Document:

EX-10.12

Exhibit 10.12

 

Execution Copy

AMENDED AND RESTATED CREDIT AGREEMENT (LICENSING)

Dated as of March 31, 2009

among

FRANKLIN CREDIT MANAGEMENT CORPORATION, and

FRANKLIN CREDIT HOLDING CORPORATION

as Borrowers,

THE FINANCIAL INSTITUTIONS PARTY HERETO AS LENDERS,

as Lenders, and

THE HUNTINGTON NATIONAL BANK,

as Administrative Agent and as Issuing Bank

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Article I. Definitions and Accounting Matters
	 	 	2	 
	Section 1.01 Certain Defined Terms
	 	 	2	 
	Section 1.02 Accounting Terms and Determinations
	 	 	18	 
	 
	 	 	 	 
	Article II. Advances and Prepayments
	 	 	18	 
	Section 2.01 Advances
	 	 	18	 
	Section 2.02 Notes
	 	 	19	 
	Section 2.03 19
	 	 	 	 
	Section 2.03 Inability to Determine Rates; Illegality
	 	 	20	 
	Section 2.04 Payments of Interest on the Advances; Waterfall
	 	 	20	 
	Section 2.05 Mandatory Prepayments
	 	 	21	 
	Section 2.06 Breakage
	 	 	22	 
	Section 2.07 Requirements of Law
	 	 	22	 
	Section 2.08 Purpose of Advances
	 	 	23	 
	Section 2.09 Facility Fee
	 	 	23	 
	Section 2.10 Letters of Credit
	 	 	23	 
	Section 2.11 Joint and Several Liability
	 	 	25	 
	Section 2.12 Disbursements from Reserve Account
	 	 	28	 
	 
	 	 	 	 
	Article III. Blocked Accounts, Computations; Taxes
	 	 	28	 
	Section 3.01 Payments
	 	 	28	 
	Section 3.02 Computations
	 	 	29	 
	Section 3.03 U.S. Taxes
	 	 	29	 
	 
	 	 	 	 
	Article IV. Certain Matters Relating to Collateral
	 	 	30	 
	Section 4.01 Collections
	 	 	30	 
	 
	 	 	 	 
	Article V. Conditions Precedent
	 	 	31	 
	Section 5.01 Closing and Initial Advances
	 	 	31	 
	Section 5.02 Advances
	 	 	33	 
	 
	 	 	 	 
	Article VI. Representations and Warranties
	 	 	34	 
	Section 6.01 Existence
	 	 	34	 
	Section 6.02 Litigation
	 	 	34	 
	Section 6.03 No Breach
	 	 	35	 
	Section 6.04 Action
	 	 	35	 
	Section 6.05 Approvals
	 	 	35	 
	Section 6.06 Taxes
	 	 	35	 
	Section 6.07 Investment Company Act
	 	 	35	 
	Section 6.08 No Legal Bar
	 	 	36	 
	Section 6.09 No Default
	 	 	36	 
	Section 6.10 True and Complete Disclosure
	 	 	36	 

i 

 

	 	 	 	 	 
	 	 	Page
	Section 6.11 ERISA
	 	 	36	 
	Section 6.12 True Sales
	 	 	37	 
	Section 6.13 No Burdensome Restrictions
	 	 	37	 
	Section 6.14 Subsidiaries
	 	 	37	 
	Section 6.15 Financial Statements; Solvency; Fraudulent Conveyance
	 	 	37	 
	Section 6.16 Regulation U
	 	 	38	 
	Section 6.17 Licenses
	 	 	38	 
	 
	 	 	 	 
	Article VII. Covenants of Borrower
	 	 	38	 
	Section 7.01 Financial Statements
	 	 	38	 
	Section 7.02 Litigation
	 	 	39	 
	Section 7.03 Existence
	 	 	39	 
	Section 7.04 Prohibition of Fundamental Changes; Subsidiaries
	 	 	40	 
	Section 7.05 Restricted Payments
	 	 	40	 
	Section 7.06 Notices
	 	 	40	 
	Section 7.07 Financial Covenants
	 	 	41	 
	Section 7.08 Transactions with Affiliates
	 	 	41	 
	Section 7.09 Use of Proceeds
	 	 	41	 
	Section 7.10 Limitation on Liens
	 	 	42	 
	Section 7.11 Limitation on Indebtedness
	 	 	42	 
	Section 7.12 Limitation on Sale of Assets
	 	 	42	 
	Section 7.13 Limitation on Investments
	 	 	42	 
	Section 7.14 Solvency
	 	 	42	 
	Section 7.15 No Amendment or Waiver
	 	 	42	 
	Section 7.16 Maintenance of Property; Insurance
	 	 	42	 
	Section 7.17 Organizational Documents
	 	 	42	 
	Section 7.18 Payment of Expenses
	 	 	43	 
	Section 7.19 Certain Post-Effective Date Deliverables
	 	 	43	 
	Section 7.20 Representations and Warranties; Disclosure Updates
	 	 	43	 
	 
	 	 	 	 
	Article VIII. Events of Default
	 	 	43	 
	Section 8.01 Events of Default
	 	 	43	 
	 
	 	 	 	 
	Article IX. Remedies
	 	 	46	 
	Section 9.01 Remedies Upon Default
	 	 	46	 
	 
	 	 	 	 
	Article X. Miscellaneous
	 	 	47	 
	Section 10.01 Waiver
	 	 	47	 
	Section 10.02 Notices
	 	 	47	 
	Section 10.03 Indemnification and Expenses
	 	 	48	 
	Section 10.04 Amendments
	 	 	49	 
	Section 10.05 Successors and Assigns
	 	 	50	 
	Section 10.06 Survival
	 	 	50	 
	Section 10.07 Captions
	 	 	50	 
	Section 10.08 Counterparts
	 	 	50	 
	Section 10.09 Governing Law
	 	 	50	 
	Section 10.10 SUBMISSION TO JURISDICTION; WAIVERS
	 	 	50	 

ii 

 

	 	 	 	 	 
	 	 	Page
	Section 10.11 WAIVER OF JURY TRIAL
	 	 	51	 
	Section 10.12 Acknowledgments
	 	 	51	 
	Section 10.13 Non-liability of the Administrative Agent and the Lenders
	 	 	52	 
	Section 10.14 Amendment and Restatement
	 	 	52	 
	Section 10.15 Assignment of Liens
	 	 	53	 
	Section 10.16 Set-Off
	 	 	53	 
	Section 10.17 Entire Agreement; Continuation of Agreement
	 	 	54	 
	Section 10.18 Full-Recourse
	 	 	54	 
	Section 10.19 Confidentiality
	 	 	54	 
	 
	 	 	 	 
	Article XI. The Administrative Agent
	 	 	55	 
	Section 11.01 Appointment; Nature of Relationship
	 	 	55	 
	Section 11.02 Exculpatory Provisions
	 	 	55	 
	Section 11.03 Reliance on Communications
	 	 	56	 
	Section 11.04 Delegation of Duties
	 	 	56	 
	Section 11.05 The Administrative Agent’s Reimbursement and Indemnification
	 	 	57	 
	Section 11.06 Notice of Default
	 	 	57	 
	Section 11.07 Rights as a Lender
	 	 	58	 
	Section 11.08 Non-Reliance on Administrative Agent and Other Lenders
	 	 	58	 
	Section 11.09 Resignation of Administrative Agent
	 	 	58	 
	Section 11.10 Administrative Agent Fees
	 	 	59	 
	Section 11.11 Execution of Collateral Documents
	 	 	59	 
	Section 11.12 Collateral
	 	 	59	 
	Section 11.13 Agency for Perfection
	 	 	60	 
	 
	 	 	 	 
	Article XII. Assignments
	 	 	60	 
	Section 12.01 Assignments
	 	 	60	 
	Section 12.02 Dissemination of Information
	 	 	63	 
	Section 12.03 Tax Treatment
	 	 	63	 

iii 

 

	 	 	 
	SCHEDULES
	 
	 	 
	SCHEDULE 1

	 	Commitments of Lenders
	SCHEDULE 2.10

	 	Existing Letters of Credit
	SCHEDULE 6.14

	 	Subsidiaries
	SCHEDULE 6.17

	 	Licenses
	SCHEDULE 7

	 	Transaction Documents
	SCHEDULE 7.19

	 	Post-Closing Matters
	 
	 	 
	EXHIBITS
	 
	 	 
	EXHIBIT A-1

	 	Form of Revolving Loan Note
	EXHIBIT A-2

	 	Form of Draw Loan Note
	EXHIBIT B

	 	Form of Guarantee
	EXHIBIT C

	 	Form of Security Agreement
	EXHIBIT D

	 	Form of Investment Property Security Agreement
	EXHIBIT E

	 	Form of Assignment and Acceptance Agreement

i 

 

AMENDED AND RESTATED CREDIT AGREEMENT (LICENSING)

     THIS AMENDED AND RESTATED CREDIT AGREEMENT (LICENSING), dated as of March 31, 2009 (as the
same may be amended, supplemented, or otherwise modified and in effect from time to time in
accordance with the terms hereof, this “Agreement”) is entered into by and among FRANKLIN
CREDIT MANAGEMENT CORPORATION, a Delaware Corporation, and FRANKLIN CREDIT HOLDING CORPORATION, a
Delaware corporation (each, a “Borrower” and collectively “Borrowers”), THE
FINANCIAL INSTITUTIONS PARTY HERETO AS LENDERS (each, a “Lender” and collectively, the
“Lenders”) and THE HUNTINGTON NATIONAL BANK, a national banking association
(“Huntington”), as administrative agent for the Lenders (in such capacity, together with
its successors and assigns in such capacity, the “Administrative Agent”) and as Issuing
Bank for certain Letters of Credit.

RECITALS:

     WHEREAS, each FCMC and Huntington (as successor-in-interest to Sky Bank) are parties to that
certain Flow Warehousing Credit and Security Agreement, dated as of August 11, 2006, as the same
has been amended, supplemented, restated, or otherwise modified prior to the date of this Agreement
(the “Franklin Warehousing Agreement”), pursuant to which Huntington holds certain
outstanding loans made to such Borrower and in connection therewith issued certain outstanding
letters of credit for the account of such Borrower (collectively, the “Franklin Warehousing
Credits”), which loans and reimbursement obligations under such letters of credit are secured
by, among other things, certain Mortgage Loans as provided in the Franklin Warehousing Agreement
and the other agreements entered into in connection therewith; and

     WHEREAS, FCMC and Huntington (as successor-in-interest to Sky Bank) are parties to that
certain Term Loan and Security Agreement, dated as of February 22, 1995, as the same has been
amended, supplemented, restated, or otherwise modified prior to the date of this Agreement (the
“Franklin Term Loan Agreement”), pursuant to which Huntington holds certain outstanding
loans made to such Borrower (the “Franklin Revolving Loans”), which loans are secured by,
among other things, certain Mortgage Loans as provided in the Franklin Term Loan Agreement and the
other agreements entered into in connection therewith; and

     WHEREAS, the Franklin Warehousing Agreement and the Franklin Term Loan Agreement are
collectively referred to as the “Credit Agreements,” and the Franklin Warehousing Credits,
and the Franklin Revolving Loans are collectively referred to as the “Commercial Credits;”
and

     WHEREAS, each Borrower, certain other affiliates of the Borrowers, and Huntington are parties
to that certain First Amended and Restated Forbearance Agreement and Amendment to Credit Agreements
dated as of December 19, 2008, as the same has been amended, supplemented, restated, or otherwise
modified prior to the date of this Agreement, and which amended and restated a certain Forbearance
Agreement and Amendment to Credit Agreements dated as of December 27, 2007 (together, the
“Existing Forbearance Agreement”), pursuant to the terms of which Huntington agreed not to
exercise its rights to initiate proceedings to foreclose or otherwise realize upon the Collateral
which secures the Obligations of the loan

1

 

parties thereunder as a consequence of the defaults acknowledged therein, the loan parties thereto
granted Liens to Huntington in all assets of such loan parties as provided in such loan documents
and other agreements entered into in connection therewith, and Holding guaranteed the full payment
of each Commercial Credit; and

     WHEREAS, in connection with the Credit Agreements and the Existing Forbearance Agreement, each
Borrower and certain other borrowers, as applicable, are parties to certain promissory notes,
security agreements, pledge agreements, powers of attorney, letter of credit reimbursement
agreements, control agreements, joinder agreements, counterpart signature pages, assignments,
collateral assignments, guaranties, banking services agreements, hedging agreements, financing
statements and other loan documents (as amended, restated, supplemented or otherwise modified from
time to time prior to the date hereof, together with each Credit Agreement and Existing Forbearance
Agreement, an “Existing Loan Document”, and together the “Existing Loan
Documents”); and

     WHEREAS, the Borrowers, the Administrative Agent, and the Lenders wish to amend and restate
Tranche D in full under the Credit Agreements and the Existing Forbearance Agreement and assign all
Liens held in respect of a portion of the collateral security therefor to the Administrative Agent
in order to, among other things, (a) maintain a credit facility in an amount not to exceed the
maximum amount of the Commitment, composed of: (i) a separate existing letter of credit facility in
an amount not to exceed the aggregate sum of the Letter of Credit Commitment, (ii) a revolving line
of credit facility in an amount not to exceed the aggregate sum of the Revolving Loan Commitment,
and (iii) a draw credit facility in an amount not to exceed the aggregate sum of the Draw Loan
Commitment, (b) maintain Tranche D as a full recourse obligation of each Borrower, and (c) reaffirm
all obligations, liabilities, and Liens and grant Liens on substantially all assets of each
Borrower.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

          Article I. Definitions and Accounting Matters.

          Section 1.01 Certain Defined Terms. As used herein and the recitals, the following
terms shall have the following meanings (all terms defined in this Section 1.01 or in other
provisions of this Agreement in the singular to have the same meanings when used in the plural and
vice versa):

     “Address for Notices” shall have the meaning assigned thereto in Section 10.02.

     “Administrative Agent” shall have the meaning assigned to that term in the preamble
and as further defined in Section 11.01.

     “Administrative Agent Fee” shall mean an annual to be determined by the Administrative
Agent at such time as Huntington and its Affiliates are not the only Lenders hereunder, payable to
the Administrative Agent.

2

 

     “Advance” or “Advances” shall mean any one or more of the Revolving Loan
Advances or the Draw Loan Advances.

     “Affected Lender” shall have the meaning assigned thereto in Section 2.03(c).

     “Affiliate” shall mean, with respect to any Person, any other Person who, directly or
indirectly, controls, is controlled by, or is under common control with, such Person. For purposes
of this definition, “control” (together with the correlative meanings of “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power (a) to vote ten
percent (10%) or more of the securities (on a fully diluted basis) having ordinary voting power for
the directors or managing general partners (or their equivalent) of such Person, or (b) to direct
or cause the direction of the management or policies of such Person, whether through the ownership
of voting securities, by contract, or otherwise; provided, however, that with respect to the Loan
Parties, under common control with” shall mean “under common control of Holding with”, in each
instance of this Agreement, other than Section 7.08 and Section 7.18.

     “Agreement” shall have the meaning assigned to that term in the preamble of this
Agreement.

     “Applicable Collections Amount” shall have the meaning assigned thereto in Section
2.04(c).

     “Applicable Draw Loan Margin” shall mean six percent (6.00%).

     “Applicable Margin” shall mean eight percent (8.00%).

     “Application and Agreement for Letter of Credit” shall mean an application and
agreement for standby letter of credit by, between, and among any Borrower, on the one hand, and
Huntington, on the other hand, in a form provided by Huntington, either as originally executed or
as it may from time to time be supplemented, modified, amended, renewed, or extended.

     “Approved Expenses” shall mean those expenses of any Borrower as set forth in the
budget periodically submitted to the Administrative Agent, which budget shall be subject to the
written consent of the Administrative Agent, which consent will not be withheld unreasonably, and
shall include without limitation, fees and expenses incurred in the ordinary course of business,
all fees and charges in respect of Letters of Credit and banking services provided for the account
of any Borrower and reasonable costs of any litigation to require sellers of Mortgage Loans to
repurchase such loans because of fraud, misrepresentation, or breach of warranty.

     “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 12.02) and accepted by the Administrative Agent, in substantially the form of
Exhibit E or any other form approved by the Administrative Agent.

3

 

     “Bankruptcy Code” shall mean Title 11 of the United States Code (11 U.S.C. Section 101
et seq.), as amended by the Bankruptcy Reform Act and as further amended from time to time, or any
successor statute.

     “Bankruptcy Reform Act” shall mean the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005, effective as of October 17, 2005.

     “Blocked Account” shall have the meaning assigned to such term in Section 3.01(a).

     “Borrower” shall have the meaning assigned to that term in the preamble of this
Agreement.

     “Business Day” shall mean any day other than (i) a Saturday, Sunday, or other day on
which commercial banks are required or authorized to close under the laws of the State of Ohio or
(ii) a day on which any Custodian is required or authorized to close under the laws of the state in
which such Custodian’s offices are located and, if such day relates to a determination of LIBOR,
means any such day on which dealings in Dollar deposits are conducted by and between banks in the
London interbank eurodollar market.

     “Capital Lease Obligations” shall mean, for any Person, all obligations of such Person
to pay rent or other amounts under a lease of (or other agreement conveying the right to use)
Property to the extent such obligations are required to be classified and accounted for as a
capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement,
the amount of such obligations shall be the capitalized amount thereof, determined in accordance
with GAAP.

     “Capital Stock” shall mean any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any other Equity Interests in
an entity however designated, any membership interests in a limited liability company, any and all
similar ownership interests in a Person, in each case whether certificated or uncertificated, and
any and all warrants or options to purchase any of the foregoing.

     “Cash Equivalents” shall mean (a) securities with maturities of 90 days or less from
the date of acquisition thereof that are issued or fully Guaranteed or insured by the United States
Government or any agency thereof, (b) certificates of deposit and eurodollar time deposits with
maturities of 90 days or less from the date of acquisition thereof and overnight bank deposits, in
each case of any commercial bank having capital and surplus in excess of $500,000,000, (c)
repurchase obligations of any commercial bank satisfying the requirements of clause (b) of this
definition, in each case having a term of not more than seven days and relating to securities
issued or fully Guaranteed or insured by the United States Government, (d) commercial paper of a
domestic issuer rated at least A-1 or the equivalent thereof by Standard and Poor’s Ratings Group
(“S&P”) or P-1 or the equivalent thereof by Moody’s, and in either case maturing within 90
days after the date of acquisition thereof, (e) securities with maturities of 90 days or less from
the date of acquisition thereof that are issued or fully Guaranteed by any state, commonwealth, or
territory of the United States, by any political subdivision or taxing authority of any such state,
commonwealth, or territory or by any foreign government, in each case the securities of which
state, commonwealth, territory, political subdivision, taxing authority, or foreign government (as

4

 

the case may be) are rated at least A by S&P or A by Moody’s, (f) securities with maturities
of 90 days or less from the date of acquisition thereof that are backed by standby letters of
credit issued by any commercial bank satisfying the requirements of clause (b) of this definition,
or (g) shares of money market mutual or similar funds that invest exclusively in assets satisfying
the requirements of clauses (a) through (f) of this definition.

     “Change of Control” shall mean, (a) with respect to any Borrower, the replacement of a
majority of the board of directors from the directors who constituted the board of directors on the
Effective Date for any reason other than death or disability, and such replacement shall not have
been approved by such board of directors, as constituted on the Effective Date (or as changed over
time with the approval of the then existing board of directors of Holding); or (b) a Person or
Persons acting in concert, as a result of a tender or exchange offer, open market purchases,
privately negotiated purchases, exercise of the stock pledge or otherwise, shall have become the
beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as
amended) of equity securities of any Borrower representing more than 20% of the combined voting
power of the outstanding securities of such Person, ordinarily having the right to vote in the
election of directors from the beneficial owners as of the Effective Date; or (c) with respect to
FCMC, the failure of Holding to own, directly or indirectly, and free and clear of any adverse
claims (other than Liens securing the obligations under the Legacy Loans Credit Agreement), 100% of
the issued and outstanding Capital Stock of such Borrower.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     “Collateral” shall have the meaning assigned to such term in the Security Agreement,
Mortgage, or any other Loan Document executed and delivered to the Administrative Agent by any Loan
Party and shall include without limitation:

	 	(i)	 	a first and best Lien on FCMC’s Cash or Cash Equivalents in account number
01892543486 at Huntington, maintained in an amount satisfactory to the Administrative
Agent, but not less than $8,500,000;
	 
	 	(ii)	 	a Mortgage in certain real property interests of FCMC at 6 Harrison Street,
Unit 6, New York, New York, subject to the existing Lien of Huntington, as agent for
certain lenders under the Legacy Loans Credit Agreement;
	 
	 	(iii)	 	a first and best Lien on all FCMC’s now owned or hereafter acquired right,
title, and interest in personal property;
	 
	 	(iv)	 	a first Mortgage in certain real property interests of FCMC at 350 Albany St.
New York, New York; and
	 
	 	(v)	 	any monies or sums due FCMC in respect of any program sponsored by any
Governmental Authority, including without limitation any fees received, directly or
indirectly, under the U.S. Treasury Homeowners Affordability and Stability Plan.

     “Collection Account” shall mean that certain account, subject to a Control Agreement,
in the name of the Administrative Agent, being account number 01899715877, maintained at
Huntington, or such other similar account subject to a Control Agreement as may be specified in
writing by the Administrative Agent from time to time as a “Collection Account.”

5

 

     “Collections” shall mean, without duplication, all collections from accounts
receivable, distributions, dividends, payments and other proceeds, net liquidation proceeds or
insurance proceeds, received by or for the account of any Borrower, or received by the
Administrative Agent on or in respect of any asset, property or otherwise constituting part of the
Collateral, including without limitation (i) the net cash proceeds received by any Borrower or any
of its Subsidiaries, together with any non-offered securities issued, in connection with the
securitization or sale of any property, and (ii) the related proceeds of any liquidation,
collection, sale, receipt, appropriation or realization upon the Collateral, net of Approved
Expenses, if any.

     “Commercial Credits” shall have the meaning assigned to that term in the recitals of
this Agreement.

     “Commitment” shall mean, as to any Lender, such Lender’s (i) Letter of Credit
Commitment, (ii) Revolving Loan Commitment to make or maintain any Revolving Loan Advance, and
(iii) Draw Loan Commitment to make or maintain any Draw Loan Advance.

     “Contractual Obligation” shall mean, as to any Person, any provision of any written
agreement, instrument, or other undertaking to which such Person is a party or by which it or any
of its property is bound, or any provision of any security issued by such Person.

     “Control Agreement” means each control agreement, in form and substance satisfactory
to the Administrative Agent, executed and delivered by any Borrower, the Administrative Agent, and
the applicable depositary bank.

     “Credit Agreements” shall have the meaning assigned to that term in the recitals of
this Agreement.

     “Default” shall mean an Event of Default or an event that, with notice or lapse of
time or both, would become an Event of Default.

     “Disbursement Accounts” shall have the meaning assigned to such term in Section
3.01(b).

     “Dollars” and “$” shall mean lawful money of the United States of America.

     “Draw Loan” is defined in Section 2.01(c).

     “Draw Loan Advance” and “Draw Loan Advances” shall have the meanings assigned
to those terms in Section 2.01.

     “Draw Loan Commitment” shall mean, as to any Lender, the lesser of (i) the
Commitment of such Lender to make a Draw Loan Advance as set forth on Schedule 1, or (ii)
the aggregate fair market value of the Guarantor Collateral, in the case of (A) real Property,
multiplied by 70%, and (B) other Property, multiplied by an advance rate satisfactory to the
Administrative Agent in its good faith discretion, less in each instance the amount of any prior
Mortgage or Lien thereon. The original maximum aggregate amount of the Draw Loan Commitments of
all Lenders is $5,000,000.

6

 

     “Draw Loan Note” shall mean the promissory note provided for each Lender’s Draw Loan
Advance and any promissory note delivered in substitution or exchange therefor, in each case as the
same shall be modified, supplemented, amended, or restated and in effect from time to time in
accordance with the terms of this Agreement.

     “Effective Date” shall mean the date on which the conditions set forth in Section 5.01
are satisfied.

     “Eligible Assignee” shall mean (a) a Lender, (b) an Affiliate of a Lender (other than
an individual), (c) any other Person approved by the Administrative Agent, and prior to a Default,
by FCMC, (d) a commercial bank organized under the laws of the United States, or any state thereof,
and having total assets in excess of $250,000,000, (e) a commercial bank organized under the laws
of any other country which is a member of the Organization for Economic Cooperation and Development
or a political subdivision of any such country and which has total assets in excess of
$250,000,000, provided that such bank is acting through a branch or agency located in the United
States and has complied with Section 3.03, (f) a finance company, insurance company, or other
financial institution or fund that has complied with Section 3.03 and is engaged in making,
purchasing, or otherwise investing in commercial loans in the ordinary course of its business and
having (together with its Affiliates) total assets in excess of $250,000,000; provided
that, notwithstanding the foregoing, “Eligible Assignee” shall not include any Loan Party or an
Affiliate of any Loan Party.

     “Equity Interests” shall mean any and all shares, interests, participations, or other
equivalents (however designated) of Capital Stock of a corporation, any other equity interests in
an entity however designated, any membership interests in a limited liability company, any and all
similar ownership interests in a Person, in each case whether certificated or uncertificated, and
any and all warrants or options to purchase any of the foregoing.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time.

     “ERISA Affiliate” shall mean any corporation or trade or business that is a member of
any group of organizations (i) described in Section 414(b) or (c) of the Code of which any Borrower
is a member or (ii) solely for purposes of potential liability under Section 302(c)(11) of ERISA
and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and Section
412(n) of the Code, described in Section 414(m) or (o) of the Code of which any Borrower is a
member.

     “Event of Default” shall have the meaning provided in Article 8.

