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EXHIBIT 10.10    
    

FALCON FINANCIAL, LLC  

 FOURTH AMENDMENT TO

AMENDED AND RESTATED SENIOR SUBORDINATED LOAN AGREEMENT  

        This FOURTH AMENDMENT TO AMENDED AND RESTATED SENIOR SUBORDINATED LOAN AGREEMENT (this
"Fourth Amendment") is dated as of October 29, 2001 and entered into by and among Falcon Financial, LLC
("Company"), SunAmerica Life Insurance Company ("SunAmerica") and Goldman Sachs Mortgage Company
("Goldman Sachs"; and together with SunAmerica, "Lenders") and is made with reference to the Amended and
Restated Senior Subordinated Loan Agreement dated as of January 7, 1998 by and among the parties hereto (as amended, the "Loan Agreement").
Capitalized terms used herein without definition shall have the same meanings set forth in the Loan Agreement. 

        WHEREAS, the parties hereto have entered into the First Amendment to the Loan Agreement as of June 8, 1998 (the
"First Amendment"), which increased the amount available under the facility for Working Capital Loans; 

        WHEREAS, the parties hereto have entered into the Second Amendment to the Loan Agreement as of October 2, 1998 (the
"Second Amendment"), which added new definitions to, and amended and restated existing definitions in, Section 1.1 of the Loan Agreement and
amended certain other sections of the Loan Agreement to provide for the financing of mortgage loans under the Loan Agreement; 

        WHEREAS, the parties hereto have entered into the Amendment to the Loan Agreement as of April 9, 1999 (the
"Third Amendment"), which reflected an increase in the working capital facility and the existence of the Junior Subordinated Loan Agreement, as amended; 

        WHEREAS, the parties to the Warehouse Agreement have entered into the Fourth Amendment to the Warehouse Agreement of even date herewith to
provide for certain amendments to the Warehouse Agreement; 

        WHEREAS, as of the date hereof, the aggregate outstanding principal amount of the borrowings under the Junior Subordinated Loan Agreement
(without regard to the principal amount of the note evidencing the interest capitalized with respect to the borrowings under the Junior Subordinated Loan Agreement) is no less than $300,000; 

        WHEREAS, Company desires that the Lenders extend Company Bridge Loans (as defined herein) on the terms and conditions provided for in this
Fourth Amendment and the Loan Agreement. 

        WHEREAS, Lenders desire to extend Company Bridge Loans on the terms and conditions provided for in this Fourth Amendment and the Loan
Agreement. 

        WHEREAS, the parties hereto disclaim any intent to effect a novation or an extinguishment or discharge of any liability or obligation
under the Loan Agreement arising prior to the date of this Fourth Amendment; 

        NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth herein, the parties hereto agree as
follows: 

Section 1.    AMENDMENTS TO THE LOAN AGREEMENT.    

1.1    Additional Definitions.    Section 1.1 of the Loan Agreement is
amended by adding the following definitions thereto in appropriate alphabetical order: 

        "Acquisition Bridge Loan Termination Date" means the earlier of (i) the consummation of the first Securitization Transaction after
the date of the Fourth Amendment and (ii) June 30, 2002. 

        "Bridge Loan" means a Loan in the aggregate amount of up to $6,000,000 (each of SunAmerica and Goldman Sachs to loan up to $3,000,000 in
equal amounts), the proceeds of 

 

which
shall be classified as follows: up to $2,250,000 shall be designated by Company as Acquisition Loans (each, an "Acquisition Bridge Loan") and up
to $3,750,000 shall be designated by Company as Hedge Loans, Interest Shortfall Loans or Working Capital Loans (or any combination thereof) (each, an "Other Bridge
Loan"). 

        "Bridge Notes" means the promissory notes issued with respect to a Bridge Loan. 

        "Collection" has meaning assigned to that term in the Warehouse Agreement. 

        "Lock Box Accounts" has meaning assigned to that term in the Warehouse Agreement 

        "Other Bridge Loan Termination Date" means the earlier of (i) the receipt by Company or any of its Subsidiaries of Cash Proceeds of
any Asset Sale (up to an amount equal to the Net Cash Proceeds of such Asset Sale, less any amount required to be applied to prepay under the Warehouse Agreement and this Loan Agreement),
(ii) the consummation of the second Securitization Transaction after the date of the Fourth Amendment and (ii) June 30, 2002. 

        "Related Security" has meaning assigned to that term in the Warehouse Agreement. 

        "Warehouse Assets" has meaning assigned to that term in the Warehouse Agreement. 

1.2    Amendments to Existing Definitions.    Section 1.1 of the Loan
Agreement is amended by amending and restating the following definitions in their entirety: 

        "Commitment" means the commitment of a Lender to make Loans (except a Bridge Loans) to Company pursuant to Section 2.1A, and  "Commitments" means such commitments
of all Lenders in the aggregate. 

        "Loans" means the Loans made by Lenders to Company pursuant to Section 2.1A, including Acquisition Loans, Bridge Loans, Interest
Shortfall Loans, Hedge Loans, Working Capital Loans and Loans with respect to the capitalization of interest evidenced by the Interest Capitalization Notes and the Hedge Interest Capitalization Notes. 

        "Loan Category" means an Acquisition Loan, a Bridge Loan, an Interest Shortfall Loan, a Hedge Loan or a Working Capital Loan. 

