Document:

HOMEGOLD, INC.

                      SECOND AMENDMENT TO CREDIT AGREEMENT

Household Commercial Financial Services, Inc.
Woodale, Illinois 60191

Gentlemen:

    Reference is hereby made to that certain Credit Agreement dated as of May 2,
2000 as heretofore amended (the "Credit Agreement") between the undersigned,
Homegold, Inc., a South Carolina corporation (the "Borrower") and you (the
"Lender"). All capitalized terms used herein without definition shall have the
same meanings herein as such terms have in the Credit Agreement.

    The Borrower has requested that the Lender make certain amendments to the
Credit Agreement and the Lender is willing to do so under the terms and
conditions set forth in this Amendment.

1.  AMENDMENTS.

    Upon your acceptance hereof in the space provided for that purpose below,
the Credit Agreement shall be and hereby is amended as follows:

    1.1. Section 1.1 of the Credit Agreement shall be amending the definition of
Commitment contained therein in its entirety to read as follows:

         "Commitment" means $50,000,000.

    1.2. The definition of "Termination Date" contained in Section 1.1 of the
Credit Agreement shall be amended by deleting "April 30, 2001" appearing therein
and by substituting "December 31, 2000" therefor.

    1.3. Section 2.9 of the Credit Agreement shall be amended in its entirety
and as so amended shall read as follows:

         "Section 2.9 Extension of the Termination Date. The Borrower, pursuant
    to a written request delivered to Lender not more than 45, nor less than 30
    days prior to the then scheduled Termination Date, may request the Lender to
    extend the Commitment for an additional period of one calendar quarter,
    expiring on the last day of the calendar quarter immediately following the
    then scheduled Termination Date. The Lender shall notify the Borrower within
    15 days of its receipt of each such extension request whether it objects to
    such extension in which event the Termination Date shall remain as
    scheduled. In the event Lender shall either fail to respond or affirmatively
    agree in

<PAGE>
    writing to such request, the Termination Date shall be extended for an
    additional calendar quarter period as so requested. The foregoing to the
    contrary notwithstanding, in no event shall the Termination Date be extended
    beyond December 31, 2003 pursuant to the foregoing provisions."

    1.4. Section 9 of the Credit Agreement shall be amended by adding a new
Section 9.17 at the end thereof which reads as follows:

         "Section 9.17. Assignments. The Lender may, with the prior written
    consent of the Borrower (which consent shall not be unreasonably withheld or
    delayed and, in any event, shall not be required for an assignment by Lender
    to one of its Affiliates) at any time assign and delegate to another
    financial institution or other Person (any Person to which such an
    assignment and delegation is to be made being herein called "Assignee") all
    of the Lenders' Loans and Commitment provided that the Borrower shall be
    entitled to continue to deal solely and directly with the Lender in
    connection with the interests so assigned until the date when all of the
    following conditions shall have been satisfied:

         (i) one (1) Business Day shall have passed after written notice of such
    assignment and delegation (together with payment instructions, addresses and
    related information with respect tot he Assignee) shall have been given to
    the Borrower; and

         (ii) the assigning Lender and the Assignee shall have executed and
    delivered an Assignment Agreement and furnished a copy thereof to the
    Borrower

From and after the date on which the conditions described above have been met,
the Assignee shall be deemed automatically to have become party hereto and shall
have the rights and obligations of the Lender hereunder and the assigning Lender
shall be released from its obligations hereunder. Within five Business Days
after effectiveness of any assignment and delegation, the Borrower shall execute
and deliver to the Assignee Lender a new Note (such Note to be in exchange for,
but not in payment of, the predecessor Note held by the assigning Lender). Each
such Note shall be dated the effective date of such assignment. The assigning
Lender shall mark the predecessor Note "exchanged" and deliver it to the
Borrower. Accrued interest on the predecessor Note shall be paid as provided in
the Assignment Agreement. Within five Business Days after requested to do so,
Borrower shall also execute and deliver such UCC and other Collateral
assignments as may be requested by Assignee Lender on the assigning Lender.

