertakings of each Borrower to
accept joint and several liability for all indebtedness, obligations and liabilities evidenced by
this Note. Each Borrower, jointly and severally, hereby irrevocably and unconditionally accepts,
as a surety and as a co-debtor, joint and several liability with each other Borrower, with respect
to the payment and performance of all of the indebtedness, obligations and liabilities evidenced by
this Note, it being the intention of the parties hereto that all of the indebtedness, obligations
and liabilities evidenced by this Note shall be the joint and several obligations of each Borrower
without preferences or distinction among them. The obligations of each Borrower under this
paragraph shall not be diminished or rendered unenforceable by any winding up, reorganization,
arrangement, liquidation, reconstruction or similar proceeding with respect to any Borrower. The
joint and several liability of each Borrower hereunder shall continue in full force and effect
notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the name,
constitution or place of formation of any other Borrower or Bank. The provisions of this paragraph
are made for the benefit of Bank and its respective successors and assigns, and may be enforced by
it from time to time against any or all Borrowers as often as occasion therefore may arise and
without requirement on the part of Bank (or its successors or assigns), first to marshal any of its
claims or to exercise any of its rights against any other Borrower or to exhaust any remedies
available to it against any other Borrower hereunder or to elect any other remedy. The provisions
of this paragraph shall remain in effect until all of the indebtedness, obligations and liabilities
evidenced by this Note shall have been paid in full or otherwise fully satisfied. If at any time,
any payment, or any part thereof, made in respect to any indebtedness, obligations or liabilities
evidenced by this Note, is rescinded or must otherwise be restored or returned by Bank for any
reason, the provisions of this paragraph will forthwith be reinstated in effect, as though such
payment had not been made. The obligations of each Borrower under this paragraph constitute the
absolute and unconditional, full recourse

3

 

obligations of each Borrower enforceable against each such Borrower to the full extent of its
properties and assets, irrespective of the validity, regularity or enforceability of this Note or
any other circumstances whatsoever. Each Borrower, and any indorser, surety, or guarantor, hereby
jointly and severally waives notice of acceptance of its joint and several liability, presentment,
notice of dishonor, protest, notice of protest, and diligence in bringing suit against any party
hereto, waives the defenses of impairment of collateral for the obligation evidenced hereby,
impairment of a person against whom Bank has any right of recourse, and any defenses of any
accommodation maker and consent that without discharging any of them, the time of payment and any
other provision of this Note may be extended or modified an unlimited number of times before or
after maturity without notice to Borrowers. Each Borrower jointly and severally agrees that it
will pay the obligations evidenced hereby, irrespective of any action or lack of action on Bank’s
part in connection with the acquisition, perfection, possession, enforcement, disposition, or
modification of all the obligations evidenced hereby or any and all security therefore, and no
omission or delay on Bank’s part in exercising any right against, or taking any action to collect
from or pursue Bank’s remedies against any party hereto will release, discharge, or modify the
duties of Borrowers, or any of them, to make payments hereunder. Each Borrower agrees that Bank,
without notice to or further consent from any Borrower, may release or modify any collateral,
security, guaranty or other document now held or hereafter acquired, or substitute other
collateral, security or other guaranties, and no such action will release, discharge or modify the
duties of Borrowers, or any of them, hereunder. Each Borrower waives any claim or other right
which it might now have or hereafter acquire against any other person or entity that is primarily
or contingently liable on the obligations that arise from the existence or performance of each
Borrower’s obligations under this Note, including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution, indemnification, or any right to participate in any claim
or remedy of Bank or any collateral security which Bank now has or hereafter acquires, whether such
claim, remedy or right arises in equity, under contract or statute, at common law, or otherwise.

     No reference herein to the Credit Agreements, the Forbearance Agreement, or the Loan Documents
shall alter or impair the obligations of each Borrower, which is absolute and unconditional, to pay
the principal of and interest on this Note at the place and at the respective times herein
prescribed. Each Borrower promises to pay all costs and expenses, including reasonable attorneys’
fees and disbursements incurred in the collection and enforcement of this Note or any appeal of a
judgment rendered thereon.

     Capitalized terms used herein, but not defined herein, shall have the meanings subscribed to
such terms as set forth in the Forbearance Agreement.

     The captions used herein are for references only and shall not be deemed a part of this Note.
If any of the terms or provisions of this Note shall be deemed unenforceable, the enforceability of
the remaining terms and provisions shall not be affected. This Note shall be governed by and
construed in accordance with the law of the State of Ohio.

[SIGNATURE PAGE FOLLOWS]

4

 

     IN WITNESS WHEREOF, this Note is effective as of the date first appearing above
notwithstanding the date it is actually executed.

	 	 	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 	 	 
	 	 	Each Borrower listed on Schedule 1 attached hereto:
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alexander Gordon Jardin
 

	 	 
	 	 	Name: Alexander Gordon Jardin

Title: Chief Executive Officer, as an authorized officer of,

and on behalf of, each such Borrower listed on Schedule 1

attached hereto

THE OBLIGATIONS OF THE BORROWERS UNDER THIS SECOND AMENDED AND RESTATED PROMISSORY NOTE ARE
GUARANTEED BY FRANKLIN CREDIT MANAGEMENT CORPORATION PURSUANT TO A GUARANTY DATED DECEMBER 28, 2007
IN FAVOR OF THE HUNTINGTON NATIONAL BANK.

REAFFIRMATION AND CONSENT OF GUARANTOR

     The undersigned (“Guarantor”), being a guarantor of the indebtedness of Borrowers party to a
certain Forbearance Agreement and Amendment to Credit Agreements, dated as of December 28, 2007, by
and among Guarantor, Borrowers, and The Huntington National Bank, successor by merger to Sky Bank
(“Bank”), pursuant to one or more certain guaranty agreements in favor of Bank, hereby (i)
consents and agrees to be bound by the terms, conditions and execution of the above Second Amended
and Restated Promissory Note, (ii) reaffirms each warranty, representation, covenant and agreement
made by such Guarantor in one or more guaranty agreements executed and delivered to Bank, and (iii)
agrees that such Guarantor’s rights and obligations shall be continuing as provided in each such
guaranty agreements and that said guaranty agreements shall remain as written originally and
continue in full force and effect in all respects.

	 	 	 	 	 	 	 
	 	 	FRANKLIN CREDIT MANAGEMENT CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Thomas J. Axon
 

Thomas J. Axon
	 	 
	 

	 	Title:
	 	President	 	 

Signature Page to Second Amended and Restated Promissory Note (D Note)

 

 

					
	 
	 	SCHEDULE 1
	 	Franklin Subsidiaries

FCMC 2000 B CORP.

FCMC 2000 C CORP.

FCMC 2000 D CORP.

FCMC 2001 A CORP.