     “Existing Forbearance Agreement” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Existing Loan Documents” shall have the meaning assigned to that term in the recitals
of this Agreement.

     “Facility Fee” shall mean $135,000.

7

 

     “FCMC” shall mean Franklin Credit Management Corporation, a Delaware corporation.

     “Form W-8BEN” shall have the meaning assigned thereto in Section 3.03(a).

     “Form W-8ECI” shall have the meaning assigned thereto in Section 3.03(a).

     “Franklin Revolving Loans” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Franklin Term Loan Agreement” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Franklin Warehousing Agreement” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “Franklin Warehousing Credits” shall have the meaning assigned to that term in the
recitals of this Agreement.

     “GAAP” shall mean generally accepted accounting principles as in effect from time to
time in the United States of America.

     “Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government and any court or arbitrator having
jurisdiction over any Borrower, any of their Subsidiaries, or any of their properties.

     “Guarantee” shall mean, as to any Person, any obligation of such Person directly or
indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the
payment of any Indebtedness of any other Person or otherwise protecting the holder of such
Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities, or services, or to take-or-pay or otherwise);
provided that the term “Guarantee” shall not include (i) endorsements for collection or
deposit in the ordinary course of business or (ii) obligations to make servicing advances for
delinquent taxes and insurance, or other obligations in respect of Mortgage securing any Mortgage
Loan or REO Property. The terms “Guarantee” and “Guaranteed” used as verbs shall
have correlative meanings.

     “Guarantor” shall mean (i) Thomas J. Axon, in respect of the Draw Loan, and (ii) any
other Person which has become obligated to the Administrative Agent or the Lenders in respect of
any of the Obligations under any Loan Document pursuant to the terms of a Guarantee, including
without limitation James Thomas Realty LLC.

     “Guarantor Collateral” shall mean collectively (i) a Mortgage on certain commercial
real Property in favor of the Administrative Agent, commonly known as 6 Harrison Street, Unit 5,
New York, New York, subject only to a Mortgage in favor of the Communication Workers of America
securing Indebtedness not to exceed the principal sum of $550,000, (ii) a first and exclusive Lien
on one or more promissory notes or other obligations in the aggregate amount of

8

 

$2,019,919.02 as of the Effective Date, secured by first and second Mortgages on commercial Real
Property known as 18 Harrison Street, New York, New York, and (iii) a first and exclusive Lien on a
certain Demand Note in the amount of $1,315,382 as of the Effective Date, secured by a first
Mortgage on commercial Real Property known as 185 Franklin Street, New York, New York .

     “HF” shall mean Huntington Finance LLC, an Ohio limited liability company.

     “Holding” shall mean Franklin Credit Holding Corporation, a Delaware corporation.

     “Huntington” shall have the meaning assigned to that term in the preamble of this
Agreement.

     “Indebtedness” shall mean, for any Person: (a) obligations created, issued, or
incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt
securities, or the sale of Property to another Person subject to an understanding or agreement,
contingent or otherwise, to repurchase such Property from such Person); (b) obligations of such
Person to pay the deferred purchase or acquisition price of Property or services, other than trade
accounts payable arising, and accrued expenses incurred, in the ordinary course of business so long
as such trade accounts payable are payable within ninety (90) days of the date the respective goods
are delivered or the respective services are rendered; (c) indebtedness and obligations of others
secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so
secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person
in respect of letters of credit or similar instruments issued or accepted by banks and other
financial institutions for account of such Person; (e) Capital Lease Obligations of such Person;
(f) obligations of such Person under repurchase agreements or like arrangements; (g) indebtedness
and obligations of others Guaranteed by such Person; (h) all obligations of such Person incurred in
connection with the acquisition or carrying of fixed assets by such Person; (i) indebtedness and
obligations of general partnerships of which such Person is a general partner; and (j) any other
indebtedness or obligation of such Person evidenced by a note, bond, debenture, or similar
instrument.

     “Indemnified Party” shall have the meaning assigned thereto in Section 10.03.

     “Interest Period” shall mean, with respect to any Advance, (i) initially, the period
commencing on the Effective Date with respect to such Advance and ending on the calendar day prior
to the Payment Date of the next succeeding month; (ii) thereafter, each period commencing on the
Payment Date of one month and ending on the calendar day prior to the Payment Date of the next
succeeding month; provided, that if any Interest Period would otherwise expire on a day
which is not a Business Day, such Interest Period shall be extended to the next succeeding Business
Day; provided, however, that if such next succeeding Business Day occurs in the following
calendar month, then such Interest Period shall expire on the immediately preceding Business Day,
and provided further that interest shall continue to accrue on all amounts due and payable
hereunder that remain unpaid on the applicable Termination Date until such time as such amounts are
paid in full.

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     “Interest Rate” shall mean, for each day: (i) in respect of the Revolving Loan
Advances, a per annum rate equal to LIBOR for that day plus the Applicable Margin, and (ii) in
respect of the Draw Loan Advances, a per annum rate equal to LIBOR for that day plus the Applicable
Draw Loan Margin.

     “Inventory” means all now owned or hereafter acquired right, title and interest in
“inventory” (as defined in the UCC) and goods, goods in transit, goods held for sale or lease, or
to be furnished under any contract of service, raw materials, work in process or supplies, and all
materials used or consumed in the business of any Borrower, and any property the sale or other
disposition of which has given rise to Accounts and which has been returned, repossessed or stopped
in transit.

     “Investment” means, with respect to any Person, (i) any purchase or other acquisition
by that Person of any securities or Equity Interest, or of a beneficial interest in any securities
or Equity Interest issued by any other Person, (ii) any purchase by that Person of all or a
significant part of the Property of a business conducted by another Person, and (iii) any loan,
advance (other than deposits with financial institutions available for withdrawal on demand,
prepaid expenses, accounts receivable, and similar items made or incurred in the ordinary course of
business as presently conducted), or a capital contribution by that Person to any other Person,
including all Indebtedness to such Person arising from a sale of Property by such Person other than
in the ordinary course of its business.

     “Investment Company Act” shall have the meaning assigned thereto in Section 6.07.

     “Issuing Bank” shall mean initially Huntington, and thereafter means any Lender that,
at the request of the Administrative Agent and with the consent of each Borrower, agrees, in such
Lender’s sole discretion, to become an Issuing Bank for the purpose of issuing Letters of Credit
pursuant to Section 2.10.

     “Legacy Loans Credit Agreement” shall mean that certain Amended and Restated Credit
Agreement dated as of the Effective Date by and among Franklin Asset Corporation, Tribeca Lending
Corp., the other borrowers party thereto, the financial institutions party thereto as lenders, and
The Huntington National Bank, as administrative agent, as amended, restated, supplemented or
otherwise modified from time to time.

     “Lender” shall have the meaning assigned thereto in the preamble hereof and includes
the financial institutions party hereto as Lenders on the Effective Date and parties that become
Lenders thereafter pursuant to an Assignment and Acceptance.

     “Letter of Credit” and “Letters of Credit” shall mean any letter of credit
issued by the Issuing Bank for the account of any Borrower, either as originally issued or as the
same may, from time to time, be amended or otherwise modified, extended, or replaced.

     “Letter of Credit Commitment” shall mean, as to any Lender, the Commitment of such
Lender to pay any Risk Participation Liability as set forth on Schedule 1. The original
aggregate amount of the Letter of Credit Commitments of all Lenders is $6,500,000.

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     “Letter of Credit Exposure” shall mean, as of any date of determination, the aggregate
undrawn stated amount of all outstanding Letters of Credit plus the aggregate of all
amounts drawn under Letters of Credit for which the Issuing Bank has not yet received payment or
reimbursement (whether from any Borrower or otherwise); provided, however, that the Letter
of Credit Exposure shall at no time exceed the aggregate sum of the Letter of Credit Commitment.

     “Letter of Credit Facing Fee” shall mean, with respect to each issued and outstanding
Letter of Credit, a facing fee payable to the Issuing Bank, for its own account, at the rate of
0.125% per annum multiplied by the average daily undrawn amount of such Letter of Credit during the
period in respect of which such fee is paid.

     “Letter of Credit Fee” shall mean (i) a fee equal to fifty percent (50%) of the
Applicable Margin, due and payable in advance to the Issuing Bank upon the issuance of each Letter
of Credit, which shall be shared among the Lenders, based of each Lender’s Pro Rata Share of the
Letter of Credit Commitment.

     “LIBOR” shall mean, for each day during an Interest Period with respect to an Advance,
the rate per annum obtained by dividing (1) the actual or estimated per annum rate, or the
arithmetic mean of the per annum rates, of interest for deposits in U.S. dollars for one (1) month,
as determined by the Administrative Agent in its good faith discretion based upon information which
appears on page LIBOR01, captioned British Bankers Assoc. Interest Settlement Rates, of the Reuters
America Network, a service of Reuters America Inc. (or such other page that may replace that page
on that service for the purpose of displaying London interbank offered rates; or, if such service
ceases to be available or ceases to be used by the Administrative Agent, such other reasonably
comparable money rate service as the Administrative Agent may select) or upon information obtained
from any other reasonable procedure, as of two (2) Business Days prior to the commencement of such
Interest Period; by (2) an amount equal to one minus the stated maximum rate (expressed as a
decimal), if any, of all reserve requirements (including, without limitation, any marginal,
emergency, supplemental, special or other reserves) that is specified on each date LIBOR is
determined by the Board of Governors of the Federal Reserve System (or any successor agency
thereto) for determining the maximum reserve requirement with respect to eurocurrency funding
(currently referred to as “Eurocurrency liabilities” in Regulation D of such Board) maintained by a
member bank of such system, or any other regulations of any Governmental Authority having
jurisdiction with respect thereto, all as conclusively determined by the Administrative Agent. As
used herein, “banking day” shall mean any day other than a Saturday or a Sunday on which banks are
open for business in Columbus, Ohio, and on which banks in London, England, settle payments.
Subject to any maximum or minimum interest rate limitation specified herein or by applicable law,
LIBOR shall change automatically without notice to any Borrower immediately on the first day of
each Interest Period, with any change thereto effective as of the opening of business on the day of
any change.

     “LIBOR Advance” shall mean an Advance bearing an Interest Rate based on LIBOR.

     “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), other charge or security interest, or any

11

 

preference, priority or other agreement or preferential arrangement of any kind or nature
whatsoever.

     “Loan Documents” shall mean, collectively, this Agreement, the Notes, the Security
Agreement, each agreement in respect of a Blocked Account, Disbursement Account, Collection
Account, or Reserve Account, each deposit account control agreement, each Application and Agreement
for Letter of Credit, letter of credit reimbursement agreement, pledge agreement, joinder
agreement, collateral assignments, Guarantee, banking services agreement, cash management
agreement, amendment, modification agreement, instrument, financing statements and each other
document or agreement relating to this Agreement or the transactions contemplated by this
Agreement; provided, however, no Transaction Document shall be a Loan Document.

     “Loan Parties” shall mean each Borrower and any Guarantor collectively, and “Loan
Party” means any Borrower, any Guarantor and any other Person which has become obligated to the
Administrative Agent or any Lender under the terms of this Agreement or any other Loan Document
pursuant to a joinder, supplement or Guarantee and other Loan Documents satisfactory to the
Administrative Agent in its sole and absolute discretion.

     “Mandatory Prepayment Event” shall mean:

     (a) any sale, transfer, or other disposition of any Property of any Borrower or any
property constituting Collateral pursuant hereto; or

     (b) any casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any Property of any Borrower or any
Collateral; or

     (c) the issuance by any Borrower of any Equity Interests, or the receipt by Borrower of
any capital contribution; or

     (d) the incurrence by any Borrower of any Subordinated Indebtedness; or

     (e) the receipt by any Borrower of the proceeds of any settlement or monetary judgment
in respect of any litigation or other similar proceeding.

     “Margin Stock” shall have the meaning assigned to that term in Regulation U of the
Board of Governors of the Federal Reserve System (or any successor agency thereto) as in effect
from time to time.

     “Material Adverse Effect” shall mean a material adverse effect on (a) the operations,
business, properties, liabilities (actual or contingent), or condition (financial or otherwise) of
any Borrower, (b) the ability of any Loan Party to perform in all material respects its Obligations
under this Agreement or any obligations under any of the Loan Documents to which it is a party, (c)
the validity or enforceability in all material respects of any of the Loan Documents, other than
any Loan Document that is terminated with the prior written consent of the Administrative Agent,
and if required hereby, the Required Lenders, (d) the rights and remedies of the

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Administrative Agent or any Lender under any of the Loan Documents (including without
limitation the Administrative Agent’s or any Lender’s ability to foreclose upon any Collateral or
to exercise any of its other rights or remedies under any of the Loan Documents, whether as a
secured party under the Uniform Commercial Code, in equity, at law or otherwise), (e) the timely
payment of the principal of or interest on the Advances or other amounts payable in connection
therewith or (f) the Collateral; provided, however, that in no event shall a Material Adverse
Effect be deemed to occur as a result of the consummation of the Transaction Documents.

     “Moody’s” shall mean Moody’s Investors Service, Inc.

     “Mortgage” shall mean, any mortgage, security agreement and assignment of rents, deed
of trust, security deed or other instrument which creates a Lien on the fee simple or a leasehold
estate in the real property and related personal property securing any obligation described
therein.

     “Mortgage Loan” shall mean any mortgage loan in which any Borrower has an interest,
which mortgage loan includes, without limitation, (i) a mortgage note, the related Mortgage and all
other mortgage loan documents and (ii) all right, title and interest of any Borrower in and to the
related property subject to a Mortgage as collateral security therefor.

     “Multiemployer Plan” shall mean a multiemployer plan defined as such in Section 3(37)
of ERISA to which contributions have been or are required to be made by any Borrower or any ERISA
Affiliate and that is covered by Title IV of ERISA.

     “Net Income Before Taxes” of any Person shall mean, for any period, the net income (or
loss) of such Person before taxes for such period taken as a single accounting period, determined
in conformity with GAAP.

     “Net Proceeds” shall mean, with respect to any Mandatory Prepayment Event, (a) the
cash proceeds received in respect of such Mandatory Prepayment Event, including (i) any cash
received in respect of any non-cash proceeds (including any cash payments received by way of
deferred payment of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but only as and when received), (ii) in the case of a casualty
or other insured damage to any property or asset of any Borrower, insurance proceeds, and (iii) in
the case of a condemnation or similar event, condemnation awards and similar payments, in each case
net of (b) the sum of (i) all reasonable and customary fees and out-of-pocket expenses paid to
third parties (other than Affiliates) in connection with such Mandatory Prepayment Event, and
(ii) in the case of a sale, transfer or other disposition of an asset or a casualty, a condemnation
or similar proceeding, or the receipt of any tax refund, the amount of all payments required to be
made as a result of such Mandatory Prepayment Event to repay Indebtedness (other than Advances)
secured by such asset.

     “Net Worth” shall mean, at the time of each determination, in respect to any Person
and for all purposes, the excess of total assets of such Person over total liabilities of such
Person, determined in accordance with GAAP.

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     “New Trust” shall mean Franklin Mortgage Asset Trust 2009-A, a Delaware statutory
trust.

     “Note” or “Notes” shall mean any one or more of the Revolving Loan Notes or
the Draw Loan Notes.

     “Obligations” shall mean all loans, debts, principal, interest (including any interest
that, but for the commencement of an insolvency proceeding, would have accrued), premiums,
liabilities (including all amounts charged to any Borrower’s account pursuant hereto), obligations
(including indemnification obligations), fees (including the fees provided for in this Agreement),
charges, costs, expenses (including any fees or expenses that, but for the commencement of an
insolvency proceeding would have accrued), lease payments, guaranties, covenants, and duties of any
kind and description owing by any Borrower to any Secured Party pursuant to or evidenced by any
Loan Document and irrespective of whether for the payment of money, whether direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter arising, and including all
interest not paid when due and all expenses that any Borrower is required to pay or reimburse by
any Loan Document, by law, or otherwise. Any reference in this Agreement or in any Loan Document
to the Obligations shall include all extensions, modifications, renewals, or alterations thereof,
both prior and subsequent to any insolvency proceeding.

     “Payment Date” shall mean either (a) the last day of each calendar month or, if such
day is not a Business Day, the next succeeding Business Day, or (b) in the case of the final
Payment Date for the Advances, the Termination Date; provided, however, payments of
interest accrued on the Advances shall commence on April 30, 2009. If the due date of any payment
due in respect to any Advance shall be a day that is not a Business Day, such due date shall be
extended to the next succeeding Business Day; provided, however, that if such next
succeeding Business Day occurs in the following calendar month, then such due date shall be the
immediately preceding Business Day.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to
any or all of its functions under ERISA.

     “Person” shall mean any individual, corporation, company, voluntary association,
partnership, joint venture, limited liability company, trust, unincorporated association or
government (or any agency, instrumentality or political subdivision thereof).

     “Plan” shall mean an employee benefit or other plan established or maintained by any
Borrower or any ERISA Affiliate and that is covered by Title IV of ERISA, other than a
Multiemployer Plan.

     “Post-Default Rate” shall mean, in respect of any principal of any Advance or any
other amount under this Agreement, any Note or any other Loan Document that is not paid when due to
the Administrative Agent, Issuing Bank, any Lender or any Affiliate thereof (whether at stated
maturity, by acceleration or mandatory prepayment or otherwise), a rate per annum during the period
from and including the due date to but excluding the date on which such amount is paid in full
equal to the sum of (x) five percent (5.00%) per annum plus (y) the related fixed or
variable Interest Rate otherwise applicable to such Advance or other amount.

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     “Prime Commercial Rate” shall mean the commercial lending rate of interest per annum
as fixed from time to time by the management of Huntington and its successors, at its main office
and designated as its “Prime Commercial Rate,” from time to time in effect, with each change in
such rate automatically and immediately changing the interest rate on all applicable Advances
without notice to Borrowers, subject to any maximum or minimum interest rate limitation specified
by applicable law. Each Borrower hereby waives any right to claim that the Prime Commercial Rate is
an interest rate other than that rate designated by Huntington as its “Prime Commercial Rate” on
the grounds that: (i) such rate may or may not be published or otherwise made known to each
Borrower or (ii) Huntington may make loans to certain borrowers at interest rates that are lower
than its “Prime Commercial Rate.”

     “Pro Forma Balance Sheet” shall have the meaning assigned thereto in Section 6.10(b).

     “Property” shall mean any right or interest in or to property of any kind whatsoever,
whether real, personal, or mixed, and whether tangible or intangible.

     “Pro Rata Share” shall mean, for any Lender as of any date of determination, the
percentage obtained, by dividing (A) the Commitment of such Lender by (B) the
aggregate Commitments of all Lenders (the applicable amount in clause (A) above being such Lender’s
“Commitment Exposure” as of such date of determination).

     “Purchasers” shall have the meaning assigned thereto in Section 12.01(b).

     “Register” shall have the meaning assigned thereto in Section 12.01(d).

     “Regulation U” shall mean Regulation U of the Board of Governors of the Federal
Reserve System (or any successor agency thereto), as the same may be modified and supplemented and
in effect from time to time.

     “Related Assets” shall have the meaning assigned thereto in Section 7.03(f).

     “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, and advisors of such Person and of such Person’s
Affiliates.

     “REO Property” shall mean any real property, the title to which is held by any
Borrower or one of its Subsidiaries, together with all buildings, fixtures and improvements thereon
and all other rights, benefits and proceeds arising from and in connection with such property.

     “Required Lenders” shall mean the Lenders having in the aggregate at least 50.1% of
the sum of the Commitment Exposure of all Lenders.

     “Required Payments” shall have the meaning assigned thereto in Section 2.04(c).

     “Requirement of Law” shall mean, as to any Person, the certificate of incorporation
and by-laws, limited liability company agreement (whether written or oral), certificate of
formation or other organizational or governing documents of such Person, and any law, treaty, rule,
or regulation (including, without limitation, the Investment Company Act of 1940, as amended) or

15

 

determination of an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which such Person or any of
its property is subject.

     “Reserve Account” shall mean that certain account, subject to a Control Agreement, in
the name of the Administrative Agent, being account number 01892594529, for the payment of any
expense of a Borrower approved by the Administrative Agent, maintained at Huntington, or such other
similar account as may be specified in writing by the Administrative Agent from time to time as the
“Reserve Account.”

     “Reserves” shall mean such cash reserves in the Reserve Account or such other
collateral account subject to a Control Agreement pledged as security for the Obligations as the
Administrative Agent shall establish in such amounts, and with respect to such matters, as the
Administrative Agent in its good faith discretion shall deem necessary or appropriate, including
without limitation, to make available to any Borrower or a creditor of any Borrower with respect to
(i) sums that any Borrower is required to pay pursuant to any Contractual Obligations (such as
taxes, or assessments), (ii) Liens or trusts for ad valorem, excise, sales, or other taxes where
given priority under applicable law in and to an item of Collateral, (iii) the payment of any
Required Payment or interest under any Advance, or any fees or expenses owing or anticipated to be
owing to any Secured Party under the terms of any Loan Document, and (iv) funds required to
preserve or protect any of the Collateral.

     “Responsible Officer” shall mean, as to any Person, the chief executive officer or,
with respect to financial matters, the chief financial officer of such Person; provided,
that in the event any such officer is unavailable at any time he or she is required to take any
action hereunder, Responsible Officer shall mean any officer authorized to act on such officer’s
behalf as demonstrated by a certificate of corporate resolution.

     “Restricted Payment” shall mean (i) any dividend or other distribution, direct or
indirect, on account of any shares of any class of Capital Stock or Equity Interest of any Borrower
now or hereafter outstanding, (ii) any redemption, retirement, sinking fund or similar payment,
purchase or other acquisition for value, direct or indirect, of any shares of any class of Capital
Stock or Equity Interest of any Borrower now or hereafter outstanding, (iii) any payment made to
redeem, purchase, repurchase, or retire, or to obtain the surrender of, any outstanding warrants,
options, or other rights to acquire shares of any class of Capital Stock or Equity interest of any
Borrower now or hereafter outstanding, and (iv) any payment or prepayment of principal, premium, if
any, or interest, fees, or other charges on or with respect to, and any redemption, purchase,
retirement, defeasance, sinking fund or similar payment and any claim to rescission with respect
to, any Subordinated Indebtedness.

     “Revolving Loan” is defined in Section 2.01(b).

     “Revolving Loan Advance” and “Revolving Loan Advances” shall have the meanings
assigned to those terms in Section 2.01.

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     “Revolving Loan Commitment” shall mean, as to any Lender, the Commitment of such
Lender to make a Revolving Loan Advance as set forth on Schedule 1. The original aggregate
amount of the Revolving Loan Commitments of all Lenders is $2,000,000.

     “Revolving Loan Note” shall mean the amended and restated promissory note providing
for each Lender’s Revolving Loan Advance and any promissory note delivered in substitution or
exchange therefor, in each case as the same shall be modified, supplemented, amended, or restated
and in effect from time to time in accordance with the terms of this Agreement.

     “Risk Participation Liability” shall mean, as to each Letter of Credit, all
reimbursement obligations of any Borrower to the Issuing Bank with respect to a Letter of Credit,
consisting of (a) the amount available to be drawn or which may become available to be drawn, and
(b) all accrued and unpaid interest, fees, and expenses payable with respect thereto.

     “Secured Parties” shall mean the Administrative Agent, the Issuing Bank, and each
Lender.

     “Security Agreement” shall mean each of: (i) a certain Amended and Restated Security
Agreement, substantially in the form of Exhibit C, and (ii) a certain Investment Property
Security Agreement, substantially in the form of Exhibit D, each dated as of the date
hereof and made by Borrowers in favor of the Administrative Agent on behalf of the Secured Parties,
as each of the same may be amended, supplemented, or otherwise modified and in effect from time to
time in accordance with the terms thereof.

     “Servicer” shall mean FCMC or such other servicer of the assets of New Trust.

     “Servicing Agreement” shall mean that certain Servicing Agreement entered into as of
the Effective Date between New Trust and FCMC with respect to the assets purchased by New Trust
pursuant to the Transactions, as amended, restated, supplemented, substituted or otherwise modified
from time to time.

     “Subordinated Indebtedness” shall mean any Indebtedness incurred by a Borrower or any
Subsidiary, the payment of which is subject to a debt subordination agreement or other
subordination provisions in favor of the Administrative Agent, to the written satisfaction of the
Administrative Agent and the terms (including, without limitation, with respect to amount,
maturity, amortization, interest rate, premiums, fees, covenants, subordination terms, events of
default and remedies) of which are reasonably acceptable to the Administrative Agent.

     “Subsidiary” shall mean, with respect to any Person, any corporation, limited
liability company, partnership or other entity of which at least a majority of the securities or
other ownership interests having by the terms thereof ordinary voting power to elect a majority of
the board of directors or other persons performing similar functions of such corporation,
partnership, limited liability company or other entity (irrespective of whether or not at the time
securities or other ownership interests of any other class or classes of such corporation,
partnership or other entity shall have or might have voting power by reason of the happening of any
contingency) is at the time directly or indirectly owned or controlled by such Person or one or
more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.

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     “Termination Date” shall mean March 31, 2010, or such earlier date on which this
Agreement shall terminate in accordance with the provisions hereof or by operation of law.

     “Transaction Documents” shall mean the agreements set forth on Schedule 7
attached hereto.

     “Transactions” shall have the meaning assigned to that term in the Legacy Loans Credit
Agreement.

     “Transfer” shall have the meaning assigned thereto in Section 7.12.

     “Transferee” shall have the meaning assigned thereto in Section 12.02.

     “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect on the
date hereof in the State of Ohio; provided, that if by reason of mandatory provisions of
law, the perfection or the effect of perfection or non-perfection of the security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than
Ohio, “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection.

     “U.S. Taxes” shall have the meaning assigned thereto in Section 3.03(a).

