Document:

exv10w2

Execution Copy

AMENDMENT NO. 3 TO

AMENDED AND RESTATED CREDIT AGREEMENT 

THIS AMENDMENT NO. 3 TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered
into as of this 23rd day of May, 2011 (the “Amendment Effective Date”), by and among
FRANKLIN CREDIT ASSET CORPORATION, a Delaware Corporation (“Franklin Asset”), TRIBECA LENDING
CORP., a New York corporation (“Tribeca”), Franklin Asset, LLC, a Delaware limited liability
company (“FCAC Subco”) and the other Borrowers listed on Schedule 1 hereto (together with
Franklin Asset, Tribeca and FCAC Subco, each, a “Borrower” and collectively, the “Borrowers”), the
FINANCIAL INSTITUTIONS SIGNATORY HERETO as Lenders (as defined in the Credit Agreement defined
below), and THE HUNTINGTON NATIONAL BANK, a national banking association (“Huntington”) as
administrative agent for the Lenders, in such capacity, and together with its successors and
assigns in such capacity, the “Administrative Agent”).

This Amendment further amends and modifies a certain Amended and Restated Credit Agreement
dated as of March 31, 2009 (as amended, supplemented, restated, or otherwise modified from time to
time prior to the date hereof, the “Credit Agreement”) by and among the Borrowers, the Lenders and
the Administrative Agent. Capitalized terms used in this Amendment and not otherwise defined
herein shall have the meanings ascribed to such terms in the Credit Agreement.

RECITALS:

A. As of March 31, 2009, the Borrowers, the Lenders and the Administrative Agent executed the
Credit Agreement, amending and restating the terms of certain extensions of credit to the Borrowers
and reaffirming all Loan Documents entered into or delivered prior to such date; and

B. The Borrowers have failed to make certain payments due and owing under one or more Interest
Rate Hedge Agreements entered into in connection with the Indebtedness evidenced by the Credit
Agreement (the “Specified Default”), the Administrative Agent has maintained that, as a result of
the Specified Default, the Borrowers are currently in default of Section 8.01(b), “Events of
Default” of the Credit Agreement, and the Borrowers have not agreed that the Specified Default
constitutes such a default under the Credit Agreement; and

C. As a result of the Specified Default, the Borrowers, the Administrative Agent, and the
Required Lenders, among others, entered into a Settlement Agreement dated as of May 23, 2011 (the
“Settlement Agreement”), pursuant to which, inter alia, the Borrowers agreed to transfer, assign
and surrender to Huntington as Lender the REIT Shares and all proceeds thereof in consideration for
$478,000,000, in reduction of indebtedness owed to Huntington pursuant to Tranche A, and, at the
request of the Borrowers, the Administrative Agent and the Required Lenders agreed to waive the
Specified Default and amend the terms and conditions of the Credit Agreement as set forth below.

 

 

 

D. In connection with the Settlement Agreement, the Borrowers and Holding have requested that
(i) the Administrative Agent and the Required Lenders discharge Holding from any liability under
the Holding Limited Recourse Guaranty, (ii) waive the Specified Default; (iii) consent to the
Franklin Servicing LLC Dissolution to the extent it is prohibited by any of the Loan Documents,
(iv) consent to any Restricted Payment by Franklin Servicing LLC to Holding in connection with the
Franklin Servicing LLC Dissolution, (v) release its equity interests in Franklin Servicing LLC and
(vi) amend and modify certain other terms and covenants in the Credit Agreement, and the
Administrative Agent and the Required Lenders are willing to do so upon the terms and subject to
the conditions contained herein; and

E. Pursuant to Section 10.04, “Amendments,” of the Credit Agreement, the amendments
and waivers requested by the Borrowers and Holding herein must be contained in a written agreement
signed by each Borrower, the Administrative Agent and the Required Lenders.

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. The definition of “Guarantor” set forth in Section 1.01, “Certain Defined
Terms,” of the Credit Agreement is hereby amended to recite as follows:

“Guarantor” shall mean any Person which has become obligated to the
Administrative Agent or the Lenders in respect of the Obligations under any
Loan Document pursuant to the terms of a Guarantee.

2. Section 7.08, “Activities of Franklin Servicing,” of the Credit Agreement is hereby
deleted in its entirety. In furtherance thereof, pursuant to the terms of the Settlement
Agreement, the Administrative Agent and the Required Lenders consent to (i) the dissolution of
Franklin Credit Loan Servicing LLC and the distribution of its remaining assets to Holding, and/or
(ii) the merger of such limited liability company into Holding, and further consent to the release
of the Lien of the Administrative Agent on the Equity Interests owned by Holding in Franklin Credit
Loan Servicing LLC and the making of any Restricted Payment from Franklin Credit Loan Servicing LLC
to Holding.