FCMC 2001 B CORP

FCMC 2001 C CORP.

FCMC 2001 D CORP.

FCMC 2001 E CORP.

FCMC 2001 F CORP.

FCMC 2002 A CORP.

FCMC 2002 B CORP.

FCMC 2002 C CORP.

FCMC 2002 D CORP.

FCMC 2002 E CORP.

FCMC 2002 F CORP.

FCMC 2002 G CORP.

FCMC 2002 H CORP.

FCMC 2003 A CORP.

FCMC 2003 B CORP.

FCMC 2003 C CORP.

FCMC 2003 D CORP.

FCMC 2003 E CORP.

FCMC 2003 F CORP.

FCMC 2003 G CORP.

FCMC 2003 H CORP.

FCMC 2003 I CORP.

FCMC 2003 J CORP.

FCMC 2003 K CORP.

FCMC 2004 A CORP

FCMC 2004 B CORP.

FCMC 2004 C CORP.

FCMC 2004 D CORP.

FCMC 2004 E CORP.

FCMC 2004 F CORP.

FCMC 2004 G CORP.

FCMC 2004 H CORP.

FCMC 2004 I CORP.

FCMC 2004 J CORP.

FCMC 2004 K CORP.

FCMC 2004 L CORP.

FCMC 2004 M CORP.

FCMC 2005 A CORP.

FCMC 2005 B CORP.

FCMC 2005 C CORP.

FCMC 2005 D CORP.

FCMC 2005 E CORP.

1

 

					
	 
	 	SCHEDULE 1
	 	Franklin Subsidiaries

FCMC 2005 F CORP.

FCMC 2005 G CORP.

FCMC 2005 H CORP.

FCMC 2005 I CORP.

FCMC B-ONE 2004 A CORP.

FCMC B-ONE 2004 B CORP.

FCMC B-ONE 2004 C CORP.

FCMC B-ONE 2004 D CORP.

FCMC B-ONE 2004 E CORP.

FCMC B-ONE 2004 F CORP.

FLOW 2000A CORP.

FLOW 2000B CORP.

FLOW 2000C CORP.

FLOW 2000D CORP.

FLOW 2000E CORP.

FLOW 2000F CORP.

FLOW 2001 A CORP.

FLOW 2001 B CORPORATION

FLOW 2001 C CORPORATION

FLOW 2001 D CORP

FLOW 2001 E CORPORATION

FLOW 2001 F CORPORATION

FLOW 2001 G CORPORATION

FLOW 2001 H CORP.

FLOW 2001 I CORP.

FLOW 2001 J CORP.

FLOW 2001 K CORP

FLOW 2001 L CORP.

FLOW 2002 A CORP.

FLOW 2002 B CORP.

FLOW 2002 C CORP.

FLOW 2002 D CORP.

FLOW 2002 E CORP.

FLOW 2002 F CORP.

FLOW 2002 G CORP.

FLOW 2002 H CORP.

FLOW 2002 I CORP.

FLOW 2002 J CORP.

FLOW 2002 K CORP.

FLOW 2002 L CORP.

FLOW 2003 A CORP.

FLOW 2003 B CORP.

FLOW 2003 C CORP.

FLOW 2003 D CORP.

FLOW 2003 E CORP.

FLOW 2003 F CORP.

2

 

					
	 
	 	SCHEDULE 1
	 	Franklin Subsidiaries

FLOW 2003 G CORP.

FLOW 2003 H CORP.

FLOW 2003 I CORP.

FLOW 2003 J CORP.

FLOW 2003 K CORP.

FLOW 2003 L CORP.

FLOW 2003 M CORP.

FLOW 2004 A CORP.

FLOW 2004 B CORP.

FLOW 2004 C CORP.

FLOW 2004 D CORP.

FLOW 2004 E CORP.

FLOW 2004 F CORP.

FLOW 2004 G CORP.

FLOW 2004 H CORP.

FLOW 2004 I CORP.

FLOW 2005 A CORP.

FLOW 2005 B CORP.

FLOW 2005 C CORP.

FLOW 2005 D CORP.

FLOW 2005 E CORP.

FLOW 2005 F CORP

FLOW 2005 G CORP

FLOW 2005 H CORP

FLOW 2005 I CORP

FLOW 2005 J CORP

FLOW 99-70 CORP.

FLOW 99-76 CORP.

FLOW 99-88 CORP.

FLOW 99-92 CORP.

CAL SECOND 49 CORPORATION

CAPE 77 CORP.

COAST 56 CORPORATION

COAST 62 CORPORATION

EMERGE 64 CORPORATION

JACKSON UNION 28 CORPORATION

MORGAN 85 CORP.

PANCAL 93 CORP.

PARK 86 CORP.

PARK 94 CORP.

SHELTON 46 CORPORATION

NEW HAVEN 40 CORPORATION

FIRSTGOLD 69 CORP.

ACCU 95 CORP.

ACCU 99 CORP.

ACREDIT 75 CORP.

3

 

					
	 
	 	SCHEDULE 1
	 	Franklin Subsidiaries

ARK 38 CORPORATION

BEACH FUNDING CORP.

BRANFORD 55 CORPORATION

CAPT 47 CORPORATION

CENTURY 78 CORP.

COAST 74 CORP.

COAST 96 CORP.

DAPT 51 CORPORATION

EMGOLD 67 CORP.

EMOD 65 CORP.

EMSEC 66 CORP.

ERICSSON ASSOCIATES INC.

FIRSTCO 80 CORP.

FORT GRANITE 44 CORPORATION

FREE 73 CORP.

FREE 81 CORP.

GARFIELD 48 CORPORATION

GREEN 89 CORP.

GREENWICH FIRST CORPORATION

GREENWICH FUNDING CORPORATION

GREENWICH MANAGEMENT CORPORATION

HARRISON FINANCIAL CORPORATION

HOME FED 57 CORPORATION

IVY CITY 72 CORP.

JERSEY 45 CORPORATION

KEARNY 39 CORPORATION

KEARNY 61 CORPORATION

MADISON 54 CORPORATION

MASS FED 29 CORPORATION

MODGOLD 68 CORP.

NEW HAVEN 53 CORPORATION

NEW HAVEN 63 CORPORATION

NORTH FORK 41 CORPORATION

NY APT. 33 CORPORATION

PAN CAL 98 CORP.

PANCAL 82 CORP.

PARK 97 CORP.

PENN 100B CORP.

PENN 100 CORP.

POINT 91 CORP.

RAPID POINT 60 CORPORATION

ST. PETE 43 CORPORATION

TAMPA 79 CORP.

VANTAGE 90 CORP.

WELL 84 CORP.

WFB 83 CORP.

4

 

					
	 
	 	SCHEDULE 1
	 	Franklin Subsidiaries

STATES 87 CORP.

FCMC 2005 J CORP.

