Document:

<PAGE>   1

                                                                     Exhibit 4.1

                            THIRD AMENDMENT AGREEMENT

     THIS THIRD AMENDMENT AGREEMENT (the "Agreement") is entered as of August 8,
2000 between SHARED TECHNOLOGIES CELLULAR, INC., a Delaware corporation, with
its principal place of business at 100 Great Meadow Road, Suite 104,
Wethersfield, Connecticut 06109 (the "Borrower") and CITIZENS BANK OF
MASSACHUSETTS, a Massachusetts Bank, having an office and place of business at
28 State Street, Boston, MA 02109 (the "Bank").

RECITALS:
     On July 7, 1999, the Bank and the Borrower entered into a Loan Agreement,
as amended by that certain First Amendment Agreement dated as of December 3,
1999, and as further amended by that certain Second Amendment Agreement dated as
of May 1, 2000 (referred to herein collectively as the "Credit Agreement")
pursuant to which the Bank extended to the Borrower a Revolving Credit Facility
which is presently existing in the maximum aggregate line availability of Five
Million Dollars ($5,000,000.00).

      The Borrower executed and delivered to the Bank on July 7, 1999 a Secured
Revolving Credit Promissory Note in the original principal amount of Ten Million
Dollars ($10,000,000.00), which was amended and restated by that certain
Amendment and Restated Secured Revolving Credit Promissory Note in the original
principal amount of Five Million Dollars ($5,000,000.00) dated May 1, 2000
(collectively the "Original Note").

     The Borrower and the Bank have agreed to amend the Credit Agreement and the
Original Note upon the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the provisions herein contained,
Borrower and the Bank, each intending to be legally bound hereby, agree as
follows:

SECTION I.  AMENDMENTS TO CREDIT AGREEMENT.

     The Credit Agreement is amended hereby as follows:

     1. SECTION 1.1 OF THE CREDIT AGREEMENT IS AMENDED BY AMENDING AND RESTATING
IN ITS ENTIRETY THE DEFINITION OF "COMMITMENT TERMINATION DATE" AS FOLLOWS:

           ""Commitment Termination Date" shall mean December 29, 2000.
           Expiration dates of Letters of Credit existing as of the date of the
           Third Amendment Agreement, as issued under the Revolving Credit Loan,
           shall not exceed the Commitment Termination Date."
<PAGE>   2
     2. SECTION 1.1 OF THE CREDIT AGREEMENT IS AMENDED BY AMENDING AND RESTATING
IN ITS ENTIRETY THE DEFINITION OF "COMPLIANCE CERTIFICATE" AS FOLLOWS:

           ""Compliance Certificate" shall mean the certificate required by
           SECTION 4.1(b)(xiv) and SECTIONS 5.4(a) and SECTION 5.4(b), in the
           form of Exhibit A annexed to the Third Amendment Agreement."

     3. SECTION 1.1 OF THE CREDIT AGREEMENT IS AMENDED BY AMENDING AND RESTATING
IN ITS ENTIRETY THE DEFINITION OF "REVOLVING CREDIT COMMITMENT" AS FOLLOWS:

           ""Revolving Credit Commitment" shall mean Two Million Five Hundred
           Thousand Dollars ($2,500,000.00)."

     4. SECTION 2.1(a) OF THE CREDIT AGREEMENT IS AMENDED AND RESTATED IN ITS
ENTIRETY AS FOLLOWS:

           "2.1  Revolving Credit Loan.

                 (a) Loan. Subject to the terms of this Agreement, the Lender
           agrees to make advances to the Borrower (each such advance being
           referred to herein as an "Advance" and all such Advances being
           collectively referred to herein as the "Revolving Credit Loan") from
           time to time from the Closing Date through and including the
           Commitment Termination Date in an aggregate principal amount not to
           exceed the lesser of:

                 i)    70% of Eligible Receivables, minus Two Hundred
                       Thousand Dollars ($200,000.00); or

                 ii)   the amount of the Revolving Loan Commitment;

           provided that notwithstanding the foregoing, the Lender shall have no
           obligation to make an Advance if an Event of Default exists or would
           result therefrom. The formula and conditions provided in this SECTION
           2.1 (a) for the making of Advances are collectively referred to
           herein as the "Borrowing Base"."

     5. SECTION 2.5 OF THE CREDIT AGREEMENT IS AMENDED AND RESTATED IN ITS
ENTIRETY AS FOLLOWS:

           "2.5 "Rate of Interest". Interest on the Loan shall accrue at the
           rate per annum equal to the Prime Rate plus one and one-quarter
           percent (1.25%) (with such Interest Rate changing on the effective
           date of each change in the Prime Rate)."

                                       2
<PAGE>   3
     6. SECTION 2.6 OF THE CREDIT AGREEMENT IS AMENDED AND RESTATED IN ITS
ENTIRETY AS FOLLOWS:

           "2.6 "Default Rate of Interest". Notwithstanding SECTION 2.5 hereof,
           if an Event of Default shall have occurred, then in such event, to
           the extent permitted by law, the Interest Rate applicable to the Loan
           (the "Default Rate") shall be three and three-quarters percent
           (3.75%) in excess of the Prime Rate (with such Interest Rate changing
           on the effective date of each change in the Prime Rate)."

     7. SECTION 5.6 OF THE CREDIT AGREEMENT IS AMENDED AND RESTATED IN ITS
ENTIRETY AS FOLLOWS:

           "5.6 Minimum Prepaid Lines.  Maintain, for each Fiscal Quarter
           commencing with the Fiscal Quarter ending September 30, 2000,
           Eighty Thousand (80,000) Minimum Prepaid Lines."

     8. SECTION 5.7 OF THE CREDIT AGREEMENT IS AMENDED AND RESTATED IN ITS
ENTIRETY AS FOLLOWS:

           "5.7  Minimum Current Ratio.  Maintain, for each Fiscal Quarter
           commencing with the Fiscal Quarter ending September 30, 2000, a
           minimum Current Ratio of 0.5:1.0."

     9. SECTION 5.8 OF THE CREDIT AGREEMENT IS AMENDED AND RESTATED IN ITS
ENTIRETY AS FOLLOWS:

           "5.8 Maximum Net Loss/Minimum Net Income.  Maximum Net Loss for
           such Fiscal Quarter commencing with the Fiscal Quarter ending
           September 30, 2000, shall not exceed Four Million Dollars
           (($4,000,000.00))."

     10. SECTION 5.9 SHALL BE DELETED IN ITS ENTIRETY.

     11. SECTION 5.10 OF THE CREDIT AGREEMENT IS AMENDED AND RESTATED IN ITS
ENTIRETY AS FOLLOWS:

           "5.10 Minimum Total Stockholder's Equity.  Maintain, for each
           Fiscal Quarter commencing with the Fiscal Quarter ending September
           30, 2000, a minimum Total Stockholder's Equity of (Eight Million
           Dollars) (($8,000,000.00))."

                                       3
<PAGE>   4
     12. SECTION 5.22 OF THE CREDIT AGREEMENT, AS ADDED BY THE SECOND AMENDMENT
AGREEMENT, IS AMENDED AND RESTATED IN ITS ENTIRETY AS FOLLOWS:

           "5.22 Minimum Additional Capital. The Borrower shall have raised from
           July 21, 2000 through August 31, 2000 a minimum additional capital
           and equity contribution of not less than Five Million Dollars
           ($5,000,000.00), provided however that evidence thereof to be
           received by the Bank on or before August 31, 2000 shall consist of
           the following:

                 a)    copies of deposit receipts into the Equity Funds Account
                       described in the Third Amendment Agreement or copies of
                       deposit receipts into the Borrower's operating account
                       maintained with the Bank."

     13. SECTION 7.1(n) OF THE CREDIT AGREEMENT IS DELETED IN ITS ENTIRETY.

     14. SECTION 7.4 OF THE CREDIT AGREEMENT IS AMENDED AND RESTATED IN ITS
ENTIRETY AS FOLLOWS:

           1. "Consent to Receiver. In addition to the foregoing remedies, the
           Lender may upon the occurrence and during the continuance of an Event
           of Default proceed to protect and enforce its rights by an action at
           law, suit in equity or other appropriate proceeding, whether for the
           specific performance of any agreement contained in any of the Loan
           Documents, or for an injunction against a violation of any of the
           terms hereof or thereof. If the Lender applies for the employment of,
           or taking possession by, a trustee, receiver, liquidator or other
           similar official, of the Borrower to hold or liquidate all or any
           substantial part of the properties or assets of the Borrower, the
           Borrower hereby consents to such appointment and agrees to execute
           and deliver any and all documents requested by the Lender relating to
           the appointment of such trustee, receiver, liquidator or other
           similar official (whether by joining in a petition for the voluntary
           appointment of such an official, by entering no contest to a petition
           for the appointment of such an official or otherwise, as appropriate
           under applicable law), immediately after the occurrence of an Event
           of Default. No right conferred upon the Lender hereby or by any Loan
           Document or the Note shall be exclusive of any other right referred
           to herein or therein or now or hereafter available at law, in equity,
           by statute or otherwise."

     15. THE FOLLOWING NEW DEFINITIONS ARE ADDED TO THE CREDIT AGREEMENT:

           ""First Amendment Agreement" shall mean that certain Agreement
           entered into between the Borrower and the Bank dated as of December
           3, 1999.

                                       4
<PAGE>   5
            "Second Amendment Agreement" shall mean that certain Agreement
           entered into between the Borrower and the Bank dated as of May 1,
           2000.

            "Third Amendment Agreement" shall mean that certain Agreement
           entered into between the Borrower and the Bank dated as of August
                 , 2000."

     16. WHENEVER NOTICE IS CONTEMPLATED TO BE GIVE TO THE "BANK" OR THE
"LENDER" OR THE "SECURED PARTY" OR THE "ASSIGNEE" UNDER THE SECURITY DOCUMENTS,
NOTICE SHALL BE GIVEN AS FOLLOWS:

           If to the Bank:   Citizens Bank of Massachusetts
                             100 Summer Street
                             Boston, Massachusetts 02110
                             Attn: Christopher Daniel, Vice President

           With a Copy to:   CAMERON & MITTLEMAN, LLP
                             56 Exchange Terrace
                             Providence, Rhode Island 02903
                             Attn: Amy L. Mower, Esquire

     17. ANY AND ALL REFERENCES TO THE "SCHEDULES" TO THE CREDIT AGREEMENT SHALL
REFER TO THE AMENDED AND RESTATED SCHEDULES DELIVERED TO THE BANK PURSUANT TO
THE THIRD AMENDMENT AGREEMENT.