3. Paragraph (c) of Section 7.20, “ Organizational Documents, Pledge or Transfer of Equity
Interests,” of the Credit Agreement is hereby amended to recite as follows:

(c) No Borrower will permit or allow others to, create, incur or permit to
exist any Lien, security interest or claim on or to any Equity Interests of
Franklin Asset or Tribeca, other than a Lien securing the Obligations.

4. The Administrative Agent and the Required Lenders hereby waive the Specified Default.

 

- 2 -

 

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

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

(i) five (5) duly executed originals of this Amendment;

(ii) Holding shall deliver a certified “stand alone” balance sheet of Franklin
Servicing LLC dated as of December 31, 2010;

(iii) a duly executed original of the Second Amendment to Amended and Restated
Pledge Agreement of Holding to remove Franklin Servicing LLC from Schedule 2
(Pledged Collateral);

(iv) five (5) duly executed originals of the Settlement Agreement; and

(v) satisfactory evidence that all corporate and other proceedings that are
necessary in connection with this Amendment have been taken to the satisfaction of
the Administrative Agent and its counsel, and the Administrative Agent and such
counsel shall have received all such counterpart originals or certified copies of
such documents as the Administrative Agent may request.

(b) The Administrative Agent (for the benefit of the Lenders) shall have received a fee
in respect of this Amendment in the amount of $0, which fee shall be earned in full as of
the Amendment Effective Date and shall be non-refundable; and

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

6. Representations and Warranties. Each Borrower represents and warrants to the
Administrative Agent and each Lender as follows: (a) the execution, delivery and performance by
such Borrower 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 will not violate any
Requirement of Law applicable to each Borrower; and (b) this Amendment has been duly executed and
delivered by each Borrower, and each of this Amendment, the Credit Agreement and each other Loan
Document as amended hereby constitutes the legal, valid and binding obligation of each Borrower,
enforceable against such Borrower in accordance with the terms thereof.

 

- 3 -

 

7. Ratification and Reaffirmation. Each Borrower agrees that the Liens and security
interests granted to the Administrative Agent with respect to the Obligations as security for all
obligations and liabilities of such Borrower under the Credit Agreement, each Application and
Agreement for Letter of Credit and the Revolving Loan Note are valid and binding and are hereby
ratified and confirmed in all respects.

8. Reference to and Effect on the Loan Documents. (a) Upon the effectiveness of this
Amendment, each reference in the Credit Agreement to “Amended and Restated Credit Agreement,”
“Credit Agreement,” “Agreement,” the prefix “herein,” “hereof,” or words of similar import, and
each reference in the Loan Documents to the Credit Agreement, shall mean and be a reference to the
Credit Agreement as amended hereby. (b) Except to the extent amended or modified hereby, all of
the representations, warranties, terms, covenants and conditions of the Credit 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 that the Administrative Agent may have
hereunder or thereunder. Nothing in this Amendment shall constitute a novation. The amendments
set forth herein shall be limited precisely as provided for herein, and shall not be deemed to be a
waiver of, amendment of, consent to or modification of any of the Administrative Agent’s or any
Lender’s rights under, or of any other term or provisions of, the Credit 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 any Borrower that would require the consent of
the Lender.

9. No Waiver. Nothing in this Amendment shall be construed to waive, modify, or cure
any default or Event of Default that exists or may exist under the Credit Agreement or any other
Loan Document.

10. 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.

11. 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 the Administrative Agent of a facsimile copy of an executed signature
page hereof will constitute receipt by the Administrative Agent of an executed counterpart of this
Amendment.

 

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

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

14. Patriot Act Notice. The Administrative Agent hereby notifies 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 each Borrower, which information includes the name and address of each Borrower and
other information that will allow the Administrative Agent to identify each Borrower in accordance
with the Act.

[Signature Pages Follow.]

 

- 5 -

 

IN WITNESS WHEREOF, the Borrowers, the Administrative Agent and the Lenders signatory hereto
have set their hands as of the date first set forth above.

	 	 	 	 	 
	 	BORROWERS:

FRANKLIN CREDIT ASSET CORPORATION

 	 
	 	By:  	/s/ Thomas J. Axon
 	 
	 	 	Name:  	Thomas J. Axon 	 
	 	 	Title:  	President 	 
	 
	 	TRIBECA LENDING CORP.