2.  CONDITIONS PRECEDENT.

    The effectiveness of this Amendment is subject to the satisfaction of all of
the following conditions precedent:

    2.1. The Borrower and the Lender shall have executed and delivered this
Amendment.

    2.2. The Guarantors shall have consented hereto in the space provided for
such purpose below.
<PAGE>

    2.3. Legal matters incident to the execution and delivery of this Amendment
shall be satisfactory to the Lender and its counsel.

    2.4. The Lender shall have received copies (executed or certified, as may be
appropriate) of all legal documents or proceedings taken in connection with the
execution and delivery of this Amendment to the extent the Lender or its counsel
may reasonably request.

3.  REPRESENTATIONS.

    In order to induce the Lender to execute and deliver this Amendment, the
Borrower hereby represents to the Lender that as of the date hereof, the
representations and warranties set forth in Section 5 of the Credit Agreement
are and shall be and remain true and correct (except that the representations
contained in Section 5.5 shall be deemed to refer to the most recent financial
statements of the Borrower delivered to the Lender) and the Borrower is in full
compliance with all of the terms and conditions of the Credit Agreement and no
Default or Event of Default has occurred and is continuing under the Credit
Agreement or shall result after giving effect to this Amendment.

4.  MISCELLANEOUS.

    4.1 The Borrower and the Guarantors have heretofore executed and delivered
to the Lender that certain Security Agreement dated as of May 2, 2000 (the
"Security Agreement"). The Borrower hereby, and the Guarantors by their consent
hereto in the space provided for that purpose below, each acknowledges and
agrees that, notwithstanding the execution and delivery of this Amendment, the
Security Agreement remains in full force and effect and the rights and remedies
of the Lender thereunder, the obligations of the Borrower and Guarantors
thereunder and the liens and security interests created and provided for
thereunder remain in full force and effect and shall not be affected, impaired
or discharged hereby. Nothing herein contained shall in any manner affect or
impair the priority of the liens and security interests created and provided for
by the Security Agreement as to the indebtedness which would be secured thereby
prior to giving effect to this Amendment.

    4.2. Except as specifically amended herein, the Credit Agreement shall
continue in full force and effect in accordance with its original terms.
Reference to this specific Amendment need not be made in the Credit Agreement or
any other instrument or document executed in connection therewith, or in any
certificate, letter or communication issued or made pursuant to or with respect
to the Credit Agreement, any reference in any of such items to the Credit
Agreement being sufficient to refer to the Credit Agreement as amended hereby.

    4.3. The Borrower agrees to pay on demand all costs and expenses of or
incurred by the Lender in connection with the negotiation, preparation,
execution and delivery of this Amendment, including the fees and expenses of
counsel for the Lender.

    4.4. This Amendment may be executed in any number of counterparts, and by
the different parties on different counterpart signature pages, all of which
taken together shall constitute one and the same agreement. Any of the parties
hereto may execute this Amendment
<PAGE>

by signing any such counterpart and each of such counterparts shall for all
purposes be deemed to be an original. This Amendment shall be governed by the
internal laws of the State of Illinois.
<PAGE>

Dated as of September 20, 2000.

                                    HOMEGOLD, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

    Accepted and agreed to in Wood Dale, Illinois as of the date and year last
above written.

                                    HOUSEHOLD COMMERCIAL FINANCIAL
                                    SERVICES, INC.

                                    By:________________________________________
                                                 Michael J. Hammond
                                                 Vice President
<PAGE>
                                     CONSENT

         The undersigned have heretofore executed and delivered to the Lender
(i) a Guaranty dated May 2, 2000 (the "Guaranty") and (ii) a Security Agreement
dated May 2, 2000 (the "Security Agreement"). Each of the undersigned hereby
consents to the Amendment to Credit Agreement set forth above and confirms that
the Guaranty and the Security Agreement remain in full force and effect in
accordance with the terms thereof. Each of the undersigned further agrees that
the consent of the undersigned to any further amendments to the Credit Agreement
shall not be required as a result of this consent having been obtained, except
to the extent, if any, required by the Guaranty or Security Agreement.