          Section 1.02 Accounting Terms and Determinations. Except as otherwise expressly
provided herein, all accounting terms used herein shall be interpreted, and all financial
statements and certificates and reports as to financial matters required to be delivered to the
Administrative Agent under this Agreement shall be prepared, in accordance with GAAP.

          Article II. Advances and Prepayments.

          Section 2.01 Advances.

     Subject to the terms and conditions of this Agreement and in reliance on the representations,
warranties, and covenants of each Borrower herein set forth, each Lender hereby severally agrees on
the Effective Date to amend and restate and make Advances described in this Section 2.01:

     (a) Letters of Credit Advances. The Issuing Bank shall issue Letters of Credit
for the account of any Borrower from time to time on any Business Day during the period from
and including the Effective Date to but excluding the Termination Date, in an aggregate
amount not exceeding the Letter of Credit Commitment in accordance with the terms and
subject to the conditions of Section 2.10 of this Agreement. Letters of Credit shall be
used solely to assure that all state licensing requirements of FCMC are met.

     (b) Revolving Loan Advances. Each Lender will extend a revolving credit
facility (the “Revolving Loan”) to Borrowers, subject to the terms and conditions
hereof, the principal sum outstanding under which at any time shall not exceed such Lender’s
Revolving Loan Commitment.

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     (i) Interest shall accrue on the unpaid balance of the Revolving Loan at an
interest rate per annum equal to LIBOR plus the Applicable Margin. All interest
accruing on the Revolving Loan shall be due and payable on each Payment Date.

     (ii) The principal sum and all obligations outstanding under the Revolving Loan
shall be due and payable in full on the earlier of (A) the date that the Revolving
Loan is due and payable in full pursuant to the terms of this Agreement, whether by
acceleration or otherwise, or (B) the Termination Date.

     (iii) The net proceeds of the Revolving Loan shall be used solely (A) to assure
that all state licensing requirements of FCMC are met, and (B) to pay Approved
Expenses of Holding.

     (b) Draw Loan Advances. Each Lender will extend a draw credit facility (the
“Draw Loan”) to Borrowers, subject to the terms and conditions hereof, the principal
sum outstanding under which at any time shall not exceed such Lender’s Draw Loan Commitment.

     (i) Interest shall accrue on the unpaid balance of the Draw Loan at an interest
rate per annum equal to LIBOR plus the Applicable Draw Loan Margin. All interest
accruing on the Draw Loan shall be due and payable on each Payment Date.

     (ii) The principal sum and all obligations outstanding under the Draw Loan
shall be due and payable in full on the earlier of (A) the date that the Draw Loan
is due and payable in full pursuant to the terms of this Agreement, whether by
acceleration or otherwise, or (B) the Termination Date.

     (iii) The proceeds of the Draw Loan may be advanced in partial amounts at any
time prior to ten (10) calendar days before the Termination Date; provided,
however, that no Draw Loan Advances repaid shall be readvanced.

     (iv) The net proceeds of the Draw Loan shall be used solely to provide for
working capital needs of FCMC.

     Section 2.02 Notes.

     (a) Each Lender’s Revolving Loan Advance shall be evidenced by an amended and restated
promissory note of Borrowers, substantially in the form of Exhibit 
A-1, and each Lender’s Draw Loan Advance shall be evidenced by a promissory
note of Borrowers, substantially in the form of Exhibit A-2, in each case dated as
of the Effective Date and payable to such Lender or its registered assigns in a principal
amount equal to such Lender’s Pro Rata Share of the Revolving Loan Commitment or the Draw
Loan Commitment, as applicable.

19
 

 

     (b) The date, amount, and Interest Rate applicable from time to time in respect of each
Advance made by a Lender, and each payment made on account of the principal thereof or
interest thereon, shall be recorded by such Lender on its books and records and, prior to
any transfer of the applicable Note, noted by such Lender on the grid attached to such Note
or any continuation thereof. Any such recordation or notation shall be conclusive and
binding on each Borrower, absent manifest error; provided, that the failure of such
Lender to make any such recordation or notation shall not affect the obligations of any
Borrower to make payment when due of any amount owing hereunder or under such Note in
respect of the applicable Advance; and, provided further, that in the event of any
inconsistency between the Register and any Lender’s books and records, the recordation in
the Register shall govern.

     Section 2.03 Inability to Determine Rates; Illegality.

     Anything contained herein to the contrary notwithstanding, if, prior to or upon any
determination of LIBOR, for any applicable Interest Period:

     (a) the Administrative Agent or the Required Lenders determine in good faith, which
determination shall be conclusive and binding upon each Borrower, that quotations of
interest rates for the relevant deposits referred to in the definition of “LIBOR” are not
being provided in the relevant amounts or for the relevant maturities for purposes of
determining rates of interest for LIBOR Advances as provided herein; or

     (b) the Administrative Agent or the Required Lenders determine in good faith, which
determination shall be conclusive and binding upon each Borrower, that LIBOR is not likely
to adequately cover the cost to such Lenders of making or maintaining the relevant LIBOR
Advances; or

     (c) any Lender (for purposes of this Section 2.03, an “Affected Lender”)
notifies the Administrative Agent that it has become unlawful for such Lender to honor its
obligations to make or maintain LIBOR Advances hereunder;

then the Administrative Agent shall give Borrowers prompt notice thereof and, so long as such
condition remains in effect, all Advances of the Lenders or such Affected Lender, as the case may
be, shall bear interest at a rate per annum equal to the Prime Commercial Rate plus six
percent (6%).

     Section 2.04 Payments of Interest on the Advances; Waterfall.

     (a) Interest on the Advances. Borrowers shall pay to the Administrative Agent for the
benefit of the Lenders interest on the aggregate outstanding principal amount of the Advances for
the period from and including the respective dates of such Advances to but excluding the respective
dates such Advances are paid in full, in each case at a rate per annum equal to the applicable
Interest Rate. Notwithstanding the foregoing,
Borrowers shall pay to the Administrative Agent for the benefit of the Lenders
interest at the applicable Post-Default Rate (i) on the outstanding principal amount of any
Advances during any period when any Event of Default has occurred and is continuing

20

 

and
(ii) on any interest or amount (other than principal of any Advance) payable by Borrowers
hereunder or under the Note that shall not be paid in full when due, for the period from
and including the due date thereof to but excluding the date the same is paid in full.
Accrued and unpaid interest on each Advance shall be payable monthly on each Payment Date
and on the Termination Date, except that interest payable at the applicable Post-Default
Rate shall accrue daily and shall be payable promptly upon demand.

     (b) Payment Date Reports. No later than two (2) Business Days prior to each
Payment Date, the Administrative Agent shall provide to each Borrower a report stating (i)
the amount of interest due for the current Interest Period pursuant to Section 2.04(a), and
(ii) if such Payment Date occurs on a Termination Date, the outstanding aggregate principal
amount of the Advances; provided that the failure of the Administrative Agent to
make any such report shall not affect the obligations of any Borrower to make payment when
due of any amount owing hereunder or under any Note in respect of the related Advances.

     (c) Distributions on Payment Dates. Without in any way limiting the
obligations of each Borrower to make the payments of interest that are required to be made
in respect of the Advances pursuant to Section 2.04(a) (with respect to any Payment Date,
the “Required Payments”), each Borrower hereby authorizes and directs the
Administrative Agent, on each Payment Date, to apply all Collections received from and
after the immediately preceding Payment Date to but excluding such Payment Date (the
aggregate amount of such Collections, after deducting any Reserves, shall be referred to as
the “Applicable Collections Amount” in respect of such Payment Date) in the
following order of priority:

first, to pay any costs, expenses, fees, charges, or indemnities due the
Administrative Agent under the terms of this Agreement or any Loan Document;

second, to pay any costs, expenses, fees, charges, or indemnities due any
Lender under the terms of this Agreement or any Loan Document;

third, to pay any Letter of Credit Facing Fee, Letter of Credit Fee, or
other fees due in respect of any Letter of Credit;

fourth, to the payment of interest on the Advances;

fifth, on a pro rata basis to repay any Letter of Credit Exposure,
any Revolving Loan Advances, and any Draw Loan Advances to any Lender in full;

sixth, to any obligations secured by any Collateral then remaining; and

seventh, to FCMC for the benefit of the Borrowers.

          Section 2.05 Mandatory Prepayments. Within five (5) Business Days after the
occurrence of any Mandatory Prepayment Event, Borrowers shall prepay the Advances in an aggregate
amount equal to the Net Proceeds of such Mandatory Prepayment Event.

21

 

          Section 2.06 Breakage. If any Borrower makes any prepayment of the Advances on a day
that is not a Payment Date, Borrowers shall indemnify each Lender and hold each Lender harmless
from and against any actual loss or expense that such Lender may sustain or incur arising from (i)
the re-employment of funds obtained by such Lenders to maintain the portion of such Lender’s
Advances so prepaid or (ii) fees payable to terminate the arrangements from which such funds were
obtained, in either case which actual loss or expense shall be equal to the excess, as determined
by the such Lender, of (x) its cost of obtaining funds for such portion of such Lender’s Advances
for the period from the date of such prepayment through the following Payment Date over (ii) the
amount of interest likely to be realized by such Lender in redeploying the funds not utilized by
reason of such prepayment for such period. This Section 2.06 shall survive termination of this
Agreement and payment in full of any Note.

     Section 2.07 Requirements of Law.

     (a) If any Requirement of Law or any change in the interpretation or application
thereof, or compliance by the Administrative Agent or any Lender with any request or
directive (whether or not having the force of law) from any central bank or other
Governmental Authority made subsequent to the date hereof:

	 	(i)	 	shall subject the Administrative Agent or any Lender to any tax
of any kind whatsoever with respect to this Agreement, such Lender’s Note(s) or
any Advance(s) made by it (excluding net income taxes), or change the basis of
taxation of payments to the Administrative Agent or any Lender in respect
thereof;
	 
	 	(ii)	 	shall impose, modify, or hold applicable any reserve, special
deposit, compulsory advance, or similar requirement against assets held by, or
deposits or other liabilities in or for the account of, advances or other
extensions of credit by, or any other acquisition of funds by any office of
such Lender; or
	 
	 	(iii)	 	shall impose on the Administrative Agent or any Lender any
other condition;

and the result of any of the foregoing is to increase the cost to the Administrative Agent
or such Lender, by an amount which the Administrative Agent or such Lender deems to be
material, of making, continuing, or maintaining any Advance or to reduce any amount
receivable hereunder in respect thereof, then, in any such case, Borrowers shall promptly
pay the Administrative Agent or such Lender such additional amount or amounts as will
compensate the Administrative Agent or such Lender for such increased cost or reduced amount
receivable thereafter incurred.

     (b) If any Lender shall have determined that the adoption, effectiveness, phase-in, or
applicability of, or any change in, any Requirement of Law regarding capital adequacy or in
the interpretation or application thereof, or compliance by such Lender or any corporation
controlling such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority

22

 

made subsequent to the date
hereof shall have the effect of reducing the rate of return on that Lender’s or such
corporation’s capital as a consequence of its obligations hereunder to a level below that
which that Lender or such corporation (taking into consideration that Lender’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by that Lender
to be material, then from time to time, Borrowers shall promptly pay to that Lender such
additional amount or amounts as will thereafter compensate that Lender for such reduction.

     (c) If the Administrative Agent or any Lender becomes entitled to claim any additional
amounts pursuant to this Section 2.07, it shall promptly notify Borrowers of the event by
reason of which it has become so entitled. A certificate as to any additional amounts
payable pursuant to this Section 2.07 submitted by the Administrative Agent or a Lender to
any Borrower shall be conclusive and binding on Borrowers in the absence of manifest error.

     (d) Failure or delay on the part of the Administrative Agent or any Lender to demand
compensation pursuant to this Section 2.07 shall not constitute a waiver of the
Administrative Agent’s or such Lender’s right to demand such compensation.

          Section 2.08 Purpose of Advances. Letters of Credit and Revolving Loan Advances shall
be used solely (i) to assure that all state licensing requirements of FCMC are met, and (ii) to pay
approved expenses to Holding. Draw Loan Advances shall be used solely to provide for working
capital of FCMC.

          Section 2.09 Facility Fee. Borrowers agree, jointly and severally, to pay the
Facility Fee to the Administrative Agent on the Effective Date, for the account of each applicable
Lender according to its Pro Rata Share.

     Section 2.10 Letters of Credit.

     (a) Letters of Credit. Subject to the terms and conditions of this Agreement
and any applicable Application and Agreement for Letter of Credit, on any Business Day at
least thirty (30) Business Days prior to the Termination Date and upon Borrower’s written
request to the Administrative Agent and the Issuing Bank, the Issuing Bank may issue such
Letters of Credit in such face amounts as requested; provided that: (i) on the date
of issuance of any Letter of Credit and after giving effect to the issuance thereof, the
Letter of Credit Exposure will not exceed the amount of such Letter of Credit Exposure
stated in the definition of Letter of Credit Commitment; (ii) the expiry date of any Letter
of Credit shall not be later than the date which is thirty (30) days prior to the
Termination Date; provided, however, that the Issuing Bank may permit, in
its sole discretion any Letter of Credit to remain outstanding after the Termination Date
if one or more Loan Parties shall deposit prior to the date that is ten (10) Business Days
prior to the Termination Date into an account with the Issuing Bank, in the name and for
the benefit of the Issuing Bank, an amount in cash equal to one hundred five percent (105%)
of the face amount of each such Letter of Credit as of such date, (iii) Borrower has
provided the information necessary for the Issuing Bank to complete the form of Letter of
Credit, and (iv) the issuance of such Letter of Credit would not violate any policy of the
Issuing

23

 

Bank. On and after the Effective Date, the Letters of Credit issued by the Issuing
Bank for the account of any Borrower prior to the date of this Agreement and set forth on
Schedule 2.10 hereto shall be subject to the terms of this Agreement and deemed
issued pursuant to the terms hereof. Any deposit held by the Issuing Bank as collateral
for the payment and performance of the obligations of any Borrower under the outstanding
Letters of Credit shall be under the Administrative Agent’s exclusive dominion and control,
including the exclusive right of withdrawal, over such account. Other than any interest
earned on the investment of such deposits, which investments shall be made at the option
and sole discretion of the Administrative Agent, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys
in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank
for letter of credit disbursements for which it has not been reimbursed and, to the extent
not so applied, shall be held for the satisfaction of the reimbursement obligations or any
other Obligations of the Loan Parties at such time.

     (b) Reimbursement Obligations; Payment of Letter of Credit. Each Borrower
agrees unconditionally, irrevocably and absolutely to pay immediately to the Issuing Bank
the amount of each advance drawn under or pursuant to a Letter of Credit or any draft
related thereto (such obligation of each Borrower to reimburse the Issuing Bank for an
advance made under a Letter of Credit or a related draft being hereinafter referred to as a
“L/C Reimbursement Obligation”), each such reimbursement to be made by Loan Parties
no later than the Business Day on which the Issuing Bank makes payment of each such draft.
If the Loan Parties at any time fail to repay an L/C Reimbursement Obligation, the Loan
Parties shall be deemed to have elected to borrow pursuant to the Revolving Loan, as of the
date of the advance giving rise to the L/C Reimbursement Obligation in the amount of the
unpaid L/C Reimbursement Obligation. Such borrowing shall be made as of the date of the
payment giving rise to such L/C Reimbursement Obligation, automatically, without notice and
without any requirement to satisfy the
conditions precedent otherwise applicable to an advance under the Revolving Loan. If,
for any reason, the Loan Parties fail to repay an L/C Reimbursement Obligation on the day
such L/C Reimbursement Obligation arises, and, for any reason, the Administrative Agent is
unable to make or has no obligation to make an advance under the Revolving Loan, then such
L/C Reimbursement Obligation shall bear interest from and after such day, until paid in
full, at the interest rate applicable to a LIBOR Advance. Without limiting the foregoing in
any way, in consideration for the issuance by the Issuing Bank of the Letters of Credit,
each Borrower hereby authorizes, empowers, and directs the Administrative Agent to disburse
directly to the Issuing Bank from any Reserve Account, any other account maintain or
controlled by the Administrative Agent, or any other source, an amount equal to the stated
amount of each draft drawn under each Letter of Credit, plus all interest, costs, expenses
and fees due to the Issuing Bank pursuant to this Agreement or any other Loan Document.

     (c) Acceleration of Undrawn Amounts. Should the Administrative Agent or any
Lender demand payment of the Obligations hereunder during the existence of an Event of
Default prior to the Termination Date, the Issuing Bank, by written notice to Borrower, may
take one or more of the following actions: (i) declare any obligation of the Issuing Bank
to issue Letters of Credit hereunder terminated, whereupon any such

24

 

obligations shall
forthwith terminate without any other notice of any kind; or (ii) declare the outstanding
Letter of Credit Exposure to be forthwith due and payable, without presentment, demand,
protest or any other notice of any kind, all of which are hereby waived, and demand that
the Loan Parties pay to the Issuing Bank for deposit in a segregated non interest-bearing
cash collateral account, as security for the Obligations, an amount equal to the Letters of
Credit Exposure then outstanding at the time such notice is given. Unless otherwise
required by law, upon the full and final payment of the Obligations, the Issuing Bank shall
return to Borrower any amounts remaining in said cash collateral account.

     (d) Risk Participation. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any further
action on the part of the Issuing Bank, the Issuing Bank shall be deemed to have granted to
each Lender with a Letter of Credit Commitment, and each Lender with a Letter of Credit
Commitment shall be deemed to have purchased, a participation in each Letter of Credit, in
an amount equal to its Pro Rata Share of the Risk Participation Liability of such Letter of
Credit, and each such Lender agrees to pay to the Administrative Agent, for the account of
the Issuing Bank, such Lender’s Pro Rata Share of any payments made by the Issuing Bank
under such Letter of Credit. In consideration and in furtherance of the foregoing, each
Lender with a Letter of Credit Commitment hereby absolutely and unconditionally agrees to
pay to the Administrative Agent, for the account of the Issuing Bank, such Lender’s Pro
Rata Share of such payment made by the Issuing Bank and not reimbursed by Borrower on the
date due as provided in this Section 2.09(d), or of any reimbursement payment required to
be refunded to Borrower for any reason. Each Lender with a Letter of Credit Commitment
acknowledges and agrees that its obligation to deliver to the Administrative Agent, for the
account of the Issuing Bank, an amount equal to its respective Pro Rata Share pursuant to
this Section 2.09(d) shall be absolute and unconditional and such remittance shall be made
notwithstanding the occurrence or
continuation of an Event of Default or Default or the failure to satisfy any condition
set forth in Article 5 hereof. If any such Lender fails to make available to the
Administrative Agent the amount of such Lender’s Pro Rata Share of any payments made by the
Issuing Bank in respect of such Letter of Credit as provided in this Section 2.09(d), the
Administrative Agent (for the account of the Issuing Bank) shall be entitled to recover
such amount on demand from such Lender together with interest thereon at the Defaulting
Lender Rate until paid in full.

     (e) Letter of Credit Fees. Borrower shall pay to the Issuing Bank: (a) a
non-refundable fee equal to fifty percent (50%) of the Applicable Margin, multiplied by the
daily face amount of each Letter of Credit outstanding, less the amount of any draws on
such Letter of Credit, payable in monthly installments in arrears, commencing on the
issuance date and continuing for so long as such Letter of Credit remains outstanding; and
(b) for the benefit of the Issuing Bank (i) the Letter of Credit Facing Fee, and (ii) the
Issuing Bank’s standard charges for issuing letters of credit and for any amendments
thereto, payable upon demand by the Issuing Bank.

     Section 2.11 Joint and Several Liability.

25

 

     (a) Each Borrower is accepting joint and several liability hereunder and under the
other Loan Documents in consideration of the financial accommodations to be provided by the
Lenders under this Agreement, for the mutual benefit, directly and indirectly, of each
Borrower and in consideration of the undertakings of each other Borrower to accept joint
and several liability for the Obligations.

     (b) Each Borrower, jointly and severally, hereby irrevocably and unconditionally
accepts, as a surety and as a co-debtor, joint and several liability with each other
Borrower, with respect to the payment and performance of all of the Obligations (including,
without limitation, any Obligations arising under this Section 2.11), it being the
intention of the parties hereto that all the Obligations shall be the joint and several
Obligations of each Borrower without preferences or distinction among them.

     (c) If and to the extent that any Borrower shall fail to make any payment with respect
to any Obligation as and when due or to perform any Obligation in accordance with the terms
thereof, then, in each such event, the other Borrowers will make such payment with respect
to, or perform, such Obligation, as applicable.

     (d) The Obligations of each Borrower under the provisions of this Section 2.11
constitute the absolute and unconditional, full recourse Obligations of each Borrower
enforceable against each such Borrower to the full extent of its properties and assets,
irrespective of the validity, regularity or enforceability of this Agreement or any other
circumstances whatsoever.

     (e) Except as otherwise expressly provided in this Agreement, each Borrower hereby
waives notice of acceptance of its joint and several liability, notice of any
Advances issued under or pursuant to this Agreement, notice of the occurrence of any
Default, Event of Default, or of any demand for any payment under this Agreement, notice of
any action at any time taken or omitted by the Administrative Agent or any Lender under or
in respect of any Obligation, any requirement of diligence or to mitigate damages and,
generally, to the extent permitted by applicable law, all demands, notices and other
formalities of every kind in connection with this Agreement (except as otherwise provided
in this Agreement). Each Borrower hereby assents to, and waives notice of, any extension
or postponement of the time for the payment of any Obligation, the acceptance of any
payment of any Obligation, the acceptance of any partial payment thereon, any waiver,
consent or other action or acquiescence by the Administrative Agent or any Lender at any
time or times in respect of any Default by any Borrower in the performance or satisfaction
of any term, covenant, condition or provision of this Agreement, any and all other
indulgences whatsoever by the Administrative Agent or any Lender in respect of any
Obligation, and the taking, addition, substitution or release, in whole or in part, at any
time or times, of any security for any Obligation or the addition, substitution or release,
in whole or in part, of any Borrower. Without limiting the generality of the foregoing,
each Borrower assents to any other action or delay in acting or failure to act on the part
of the Administrative Agent or any Lender with respect to the failure by any Borrower to
comply with any of its respective Obligations, including, without limitation, any failure
strictly or diligently to assert any right or to

26

 

pursue any remedy or to comply fully with
applicable laws or regulations thereunder, which might, but for the provisions of this
Section 2.11 afford grounds for terminating, discharging or relieving any Borrower, in
whole or in part, from any of its Obligations under this Section 2.11, it being the
intention of each Borrower that, so long as any of the Obligations hereunder remain
unsatisfied, the Obligations of such Borrower under this Section 2.11 shall not be
discharged except by performance and then only to the extent of such performance. The
Obligations of each Borrower under this Section 2.11 shall not be diminished or rendered
unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction
or similar proceeding with respect to any Borrower. The joint and several liability of
Borrowers hereunder shall continue in full force and effect notwithstanding any absorption,
merger, amalgamation or any other change whatsoever in the name, constitution or place of
formation of the other Borrowers, the Administrative Agent or any Lender.

     (f) Each Borrower represents and warrants to the Administrative Agent and the Lenders
that such Borrower is currently informed of the financial condition of each other Borrower
and of all other circumstances which a diligent inquiry would reveal and which bear upon
the risk of nonpayment of the Obligations. Each Borrower hereby covenants that such
Borrower will continue to keep informed of each other Borrower’s financial condition, the
financial condition of any Guarantors, if any, and of all other circumstances which bear
upon the risk of nonpayment or nonperformance of the Obligations.

     (g) The provisions of this Section 2.11 are made for the benefit of the Administrative
Agent and the Lenders and their respective successors and assigns, and may be enforced by
any of them from time to time against any or all Borrowers as often as occasion therefor
may arise and without requirement on the part of the Administrative
Agent or any Lender, or any or their respective successors or assigns first to marshal
any claims or to exercise any rights against any other Borrower or to exhaust any remedies
available against any other Borrower or to resort to any other source or means of obtaining
payment of any of the Obligations hereunder or to elect any other remedy. The provisions
of this Section 2.11 shall remain in effect until all of the Obligations shall have been
paid in full or otherwise fully satisfied. If at any time, any payment, or any part
thereof, made in respect of any of the Obligations, is rescinded or must otherwise be
restored or returned by the Administrative Agent or any Lender upon any insolvency
proceeding of any Borrower, or otherwise, the provisions of this Section 2.11 will
forthwith be reinstated in effect, as though such payment had not been made.

     (h) Each Borrower hereby agrees that it will not enforce any of its rights of
contribution or subrogation against any other Borrower with respect to any liability
incurred by it hereunder or under any of the other Loan Documents, any payments made by it
to the Administrative Agent or any Lender with respect to any of the Obligations or any
collateral security therefor until such time as all of the Obligations have been paid in
full in cash. Any claim which any Borrower may have against any other Borrower with
respect to any payments to the Administrative Agent or any Lender hereunder or under any
other Loan Documents are hereby expressly made subordinate and junior in right of payment,
without limitation as to any increases in the Obligations arising hereunder or

27

 

thereunder,
to the prior payment in full of the Obligations and, in the event of any insolvency
proceeding relating to any Borrower, its debts or its assets, whether voluntary or
involuntary, all such Obligations shall be paid in full in cash before any payment or
distribution of any character, whether in cash, securities or other property, shall be made
to any other Borrower therefor.

     (i) Each Borrower hereby agrees that, after the occurrence and during the continuance
of any Default or Event of Default, the payment of any amounts due with respect to the
Indebtedness owing by any Borrower to any other Borrower is hereby subordinated to the
prior payment in full in cash of the Obligations. Each Borrower hereby agrees that after
the occurrence and during the continuance of any Default or Event of Default, such Borrower
will not demand, sue for or otherwise attempt to collect any Indebtedness of any other
Borrower owing to such Borrower until the Obligations shall have been paid in full in cash.
If, notwithstanding the foregoing sentence, such Borrower shall collect, enforce or
receive any amounts in respect of such Indebtedness, such amounts shall be collected,
enforced and received by such Borrower as trustee for the Administrative Agent and the
Lenders.