     18. EXHIBIT C TO THE CREDIT AGREEMENT AND EXHIBIT D TO THE CREDIT AGREEMENT
ARE AMENDED AND RESTATED IN THEIR ENTIRETY BY EXHIBIT A AND EXHIBIT B TO THE
THIRD AMENDMENT AGREEMENT. ALL OTHER EXHIBITS TO THE CREDIT AGREEMENT SHALL NOT
BE AMENDED AND SHALL REMAIN IN THEIR ORIGINAL FORM.

SECTION II.  AMENDMENT TO THE ORIGINAL NOTE.

     The Original Note is amended and restated in its entirety by the Borrower's
execution and delivery to the Bank of that certain Amended and Restated
Revolving Credit Promissory Note in the original principal amount of Two Million
Five Hundred thousand ($2,500,000.00) a form of which is attached hereto as
Exhibit B, with all blanks completed, and duly executed by the Borrower
(referred to herein as the "Successor Note").

                                       5
<PAGE>   6
SECTION III.  CONDITIONS.

      A.    CONDITION PRECEDENT - DELIVERY OF DOCUMENTS.

            The Bank shall have no obligation to make advances under the Credit
Agreement unless the following conditions are satisfied or waived by the Bank:

           1. The Borrower has delivered to the Bank the following documents in
     form and substance satisfactory to the Bank, the receipt of which is hereby
     acknowledged (the "Amendment Documents"):

                 a)    the Successor Note, duly executed by the Borrower; and

                 b)    Certificate of No Default from the Borrower, duly
                       executed by the Borrower; and

                 c)    Corporate Borrowing Authorization and Certificate of
                       Incumbency of Officers and Directors - the Borrower;
                       and

                 d)    Corporate Guaranty Authorization and Certificate of
                       Incumbency of Officers and Directors and
                       Identification of Shareholders - The Cellular Hotline,
                       Inc.; and

                 e)    a Twenty Five Thousand Dollar ($25,000.00) fee, payable
                       on even date, for the Waiver by the Bank herein of
                       certain Loan Covenant Defaults, which constitutes the
                       first installment of the Waiver Fee of Two Hundred Fifty
                       Thousand Dollars ($250,000.00), payable as required in
                       SECTION III. G. 3. hereof; and

                 f)    Amended Schedules to the Credit Agreement, reflecting
                       Borrower's disclosures therein of facts in existence as
                       of the date hereof; and

                 g)    the delivery of such other documents reflected in that
                       certain Closing Agenda attached hereto as Exhibit C and
                       incorporated herein by reference, as may be reasonably
                       required by the Bank in connection with the transaction
                       contemplated hereby.

           2. All legal matters incident to this Agreement and the transactions
     contemplated hereby shall be satisfactory to the Bank and its counsel.

                                       6
<PAGE>   7
     B.    CONDITIONS SUBSEQUENT.

           The Borrower acknowledges that the Bank will require a field
examination (with a scope to be determined at the Bank's sole discretion) to be
completed within thirty (30) days of execution of this Agreement, the terms and
provisions of which must be satisfactory to the Bank in its sole discretion. The
Borrower acknowledges that should the results of the field examination disclose
any non-compliance with the terms or provisions of the Credit Agreement, or
disclose any fraud or other credit issues determined by the Bank in its sole
discretion, then any such event shall constitute an Event of Default under the
Credit Agreement.

           The Borrower also acknowledges that as a condition subsequent to the
execution of this Agreement, it must deliver to the Lender, as a condition
subsequent to this Agreement, an Accord Certificate 27 indicating Hazard and
Liability Insurance Coverage, which Certificate shall name the Bank as an
additional insured and loss payee with respect to each of the Borrower and the
Guarantor.

           The Borrower also acknowledges that a condition subsequent to the
execution of this Agreement is the Bank's receipt of satisfactory Financing
Statement Searches, Tax Searches and Judgment Searches against both the Borrower
and the Guarantor in the States of Delaware, Missouri and Connecticut. The
Borrower acknowledges that should any information be disclosed on such searches
which is not satisfactory to the Lender in its sole discretion, that such
disclosure shall constitute an Event of Default under the Credit Agreement.

           The Borrower acknowledges that failure to deliver the documents
reflected in the foregoing paragraphs of this SECTION III (B) within the
timetable contemplated in that certain Post-Closing Letter Agreement (listed on
Exhibit C hereto) shall constitute an Event of Default for the purposes of the
Credit Agreement.

     C.    RECONFIRMATION OF COVENANTS, REPRESENTATIVES AND WARRANTIES.

           1. The Borrower further reaffirms all of its obligations, as amended
hereby, under the Credit Agreement, and under the Security Documents.

           2. The Borrower acknowledges that upon its delivery to the Bank of
the duly executed Amendment Documents, that all representations, warranties and
covenants set forth in the Credit Agreement are deemed to be made again as of
the date of the delivery hereof. The Borrower further represents and warrants
that the Borrower does not have:

           a)    any information contrary to any of the conclusions reflected
     in, or

           b)    any information contrary to any of the assumptions or
     premises included in any of, or

                                       7
<PAGE>   8
           c) any knowledge of any material adverse changes which have occurred
     in the Borrower's financial condition since the date of,

the following:

                 i)    that certain set of forecast of operations dated June
           28, 2000, prepared by Borrower and delivered to Lender; and

                 ii) that certain July 26, 2000 e-mail which included revised
           covenant projections prepared by the Borrower in the form of "Exhibit
           C", sent by the Borrower to the Bank; and

                 iii) the Borrower's 10Q Report for the fiscal quarter ending
           March 31, 2000, prepared by the Borrower and delivered to the Bank.

      D.   RESERVATION OF RIGHTS.

           The Bank and the Borrower agree that:

                 i) This Agreement evidences solely the amendment of the terms
     and provisions of the Borrower's obligations under the Credit Agreement and
     the Original Note, and is not a novation or discharge thereof;

                 ii) Notwithstanding the terms hereof: the Bank hereby reserves
     its rights against the Borrower under the Credit Agreement and the Original
     Note, as provided under the Commonwealth of Massachusetts law and judicial
     precedent, as in effect from time to time;

                 iii) There are no other understandings, express or implied
     between the Bank and the Borrower regarding the Credit Agreement and the
     Original Note; and
                 iv) Notwithstanding any prior course of practice or conduct,
     the Borrower acknowledges that the Bank has not waived, and has no
     obligation to waive, any subsequent Events of Default under the Credit
     Agreement and the Original Note, or under this Agreement.

                                       8
<PAGE>   9
     E.    EFFECT OF AMENDMENT.

           1. Except as amended hereby, the Credit Agreement and the Original
Note and all other documents entered into in connection therewith shall:

                 a) remain in full force and effect in accordance with their
original terms and nothing herein shall be deemed to modify, abrogate, waive or
extend any other provision in the Credit Agreement and the Original Note or in
any other document, agreement or instrument executed in connection therewith or
pursuant thereto prior to the execution of this Agreement, including without
limitation any of the Borrower's liabilities to the Bank or any of the Bank's
rights with respect to such liabilities; and

                 b)     be in all respects ratified and affirmed.

           Notwithstanding the foregoing, any amendments of the Credit Agreement
and the Original Note to which the parties hereto have agreed previously and
which are not incorporated herein by reference or otherwise, shall be deemed of
no further force and effect upon the execution hereof.

           2. The Borrower acknowledges that all of the liabilities and
obligations of the Borrower to the Lender now existing and hereafter incurred
are secured by the security described in the Security Documents defined in the
Credit Agreement and by the security described in the Amendment Documents; the
Borrower further acknowledges that the Bank is relying upon the security
described above, both as entered into on July 9, 1999 and as entered into from
time to time thereafter, as security for the financing represented by the
Liabilities and as security for all other obligations of the Borrower to the
Bank.

     F.    WAIVER.

           Based upon the Bank's review of Borrower's most recent Financial
Statements, Bank hereby waives:

           i) Borrower's compliance for the Fiscal Quarter ending June 30, 2000
     and any previous Fiscal Quarter, with any and all financial covenant
     violations under the Credit Agreement; and

           ii) any Event of Default occurring on or prior to the date hereof, of
     which the Bank has written notice,

with the express stipulation that this Waiver shall not operate as a waiver of
any other failure by the Borrower to meet other covenants of which the Bank does
not have notice as of the date hereof, or waiver of the failure of the Borrower
to meet the same covenants on a future occasion.

                                       9
<PAGE>   10
           Such Waiver shall not be construed as a course of action which would
constitute a waiver of any other default under the Credit Agreement or under any
other document executed in connection therewith or pursuant thereto. No delay in
taking any action with respect to any such default, or any other course of
action by the Bank shall affect Bank's rights to later take any such action with
respect to any such default.

     G.    GENERAL.

           1. CONSTRUCTION. Incorporated herein by reference are the
representations, warranties, agreements, affirmative and negative, definitions,
terms and conditions all as set forth in (i) the Credit Agreement and the
Original Note and all documents executed in connection therewith or pursuant
thereto and (ii) the Amendment Documents. This Agreement and the Credit
Agreement and the Original Note, and the Amendment Documents shall be construed
collectively and in the event that any term, provision or condition of any of
such documents is inconsistent with or contradictory to any term, provision or
condition of any other such document, the terms, provisions and conditions of
this Agreement shall supersede and control the terms, provisions and conditions
of the Credit Agreement and the Original Note and the Amendment Documents.

           2. GOVERNING LAW. This Agreement, the Successor Note, the Original
Note and the Credit Agreement and all Security Documents thereunder, and the
rights and obligations of the parties hereunder, shall in all respects be
governed by, and interpreted and determined in accordance with, the laws of the
Commonwealth of Massachusetts (excluding the laws applicable to conflicts or
choice of law).

           3. WAIVER FEE. In consideration of this Third Amendment Agreement,
the Bank shall be entitled to, and the Borrower shall pay, as of the date
hereof, a Waiver Fee in the amount of Two Hundred Fifty Thousand Dollars
($250,000.00), of which Twenty Five Thousand Dollars ($25,000.00) shall be
payable upon the execution hereof, with the remaining Two Hundred Twenty Five
Thousand Dollars ($225,000.00) of said Waiver Fee shall be due and payable on or
before December 29, 2000. The Bank will waive the Two Hundred Twenty Five
Thousand Dollars ($225,000.00) balance of the Waiver Fee due in the event that
all of Borrower's Obligations and Liabilities are paid in full to the Bank and
the Revolving Loan Commitment is canceled on or before December 29, 2000.