                                    HOMEGOLD FINANCIAL, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    CAROLINA INVESTORS, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    PREMIER FINANCIAL SERVICES INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

<PAGE>
                                    LOAN PRO$, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT BUSINESS CAPITAL ASSET
                                    BASED LENDING, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    REEDY RIVER VENTURES, L.P.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT SBIC, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT COMMERCIAL MORTGAGE,
                                    INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________
<PAGE>

                                    EMERGENT BUSINESS CAPITAL, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT INSURANCE AGENCY CORP.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT MORTGAGE CORP. OF
                                    TENNESSEE

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    HOMEGOLD REALTY, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________HOMEGOLD, INC.

                       THIRD AMENDMENT TO CREDIT AGREEMENT
                            AND FORBEARANCE AGREEMENT

Household Commercial Financial Services, Inc.
Woodale, Illinois 60191

Gentlemen:

    Reference is hereby made to that certain Credit Agreement dated as of May 2,
2000 as heretofore amended (the "Credit Agreement") between the undersigned,
Homegold, Inc., a South Carolina corporation (the "Borrower") and you (the
"Lender"). All capitalized terms used herein without definition shall have the
same meanings herein as such terms have in the Credit Agreement.

    The Borrower has requested that the Lender make certain amendments to the
Credit Agreement and forbear from exercising its rights on account of existing
Events of Defaults and the Lender is willing to do so under the terms and
conditions set forth in this Agreement.

1.  AMENDMENTS.

    Upon your acceptance hereof in the space provided for that purpose below,
the Credit Agreement shall be and hereby is amended as follows:

    1.1 Section 1.1 of the Credit Agreement shall be amended by adding the
following new definitions thereto:

        "Corporate Guaranty" shall mean a Guaranty satisfactory to the Lender
    from the Corporate Guarantors.

        "Corporate Guarantors" shall mean the Parent, the Affiliates of the
    Borrower signatories to the Corporate Guaranty and all Subsidiaries of the
    Borrower other than special purpose Subsidiaries formed in connection with
    loan securitizations.

        "Sheppard Guaranty" shall mean a Guaranty satisfactory to the Lender
    from Ronald J. Sheppard.

    1.2 The definition of Eligible Mortgage Loan contained in Section 1.1 of the
Credit Agreement shall be amended by replacing the period at the end of clause
(xxii) with a semi-colon and adding the following clause at the end thereof:

        (xxiii) New City Fraud Prevention Service shall have performed its
    customary services and inspections with respect to such Mortgage Loan.

<PAGE>

    1.3. Section 1.1 of the Credit Agreement shall be amending the definitions
of "Applicable Advance Rate" , "Closing Agent", "Guaranty" and "Guarantors"
contained therein in their entirety to read as follows:

        "Applicable Advance Rate" means, initially, 100% with respect to all
    Loans made hereunder prior to October 23, 2000 and 97% with respect to all
    Loans made hereunder on and after October 23, 2000, in each case as such
    percentages may from time to time be reduced by the Lender in its sole
    discretion upon written notice to the Borrower, it being understood and
    agreed that such initial Applicable Advance Rate has been determined by the
    Lender in part based upon current returns for sales of mortgage loans in the
    secondary market and in the event the Lender determines in its sole
    discretion that there has been an adverse change in such market it intends
    to reduce the Applicable Advance Rate hereunder.

        "Closing Agent" means Integrated Real Estate Solutions.

        "Guaranty" means collectively, the Corporate Guaranty and the Sheppard
    Guaranty and also each of them individually.

        "Guarantors" means, collectively, the Corporate Guarantors and Ronald J.
    Sheppard and also each of them individually.

    1.4. The definition of "Termination Date" contained in Section 1.1 of the
Credit Agreement shall be amended by deleting "December 31, 2000" appearing
therein and by substituting "January 25, 2001" therefor.