          Section 2.12 Disbursements from Reserve Account. Upon the request of Borrowers for a
disbursement from the Reserve Account, the Administrative Agent, in its sole discretion, may
disburse any such amount to any Disbursement Account.

     Article III. Blocked Accounts, Computations; Taxes.

     Section 3.01 Payments.

     (a) On or before the Effective Date, Borrowers shall establish one or more blocked
accounts at Huntington, including without limitation the Reserve Account (“Blocked
Accounts”), and thereafter Borrowers shall (i) request in writing and otherwise take
such reasonable steps to ensure proceeds of Collateral and other payments due any Borrower
are forwarded directly to the Blocked Accounts, (ii) irrevocably instruct the bank which
maintains each Blocked account to transfer to the Collection Account, on each Business Day,
cleared funds in respect of all cash, checks, drafts, or other similar items of payment so
received in any Blocked Account and (iii) deposit promptly, and in any event no later than
the first Business Day after the date of receipt thereof, any cash, checks, drafts, or
other similar items of payment relating to or constituting payments made in respect of any
and all Collateral that are received directly by any Borrower (notwithstanding the
requirements of clause (i) above) into the Collection Account.

     (b) Borrowers may maintain at Huntington or other bank reasonably acceptable to the
Administrative Agent, in the name of Borrowers, one or more accounts, including without
limitation, account number 01580177302, subject to a Control Agreement (a “Disbursement
Account”), into which the Administrative Agent shall, from time to time, deposit the
proceeds of Collections or Reserves, as applicable, for the payment of any Approved
Expenses and any other expenses approved by the Administrative Agent to be

28

 

paid from the
Reserves.

     (c) On or before the Effective Date (or such later date as the Administrative Agent
shall consent to in writing with respect to any deposit account entered into after the
Effective Date), Borrowers shall cause any bank where a Disbursement Account is maintained
to enter into a Control Agreement with the Administrative Agent, for the benefit of the
Secured Parties and each Borrower, in form and substance acceptable to the Administrative
Agent, which shall become operative on or prior to the Effective Date (or such later date
as the Administrative Agent shall consent to in writing). No Borrower shall accumulate or
maintain cash in any Disbursement Account as of any date of determination in excess of
checks outstanding against such accounts as of that date and amounts necessary to pay
Approved Expenses.

     (d) Each Blocked Account and Disbursement Account shall be controlled accounts, with
all cash, checks, and other similar items of payment in such accounts securing payment of
the Advances and all other Obligations, and in which Borrowers shall have granted a Lien to
the Administrative Agent, on behalf of the Secured Parties, pursuant to the Security
Agreement.

     (e) All amounts deposited in the Collection Account shall be deemed received by the
Administrative Agent in accordance with Section 2.04 and shall be applied (and allocated)
by the Administrative Agent in accordance with Section 2.04. In no event shall any amount
be so applied unless and until such amount shall have been credited in
immediately available funds to the Collection Account. Each Borrower hereby
acknowledges that it has no rights of withdrawal from the Collection Account or any Blocked
Account established for Reserves.

     (f) Each Borrower shall (i) hold in trust for the Administrative Agent, for the
benefit of the Secured Parties, all checks, cash, and other items of payment received by
such Borrower or Related Party for the account of any Borrower, and (ii) within one
Business Day after receipt by such Borrower or any Related Party of any checks, cash, or
other items of payment, deposit the same into the Collection Account or a Blocked Account
of such Borrower, as applicable. All proceeds of the sale or other disposition of any
Collateral shall be deposited directly into the applicable Blocked Accounts.

          Section 3.02 Computations. Interest on the Advances and fees and other charges
expressed as a percentage shall be computed on the basis of a 360-day year for the actual days
elapsed (including the first day but excluding the last day) occurring in the period for which
payable.

     Section 3.03 U.S. Taxes.

     (a) Each Borrower hereby agrees to pay to the Administrative Agent or any Lender such
additional amount as is necessary in order that the net payment of any amount due to the
Administrative Agent or that Lender hereunder after deduction for or withholding in respect
of any U.S. Tax imposed with respect to such payment (or in lieu thereof, payment of such
U.S. Tax by the Secured Parties), will not be less than the

29

 

amount stated herein to be then
due and payable; provided that the foregoing obligation to pay such additional
amounts shall not apply:

	 	(i)	 	to any payment to any Secured Party hereunder unless that
Secured Party is entitled to submit a Form W-8BEN (relating to that Secured
Party and entitling it to a complete exemption from withholding on all interest
to be received by it hereunder in respect of the Advances) or Form W-8ECI
(relating to all interest to be received by that Secured Party hereunder in
respect of the Advances), or
	 
	 	(ii)	 	to any U.S. Tax imposed solely by reason of the failure by that
Secured Party to comply with applicable certification, information,
documentation or other reporting requirements concerning the nationality,
residence, identity or connections with the United States of America of Secured
Party if such compliance is required by statute or regulation of the United
States of America as a precondition to relief or exemption from such U.S. Tax.

For the purposes of this Section 3.03(a), (w) “Form W-8BEN” shall mean Form W-8BEN
(Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding) of the
Department of the Treasury of the United States of America, (x) “Form W-8ECI” shall
mean Form W-8ECI (Certificate of Exemption from Withholding
on Income Effectively Connected with the Conduct of a Trade or Business in the United
States) of the Department of the Treasury of the United States of America (or in relation to
either such Form such successor and related forms as may from time to time be adopted by the
relevant taxing authorities of the United States of America to document a claim to which
such Form relates), and (y) “U.S. Taxes” shall mean any present or future tax,
assessment or other charge or levy imposed by or on behalf of the United States of America
or any taxing authority thereof or therein.

     (b) Within thirty (30) days after paying any such amount to a Secured Party, and
within thirty (30) days after it is required by law to remit such deduction or withholding
to any relevant taxing or other authority, each Borrower shall deliver to that Secured
Party evidence satisfactory to that Secured Party of such deduction, withholding or payment
(as the case may be).

     (c) Each Secured Party, on its behalf, represents and warrants to Borrowers that, on
the date of this Agreement, such Secured Party is either incorporated under the laws of the
United States or a State thereof or is entitled to submit a Form W-8BEN (relating to that
Secured Party and entitling it to a complete exemption from withholding on all interest to
be received by it hereunder in respect of the Advances) or Form W-8ECI (relating to all
interest to be received by that Secured Party under this Agreement in respect of the
Advances).

     Article IV. Certain Matters Relating to Collateral.

          Section 4.01 Collections. Each Borrower shall remit (or cause to be remitted) all
Collections to the Administrative Agent, in the manner contemplated by Section 3.01(a), for

30

 

application as provided in Sections 2.04 and 9.01(d) as applicable. Notwithstanding the foregoing,
if an Event of Default shall occur and be continuing, (a) all proceeds of Collateral received by
any Borrower consisting of cash, checks, and other non-cash items shall be held by such Borrower in
trust for the Administrative Agent, segregated from other funds of such Borrower, and shall
forthwith upon receipt by such Borrower be turned over to the Administrative Agent in the exact
form received by such Borrower (duly endorsed by such Borrower to the Administrative Agent, if
required) and (b) any and all such proceeds received by the Administrative Agent will be applied by
the Administrative Agent against the Obligations (whether matured or unmatured), such application
to be in the order of priority specified in Section 9.01(d). Any balance of such proceeds
remaining after the Obligations shall have been paid in full and this Agreement shall have been
terminated shall be promptly paid over to such Borrower. For purposes hereof, proceeds shall
include, but not be limited to, all principal and interest payments, prepayments, payoffs,
insurance claims, condemnation awards, sale proceeds, real estate owned rents, any other income,
and all other amounts received with respect to the Collateral.

          Article V. Conditions Precedent.

          Section 5.01 Closing and Initial Advances.
The obligations of the Lenders to make the Advances are subject to the satisfaction,
immediately prior to or concurrently with the making of such Advances, of the following conditions
precedent:

	 	(a)	 	[Reserved.]
	 
	 	(b)	 	Credit Agreement. The Administrative Agent and each
Lender shall have received this Agreement, executed and delivered by a duly
authorized officer of each Borrower.
	 
	 	(c)	 	Loan Documents. The Administrative Agent and the
Lenders as applicable shall have received the following documents, each of
which shall be satisfactory to the Administrative Agent in form and substance:

	 	1)	 	Notes. The Notes, duly completed,
executed, and delivered;
	 
	 	2)	 	Guarantee. Guarantee from Mr. Thomas
J. Axon;
	 
	 	3)	 	Security Agreement. The Security
Agreement, duly executed and delivered by each Borrower;
	 
	 	4)	 	Cash Management Agreements. Each
agreement governing a Blocked Account, a Collection Account, and the
Disbursement Accounts, duly executed and delivered by each Borrower
and the applicable depository bank;
	 
	 	5)	 	Control Agreements. A deposit
account control agreement for each Disbursement Account, the
Collection Account, and the Blocked Account established for Reserves;

31

 

	 	6)	 	Other Documents. The other documents
as the Administrative Agent shall reasonably require.

	 	(d)	 	Organizational Documents. The Administrative Agent
shall have received, in form and substance satisfactory to the Lenders, a good
standing certificate, certified copies of the charter and by-laws (or
equivalent documents) and an incumbency certificate of each Borrower and
evidence of all corporate or other authority for each Borrower with respect to
the execution, delivery, and performance of the Loan Documents and each other
document to be delivered by such Borrower, as applicable, from time to time in
connection herewith (and the Administrative Agent may conclusively rely on
such certificates until it receives notice in writing from each Borrower, as
applicable, to the contrary).
	 
	 	(e)	 	Legal Opinion. The Administrative Agent shall have
received one or more legal opinions of counsel to Borrowers and Guarantors, in
the form
acceptable to the Administrative Agent and the Lenders, containing
customary legal opinions for a secured loan facility.
	 
	 	(f)	 	No Material Adverse Effect. There shall not have
occurred one or more events that, in the good faith judgment of the
Administrative Agent or the Required Lenders, constitutes or could reasonably
be expected to constitute a Material Adverse Effect.
	 
	 	(g)	 	No Litigation. There shall exist no action, suit,
investigation, litigation, or proceeding, pending or threatened, in any court
or before any arbitrator or governmental instrumentality that, if adversely
determined, could reasonably be expected to have a Material Adverse Effect.
	 
	 	(h)	 	Filings, Registrations, Recordings. (i) Any documents
(including, without limitation, financing statements) required to be filed,
registered or recorded in order to create, in favor of the Administrative
Agent for the benefit of the Secured Parties, a perfected, first-priority
security interest in the Collateral, subject to no Liens other than those
created hereunder, shall have been properly prepared and (if necessary)
executed for filing (including any applicable county-level filings if the
Administrative Agent determines such filings are necessary in its reasonable
discretion), registration or recording in each office in each jurisdiction in
which such filings, registrations and recordations are required to perfect
such first-priority security interest and any assignments necessary for
perfecting security interests in the Collateral; and (ii) UCC lien searches in
such jurisdictions as shall be applicable to each Borrower and the Collateral,
the results of which shall be satisfactory to the Administrative Agent.

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	 	(i)	 	Liens. The Administrative Agent shall have a valid
and perfected first priority lien on, and security interest in, (i) the
Collateral and (ii) the Guarantor Collateral.
	 
	 	(j)	 	Fees and Expenses. The Administrative Agent shall
have received all fees and expenses required to be paid by Borrowers on or
prior to the Effective Date pursuant to Section 10.03(b).
	 
	 	(k)	 	Consents, Licenses, Approvals, etc. The
Administrative Agent shall have received copies, certified by each Borrower,
of all consents, licenses, and approvals, if any, required in connection with
the execution, delivery, and performance by each Borrower of, and the validity
and enforceability against each Borrower of, the Loan Documents to which each
Borrower is a party, which consents, licenses, and approvals shall be in full
force and effect.
	 
	 	(l)	 	Insurance. The Administrative Agent shall have
received evidence in form and substance satisfactory to the Administrative
Agent showing compliance by FCMC with this Agreement.
	 
	 	(m)	 	Legacy Loans. The Legacy Loans Credit Agreement shall
have been fully consummated, satisfactory in form to the Administrative Agent
and Lenders.
	 
	 	(n)	 	Accounts. The Administrative Agent shall have
received evidence of the establishment of each Blocked Account and the
Collection Account.
	 
	 	(o)	 	Officer’s Certificates. The Administrative Agent
shall have received a duly executed copy of an officer’s certificate of each
Borrower.
	 
	 	(p)	 	Entry of FCMC and New Trust into Servicing Agreement,
satisfactory to the Administrative Agent and the Lenders.
	 
	 	(q)	 	Closing of all Transactions contemplated by the Transaction
Documents and closing of the Legacy Loans Credit Agreement.
	 
	 	(r)	 	Other Documents. The Administrative Agent shall have
received such other documents as the Administrative Agent or its counsel may
reasonably require.

          Section 5.02 Advances. The making of any Advance is subject to the following further
conditions precedent, both immediately prior to the making of such Advance and also after giving
effect thereto and to the intended use thereof:

     (a) no Default or Event of Default shall have occurred and be continuing;

     (b) the representations and warranties made by each Borrower in Article 6
hereof, and in each of the other Loan Documents, shall be true and correct on and as of

33

 

the
date of the making of such Advance with the same force and effect as if made on and as of
such date (or, if any such representation or warranty is expressly stated to have been made
as of a specific date, as of such specific date). At the request of the Administrative
Agent, the Administrative Agent shall have received officer’s certificates signed by
Responsible Officers of each Borrower certifying as to the truth and accuracy of the
foregoing, which certificates shall specifically include a statement that Borrowers are in
compliance with all governmental licenses and authorizations and is qualified to do
business and in good standing in all required jurisdictions;

     (c) the Administrative Agent shall have received the tax identification number of each
Borrower;

     (d) all corporate and other proceedings, and all documents, instruments, and other
legal matters in connection with the financing transactions contemplated by this Agreement
and the other Loan Documents shall be satisfactory in form and substance to the
Administrative Agent, and the Administrative Agent shall have received such other documents
and legal opinions in respect of any aspect or consequence of the financing transactions
contemplated hereby or thereby as it shall request;

     (e) there shall not have occurred one or more events that, in the good faith judgment
of the Administrative Agent or the Required Lenders, constitutes or could reasonably be
expected to constitute a Material Adverse Effect;

     (f) all fees and expenses due and payable to the Administrative Agent and the Lenders
pursuant to this Agreement and each Loan Document shall have been paid in full; and

     (g) the Administrative Agent shall have received such other documents as the
Administrative Agent or its counsel may reasonably request.

          Article VI. Representations and Warranties. Each Borrower hereby represents and
warrants to Secured Parties that, as of the Effective Date, as of the date of each Advance
hereunder, and throughout the term of this Agreement:

          Section 6.01 Existence. Each Borrower (a) is a corporation or limited liability
company duly formed, validly existing, and in good standing under the laws of the jurisdiction of
its formation, (b) has all requisite power, and has all governmental licenses, authorizations,
consents, and approvals, necessary to own its assets and carry on its business as now being
conducted, except where the lack of such licenses, authorizations, consents and approvals would not
be reasonably likely to have a Material Adverse Effect; and (c) is qualified to do business and is
in good standing in all other jurisdictions in which the nature of the business conducted by it
makes such qualification necessary, except where failure so to qualify would not be reasonably
likely (either individually or in the aggregate) to have a Material Adverse Effect and (d) is in
compliance in all material respects with all Requirements of Law.

          Section 6.02 Litigation. There are no actions, suits, arbitrations, investigations or
proceedings pending or, to its knowledge, threatened against any Borrower or any of their
respective Subsidiaries or affecting any of the property thereof before any Governmental

34

 

Authority,
(i) as to which individually or in the aggregate there is a reasonable likelihood of an adverse
decision which would be reasonably likely to have a Material Adverse Effect or (ii) which questions
the validity or enforceability of any of the Loan Documents.

          Section 6.03 No Breach.
Neither (a) the execution and delivery of the Loan Documents or (b) the consummation of the
financing transactions therein contemplated in compliance with the terms and provisions thereof
will conflict with or result in a breach of the charter, by-laws, limited liability company
agreement (written or oral), certificate of formation (or equivalent documents or oral agreements)
of any Borrower, or any applicable law, rule or regulation, or any order, writ, injunction or
decree of any Governmental Authority or other agreement or instrument to which Borrower or any of
their respective Subsidiaries, is a party or by which any of them or any of their property is bound
or to which any of them is subject, or constitute a default under any such agreement or instrument,
or (except for the Liens created pursuant to this Agreement) result in the creation or imposition
of any Lien upon any property of any Borrower or any of their respective Subsidiaries pursuant to
the terms of any such agreement or instrument.

          Section 6.04 Action. Each Borrower has all necessary power, authority and legal right
to execute, deliver and perform its obligations under each of the Loan Documents to which it is a
party; the execution, delivery, and performance by each Borrower of each of the Loan Documents to
which it is a party have been duly authorized by all necessary action on its part; and each Loan
Document has been duly and validly executed and delivered by each Borrower and constitutes a legal,
valid, and binding obligation of each Borrower, enforceable against each Borrower in accordance
with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to or limiting creditors’ rights generally or by equitable principles
relating to enforceability.

          Section 6.05 Approvals. No authorizations, approvals or consents of, and no filings
or registrations with, any Governmental Authority, or any other Person, are necessary for the
execution, delivery, or performance by any Borrower of the Loan Documents to which it is a party or
for the legality, validity or enforceability thereof, except for filings and recordings in respect
of the Liens created pursuant to any Loan Document.

          Section 6.06 Taxes. Each Borrower has filed all Federal income tax returns and all
other tax returns that are required to be filed by them and have paid all taxes due pursuant to
such returns or pursuant to any assessment received by any of them, except for any such taxes, if
any, that are being appropriately contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves have been provided. The charges, accruals,
and reserves on the books of each Borrower in respect of taxes and other governmental charges are,
in the opinion of each Borrower, adequate.

          Section 6.07 Investment Company Act.
No Borrower is an “investment company” within the meaning of the Investment Company Act of
1940, as amended (the “Investment Company Act”). No Borrower is subject to any Federal or
state statute or regulation that limits its ability to incur Indebtedness.

35

 

          Section 6.08 No Legal Bar. The execution, delivery, and performance of this Agreement
and the Notes, the borrowings hereunder, and the use of the proceeds thereof will not violate any
Requirement of Law or Contractual Obligation of any Borrower and will not result in, or require,
the creation or imposition of any Lien (other than the Liens created under any Loan Document) on
any of its or their respective properties or revenues pursuant to any such Requirement of Law or
Contractual Obligation.

          Section 6.09 No Default. No Borrower is in default under or with respect to any of
its respective Contractual Obligations in any respect which is reasonably expected to have a
Material Adverse Effect. No Default or Event of Default has occurred and is continuing.

          Section 6.10 True and Complete Disclosure.

     (a) The information, reports, financial statements, exhibits and schedules furnished in
writing by or on behalf of any Borrower to the Administrative Agent or any Lender in
connection with the negotiation, preparation or delivery of this Agreement and the other
Loan Documents or included herein or therein or delivered pursuant hereto or thereto, when
taken as a whole, do not contain any untrue statement of material fact or omit to state any
material fact necessary to make the statements herein or therein, in light of the
circumstances under which they were made, not misleading. All written information furnished
after the date hereof by or on behalf of each Borrower to the Administrative Agent or any
Lender in connection with this Agreement and the other Loan Documents and the financing
transactions contemplated hereby and thereby will be true, complete and accurate in every
material respect, or (in the case of projections) based on reasonable good faith estimates,
on the date as of which such information is stated or certified. There is no fact known to
a Responsible Officer of any Borrower that, after due inquiry, could reasonably be expected
to have a Material Adverse Effect that has not been disclosed herein, in the other Loan
Documents or in a report, financial statement, exhibit, schedule, disclosure letter or other
writing furnished to the Administrative Agent for use in connection with the financing
transactions contemplated hereby or thereby.

     (b) The unaudited pro forma balance sheet of FCMC, dated as of the Effective Date, a
copy of which has heretofore been delivered to the Administrative Agent, gives pro forma
effect to the consummation of each Transfer Agreement, the initial extensions of credit made
under this Agreement, and the payment of transaction fees and expenses related to the
foregoing, all as if such events had occurred on such date (the “Pro Forma Balance
Sheet”). The Pro Forma Balance Sheet has been prepared in a manner consistent with GAAP
and the financial statements described in Section 7.01(a) (subject to the
absence of footnotes required by GAAP and subject to normal year-end adjustments) and,
made in good faith and having a reasonable basis set forth therein, presents fairly in all
material respects the financial condition of FCMC on an unaudited pro forma basis as of the
date set forth therein after giving effect to the consummation of the Transactions.

          Section 6.11 ERISA. No Borrower nor any of their respective Subsidiaries has any Plan
or Multiemployer Plan subject to the provisions of ERISA, the Code and other Federal or State law.

36

 

          Section 6.12 True Sales. Any and all interest of a prior owner in, to and under any
Mortgage Loan or other Collateral has been sold, transferred, conveyed, and assigned to the
applicable Borrower pursuant to a legal sale or capital contribution and such prior owner retains
no interest in such Mortgage Loan or other Collateral.

          Section 6.13 No Burdensome Restrictions. No Requirement of Law or Contractual
Obligation of any Borrower would reasonably be expected to have a Material Adverse Effect.

          Section 6.14 Subsidiaries. All of the Subsidiaries of FCMC are listed on Schedule
6.14 to this Agreement.

          Section 6.15 Financial Statements; Solvency; Fraudulent Conveyance.

     (a) The balance sheet of each Borrower and any Subsidiaries as of the specific date
and the related statements of income and cashflows for that fiscal year, previously
furnished to the Secured Parties, fairly present the financial condition of each Borrowers
as of that date and the results of its operations for that fiscal period. No Borrower had,
on that date, any known liabilities, direct or indirect, fixed or contingent, matured or
unmatured, or liabilities for taxes, long-term leases, or unusual forward or long-term
commitments not disclosed by, or reserved against in, said balance sheet and related
statements, except for the Lenders’ extensions of credit to Borrowers. Except for
financial statements prepared for interim periods between the fiscal year-end, all
financial statements were prepared in accordance with GAAP applied on a consistent basis
throughout the periods involved. Since the date of the statement, there has been no change
in the business, operations, assets or financial condition of any Borrower that could
reasonably be expected to have any Material Adverse Effect, nor is any Borrower aware of
any state of facts that (with or without notice or lapse of time or both) could reasonably
be expected to have a Material Adverse Effect.

     (b) As of the date hereof and immediately after giving effect to each Advance and the
application of the proceeds thereof by Borrowers, the fair value of the tangible assets of
FCMC is greater than the fair value of the liabilities (including, without limitation,
contingent liabilities if and to the extent required to be recorded as a liability
on the financial statements of FCMC in accordance with GAAP) of FCMC, and FCMC is and
will be solvent, is and will be able to pay its debts as they mature and does not and will
not have an unreasonably small capital to engage in the business in which it is engaged and
proposes to engage. No Borrower intends to incur, or believes that it has incurred, debt
beyond its ability to pay such debts as they mature. No Borrower is taking any action to
commence insolvency, bankruptcy, liquidation or consolidation proceedings or the
appointment of a receiver, liquidator, conservator, trustee or similar official in respect
of such Borrower or any of its assets. No Borrower is pledging or transferring any Assets
with any intent to hinder, delay or defraud any of its creditors.

     (c) FCMC is solvent and will not be rendered insolvent by the financing transactions
contemplated by this Agreement and the other Loan Documents and the application of the
proceeds thereof by such Borrower, and, after giving effect to such

37

 

financing transactions
and the payment by such Borrower of any dividends, shall not be left with an unreasonably
small amount of capital with which to engage in its business.

          Section 6.16 Regulation U. No part of the proceeds of any Advance will be used to
purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any Margin Stock.

          Section 6.17 Licenses. Schedule 6.17 contains a complete and accurate listing
of all licenses currently held by FCMC and the status of each such license. FCMC has all licenses
necessary to carry on its business as now being conducted and is licensed, qualified, and in good
standing in each state where a Mortgaged Property or REO Property is located if the laws of such
state require licensing or qualification in order to conduct business of the type conducted by the
Servicer, and in any event the Servicer is in compliance with the laws of any such state to the
extent necessary to ensure the enforceability of each related Mortgage Loan and REO Property, and
the servicing of each Mortgage Loan and REO Property in accordance with the terms of the Servicing
Agreement.