FCMC 2005 K CORP.

FCMC 2005 L CORP.

FCMC 2005 M CORP.

FCMC 2005 N CORP.

FCMC 2005 O CORP.

FCMC 2005 P CORP.

FCMC 2005 Q CORP.

FCMC 2005 R CORP.

FCMC 2005 S CORP.

FCMC 2006 A CORP.

FCMC 2006 B CORP.

FCMC 2006 C CORP.

FCMC 2006 D CORP.

FCMC 2006 E CORP.

FCMC 2006 F CORP.

FCMC 2006 G CORP.

FCMC 2006 H CORP.

FCMC 2006 I CORP.

FCMC 2006 J CORP.

FCMC 2006 K CORP.

FCMC 2006 L CORP.

FCMC 2006 M CORP.

FCMC 2006 N CORP.

FCMC 2006 O CORP.

FCMC 2006 P CORP.

FCMC 2006 Q CORP.

FCMC 2006 R CORP.

FCMC 2006 S CORP.

FCMC 2006 T CORP.

FCMC 2006 U CORP.

FCMC 2006 V CORP.

FCMC 2006 W CORP.

FCMC 2006 X CORP.

FCMC 2006 Y CORP.

FCMC 2006 Z CORP.

FCMC 2007 A CORP.

FCMC 2007 B CORP.

FCMC 2007 C CORP.

FCMC 2007 D CORP.

FCMC 2007 E CORP.

FCMC 2007 F CORP.

FCMC 2007 G CORP.

FCMC 2007 H CORP.

FCMC 2007 H CORP.

5

 

					
	 
	 	SCHEDULE 1
	 	Franklin Subsidiaries

FCMC 2007 I CORP.

FCMC 2007 J CORP.

FCMC 2007 K CORP.

FCMC 2007 L CORP.

FCMC 2007 M CORP.

FCMC 2007 N CORP

FCMC 2007 O CORP.

FCMC 2007 P CORP.

FCMC 2007 Q CORP.

FCMC 2007 R CORP.

FCMC 2007 S CORP.

FCMC 2007 T CORP.

FCMC 2007 U CORP

FCMC 2007 V CORP.

FCMC 2007 W CORP.

FCMC 2007 X CORP.

FCMC 2007 Y CORP.

FCMC 2007 Z CORP

FCMC 2007 AA CORP.

FCMC 2007 AB CORP.

FCMC 2007 AC CORP.

FLOW 2006 A CORP.

FLOW 2006 B CORP.

FLOW 2006 C CORP.

FLOW 2006 D CORP.

FLOW 2006 E CORP.

FLOW 2006 F CORP.

FLOW 2006 G CORP.

FLOW 2006 H CORP.

FLOW 2007 A CORP.

FLOW 2007 B CORP

FLOW 2007 C CORP.

FLOW 2007 D CORP.

RONTEX CORPORATION

SIX HARRISON CORPORATION

HARRISON FIRST CORPORATION

HARRISON FINANCIAL ASSOCIATES, INC.

HARRISON FUNDING CORPORATION

FCMC Corporate Refinance

FLOW PURCHASE 98 CORPORATION

TRIBECA LENDING CORP.

RONTEX 1617 CORPORATION

JUNIPER CORP.

NEWPORT 50 CORPORATION

FORT 100 CORPORATION

6

 

					
	 
	 	SCHEDULE 1
	 	Franklin Subsidiaries

FORT 100 B CORPORATION

SIX HARRISON CORPORATION

HUDSON MANAGEMENT CORPORATION

TRIBECA FUNDING CORPORATION

EMGOLD 57 CORP.

ISLAND 52 CORPORATION

NEW HAVEN 58 CORPORATION

NORWICH 42 CORPORATION

FLOW 2007 E CORP.

7EX-10.57

Exhibit 10.57

Execution Copy

JOINDER AND AMENDMENT NO. 1 TO

TRIBECA FORBEARANCE AGREEMENT 

     THIS JOINDER AND AMENDMENT NO. 1 TO TRIBECA FORBEARANCE AGREEMENT (this “Amendment”)
is entered into at Columbus, Ohio, as of March 31, 2008 (the “Amendment Effective Date”),
by and among the BORROWERS listed on Schedule 1 hereto (each, a “Borrower” and
collectively, the “Borrowers”), including without limitation, TRIBECA LENDING CORP., a New
York corporation (“Tribeca”), FRANKLIN CREDIT MANAGEMENT CORPORATION, a Delaware
corporation, in its capacity as Guarantor hereunder and in its capacity as servicer (“FCMC”
or “Guarantor”), and THE HUNTINGTON NATIONAL BANK (“Huntington” or
“Lender”). This Amendment amends and modifies a certain Tribeca Forbearance Agreement and
Amendment to Credit Agreements dated as of December 28, 2007 (as amended, supplemented, restated or
otherwise modified from time to time prior to the date hereof, the “Forbearance Agreement”)
by and among the Borrowers (other than the Additional Subsidiaries), Tribeca, FCMC and Lender. All
capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in
the Forbearance Agreement.

RECITALS:

     A. As of December 28, 2007, the Borrowers (other than the Additional Subsidiaries), Tribeca,
FCMC and Lender executed the Forbearance Agreement amending and restating the terms of certain
extensions of credit to the Borrowers and Tribeca, as applicable; and

     B. As of December 28, 2007, the Borrowers (other than the Additional Subsidiaries) executed
and delivered to Lender, inter alia, an Amended and Restated Promissory Note (A Note) in the
original principal sum of $400,000,000 (the “ Existing Tranche A Note”); and

     C. As of December 28, 2007, the Borrowers (other than the Additional Subsidiaries) executed
and delivered to Lender, inter alia, an Amended and Restated Promissory Note (B-1 Note) in the
original principal sum of $22,783,296.75 (the “Existing Tranche B-1 Note”); and

     D. As of December 28, 2007, the Borrowers (other than the Additional Subsidiaries) executed
and delivered to Lender, inter alia, an Amended and Restated Promissory Note (B-2 Note) in the
original principal sum of $22,783,296.75 (the “Existing Tranche B-2 Note”); and

     E. As of December 28, 2007, the Borrowers (other than the Additional Subsidiaries) executed
and delivered to Lender, inter alia, an Amended and Restated Promissory Note (B-3 Note) in the
original principal sum of $22,783,296.75 (the “Existing Tranche B-3 Note”); and

     F. As of December 28, 2007, the Borrowers (other than the Additional Subsidiaries) executed
and delivered to Lender, inter alia, an Amended and Restated Promissory Note (B-4 Note) in the
original principal sum of $22,783,296.75 (the “Existing Tranche B-4 Note”); and together

 

 

with the Existing Tranche A Note, the Existing Tranche B-1 Note, the Existing Tranche B-2 Note, and
the Existing Tranche B-3 Note, collectively, the “Notes”; and