        "Loan Documents" means this Amended and Restated Loan Agreement, as amended and the Amended and Restated Notes, as amended. 

        "Notes" means (i) (a) the promissory notes of Company issued pursuant to Section 2.1D on the Closing Date as amended
pursuant to the Amended and Restated Promissory Notes of Company issued on the Effective Date, and (b) any promissory notes issued by Company pursuant to the last sentence of
Section 9.1C in connection with assignments of the Commitments and Loans of any Lenders, in each case substantially in the form of  Exhibit II annexed hereto, as they may be amended,
supplemented or otherwise modified from time to time, (ii) the Interest Capitalization
Notes, (iii) the Hedge Interest Capitalization Notes and (iv) the Bridge Notes. 

1.3    Amendment to Section 2.1A:    Section 2.1A of the Loan
Agreement is hereby amended and restated in its entirety as follows: 

        "A.    Commitments.    Subject to the terms and conditions of this Agreement and in reliance upon the representations
and warranties of Company herein set forth, each Lender hereby severally agrees to lend to Company as follows: 

          (i)  From
time to time during the period from the Closing Date to but excluding the Commitment Termination Date an aggregate amount not exceeding its Pro Rata Share of the
aggregate amount of the Commitments to be used for the purposes identified in Section 2.4A. The original amount of each Lender's Commitment is set forth opposite its name on  Schedule 2.1(a)

2

 

annexed
hereto and the aggregate original amount of the Commitments is $19,300,000; provided that the Commitments of Lenders shall be adjusted to give
effect to any assignments of the Commitments pursuant to Section 9.1A. Each Lender's Commitment shall expire on the Commitment Termination Date and all Loans and all other amounts owed
hereunder with respect to the Loans and the Commitments shall be paid in full no later than that date. Amounts borrowed under this Section 2.1A(i) may be repaid and reborrowed to but excluding
the Commitment Termination Date. 

         (ii)  From
time to time during the period from the date of the Fourth Amendment to but excluding the Acquisition Bridge Loan Termination Date and the Other Bridge Loan
Termination Date, as the case may be, the Company may borrow a Bridge Loan. All amounts owed hereunder with respect to an Acquisition Bridge Loan shall be paid in full no later than the Acquisition
Bridge Loan Termination Date. All amounts owed hereunder with respect to an Other Bridge Loan shall be paid in full no later than the Other Bridge Loan Termination Date. Amounts borrowed under this
Section 2.1A(ii) may be repaid to but excluding the Acquisition Bridge Loan Termination Date or Other Bridge Loan Termination Date, as the case may be. Except for Other Bridge Loans designated
by Company as Hedge Loans, amounts borrowed under this Section 2.1A(ii) may not be reborrowed." 

1.4    Amendment to Section 2.1B:    The first paragraph of Section 2.1B of the Loan Agreement
is hereby amended and restated in its entirety as follows: 

        "B.    Borrowing Mechanics.    Working Capital Loans and Other Bridge Loans designated by Company as Working Capital
Loans made on any Funding Date shall be in an aggregate minimum amount of $250,000 and integral multiples of $50,000 in excess of that amount; Acquisition Loans and Acquisition Bridge Loans shall be
in an amount no greater than necessary to acquire the Eligible Asset(s) described in the related Notice of Borrowing less an amount equal to the Investment of Principal advanced to Company under the
Warehouse Agreement for such Eligible Asset(s); Hedge Loans and Other Bridge Loans designated by Company as Hedge Loans shall be in an amount equal to the current Margin Excess; Interest Shortfall
Loans and Other Bridge Loans designated by Company as Interest Shortfall Loans shall be in an amount not to exceed the difference between the Available Balance (as defined in the Paying Agent
Agreement) in the Collection Account as of a Cut-Off Date and the amount to be distributed therefrom on the next succeeding Interest Payment Date, pursuant to Section 2.5 or
Section 2.6, as the case may be, of the Warehouse Agreement; and Loans evidenced by the Interest Capitalization Notes and Hedge Interest Capitalization Notes shall be in the respective amounts
calculated according to Section 2.2C of this Agreement; provided, however, that unless consented to by Requisite Lenders, Company shall use its best efforts to request Loans be made no more
than once each month, and Loans shall be made on the next succeeding Interest Payment Date based on estimated requirements or on any other day of the month if the Loan is an Interim Hedge Loan or an
Other Bridge Loan designated by Company as an Interim Hedge Loan. Whenever Company desires that Lenders make an Interim Hedge Loan or an Other Bridge Loan designated by Company as an Interim Hedge
Loan, it shall deliver to each Lender a Notice of Borrowing no later than 12:00 noon (New York time) on the Business Day at least one (1) Business Day in advance of the proposed Funding Date,
in which case Lenders shall fund such Loan by 12:00 noon (New York time) on the Funding Date. Whenever Company desires that Lenders make an Interest Shortfall Loan or an Other Bridge Loan designated
by Company as an Interest Shortfall Loan, it shall deliver to each Lender a Notice of Borrowing no later than 5:00 p.m. (New York time) on the Business Day at least two (2) Business Days
in advance of the next succeeding Interest Payment Date, in which case Lenders shall fund such Loan by 5:30 p.m. (New York time) on the Funding Date, which shall be at least one
(1) Business Day prior to the Interest Payment Date. Whenever Company desires that Lenders make any Loan other than an Interim Hedge Loan, Interest Shortfall Loan or an Other Bridge Loan
designated by Company as either an Interim Hedge Loan or an Interest Shortfall Loan, it shall deliver 