           THE BORROWER ACKNOWLEDGES SPECIFICALLY, WITHOUT LIMITATION HEREBY,
THAT SHOULD THE BORROWER FAIL TO HAVE PAID ALL OBLIGATIONS AND LIABILITIES IN
FULL TO THE BANK, AND OBTAIN CANCELLATION OF THE REVOLVING LOAN CREDIT
COMMITMENT, ON OR BEFORE DECEMBER 29, 2000, THEN THE BANK SHALL BE ENTITLED TO
IMMEDIATELY, ON DECEMBER 30, 2000, SET OFF AGAINST ANY AND ALL OF THE BORROWER'S
ACCOUNTS MAINTAINED WITH THE BANK, WITH THE EXCEPTION OF THE EQUITY FUND ACCOUNT
(AS DESCRIBED IN PARAGRAPH 4 BELOW), THE AMOUNT OF TWO HUNDRED TWENTY FIVE
THOUSAND DOLLARS ($225,000.00) FOR SAID WAIVER FEE, PLUS THE AMOUNT OF ANY AND

                                       10
<PAGE>   11
ALL OTHER OUTSTANDING INDEBTEDNESS, OBLIGATIONS AND LIABILITIES OF THE BORROWER
TO THE BANK, INCLUDING BUT NOT LIMITED TO INTEREST, PENALTIES, LEGAL FEES AND
EXPENSES, AND ALL OTHER EXPENSES INCURRED FROM TIME TO TIME BY THE BANK AND
REMAINING THEN OUTSTANDING TO THE BANK.

           4. EQUITY FUND ACCOUNT. The Borrower may deposit any and all proceeds
which are received from its current equity raising, in a specifically designated
deposit account to be maintained by the Borrower with Prudential Securities (the
"Equity Funds Account"). The Bank and the Borrower agree that the Equity Funds
Account shall be independent and separate from the Borrower's regular operating
account (the "Operating Account"). Borrower may transfer funds from the Equity
Funds Account to the Operating Account at its sole discretion; however, Borrower
may not, at any time, transfer funds from the Operating Account to the Equity
Fund Account.

     Borrower acknowledges that the Bank will be monitoring the Operating
Account and the Equity Funds Account on a day-to-day basis to ensure Borrower's
compliance with this Section III. G. 4. Borrower also agrees to provide to the
Bank, within five (5) days of Borrower's receipt, copies of all monthly
statements issued by Prudential Securities for the Equity Funds Account.

     THE BANK SPECIFICALLY AGREES AND ACKNOWLEDGES THAT THE EQUITY FUNDS ACCOUNT
SHALL NOT BE SUBJECT TO ANY SET OFF RIGHTS OF THE BANK, AT LAW OR IN EQUITY OR
UNDER THE CREDIT AGREEMENT OR UNDER ANY SECURITY DOCUMENT, NOR SHALL THE EQUITY
FUNDS ACCOUNT BE SUBJECT TO ANY LIEN OR ATTACHMENT OF THE BANK, NOTWITHSTANDING
ANY TERMS OF THE CREDIT AGREEMENT OR THE TERMS OF ANY OF THE SECURITY DOCUMENTS
OR ANY APPLICABLE PROVISIONS OF THE LAWS OR EQUITY RULES OF THE COMMONWEALTH OF
MASSACHUSETTS, OR THE STATES OF CONNECTICUT OR DELAWARE, OR THE FEDERAL
BANKRUPTCY LAWS.

           5. SECURITY DOCUMENTS. The Borrower and The Cellular Hotline, Inc.,
by its signature hereto, agree that:

     a) the Security Documents (defined in the Credit Agreement) are amended to
     reflect that the obligations and liabilities secured thereby are deemed
     amended pursuant to this Amendment Agreement, as incorporated therein by
     reference; and

     b) except as specifically amended hereby, the Security Documents, and all
     indebtedness incurred pursuant thereto shall remain in full force and
     effect, in accordance with their original terms as previously amended, and
     nothing herein shall be deemed to modify, abrogate, waive or extend any
     other provision in the Security Documents, except as previously amended, or
     in any other document, agreement, or instrument executed in connection
     therewith or pursuant thereto prior to the execution of this Agreement,
     including without limitation any of the Borrower's or The Cellular Hotline,
     Inc.'s liabilities to the Bank or any of the Bank's rights with respect to
     such liabilities; and

                                       11
<PAGE>   12
     c) the Security Documents, as amended hereby, shall continue to secure the
     Borrower's obligations under the Credit Agreement, the Original Note and
     all other obligations of the Borrower and of The Cellular Hotline, Inc. to
     the Bank, whether now existing or hereafter arising.

           6. WAIVER OF TRIAL BY JURY. BORROWER, THE CELLULAR HOTLINE, INC., AND
BANK MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO
A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREIN, ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE
EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR THE BANK TO ACCEPT THIS AGREEMENT AND TO
AMEND THE REVOLVING CREDIT FACILITY.

             [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>   13
      IN WITNESS WHEREOF, the Bank and the Borrower have caused their duly
authorized officers to execute this Agreement as of the day and year first above
written as an instrument under seal.

WITNESS:                           SHARED TECHNOLOGIES CELLULAR, INC.

                                   By: /s/ Anthony D. Autorino
                                           -----------------------------
                                           Anthony D. Autorino
                                           Title: Chairman and Executive
                                           Officer

                                   CITIZENS BANK OF MASSACHUSETTS

                                    By: /s/ Chritopher Daniel
                                        -------------------------
                                            Christopher Daniel
                                            Title: Vice President

                            CONSENT AND CONFIRMATION

     The undersigned consents to the amendment of the Credit Agreement pursuant
to the Third Amendment Agreement, and the terms of the Third Amendment
Agreement, including but not limited to Section III. G. 5 and 6 thereof, and of
all underlying documents referred to therein and all documents entered into
pursuant thereto or in connection therewith.

     The undersigned confirms its obligations under that certain Guaranty dated
as of July 7, 1999 (the "Guaranty"), executed by the undersigned, of all
Liabilities (as defined in the Guaranty), as amended hereby, of the Borrower to
the Bank, and confirms its obligations under all documents securing the
Guaranty.

     IN WITNESS WHEREOF, the undersigned has caused its duly authorized officer
to execute this Consent and Confirmation as of the 8th day of August, 2000, as
an instant under Seal.

WITNESS:                                 THE CELLULAR HOTLINE, INC.

                                         By:  /s/ Anthony D. Autorino
                                              -----------------------
                                         Its: Chairman and Chief Executive
                                              Officer

                        [NOTARIZATIONS ON THE NEXT PAGE]

                                       13
<PAGE>   14
                 [NOTARIZATIONS FOR SIGNATURES ON PRIOR PAGE]

STATE OF CONNECTICUT
COUNTY OF HARTFORD

     In Whethersfield on the _____day of August, 2000, before me personally
appeared the above-named _____________________________, of SHARED TECHNOLOGIES
CELLULAR, INC. to me known and known by me to be the party executing the
foregoing instrument on behalf of said corporation and acknowledged said
instrument so executed to be his free act and deed in said capacity and the free
act and deed of said corporation.

                                         Notary Public
                                         My Commission Expires:

STATE OF CONNECTICUT
COUNTY OF HARTFORD

     In Whethersfield on the_____day of August, 2000, before me personally
appeared the above-named______________________________, of THE CELLULAR HOTLINE,
INC. to me known and known by me to be the party executing the foregoing
instrument on behalf of said corporation and acknowledged said instrument so
executed to be his free act and deed in said capacity and the free act and deed
of said corporation.

                                         Notary Public
                                         My Commission Expires:

COMMONWEALTH OF MASSACHUSETTS
COUNTY OF SUFFOLK

     In Boston on the______ day of August, 2000, before me personally appeared
the above-named Christopher Daniel, Vice President of CITIZENS BANK OF
MASSACHUSETTS, of Boston, Massachusetts to me known and known by me to be the
party executing the foregoing instrument on behalf of said Massachusetts Bank
and acknowledged said instrument so executed to be his free act and deed in said
capacity and the free act and deed of said Massachusetts Bank.

                                         Notary Public
                                         My Commission Expires:

                                       14<PAGE>   1
                                                                   EXHIBIT 10.23

                                                          EXECUTION COPY

                      SALE AND SERVICING AGREEMENT
                        Dated as of June 1, 2000

                                 Among

                     FIB BUSINESS LOAN TRUST 2000-A
                                (Trust),

                        FIRST INTERNATIONAL BANK
                         (Seller and Servicer)

                                  and

                           FIB HOLDINGS, INC.
                                (Seller)

                 FIB Business Loan Notes, Series 2000-A
<PAGE>   2
                           TABLE OF CONTENTS
<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
                                    ARTICLE I

                                   DEFINITIONS
<S>                                                                        <C>
Section 1.01  Definitions ............................................         2
Section 1.02  Use of Words and Phrases ...............................         2
Section 1.03  Captions; Table of Contents ............................         2

                                   ARTICLE II

                      SALE AND CONVEYANCE OF THE TRUST FUND

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

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

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

                                   ARTICLE IV

                 ADMINISTRATION AND SERVICING OF BUSINESS LOANS
</TABLE>

                                      -i-
<PAGE>   3
<TABLE>
<S>                                                                         <C>
Section 4.01  Duties of the Servicer .................................        25
Section 4.02  Liquidation of Business Loans ..........................        28
Section 4.03  Establishment of Principal and Interest Accounts;
              Deposits in Principal and Interest Accounts ............        29
Section 4.04  Permitted Withdrawals From the Applicable Principal
              and Interest Account ...................................        30
Section 4.05  [Intentionally Omitted] ................................        32
Section 4.06  Transfer of Accounts ...................................        32
Section 4.07  Maintenance of Hazard Insurance ........................        32
Section 4.08  [Intentionally Omitted] ................................        32
Section 4.09  Fidelity Bond ..........................................        32
Section 4.10  Title, Management and Disposition of Foreclosed
              Property ...............................................        33
Section 4.11  [Intentionally Omitted] ................................        34
Section 4.12  Collection of Certain Business Loan Payments ...........        34
Section 4.13  Access to Certain Documentation and Information
              Regarding the Business Loans ...........................        34

                                    ARTICLE V

                       PAYMENTS TO THE CERTIFICATEHOLDERS

Section 5.01  Establishment of Note Distribution Account;
              Deposits in Note Distribution Account; Permitted
              Withdrawals from Note Distribution Account .............        35
Section 5.02  Establishment of Spread Account; Deposits in Spread
              Account; Permitted Withdrawals from Spread Account .....        36
Section 5.03  Establishment of Expense Account; Deposits in
              Expense Account; Permitted Withdrawals from Expense
              Account ................................................        37
Section 5.04  Pre-Funding Account and Capitalized Interest Account ...        39
Section 5.05  [Intentionally Omitted] ................................        40
Section 5.06  Investment of Accounts .................................        40
Section 5.07  Distributions ..........................................        41
Section 5.08  Determination of LIBOR .................................        43
Section 5.09  Statements .............................................        44
Section 5.10  Advances by the Servicer ...............................        47
Section 5.11  Compensating Interest ..................................        47
Section 5.12  Reports of Foreclosure and Abandonment .................        48