     G. Lender has required all Subsidiaries of Tribeca to be parties to the Forbearance Agreement,
the Notes and the other Loan Documents, and Tribeca XVI 2004 Corp and Tribeca LI 2005 Corp. (the
“Additional Subsidiaries” and individually, an “Additional Subsidiary”) are each a
Subsidiary of Tribeca and are not parties signatory to the Forbearance Agreement, the Notes or
other Loan Documents previously and desire to join as Borrowers to the Forbearance Agreement, the
Notes and the other Loan Documents; and

     H. Tribeca, FCMC and the applicable Borrowers have failed to comply with certain provisions of
Section 11, “Certain Post-Closing Deliverables,” of the Forbearance Agreement by failing to
deliver certain financial statements, schedules, documents and other items as required by the
Forbearance Agreement, and Section 12(d), “Interest Coverage Ratios,” of the Forbearance
Agreement for the monthly period ending January 31, 2008, by failing to maintain a minimum ratio of
Adjusted EBITDA to Interest Expense, as required by the Forbearance Agreement (collectively, the
“Identified Forbearance Defaults”), and each of the Acknowledged Defaults are continuing;
and

     I. Tribeca, FCMC and the Borrowers have requested that Lender extend additional credit to
Tribeca and the other Borrowers for the purpose of paying in full a certain loan (the “BOS
Loan”) made by BOS (USA) Inc. to Tribeca LI 2005 Corp. pursuant to the terms of a certain
Master Credit and Security Agreement among BOS (USA) Inc., Tribeca and Tribeca LI 2005 Corp. dated
as of March 24, 2006, and the promissory notes, guaranties and other agreements, instruments and
documents executed in connection therewith (collectively, the “BOS Loan Documents”), and
Lender is willing to so upon the terms and subject to the conditions contained herein provided that
BOS (USA) Inc. concurrently purchase from Lender a participation interest in the Tranche A Advances
in an amount not less than the outstanding balance of the BOS Loan as of the Effective Date,
subject to a participation agreement satisfactory to Lender in all respects; and

     J. Tribeca, FCMC and the Borrowers have requested that Lender (i) join the Additional
Subsidiaries as Borrowers and parties to the Forbearance Agreement and the other Loan Documents,
(ii) amend and modify certain terms and covenants in the Forbearance Agreement and (iii) extend the
time periods or modify the requirements for Tribeca, FCMC and the Borrowers to satisfy certain
post-closing deliverables composing the Identified Forbearance Defaults, and Lender is willing to
do so upon the terms and subject to the conditions contained herein.

     NOW, THEREFORE, in consideration of the mutual covenants, agreements and promises contained
herein, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound, the parties hereto for themselves and their successors and assigns do hereby agree,
represent and warrant as follows:

     1. Joinder. Each Additional Subsidiary hereby acknowledges, agrees and confirms that,
by its execution of this Amendment, such Additional Subsidiary will be a Borrower under the
Forbearance Agreement, each Note and each other Loan Document and shall have all of the

- 2 -

 

obligations of a Borrower thereunder as if it had executed the Forbearance Agreement, each
Note and each other Loan Document. Each Additional Subsidiary hereby ratifies, as of the date
hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the
Forbearance Agreement, each Note and each other Loan Document, including without limitation (a) all
of the representations and warranties of the Borrowers set forth in Section 9 of the Forbearance
Agreement, and (b) all of the covenants set forth in Section 12 of the Forbearance Agreement.

     2. Definitions Added. The following defined terms are hereby added to Section 2,
“Certain Defined Terms,” of the Forbearance Agreement in their correct alphabetical order
and shall recite as follows:

“Amendment No. 1” shall mean a certain Joinder and Amendment No. 1 to
Tribeca Forbearance Agreement dated as of March 31, 2008.

“Reserves” shall mean such reserves as Lender reasonably deems
appropriate to establish in such amounts, and with respect to such matters,
as Lender in its good faith discretion shall deem necessary or appropriate,
including without limitation, reserves with respect to (i) sums that FCMC,
Tribeca or any Borrower is required to pay pursuant to its contractual
obligations (such as taxes, assessments, insurance premiums, or, in the case
of leased assets, rents or other amounts payable under such leases), (ii)
Liens or trusts for ad valorem, excise, sales, or other taxes where given
priority under applicable law in and to an item of Collateral, and (iii) up
to $5,000,000 at any time as a reserve for the payment of any Required
Payment or interest under any Advance, or any fees or expenses owing or
anticipated to be owing to Lender under the terms of any Loan Document.

     3. Definitions Amended. The definitions of “Tranche A,” “Tranche B,”
“Tranche B-1,” “Tranche B-2,” “Tranche B-3,” “Tranche B-4,”
“Tranche A Commitment,” “Tranche B Commitment,” “Minimum Tranche A Payment
Amount” and “Minimum Tranche B Payment Amount” set forth in the Recitals to the
Forbearance Agreement or Section 2, “Certain Defined Terms,” of the Forbearance Agreement
are hereby amended to recite as follows:

“Tranche A” means a term loan facility made by Lender to the
Borrowers in the original principal amount of $400,000,000, as reduced by
certain payments made in respect thereof between the Forbearance Effective
Date and March 31, 2008, and as increased to $410,859,753.55, as of March 31,
2008.

“Tranche B” means a term loan facility made by Lender to the
Borrowers in the original principal amount of $91,133,187, as reduced by
certain payments made in respect thereof between the Forbearance Effective
Date and March 31, 2008, and as increased to $98,774,361.20, as of March 31,
2008, divided into four (4) sub-tranches, with the first such sub-tranche
being in the original amount of $22,783,296.75, as increased to
$24,131,090.30

- 3 -

 

(“Tranche B-1”) as of March 31, 2008, and the second, third and
fourth sub-tranches, each being in the original amount of $22,783,296.75 and
as increased to $24,881,090.30, each referred to as “Tranche B-2,”
“Tranche B-3” and “Tranche B-4”.

“Tranche A Commitment” shall mean the commitment of Lender to make a
Tranche A Advance in the original aggregate amount of $400,000,000, as
increased to $410,859,753.55.

“Tranche B Commitment” shall mean the commitment of Lender to make a
Tranche B Advance in the original aggregate amount of $91,133,187, as
increased to $98,774,361.20.

“Minimum Tranche A Payment Amount” shall mean (i) with respect to any
Payment Date other than the Tranche A Termination Date, $3,900,000, and (ii)
with respect to the Tranche A Termination Date, the amount necessary to repay
the aggregate outstanding unpaid principal balance of the Tranche A Advances
in full.