3

 

to
each Lender a Notice of Borrowing no later than 12:00 noon (New York time) on the Business Day at least two (2) Business Days in advance of the proposed Funding Date, in which case Lenders
shall fund such Loan by 12:00 noon (New York time) on the Funding Date. The Notice of Borrowing shall specify (i) the proposed Funding Date (which shall be a Business Day), (ii) whether
the request is for an Acquisition Loan, an Acquisition Bridge Loan, an Interest Shortfall Loan, a Hedge Loan, a Working Capital Loan and/or an Other Bridge Loan (in which case, Company shall further
specify whether such Other Bridge Loan is designated an Interest Shortfall Loan, a Hedge Loan and/or a Working Capital Loan), (iii) the total amount of Loans requested, (iv) the amount
allocable to each Loan Category, (v) a description of the use of proceeds of the requested Loans (and in the case of Acquisition Loans, sufficient additional detail to describe the underlying
transaction) and (vi) a reconciliation of the use of proceeds of the Loans, excluding any Working Capital Loans, made with the preceding borrowing." 

1.5    Amendment to Section 2.1C:    Section 2.1C of the Loan
Agreement is hereby amended and restated in its entirety as follows: 

        "C.    Disbursement of Funds.    All Loans under this Agreement shall be made by Lenders simultaneously and
proportionately to their respective Pro Rata Shares (except Bridge Loans, which will be made by Lenders simultaneously and proportionately as provided for in Section 1.1), it being understood
that no Lender shall be responsible for any default by any other Lender in that other Lender's obligation to make a Loan requested hereunder nor shall the Commitment of any Lender be increased or
decreased as a result of a default by any other Lender in that other Lender's obligation to make a Loan requested hereunder. Upon satisfaction or waiver of the conditions precedent specified in
Sections 3.1 (in the case of Loans made on the Closing Date), 3.2A (in the case of all Loans, except a Bridge Loan) and 3.2B (in the case of all Loans), each Lender shall make the proceeds of
such Loans available to Company on the applicable Funding Date by wire transfer to the applicable Account(s) of Company set forth on  Schedule 2.1(b) annexed hereto." 

1.6    Amendment to Section 2.1D.    Section 2.1D of the Loan
Agreement is amended by deleting the word "and" and replacing it with a comma immediately before the words "(iii) a Hedge Interest Capitalization Note" and adding the phrase "and
(iv) the Bridge Notes" immediately following the words "as provided in Section 2.2C. 

1.7    Amendment to Section 2.4A.    Section 2.4A of the Loan
Agreement is hereby amended and restated in its entirety as follows: 

        "A.    Loans.    

          (i)  The
proceeds of the Loans shall be used by Company for working capital purposes, including funding any shortfall in the Collection Account, for funding the Margin
Excess in the Hedge Account, or for funding credit enhancement for the Warehouse Agreement or credit enhancement deemed necessary by a nationally recognized statistical rating organization or by
Lenders to achieve the desired rating on the certificates under Securitization Transactions and to pay additional interest on the Notes; provided,  however,
(1) the aggregate outstanding principal amount of all Loans other than Hedge Loans and Bridge Loans shall not at any time exceed
$17,300,000, and (2) the aggregate outstanding principal amount of Working Capital Loans and Interest Shortfall Loans shall not at any time exceed $5,000,000 (excluding amounts loaned to
Company as a Bridge Loan) plus, until repaid, the amount of a working capital borrowing to pay the facility fee under the Warehouse Agreement; further
provided, that unless and until the aggregate outstanding principal amount of the borrowings under the Junior Subordinated Loan Agreement (without regard to the principal
amount of the note evidencing the interest capitalized with respect to the borrowings under the Junior Subordinated Loan Agreement) equals: (x) $300,000, then the aggregate outstanding
principal amount of all Loans shall not at any time exceed $17,300,000 and the aggregate principal amount of Working Capital Loans and Interest Shortfall Loans shall not at any time exceed $3,000,000;
and (y) $500,000, then the aggregate 

4

 

outstanding
principal amount of all Loans shall not at any time exceed $18,500,000 and the aggregate outstanding principal amount of Working Capital Loans and Interest Shortfall Loans shall not at any
time exceed $4,200,000. Notwithstanding anything in this Agreement to the contrary, in no event will proceeds of the Loans be used by Company to fund repayment of any obligations under the Junior
Subordinated Loan Agreement, including but not limited to any shortfall in the Collection Account relating to payments owing with respect to the Junior Subordinated Loan Agreement. Further, Company
shall not fund repayment of its obligations under the Junior Subordinated Loan Agreement with its available working capital such that a Working Capital Loan is required under this Agreement (e.g.,
Company shall not request a Working Capital Loan if its available working capital is sufficient to meet all of its working capital requirements other than obligations under the Junior Subordinated
Loan Agreement and shall only request a Working Capital Loan to the extent needed to meet such other working capital requirements)." 