    1.5. Section 2.4(b) shall be amended by deleting the second sentence
thereof.

    1.6. Section 2.9 of the Credit Agreement shall be deleted in its entirety.

    1.7. Section 8.1(f) of the Credit Agreement shall be amended in its entirety
and as so amended shall read as follows:

        "(f) either (i) default shall occur under any evidence of Indebtedness
    for Borrowed Money issued, assumed or guaranteed by the Borrower or any
    Guarantor or under any indenture, agreement or other instrument under which
    the same may be issued, and such default shall continued for a period of
    time sufficient to permit the acceleration of the maturity of any such
    Indebtedness for Borrowed Money (whether or not such maturity is in fact
    accelerated) or any such Indebtedness for Borrowed Money shall not be paid
    when due (whether by lapse of time, acceleration or otherwise) or (ii)
    Borrower or any Guarantor shall fail to pay or perform when due any
    repurchase obligation or any other outstanding obligation owing by it to
    Household Financial Services, Inc. or any of its Affiliates; or "

2.  FORBEARANCE.

    Events of Default have occurred and are continuing under Sections 8.1(a) and
8.1(b) of the Credit Agreement as a result of the Borrower's failure to make
certain prepayments required

<PAGE>
under Section 2.5(b)(ii) of the Credit Agreement and the non-compliance with the
covenants contained in Sections 7.14, 7.15 and 7.16 of the Credit Agreement. As
a result of such Events of Default, Lender is no longer obligated to make Loans
to Borrower and is also entitled to accelerate payment of all Loans and to
exercise certain other rights and remedies specified in the Credit Agreement.

    As an accommodation to Borrower while not waiving any such Events of
Default, but subject to compliance by Borrower with the terms and conditions
hereinafter set forth, Lender agrees to (i) forebear through January 25, 2001
from accelerating the Loans or exercising any rights and remedies to which it is
entitled as a result of the occurrence thereof except as provided herein and
(ii) continue to extend Loans to the Borrower on the terms and conditions set
forth in the Credit Agreement as amended hereby. This forbearance agreement is
conditioned upon compliance by the Borrower with the following:

    (a) On or before October 27, 2000, Borrower shall prepay the Loans in a
minimum amount sufficient to reduce the principal amount of Loans made against
all Mortgage Loans to an amount not in excess of the Borrowing Base as then
determined and computed;

    (b) On or before October 27, 2000, Ronald J. Sheppard shall execute and
deliver a Guaranty of Borrower's obligations to Lender satisfactory to the
Lender.

    (c) On or before October 27, 2000, Borrower shall have satisfied all
repurchase obligations owing by it to Household Financial Services, Inc.

    This agreement shall not establish a custom or course of dealing and does
not waive, limit or postpone any of Borrower's obligations under the Credit
Agreement, any of the Loan Documents or otherwise, and any discussions (written
or oral) which have occurred or which may hereafter occur are not, and shall not
be deemed to be, a waiver, limitation or postponement of any of Lender's rights
and remedies under the Credit Agreement, any of the Loan Documents or applicable
law, all of which rights and remedies are expressly reserved. This agreement
shall not become effective until the conditions precedent set forth in Section 3
hereof have been satisfied. This agreement shall expire on January 25, 2001 at
which time all terms and conditions of the Credit Agreement shall apply without
giving effect to the forebearance provided for herein and Lender shall be
entitled to exercise all rights and remedies available to it on account of any
Event of Default, whether existing as of the date hereof or otherwise.

3.  CONDITIONS PRECEDENT.

    The effectiveness of this Agreement is subject to the satisfaction of all of
the following conditions precedent on or before October 27, 2000:

    3.1. The Borrower and the Lender shall have executed and delivered this
Agreement.

    3.2. The Corporate Guarantors shall have consented hereto in the space
provided for such purpose below.

    3.3 Ronald J. Sheppard shall have executed and delivered the Sheppard
Guaranty.
<PAGE>

    3.3. Legal matters incident to the execution and delivery of this Agreement
shall be satisfactory to the Lender and its counsel.

    3.4. The Lender shall have received copies (executed or certified, as may be
appropriate) of all legal documents or proceedings taken in connection with the
execution and delivery of this Agreement to the extent the Lender or its counsel
may reasonably request.

4.  REPRESENTATIONS.

    In order to induce the Lender to execute and deliver this Agreement, the
Borrower hereby represents to the Lender that as of the date hereof, the
representations and warranties set forth in Section 5 of the Credit Agreement
are and shall be and remain true and correct (except that the representations
contained in Section 5.5 shall be deemed to refer to the most recent financial
statements of the Borrower delivered to the Lender) and except as set forth in
Section 2 hereof, the Borrower is in full compliance with all of the terms and
conditions of the Credit Agreement and no Default or Event of Default has
occurred and is continuing under the Credit Agreement or shall result after
giving effect hereof.