“Minimum Tranche B Payment Amount” shall mean (i) with respect to any
Payment Date other than the Tranche B Termination Date, $275,000, which
amount will be allocated first to Tranche B-1 Advances, second to Tranche B-2
Advances, third to Tranche B-3 Advances, and fourth to Tranche B-4 Advances
(each in the inverse order of maturing payments) and (ii) with respect to the
Tranche B Termination Date, the amount necessary to repay the aggregate
outstanding unpaid principal balance of the Tranche B Advances in full.

     4. Amendment to Section 3 (b). Paragraph (b) of Section 3, “Amended and Restated
Advances” of the Forbearance Agreement is hereby amended to recite in its entirety as follows:

     (b) Tranche B Advances. Lender agrees, on the Forbearance
Effective Date, to convert a portion of the outstanding principal amount of
Lender’s Commercial Loans equal to Lender’s Tranche B Commitment into four
term loans to the Borrowers, each in an amount of $22,783,296.75, and
increase such amounts as of March 31, 2008 as set forth below (each aggregate
amount so converted, a “Tranche B Advance” and, collectively, the
“Tranche B Advances”; and each such proportionate portion thereof a
“Tranche B-1 Advance” in the amount of $24,131,090.30 as of March 31,
2008, and “Tranche B-2 Advance”, “Tranche B-3 Advance”, and
“Tranche B-4 Advance” each in the amount of $24,881,090.30 as of
March 31, 2008, and collectively, the “Tranche B-1 Advances”,
“Tranche B-2 Advances”, “Tranche B-3 Advances”, and
“Tranche B-4 Advances”). Any portion of the Tranche B Advances that
is subsequently repaid or prepaid may not be reborrowed.

- 4 -

 

     5. Amendments to Waterfall. Paragraph (d), “Collateral Collection,” of
Section 5, “Payments of Interest and Principal on the Advances,” of the Forbearance
Agreement is hereby amended to recite in its entirety as follows:

     (d) Collateral Collection. Without in any way limiting the
obligations of the Borrowers to make the payments of principal and interest
that are required to be made in respect of the Advances pursuant to Sections
5(a) and 5(b) (with respect to any Payment Date, the “Required
Payments”), the Borrowers hereby authorize and direct Lender, on each
Payment Date, to apply all Collections received from and after the
immediately preceding Payment Date (or, in the case of the first Payment
Date, from and after the Forbearance Effective Date) to but excluding such
Payment Date (the aggregate amount of such Collections, minus any Reserves
established during such period, being the “Applicable Collections
Amount” in respect of such Payment Date) in the following order of
priority:

first, to the payment of interest on the Tranche A Advances as
calculated for such Payment Date;

second, to the payment of interest on the Tranche B Advances as
calculated for such Payment Date;

third, to the payment of amounts constituting additional periodic
payments of interest required under any Interest Rate Hedge Agreement to
Lender in full;

fourth, to pay the Minimum Tranche A Payment Amount for such Payment
Date;

fifth, to pay the Minimum Tranche B Payment Amount for such Payment
Date;

sixth, to prepay the outstanding principal amount of the Tranche A
Advances until the same are paid in full, with such prepayments being applied
in the inverse order of maturity to the remaining Minimum Tranche A Payment
Amounts;

seventh, to prepay the outstanding principal amount of the Tranche B
Advances until the same are paid in full, with such prepayments being applied
in the order set forth in the definition of Minimum Tranche B Payment
Amounts;

eighth, to repay any Obligations (other than payments constituting
additional period payments of interest payable under item “third” above)
under any Interest Rate Hedge Agreement to Lender in full;

- 5 -

 

ninth, [Reserved]; and

tenth, to pay Franklin Advances until paid in full and then to
Guarantor for the benefit of the Borrowers.

Furthermore, notwithstanding the foregoing applications of Collections, all
Collections arising from the sale, lease or other disposition of REO Property
purchased or acquired directly or as a result of an intercompany advance from
FCMC or any subsidiary thereof to any Borrower with any “Tranche D Advance”
(as defined in the Franklin Forbearance Agreement) shall be used first to
repay the principal of the revolving credit portion of any such Tranche D
Advance until the same is paid in full and then applied pursuant to clauses
first through tenth of this Section 5(d).

     6. Amendments to Financial Reporting. Paragraph (c) of Section 10, “Financial
Statements,” of the Forbearance Agreement is hereby amended to recite as follows:

     (c)(i) as soon as available and in any event within 30 days after the
end of each monthly fiscal period of each fiscal year of Guarantor, (A) the
consolidated balance sheets of Guarantor and its consolidated Subsidiaries as
at the end of such period and (B) the related unaudited consolidated
statements of income and retained earnings for Guarantor and its consolidated
Subsidiaries for such period and the portion of the fiscal year through the
end of such period, setting forth in each case in comparative form the
figures for the previous year, and (C) accompanied by a certificate of the
chief financial officer of Guarantor, which certificate shall state that said
consolidated financial statements fairly present the consolidated financial
condition and results of operations of Guarantor and its Subsidiaries in
accordance with GAAP, consistently applied, as at the end of, and for, such
period (subject to normal year-end audit adjustments) and shall contain a
calculation of the financial covenants contained in Section 12 (d);

     (ii) as soon as available and in any event within 20 days after the end
of each monthly fiscal period of each fiscal year, a thirteen (13)
consecutive week statement of Guarantor and its Subsidiaries projecting
prospective cash receipts and cash payments, disbursements and advances for
the 13 week consecutive period beginning on the first day after such
month-end; and

     (iii) as soon as available and in any event within 20 days after the
end of each monthly fiscal period of each fiscal year of Guarantor, a
schedule of REO Properties in form satisfactory to Lender.

     7. Post Closing Items. Section 11, “Certain Post-Closing Deliverables,” of
the Forbearance Agreement is hereby amended to recite in its entirety as follows:

11. Certain Post-Closing Deliverables.

- 6 -

 

     Tribeca, FCMC and the Borrowers shall comply with each requirement set
forth on Schedule 11 to Amendment No. 1 within the time period
specified therein (or such later date as Lender may agree in writing). Each
Borrower, Tribeca and FCMC agree to deliver to Lender, on a post-closing
basis, the items described in Schedule 11 attached to Amendment No.
1, each in form and content satisfactory to Lender (the “Post-Closing
Items”). Each Borrower, Tribeca and FCMC agree to deliver the
Post-Closing Items to Lender no later than the time periods specified in
Schedule 11 (or such later date as Lender may agree in writing). The
failure to deliver any Post-Closing Item by the required date shall
constitute a Forbearance Default. Upon Lender’s demand therefor, each
Borrower, Tribeca and FCMC will indemnify, protect, defend and hold harmless
Lender for and against all losses, damages, and expenses incurred by Lender
arising from or relating to FCMC’s, Tribeca’s or any Borrower’s failure to
deliver any Post-Closing Item in accordance with Amendment No. 1.