                               ARTICLE VI

                      GENERAL SERVICING PROCEDURE

Section 6.01  [Omitted] ..............................................        49
</TABLE>

                                      -ii-
<PAGE>   4
<TABLE>
<S>                                                                         <C>
Section 6.02  Satisfaction of Mortgages and Collateral and
              Release of Business Files ..............................        49
Section 6.03  Servicing Compensation .................................        50
Section 6.04  Annual Statement as to Compliance ......................        50
Section 6.05  Annual Independent Public ..............................        51
Section 6.06  Trustee's Right to Examine Servicer Records and
              Audit Operations .......................................        51
Section 6.07  Reports to the Trustee; Principal and Interest
              Account Statements .....................................        51

                              ARTICLE VII

                   REPORTS TO BE PROVIDED BY SERVICER

Section 7.01  Financial Statements ...................................        53

                              ARTICLE VIII

                              THE SERVICER

Section 8.01  Indemnification; Third Party Claims ....................        54
Section 8.02  Merger or Consolidation of the Servicer ................        55
Section 8.03  Limitation on Liability of the Servicer and Others .....        55
Section 8.04  Servicer Not to Resign .................................        55

                               ARTICLE IX

                                DEFAULT

Section 9.01  Events of Default ......................................        57
Section 9.02  Trustee to Act; Appointment of Successor ...............        58
Section 9.03  Waiver of Defaults .....................................        60
Section 9.04. Control by Majority Noteholders ........................        60

                               ARTICLE X

                              TERMINATION

Section 10.01 Termination ............................................        62
Section 10.02 Accounting Upon Termination of Servicer ................        63

                               ARTICLE XI

                        MISCELLANEOUS PROVISIONS
</TABLE>

                                      -iii-
<PAGE>   5
<TABLE>
<S>                                                                         <C>
Section 11.01 Acts of Noteholders ....................................        64
Section 11.02 Amendment ..............................................        64
Section 11.03 Recordation of Agreement ...............................        65
Section 11.04 Duration of Agreement ..................................        65
Section 11.05 Governing Law ..........................................        65
Section 11.06 Notices ................................................        65
Section 11.07 Severability of Provisions .............................        66
Section 11.08 No Partnership .........................................        66
Section 11.09 Counterparts ...........................................        66
Section 11.10 Successors and Assigns .................................        66
Section 11.11 Headings ...............................................        66
Section 11.12 Notification to Rating Agencies ........................        66
Section 11.13 Limitation of Liability ................................        67
</TABLE>

                                      -iv-
<PAGE>   6
<TABLE>
<S>                    <C>
APPENDIX A             Definitions and Usage

                             EXHIBIT INDEX

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

                                      -v-
<PAGE>   7
      Sale and Servicing Agreement.doc Sale and Servicing Agreement dated as of
June 1, 2000, between FIB Business Loan Trust 2000-A (the "Trust"), First
International Bank, as Seller (in such capacity, the "Bank") and as Servicer (in
such capacity, the "Servicer") and FIB Holdings, Inc., as Seller ("Holdings" and
together with the Bank, the "Sellers").

                         PRELIMINARY STATEMENT

      The Trust was formed for the purpose of issuing asset backed notes and
asset backed certificates secured by the Business Loans. The Issuer has entered
into a trust indenture, dated as of June 1, 2000 (the "Indenture"), between the
Trust and the Indenture Trustee, pursuant to which the Trust intends to issue
its FIB Business Loan Notes, Series 2000-A, Adjustable Rate Class A, Adjustable
Rate Class M-1, Adjustable Rate Class M-2 and Adjustable Rate Class B in the
aggregate initial principal amounts of $56,550,000, $2,600,000, $2,600,000, and
$3,250,000, respectively (collectively, the "Notes"). Pursuant to the Indenture,
as security for the indebtedness represented by the Notes, the Issuer is and
will be pledging to the Indenture Trustee, or granting the Indenture Trustee a
security interest in, among other things, certain Business Loans and Subsequent
Business Loans and its rights under this Agreement.

      The parties desire to enter into this Agreement to provide, among other
things, for the servicing of the Business Loans by the Servicer. The Servicer
acknowledges that, in order further to secure the Notes, the Trust is and will
be granting to the Indenture Trustee a security interest in, among other things,
its rights under this Agreement, and the Servicer agrees that all covenants and
agreements made by the Servicer herein with respect to the Business Loans shall
also be for the benefit and security of the Indenture Trustee and Holders of the
Notes. For its services hereunder, the Servicer will receive a Servicing Fee (as
defined herein) with respect to each Business Loan serviced hereunder.
<PAGE>   8
                               ARTICLE I

                              DEFINITIONS

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

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

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

                               ARTICLE II

                 SALE AND CONVEYANCE OF THE TRUST FUND

            Section 2.01 Sale and Conveyance of Trust Fund.

            The Sellers hereby sell, transfer, assign, set over and convey to
the Trust without recourse, subject to the terms of this Agreement, all of the
right, title and interest of the Sellers in and to the Initial Business Loans
and all other assets included or to be included in the Trust Fund in exchange
for the Notes and the Certificates.

            Section 2.02 Possession of Business Files.

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

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

                                      -2-
<PAGE>   9
            Section 2.03 Books and Records.

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

            Section 2.04 Delivery of Business Loan Documents.

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

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

            (1) The original Business Note, endorsed by means of an allonge as
follows: "Pay to the order of HSBC Bank USA, and its successors and assigns, as
indenture trustee under that certain Indenture dated as of June 1, 2000 relating
to FIB Business Loan Trust, 2000-A, without recourse" and signed, by facsimile
or manual signature, in the name of the applicable Seller by a Responsible
Officer, with all prior and intervening endorsements showing a complete chain of
endorsement from the originator to the applicable Seller, if the applicable
Seller was not the originator provided, however that in lieu of the original
Business Note, where the original Business Note has been lost, the applicable
Seller shall deliver a lost note affidavit and, if a copy exists, a copy of the
original Business Note;

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

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

            (4) Blanket UCC-1 financing statements identifying by type all
Collateral for the Business Loans and naming the Indenture Trustee, as assignee
of the Trust, as Secured Party and the applicable Seller as the Debtor. The
UCC-1 financing statements will be filed promptly

                                      -3-
<PAGE>   10
following the Closing Date in New York and Connecticut and will be in the nature
of protective notice filings rather than true financing statements.

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

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

            (2) Either: (i) the original Assignment of Mortgage from the
applicable Seller endorsed as follows: "HSBC Bank USA ("Assignee"), its
successors and assigns, as indenture trustee under the Indenture dated as of
June 1, 2000 relating to FIB Business Loan Trust 2000-A" with evidence of
recording thereon (provided, however, that where permitted under the laws of the
jurisdiction wherein the Mortgaged Property is located, the Assignment of
Mortgage may be effected by one or more blanket assignments for Business Loans
secured by Mortgaged Properties located in the same county), or (ii) a copy of
such Assignment of Mortgage certified as a true copy by a Responsible Officer of
the applicable Seller where the original has been transmitted for recording
(provided, however, that where the original Assignment of Mortgage is not being
delivered to the Indenture Trustee, the Responsible Officer may complete one or
more blanket certificates attaching copies of one or more Assignments of
Mortgage relating to the Mortgages originated by the applicable Seller);

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

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

            The Sellers shall, within ten Business Days after the receipt
thereof, and in any event, within one year of the Closing Date (or, with respect
to the Subsequent Business Loans, the Bank shall, within one year of the related
Subsequent Transfer Date), deliver or cause to be

                                      -4-
<PAGE>   11
delivered to the Indenture Trustee: (i) the original recorded Mortgage in those
instances where a copy thereof certified by the applicable Seller was delivered
to the Indenture Trustee; (ii) the original recorded Assignment of Mortgage from
the applicable Seller to the Indenture Trustee, which, together with any
intervening assignments of Mortgage, evidences a complete chain of title from
the originator to the Indenture Trustee in those instances where copies thereof
certified by the applicable Seller were delivered to the Indenture Trustee; and
(iii) any intervening assignments of Mortgage in those instances where copies
thereof certified by the applicable Seller were delivered to the Indenture
Trustee. Notwithstanding anything to the contrary contained in this Section
2.04, in those instances where the public recording office retains the original
Mortgage, Assignment of Mortgage or the intervening assignments of the Mortgage
after it has been recorded, the applicable Seller shall be deemed to have
satisfied its obligations hereunder upon delivery to the Indenture Trustee of a
copy of such Mortgage, Assignment of Mortgage or assignments of Mortgage
certified by the public recording office to be a true copy of the recorded
original thereof. All Business Loan documents held by the Indenture Trustee as
to each Business Loan are referred to herein as the "Indenture Trustee's
Document File."

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

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

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

            (a) The Indenture Trustee shall execute and deliver on the Closing
Date (or, with respect to the Subsequent Business Loans, on the related
Subsequent Closing Date), an acknowledgment of receipt in the form attached as
Exhibit F hereto, stating that it has received, for each Business Loan, a
Business Note, and a file, and declares that the Indenture Trustee will hold
such documents and any amendments, replacements or supplements thereto, for the
benefit of the Noteholders and the Certificateholders. The Indenture Trustee
agrees, for the benefit of the Noteholders and the Certificateholders, to review
each Indenture Trustee's Document File within 90 days after the Closing Date or
Subsequent Closing Date, as the case may be, (or, with respect to any Qualified
Substitute

                                      -5-
<PAGE>   12
Business Loan, within 45 days after the assignment thereof), and to deliver to
the Sellers and the Servicer a certification in the form attached hereto as
Exhibit F-1. Within 360 days after the Closing Date (or, with respect to any
Qualified Substitute Business Loan, within 360 days after the assignment
thereof), the Indenture Trustee shall deliver to the Servicer, the Sellers, the
Rating Agencies and any Noteholder who requests a copy from the Indenture
Trustee a final certification in the form attached hereto as Exhibit F-2
evidencing the completeness of the Indenture Trustee's Document Files.

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

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

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

                                      -6-
<PAGE>   13
such instruments of transfer necessary to release all or the requested part of
the Mortgaged Property or other Collateral from the lien of the related Business
Loan.

            On the Remittance Date in March of each year commencing March 2001,
the Indenture Trustee shall deliver to the Sellers and the Servicer a
certification detailing all transactions with respect to the Business Loans for
which the Indenture Trustee holds an Indenture Trustee's Document File pursuant
to this Agreement during the prior calendar year. Such certification shall list
all Indenture Trustee's Document Files which were released by or returned to the
Indenture Trustee during the prior calendar year, the date of such release or
return and the reason for such release or return.