         (ii)  Notwithstanding
anything in this Agreement or the Junior Subordinated Agreement to the contrary, if (1) the Second Loan (as defined in the Junior Subordinated
Agreement) shall have been made, (2) the proceeds of such Second Loan are used by Company to acquire Eligible Assets and (3) Company shall have used all of its available Cash and Cash
Equivalents to acquire Eligible Assets, then all principal and interest payments on the Loans and Second Loan shall be applied first to the Acquisition
Loans and the Acquisition Bridge Loans, second to the Second Loan, third to all other Loans other than
the Acquisition Loans and the Acquisition Bridge Loans, and fourth to all other Junior Subordinated Loan Obligations (as defined in the Junior
Subordinated Agreement) other than the Second Loan; provided however that if there are any outstanding Working Capital Loans and/or Other Bridge Loans designated by Company as Working Capital Loans,
this Section 2.4A(ii) shall be of no force or effect. 

1.8    Addition of Section 3.3.    The following provision shall be added to
the Loan Agreement as Section 3.3: 

        "3.3    Conditions to Bridge Loans.    

        The
obligations of Lenders to make Bridge Loans are subject to the following further conditions precedent: 

	A.
	The Second Loan (as defined in the Junior Subordinated Agreement) shall have been made;

	B.
	Company shall have no more than $250,000 available in Cash or Cash Equivalents as of the applicable Funding Date of the proposed Bridge
Loan;

	C.
	Company shall be prohibited from obtaining additional Loans pursuant to the terms and conditions of Section 2.4A; and

	D.
	If the proposed Bridge Loan is an Other Bridge Loan designated by the Company as a Working Capital Loan, then the sum of (i) the
Company's available Cash or Cash Equivalents as of the applicable Funding Date of the proposed Other Bridge Loan and (ii) the total amount requested for the proposed Other Bridge Loan (less the
proposed amount of such Other Bridge Loan to be used for such purposes specified in the related Notice of Borrowing) shall not exceed $750,000." 

5

 

1.9    Addition of Section 5.10.    The following provision shall be added to
the Loan Agreement as Section 5.10: 

        "5.10    Grant of Security Interest.    

        A.    General.    This Agreement shall constitute a security agreement
under applicable law with regard to the security interest granted pursuant to this Section 5.10. 

        B.    First Priority.    To the extent not subject to an existing
security interest as of the date of the Fourth Amendment and not prohibited by any existing Contractual Obligation, Company hereby assigns and grants to Lenders a first priority security interest in
all of Company's right, title and interest in, to and under all of the following, whether now or hereafter existing: (i) all Cash and Cash Equivalents, (ii) all Deposit Accounts,
(iii) the Facilities, (iv) all Eligible Assets and (v) all proceeds and amounts received or receivable by Company under any or all of the foregoing, to secure the prompt payment
and performance of all Obligations, whether now or hereafter existing, due or to become due, direct or indirect, or absolute or contingent. 

        C.    Second Priority.    To the extent not subject to an existing
security interest as of the date of the Fourth Amendment (except as set forth below) and not prohibited by any existing Contractual Obligation, Company hereby assigns and grants to Lenders a security
interest, second in priority only to the security interest set forth in Section 8.1 of the Warehouse Agreement, in all of Company's right, title and interest in, to and under all of the
following, whether now or hereafter existing: (i) each and every Receivable, all Related Security with respect to each such Receivable, each and every Collection related thereto and all other
Warehouse Assets of every nature, (ii) any Lock Box Accounts and the Collection Account, all funds on deposit therein and all certificates and instruments, if any, from time to time evidencing
such account and funds on deposit therein, all investments made with such funds, all claims thereunder or in connection therewith, all contract rights (including under insurance policies) and other
rights relating thereto and all interest, dividends, moneys, instruments, securities and other property from time to time received, receivable or otherwise distributed in respect or in exchange for
any or all of the foregoing and anything else constituting part of the Warehouse Assets, and (iii) all proceeds and amounts received or receivable by Company under any or all of the foregoing,
to secure the prompt payment and performance of all Obligations, whether now or hereafter existing, due or to become due, direct or indirect, or absolute or contingent. 

        D.    Further Assurances.    Company agrees that from time to time, at
the expense of Company, Company shall promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or that Lenders may request, in order to
perfect, protect, evidence, renew and/or continue the security interest granted or purported to be granted in this Section 5.10 or to enable Lenders to exercise and enforce their rights and
remedies hereunder with respect to any collateral or otherwise effectuate the purposes and intents of this Section 5.10. Company hereby authorizes Lenders to file one or more financing or
continuation statements, and amendments thereto, relative to all or any part of the collateral without the signature of Company. Company agrees that any reproduction of this Agreement, as amended, or
the Fourth Amendment shall be sufficient as a financing statement and may be filed as a financing statement in any and all jurisdictions. 

        E.    Effect of Security Interest.    In no event will this
Section 5.10 or the security interests provided for herein limit the ability of Company to enter into any Securitization Transactions or otherwise effect any Asset Sales as permitted by the
terms of the Loan Agreement." 

6

 

1.10    Amendment to Section 6.1(v).    Section 6.1(v) of the Loan
Agreement is hereby amended and restated in its entirety as follows: 

"(v) Company
may become and remain liable under the Warehouse Agreement in an aggregate principal amount not to exceed $150,000,000 at any time outstanding (except to the extent of any
temporary increases in the aggregate principal amount of the Warehouse Agreement as provided for in the Fourth Amendment to Revolving Warehouse Financing Agreement of even date herewith);" 

1.11    Amendment to Section 6.1.    Section 6.1 of the Loan Agreement
is amended by adding after clause (viii) the following clause: 

"(ix) Company
may become and remain liable with respect to a Bridge Loan and the Bridge Notes until the Acquisition Bridge Loan Termination Date or Other Bridge Loan Termination Date, as the
case may be." 