5.  MISCELLANEOUS.

    4.1 The Borrower and the Corporate Guarantors have heretofore executed and
delivered to the Lender that certain Security Agreement dated as of May 2, 2000
(the "Security Agreement"). The Borrower hereby, and the Corporate Guarantors by
their consent hereto in the space provided for that purpose below, each
acknowledges and agrees that, notwithstanding the execution and delivery of this
Agreement, the Security Agreement remains in full force and effect and the
rights and remedies of the Lender thereunder, the obligations of the Borrower
and Corporate Guarantors thereunder and the liens and security interests created
and provided for thereunder remain in full force and effect and shall not be
affected, impaired or discharged hereby. Nothing herein contained shall in any
manner affect or impair the priority of the liens and security interests created
and provided for by the Security Agreement as to the indebtedness which would be
secured thereby prior to giving effect to this Agreement.

    5.2. Except as specifically amended herein, the Credit Agreement shall
continue in full force and effect in accordance with its original terms.
Reference to this specific Agreement need not be made in the Credit Agreement or
any other instrument or document executed in connection therewith, or in any
certificate, letter or communication issued or made pursuant to or with respect
to the Credit Agreement, any reference in any of such items to the Credit
Agreement being sufficient to refer to the Credit Agreement as amended hereby.

    5.3. The Borrower agrees to pay on demand all costs and expenses of or
incurred by the Lender in connection with the negotiation, preparation,
execution and delivery of this Agreement, including the fees and expenses of
counsel for the Lender.

    5.4. This Agreement may be executed in any number of counterparts, and by
the different parties on different counterpart signature pages, all of which
taken together shall constitute one and the same agreement. Any of the parties
hereto may execute this Agreement by signing any such counterpart and each of
such counterparts shall for all purposes be deemed to be an original. This
Agreement shall be governed by the internal laws of the State of Illinois.
<PAGE>

    5.5 The Borrower hereby directs the Lender to apply all sums on deposit as
of the date hereof in the Remittance Account (as defined in the Security
Agreement) as follows:

        (a) first to all Obligations owing to Lender as of the date hereof;

        (b) second, to Household Financial Services, Inc. ("HFS") in
    satisfaction of all repurchase obligations of Borrower owing to HFS; and

        (c) third, with the balance, if any, to the Borrower or, in Lender's
    discretion, to be held in the Remittance Account as cash collateral for
    future Obligations of the Borrower.
<PAGE>
Dated as of October 25, 2000.

                                    HOMEGOLD, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

    Accepted and agreed to in Wood Dale, Illinois as of the date and year last
above written.

                                    HOUSEHOLD COMMERCIAL FINANCIAL
                                    SERVICES, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

<PAGE>
                                     CONSENT

    The undersigned have heretofore executed and delivered to the Lender (i) a
Guaranty dated May 2, 2000 (the "Guaranty") and (ii) a Security Agreement dated
May 2, 2000 (the "Security Agreement"). Each of the undersigned hereby consents
to the Agreement set forth above and confirms that the Guaranty and the Security
Agreement remain in full force and effect in accordance with the terms thereof.
Each of the undersigned further agrees that the consent of the undersigned to
any further amendments to the Credit Agreement shall not be required as a result
of this consent having been obtained, except to the extent, if any, required by
the Guaranty or Security Agreement.

                                    HOMEGOLD FINANCIAL, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    CAROLINA INVESTORS, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    PREMIER FINANCIAL SERVICES INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

<PAGE>
                                    LOAN PRO$, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT BUSINESS CAPITAL ASSET
                                    BASED LENDING, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    REEDY RIVER VENTURES, L.P.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT SBIC, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT COMMERCIAL MORTGAGE,
                                    INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________
<PAGE>
                                    EMERGENT BUSINESS CAPITAL, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT INSURANCE AGENCY CORP.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT MORTGAGE CORP. OF
                                    TENNESSEE

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    HOMEGOLD REALTY, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]