            Section 2.06 [Reserved].

            Section 2.07 [Reserved].

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

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

            Section 2.09 Transfer and Conveyance of the Subsequent
                         Business Loans.

            (a) Subject to the conditions set forth in paragraph (b) below, in
consideration of the Indenture Trustee's delivery on the related Subsequent
Transfer Dates to or upon the order of the Bank of all or a portion of the
balance of funds in the Pre-Funding Account, the Bank shall on any Subsequent
Transfer Date contribute, transfer, assign, set over and otherwise convey
without recourse, to the Trust all right, title and interest of the Bank in and
to each Subsequent Business Loan listed on the Business Loan Schedule delivered
by the Bank on such Subsequent Transfer Date, all its right, title and interest
in and to principal collected and interest accruing on

                                      -7-
<PAGE>   14
each such Subsequent Business Loan on and after the related Subsequent Cut-Off
Date and all its right, title and interest in and to all insurance policies;
provided, however, that the Bank reserves and retains all its right, title and
interest in and to principal (including Principal Prepayments) collected and
interest accruing on each such Subsequent Business Loan prior to the related
Subsequent Cut-Off Date. The transfer by the Bank of the Subsequent Business
Loans set forth on the Business Loan Schedule to the Trust shall be absolute and
shall be intended by all parties hereto to be treated as a contribution by the
Bank.

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

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

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

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

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

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

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

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

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

                                      -8-
<PAGE>   15
                  (viii) the Bank shall have delivered to the Rating Agencies,
            the Owner Trustee and the Indenture Trustee, Opinions of Counsel
            with respect to the transfer of the Subsequent Business Loans
            substantially in the form of the Opinions of Counsel delivered to
            the Indenture Trustee and the Owner Trustee on the Closing Date
            (bankruptcy, corporate and tax opinions);

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

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

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

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

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

            (e) In connection with each Subsequent Transfer Date, on the
Remittance Dates in July, August and September 2000 and the Special Remittance
Date, the Bank shall determine, and the Indenture Trustee shall cooperate with
the Bank in determining (i) the amount and correct dispositions of the
Capitalized Interest Requirements and the Pre-Funding Earnings and (ii) any
other necessary matters in connection with the administration of the Pre-Funding
Account and of the Capitalized Interest Account. If any amounts are incorrectly
released to the

                                      -9-
<PAGE>   16
Bank from the Capitalized Interest Account, the Bank shall immediately repay
such amounts to the Indenture Trustee.

            (f) No later than September 30, 2000, the Bank shall obtain a letter
from an independent accountant stating whether or not the characteristics of the
Subsequent Business Loans conform to the characteristics set forth herein.

            Section 2.10 Optional Purchase of Defaulted Business Loans.

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

                                      -10-
<PAGE>   17
                              ARTICLE III

                     REPRESENTATIONS AND WARRANTIES

      Section 3.01 Representations of the Bank.

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

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

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

                                      -11-
<PAGE>   18
            (c) The consummation of the transactions contemplated by this
Agreement and the other Basic Documents to which the Bank is a party will not
result in the breach of any terms or provisions of the certificate of
incorporation or by-laws of the Bank or result in the breach of any term or
provision of, or conflict with or constitute a default under or result in the
acceleration of any obligation under, any material agreement, indenture or loan
or credit agreement or other material instrument to which the Bank or its
property is subject, or result in the violation of any law, rule, regulation,
order, judgment or decree to which the Bank or its property is subject;

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

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

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

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

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

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

                                      -12-
<PAGE>   19
herein are true and correct in all material respects, and the Private Placement
Memorandum does not contain any untrue statement of a material fact with respect
to the Bank or the Business Loans and does not omit to state a material fact
necessary to make the statements contained therein with respect to the Bank or
the Business Loans not misleading in light of the circumstances under which they
were made. The Bank is not aware that the Private Placement Memorandum contains
any untrue statement of a material fact or omits to state any material fact
necessary to make the statements contained therein not misleading in light of
the circumstances under which they were made. There is no fact peculiar to the
Bank or the Business Loans and known to the Bank that materially adversely
affects or in the future may (so far as the Bank can now reasonably foresee)
materially adversely affect the Bank or the Business Loans that has not been set
forth in the Private Placement Memorandum;

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

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

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

            (m) Each Initial Business Loan listed on Schedule H-1 was, and each
Subsequent Business Loan will be, selected from among the existing business
loans in the Bank's portfolio at the date hereof or, in the case of the
Subsequent Business Loans, at the related Subsequent Cut-Off Date, in a manner
not designed to adversely affect the Noteholders or the Certificateholders;

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

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

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

            (q) The chief executive office and legal name of the Bank is as set
forth on the respective UCC-1 financing statement filed on behalf of the Bank
pursuant to Section 2.04(a)(4),

                                      -13-
<PAGE>   20
such office is the place where the Bank is "located" for the purposes of Section
9-103(3)(d) of the Uniform Commercial Code as in effect in the State of New
York, and neither the location of such office nor the legal name of the Bank has
changed in the past four months;

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

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

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

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

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

            Section 3.02      Individual Business Loans.

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

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

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

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

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

            (e)   [Intentionally Omitted];

                                      -14-
<PAGE>   21
            (f) Approximately 28.21% of the Initial Business Loans (by Principal
Balance) bear fixed rates of interest and approximately 55.13%, 9.86% and 6.79%
of the Business Loans (by Principal Balance) bear interest that adjusts monthly
based on the Prime Rate, every five years based on Five-Year CMT, and every ten
years based on Ten-Year CMT, respectively. Each Business Note will, with respect
to principal payments, provide for a schedule of Monthly Payments which are, if
timely paid, sufficient to fully amortize the principal balance of such Business
Loan on its respective maturity date;

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

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

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

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

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

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

                                      -15-
<PAGE>   22
            (m) Each Initial Business Loan was (and each Subsequent Business
Loan will be) originated and underwritten or purchased and reunderwritten by the
Bank in accordance with the underwriting criteria set forth in the Private
Placement Memorandum;

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

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

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

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

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

                                      -16-
<PAGE>   23
            (s) Each Business Loan conforms, and all such Business Loans in the
aggregate conform, to the description thereof set forth in the Private Placement
Memorandum;

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

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

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

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

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

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

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

                                      -17-
<PAGE>   24
            (aa) With respect to each Mortgage constituting a deed of trust, a
trustee, duly qualified under applicable law to serve as such, has been properly
designated and currently so serves and is named in such Mortgage, and no fees or
expenses are or will become payable by the Noteholders and/or the
Certificateholders to the trustee under the deed of trust, except in connection
with a trustee's sale after default by the Obligor;

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

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

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

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

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

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

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

                                      -18-
<PAGE>   25
            (ii) The Business Loan was not selected for inclusion under this
Agreement from the Bank's portfolio of comparable business loans on any basis
which would have a material adverse affect on a Noteholder or Certificateholder;

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

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

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

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

            Section 3.03 Purchase and Substitution of Defective Loans.

            It is understood and agreed that the representations and warranties
set forth in Sections 3.01, 3.02 and 3.04 shall survive delivery of the Notes to
the Noteholders and the Certificates to the Certificateholders. Upon discovery
by the Servicer, any Subservicer, the Owner Trustee or the Indenture Trustee of
a breach of any of such representations and warranties which materially and
adversely affects the value of the Business Loans or the interest of the Notes
and Certificates therein or which materially and adversely affects the interests
of the Notes and Certificates in the related Business Loan in the case of a
representation and warranty relating to a particular Business Loan
(notwithstanding that such representation and warranty was made to the Bank's
best knowledge), the party discovering such breach shall give prompt written
notice to the others. Within 60 days of the earlier of its discovery or its
receipt of notice of any breach

                                      -19-
<PAGE>   26
of a representation or warranty, the Bank shall (a) promptly cure such breach in
all material respects, (b) purchase such Business Loan by depositing in the
applicable Principal and Interest Account, on the next succeeding Determination
Date, an amount in the manner specified in Section 2.05(b), or (c) if within two
years of the Closing Date, remove such Business Loan from the Trust Fund (in
which case it shall become a Deleted Business Loan) and substitute one or more
Qualified Substitute Business Loans provided such substitution is effected not
later than the date which is two years after the Closing Date or at such later
date, if the Indenture Trustee receives an Opinion of Counsel that such
substitution would not constitute a Prohibited Transaction at any time the Notes
are outstanding. Any such substitution shall be accompanied by payment by the
Bank of the Substitution Adjustment, if any.

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

            The Servicer shall deposit in the applicable Principal and Interest
Account all payments of principal received in connection with such Qualified
Substitute Business Loan or Loans after the date of such substitution together
with all interest (net of the Servicing Fee). Monthly Payments received with
respect to Qualified Substitute Business Loans on or before the date of
substitution will be retained by the Bank. The Trust will own all payments
received with respect to the Deleted Business Loan on or before the date of
substitution, and the Bank shall thereafter be entitled to retain all amounts
subsequently received in respect of such Deleted Business Loan. The Servicer
shall give written notice to the Indenture Trustee that such substitution has
taken place and shall amend the Business Loan Schedule to reflect the removal of
such Deleted Business Loan from the terms of this Agreement and the substitution
of the Qualified Substitute Business Loan or Loans. Upon such substitution, such
Qualified Substitute Business Loan or Loans shall be subject to the terms of
this Agreement in all respects, including Sections 2.04 and 2.05, and the Bank
shall be deemed to have made with respect to such Qualified Substitute Business
Loan or Loans, as of the date of substitution, the covenants, representations
and warranties set forth in Sections 3.01, 3.02 and 3.04. On the date of such
substitution, the Bank will remit to the Servicer, and the Servicer will deposit
into the applicable Principal and Interest Account an amount equal to the
Substitution Adjustment.

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

                                      -20-
<PAGE>   27
the Indenture Trustee and the Owner Trustee as provided in Sections 2.05 and
3.03 constitute the sole remedies of the Indenture Trustee, the Noteholders, the
Certificateholders and the Owner Trustee, respecting a breach of the foregoing
representations and warranties.

            Any cause of action against the Servicer or the Bank relating to or
arising out of the breach of any representations and warranties made in Sections
2.05, 3.01 or 3.02 shall accrue as to any Business Loan upon (i) discovery of
such breach by any party and notice thereof to the Bank and or notice thereof by
the Bank to the Indenture Trustee, (ii) failure by the Bank to cure such breach
or purchase or substitute such Business Loan as specified above, and (iii)
demand upon the Bank by the Indenture Trustee for all amounts payable hereunder
in respect of such Business Loan.