1.12    Amendment to Section 6.5.    Section 6.5 of the Loan Agreement
is amended by deleting the period and adding the following clause at the end: "; provided further, that Company may pay all amounts due Lenders under
the Bridge Loans and the Bridge Notes by or before the Acquisition Bridge Loan Termination Date or Other Bridge Loan Termination Date, as the case may be." 

1.13    Amendment to Section 6.8.    Section 6.8 of the Loan Agreement
is amended by deleting the reference to "$200,000" in clause (b) and replacing it with a reference to "$400,000". 

Section 2.    APPLICATION OF THE LOAN AGREEMENT TO THE BRIDGE LOANS AND BRIDGE
NOTES.    All of the terms and conditions of the Loan Agreement shall apply to the Bridge Loans and the Bridge Notes, except Section 3.1 of the Loan Agreement. 

Section 3.    COMMITMENT FEE.    

3.1    In consideration of this Fourth Amendment, Company irrevocably agrees to amend and use its best efforts to cause the other parties to
the Warehouse Agreement to amend Section 1.1 thereof upon the extension of the term of the Warehouse Agreement pursuant to the terms thereof by amending and restating the following definition
in its entirety: 

        "Applicable Margin'" means 3%." 

3.2    Company will execute and deliver the Fourth Amendment to Revolving Warehouse Financing Agreement of even date herewith. 

Section 4.    MISCELLANEOUS.    

4.1    Reference to and effect on the Loan Agreement and other documents relating to the Loan
Agreement.    

        A.    On and after the date hereof, each reference in the Loan Agreement to "this Agreement", "hereunder", "hereof", "herein" or
words of like import referring to the Loan Agreement, and each reference in any other document relating to the Loan Agreement to the "Loan Agreement", "thereunder", "thereof", or words of like import
referring to the Loan Agreement shall mean and be a reference to the Loan Agreement as amended by the First Amendment, the Second Amendment, the Third Amendment, and this Fourth Amendment. 

        B.    Except as specifically amended by the First Amendment, the Second Amendment, the Third Amendment, this Fourth Amendment
and the Loan Agreement and any other documents relating to the Loan Agreement shall remain in full force and effect and are hereby ratified and confirmed. 

        C.    The execution, delivery and performance of the First Amendment, the Second Amendment, the Third Amendment and this Fourth
Amendment shall not, except as expressly provided herein, 

7

 

constitute
a waiver of any provision of, or operate as a waiver of any right, power or remedy of the parties under, the Loan Agreement or any other document relating to the Loan Agreement. 

4.2    Execution in Counterparts.    This Fourth Amendment may be executed in any
number of counterparts, and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts taken together
shall constitute but one and the same instrument. 

4.3    Headings.    Section and subsection headings in this Fourth Amendment are
included herein for convenience of reference only and shall not constitute a part of this Fourth Amendment for any other purpose or be given any substantive effect. 

4.4    Further Assurances.    The parties to this Fourth Amendment agree to execute
and deliver any additional information, documents or agreements contemplated hereby and/or necessary or appropriate to effect and perform the actions contemplated hereby. 

4.5    Applicable Law.    THIS FOURTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HERETO AND ALL OTHER ASPECTS HEREOF SHALL BE DEEMED TO BE MADE UNDER, SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

8

 

        IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed by their respective duly authorized officers as of
the date first above written. 

	COMPANY:	 	 	 	 
	
FALCON FINANCIAL, LLC	
 	

 	
 	

 
	

 	
 	

 	
 	

 	
 	

 
	By:	 	/s/  DAVID A. KARP      
	 	 	 	 
	Name:	 	David A. Karp	 	 	 	 
	Title:	 	President	 	 	 	 
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

 	
 	
SUNAMERICA:
	

 	
 	

 	
 	
SUNAMERICA LIFE INSURANCE COMPANY
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

By:	
 	

/s/  THOMAS N. DANKLER      

	 	 	 	 	Name:	 	Thomas N. Dankler
	 	 	 	 	Title:	 	Authorized Agent
	

 	
 	

 	
 	
GOLDMAN SACHS:
	

 	
 	

 	
 	
GOLDMAN SACHS MORTGAGE COMPANY
	

 	
 	

 	
 	

By:	
 	

GOLDMAN SACHS REAL ESTATE FUNDING CORP., its general partner
	

 	
 	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

By:	
 	

/s/  ROBERT CHRISTIE      

	 	 	 	 	Name:	 	Robert Christie
	 	 	 	 	Title:	 	Vice President

9

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EXHIBIT 10.11    
    

FALCON FINANCIAL, LLC  

FIFTH AMENDMENT TO

AMENDED AND RESTATED SENIOR SUBORDINATED LOAN AGREEMENT  

        This FIFTH AMENDMENT TO AMENDED AND RESTATED SENIOR SUBORDINATED LOAN AGREEMENT (this
"Fifth Amendment") is dated as of July 29, 2002 and entered into by and among Falcon Financial, LLC
("Company"), SunAmerica Life Insurance Company ("SunAmerica") and Goldman Sachs Mortgage Company
("Goldman Sachs"; and together with SunAmerica, "Lenders") and is made with reference to the Amended and
Restated Senior Subordinated Loan Agreement dated as of January 7, 1998 by and among the parties hereto (as amended, the "Loan Agreement").
Capitalized terms used herein without definition shall have the same meanings set forth in the Loan Agreement. 