     8. Amendment to Financial Covenants. The first sentence of Paragraph (d),
“Interest Coverage Ratios,” of Section 12, “Covenants,” of the Forbearance
Agreement is hereby amended to recite as follows:

     (d) Interest Coverage Ratios. Until such time as all Tranche A
Advances and Tranche B Advances are indefeasibly paid in full, Guarantor and
each Subsidiary, on a consolidated basis, shall maintain for each quarterly
period (i) a ratio of Adjusted EBITDA to Adjusted Interest Expense of not
less than 1.25 to 1.00, and (ii) a ratio of Adjusted EBITDA to Interest
Expense of not less than 1.05 to 1.00, with each such ratio being determined
(A) beginning March 31, 2008, and continuing as of the end of each quarter
through and including September 30, 2008, as of the end of each such quarter
for the period from January 1, 2008, through the end of such quarter of
determination (on a year-to-date basis), and (B) beginning December 31, 2008,
and continuing as of the end of each quarter thereafter, for the most
recently-ended twelve consecutive (12) month period ending on such date.

     9. Amendment to Interest Rate Hedge Agreement. Paragraph (h), “Interest Rate
Hedge Agreement,” of Section 12, “Covenants,” of the Forbearance Agreement is hereby
amended to recite as follows:

     (h) Interest Rate Hedge Agreement. At all times after April 30,
2008, the Borrowers and Guarantor, together with all Interest Rate Hedge
Agreements entered into by FCMC with Lender, shall at all times use their
best efforts to maintain in effect one or more Interest Rate Hedge Agreements
with respect to the Advances, in an aggregate notional principal amount of
not less than $1,000,000,000, in the aggregate, which Interest Rate Hedge
Agreements shall have the effect of establishing a maximum interest

- 7 -

 

rate to be agreed by Lender and Guarantor with respect to such notional
principal amount, each such Interest Rate Hedge Agreement to be in form and
substance satisfactory to the Lender and with a term to be agreed by Lender
and Guarantor.

     10. Amendment to Limitation on Liens. Paragraph (j), “Limitation on Liens,”
of Section 12, “Covenants,” of the Forbearance Agreement is hereby amended to recite as
follows:

(j) Limitation on Liens. Neither the Company nor any Borrower
shall, nor will it permit or allow others to, create, incur or permit to
exist any Lien, security interest or claim on or to any of its Property,
except for (i) Liens (not otherwise permitted hereunder) that are created in
connection with the purchase of fixed assets and equipment necessary in the
ordinary course of such Borrower’s business, subject to the provisions of the
Loan Documents, and (ii) Liens on the Collateral created pursuant to any Loan
Document.

     11. Amendment to REO Properties. Paragraph (k), “REO Properties,” of
Section 12, “Covenants,” of the Forbearance Agreement is hereby amended to recite as
follows:

(k) REO Properties. Not later than June 30, 2008, Guarantor, the
applicable Borrower or such other Subsidiary having any REO Property shall
grant to Lender a first Lien Mortgage on such Person’s REO Properties to
secure the Advances pursuant to Loan Documents and deliver such other closing
requirements or documents as are satisfactory to Lender. In addition, at all
times on and after March 31, 2008, upon any acquisition of each REO Property,
each Borrower will assign the rights to bid on or purchase such REO Property
so that all REO Properties will be owned by a designated Borrower or other
Subsidiary satisfactory to Lender and shall provide to Lender a first and
exclusive Lien on the stock of such Subsidiary, and a negative pledge on all
of the assets of such Subsidiary, except for Liens in favor of Lender.

     12. Amendment to Limitation on Sale of Assets. Paragraph (q), “Limitation on
Sale of Assets,” of Section 12, “Covenants,” of the Forbearance Agreement is hereby
amended to recite as follows:

(q) Limitation on Sale of Assets. Neither Guarantor nor any
Borrower shall convey, sell, lease, assign, transfer or otherwise dispose of
(collectively, “Transfer”), all or any material portion of its
property, business or assets (including, without limitation, receivables and
leasehold interests) whether now owned or hereafter acquired or allow any
Subsidiary to Transfer any material portion or all of its assets to any
Person other than a “putback” to sellers of Mortgages Loans, the proceeds of
which are used to repay Advances to Lender.

- 8 -

 

     13. Waiver of Identified Forbearance Defaults. Lender hereby waives the Identified
Forbearance Defaults for the period through and including March 31, 2008.

     14. Consent to Certain Originations. Pursuant to the first sentence of Section 12
(g) of the Forbearance Agreement, Lender hereby consents to FCMC, Tribeca or any Borrower
originating any Mortgage Loan in order to refinance any existing Mortgage Loan in which FCMC or
any Borrower has an interest which Lender has approved for purchase and subsequent sale in the
secondary market or which Lender determines are qualified for purchase by Fannie Mae (formerly
known as the Federal National Mortgage Association) or Freddie Mac (formerly known as the Federal
Home Loan Mortgage Corporation), or any successor of either of the foregoing; provided that the
proceeds of any such refinancing or Mortgage Loan are paid to Lender for application pursuant to
Section 5 (d) of the Forbearance Agreement.

     15. Replacement of Schedule 1. Schedule 1 to the Forbearance Agreement is hereby
amended and replaced with the Schedule 1 attached to this Amendment.

     16. Addition of Schedule 11. Schedule 11 to the Forbearance Agreement is hereby
attached to this Amendment as Schedule 11.

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

     (a) Lender shall have received execution and delivery of, by all parties signatory thereto,
originals, or completion as the case may be, to the satisfaction of Lender and its counsel,
containing such information requested by Lender and its counsel and reflecting the absence of any
material fact or issues and in all respect satisfactory to Lender, each of the following Loan
Documents:

	 	(i)	 	Three duly executed copies of this Amendment;
	 
	 	(ii)	 	Duly executed Amended and Restated Promissory Notes for each of

A. Tranche A

B. Tranche B-1

C. Tranche B-2

D. Tranche B-3

E. Tranche B-4

	 	(iii)	 	Joinders to Security Agreement by Additional Subsidiaries;
	 
	 	(iv)	 	Resolutions of the Additional Subsidiaries;
	 
	 	(v)	 	Concurrence of M & I;

- 9 -

 

     (vi) Evidence of Termination of the BOS Agreement and each other BOS Loan Document,
including without limitation the Intercreditor Agreement, Control Agreements and any other
agency agreements;

     (vii) Payoff Letter from BOS (USA) Inc., inter alia, containing a Schedule of filed
UCC financing statements and authorizing the termination of each UCC financing statement
filed against any Borrower, and terminating the Custody Agreement with U.S. Bank National
Association;

     (viii) Assignment and Assumption of Custodial Agreement dated March 24, 2006, by and
among Tribeca, Tribeca LI 2005 Corp., U.S. Bank National Association and BOS (USA) Inc. in
respect of Mortgage Notes and other collateral currently held for BOS (USA) Inc.;

     (ix) Original Trust Receipt for Mortgage Notes and other collateral currently held for
BOS (USA) Inc.;

     (x) Amended and Restated Participation Agreement with M & I Marshall & Ilsley Bank;

     (xi) Amended and Restated Participation Agreement with Huntington Finance LLC;

     (xii) Participation Agreement with BOS (USA) Inc.; and

     (xiii) Opinion of Counsel.