            Section 3.04 Representations of Holdings

            Holdings hereby represents and warrants to the Trustee and the
Noteholders as of the Closing Date:

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

            (b) All actions, approvals, consents, waivers, exemptions,
variances, franchises, orders, permits, authorizations, rights and licenses
required to be taken, given or obtained, as the case may be, by or from any
federal, state or other governmental authority or agency (other than any such
actions, approvals, etc., under any state securities laws, real estate
syndication or "Blue Sky" statutes, as to which Holdings makes no such
representation or warranty), that are necessary or advisable in connection with
the purchase and sale of the Notes and the execution and delivery by Holdings of
the documents to which it is a party, have been

                                      -21-
<PAGE>   28
duly taken, given or obtained, as the case may be, are in full force and effect
on the date hereof, are not subject to any pending proceedings or appeals
(administrative, judicial or otherwise) and either the time within which any
appeal therefrom may be taken or review thereof may be obtained has expired or
no review thereof may be obtained or appeal therefrom taken, and are adequate to
authorize the consummation of the transactions contemplated by this Agreement
and each other Basic Document to which it is a party and the other documents on
the part of Holdings and the performance by Holdings of its obligations under
this Agreement and the other Basic Documents to which it is a party;

            (c) Holdings has good and marketable title to each Business Loan
listed on Exhibit H-2 free and clear of any lien (other than liens to be
released upon consummation of the transactions contemplated hereby) and Holdings
has the authority to sell the Business Loans listed on Exhibit H-2 to the Trust
as contemplated in this Agreement;

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

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

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

            (g) Holdings received fair consideration and reasonably equivalent
value in

                                      -22-
<PAGE>   29
exchange for the sale of the Business Loans listed on Exhibit H-2;

            (h) All requisite action has been taken by Holdings to make this
Agreement valid, binding and enforceable upon Holdings in accordance with its
terms, subject to the effect of bankruptcy, insolvency, reorganization,
moratorium and other similar laws relating to or affecting creditors' rights
generally or the application of equitable principles in any proceeding, whether
at law or in equity, none of which will affect the ownership of the Business
Loans by the Trust;

            (i) The consummation of the transactions contemplated by this
Agreement will not result in the breach of any terms or provisions of the
Certificate of Incorporation of By-Laws of Holdings or result in the breach of
any term or provision of, or conflict with or constitute a default under or
result in the acceleration of any obligation under, any material agreement,
indenture or loan or credit agreement or other material instrument to which
Holdings or its property is subject, or result in the violation of any law,
rule, regulation, order, judgment or decree to which Holdings or its property is
subject;

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

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

            (l) Holdings is solvent, and Holdings will not be rendered insolvent
as a result of the transfer of the Business Loans to the Trust;

            (m) The chief executive office and legal name of Holdings is as set
forth on the respective UCC-1 financing statement filed on behalf of Holdings
pursuant to Section 2.04(i), such office is the place where Holdings is
"located" for the purposes of Section 9-103(3)(d) of the Uniform Commercial Code
as in effect in the State of New York, and neither the location of such office
nor the legal name of Holdings has changed in the past four months;

            (n) Holdings has filed all required tax returns on a timely basis;

                                      -23-
<PAGE>   30
            (o) The pension or profit sharing plans of Holdings and all
consolidated subsidiaries have been fully funded in accordance with Holdings's
obligations;

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

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

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

                                      -24-
<PAGE>   31
                              ARTICLE IV.

             ADMINISTRATION AND SERVICING OF BUSINESS LOANS

            Section 4.01 Duties of the Servicer.

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

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

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

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

                                      -25-
<PAGE>   32
Indenture Trustee shall be deemed to have assumed all of the Servicer's interest
therein and to have replaced the Servicer as a party to each Subservicing
Agreement to the same extent as if the Subservicing Agreements had been assigned
to the assuming party, except that the Servicer shall not thereby be relieved of
any liability or obligations under the Subservicing Agreements. The Servicer at
its expense and without right of reimbursement therefor, shall, upon request of
the Indenture Trustee, deliver to the assuming party all documents and records
relating to each Subservicing Agreement and the Business Loans then being
serviced and an accounting of amounts collected and held by it and otherwise use
its best efforts to effect the orderly and efficient transfer of the
Subservicing Agreements to the assuming party.

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

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

            (g) On and after such time as the Indenture Trustee and the Trust
receive the resignation of, or notice of the removal of, the Servicer from its
rights and obligations under this

                                      -26-
<PAGE>   33
Agreement, and with respect to resignation pursuant to Section 8.04, after
receipt of the Opinion of Counsel required pursuant to Section 8.04 addressed to
the Indenture Trustee, the Indenture Trustee or its designee shall assume all of
the rights and obligations of the Servicer, subject to Section 9.02 hereof. The
Servicer shall, upon request of the Indenture Trustee but at the expense of the
Servicer, deliver to the Indenture Trustee all documents and records (including
computer tapes and diskettes) relating to the Business Loans and an accounting
of amounts collected and held by the Servicer and otherwise use its best efforts
to effect the orderly and efficient transfer of servicing rights and obligations
to the assuming party.

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

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

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

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

                                      -27-
<PAGE>   34
            (l) The Servicer shall maintain appropriate books of account and
records relating to services performed under this Agreement, which books of
account and records shall be accessible for inspection by the Owner Trustee at
any time during normal business hours.

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

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

            Section 4.02 Liquidation of Business Loans.

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

                                      -28-
<PAGE>   35
            After a Business Loan has become a Liquidated Business Loan, the
Servicer shall promptly prepare and forward to the Indenture Trustee and upon
request, any Noteholder or Certificateholder, a Liquidation Report, in the form
attached hereto as Exhibit J, detailing the Liquidation Proceeds received from
the Liquidated Business Loan, expenses incurred with respect thereto, and any
loss incurred in connection therewith.

            Section 4.03 Establishment of Principal and
                         Interest Accounts; Deposits in
                         Principal and Interest Accounts.

            (a) The Servicer shall cause to be established and maintained one or
more Principal and Interest Accounts, in one or more Eligible Deposit Accounts,
in the form of time deposit or demand accounts, which may be interest-bearing or
such accounts may be trust accounts wherein the moneys therein are invested in
Permitted Instruments, titled "First International Bank, as Servicer, in trust
for the registered holders of FIB Business Loan Notes, Series 2000-A." All funds
in such Principal and Interest Accounts shall be insured by the BIF or SAIF
administered by the FDIC to the maximum extent provided by law. The creation of
any Principal and Interest Account shall be evidenced by a letter agreement in
the form of Exhibit C hereto.

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

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

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

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

                  (iii) all Net Liquidation Proceeds;

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

                                      -29-
<PAGE>   36
                  (v) all Released Mortgaged Property Proceeds and any other
            proceeds from any other released property securing the Business
            Loans;

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

                  (vii) any amount required to be deposited in the Principal and
            Interest Account pursuant to Section 4.04 or 4.10; and

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

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

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

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

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

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

            (b) to reimburse itself for any accrued unpaid Servicing Fees,
unreimbursed Monthly Advances and for unreimbursed Servicing Advances to the
extent deposited in the Principal and Interest Account (and not netted from
Monthly Payments received). The Servicer's

                                      -30-
<PAGE>   37
right to reimbursement for unpaid Servicing Fees and, except as provided in the
following sentence, Servicing Advances and Monthly Advances shall be limited to
Liquidation Proceeds, Released Mortgaged Property Proceeds, Insurance Proceeds
and such other amounts as may be collected by the Servicer from the Obligor or
otherwise relating to the Business Loan in respect of which such unreimbursed
amounts are owed. The Servicer's right to reimbursement for Servicing Advances
and Monthly Advances in excess of such amounts shall be limited to any late
collections of interest received on the Business Loans generally, including
Liquidation Proceeds, Released Mortgaged Property Proceeds, Insurance Proceeds
and any other amounts; provided, however, that the Servicer's right to such
reimbursement pursuant hereto shall be subordinate to the rights of the
Noteholders and may be exercised only if the Spread Balance equals the then
applicable Specified Spread Account Requirement;

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

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

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

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

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

            So long as no default or Servicer Termination Event shall have
occurred and be continuing, and consistent with any requirements of the Code,
the Principal and Interest Accounts shall either be maintained with an Eligible
Deposit Account as an interest-bearing account meeting the requirements set
forth in Section 4.03(a), or the funds held therein may be invested by the
Servicer (to the extent practicable) in Permitted Instruments, as directed in
writing by the Servicer. In either case, funds in the Principal and Interest
Account must be available for withdrawal without penalty, and any Permitted
Instruments must mature not later than the Business Day immediately preceding
the Determination Date next following the date of such investment (except that
if such Permitted Instrument is an obligation of the institution that maintains
such account, then such Permitted Instrument shall mature not later than such
Determination Date) and shall not be sold or disposed of prior to its maturity.
All Permitted Instruments must be held by or registered in the name of "First
International Bank, as Servicer, in trust for the registered holders of FIB
Business Loan Notes, Series 2000-A." All interest or other

                                      -31-
<PAGE>   38
earnings from funds on deposit in the Principal and Interest Account (or any
Permitted Instruments thereof) shall be the exclusive property of the Servicer,
and may be withdrawn from the Principal and Interest Account pursuant to clause
(d) above. The amount of any losses incurred in connection with the investment
of funds in the Principal and Interest Account in Permitted Instruments shall be
deposited in the Principal and Interest Account by the Servicer from its own
funds immediately as realized without reimbursement therefor.

            Section 4.05 [Intentionally Omitted]

            Section 4.06 Transfer of Accounts.

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

            Section 4.07 Maintenance of Hazard Insurance.

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

            Section 4.08 [Intentionally Omitted].

            Section 4.09 Fidelity Bond.

                                      -32-
<PAGE>   39
            The Servicer shall maintain with a responsible company, and at its
own expense, a blanket fidelity bond and an errors and omissions insurance
policy, in a minimum amount equal to $1,500,000,and a maximum deductible of
$100,000, if commercially available, with coverage on all employees acting in
any capacity requiring such persons to handle funds, money, documents or papers
relating to the Business Loans ("Servicer Employees"). The fidelity bond shall
insure the Indenture Trustee and the Owner Trustee, their respective officers
and employees against losses resulting from forgery, theft, embezzlement or
fraud by such Servicer Employees. The errors and omissions policy shall insure
against losses resulting from the errors, omissions and negligent acts of such
Servicer employees. No provision of this Section 4.09 requiring such fidelity
bond and errors and omissions insurance shall relieve the Servicer from its
duties as set forth in this Agreement. Upon the request of the Indenture
Trustee, the Owner Trustee or any Noteholder or Certificateholder, the Servicer
shall cause to be delivered to the Indenture Trustee, Owner Trustee or such
Noteholder or such Certificateholder a certified true copy of such fidelity bond
and insurance policy. The current issuer of such fidelity bond and insurance
policy is The Hartford Underwriters Insurance Company.