        WHEREAS, the parties hereto have entered into the First Amendment to the Loan Agreement as of June 8, 1998 (the
"First Amendment"), which increased the amount available under the facility for Working Capital Loans; 

        WHEREAS, the parties hereto have entered into the Second Amendment to the Loan Agreement as of October 2, 1998 (the
"Second Amendment"), which added new definitions to, and amended and restated existing definitions in, Section 1.1 of the Loan Agreement and
amended certain other sections of the Loan Agreement to provide for the financing of mortgage loans under the Loan Agreement; 

        WHEREAS, the parties hereto have entered into the Third Amendment to the Loan Agreement as of April 19, 1999 (the
"Third Amendment"), which reflected an increase in the working capital facility and the existence of the Junior Subordinated Loan Agreement, as amended; 

        WHEREAS, the parties hereto have entered into the Fourth Amendment to the Loan Agreement as of October 29, 2001 (the
"Fourth Amendment"), which added new definitions to, and amended and restated existing definitions in, Section 1.1 of the Loan Agreement, granted
Lenders a security interest in certain property and interests owned or held by Company and amended certain other sections of the Loan Agreement to provide for the extension of Bridge Loans to Company; 

        WHEREAS, as of the date hereof, the aggregate outstanding principal amount of the borrowings under the Junior Subordinated Loan Agreement
(without regard to the principal amount of the note evidencing the interest capitalized with respect to the borrowings under the Junior Subordinated Loan Agreement) is no less than $500,000; 

        WHEREAS, Company desires that the Lenders extend Company Additional Hedge Loans (as defined herein) on the terms and conditions provided
for in this Fifth Amendment and the Loan Agreement; 

        WHEREAS, Lenders desire to extend Company Additional Hedge Loans on the terms and conditions provided for in this Fifth Amendment and the
Loan Agreement; and 

        WHEREAS, the parties hereto disclaim any intent to effect a novation or an extinguishment or discharge of any liability or obligation
under the Loan Agreement arising prior to the date of this Fifth Amendment. 

 

        NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth herein, the parties hereto agree as
follows: 

Section 1.    AMENDMENTS TO THE LOAN AGREEMENT.    

1.1    Additional Definitions.    Section 1.1 of the Loan Agreement is
amended by adding the following definitions thereto in appropriate alphabetical order: 

        "Additional Hedge Loan Termination Date" means the earlier of (i) the consummation of the first Securitization Transaction after
the date of the Fifth Amendment or (ii) October 27, 2002. 

        "Additional Hedge Loan" means a Loan in the aggregate amount of up to $2,000,000 from Commitments available for Acquisition Loans, the
proceeds of which shall be designated by Company as Hedge Loans. 

        "Additional Hedge Notes" means the promissory notes issued with respect to an Additional Hedge Loan. 

1.2    Amendments to Existing Definitions.    Section 1.1 of the Loan
Agreement is amended by amending and restating the following definitions in their entirety: 

        "Interim Hedge Loan" means, as applicable, a Hedge Loan or Additional Hedge Loan with respect to a Margin Excess call by Goldman,
Sachs & Co., other than a regular monthly Margin Excess call, pursuant to the terms of the Hedge Agreement. 

        "Loans" means the Loans made by Lenders to Company pursuant to Section 2.1A, including Acquisition Loans, Bridge Loans, Interest
Shortfall Loans, Hedge Loans, Working Capital Loans, Additional Hedge Loans, and Loans with respect to the capitalization of interest evidenced by the Interest Capitalization Notes and the Hedge
Interest Capitalization Notes. 

        "Loan Category" means an Acquisition Loan, a Bridge Loan, an Interest Shortfall Loan, a Hedge Loan, a Working Capital Loan or an
Additional Hedge Loan. 

        "Notes" means (i) (a) the promissory notes of Company issued pursuant to Section 2.1D on the Closing Date as amended
pursuant to the Amended and Restated Promissory Notes of Company issued on the Effective Date, and (b) any promissory notes issued by Company pursuant to the last sentence of
Section 9.1C in connection with assignments of the Commitments and Loans of any Lenders, in each case substantially in the form of  Exhibit II annexed hereto, as they may be amended,
supplemented or otherwise modified from time to time, (ii) the Interest Capitalization
Notes, (iii) the Hedge Interest Capitalization Notes, (iv) the Bridge Notes, and (v) the Additional Hedge Notes. 

1.3    Amendment to Section 2.1A:    Section 2.1A of the Loan
Agreement is hereby amended by adding the following as subsection (iii) thereto: 

"(iii)    From
time to time during the period from the date of the Fifth Amendment to but excluding the Additional Hedge Loan Termination Date, Company may borrow an Additional Hedge Loan.
All amounts owed hereunder with respect to an Additional Hedge Loan, including all Interest accrued thereon (except as provided in Section 2.2C) shall be paid in full no later than the
Additional Hedge Loan Termination Date. Amounts borrowed under this Section 2.1A(iii) may be repaid and reborrowed to but excluding the Additional Hedge Loan Termination Date. Amounts repaid at
the Additional Hedge Loan Termination Date will be available as Acquisition Loans." 