          Article VII. Covenants of Borrower. Each Borrower hereby covenants and agrees with
the Secured Parties that, so long as any Advance is outstanding and until payment in full of all
Obligations:

          Section 7.01 Financial Statements. Each Borrower shall deliver to the Administrative
Agent and each Lender:

     (a) as soon as available and in any event within thirty (30) days after the end of each
month, a separate balance sheet of each Borrower and its consolidated Subsidiaries, if any,
as at the end of such period and the related unaudited consolidated statements of income for
each Borrower and consolidated Subsidiaries, if any, for such period and the portion of the
fiscal year through the end of such period, setting forth in
each case in comparative form the figures for the previous year and accompanied by a
certificate of a Responsible Officer of each Borrower, which certificate shall state that
said financial statements fairly present the financial condition and results of operations
of each Borrower and its Subsidiaries, if any, in accordance with GAAP, consistently
applied, as at the end of, and for, such period (subject to normal year-end audit
adjustments);

     (b) as soon as available and in any event within ninety (90) days after the end of each
fiscal year of Borrowers, (i) balance sheet of each Borrower and its consolidated
Subsidiaries, if any, as at the end of such fiscal year and the related statements of income
and retained earnings and of cash flows for each Borrower and its consolidated Subsidiaries,
if any, for such year, setting forth in each case in comparative form the figures for the
previous year, and (ii) an audit report on the items listed in clause (i) hereof prepared
and certified by independent certified public accountants of recognized standing and
acceptable to the Administrative Agent, which audit report shall be unqualified as to FCMC
and shall state that such financial statements fairly present the financial position of each
Borrower and its Subsidiaries, if any, at the dates indicated and the results of their
operations and cash flows for the periods indicated in conformity with GAAP and that the
examination by such accountants in connection with such financial

38

 

statements has been made
in accordance with generally accepted auditing standards. The deliveries made pursuant to
this clause shall be accompanied by (X) any management letter prepared by the
above-referenced accountants and (Y) a certificate of such accountants that, in the course
of their examination necessary for their certification of the foregoing, they have obtained
no knowledge of any Default or Event of Default, or if, in the opinion of such accountants,
any Default or Event of Default shall exist, a statement of the nature and status thereof;

     (c) at the time that any Borrower delivers financial statements to the Administrative
Agent in accordance with this Section 7.01 as the end of a quarter, Borrowers shall forward
to the Administrative Agent a certificate of a Responsible Officer of each Borrower that
demonstrates that Borrowers are in compliance with the financial covenants set forth in
Section 7.07;

     (d) Borrowers shall furnish to the Administrative Agent, at the time as it furnishes
each set of financial statements pursuant to paragraphs (a) and (b) above, a certificate of
a Responsible Officer of each Borrower to the effect that, to the best of such Responsible
Officer’s knowledge, such Borrower, as applicable, during such fiscal period or year has
observed or performed all of its covenants and other agreements, and satisfied every
condition, contained in this Agreement and the other Loan Documents to be observed,
performed or satisfied by it, and that such Responsible Officer has obtained no knowledge of
any Default or Event of Default except as specified in such certificate (and, if any Default
or Event of Default has occurred and is continuing, describing the same in reasonable detail
and describing the action such Borrower, as applicable, has taken or proposes to take with
respect thereto);

     (e) (i) within 30 days following the Effective Date, and thereafter within 30 days
prior to the end of each fiscal year, Borrowers shall furnish to the Administrative
Agent an annual budget of prospective cash receipts, cash payments, disbursements and
advances, which budget shall be updated and furnished to the Administrative Agent within 30
days following the end of each quarter, in detail satisfactory to the Administrative Agent
and the Required Lenders; and

     (f) from time to time such other information regarding the financial condition,
operations, or business of any Borrower as the Administrative Agent may request.

          Section 7.02 Litigation. Each Borrower shall promptly, and in any event within two
(2) Business Days after service of process on any of the following, give to the Administrative
Agent notice of all legal or arbitral proceedings affecting any Borrower or any of their respective
Subsidiaries that questions or challenges the validity or enforceability of any of the Loan
Documents or as to which there is a reasonable likelihood of an adverse determination that would
result in a Material Adverse Effect.

          Section 7.03 Existence. Each Borrower and its respective Subsidiaries will:

     (a) preserve and maintain its legal existence and all of its material rights,
privileges, licenses, and franchises;

39

 

     (b) comply with the requirements of all applicable laws, rules, regulations, and
orders of Governmental Authorities and other Requirements of Law (including, without
limitation, truth in lending, real estate settlement procedures, consumer protection and
all environmental laws) if failure to comply with such requirements would be reasonably
likely (either individually or in the aggregate) to have a Material Adverse Effect;

     (c) keep adequate records and books of account, in which complete entries will be made
in accordance with GAAP consistently applied;

     (d) pay and discharge all taxes, assessments, and governmental charges or levies
imposed on it or on its income or profits or on any of its Property prior to the date on
which penalties attach thereto, except for any such tax, assessment, charge, or levy the
payment of which is being contested in good faith and by proper proceedings and against
which adequate reserves are being maintained;

     (e) permit representatives of the Administrative Agent, during normal business hours
upon prior written notice at a mutually desirable time (or at any time and from time to
time upon the occurrence of a Default or an Event of Default and during the continuance
thereof), to examine, copy and make extracts from any Borrower’s books and records, to
inspect any of its Properties, and to discuss its business and affairs with its officers,
all to the extent reasonably requested by the Administrative Agent; and

     (f) limit its activities to such activities as are incident to and necessary or
convenient to accomplish the following purposes: to acquire, own, hold, pledge, finance and
otherwise deal with the Collateral, or with the prior written consent of the Administrative
Agent, property or assets similar to the Collateral (collectively, the “Related
Assets”), in each case, as are to be pledged to the Secured Parties pursuant to this
Agreement.

          Section 7.04 Prohibition of Fundamental Changes; Subsidiaries. No Borrower shall
enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or
dissolve itself (or suffer any liquidation, winding up or dissolution) or sell any substantial
portion of its assets other than pursuant to the Transaction Documents. No Borrower shall permit
to exist or establish any Subsidiary (other than a Subsidiary existing as of the Effective Date).

          Section 7.05 Restricted Payments. No Borrower shall make or declare any Restricted
Payment without the prior written consent of the Administrative Agent, other than FCMC shall, to
the extent permitted by applicable law, make pro-rata dividends, distributions and payments to its
shareholders and to the administrative agent for the benefit of the lenders under the Legacy Loans
Credit Agreement and related loan documents; provided, however that no such distribution,
distribution or payment shall be made if, after giving effect to the same, a Default or an Event of
Default shall exist.

          Section 7.06 Notices. Each Borrower shall give notice to the Administrative Agent
promptly:

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     (a) within three (3) Business Days after such Borrower becomes aware of the occurrence
of any Default or Event of Default or any event of default or default under any other
material agreement of any Borrower;

     (b) within three (3) Business Days after service of process on any Borrower or any of
their respective Subsidiaries, or any agent thereof for service of process, in respect of
any legal or arbitral proceedings affecting such Borrower or any of its respective
Subsidiaries (i) that questions or challenges the validity or enforceability of any of the
Loan Documents or (ii) in which the amount in controversy exceeds $250,000;

     (c) upon any Borrower becoming aware of any Default related to any Collateral, any
Material Adverse Effect, or any event or change in circumstances that should reasonably be
expected to have a Material Adverse Effect;

     (d) upon any Borrower becoming aware that any Collateral with an aggregate fair market
value of at least $100,000 has been damaged by waste, fire, earthquake or earth movement,
windstorm, flood, tornado, or other casualty, or otherwise damaged; and

     (e) upon the entry of a judgment or decree against any Borrower in an amount in excess
of $100,000.

Each notice pursuant to this Section 7.06 (other than 7.06(e)) shall be accompanied by a statement
of a Responsible Officer setting forth details of the occurrence referred to therein and stating
what action such Borrower has taken or proposes to take with respect thereto.

     Section 7.07 Financial Covenants.

     (a) Net Income Before Taxes. Each Borrower shall maintain Net Income Before
Taxes of not less than (i) $800,000 for the period beginning January 1, 2009, and ending
December 31, 2009, and (i) $800,000 as of the end of each calendar month thereafter for the
most recently ended twelve (12) consecutive month period ending on such date.

     (b) Net Worth. FCMC, as of the end of each month during the term of this
Agreement, shall maintain a Net Worth of not less than $7,640,000.

          Section 7.08 Transactions with Affiliates. No Borrower shall enter into any
transaction, including, without limitation, any purchase, sale, lease, or exchange of property or
the rendering of any service, with any Affiliate unless such transaction is (a) otherwise permitted
under this Agreement, (b) in the ordinary course of such Borrower’s business, and (c) upon fair and
reasonable terms no less favorable to such Borrower than it would obtain in a comparable arm’s
length transaction with a Person that is not an Affiliate, or make a payment that is not otherwise
permitted by this Section 7.08.

          Section 7.09 Use of Proceeds. Borrowers will use the proceeds of the Advances solely
for the purposes described in Section 2.08.

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          Section 7.10 Limitation on Liens.
No Borrower shall, nor will any Borrower permit or allow others to, create, incur or permit to
exist any Lien, security interest or claim on or to any of its Property, except for Liens on the
Collateral created pursuant to this Agreement and as to items (i) and (ii) of the definition of
“Collateral”, Liens in connection with the Legacy Loans Credit Agreement. Each Borrower will
defend the Collateral against, and will take such other action as is necessary to remove, any Lien,
security interest or claim on or to the Collateral, other than the security interests created under
this Agreement and the Liens referred to above, and Borrower will defend the right, title and
interest of each Secured Party in and to any of the Collateral against the claims and demands of
all persons whomsoever. Each Borrower shall take all action necessary to fully preserve, maintain,
and protect each Secured Party’s security interest in the Collateral including, without limitation,
the first priority status of such security interest.

          Section 7.11 Limitation on Indebtedness. No Borrower shall incur any liabilities for
Indebtedness, other than (i) the Advances, and (ii) the Letters of Credit.

          Section 7.12 Limitation on Sale of Assets. No Borrower shall convey, sell, lease,
assign, transfer, or otherwise dispose of (collectively, “Transfer”), all or any portion of
its Property, business, or assets (including, without limitation, receivables and leasehold
interests) whether now owned or hereafter acquired or allow any Subsidiary to Transfer any portion
all of its assets to any Person.

          Section 7.13 Limitation on Investments. No Borrower nor any of their Subsidiaries
shall directly or indirectly make or own any Investment, except Investments in cash and Cash
Equivalents pledged to the Administrative Agent.

          Section 7.14 Solvency. No Borrower shall incur debts beyond its ability to pay such
debts as they mature. No Borrower shall commence any insolvency, bankruptcy, liquidation, or
consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee, or
similar official in respect of Borrower or any of its respective assets. No Borrower shall have a
judgment entered against it returned unsatisfied.

          Section 7.15 No Amendment or Waiver. No Borrower shall, nor shall any Borrower permit
or allow any Person to, amend, modify, terminate, or waive any provision of any Collateral in any
manner that shall reasonably be expected to materially and adversely affect the value of such item
of Collateral.

          Section 7.16 Maintenance of Property; Insurance.
Each Borrower shall keep all property useful and necessary in its business in good working
order and condition. Each Borrower shall maintain errors and omissions insurance and blanket bond
coverage in such amounts as are in effect on the Effective Date (as disclosed to the Administrative
Agent in writing) and shall not reduce such coverage without the written consent of the
Administrative Agent, and shall also maintain such other insurance with financially sound and
reputable insurance companies, and with respect to property and risks of a character usually
maintained by entities engaged in the same or similar business similarly situated, against loss,
damage and liability of the kinds and in the amounts customarily maintained by such entities.

          Section 7.17 Organizational Documents.

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     (a) No Borrower shall amend its articles or certificate of incorporation, code of
regulations or by-laws, limited liability company agreement, operating agreement,
certificate of formation or other organizational document without the prior written consent
of the Administrative Agent, which consent will not be unreasonably withheld or delayed.

     (b) No Borrower shall change its name without at least thirty (30) days prior written
notice to the Administrative Agent.

          Section 7.18 Payment of Expenses. At all times after the Effective Date, no Borrower
shall incur any liabilities or pay any expenses other than liabilities and expenses that are
Approved Expenses or incurred in the ordinary course of business. No Borrower shall incur any
liability to each other or pay any amount to any Affiliate without the prior written consent of the
Administrative Agent, which consent shall not be withheld unreasonably.

          Section 7.19 Certain Post-Effective Date Deliverables. The Borrowers will comply with
each requirement or condition subsequent set forth on Schedule 7.19 on or before the date
applicable thereto set forth on Schedule 7.19, or such later date as the Administrative
Agent in writing shall provide, to the satisfaction of the Administrative Agent, and each Borrower
hereby agrees that the failure of any Borrower to so perform or cause to be performed shall
constitute an Event of Default hereunder without cure of any kind; provided, with respect to any
such event, the Administrative Agent shall have provided notice to any Borrower of such event.

          Section 7.20 Representations and Warranties; Disclosure Updates.
Each Borrower shall promptly and in no event later than five (5) Business Days after obtaining
knowledge thereof, notify the Administrative Agent if any written information, exhibit, or report
furnished to the Administrative Agent or any Lender contained any untrue statement of a material
fact or omitted to state any material fact necessary to make the statements contained therein not
misleading in light of the circumstances in which made. The foregoing to the contrary
notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy the
effect of the prior untrue statement of a material fact or omission of any material fact nor shall
any such notification have the affect of amending or modifying this Agreement or any of the
Schedules hereto.

          Article VIII. Events of Default.

          Section 8.01 Events of Default. An “Event of Default” shall exist under this
Agreement (i) if any one or more of the events set forth in clause (g) or (h) shall have occurred
or (ii) if any one or more of the other events described below shall have occurred, and with
respect to any such event, the Administrative Agent shall have provided notice to any Borrower of
such event:

     (a) any Borrower shall fail to make a Required Payment on any Payment Date or
otherwise fail to pay any principal of or interest on any Advance prior to the close of
business on the date on which such payment is due (whether at stated maturity, upon
acceleration or at mandatory prepayment or otherwise); or

43

 

     (b) any Borrower shall default in the payment of any other amount payable by it under
this Agreement or any other Loan Document, and such default shall have continued unremedied
for three (3) Business Days; or

     (c) any representation, warranty, or certification made or deemed made in this
Agreement or in any other Loan Document by any Borrower or any certificate furnished to the
Administrative Agent pursuant to the provisions hereof or thereof, shall prove to have been
false or misleading in any material respect as of the time made or furnished; or

     (d) any Borrower shall fail to comply with the requirements of Section 7.01, Section
7.02, Section 7.03(a), Section 7.03(b), Section 7.03(d), Section 7.03(e), Section 7.04,
Section 7.05, Section 7.06 (a), (b) or (c), Section 7.05, Sections 7.07 through 7.20; or
any Loan Party shall otherwise fail to observe or perform any other agreement contained in
this Agreement or any other Loan Document and such failure to observe or perform shall
continue unremedied for a period of ten (10) Business Days; or

     (e) a final judgment or judgments for the payment of money in excess of, with respect
to any Borrower or any Subsidiary of any Borrower, $250,000 in the aggregate shall be
rendered against such Borrower, by one or more courts, administrative tribunals or other
bodies having jurisdiction over them and the same shall not be discharged (or provision
shall not be made for such discharge) or bonded, or a stay of execution thereof shall not
be procured, within sixty (60) days from the date of entry thereof and such
Borrower shall not, within said period of sixty (60) days, or such longer period
during which execution of the same shall have been stayed or bonded, appeal therefrom and
cause the execution thereof to be stayed during such appeal; or

     (f) any Loan Party shall admit in writing its inability to pay its debts as such debts
become due; or

     (g) any Loan Party shall (i) apply for or consent to the appointment of, or the taking
of possession by, a receiver, custodian, trustee, examiner, or liquidator of itself or of
all or a substantial part of its property, (ii) make a general assignment for the benefit
of its creditors, (iii) commence a voluntary case under the Bankruptcy Code, (iv) file a
petition seeking to take advantage of any other law relating to bankruptcy, insolvency,
reorganization, liquidation, dissolution, arrangement or winding-up, or composition or
readjustment of debts, (v) fail to controvert in a timely and appropriate manner, or
acquiesce in writing to, any petition filed against it in an involuntary case under the
Bankruptcy Code, or (vi) take any corporate or other action for the purpose of effecting
any of the foregoing; or

     (h) a proceeding or case shall be commenced, without the application or consent of any
Loan Party or any Subsidiary of a Loan Party, in any court of competent jurisdiction,
seeking (i) its reorganization, liquidation, dissolution, arrangement or winding-up, or the
composition or readjustment of its debts, (ii) the appointment of a receiver, custodian,
trustee, examiner, liquidator, or the like of any Loan Party or any such Subsidiary or of
all or any substantial part of its property, or (iii) similar relief in respect of any Loan
Party or any such Subsidiary under any law relating to bankruptcy,

44

 

insolvency,
reorganization, winding-up, or composition or adjustment of debts, and such proceeding or
case shall continue undismissed, or an order, judgment or decree approving or ordering any
of the foregoing shall be entered and continue unstayed and in effect, for a period of
sixty (60) or more days; or an order for relief against any Loan Party or any such
Subsidiary shall be entered in an involuntary case under the Bankruptcy Code; or

     (i) this Agreement, any Note, or any other Loan Document shall for whatever reason
(including an Event of Default, Default, default or event of default, as applicable
thereunder) be terminated, or any Lien of any Secured Party on any material portion of the
Collateral or the Guarantor Collateral shall cease to be a valid and perfected first
priority Lien on or other security interest in any of the Collateral or the Guarantor
Collateral, or any Borrower’s obligations under this Agreement shall cease to be in full
force and effect, or the enforceability of any Loan Document shall be contested by any Loan
Party; or

     (j) (i) any Borrower or any ERISA Affiliate shall engage in any non-exempt “prohibited
transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any
Plan, (ii) any material “accumulated funding deficiency” (as defined in Section 302 of
ERISA), whether or not waived, shall exist with respect to any Plan or any Lien in favor of
the PBGC or a Plan shall arise on the assets of any Borrower or any ERISA Affiliate, (iii)
proceedings shall commence to have a trustee appointed, or a
trustee shall be appointed, to administer or to terminate, any Plan of any Borrower or
any ERISA Affiliate, which commencement of proceedings or appointment of a trustee is, in
the reasonable opinion of the Administrative Agent, likely to result in the termination of
such Plan for purposes of Title IV of ERISA, (iv) any such Plan shall terminate for
purposes of Title IV of ERISA, (v) any Borrower or any ERISA Affiliate shall, or in the
reasonable opinion of the Administrative Agent is likely to, incur any liability in
connection with a withdrawal from, or the insolvency or reorganization of, a Multiemployer
Plan, or (vi) any other event or condition shall occur or exist with respect to a Plan; and
in each case in clauses (i) through (vi) above, such event or condition, together with all
other such events or conditions, if any, could reasonably be expected to have a Material
Adverse Effect; or

     (k) any Change of Control of any Borrower shall have occurred without the prior
consent of the Administrative Agent; or

     (l) any Loan Party shall grant, or suffer to exist, any Lien on any Collateral or the
Guarantor Collateral except the Liens contemplated by this Agreement; or the Liens
contemplated hereby shall cease to be first priority perfected and enforceable Liens on the
Collateral or the Guarantor Collateral in favor of the Secured Parties or shall be Liens in
favor of any Person other than the Secured Parties; or

     (m) any Borrower shall default under, or fail to perform as requested under, the terms
of any repurchase agreement, credit and security agreement or similar credit facility or
agreement in favor of any creditor which provides for borrowed funds in an

45

 

amount in excess
of $100,000, in each case entered into by such Borrower, which default or failure resulted
in the acceleration or prepayment of any Indebtedness thereunder; or

     (n) an “Event of Default” (as defined under the Legacy Loans Credit Agreement) shall
exist under the Legacy Loans Credit Agreement in respect of (i) Article VIII, Section 8.01
(f), (g), (h), (i) or (l), or (ii) as a result of the failure to comply with any
requirement of Section 7.03(d) or (e), Section 7.04, Section 7.05, Sections 7.12 through
7.14 or Section 7.20 thereof, or any Borrower defaults under the terms of a Limited
Recourse Guaranty dated as of even date herewith executed in connection with the Legacy
Loans Credit Agreement;

     (o) a default or event of default shall occur and be continuing under the Servicing
Agreement, or FCMC shall cease its servicing business; or

     (p) any Material Adverse Effect with respect to any Loan Party or any of their
respective Subsidiaries, or the Collateral, in each case as determined by the
Administrative Agent in its reasonable discretion, or the existence of any other condition
that, in the Administrative Agent’s reasonable discretion, constitutes a material
impairment of any Loan Party’s ability to perform its obligations under this Agreement, any
Application and Agreement for Letter of Credit, any Note, or any other Loan Document.

     Article IX. Remedies.

     Section 9.01 Remedies Upon Default.(a) (a) Upon the occurrence of one or more
Events of Default (subject to the expiration of the applicable cure period contained
therein) other than those referred to in Section 8(g) or (h), the Required Lenders (at
their election but without notice of their election and without demand) may authorize and
instruct the Administrative Agent to do any one or more of the following on behalf of the
Secured Parties (and the Administrative Agent, acting upon the instructions of the Required
Lenders, shall, subject to the terms of Article 12 hereof, do the same on behalf of the
Secured Parties), all of which are authorized by each Borrower: (i) immediately declare all
Obligations then outstanding to be immediately due and payable, together with all interest
accrued thereon and all other amounts due under this Agreement, the Notes and any other
Loan Document; provided that upon the occurrence of an Event of Default referred to
in Sections 8(g) or (h), such amounts shall immediately and automatically become due and
payable without any further action by any Person and (ii) the Administrative Agent may
exercise, in addition to all other rights and remedies granted to it in this Agreement, the
rights and remedies provided for under any Loan Document. Upon such declaration or such
automatic acceleration, the unpaid balance of all Advances then outstanding and all other
amounts due under this Agreement and any other Loan Document shall become immediately due
and payable, without presentment, demand, protest, or other formalities of any kind, all of
which are hereby expressly waived by each Borrower, and the Administrative Agent, upon
receipt of instructions from the Required Lenders, subject to the terms of Section 12
hereof, thereupon shall exercise any rights and remedies, hereunder and under the other
Loan Documents, including but not limited to, the transfer of servicing or the liquidation
of the Collateral

46

 

on a servicing released basis. To the extent permitted by applicable
law, each Borrower waives all claims, damages, and demands it may acquire against the
Administrative Agent or the Lenders arising out of the exercise by the Administrative Agent
or a Secured Party of any of their rights under this Agreement and any other Loan Document,
other than those claims, damages, and demands to the extent any of the foregoing is found
in a final non-appealable judgment by a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of the Administrative Agent or a Lender.

     (b) Upon the occurrence of one or more Events of Default, the Administrative Agent
shall have the right to obtain physical possession of all records and all other files of
Borrower relating to the Collateral and all documents relating to the Collateral that are
then or may thereafter come in to the possession of any Borrower, or any third party acting
for any Borrower, and each Borrower shall deliver to the Administrative Agent such
assignments and other documents as the Administrative Agent shall request. The
Administrative Agent shall be entitled to specific performance of all agreements of each
Borrower contained in this Agreement and any other Loan Document.

     (c) Any money or property collected or otherwise received by the Administrative Agent
in connection with the exercise of its rights and remedies specified in this Section 9.01
(including, without limitation, any money or property received in respect of a liquidation
of any Collateral) shall be applied by the Administrative Agent first, to the
payment of any Obligations in respect of any protective advances, fees, expenses,
reimbursements or indemnities then due to the Administrative Agent, second, to the
payment of any Obligations in respect of any protective advances, fees, expenses,
reimbursements or indemnities then due to any Lender, and then, in the same order
of priority as Section 2.04(d).

     Article X. Miscellaneous.

          Section 10.01 Waiver. No failure on the part of the Administrative Agent to exercise,
no delay in exercising, and no course of dealing with respect to, any right, power, or privilege
under this Agreement or any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power, or privilege under this Agreement or any other Loan
Document preclude any other or further exercise thereof or the exercise of any other right, power,
or privilege. The remedies provided herein and therein are cumulative and not exclusive of any
remedies provided by law.

          Section 10.02 Notices. Except as otherwise expressly permitted by this Agreement, all
notices, requests, and other communications provided for herein (including, without limitation, any
modifications of, or waivers, requests or consents under, this Agreement) shall be given or made in
writing (including, without limitation, by telex or telecopy) delivered to the intended recipient
at the “Address for Notices” specified below its name on the signature pages hereof) or, as
to any party, at such other address as shall be designated by such party in a written notice to
each other party. Except as otherwise provided in this Agreement and except for notices given under
Article 2 (which shall be effective only on receipt), all such communications shall be deemed to
have been duly given when transmitted by telex or telecopier or personally

47

 

delivered or, in the
case of a mailed notice, upon receipt, in each case given or addressed as aforesaid.

          Section 10.03 Indemnification and Expenses.

     (a) Each Borrower, jointly and severally, hereby agrees to hold each Secured Party,
and each Affiliate thereof and the respective officers, directors, employees, agents, and
advisors of each Secured Party (each an “Indemnified Party”) harmless from and
indemnify the Secured Parties and such other Persons against all liabilities, losses,
damages, judgments, costs, and expenses of any kind that may be imposed on, incurred by, or
asserted against the Secured Parties or such other Persons, relating to or arising out of,
this Agreement (including, without limitation, any cost, loss, or expense which the Secured
Parties or such other Persons may sustain or incur as a consequence of any acceleration of
the maturity of the Advances by the Secured Parties in accordance with
the terms of this Agreement, including, but not limited to, any cost, loss, or expense
arising in liquidating the Advances and the Collateral and from interest or fees payable by
the Secured Parties to lenders of funds obtained by it in order to maintain the Advances
hereunder), the Notes, any other Loan Document or any financing transaction contemplated
hereby or thereby, or any amendment, supplement, or modification of, or any waiver or
consent under or in respect of, this Agreement, the Notes, any other Loan Document, or any
financing transaction contemplated hereby or thereby, that, in each case, results from any
matter whatsoever, except to the extent any of the foregoing is found in a final
non-appealable judgment by a court of competent jurisdiction to have resulted from the
gross negligence or willful misconduct of the Administrative Agent or a Lender. Without
limiting the generality of the foregoing, each Borrower agrees to hold the Secured Parties
and any other indemnified Person described above harmless from and indemnify such
Indemnified Party against all costs with respect to all any Mortgage Loan and any REO
Property relating to or arising out of any violation or alleged violation of any
environmental law, rule, or regulation or any consumer credit laws, including, without
limitation, laws with respect to unfair or deceptive lending practices and predatory
lending practices, the Truth in Lending Act, and the real estate settlement procedures act,
that, in each case, results from anything other than to the extent any of the foregoing is
found in a final non-appealable judgment by a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of such Indemnified Party. In any
suit, proceeding, or action brought by any Secured Party in connection with any other
Collateral pledged hereunder for any sum owing thereunder, or to enforce any provisions of
any Collateral pledged hereunder, each Borrower will save, indemnify, and hold the Secured
Parties and any other indemnified Person described above harmless from and against all
expense, loss, or damage suffered by reason of any defense, set-off, counterclaim,
recoupment, reduction, or liability whatsoever of the account debtor or obligor thereunder,
arising out of a breach by any Borrower of any obligation thereunder or arising out of any
other agreement, Indebtedness, or liability at any time owing to or in favor of such
account debtor or obligor or its successors from any Borrower. Each Borrower also agrees,
jointly and severally, to reimburse the Secured Parties as and when billed by the
Administrative Agent for all the Secured Parties’ reasonable out-of-pocket costs and
expenses incurred in connection with the enforcement or the preservation of the Secured
Parties’ rights

48

 

under this Agreement, the Notes, any other Loan Document, or any financing
transaction contemplated hereby or thereby, including, without limitation, the reasonable
fees and disbursements of its counsel.