            Section 4.10 Title, Management and Disposition of Foreclosed
                         Property.

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

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

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

            The disposition of Foreclosed Property shall be carried out by the
Servicer at such price, and upon such terms and conditions, as the Servicer,
deems to be in the best interest of the Noteholders and the Certificateholders.
The proceeds of sale of the Foreclosed Property shall promptly, but in no event
later than two Business Days after receipt, be deposited in the Principal and
Interest Account as received from time to time and, as soon as practicable
thereafter, the

                                      -33-
<PAGE>   40
expenses of such sale shall be paid, the Servicer shall, subject to Section
4.04, reimburse itself for any related unreimbursed Servicing Advances, unpaid
Servicing Fees and unreimbursed Monthly Advances, and the Servicer shall deposit
in the Principal and Interest Account the net cash proceeds of such sale to be
distributed to the Noteholders in accordance with Section 5.07 hereof.

            Section 4.11 [Intentionally Omitted].

            Section 4.12 Collection of Certain Business Loan Payments.

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

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

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

                                      -34-
<PAGE>   41
                               ARTICLE V

                   PAYMENTS TO THE CERTIFICATEHOLDERS

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

            (a) No later than the Closing Date, the Indenture Trustee will
establish and maintain with itself in its trust department a trust account,
which shall not be interest-bearing, titled "Note Distribution Account, HSBC
Bank USA, as Indenture Trustee for the registered holders of FIB Business Loan
Notes, Series 2000-A" (the " Note Distribution Account"). The Indenture Trustee
shall, promptly upon receipt, deposit in the Note Distribution Account and
retain therein:

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

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

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

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

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

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

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

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

                                      -35-
<PAGE>   42
                  (iii) by the Indenture Trustee, to withdraw any amount not
            required to be deposited in the Note Distribution Account or
            deposited therein in error; and

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

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

            (a) No later than the Closing Date, the Indenture Trustee will
establish and maintain with itself in its trust department a trust account,
which shall not be interest bearing, titled "Spread Account, HSBC Bank USA, as
Indenture Trustee for the registered holders of FIB Business Loan Notes, Series
2000-A" (the "Spread Account"). The Spread Account shall constitute part of the
Trust Fund, and the funds held therein may be invested in Permitted Instruments.
On the Closing Date, the Indenture Trustee will make an initial cash deposit
from the proceeds of the sale of the Class A, Class M-1 and Class M-2 Notes into
the Spread Account in an amount equal to $3,900,000. Thereafter, on each
Remittance Date, the Indenture Trustee shall, promptly upon receipt, deposit
into the Spread Account:

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

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

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

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

                                      -36-
<PAGE>   43
                  (ii) to deposit in the Note Distribution Account the amount,
            if any, required to make the full distribution to the Expense
            Account pursuant to Section 5.07(b)(vii); and

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

and also, in no particular order of priority:

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

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

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

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

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

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

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

                                      -37-
<PAGE>   44
                  (i) on each Remittance Date from the amounts on deposit in the
            Note Distribution Account an amount equal to one-twelfth of the
            Annual Expense Escrow Amount; and

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

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

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

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

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

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

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

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

                                      -38-
<PAGE>   45
                  (i) reimburse the Servicer and/or the Bank, for reimbursable
            advances made pursuant to Section 8.01;

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

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

            Section 5.04 Pre-Funding Account and Capitalized Interest Account

            (a) No later than the Closing Date, the Indenture Trustee shall
establish and maintain in its trust department a trust account, which shall not
be interest-bearing, titled "FIB Business Loan Pre-Funding Account 2000-A" (the
"Pre-Funding Account"). The Pre-Funding Account shall constitute part of the
Trust Fund and may only be invested in Permitted Investments. The Indenture
Trustee shall, promptly upon receipt, deposit into the Pre-Funding Account and
retain therein the Original Pre-Funded Amount in an amount equal to the sum of
$19,065,235.85 from the proceeds of the sale of the Class A Notes.

            (b) On each Subsequent Transfer Date, the Servicer shall instruct
the Indenture Trustee to withdraw from the Pre-Funding Account an amount equal
to 100% of the aggregate Principal Balances of the Subsequent Business Loans
sold to the Trust Fund on such Subsequent Transfer Date and pay such amount to
or upon the order of the Bank with respect to such transfer. In no event shall
the Servicer be permitted to instruct the Indenture Trustee to release from the
Pre-Funding Account in excess of $19,065,235.85.

            (c) If at the end of the Funding Period amounts still remain in the
Pre-Funding Account, the Servicer shall instruct the Indenture Trustee to
withdraw from the Pre-Funding Account on the immediately following Remittance
Date and deposit such amounts in the Note Distribution Account. However, if at
the close of business on the Determination Date in September 2000 amounts still
remain in the Pre-Funding Account, the Servicer shall instruct the Indenture
Trustee to withdraw from the Pre-Funding Account on the Special Remittance Date
and deposit in the Note Distribution Account any Pre-Funded Amount then
remaining in the Pre-Funding Account.

            (d) On the Remittance Dates occurring in July, August and September
2000, the Indenture Trustee shall transfer from the Pre-Funding Account to the
Note Distribution Account, the Pre-Funding Earnings, if any, applicable to each
such Remittance Date.

            (e) No later than the Closing Date, the Indenture Trustee shall
establish and maintain in its trust department a trust account which shall not
be interest-bearing, titled "FIB

                                      -39-
<PAGE>   46
Business Loan Capitalized Interest Account 2000-A" (the "Capitalized Interest
Account"). The Capitalized Interest Account shall constitute part of the Trust
Fund and may only be invested in Permitted Investments. The Indenture Trustee
shall, promptly upon receipt, deposit into the Capitalized Interest Account
$199,618.10. If prior to the end of the Funding Period the funds on deposit in
the Pre-Funding Account are invested in a guaranteed investment contract,
repurchase agreement or other arrangement acceptable to the Rating Agencies,
that constitutes a Permitted Instrument, the Indenture Trustee shall, within one
Business Day of its receipt of notification of satisfaction of the Rating Agency
Condition, withdraw from the Capitalized Interest Account and pay to the Bank
the amount set forth in such notification.

            (f) On the Remittance Dates occurring in July, August and September,
2000, the Indenture Trustee shall transfer from the Capitalized Interest Account
to the Note Distribution Account, the Capitalized Interest Requirement, if any,
for such Remittance Dates.

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

            Section 5.05 [Intentionally Omitted]

            Section 5.06 Investment of Accounts.

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

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

                                      -40-
<PAGE>   47
            (c) The Indenture Trustee shall not in any way be held liable by
reason of any insufficiency in any Account held by the Indenture Trustee
resulting from any investment loss on any Permitted Instrument included therein
(except to the extent that the Indenture Trustee is the obligor thereon).

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

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

            Section 5.07 Distributions.

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

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

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

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

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

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

                                      -41-
<PAGE>   48
             (v) fifth, to the Class A Noteholders, in an amount up to the sum
of (a) the Class A Principal Distribution Amount for the Class A Notes and (b)
the Class Carry Forward Amount for the Class A Notes;

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

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

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

             (ix) ninth, to the Expense Account in an amount up to one-twelfth
of the Annual Expense Escrow Amount plus any amount required to be paid to the
Owner Trustee and the Indenture Trustee pursuant to this Agreement;

             (x) tenth, to the Servicer, amounts reimbursable pursuant to this
Sale and Servicing Agreement;

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

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

             (xiii) thirteenth, to the Class M-1 Noteholders, the Class Carry
Forward Interest Amount for the Class M-1 Notes;

             (xiv) fourteenth, to the Class M-2 Noteholders, the Class Carry
Forward Interest Amount for the Class M-2 Notes;

             (xv) fifteenth, to the Class B Noteholders, the Class Carry Forward
Interest Amount for the Class B Notes

             (xvi) sixteenth, to the Class A Noteholders, any Interest Carryover
for the Class A Notes;

                                      -42-
<PAGE>   49
             (xvii) seventeenth, to the Class M-1 Noteholders, any Interest
Carryover for the Class M-1 Notes;

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

             (xix) nineteenth, to the Class B Noteholders, any Interest
Carryover for the Class B Notes; and

             (xx) twentieth, to the Owner Trustee, for distribution to the
Certificateholders, any excess.

            Additionally, on the Special Remittance Date, the Indenture Trustee
shall withdraw from the Note Distribution Account the amount, if any, deposited
therein pursuant to Section 5.01(a)(v) and make distributions thereof to
Noteholders as follows: (i) from amounts transferred from the Pre-Funding
Account, distributions of principal to the Notes of each Class pro rata based
upon the applicable Class A, Class M-1, Class M-2 and Class B Percentages and
(ii) from amounts transferred from the Capitalized Interest Account,
distributions of interest to the Holders of each Class of Notes equal to the
Capitalized Interest Requirement.

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

            Section 5.08 Determination of LIBOR.

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

      On each LIBOR Rate Adjustment Date, LIBOR shall be established by the
Servicer and, as to any Interest Accrual Period, will equal the rate for one
month United States dollar deposits that appears on the Telerate Screen Page
3750 as of 11:00 a.m., London time, on such LIBOR Rate Adjustment Date.
"Telerate Screen Page 3750" means the display designated as page 3750 on the
Bridge Telerate Service (or such other page as may replace page 3750 on that
service) for the purpose of displaying London interbank offered rates of major
banks). If such rate does not appear on such page (or such other page as may
replace that page on that service), or if such service is no longer offered,
LIBOR, shall be so established by use of such other service for displaying LIBOR
or comparable rates as may be selected by the Servicer, the rate will be the
Reference Bank Rate. The "Reference Bank Rate" will be determined on the basis
of the rates at

                                      -43-
<PAGE>   50
which deposits in U.S. Dollars are offered by the reference banks (which shall
be any three major banks that are engaged in transactions in the London
interbank market, selected by the Servicer) as of 11:00 a.m., London time, on
the LIBOR Rate Adjustment Date to prime banks in the London interbank market for
a period of one month in amounts approximately equal to the Class Principal
Balance of the Notes then outstanding. The Servicer will request the principal
London office of each of the reference banks to provide a quotation of its rate.
If at least two such quotations are provided, the rate will be the arithmetic
mean of the quotations rounded up to the next multiple of 1/16%. If on such date
fewer than two quotations are provided as requested, the rate will be the
arithmetic mean of the rates quoted by one or more major banks in New York City,
selected by the Servicer, as of 11:00 a.m., New York City time, on such date for
loans in U.S. Dollars to leading European banks for a period of one month in
amounts approximately equal to the Class Principal Balance of the Notes then
outstanding. If no such quotations can be obtained, the rate will be LIBOR for
the prior Distribution Date.