1.4    Amendment to Section 2.1B:    The first paragraph of
Section 2.1B of the Loan Agreement is hereby amended and restated in its entirety as follows: 

"B.    Borrowing Mechanics.    Working Capital Loans and Other Bridge Loans
designated by Company as Working Capital Loans made on any Funding Date shall be in an aggregate minimum 

2

 

amount
of $250,000 and integral multiples of $50,000 in excess of that amount; Acquisition Loans and Acquisition Bridge Loans shall be in an amount no greater than necessary to acquire the Eligible
Asset(s) described in the related Notice of Borrowing less an amount equal to the Investment of Principal advanced to Company under the Warehouse Agreement for such Eligible Asset(s); Hedge Loans,
Other Bridge Loans designated by Company as Hedge Loans and Additional Hedge Loans shall be in an amount equal to the current Margin Excess; Interest Shortfall Loans and Other Bridge Loans designated
by Company as Interest Shortfall Loans shall be in an amount not to exceed the difference between the Available Balance (as defined in the Paying Agent Agreement) in the Collection Account as of a
Cut-Off Date and the amount to be distributed therefrom on the next succeeding Interest Payment Date, pursuant to Section 2.5 or Section 2.6, as the case may be, of the
Warehouse Agreement; and Loans evidenced by the Interest Capitalization Notes and Hedge Interest Capitalization Notes shall be in the respective amounts calculated according to Section 2.2C of
this Agreement; provided, however, that unless consented to by Requisite Lenders, Company shall use its best efforts to request Loans be made no more than once each month, and Loans shall be made on
the next succeeding Interest Payment Date based on estimated requirements or on any other day of the month if the Loan is an Interim Hedge Loan or an Other Bridge Loan designated by Company as an
Interim Hedge Loan. Whenever Company desires that Lenders make an Interim Hedge Loan or an Other Bridge Loan designated by Company as an Interim Hedge Loan, it shall deliver to each Lender a Notice of
Borrowing no later than 12:00 noon (New York time) on the Business Day at least one (1) Business Day in advance of the proposed Funding Date, in which case Lenders shall fund such Loan by 12:00
noon (New York time) on the Funding Date. Whenever Company desires that Lenders make an Interest Shortfall Loan or an Other Bridge Loan designated by Company as an Interest Shortfall Loan, it shall
deliver to each Lender a Notice of Borrowing no later than 5:00 p.m. (New York time) on the Business Day at least two (2) Business Days in advance of the next succeeding Interest Payment
Date, in which case Lenders shall fund such Loan by 5:30 p.m. (New York time) on the Funding Date, which shall be at least one (1) Business Day prior to the Interest Payment Date.
Whenever Company desires that Lenders make any Loan other than an Interim Hedge Loan, Interest Shortfall Loan, an Other Bridge Loan designated by Company as either an Interim Hedge Loan or an Interest
Shortfall Loan, it shall deliver to each Lender a Notice of Borrowing no later than 12:00 noon (New York time) on the Business Day at least two (2) Business Days in advance of the proposed
Funding Date, in which case Lenders shall fund such Loan by 12:00 noon (New York time) on the Funding Date. The Notice of Borrowing shall specify (i) the proposed Funding Date (which shall be a
Business Day), (ii) whether the request is for an Acquisition Loan, an Acquisition Bridge Loan, an Interest Shortfall Loan, a Hedge Loan, a Working Capital Loan, an Other Bridge Loan (in which
case, Company shall further specify whether such Other Bridge Loan is designated an Interest Shortfall Loan, a Hedge Loan and/or a Working Capital Loan) and/or an Additional Hedge Loan,
(iii) the total amount of Loans requested, (iv) the amount allocable to each Loan Category, (v) a description of the use of proceeds of the requested Loans (and in the case of
Acquisition Loans, sufficient additional detail to describe the underlying transaction) and (vi) a reconciliation of the use of proceeds of the Loans, excluding any Working Capital Loans, made
with the preceding borrowing." 

1.5    Amendment to Section 2.1D.    Section 2.1D of the Loan
Agreement is amended by deleting the word "and" and replacing it with a comma immediately before the words "(iv) the Bridge Notes" and adding the phrase "and (v) the Additional Hedge
Notes" immediately following the words "the Bridge Notes". 

3

 

1.6    Amendment to Section 2.3A(iii).    Section 2.3A(iii) of the
Loan Agreement is hereby amended and restated in its entirety as follows: 