 	 
	 	By:  	/s/ Thomas J. Axon
 	 
	 	 	Name:  	Thomas J. Axon 	 
	 	 	Title:  	President 	 
	 
	 	FRANKLIN ASSET, LLC

 	 
	 	By:  	/s/ Thomas J. Axon
 	 
	 	 	Name:  	Thomas J. Axon 	 
	 	 	Title:  	President 	 
	 
	 	EACH BORROWER LISTED ON SCHEDULE 1 

ATTACHED HERETO

 	 
	 	By:  	/s/ Thomas J. Axon
 	 
	 	 	Name:  	Thomas J. Axon 	 
	 	 	Title:  	as President of, and on behalf of, each
Borrower listed on Schedule 1 attached to
this Amendment. 	 
	 

 

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

THE HUNTINGTON NATIONAL BANK

 	 
	 	By:  	/s/ David L. Abshier
 	 
	 	 	Name:  	David L. Abshier 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	LENDERS:

THE HUNTINGTON NATIONAL BANK

 	 
	 	By:  	/s/ David L. Abshier
 	 
	 	 	Name:  	David L. Abshier 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	HUNTINGTON FINANCE LLC, as Lender

 	 
	 	By:  	/s/ Donald R. Kimble
 	 
	 	 	Name:  	Donald R. Kimble 	 
	 	 	Title:  	President 	 
	 
	 	M & I MARSHALL & ILSLEY BANK, as Lender

 	 
	 	By:  	/s/ Thomas J. O’Neill
 	 
	 	 	Name:  	Thomas J. O’Neill 	 
	 	 	Title:  	Executive Vice President 	 

Signature Page to Amendment No. 3 to Amended and Restated Credit Agreement

 

 

 

SCHEDULE 1

FCMC 2000 C CORP.

FCMC 2000 D CORP.

FCMC 2001 A CORP.

FCMC 2001 B CORP (fka Fort 100 Corporation)

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 2004 A CORP (fka FCMC 2003 J Corp.)

FCMC 2004 B CORP. (fka FCMC 2003 K 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.

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 2000D CORP.

FLOW 2000E CORP.

FLOW 2000F CORP.

FLOW 2001 A CORP.

FLOW 2001 B CORPORATION

FLOW 2001 C CORPORATION

FLOW 2001 D CORP (fka Fort 100 B Corporation)

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.

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 2004 A CORP. (fka Flow 2003 M 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 99-92 CORP.

CAPE 77 CORP.

COAST 56 CORPORATION

EMERGE 64 CORPORATION

FIRSTGOLD 69 CORP.

BEACH FUNDING CORP.

COAST 96 CORP.

EMOD 65 CORP.

GREENWICH FIRST CORPORATION

GREENWICH FUNDING CORPORATION

GREENWICH MANAGEMENT CORPORATION

HARRISON FINANCIAL CORPORATION

PANCAL 82 CORP.

PENN 100B CORP.

PENN 100 CORP.

POINT 91 CORP.

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 L 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 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 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

RONTEXT 1617 CORPORATION

RONTEX 1617 CORPORATION

JUNIPER CORP.

NEWPORT 50 CORPORATION

SIX HARRISON CORPORATION

HUDSON MANAGEMENT CORPORATION

 

 

 

TRIBECA FUNDING CORPORATION

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 LXIX 2006 CORP.

TRIBECA LXV 2006 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.

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 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 LI 2005 CORP.

TRIBECA XVI 2004 CORP.

FLOW 2007 E CORP

EMGOLD 57 CORP.

FCMC CORPORATE REFINANCEexv10w3

Execution Copy

SECOND AMENDMENT TO

AMENDED AND RESTATED PLEDGE AGREEMENT

THIS SECOND AMENDMENT TO AMENDED AND RESTATED PLEDGE AGREEMENT (this “Amendment”), dated as of
May 23, 2011, is entered into by and between FRANKLIN CREDIT HOLDING CORPORATION, a Delaware
corporation (the “Grantor”), and The Huntington National Bank, a national banking association,
acting hereunder as contractual representative pursuant to the Credit Agreement for Lenders
(“Huntington,” acting as such contractual representative and any successor or successors to
Huntington acting in such capacity, being referred to as the “Administrative Agent”). All
capitalized terms in this Amendment that are not otherwise defined herein shall have the meanings
ascribed to such terms in the Pledge Agreement (as defined below).