     (b) Each Borrower agrees to pay as and when billed by the Administrative Agent all of
the out-of pocket costs and expenses reasonably incurred by the Administrative Agent in
connection with the development, preparation, and execution of any amendment, restatement
supplement, or modification to this Agreement, any Note, any other Loan Document, or any
other documents prepared in connection herewith or therewith. Each Borrower further agrees
to pay as and when billed by the Administrative Agent all of the out-of-pocket costs and
expenses, reasonably incurred by any Secured Party (i) in connection with the development,
preparation, and execution of this Agreement, each Note and any Loan Document executed in
connection herewith or therewith, and consummation and administration of the financing
transactions
contemplated hereby and thereby including, without limitation, (A) all the reasonable
fees, disbursements, and expenses of counsel for the Administrative Agent and for each
other Secured Party and (B) all the due diligence, inspection, testing, and review costs
and expenses incurred by any Secured Party with respect to Collateral under this Agreement,
including, but not limited to, those costs and expenses incurred by any Secured Party
pursuant to Sections 11.01, 11.05, and 11.10, other than any costs and expenses incurred in
connection with the Secured Parties’ re-hypothecation of the Assets prior to an Event of
Default, and (ii) all of the out-of pocket costs and expenses after the occurrence of an
Event of Default or in connection with the enforcement of any right or remedy under this
Agreement or applicable law .

          Section 10.04 Amendments.(a) (a) Subject to the provisions of this Section 10.04, the
Required Lenders (or the Administrative Agent with the consent in writing of the Required Lenders)
and any Loan Party may enter into agreements supplemental hereto for the purpose of adding or
modifying any provisions of this Agreement or any Loan Document, or changing in any manner the
rights of the Lenders or any Loan Party hereunder or thereunder or waiving any Event of Default
hereunder; provided, however, that no such supplemental agreement, waiver or amendment
shall, without the consent of each Lender affected thereby:

     (i) Extend any Termination Date or any other date fixed for any payment of
principal of, or interest on, the Advances, or any fees or other amounts payable to
such Lender (except with respect to modifications of the provisions relating to
prepayments of Advances and other Obligations);

     (ii) Reduce the rate of interest on any Advance, fee, or other amount due such
Lender;

     (iii) Reduce the percentage specified in the definition of Required Lenders or
any other percentage of Lenders specified to be the applicable percentage in this
Agreement to act on specified matters or amend the definitions of “Required
Lenders,” or “Pro Rata Share”;

     (iv) Increase the amount of Commitment of any Lender;

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     (v) Other than pursuant to a transaction permitted by the terms of this
Agreement, release all or substantially all of the Collateral; or

     (vi) Amend this Section 10.04.

          (b) No amendment of any provision of this Agreement relating to the Administrative Agent shall
be effective without the written consent of the Administrative Agent. The Administrative Agent may
waive payment of the fee required under Section 12.01(c) without obtaining the consent of any of
the Lenders. Except as otherwise expressly provided in Section 10.04(a) above, any provision of
this Agreement may only be amended, modified, or supplemented only by an instrument in writing
signed by each Borrower, the Administrative
Agent, and the Required Lenders.

          Section 10.05 Successors and Assigns. Subject to Section 12.01, this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and
permitted assigns.

          Section 10.06 Survival. The obligations of each Borrower under Sections 2.06, 3.03,
10.03, and 11.05 hereof shall survive the repayment of the Advances and the termination of this
Agreement. In addition, each representation and warranty made, or deemed to be made by a request
for a borrowing, herein or pursuant hereto shall survive the making of such representation and
warranty and the disbursement of the related Advance, and the Secured Parties shall not be deemed
to have waived, by reason of making any Advance, any Default that may arise by reason of such
representation or warranty proving to have been false or misleading, notwithstanding that the
Secured Parties may have had notice or knowledge or reason to believe that such representation or
warranty was false or misleading at the time such Advance was made.

          Section 10.07 Captions. The table of contents and captions and section headings
appearing herein are included solely for convenience of reference and are not intended to affect
the interpretation of any provision of this Agreement.

          Section 10.08 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such counterpart.

          Section 10.09 Governing Law. This Agreement shall be governed by Ohio law without
reference to choice of law doctrine.

          Section 10.10 SUBMISSION TO JURISDICTION; WAIVERS. Each party hereby irrevocably and
unconditionally:

	 	(i)	 	SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, THE NOTE AND THE
OTHER LOAN DOCUMENTS, OR FOR RECOGNITION AND ENFORCEMENT OF ANY
JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL 

50

 

	 	 	 	JURISDICTION
OF THE COURTS OF THE STATE OF OHIO, THE FEDERAL COURTS OF THE UNITED
STATES OF AMERICA FOR
THE SOUTHERN DISTRICT OF OHIO, AND APPELLATE COURTS FROM ANY THEREOF;
	 
	 	(ii)	 	CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY
BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY
SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR
PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD
OR CLAIM THE SAME;
	 
	 	(iii)	 	AGREES THAT SERVICE OF PROCESS IN ANY SUCH
ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY
REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF
MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE
BELOW OR AT SUCH OTHER ADDRESS OF WHICH THE ADMINISTRATIVE AGENT SHALL
HAVE BEEN NOTIFIED; AND
	 
	 	(iv)	 	AGREES THAT NOTHING HEREIN SHALL AFFECT THE
RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW
OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

          Section 10.11 WAIVER OF JURY TRIAL. EACH BORROWER, EACH LENDER, AND THE
ADMINISTRATIVE AGENT HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          Section 10.12 Acknowledgments. Each Borrower hereby acknowledges that:

	 	(a)	 	it has been advised by counsel in the negotiation, execution,
and delivery of this Agreement, the Notes and the other Loan Documents to which
it is a party;
	 
	 	(b)	 	the Secured Parties have no fiduciary relationship to any
Borrower, and the relationship between any Borrower and the Secured Parties is
solely that of debtor and creditor; and
	 
	 	(c)	 	no joint venture exists among or between the Secured Parties
and any Borrower.

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          Section 10.13 Non-liability of the Administrative Agent and the Lenders. Neither the
Administrative Agent nor any Lender undertakes any responsibility to any Borrower to review or
inform any Borrower of any matter in connection with any phase of any Borrower’s business or
operations. Each Borrower agrees that neither the Administrative Agent nor any Lender shall have
liability to any Borrower for losses suffered by any Borrower in connection with, arising out of,
or in anyway related to, the Transactions or any financing transaction contemplated and the
relationship established by the Loan Documents, or any act, omission, or event occurring in
connection therewith, unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of
the party from which recovery is sought. Neither the Administrative Agent nor any Lender shall
have any liability with respect to, and each Borrower hereby waives, releases, and agrees not to
sue for, any special, indirect, consequential, or punitive damages suffered by any Borrower in
connection with, arising out of, or in any way related to the Loan Documents, the financing
transactions contemplated thereby or any of the Transactions.

     Section 10.14 Amendment and Restatement.

     (a) On the Closing Date, the Credit Agreements and the Existing Forbearance Agreement
shall be amended and restated in their entirety by this Agreement in respect of “Tranche D”,
as defined in the Existing Forbearance Agreement, and the Credit Agreements, and the
Existing Forbearance Agreement shall thereafter be of no further force and effect except to
evidence (i) the incurrence by any Borrower of the indebtedness evidenced thereby, (ii) the
representations and warranties made by any Borrower prior to the Effective Date, and (iii)
any action or omission performed or required to be performed pursuant to such Credit
Agreements and the Existing Forbearance Agreement prior to the Effective Date. This
Agreement is not in any way intended to constitute a novation of any obligation or liability
of any Borrower existing under any Credit Agreement or Existing Forbearance Agreement or
evidence payment of all or any portion of any such obligation and liability. Each security
agreement and financing statement filed pursuant to any Credit Agreement or Existing
Forbearance Agreement or any predecessor thereto shall remain in full force and effect in
all respects as if such obligation or liability had been payable and effective originally as
provided by this Agreement.

     (b) The terms and conditions of this Agreement and the Administrative Agent’s,
Lenders’, and Huntington’s rights and remedies under this Agreement and the other Loan
Documents shall apply to all of the obligations and liabilities incurred under any Credit
Agreement or any Existing Forbearance Agreement and any promissory notes or other
instruments issued thereunder.

     (c) Each Borrower reaffirms each Lien granted by it pursuant to any Existing Loan
Document executed and delivered in connection with any Credit Agreement or any
Existing Forbearance Agreement to the extent of the Collateral in favor of The Huntington
National Bank, as Lender and the Administrative Agent for the benefit of Lenders and the
Issuing Bank, which Liens shall continue in full force and effect during the term of this
Agreement and any renewals thereof and shall continue to secure the Obligations.

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     (d) On and after the Effective Date, (i) all references to any Credit Agreement or any
Existing Forbearance Agreement (or to any amendment or any amendment and restatement
thereof) in any Loan Document (other than this Agreement) shall be deemed to refer to the
such Credit Agreement or Existing Forbearance Agreement, as amended and restated hereby,
(ii) all references to any section (or subsection) of any Credit Agreement or any Existing
Forbearance Agreement in any Loan Document (but not herein) shall be amended to become,
mutatis mutandis, references to the corresponding provisions of this Agreement, when
applicable, and (iii) except as the context otherwise provides, on or after the Effective
Date, all references to this Agreement herein (including for purposes of indemnification and
reimbursement of fees) shall be deemed to refer to each Credit Agreement or Existing
Forbearance Agreement, insofar as each is amended and restated hereby.

     (e) This amendment and restatement is limited as written and is not a consent to any
other amendment, restatement, or waiver, whether or not similar and, except as expressly
provided herein or in any other Loan Document, all terms and conditions of each Existing
Loan Document remain in full force and effect unless otherwise specifically amended hereby
or any other Loan Document.

          Section 10.15 Assignment of Liens. As of the Effective Date, Huntington hereby assigns to
the Administrative Agent all Liens and security interests in the Collateral granted by any Borrower
pursuant to any Credit Agreement, the Existing Forbearance Agreement, and any assignment, pledge,
security agreement, or other Existing Loan Document executed in connection therewith.

          Section 10.16 Set-Off.
In addition to any rights and remedies of each Lender and the Administrative Agent provided by
this Agreement and by law, the Administrative Agent and each Lender shall have the right, without
prior notice to any Borrower, any such notice being expressly waived by each Borrower to the extent
permitted by applicable law, upon any amount becoming due and payable by any Borrower under this
Agreement or any other Loan Document (whether at the stated maturity, by acceleration or otherwise)
to set-off and appropriate and apply against such amount any and all Property and deposits (general
or special, time or demand, provisional or final), in any currency, and any other credits,
Indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by the Administrative Agent, such
Lender or any Affiliate thereof to or for the credit or the account of any Borrower, irrespective
of whether the Administrative Agent or such Lender shall have made any demand under this Agreement
or any other Loan Document and although such obligations of any Borrower may be contingent or
unmatured or are owed to a branch or office of the Administrative Agent or such Lender different
from the branch or office holding such deposit or obligated on such Indebtedness. Each Lender may
set-off cash, the proceeds of the liquidation of any Collateral and all other sums or obligations
owed by the Administrative Agent or such Lender or any of their Affiliates to any Borrower against
all of any Borrower’s obligations to the Administrative Agent, such Lender or any of their
Affiliates, whether under this Agreement, any other Loan Document or under any other agreement
between the parties or between any Borrower and the Administrative Agent or any Lender, or
otherwise, without prejudice to the Administrative Agent’s, any Lender’s or any of their
Affiliate’s right to recover any deficiency. Each Lender and the Administrative Agent agrees
promptly to notify

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each Borrower after any such set-off and application made by such Lender or the
Administrative Agent; provided, that the failure to give such notice shall not affect the
validity of such set-off and application. All amounts set off pursuant to this Section 10.16 shall
be applied pursuant to Section 2.04(d) or Section 9.01(d), as applicable.

          Section 10.17 Entire Agreement; Continuation of Agreement. This Agreement embodies
the entire agreement and understanding of the parties hereto and supersedes any and all prior
agreements, arrangements, and understandings relating to the matters provided for herein. No
alteration, waiver, amendments, change, or supplement hereto shall be binding or effective unless
the same is set forth in writing by a duly authorized representative of each party hereto.

          Section 10.18 Full-Recourse. The Obligations of each Borrower hereunder shall be full
recourse to each Borrower and all property and assets of each Borrower, whether now owned or
hereafter acquired, including, without limitation, the property and assets of any Borrower which
such Borrower pledges on the date hereof, or may hereinafter from time to time pledge, as
Collateral pursuant to the terms of this Agreement.

          Section 10.19 Confidentiality.
The Administrative Agent and each Lender agree to hold any confidential information that it
may receive from any Borrower in connection with this Agreement in confidence, except for
disclosure (i) to its Affiliates and to the Administrative Agent and any other Lender and their
respective Affiliates, (ii) to legal counsel, accountants, and other professional advisors to such
Lender, (iii) to regulatory officials, (iv) to any Person as requested pursuant to or as required
by law, regulation, or legal process, (v) to any Person in connection with any legal proceeding to
which it is a party, (vi) to its direct or indirect contractual counterparties in swap agreements
or to legal counsel, accountants, and other professional advisors to such counterparties, and (vii)
to rating agencies if requested or required by such agencies in connection with a rating relating
to the Advances. Each Borrower agrees that the terms of this Section 10.19 shall set forth the
entire agreement between Borrowers and each Lender (including the Administrative Agent) with
respect to any confidential information previously or hereafter received by such Lender in
connection with this Agreement, and this Section 10.19 shall supersede any and all prior
confidentiality agreements entered into by such Lender with respect to such confidential
information. Notwithstanding anything in this Agreement to the contrary, confidential information
shall not include, and each party to any of the Loan Documents and their respective Affiliates (and
the respective partners, directors, officers, employees, advisors, representatives, and other
agents of each of the foregoing and their Affiliates) may disclose to any and all Persons, without
limitation of any kind, (i) any information with respect to the U.S. federal and state income tax
treatment of the transactions contemplated hereby and any facts that may be relevant to
understanding such tax treatment, which facts shall not include for this purpose the names of the
parties or any other Person named herein, or information that would permit identification of the
parties or such other Persons, or any pricing terms or other nonpublic business or financial
information that is unrelated to such tax treatment or facts, and (ii) all materials of any kind
(including opinions or other tax analyses) relating to such tax treatment or facts that are
provided to any of the Persons referred to above, and it is hereby confirmed that each of the
Persons referred to above has been authorized to make such disclosures since the commencement of
discussions regarding the transactions contemplated hereby.

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          Article XI. The Administrative Agent.

          Section 11.01 Appointment; Nature of Relationship. Huntington is hereby appointed by
each of the Lenders as its contractual representative (referred to as the “Administrative
Agent”) under this Agreement and under each other Loan Document, and each of the Lenders
irrevocably authorizes the Administrative Agent in this Agreement to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent by the terms of
this Agreement, together with such actions and powers as are reasonably incidental thereto. The
Administrative Agent agrees to act as such contractual representative upon the express conditions
contained in this Section 11.01. Notwithstanding the use of the defined term “Administrative
Agent,” it is expressly understood and agreed that the Administrative Agent shall not have any
fiduciary responsibilities to any Lender by reason of this Agreement or any other Loan Document and
that the Administrative Agent is merely acting as the contractual representative of the Lenders
with only those duties as are expressly set forth in this Agreement and the other Loan Documents.
The Administrative Agent acknowledges, solely in its capacity as the Administrative Agent, that (i)
it is a “representative” of the Lenders within the meaning of the term “secured party” as defined
in the Uniform Commercial Code, and (ii) it is acting as an independent contractor, the rights and
duties of which are limited to those expressly set forth in this Agreement and the other Loan
Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan
Documents that provides rights or powers to the Administrative Agent, Lenders agree that the
Administrative Agent shall have the right to exercise the following powers as long as this
Agreement remains in effect: (a) maintain, in accordance with its customary business practices,
ledgers and records reflecting the status of the Obligations, the Collateral, the Collections of
each Borrower and its Subsidiaries, and related matters, (b) execute or file any and all financing
or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs
of claim, notices and other written agreements with respect to the Loan Documents, (c) exclusively
receive, apply, and distribute the Collections of each Borrower and its Subsidiaries as provided in
the Loan Documents, (d) open and maintain such bank accounts as the Administrative Agent deems
necessary and appropriate in accordance with the Loan Documents for the foregoing purposes with
respect to the Collateral and the Collections of each Borrower and its Subsidiaries, (e) perform,
exercise, and enforce any and all other rights and remedies of the Lenders with respect to each
Borrower, the Obligations, the Collateral, the Collections of each Borrower and its Subsidiaries,
or otherwise related to any of same as provided in the Loan Documents, and (f) incur and pay such
expenses as the Administrative Agent may deem necessary or appropriate for the performance and
fulfillment of its functions and powers pursuant to the Loan Documents.

          Section 11.02 Exculpatory Provisions. Neither the Administrative Agent nor any of its
Affiliates, nor any of their respective officers, directors, employees, agents, or
attorneys-in-fact, shall be liable to any Lender for any action lawfully taken or omitted to be
taken by it or such Person under or in connection herewith or in connection with any of the other
Loan Documents (except to the extent any of the foregoing is found in a final non-appealable
judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful
misconduct of the such Person) or responsible in any manner to any of the Lenders for any recitals,
statements, representations, or warranties made by any Borrower contained in this Agreement or in
any of the other Loan Documents or in any certificate, report, document, financial statement, or
other written or oral statement referred to or provided for in, or received

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by the Administrative
Agent under or in connection herewith, or in connection with the other Loan Documents, or
enforceability or sufficiency therefor of any of the other Loan Documents, or for any failure of
any Borrower to perform its obligations under this Agreement or thereunder. The Administrative
Agent shall not be responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectibility, or sufficiency of this Agreement, or any of the other Loan
Documents or for any representations, warranties, recitals, or statements made herein or therein or
made by any Borrower in any written or oral statement or in any financial or other statements,
instruments, reports, certificates, or any other documents in connection herewith or therewith
furnished or made by the Administrative Agent to the Lenders or by or on behalf of any Borrower to
the Administrative Agent or any Lender or be required to ascertain or inquire as to the performance
or observance of any of the terms, conditions, provisions, covenants, or agreements contained
herein or therein or as to the use of the proceeds of the Advances or of the existence or possible
existence of any Default or Event of Default or to inspect the properties, books, or records of any
Borrower. The Administrative Agent is not a trustee for the Lenders and owes no fiduciary duty to
the Lenders. Each Lender recognizes and agrees that the Administrative Agent shall not be required
to determine independently whether the conditions described in Sections 5.01 and 5.02 have been
satisfied and, when the Administrative Agent disburses funds to any Borrower, it may rely fully
upon statements contained in the relevant requests by such Borrower.

          Section 11.03 Reliance on Communications. The Administrative Agent shall be entitled
to rely upon, and shall not incur any liability of relying upon, any Note, notice, consent,
request, certificate, affidavit, letter, telegram, facsimile, telex, electronic mail message,
statement, instrument, paper, document, or other writing (including any electronic message,
Internet or intranet website posting, or other distribution) believed by it in good faith to be
genuine and correct and to have been signed or sent by the proper person or persons, and, in
respect to legal matters, upon the opinion of counsel selected by the Administrative Agent, which
counsel may be employees of the Administrative Agent. For purposes of determining compliance with
the conditions specified in Sections 5.01 and 5.02, each Lender that has signed this Agreement or
has become a party hereto pursuant to the terms of Section 12 hereof shall be deemed to have
consented to, approved or accepted, or to be satisfied with, each document or other matter required
thereunder to be consented to, approved by, or acceptable or satisfactory to, a Lender, unless the
Administrative Agent shall have received notice from such Lender prior to the applicable date
specifying its objection thereto.

          Section 11.04 Delegation of Duties. The Administrative Agent may execute any of its
duties as the Administrative Agent hereunder and under any other Loan Document by or through
employees, agents, and attorneys-in-fact and shall not be answerable to the Lenders, except as to
money or securities received by it or its authorized agents, and to the extent any conduct is found
in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the
gross negligence or willful misconduct of the Administrative Agent or any such agents or
attorneys-in-fact. The Administrative Agent shall be entitled to the advice of legal counsel,
accountants, and other professionals selected by the Administrative Agent concerning the
contractual arrangement between the Administrative Agent and the Lenders and all matters pertaining
to the Administrative Agent’s duties under this Agreement and under any other Loan Document.
Borrowers and Lenders agree that the Administrative Agent may delegate any of its duties under this
Agreement to any of its Affiliates, and that any such Affiliate that performs

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duties in connection
with this Agreement shall be entitled to the same benefits of the indemnification, waiver, and
other protective provisions to which the Administrative Agent is entitled under Section 10.03.

          Section 11.05 The Administrative Agent’s Reimbursement and Indemnification. The
Administrative Agent may incur and pay expenses to the extent the Administrative Agent reasonably
deems necessary or appropriate for the performance and fulfillment of its functions, powers, and
obligations pursuant to the Loan Documents, including court costs, attorneys fees and expenses,
fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of
collection by outside collection agencies, auctioneer fees and expenses, and costs of security
guards or insurance premiums paid to maintain the Collateral, whether or not Borrowers are
obligated to reimburse the Administrative Agent or Lenders for such expenses pursuant to the Credit
Agreement or otherwise. The Administrative Agent is authorized and directed to deduct and retain
sufficient amounts from the Collections of any Borrower and any of its Subsidiaries received by the
Administrative Agent to reimburse the Administrative Agent for such out-of-pocket costs and
expenses prior to the distribution of any amounts to any Lender or any other Person. In the event
the Administrative Agent is not reimbursed for such costs and expenses from the Collections of any
Borrower and its Subsidiaries received by the Administrative Agent, Lenders agree to reimburse and
indemnify the Administrative Agent for their Pro Rata Share of (i) any amounts not reimbursed by
such Borrower for which the Administrative Agent is entitled to reimbursement by such Borrower
under the Loan Documents, (ii) any other expenses incurred by the Administrative Agent on behalf of
the Lenders, in connection with the preparation, execution, delivery, administration and
enforcement of the Loan Documents (including, without limitation, for any expenses incurred by the
Administrative Agent in connection with any dispute between the Administrative Agent and any Lender
or between two or more of the Lenders), and (iii) any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses, or disbursements of any kind and nature
whatsoever that may be imposed on, incurred by, or asserted against the Administrative Agent in any
way relating to or arising out of the Loan Documents or any other document delivered in connection
therewith or the transactions contemplated thereby (including, without limitation, for any such
amounts incurred by or asserted against the Administrative Agent in connection with any dispute
between the Administrative Agent and any Lender or between two or more of the Lenders), or the
enforcement of any of the terms of the Loan Documents or of any such other documents;
provided, that (i) no Lender shall be liable for any of the foregoing to the extent any of
the foregoing is found in a final non-appealable judgment by a court of competent jurisdiction to
have resulted from the gross negligence or willful misconduct of the Administrative Agent and (ii)
any indemnification required pursuant to Section 2.06 shall, notwithstanding the provisions of this
Section 11.05, be paid by the relevant Lender in accordance with the provisions thereof. The
obligations of the Lenders under this Section 11.05 shall survive payment of the Advances and
termination of this Agreement.

          Section 11.06 Notice of Default. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default, unless the Administrative
Agent has received written notice from a Lender or any Borrower referring to this Agreement
describing such Default or Event of Default and stating that such notice is a “notice of default.”
In the event that the Administrative Agent receives such a notice, the Administrative Agent shall
give prompt notice thereof to the Lenders. The Administrative Agent shall in all

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cases be fully
protected in acting, or in refraining from acting, under this Agreement or under any of the other
Loan Documents in accordance with a request of the Required Lenders (or to the extent specifically
required, all the Lenders) and such request and any action or failure to act pursuant thereto shall
be binging upon all the Lenders (including their successors and assigns).

          Section 11.07 Rights as a Lender. If the Administrative Agent is also a Lender, the
Administrative Agent shall have the same rights and powers under this Agreement and under any other
Loan Document with respect to its Commitment and its Advances as any Lender and may exercise the
same as though it were not the Administrative Agent, and the term “Lender” or “Lenders” shall, at
any time when the Administrative Agent is a Lender, unless the context otherwise indicates, include
the Administrative Agent in its individual capacity. The Administrative Agent and its Affiliates
may accept deposits from, lend money to, and generally engage in any kind of business, in addition
to those contemplated by this Agreement or any other Loan Document, with the any Borrower or any of
its Subsidiaries in which such Borrower or such Subsidiary is not restricted hereby from engaging
with any other Person and without any duty to account therefor to the Lenders.