     (b) Lender shall have received a fee in respect of this Amendment in the amount of
$10,000.00; and

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

     18. Representations and Warranties. Each Borrower and FCMC represent and warrant to
Lender as follows: except in respect of the Acknowledged Defaults, (a) after giving effect to this
Amendment, each representation and warranty made by or on behalf of such Borrower and FCMC in the
Forbearance Agreement and in any other Loan Document is true and correct in all respects on and as
of the date hereof as though made on and as of such date, except to the extent that any such
representation or warranty expressly relates solely to a date prior hereto; (b) the execution,
delivery and performance by such Borrower and FCMC of this Amendment and each other Loan Document
have been duly authorized by all requisite corporate or organizational action on the part of such
Borrower and FCMC and will not violate any Constituent Document (as defined below) of such Borrower
and FCMC; (c) this Amendment has been duly executed and delivered by such Borrower and FCMC, and
each of this Amendment, the Forbearance Agreement and each other Loan Document as amended hereby
constitutes the legal, valid and binding obligation of such Borrower and FCMC, enforceable against
such Borrower and FCMC in accordance with the terms thereof; and (d) no event has occurred and is
continuing, and no condition exists, which would constitute a Forbearance Default.
“Constituent Document” means with respect to any entity, each of (i) the articles or
certificate of incorporation or organization or partnership agreement (or equivalent organizational
documents) of such entity, (ii) the regulations, by-laws or operating agreement (or

- 10 -

 

equivalent governing documents) of such entity and (iii) any document setting forth the
designation, amount or relative rights, limitations and preferences of any class or series of
capital stock, warrants, options or other equity interests.

     19. Ratification and Reaffirmation. Each Borrower and FCMC agree (i) that all the
obligations, indebtedness and liabilities of such Borrower and FCMC to Lender under the Forbearance
Agreement are the valid and binding obligations of such Borrower and FCMC respectively; (ii) that
the obligations, indebtedness and liabilities of such Borrower and FCMC evidenced by each Note
executed and delivered by the each Borrower are valid and binding without any present right of
offset, claim, defense or recoupment of any kind and are hereby ratified and confirmed in all
respects; and (iii) that the Liens and security interests granted to Lender as security for all
obligations and liabilities of each Borrower and FCMC under the Forbearance Agreement and the Notes
are valid and binding and are hereby ratified and confirmed in all respects.

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

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

     (a) Tribeca, FCMC and each Borrower, for itself and its respective successors and assigns,
agents, employees, officers and directors, hereby forever waive, relinquish, discharge and release
all defenses and Claims of every kind or nature, whether existing by virtue of state, federal, or
local law, by agreement or otherwise, against (i) Lender, its successors, assigns, directors,
officers, shareholders, agents, employees and attorneys, and (ii) all participants in any
Commercial Loans or Advances, such participants’ successors, assigns, directors, officers,
shareholders, agents, employees and attorneys, (iii) any obligation evidenced by any Credit
Agreement, any promissory note, instrument or other Loan Document in connection therewith, and (iv)
any Collateral, in each instance, which Tribeca, FCMC or any Borrower, may have or may have made at
any time up through and including the date of this Amendment, including without limitation, any
affirmative defenses, counterclaims, setoffs, deductions or recoupments, by Tribeca, FCMC or any
Borrower. “Claims” means all debts, demands, actions, causes of action, suits, dues, sums
of money, accounts,

- 11 -

 

bonds, warranties, covenants, contracts, controversies, promises, agreements or obligations of
any kind, type or description, and any other claim or demand of any nature whatsoever, whether
known or unknown, accrued or unaccrued, disputed or undisputed, liquidated of contingent, in
contract, tort, at law or in equity, which Tribeca, FCMC, each Borrower or any or them ever had,
claimed to have, now has, or shall or may have. The term Claims also includes all causes of
action, liabilities and rights arising under or by virtue of any Credit Agreement, promissory note
or other document or any transaction entered into in connection therewith. Nothing contained in
this Amendment prevents enforcement of this waiver and release.

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

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

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

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

- 12 -

 

     24. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered
shall be an original, and all of which together will constitute one and the same instrument.
Receipt by Lender of a facsimile copy of an executed signature page hereof will constitute receipt
by Lender of an executed counterpart of this Amendment.

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

     26. Further Assurances. FCMC and each Borrower hereby agree to execute and deliver
such additional documents, instruments and agreements reasonably requested by Lender as may be
reasonably necessary or appropriate to effectuate the purposes of this Amendment.

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

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

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

[Signature Pages Follow.]

- 13 -

 

     IN WITNESS WHEREOF, the Borrowers, Tribeca, FCMC and Lender have hereunto set their hands as
of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	EACH BORROWER LISTED ON SCHEDULE 1
ATTACHED HERETO:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alexander Gordon Jardin
 

	 	 
	 	 	Name: Alexander Gordon Jardin	 	 
	 	 	Title: as Chief Executive Officer of, and on
behalf of, each Borrower listed on Schedule 
1 attached hereto.	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices: 101 Hudson St.,
25th Floor	 	 
	 	 	Jersey City, N.J. 07302	 	 
	 	 	Fax: 201-604-4400	 	 
	 	 	Attention: General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Kramer Levin Naftalis & Frankel LLP	 	 
	 	 	1177 Avenue of the Americas	 	 
	 	 	New York, New York 10036	 	 
	 	 	Fax: 212-715-8346	 	 
	 	 	Attention: J. Michael Mayerfeld	 	 
	 
	 	 	 	 	 	 
	 	 	TRIBECA LENDING CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alexander Gordon Jardin
 

	 	 
	 	 	Name: Name: Alexander Gordon Jardin	 	 
	 	 	Title: Chief Executive Officer

Address for Notices: Same as above	 	 
	 
	 	 	 	 	 	 
	 	 	FRANKLIN CREDIT MANAGEMENT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas J. Axon
 

	 	 
	 	 	Name: Thomas J. Axon	 	 
	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices: Same as above	 	 

Signature Page to Joinder and Amendment No. 1 to Tribeca Forbearance Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alan D. Seitz
 

	 	 
	 	 	Name: Alan D. Seitz	 	 
	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	The Huntington National Bank	 	 
	 	 	41 South High Street	 	 
	 	 	Columbus, Ohio 43215	 	 
	 	 	Attn: Special Assets	 	 
	 	 	Fax: (614) 480-3795	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 	 	Porter Wright Morris & Arthur LLP	 	 
	 	 	41 South High Street	 	 
	 	 	Columbus, Ohio 43215	 	 
	 	 	Attn: Jack R. Pigman and Timothy E. Grady	 	 
	 	 	Fax: (614) 227-2100	 	 

Signature Page to Joinder and Amendment No. 1 to Tribeca Forbearance Agreement

 

 

SCHEDULE 1

[See Attached]

 

 

SCHEDULE 1

Tribeca Subsidiaries

TRIBECA LENDING CORP.