"(iii)    Prepayments
from Margin Deficit in Hedge Account.    If at any time an amount becomes available for withdrawal from the Hedge Account pursuant to the Hedge Account
Agreement, Company shall withdraw, and apply to the Additional Hedge Loans, Hedge Loans, Hedge Interest Capitalization Notes, and Working Capital Loans in prepayment thereof, an amount from the Hedge
Account equal to the lesser of (i) the amount available for withdrawal, and (ii) the amount needed to pay in full the accrued and unpaid interest on the Additional Hedge Loans, Hedge
Loans, the Hedge Interest Capitalization Notes, and the Working Capital Loans, and to reduce the principal outstanding of the Additional Hedge Loans, Hedge Interest Capitalization Notes, Hedge Loans,
and Working Capital Loans to zero. If the amount withdrawn is insufficient to satisfy the Additional Hedge Loans, Hedge Loans, Hedge Interest Capitalization Notes, and Working Capital Loans in full,
such amount shall be applied as follows: first to the accrued and unpaid interest on the Additional Hedge Loans until paid in full;  second to the
outstanding principal balance of the Additional Hedge Loans until paid in full; third to
the accrued and unpaid interest on the Hedge Interest Capitalization Notes until paid in full; fourth to the accrued and unpaid interest on the Hedge
Loans until paid in full; fifth to the outstanding principal balance of the Hedge Interest Capitalization Notes until paid in full;  sixth to the
outstanding principal balance of the Hedge Loans until paid in full; seventh to the accrued
and unpaid interest on the Working Capital Loans until paid in full; and eighth to the outstanding principal balance of the Working Capital Loans until
paid in full." 

1.7    Addition of Section 3.4.    The following provision shall be added to
the Loan Agreement as Section 3.4: 

        "3.4    Conditions to Additional Hedge Loans.    

        The
obligations of Lenders to make Additional Hedge Loans are subject to the following further conditions precedent:

	A.
	There shall be insufficient funds available as Hedge Loans to cover the current Margin Excess; and 

 
	B.
	Company shall be prohibited from obtaining additional Loans pursuant to the terms and conditions of Section 2.4A. 

1.8    Amendment to Section 6.1.    Section 6.1 of the Loan Agreement
is amended by adding after clause (ix) the following clause: 

"(x)
Company may become and remain liable with respect to an Additional Hedge Loan and the Additional Hedge Notes until the Additional Hedge Loan Termination Date." 

1.9    Amendment to Section 6.5.    Section 6.5 of the Loan Agreement
is amended by deleting the final clause beginning with ";provided, further" and ending with "as the case
may be." and replacing it with the following clause: 

";
provided further, that Company may pay all amounts due Lenders under the Bridge Loans and Additional Hedge Loans and the Bridge Notes and Additional
Hedge Notes by or before the Acquisition Bridge Loan Termination Date, Other Bridge Loan Termination Date or Additional Hedge Loan Termination Date, as the case may be." 

Section 2.    APPLICATION OF THE LOAN AGREEMENT TO THE ADDITIONAL HEDGE LOANS AND ADDITIONAL HEDGE
NOTES.    All of the terms and conditions of the Loan Agreement shall apply to the Additional Hedge Loans and the Additional Hedge Notes, except Section 3.1 of
the Loan Agreement. 

4

 

Section 3.    MISCELLANEOUS.    

3.1    Reference to and effect on the Loan Agreement and other documents relating to the Loan
Agreement.    

        A.    On and after the date hereof, each reference in the Loan Agreement to "this Agreement", "hereunder", "hereof", "herein" or
words of like import referring to the Loan Agreement, and each
reference in any other document relating to the Loan Agreement to the "Loan Agreement", "thereunder", "thereof", or words of like import referring to the Loan Agreement shall mean and be a reference
to the Loan Agreement as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, and this Fifth Amendment. 

        B.    Except as specifically amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment,
this Fifth Amendment and the Loan Agreement and any other documents relating to the Loan Agreement shall remain in full force and effect and are hereby ratified and confirmed. 

        C.    The execution, delivery and performance of the First Amendment, the Second Amendment, the Third Amendment, the Fourth
Amendment, and this Fifth Amendment shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of the parties under,
the Loan Agreement or any other document relating to the Loan Agreement. 

3.2    Execution in Counterparts.    This Fifth Amendment may be executed in any
number of counterparts, and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts taken together
shall constitute but one and the same instrument. 

3.3    Headings.    Section and subsection headings in this Fifth Amendment are
included herein for convenience of reference only and shall not constitute a part of this Fifth Amendment for any other purpose or be given any substantive effect. 

3.4    Further Assurances.    The parties to this Fifth Amendment agree to execute
and deliver any additional information, documents or agreements contemplated hereby and/or necessary or appropriate to effect and perform the actions contemplated hereby. 

3.5    Applicable Law.    THIS FIFTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HERETO AND ALL OTHER ASPECTS HEREOF SHALL BE DEEMED TO BE MADE UNDER, SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

[intentionally
left blank] 

5

   
        IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be executed by their respective duly authorized officers as of
the date first above written. 

	COMPANY:	 	 	 	 
	
FALCON FINANCIAL, LLC	
 	

 	
 	

 
	

By:	
 	

/s/  DAVID A. KARP      
 Name: David A. Karp

Title: President	
 	

 	
 	

 
	

 	
 	

 	
 	
SUNAMERICA:
	

 	
 	

 	
 	
SUNAMERICA LIFE INSURANCE COMPANY
	

 	
 	

 	
 	

By:	
 	

/s/  THOMAS DANKLER      
 Name: Thomas Dankler

Title: Authorized Agent
	

 	
 	

 	
 	
GOLDMAN SACHS:
	

 	
 	

 	
 	
GOLDMAN SACHS MORTGAGE COMPANY
	

 	
 	

 	
 	

By:	
 	

GOLDMAN SACHS REAL ESTATE FUNDING CORP., its general partner
	

 	
 	

 	
 	

By:	
 	

/s/  ROBERT CHRISTIE      
 Name: Robert Christie

Title: Vice President

6

QuickLinks

EXHIBIT 10.11

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