          Section 11.08 Non-Reliance on Administrative Agent and Other Lenders. Each Lender
acknowledges that it has, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement and the
other Loan Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement and the other Loan Documents. Except for any
notice, report, document, or other information expressly required to be furnished to the Lenders by
the Administrative Agent under this Agreement, the Administrative Agent shall not have any duty or
responsibility (either initially or on a continuing basis) to provide any Lender with any notice,
report, document, credit information, or other information concerning the affairs, financial
condition, or business of any Borrower or any of its Affiliates that may come into the possession
of the Administrative Agent (regardless of whether in its capacity as Administrative Agent) or any
of its Affiliates.

          Section 11.09 Resignation of Administrative Agent. The Administrative Agent may
resign at any time upon thirty (30) days prior written notice to the Lenders and to each Borrower.
Upon such receipt of any such notice of resignation, the Required Lenders shall have the right, in
consultation with each Borrower, to appoint a successor, which shall be a bank with an office in
the United States of America, or an Affiliate of any such bank with an office in the United States
of America. If no such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within thirty (30) days after the retiring Administrative Agent
gives notice of its resignation, then the retiring Administrative Agent may on behalf of Lenders
appoint a successor Administrative Agent meeting the qualifications set forth above,
provided that if the Administrative Agent shall notify each Borrower and Lenders that no
qualifying Person has accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other Loan Documents (except
that in the case of any collateral security held by the Administrative Agent on behalf of

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the Lenders under any of the Loan Documents, the retiring Administrative Agent shall continue to hold
such collateral security until such time as a successor Administrative Agent is appointed) and (2)
all payments, communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above in this paragraph).
Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor
shall succeed to and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be
discharged from all of its duties and obligations hereunder or under the other Loan Documents (if
not already discharged therefrom as provided above in this paragraph). The fees payable by any
Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between Borrowers and such successor. After the retiring Administrative
Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Section
11.09 and Section 10.03 shall continue in effect for the benefit of such retiring Administrative
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while the retiring Administrative Agent was acting as the
Administrative Agent.

          Section 11.10 Administrative Agent Fees. Each Borrower agrees to pay to the
Administrative Agent, for its account, the Administrative Agent Fee on the Effective Date and on
each anniversary thereof. The Administrative Agent agrees that no Administrative Agent Fee shall
accrue while Huntington is the sole Lender under this Agreement.

          Section 11.11 Execution of Collateral Documents. Lenders hereby empower and authorize
the Administrative Agent to execute and deliver to each Borrower on their behalf the Loan Documents
and all related financing statements and any financing statements, agreements, documents, or
instruments as shall be necessary or appropriate to effect the purposes of this Agreement.

          Section 11.12 Collateral. (a) Lenders hereby irrevocably authorize the Administrative
Agent, at its option and in its sole discretion, to release any Lien on any Collateral (i) upon the
termination of the Commitments and payment and satisfaction in full by any Borrower of all
Obligations, (ii) constituting property in which no Borrower owned any interest at the time the
Lien was granted nor at any time thereafter, (iii) constituting property leased to any Borrower or
its Subsidiary under a lease that has expired or is terminated in a transaction permitted under
this Agreement, (iv) constituting property that any Borrower has authorization to Transfer under
the terms of this Agreement or any other Loan Document or (v) constituting property for which such
release shall otherwise have been approved by the Required Lenders. Upon request by the
Administrative Agent or any Borrower at any time, Lenders will confirm in writing the
Administrative Agent’s authority to release any such Liens on particular types or items of
Collateral pursuant to this Section 11.12; provided, however, that (1) the Administrative
Agent shall not be required to execute any document necessary to evidence such release on terms
that, in the Administrative Agent’s opinion, would expose the Administrative Agent to liability or
create any obligation or entail any consequence other than the release of such Lien without
recourse, representation, or warranty, and (2) such release shall not in any manner discharge,
affect, or impair any Obligation of any Borrower or any Lien (other than a

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Lien expressly being
released) upon any interest retained by any Borrower, including, the proceeds of any sale, all of
which shall continue to constitute part of the Collateral.

     (b) The Administrative Agent shall have no obligation whatsoever to any of Lenders to assure
that the Collateral exists or is owned by any Borrower or is cared for, protected, or insured or
has been encumbered, or that Liens of the Administrative Agent have been properly or sufficiently
or lawfully created, perfected, protected, or enforced or are entitled to any particular priority,
or to exercise at all or in any particular manner or under any duty of care, disclosure or
fidelity, or to continue exercising, any of the rights, authorities and powers granted or available
to the Administrative Agent pursuant to any of the Loan Documents, it being understood and agreed
that in respect of the Collateral, or any act, omission, or event related thereto, subject to the
terms and conditions contained herein, the Administrative Agent may act in any manner it may deem
appropriate, in its sole discretion given the Administrative Agent’s own interest in the Collateral
in its capacity as one of the Lenders, and that the Administrative Agent shall have no other duty
or liability whatsoever to any Lender as to any of the foregoing, except as otherwise provided
herein.

          Section 11.13 Agency for Perfection. The Administrative Agent hereby appoints each other
Lender as its agent (and each Lender hereby accepts such appointment) for the purpose of perfecting
the Administrative Agent’s Liens in assets which, in accordance with Article 9 of the UCC can be
perfected only by possession. Should any Lender obtain possession of any such Collateral, such
Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent’s
request therefor shall deliver such Collateral to the Administrative Agent or in accordance with
the Administrative Agent’s instructions.

          Article XII. Assignments.

          Section 12.01 Assignments.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that no Borrower may assign or otherwise
transfer any of its rights or obligations under this Agreement without the prior written
consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise
transfer any of its rights or obligations under this Agreement except (i) to an assignee in
accordance with Section 12.01(b), or (ii) by way of pledge or assignment of a security
interest subject to the restrictions of Section 12.01(e) (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby, and, to the
extent expressly contemplated hereby, the Related Parties of each of the Secured Parties)
any legal or equitable right, remedy, or claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more
banks or other entities (“Purchasers”) all or any part of its rights and
obligations under this Agreement and the Loan Documents. Such assignment shall be substantially

60

 

in the form of Exhibit E or in such other form as may be agreed to by
the parties thereto. Each such assignment shall be subject to the following:

     1) Minimum Amounts.

     i) in the case of any assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Advances at the time owing to it or in
the case of an assignment to a Lender or an Affiliate of a Lender no minimum
amount need be assigned; and

     ii) in any case not described in clause (b)(i)(A) of this Section
12.01, the aggregate amount of the Commitment (which for this purpose
includes Advances outstanding thereunder) or, if the applicable Commitment
is not then in effect, the principal outstanding balance of the Advances of
the assigning Lender subject to each such assignment (determined as of the
date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in
the Assignment and Acceptance, as of the Trade Date) shall not be less than
$2,500,000, in the case of any assignment in respect of a term facility,
unless each of the Administrative Agent and, so long as no Default or Event
of Default has occurred and is continuing, each Borrower otherwise consents
(each such consent not to be unreasonably withheld or delayed).

     2) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Advance or the Commitment
assigned.

     3) Required Consents. No consent shall be required for any assignment
except to the extent required by paragraph (b)(i)(B) of this Section 12.01 and, in
addition:

     i) the consent of each Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (x) an Event of Default has
occurred and is continuing at the time of such assignment or (y) such
assignment is to a Lender or an Affiliate of a Lender or is in connection
with merger or consolidation of a Lender or a Transfer by Lender of one or
more of its loan portfolios; and

     ii) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments in
respect of (i) an unfunded or revolving credit facility if such assignment
is to a person that is not a Lender with a Commitment in respect of such
facility or an Affiliate of such Lender with respect to such Lender or (ii)
a funded term facility to a Person who is not a Lender or an Affiliate of a
Lender.

61

 

     4) Assignment and Acceptance. The parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Acceptance,
together with a processing and recordation fee of $3,500, and the assignee, if it is
not a Lender, shall deliver to the Administrative Agent an administrative
questionnaire in form prescribed by the Administrative Agent.

     5) No Assignment to any Borrower. No such assignment shall be made to
any Borrower or to any of its Affiliates or Subsidiaries.

     6) No Assignment to Natural Persons. No such assignment shall be made
to a natural person.

     (c) Effect; Effective Date. Upon (i) delivery to the Administrative Agent of
an assignment, together with any consents required by Section 12.01(b), and (ii) payment of
a $3,500 fee to the Administrative Agent for processing such assignment (unless such fee is
waived by the Administrative Agent), such assignment shall become effective on the
assignment effective date specified in such assignment. The assignment shall contain a
representation by the Purchaser to the effect that none of the consideration used to make
the purchase of the Commitment and Advances under the applicable assignment agreement
constitutes “plan assets” as defined under ERISA and that the rights and interests of the
Purchaser in and under the Loan Documents will not be “plan assets” under ERISA. On and
after the assignment effective date of such assignment, such Purchaser shall for all
purposes be a Lender party to this Agreement and any other Loan Document executed by or on
behalf of the Lenders and shall have all the rights and obligations of a Lender under the
Loan Documents, to the same extent as if it were an original party thereto, and the
transferor Lender shall be released with respect to the Commitment and Advances assigned to
such Purchaser without any further consent or action by any Borrower, Lenders, or the
Administrative Agent. In the case of an assignment covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a Lender under
this Agreement but shall continue to be entitled to the benefits of, and subject to, those
provisions of this Agreement and the other Loan Documents that survive payment of the
Advances and termination of the applicable agreement. Upon the consummation of any
assignment to a Purchaser pursuant to this Section 12.01, the transferor Lender, the
Administrative Agent, and each Borrower shall, if the transferor Lender or the Purchaser
desires that its Advances be evidenced by Notes, make appropriate arrangements so that new
Notes or, as appropriate, replacement Notes are issued to such transferor Lender and new
Notes or, as appropriate, replacement Notes, are issued to such Purchaser, in each case in
principal amounts reflecting their respective Commitments, as adjusted pursuant to such
assignment.

     (d) Register. The Administrative Agent shall maintain at one of its offices
in Columbus, Ohio a copy of each Assignment and Acceptance delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the Commitments of, and
principal amounts of the Advances owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall be conclusive,
and each Borrower, the Administrative Agent, and Lenders may treat each Person whose

62

 

name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by each Borrower at any reasonable time and from time to time upon
reasonable prior notice.

     (e) Certain Pledges. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure obligations of
that Lender, including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided, that no such pledge or assignment shall release that Lender from
any of its obligations under this Agreement or substitute any such pledge or assignee for
such Lender as a party to this Agreement; provided, however that such Federal Reserve Bank
may enforce such pledge or security interest in any manner permitted by applicable law.

          Section 12.02 Dissemination of Information. Each Borrower authorizes each Lender to
disclose to any Purchaser or any other Person acquiring an interest in the Loan Documents by
operation of law (each a “Transferee”) and any prospective Transferee any and all documents
and information in such Lender’s possession relating to any Borrower and its Subsidiaries;
provided, that each Transferee and prospective Transferee agrees to be bound by Section
10.19 of this Agreement.

          Section 12.03 Tax Treatment. If any interest in any Loan Document is transferred to
any Transferee that is not incorporated under the laws of the United States or any State thereof,
the transferor Lender shall cause such Transferee, concurrently with the effectiveness of such
transfer, to comply with the provisions of Section 3.03 of this Agreement.

[SIGNATURE PAGES FOLLOW]

63

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
and delivered as of the day and year first above written

	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	FRANKLIN CREDIT MANAGEMENT CORPORATION	 	 
	 

	 	By:	 	/s/ Thomas J. Axon 	 	 
	 

	 	Name:
	 	 

Thomas J. Axon
	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	101 Hudson St., 25th Floor	 	 
	 	 	Jersey City, New Jersey 07302	 	 
	 	 	Fax: (201) 604-4400	 	 
	 	 	Attention: General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Kramer Levin Naftalis & Frankel LLP	 	 
	 	 	1177 Avenue of the Americas	 	 
	 	 	New York, New York 10036	 	 
	 	 	Fax: (212) 715-8346	 	 
	 	 	Attention: J. Michael Mayerfeld	 	 
	 
	 	 	 	 	 	 
	 	 	FRANKLIN CREDIT HOLDING CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas J. Axon 	 	 
	 

	 	Name:
	 	 

Thomas J. Axon
	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	     Same as above.	 	 

Signature Page to Amended and Restated Credit Agreement (Licensing)

 

 

	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alan D Seitz	 	 
	 

	 	Name:
	 	 

Alan D. Seitz
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	2361 Morse Road	 	 
	 	 	NC3W67	 	 
	 	 	Columbus, Ohio 43229	 	 
	 	 	Attn: Special Assets	 	 
	 	 	Telephone No.: (614) 480-5355	 	 
	 	 	Telecopier No.: (614) 480-3795	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Porter Wright Morris & Arthur LLP	 	 
	 	 	41 South High Street	 	 
	 	 	Columbus, Ohio 43215	 	 
	 	 	Attn: Timothy E. Grady, Esq.	 	 
	 	 	Telecopier No.: (614) 227-2105	 	 
	 	 	Telephone No.: (614) 227-2100	 	 

Signature Page to Amended and Restated Credit Agreement (Licensing)

 

 

	 	 	 	 	 	 	 
	 	 	LENDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	HUNTINGTON FINANCE, LLC, as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James K. Ciroli	 	 
	 

	 	Name:
	 	 

James K. Ciroli
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	c/o Huntington Bancshares Incorporated	 	 
	 	 	41 South High Street	 	 
	 	 	Columbus, Ohio 43215	 	 
	 	 	Attn: James K. Ciroli, Vice President	 	 
	 	 	Telephone No.: (614) 480-5931	 	 
	 	 	Telecopier No.: (614) 480-4284	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Same Address as Administrative Agent.	 	 

Signature Page to Amended and Restated Credit Agreement (Licensing)

 

 

Schedule 1

COMMITMENTS OF LENDERS

Letter of Credit Commitment — Huntington Finance LLC — $6,500,000 — 100%.

Revolving Loan Commitment — Huntington Finance LLC — $2,000,000 — 100%

Draw Loan Commitment — Huntington Finance, LLC — $5,000,000 — 100%

Schedule 1

 

 

Schedule 2.10

EXISTING LETTERS OF CREDIT

1. Franklin Credit – L/C# 004679 – Expires April 13, 2009 – $6,272,750.

2. Franklin Credit – L/C# 004680 – Expires December 31, 2010 – $190,500.

Schedule 2.10

 

 

Schedule 6.14

SUBSIDIARIES

Schedule 6.14

 

 

Schedule 6.17

LICENSES

Schedule 6.17

 

 

Schedule 7

TRANSACTION DOCUMENTS

	1.	 	Transfer and Assignment Agreement, dated as of March 31, 2009, among Franklin Credit Asset
Corporation, Franklin Credit Management Corporation, Tribeca Lending Corp. and each of their
respective subsidiaries listed on Schedule I thereof and Franklin Mortgage Asset Trust 2009-A.

	2.	 	Servicing Agreement, dated as of March 31, 2009, between Franklin Mortgage Asset Trust 2009-A
and Franklin Credit Management Corporation.

	3.	 	Trust Agreement dated as of March 31, 2009, among Franklin Credit Asset Corporation, Franklin
Credit Management Corporation, Tribeca Lending Corp. and each of their respective subsidiaries
listed on Schedule I thereof.

	4.	 	Administration Agreement, dated as of March 31, 2009, between The Huntington National Bank
and Franklin Mortgage Asset Trust 2009-A.

Schedule 7

 

 

Schedule 7.19

POST-CLOSING MATTERS

Schedule 7.19

 

 

EXHIBIT A-1

FORM OF REVOLVING LOAN NOTE

 

 

EXHIBIT A-2

FORM OF DRAW LOAN NOTE

 

 

EXHIBIT B

FORM OF GUARANTEE AGREEMENT

 

 

EXHIBIT C

FORM OF SECURITY AGREEMENT

 

 

EXHIBIT D

FORM OF INVESTMENT PROPERTY SECURITY AGREEMENT

 

 

EXHIBIT E

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENTEX-10.13

Exhibit 10.13

AMENDED AND RESTATED SECURITY AGREEMENT (LICENSING)

     THIS AMENDED AND RESTATED SECURITY AGREEMENT (LICENSING), dated as of March 31, 2009
(this “Agreement”), is entered into by FRANKLIN CREDIT MANAGEMENT CORPORATION, a Delaware
corporation (“FCMC”), in favor of The Huntington National Bank, acting hereunder as contractual
representative pursuant to the Credit Agreement (as defined below) for Lenders (as defined below)
(“Huntington”, acting as such contractual representative and any successor or successors to
Huntington acting in such capacity, being referred to as “Administrative Agent”).

W i t n e s s e t h:

     WHEREAS, FCMC and Franklin Credit Holding Corporation (“Holding”) as borrowers, the
financial institutions party thereto as Lenders, and The Huntington National Bank as Administrative
Agent and Issuing Bank (Huntington, in its individual capacity and as Issuing Bank, and such other
financial institutions being hereafter referred to collectively as “Lenders” and individually as
"Lender”), have entered into a certain Amended and Restated Credit Agreement (Licensing), dated as
of March 31, 2009 (as amended, supplemented, modified or restated from time to time, the “Credit
Agreement”), pursuant to which Huntington and the other Lenders have agreed to make certain
advances and other financial accommodations to and for the benefit of FCMC and Holding, upon the
terms and subject to the conditions set forth in the Credit Agreement (Administrative Agent and
Lenders, together with affiliates of Lenders, being referred to collectively as the “Secured
Creditors” and individually as a “Secured Creditor”);

     WHEREAS, this Agreement shall amend and restate one or more existing security
agreements executed by FCMC in favor of Huntington, in their entirety as of the date hereof on the
terms and subject to the conditions set forth herein, (ii) this Agreement shall not constitute a
novation of the obligations and liabilities existing under such existing security agreements or
evidence payment of all or any of such obligations and liabilities secured thereby, and (iii) from
and after the date hereof, such existing security agreements shall be of no further force or
effect, except to secure the Secured Obligations (as defined below) incurred, the representations
and warranties made, and the actions and omissions performed or required to be performed,
thereunder prior to the date hereof;

     WHEREAS, the Credit Agreement, security agreement, term loan and security agreement,
loan agreement, credit agreement, forbearance agreement, mortgage or deed of trust, promissory
note, security agreement, certificate, letter of credit reimbursement agreement, pledge agreement,
control agreement, joinder agreement, counterpart signature page, assignment, guaranty agreement,
banking services agreement, hedging agreement, cash management agreement, consent agreement,
collateral agreement, amendment, modification agreement, instrument and financing statements and
other loan documents (as any of the same may be amended, restated, supplemented, modified or
replaced from time to time) executed or delivered from time to time to any Lender by FCMC, Holding,
or Thomas J. Axon (“Axon”) as a guarantor, are collectively referred to as the “Credit Documents”);

     WHEREAS, pursuant to the respective Credit Documents, Lenders have agreed subject to
certain conditions precedent, to make and/or maintain loans and other financial accommodations to
FCMC and Holding from time to time; and

     WHEREAS, the Secured Creditors have required as a condition, among others, of
extending credit to any FCMC and Holding or of renewing, extending, or forbearing from demanding
immediate payment of extensions of credit to FCMC and Holding, that FCMC enter into this Agreement.

     NOW THEREFORE, in consideration of the promises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, FCMC hereby agrees
with the Secured Creditors as follows:

 

 

ARTICLE I Defined Terms

     Section 1.1 Definitions

     (a) Terms used herein that are defined in the UCC have the meanings given to them in the UCC,
including the following terms (which are capitalized herein):

     “Account Debtor”, “Accounts”, “Chattel Paper”, “Commercial Tort Claim”, “Commodity Account”,
“Commodity Intermediary”, “Deposit Account”, “Documents”, “Entitlement Holder”, “Entitlement
Order”, “Equipment”, “Financial Asset”, “General Intangibles”, “Instruments”, “Inventory”,
“Investment Property”, “Letter-of-Credit Right”, “Proceeds”, “Securities Account”, “Securities
Intermediary”, “Security, “Security Entitlement”.

     (b) The following terms shall have the following meanings:

     “Additional Pledged Collateral” means all shares of, partnership interests in (whether limited
or general), trust certificates of, and limited liability company interests in, all securities
convertible into, and warrants, options and other rights to purchase or otherwise acquire, stock of
or interests in, either (i) any Person that, after the date of this Agreement, as a result of any
occurrence, becomes a direct Subsidiary of FCMC or (ii) any issuer of Pledged Stock, any
Partnership or any LLC that is acquired by FCMC after the date hereof; all certificates or other
instruments representing any of the foregoing; all Security Entitlements of FCMC in respect of any
of the foregoing; all additional indebtedness from time to time owed to FCMC by any obligor on the
Pledged Notes and the instruments evidencing such indebtedness; and all interest, cash, instruments
and other property or Proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any of the foregoing. Additional Pledged Collateral may be General
Intangibles or Investment Property.

     “Agreement” means this Agreement.

     “Approved Deposit Account” means any present or future Deposit Account of FCMC that (i) is
maintained with Huntington (or any affiliate thereof) or (ii) is subject to an effective Deposit
Account Control Agreement in favor of the Administrative Agent and maintained with a Deposit
Account Bank. “Approved Deposit Account” includes all monies on deposit in a Deposit Account and
all certificates and instruments, if any, representing or evidencing such Deposit Account.

     “Approved Securities Intermediary” means a Securities Intermediary or Commodity Intermediary
acceptable to the Administrative Agent and with respect to which FCMC has delivered to
Administrative Agent an executed Control Account Agreement.

     “Banking Services” means each and any of the following bank services provided to FCMC by any
Lender or any of its affiliates: (a) commercial credit cards, (b) stored value cards and (c)
treasury management services (including, without limitation, controlled disbursement, automated
clearinghouse transactions, return items, overdrafts and interstate depository network services).

     “Bankruptcy Code” means Title 11 of the United States Code (11 USC, § 101 et
seq), as amended from time to time, and any successor statute thereto, including (unless
the context requires otherwise) any rules or regulations promulgated thereunder.

     “Capital Leases” means a lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP.

     “Cash Collateral Account” means any deposit account over which the Administrative Agent has
sole dominion and control, established by the Administrative Agent, in its sole discretion at the
Administrative Agent, and entitled “The Huntington National Bank, as Agent and Secured Party for
Franklin Credit

2

 

Management Corporation (Blocked Account)” or such similar title as the Administrative Agent
may approve or require.

     “Cash Equivalents” means (i) marketable direct obligations issued or unconditionally
guaranteed by the United States of America or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one (1) year from the date of
acquisition thereof, (ii) marketable direct obligations issued by any state of the United States or
any political subdivision of any such state or any public instrumentality thereof maturing within
one (1) year from the date of acquisition thereof and, at the time of acquisition, having the
highest rating obtainable from either S&P or Moody’s, and (iii) certificates of deposit or bankers’
acceptances maturing within one (1) year from the date of acquisition thereof either (A) issued by
any bank organized under the laws of the United States or any state thereof which bank has a rating
of A or A2, or better, from S&P or Moody’s, or (B) issued by any other bank insured by the Federal
Deposit Insurance Corporation, (“FDIC”) provided that such certificates of deposit are less
than or equal to, in the aggregate, the deposit insurance coverage limit set by the FDIC for single
ownership accounts.

     “Collateral” has the meaning specified in Section 2.1.

     “Collection Account” means any Approved Deposit Account or Control Account in which cash and
Cash Equivalents may from time to time be on deposit or held therein as provided in this Agreement.

     “Contingent Obligations” means any agreement, undertaking or arrangement by which FCMC
assumes, guaranties, endorses, agrees to provide funding, or otherwise becomes or is contingently
liable upon the obligation or liability of any other Person.

     “Control Account” means a Securities Account or Commodity Account that is subject of an
effective Control Account Agreement and that is maintained by FCMC with an Approved Securities
Intermediary. “Control Account” includes all Financial Assets held in a Securities Account or a
Commodity Account and all certificates and instruments, if any, representing or evidencing the
Financial Assets contained therein.

     “Control Account Agreement” means an agreement, in form and substance acceptable to the
Administrative Agent, executed by FCMC, the Administrative Agent and the relevant Approved
Securities Intermediary.

     “Copyright Licenses” means any written agreement naming FCMC as licensor or licensee granting
any right under any Copyright, including the grant of any right to copy, publicly perform, create
derivative works, manufacture, distribute, exploit or sell materials derived from any Copyright.

     “Copyrights” means (a) all copyrights arising under the laws of the United States, any other
country or any political subdivision thereof, whether registered or unregistered and whether
published or unpublished, all registrations and recordings thereof and all applications in
connection therewith, including all registrations, recordings and applications in the United States
Copyright Office or in any foreign counterparts thereof, and (b) the right to obtain all renewals
thereof.

     “Credit Documents” has the meaning specified above in the recitals.

     “Deposit Account Bank” means a financial institution selected or approved by the
Administrative Agent and with respect to which FCMC has delivered to the Administrative Agent an
executed Deposit Account Control Agreement.

     “Deposit Account Control Agreement” means an agreement, in form and substance acceptable to
the Administrative Agent, executed by FCMC, the Administrative Agent and the relevant Deposit
Account Bank.

     “Event of Default” has the meaning specified in the Credit Agreement.

3

 

     “Excluded Property” means Equipment owned by FCMC that is, and continues to be, subject to a
Permitted Lien listed on Schedule 8 attached hereto, if the contract or other agreement pursuant to
which such Lien is granted contains an enforceable prohibition on the creation of any Lien on such
Equipment in favor of the Administrative Agent; and (b) equity interests (whether Investment
Property or General Intangibles), if the organizational or operating documents pursuant to which
such equity interests are issued or governed contain an enforceable prohibition on the creation of
any Lien on such equity interests in favor of the Administrative Agent; in each case, only to the
extent, and for so long as, such prohibition is not removed, terminated or rendered unenforceable
or otherwise deemed ineffective by applicable Law; provided, however, that “Excluded Property”
shall not include (i) the right to receive any payment of money (including, without limitation,
general intangibles for money due or to become due); and (ii) any proceeds, products, offspring,
accessions, rents, profits, income, benefits, substitutions or replacements of any of the
foregoing.