TRIBECA L 2005 CORP.

TRIBECA LII 2005 CORP.

TRIBECA LIII 2005 CORP.

TRIBECA LIV 2005 CORP.

TRIBECA LIX 2006 CORP.

TRIBECA LV 2005 CORP.

TRIBECA LVI 2005 CORP.

TRIBECA LVII 2006 CORP.

TRIBECA LVIII 2006 CORP.

TRIBECA LX 2006 CORP.

TRIBECA LXI 2006 CORP.

TRIBECA LXII 2006 CORP.

TRIBECA LXIII 2006 CORP.

TRIBECA LXIV 2006 CORP.

TRIBECA LXIV CORP.

TRIBECA LXIX 2006 CORP.

TRIBECA LXV 2006 CORP.

TRIBECA LXV CORP.

TRIBECA LXVI 2006 CORP.

TRIBECA LXVII 2006 CORP.

TRIBECA LXVIII 2006 CORP.

TRIBECA LXX 2006 CORP.

TRIBECA LXXI 2006 CORP.

TRIBECA LXXII 2006 CORP.

TRIBECA LXXIII 2006 CORP.

TRIBECA LXXIV 2006 CORP.

TRIBECA LXXIX 2007 CORP.

TRIBECA LXXV 2006 CORP.

TRIBECA LXXVI 2006 CORP.

TRIBECA LXXVII 2006 CORP.

TRIBECA LXXVIII 2006 CORP.

TRIBECA LXXX 2007 CORP.

TRIBECA LXXXI 2007 CORP.

TRIBECA LXXXII 2007 CORP.

TRIBECA LXXXIII 2007 CORP.

TRIBECA LXXXIV 2007 CORP.

TRIBECA LXXXIX 2007 CORP.

TRIBECA LXXXV 2007 CORP.

TRIBECA LXXXVI 2007 CORP.

TRIBECA LXXXVII 2007 CORP.

TRIBECA LXXXVIII 2007 CORP.

TRIBECA XC 2007 CORP.

TRIBECA XCI 2007 CORP.

TRIBECA XCII 2007 CORP.

TRIBECA XCIII 2007 CORP.

 1

 

 

SCHEDULE 1

Tribeca Subsidiaries

TRIBECA XCIV 2007 CORP.

TRIBECA XCV 2007 CORP.

TRIBECA XIX 2004 CORP.

TRIBECA XV 2004 CORP.

TRIBECA XVII 2004 CORP.

TRIBECA XVIII 2004 CORP.

TRIBECA XX 2004 CORP.

TRIBECA XXI 2004 CORP.

TRIBECA XXII 2004 CORP.

TRIBECA XXIII 2004 CORP.

TRIBECA XXIV 2004 CORP.

TRIBECA XXIX 2005 CORP.

TRIBECA XXV 2004 CORP.

TRIBECA XXVI 2004 CORP.

TRIBECA XXVII 2004 CORP.

TRIBECA XXVIII 2004 CORP.

TRIBECA XXX 2005 CORP.

TRIBECA XXXI 2005 CORP.

TRIBECA XXXII 2005 CORP.

TRIBECA XXXIII 2005 CORP.

TRIBECA XXXIV 2005 CORP.

TRIBECA XXXIX 2005 CORP.

TRIBECA XXXV 2005 CORP.

TRIBECA XXXVI 2005 CORP.

TRIBECA XXXVII 2005 CORP.

TRIBECA XXXVIII 2005 CORP.

TRIBECA XXXX 2005 CORP.

TRIBECA XXXXI 205 CORP.

TRIBECA XXXXI 2005 CORP.

TRIBECA XXXXII 2005 CORP.

TRIBECA XXXXIII 2005 CORP.

TRIBECA XXXXIV 2005 CORP.

TRIBECA XXXXIX 2005 CORP.

TRIBECA XXXXV 2005 CORP.

TRIBECA XXXXVI 2005 CORP.

TRIBECA XXXXVII 2005 CORP.

TRIBECA XXXXVIII 2005 CORP.

Tribeca XVI 2004 Corp.

Tribeca LI 2005 Corp.

 2

 

 

SCHEDULE 11

	 	 	 	 	 
	 	 	2008 Date Due	 	Tribeca Post-Closing Item
	1.

	 	March 31
	 	For each bank where any deposit account is
maintained, a fully executed deposit account
control agreement for each deposit account of
Guarantor or any Borrower, and if Guarantor and
each Borrower fail to so deliver such control
agreements within such time frame, each such Person
shall close such deposit accounts and establish
replacement accounts at Lender. The following DACA
is pending:

a.  North Fork Bank

	 
	 	 	 	 
	2.

	 	March 31
	 	A thirteen (13) consecutive week statement of
Guarantor and its Subsidiaries projecting
prospective cash receipts and cash payments,
disbursements and advances for the 13 week
consecutive period beginning on the first day after
such month-end.
	 
	 	 	 	 
	3.

	 	March 31
	 	FCMC shall deliver to Lender its financial
statements for the fiscal quarter and year-to-date
period ending September 30, 2007.
	 
	 	 	 	 
	4.

	 	April 30
	 	Guarantor shall have deposited with Lender a copy
of each software program in which Guarantor has an
interest and any data which are necessary to
conduct all loan servicing activities of Guarantor,
except to the extent Guarantor is prohibited by any
effective license agreement from so depositing a
copy. Further if Guarantor is prohibited by any
license agreement from so depositing a copy,
Guarantor shall use its best efforts to secure a
licensor consent to the pledge of such software in
form satisfactory to Lender. Licensor Consents to
be obtained with:
	 

	 	 	 	•   MortgageFlex Systems, Inc.

	 

	 	 	 	•   Nobel Systems Corporation.

	 
	 	 	 	 
	6.

	 	June 30
	 	Guarantor, Tribeca, any other applicable Borrower
or such other Subsidiary owning or having control
of any REO Property shall grant to Lender a first
Lien Mortgage on such Person’s REO Properties to
secure the Advances pursuant to mortgages, deeds of
trust or other Loan Documents and other closing
conditions or documents as are satisfactory to
Lender.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]