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

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

            Section 5.09 Statements.

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

            (i)   Available Funds for the related Remittance Date;

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

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

                                      -44-
<PAGE>   51
            (iv) The amount of all Curtailments which were received during the
Due Period;

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

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

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

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

            (ix) The Interest Distribution Amounts and Principal Distribution
Amounts for each Class for the Remittance Date with the components thereof
stated separately;

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

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

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

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

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

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

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

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

                                      -45-
<PAGE>   52
            (xviii) If the Class Remittance Rate for a Class of Notes for such
Remittance Date is based on the Net Interest Cap, the amount of any Interest
Carryover for such Class of Notes for such Remittance Date;

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

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

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

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

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

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

            (b) Upon reasonable advance notice in writing, the Servicer will
provide to each Noteholder or Certificateholder which is a savings and loan
association, bank or insurance company certain reports and access to information
and documentation regarding the Business

                                      -46-
<PAGE>   53
Loans sufficient to permit such Noteholder or Certificateholder to comply with
applicable regulations of the Office of Thrift Supervision or other regulatory
authorities with respect to investment in the Notes or Certificates, as
applicable.

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

            Section 5.10 Advances by the Servicer.

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

            Section 5.11 Compensating Interest.

            Each Class of Notes shall be entitled to a full month's interest on
the principal portion of each Business Loan at the then applicable Class A,
Class M-1, Class M-2 or Class B Remittance Rate for such Class, as the case may
be. Not later than the close of business on each Determination Date, with
respect to each Business Loan for which a Principal Prepayment or Curtailment
was received during the related Due Period, the Servicer shall remit to the
Indenture Trustee for deposit in the Note Distribution Account from amounts
otherwise payable to it as servicing compensation, an amount (such amount
required to be delivered to the Indenture

                                      -47-
<PAGE>   54
Trustee is referred to herein as "Compensating Interest") (as indicated in the
Servicer's Certificate prepared pursuant to Section 5.09) equal to the
difference between (a) 30 days' interest at the Adjusted Business Loan
Remittance Rate on the Principal Balance of each related Business Loan as of the
beginning of the Due Period applicable to the Remittance Date on which such
amount will be distributed, and (b) the amount of interest actually received on
each such Business Loan for such Due Period net of the Servicing Fee, and the
fees and expenses of the Owner Trustee and the Indenture Trustee allocable to
such interest.

            Section 5.12 Reports of Foreclosure and Abandonment of Mortgaged
                         Property

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

                                      -48-
<PAGE>   55
                                   ARTICLE VI

                           GENERAL SERVICING PROCEDURE

            Section 6.01 [Intentionally Omitted]

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

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

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

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

                                      -49-
<PAGE>   56
Upon receipt of a certificate of a Servicing Officer stating that such Business
Loan was liquidated, the servicing receipt shall be released by the Indenture
Trustee to the Servicer.

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

            Section 6.03 Servicing Compensation.

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

            Section 6.04 Annual Statement as to Compliance.

                                      -50-
<PAGE>   57
            The Servicer will deliver to the Indenture Trustee, the Rating
Agencies and the Owner Trustee on or before March 31 of each year beginning
March 31, 2001, an Officer's Certificate stating that (i) the Servicer has fully
complied with the provisions of Articles IV, V, VI and VII, (ii) a review of the
activities of the Servicer during the preceding calendar year and of performance
under this Agreement has been made under such officers' supervision, and (iii)
to the best of such officers' knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement throughout such year, or, if
there has been a default in the fulfillment of any such obligation, specifying
each such default known to such officers and the nature and status thereof
including the steps being taken by the Servicer to remedy such default.

            Section 6.05 Annual Independent Public Accountants' Servicing Report

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

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

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

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

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

                                      -51-
<PAGE>   58
and the amount of any Monthly Advances or payments of Compensating Interest, in
each case, for the related Due Period.

                                      -52-
<PAGE>   59
                                   ARTICLE VII

                       REPORTS TO BE PROVIDED BY SERVICER

            Section 7.01 Financial Statements.

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

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

                                      -53-
<PAGE>   60
                                  ARTICLE VIII

                                  THE SERVICER

            Section 8.01 Indemnification; Third Party Claims.

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

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

                                      -54-
<PAGE>   61
            Section 8.02 Merger or Consolidation of the Servicer.

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

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

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

            Section 8.03 Limitation on Liability of the Servicer and Others.

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

            Section 8.04 Servicer Not to Resign.

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

                                      -55-
<PAGE>   62
Condition (in which case the Person resulting from the merger, conversion or
consolidation shall be the successor of the Servicer), or (iii) in connection
with an assignment permitted pursuant to Section 8.02 and upon satisfaction of
the Rating Agency Condition (in which case the Assignee shall be the successor
of the Servicer) or (iv) upon the determination that the Servicer's duties
hereunder are no longer permissible under applicable law or administrative
determination and such incapacity cannot be cured by the Servicer. Any such
determination permitting the resignation of the Servicer shall be evidenced by a
written Opinion of Counsel (who may be counsel for the Servicer) to such effect
delivered to the Indenture Trustee and the Owner Trustee, which Opinion of
Counsel shall be in form and substance acceptable to the Indenture Trustee and
the Owner Trustee. No such resignation shall become effective until a successor
has assumed the Servicer's responsibilities and obligations hereunder in
accordance with Section 9.02.

                                      -56-
<PAGE>   63
                                   ARTICLE IX

                              SERVICER TERMINATION

            Section 9.01 Servicer Termination Events.

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

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

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

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

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

                                      -57-
<PAGE>   64
                  (v) the Servicer shall admit in writing its inability to pay
            its debts as they become due, file a petition to take advantage of
            any applicable insolvency or reorganization statute, make an
            assignment for the benefit of its creditors, or voluntarily suspend
            payment of its obligations;

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

            Section 9.02 Indenture Trustee to Act; Appointment of Successor

            On and after the time of the Servicer's immediate termination, or
the Servicer's receipt of notice if required by Section 9.01, or at any time if
the Indenture Trustee receives the resignation of the Servicer evidenced by an
Opinion of Counsel pursuant to Section 8.04 or the Servicer is removed as
Servicer pursuant to this Article IX, the Indenture Trustee shall be the

                                      -58-
<PAGE>   65
successor in all respects to the Servicer in its capacity as Servicer under this
Agreement and the transactions set forth or provided for herein and shall be
subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof; provided, however,
that the Indenture Trustee shall not be liable for any actions of any Servicer
prior to it, and that the Indenture Trustee shall not be obligated to make
advances or payments pursuant to Sections 4.03, 4.10, 5.03, 5.10 or 5.11 but
only to the extent the Indenture Trustee determines reasonably and in good faith
that such advances would not be recoverable, such determination to be evidenced
with respect to each such advance by a certification of a Responsible Officer of
the Indenture Trustee. As compensation therefor, the Indenture Trustee shall be
entitled to all funds relating to the Business Loans which the Servicer would
have been entitled to receive from the Principal and Interest Account pursuant
to Section 4.04 if the Servicer had continued to act as Servicer hereunder,
together with other servicing compensation in the form of assumption fees, late
payment charges or otherwise as provided in Sections 5.01 and 5.03.

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

                                      -59-
<PAGE>   66
Indenture Trustee or such successor servicer, as applicable, all documents and
records reasonably requested by it to enable it to assume the Servicer's
functions hereunder and shall promptly also transfer to the Indenture Trustee or
such successor servicer, as applicable, all amounts which then have been or
should have been deposited in the Principal and Interest Account or Spread
Account by the Servicer or which are thereafter received with respect to the
Business Loans. Neither the Indenture Trustee nor any other successor servicer
shall be held liable by reason of any failure to make, or any delay in making,
any distribution hereunder or any portion thereof caused by (i) the failure of
the Servicer to deliver, or any delay in delivering, cash, documents or records
to it, or (ii) restrictions imposed by any regulatory authority having
jurisdiction over the Servicer hereunder. No appointment of a successor to the
Servicer hereunder shall be effective until written notice of such proposed
appointment shall have been provided by the Indenture Trustee to each Noteholder
and Certificateholder and the Indenture Trustee shall have consented thereto.
The Indenture Trustee shall not resign as servicer until a successor servicer
has been appointed.

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

            Section 9.03 Waiver of Defaults.

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

            Section 9.04. Control by Majority Noteholders.

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

                                      -60-
<PAGE>   67
                  (i) such direction shall not be in conflict with any rule of
            law or with this Agreement;

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

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

                                      -61-
<PAGE>   68
                                    ARTICLE X

                                   TERMINATION

            Section 10.01 Termination.

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

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

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

                                      -62-
<PAGE>   69
to Noteholders. Any obligation of the Servicer to pay amounts due to the
Indenture Trustee shall survive the termination of this Agreement.

            Section 10.02 Accounting Upon Termination of Servicer

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

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

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

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

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

                                      -63-
<PAGE>   70
                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

            Section 11.01 Acts of Noteholders.

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

            Section 11.02 Amendment.

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

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

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

                                      -64-
<PAGE>   71
            Section 11.03 Recordation of Agreement.

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

            Section 11.04 Duration of Agreement.

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

            SECTION 11.05 GOVERNING LAW.

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

            Section 11.06 Notices.

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

                                      -65-
<PAGE>   72
the receipt of such notice by such party, except that notices to the Noteholders
shall be effective upon mailing or personal delivery.

            Section 11.07 Severability of Provisions.

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

            Section 11.08 No Partnership.

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

            Section 11.09 Counterparts.

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

            Section 11.10 Successors and Assigns.

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

            Section 11.11 Headings.

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

            Section 11.12 Notification to Rating Agencies.

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

                                      -66-
<PAGE>   73
            Section 11.13. Limitation of Liability.

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

                   [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                      -67-
<PAGE>   74
            IN WITNESS WHEREOF, the Sellers, the Servicer and the Trust have
caused their names to be signed hereto by their respective officers thereunto
duly authorized as of the day and year first above written.

                                 FIRST INTERNATIONAL BANK
                                    as Seller and Servicer

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

                                 FIB HOLDINGS, INC.
                                    as Seller

                                 By:   /s/Ted Horan
                                       ------------------------
                                       Name:  Ted Horan
                                       Title: Vice President

                                 FIB BUSINESS LOAN TRUST 2000-A,

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

                                 By:   /s/Patricia A. Evans
                                       ------------------------
                                       Name:  PATRICIA A. EVANS
                                       Title: Senior Financial Services Officer

                                      -68-
<PAGE>   75
                                 Accepted and Agreed to:

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

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

                                      -69-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]