RECITALS:

A. On or about March 31, 2009, the Grantor entered into a certain Amended and Restated Pledge
Agreement, that has been amended by a certain First Amendment to Amended and Restated Pledge
Agreement dated September 22, 2010 (as so amended, the “Pledge Agreement”) in favor of
Administrative Agent; and

B. Pursuant to the terms and subject to the conditions of the Pledge Agreement, the Grantor
collaterally assigned, mortgaged, pledged, and hypothecated to Administrative Agent (for the
benefit of the Secured Creditors) a lien on and security interest in, and a collateral assignment
of, all of Grantor’s right, title, and interest in, to, and under the Collateral; and

C. The Grantor and the Administrative Agent have agreed that the Pledge Agreement should be
amended and modified 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. The definition of “Pledged LLC Interests,” as set forth in Section 1.1(b) of the Pledge
Agreement is hereby amended to recite in its entirety as follows:

“Pledged LLC Interests” means, other in respect to Franklin Credit Loan
Servicing, LLC, all right, title and interest of the Grantor as a member of
any LLC and all right, title and interest of the Grantor in, to and under
any LLC Agreement to which it is a party.

2. Schedule 2 to the Pledge Agreement is hereby replaced with Schedule 2 attached to this
Amendment.

3. Conditions of Effectiveness. This Amendment shall become effective as of May 23,
2011, upon satisfaction of all of the following conditions precedent:

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

(i) Two duly executed originals of this Amendment;

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

 

 

 

4. Representations and Warranties. The Grantor represents and warrants to
Administrative Agent as follows: (a) after giving effect to this Amendment, each representation and
warranty made by or on behalf of the Grantor in the Pledge Agreement and in any other document
executed in connection therewith is true and correct in all material 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 the Grantor of this Amendment and any other related document have been duly
authorized by all requisite corporate or organizational action on the part of the Grantor and will
not violate any Laws applicable to the Grantor; (c) this Amendment has been duly executed and
delivered by the Grantor, and each of this Amendment, the Pledge Agreement, and any other related
document as amended hereby constitutes the legal, valid, and binding obligation of the Grantor,
enforceable against the Grantor in accordance with the terms thereof; and (d) no event has occurred
and is continuing, and no condition exists, which would constitute an Event of Default.

5. Ratification and Reaffirmation. The Grantor agrees (i) that all the obligations,
indebtedness, and liabilities of the Grantor to the Administrative Agent under the Pledge Agreement
are the valid and binding obligations of the Grantor; (ii) that the Secured Obligations of the
Grantor 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 the Administrative Agent are valid and binding and are hereby
ratified and confirmed in all respects.

6. Reference to and Effect on the Loan Documents. (a) Upon the effectiveness of this
Amendment, each reference in the Pledge Agreement to “Amended and Restated Pledge Agreement,”
“Pledge Agreement,” “Agreement,” the prefix “herein,” “hereof,” or words of similar import, and
each reference in any related documents to the Pledge Agreement, shall mean and be a reference to
the Pledge Agreement as amended hereby. (b) Except to the extent amended or modified hereby, all
of the representations, warranties, terms, covenants, and conditions of the Pledge Agreement and
any related 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 the Administrative Agent may have
hereunder or thereunder. Nothing in this Amendment shall constitute a novation. The amendments
set forth herein shall be limited precisely as provided for herein, and shall not be deemed to be a
waiver of, amendment of, consent to, or modification of any of the Administrative Agent’s rights
under, or of any other term or provisions of, the Pledge Agreement or any other related document,
or of any term or provision of any other document referred to therein or herein or of any
transaction or future action on the part of the Grantor that would require the consent of the
Administrative Agent.

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

 

- 2 -

 

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

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

10. Further Assurances. The Grantor hereby agrees to execute and deliver such
additional documents, instruments, and agreements reasonably requested by the Administrative Agent
as may be reasonably necessary or appropriate to effectuate the purposes of this Amendment.

11. 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.

12. 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.

[Signature Page Follows.]

 

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IN WITNESS WHEREOF, the Grantor and the Administrative Agent have hereunto set their hands as
of the date first set forth above.

	 	 	 	 	 
	 	GRANTOR:

FRANKLIN CREDIT HOLDING CORPORATION

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

THE HUNTINGTON NATIONAL BANK, as 

Administrative Agent

 	 
	 	By:  	/s/ David L. Abshier
 	 
	 	 	Name:  	David L. Abshier 	 
	 	 	Title:  	Senior Vice President 	 

Signature Page to Second Amendment to Amended and Restated Pledge Agreement

 

 

SCHEDULE 2

(Pledged Collateral)

	•	 	100% of issued and outstanding equity of all classes of stock and membership interests
of subsidiaries of Franklin Credit Holding Corporation, including but not limited to,
Franklin Credit Asset Corporation and Tribeca Lending Corp., but excluding Franklin Credit
Management Corporation and Franklin Credit Loan Servicing, LLC.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]