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board, the American Institute of Certified Public
Accountants and the Financial Accounting Standards Board as in effect from time to time in the
United States consistently applied.

     “Governmental Authority” means any nation or government, any federal, state, local or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative authority or functions of or pertaining to government, including any
authority or other quasi-governmental entity established to perform any of such functions.

     “Indebtedness” means, at any time, (i) all indebtedness, obligations or other liabilities
(other than accounts payable arising in the ordinary course of business payable on terms customary
in the trade) which in accordance with GAAP should be classified as liabilities on the balance
sheet of such Person, including without limitation, (A) for borrowed money or evidenced by debt
securities, debentures, acceptances, notes or other similar instruments, and any accrued interest,
fees and charges relating thereto, (B) under profit payment agreements or in respect of obligations
to redeem, repurchase or exchange any securities or to pay dividends in respect of any stock, (C)
with respect to letters of credit, bankers acceptances, interest rate swaps or other contracts,
currency agreement or other financial products, (D) to pay the deferred purchase price of property
or services, or (E) in respect of Capital Leases; (ii) all indebtedness, obligations or other
liabilities secured by a lien on any property, whether or not such indebtedness, obligations or
liabilities are assumed by the owner of the same; and (iii) all Contingent Obligations.

     “Insolvency Proceeding” means any proceeding commenced by or against any Person under any
provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law,
receivership, assignment for the benefit of creditors, formal or informal moratorium, forbearance,
composition, extension generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief.

     “Intellectual Property” means, collectively, all rights, priorities and privileges of FCMC
relating to intellectual property, whether arising under United States, multinational or foreign
laws or otherwise, including domain names, Copyrights, Copyright Licenses, Patents, Patent
Licenses, Trademarks, Trademark Licenses and trade secrets, and all rights to sue at law or in
equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

     “Intercompany Note” means any promissory note evidencing loans made by FCMC to any of its
Subsidiaries or Holding.

     “Joinder Agreement” means a joinder agreement, in the form and substance acceptable to the
Administrative Agent, executed by the Administrative Agent and the relevant Subsidiary that FCMC is
required to cause to become a party hereto as a loan party.

     “Law” means any law (including common law), constitution, statute, treaty, convention,
regulation, rule, ordinance, order, injunction, writ, decree or award of any Governmental
Authority.

4

 

     “Lien” means any interest in an asset securing an obligation owed to, or a claim by, any
Person other than the owner of the asset, whether such interest shall be based on the common law,
statute, or contract, whether such interest shall be recorded or perfected, and whether such
interest shall be contingent upon the occurrence of some future event or events or the existence of
some future circumstance or circumstances, including the lien or security interest arising from any
mortgage, deed of trust, encumbrance, pledge, hypothecation, assignment (collateral or otherwise),
hypothec, deposit arrangement, security agreement, conditional sale, trust receipt, lease,
consignment, or bailment for security purposes, judgment, claim encumbrance or statutory trust and
also including reservations, exceptions, encroachments, easements, rights-of-way, covenants,
conditions, restrictions, leases, and other title exceptions and encumbrances affecting real
property.

     “LLC” means each limited liability company in which FCMC has an interest, including those set
forth on Schedule 2.

     “LLC Agreement” means each operating agreement with respect to an LLC, as each agreement has
heretofore been, and may hereafter be, amended, restated, supplemented or otherwise modified from
time to time.

     “Loan Documents” means the Credit Documents, any agreements or documents evidencing or
relating to the provision of any Banking Services by any Lender for the benefit of FCMC, and any
other agreement, document, or arrangement (whether now existing or hereafter arising) by and among
a Lender (or its affiliate) and FCMC.

     “Material Intellectual Property” means Intellectual Property owned by or licensed to FCMC and
material to FCMC’s business.

     “Partnership” means each partnership or joint venture in which FCMC has an interest, including
those set forth on Schedule 2.

     “Partnership Agreement” means each partnership or joint venture agreement governing a
Partnership, as each such agreement has heretofore been, and may hereafter be, amended, restated,
supplemented or otherwise modified.

     “Patents” means (a) all letters patent of the United States, any other country or any
political subdivision thereof and all reissues and extensions thereof, (b) all applications for
letters patent of the United States or any other country and all divisions, continuations and
continuations-in-part thereof and (c) all rights to obtain any reissues or extensions of the
foregoing.

     “Patent License” means all agreements, whether written or oral, providing for the grant by or
to FCMC of any right to manufacture, use, import, sell or offer for sale any invention covered in
whole or in part by a Patent.

     “Permitted Contests” means the right of FCMC to contest or protest any Lien (other than any
such Lien that secures the Secured Obligations), taxes (other than payroll taxes or taxes that are
the subject of a United States federal tax lien), or rental payment, provided that (i) a reserve
with respect to such obligation is established on FCMC’s books and records in such amount as is
required under GAAP, (ii) any such protest is instituted promptly and prosecuted diligently by FCMC
in good faith, and (iii) the Administrative Agent is satisfied in its sole, good faith discretion,
that, while any such protest is pending, there will be no impairment of the enforceability,
validity, or priority of any of the Administrative Agent’s Liens.

     “Permitted Liens” means (i) any Liens held by the Administrative Agent or an affiliate of the
Administrative Agent, (ii) Liens for unpaid taxes that either are not yet delinquent, or do not
constitute an Event of Default hereunder and are the subject of a Permitted Contest, (iii) Liens
set forth on Schedule 8 to the extent of the Indebtedness referenced therein, (iv) the interests of
lessors under operating leases, (v) Liens securing

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purchase money Indebtedness or the interests of lessors under Capital Leases to the extent that
such Liens or interests secure Permitted Purchase Money Indebtedness, (vi) Liens arising by
operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, or
laborers, incurred in the ordinary course of FCMC’s business and not in connection with the
borrowing of money, and which Liens either (A) are for sums not yet delinquent, or (B) are the
subject of Permitted Contests, (vii) Liens arising from deposits made in connection with obtaining
worker’s compensation or other unemployment insurance, (viii) Liens or deposits to secure
performance of bids, tenders, or leases incurred in the ordinary course of FCMC’s business and not
in connection with the borrowing of money, (ix) Liens granted as security for surety or appeal
bonds in connection with obtaining such bonds in the ordinary course of FCMC’s business, and (x)
Liens resulting from any judgment or award that is not an Event of Default hereunder.

     “Permitted Purchase Money Indebtedness” means secured or unsecured purchase money Indebtedness
(including obligations under Capital Leases) incurred to finance the acquisition of fixed assets or
equipment, if such Indebtedness (i) has a scheduled maturity and is not due on demand, (ii) does
not exceed the purchase price of the items being purchased, and (iii) is not secured by any
property or assets other than the item or items being purchased.

     “Person” means any individual, corporation, firm, enterprise, partnership, trust, incorporated
or unincorporated association, joint venture, joint stock company, limited liability company or any
other entity of any kind or any government or political subdivision or any agency, department or
instrumentality thereof.

     “Pledged Collateral” means, collectively, the Pledged Notes, the Pledged Stock, the Pledged
Trust Certificates, the Pledged Partnership Interests, the Pledged LLC Interests, any other
Investment Property of FCMC, all certificates or other instruments representing any of the
foregoing and all Security Entitlements of FCMC in respect of any of the foregoing. Pledged
Collateral may be General Intangibles or Investment Property.

     “Pledged LLC Interests” means all right, title and interest of FCMC as a member of any LLC and
all right, title and interest of FCMC in, to and under any LLC Agreement to which it is a party.

     “Pledged Notes” means all right, title and interest of FCMC in the Instruments evidencing all
Indebtedness owed to FCMC, including all Indebtedness described on Schedule 2, issued by the
obligors named therein.

     “Pledged Partnership Interests” means all right, title and interest of FCMC as a limited or
general partner in all Partnerships and all right, title and interest of FCMC in, to and under any
Partnership Agreements to which it is a party.

     “Pledged Stock” means the shares of capital stock owned by FCMC, including all shares of
capital stock listed on Schedule 2.

     “Pledged Trust Certificates” means trust certificates issued by or on behalf of a statutory
trust and owned or held by FCMC.

     “Rate Management Transactions” means any transaction (including an agreement with respect
thereto) now existing or hereafter entered into between or among FCMC, any Lender or any affiliate
of a Lender, or any of its subsidiaries or affiliates or their successors, which is a rate swap,
basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index
swap, equity or equity index option, bond option, interest rate option, foreign exchange
transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency
swap transaction, cross-currency rate swap transaction, currency option or any other similar
transaction (including any option with respect to any of these transactions) or any combination
thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity
prices or other financial measures.

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     “Secured Obligations” means (a) any and all indebtedness, obligations, and liabilities now
existing or hereafter arising of FCMC or Holding to one or more Lender (or any affiliate) or
arising under or in connection with or evidenced by (i) the Credit Documents, this Agreement, or
any other Loan Document, (ii) any other agreement relating to (A) letters of credit or pursuant to
any letter of credit agreement or application (if any), or pursuant to any agreement or document
relating to Banking Services, (B) any agreement in respect of any Rate Management Transaction, (C)
any agreement for any electronic transfers, treasury management, cash management services and
deposit and disbursement account liability, and (D) any agreement of guaranty, surety or indemnity
issued by such Person, (b) any and all indebtedness, obligations, and liabilities, now existing or
hereafter arising, whether absolute or contingent and however and whenever created, arising,
evidenced or acquired, of FCMC or Holding owed to any Lender (or any affiliate of a Lender), (and
in each instance in clauses (a) and (b) above, whether arising before or after the filing of a
petition in bankruptcy and including all interest accrued after any such petition date), due or to
become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired,
and (c) any and all reasonable expenses and charges, legal or otherwise, suffered or incurred by a
Lender or any affiliate of a Lender in collecting or enforcing any such indebtedness, obligation,
and liability or in realizing on or protecting or preserving any security therefor, including,
without limitation, the Lien and security interest granted by any Credit Document.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Subsidiary” of a Person means any corporation, partnership, limited liability company or
other entity in which such Person directly or indirectly owns or controls the securities or other
ownership interests having ordinary voting power to elect a majority of the board of directors, or
appoint managers or other persons performing similar functions.

     “Trademark License” means any agreement, whether written or oral, providing for the grant by
or to FCMC of any right to use any Trademark.

     “Trademarks” means (a) all trademarks, trade names, corporate names, company names, business
names, fictitious business names, trade styles, service marks, logos and other source or business
identifiers, and, in each case, all goodwill associated therewith, whether now existing or
hereafter adopted or acquired, all registrations and recordings thereof and all applications in
connection therewith, in each case whether in the United States Patent and Trademark Office or in
any similar office or agency of the United States, any State thereof or any other country or any
political subdivision thereof, or otherwise, and all common-law rights related thereto, and (b) the
right to obtain all renewals thereof.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the State of Ohio;
provided, however, that, in the event that, by reason of mandatory provisions of Law, any of the
attachment, perfection or priority of the Administrative Agent’s security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the
State of Ohio, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or
priority and for purposes of definitions related to such provisions.

     “Vehicles” means all vehicles covered by a certificate of title law of any state.

     Section 1.2 Certain Other Terms

     (a) In this Agreement, in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to” and “until” each mean
“to but excluding” and the word “through” means “to and including.”

     (b) The terms “herein,” “hereof,” “hereto” and “hereunder” and similar terms refer to this
Agreement as a whole and not to any particular Article, Section, subsection or clause in this
Agreement.

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     (c) References herein to a Schedule, Article, Section, subsection or clause refer to the
appropriate Schedule to, or Article, Section, subsection or clause in this Agreement.

     (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

     (e) Any reference in this Agreement to a Loan Document shall include all appendices, exhibits
and schedules thereto, and, unless specifically stated otherwise all amendments, restatements,
supplements or other modifications thereto, and as the same may be in effect at any time such
reference becomes operative.

     (f) Each of the terms “Lender”, “Lenders”, “Secured Creditor”, and “Secured Creditors”
includes its or their respective successors or assigns.

     (g) References in this Agreement to any statute shall be to such statute as amended or
modified and in effect from time to time.

ARTICLE II Grant of Security Interest

     Section 2.1 Collateral

     For the purposes of this Agreement, all of the following property now owned or at any time
hereafter acquired by FCMC or in which FCMC now has or at any time in the future may acquire any
right, title or interests is collectively referred to as the “Collateral”:

all Accounts and all rights to payment, whether or not earned by performance, including,
without limitation, for property that has been or is to be sold, leased, licensed, assigned
or otherwise disposed of, for services rendered or to be rendered, to a government, state,
or governmental unit, or for or in connection with any federal, state or local governmental
relief, bailout or other similar program or plan, whether or not arising under statute, rule
or regulation; all Chattel Paper; all Deposit Accounts; any amounts or refunds received from
or in connection with any taxing authority; all Documents; all Equipment; all General
Intangibles (including, without limitation, all contractual rights arising under any
purchase agreement or assignments relating to mortgage loans); all Instruments; all
Inventory; all Investment Property; all Letter-of-Credit Rights; all Vehicles; the
Commercial Tort Claims described on Schedule 7 and on any supplement thereto received by the
Administrative Agent; all books and records pertaining to the other property described in
this Section 2.1; all other goods and personal property of FCMC, whether tangible or
intangible and wherever located; all property of FCMC held by any Lender, including all
property of every description, in the possession or custody of or in transit to the
Administrative Agent for any purpose, including safekeeping, collection or pledge, for the
account of FCMC or as to which FCMC may have any right or power; and to the extent not
otherwise included, all Proceeds.

     Section 2.2 Grant of Security Interest in Collateral

     FCMC, as collateral security for the full, prompt and complete payment and performance when
due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations, hereby
collaterally assigns, mortgages, pledges and hypothecates to Administrative Agent (for the benefit
of the Secured Creditors), and grants (whether under the UCC or otherwise) to Administrative Agent
(for the benefit of the Secured Creditors), a lien on and security interest in, and a collateral
assignment of, all of its right, title and interest in, to and under the Collateral of FCMC;
provided, however, that the foregoing grant of security interest shall not include a security
interest in any Excluded Property; provided, further, that, if and when any property shall cease

8

 

to be Excluded Property, the Administrative Agent shall have, and at all times after the date
hereof deemed to have had, a security interest in such property.

     Section 2.3 Cash Collateral Accounts

     The Administrative Agent may, in its discretion, establish one or more Cash Collateral
Accounts with Huntington, one or more other Deposit Account Banks and one or more Approved
Securities Intermediaries as it in its sole discretion shall determine. Each such account shall be
in the name of the Administrative Agent (as Agent for the benefit of the Secured Creditors) (but
may also have words referring to each FCMC and such account’s purpose). FCMC agrees that each such
Cash Collateral Account shall be under the sole dominion and control of the Administrative Agent,
as Agent for the benefit of the Secured Creditors. The Administrative Agent shall be the sole
Entitlement Holder with respect to each Securities Account constituting a Cash Collateral Account
and the only Persons authorized to give Entitlement Orders with respect thereto. Neither FCMC nor
any other Person claiming on behalf of FCMC shall have any right to demand payment of any funds
held in any Cash Collateral Account at any time prior to the termination of all outstanding letters
of credit and the indefeasible payment in full of all Secured Obligations. During the continuance
of an Event of Default, the Administrative Agent shall apply all funds on deposit in any Cash
Collateral Account in accordance with the terms and conditions of the Credit Agreement and
otherwise as the Administrative Agent may elect.

ARTICLE III Representations and Warranties

     To induce the Administrative Agent and Lenders to enter into or maintain the Credit Documents,
FCMC hereby represents and warrants each of the following to each Secured Creditor:

     Section 3.1 Title; No Other Liens

     Except for the Lien granted to the Administrative Agent pursuant to this Agreement and the
other Permitted Liens, FCMC is the record and beneficial owner of the Pledged Collateral pledged by
it hereunder constituting Instruments or certificated securities, is the Entitlement Holder of all
such Pledged Collateral constituting Investment Property held in a Securities Account and has
rights in or the power to transfer each other item of Collateral in which a Lien is granted by it
hereunder, free and clear of any Lien.

     Section 3.2 Perfection and Priority

     The security interest granted pursuant to this Agreement shall constitute a valid and
continuing perfected security interest in favor of the Administrative Agent in the Collateral for
which perfection is governed by the UCC or filing with the United States Copyright Office upon (i)
the completion of the filings and other actions specified on Schedule 3 which, in the case of all
filings and other documents referred to on such schedule, have been delivered to the Administrative
Agent in completed and duly executed form), (ii) the delivery to the Administrative Agent of all
Collateral consisting of Instruments and certificated securities, in each case properly endorsed
for transfer to the Administrative Agent or in blank, (iii) the execution of Control Account
Agreements with respect to Investment Property not in certificated form, (iv) the execution of
Deposit Account Control Agreements with respect to all Deposit Accounts and (v) all appropriate
filings having been made with the United States Copyright Office. Such security interest shall be
prior to all other Liens on the Collateral except for Permitted Liens having priority over the
Administrative Agent’s Lien by operation of law or otherwise, as permitted under this Agreement or
any other Loan Documents.

     Section 3.3 Name; Jurisdiction of Organization; Chief Executive Office

     Except as set forth on Schedule 1, within the five-year period preceding the date hereof, FCMC
has not had, or operated in any jurisdiction, under any trade name, fictitious name or other name
other than its legal

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name, and FCMC’s jurisdiction of organization, organizational identification number, if any, and
the location of FCMC’s chief executive office or sole place of business is specified on Schedule 1.

     Section 3.4 Inventory and Equipment

     FCMC’s Inventory and Equipment (other than mobile goods and Inventory or Equipment in transit)
are kept at the locations listed on Schedule 4 as supplemented pursuant to the terms hereof.

     Section 3.5 Pledged Collateral

     (a) The Pledged Stock, Pledged Partnership Interests, Pledged Trust Certificates, and Pledged
LLC Interests pledged hereunder by FCMC are listed on Schedule 2 and constitute that percentage of
the issued and outstanding equity of all classes of each issuer thereof as set forth on Schedule 2.

     (b) All of the Pledged Stock, Pledged Partnership Interests, Pledged Trust Certificates, and
Pledged LLC Interests have been duly and validly issued and are fully paid and nonassessable.

     (c) Each of the Pledged Notes constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, and general equitable principles (whether
considered in a proceeding in equity or at law).

     (d) Except for Pledged Collateral and Additional Pledged Collateral not required to be
delivered to the Administrative Agent pursuant to Section 4.7, all Pledged Collateral and, if
applicable, any Additional Pledged Collateral, consisting of certificated securities or Instruments
has been delivered to the Administrative Agent in accordance with Section 4.4(a).

     (e) All Pledged Collateral held by a Securities Intermediary in a Securities Account is in a
Control Account.

     (f) Other than the Pledged Partnership Interests and the Pledged LLC Interests that constitute
General Intangibles, there is no Pledged Collateral other than (i) that represented by certificated
securities or Instruments in the possession of the Administrative Agent, or (ii) that consisting of
Financial Assets currently held in a Control Account.

     Section 3.6 Accounts

     No amount in excess of $10,000 payable to FCMC under or in connection with any Account is
evidenced by any Instrument or Chattel Paper that has not been delivered to the Administrative
Agent, properly endorsed for transfer, to the extent delivery is required by Section 4.4.

     Section 3.7 Intellectual Property

     (a) Schedule 5 lists all Material Intellectual Property of FCMC, separately identifying that
owned by FCMC and that licensed to FCMC. The Material Intellectual Property set forth on Schedule
5 for FCMC constitutes all of the intellectual property rights necessary to conduct its business.

     (b) All Material Intellectual Property owned by FCMC is valid, subsisting, unexpired and
enforceable, has not been adjudged invalid and has not been abandoned and the use thereof in the
business of FCMC does not infringe the intellectual property rights of any other Person.

     (c) Except as set forth in Schedule 5, none of the Material Intellectual Property owned by
FCMC is the subject of any licensing or franchise agreement pursuant to which FCMC is the licensor
or franchisor.

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     (d) No holding, decision or judgment has been rendered by any Governmental Authority that
would limit, cancel or question the validity of, or FCMC’s rights in, any Material Intellectual
Property.

     (e) Except as set forth in Schedule 5, no action or proceeding seeking to limit, cancel or
question the validity of any Material Intellectual Property owned by FCMC or FCMC’s ownership
interest therein is pending or, to the knowledge of FCMC, threatened. There are no claims,
judgments or settlements to be paid by FCMC relating to the Material Intellectual Property.

     Section 3.8 Deposit Accounts; Securities Accounts

     The only Deposit Accounts or Securities Accounts maintained by FCMC are those listed on
Schedule 6 as supplemented pursuant to the terms hereof, which sets forth such information
separately for FCMC.

     Section 3.9 Commercial Tort Claims

     The only existing or potential Commercial Tort Claims pending or threatened in writing of FCMC
existing (regardless of whether the amount, defendant or other material facts can be determined and
regardless of whether such Commercial Tort Claim has been asserted, threatened or has otherwise
been made known to the obligee thereof or whether litigation has been commenced for such claims)
are those listed on Schedule 7 as supplemented pursuant to the terms hereof, which sets forth such
information separately for FCMC.

ARTICLE IV Covenants

     FCMC agrees with Secured Creditors to the following, as long as any Secured Obligation remains
outstanding or any Secured Creditor has any obligation to extend credit to FCMC under any Loan
Document, unless the Administrative Agent otherwise consents in writing:

     Section 4.1 Generally

     FCMC shall (a) except for the security interest created by this Agreement, not create or
suffer to exist any Lien upon or with respect to any Collateral, except Permitted Liens, (b) not
use or permit any Collateral to be used unlawfully or in violation of any provision of this
Agreement, any other Loan Document, any applicable Law or any policy of insurance covering the
Collateral, (c) not sell, transfer or assign (by operation of law or otherwise) any Collateral
except as permitted under the Loan Documents or otherwise within the ordinary course of its
business, (d) not enter into any agreement or undertaking restricting the right or ability of FCMC
or the Administrative Agent to sell, assign or transfer any Collateral except as permitted under
the Loan Documents and (e) promptly notify the Administrative Agent of its entry into any agreement
or assumption of undertaking that restricts the ability to sell, assign or transfer any Collateral.

     Section 4.2 Maintenance of Perfected Security Interest; Further Documentation

     (a) FCMC shall maintain the security interest created by this Agreement as a perfected
security interest having at least the priority described in Section 3.2 and shall defend such
security interest against the claims and demands of all Persons.

     (b) FCMC shall furnish to the Administrative Agent from time to time statements and schedules
further identifying and describing the Collateral and such other reports in connection with the
Collateral as the Administrative Agent may reasonably request, all in reasonable detail.

     (c) At any time and from time to time, upon the written request of the Administrative Agent,
and at the sole expense of FCMC, FCMC shall promptly and duly execute and deliver, and have
recorded, such further instruments, agreements, assignments, or other documents and take such
further action as the Administrative Agent may reasonably request for the purpose of obtaining or
preserving the full benefits of this

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Agreement and of the rights and powers herein granted, including the filing of any financing
or continuation statement under the UCC (or other similar laws) in effect in any jurisdiction with
respect to the security interest created hereby and the execution and delivery of Deposit Account
Control Agreements and Control Account Agreements.

     Section 4.3 Changes in Locations, Name, Etc.

     (a) Except upon 15 days’ prior written notice to the Administrative Agent and delivery to the
Administrative Agent of (i) all additional documents reasonably requested by the Administrative
Agent to maintain the validity, perfection and priority of the security interests provided for
herein and (ii) if applicable, a written supplement to Schedule 4 showing any additional location
at which Inventory or Equipment shall be kept, FCMC shall not do any of the following:

     (i) permit any Inventory or Equipment to be kept at a location other than those listed
on Schedule 4, except for Inventory or Equipment in transit to and from such locations;

     (ii) change its jurisdiction of organization or the location of its chief executive
office or sole place of business from that referred to in Section 3.3; or

     (iii) change its name, identity or corporate structure to such an extent that any
financing statement filed in connection with this Agreement would become seriously
misleading.

     (b) FCMC shall keep and maintain at its own cost and expense satisfactory and complete records
of the Collateral, including a record of all payments received and all credits granted with respect
to the Collateral and all other dealings with the Collateral. Except to the extent any such
Vehicle is Excluded Property, if requested by the Administrative Agent, the security interest of
the Administrative Agent shall be noted on the certificate of title of each Vehicle.

     Section 4.4 Pledged Collateral

     (a) FCMC shall (i) deliver to the Administrative Agent all certificates and Instruments
representing or evidencing any Pledged Collateral (including Additional Pledged Collateral),
whether now existing or hereafter acquired, in suitable form for transfer by delivery or, as
applicable, accompanied by FCMC’s endorsement, where necessary, or duly executed instruments of
transfer or assignment in blank, all in form and substance satisfactory to the Administrative
Agent, together, in respect of any Additional Pledged Collateral, with a Pledge Amendment, duly
executed by FCMC, in substantially form substance acceptable to the Administrative Agent or such
other documentation acceptable to the Administrative Agent and (ii) maintain all other Pledged
Collateral constituting Investment Property in a Control Account. FCMC authorizes the
Administrative Agent to attach each Pledge Amendment to this Agreement. From and after the
occurrence and during the continuance of an Event of Default, the Administrative Agent shall have
the right, at any time in its discretion and without notice to FCMC, to transfer to or to register
in its name or in the name of its nominees any Pledged Collateral. The Administrative Agent shall
have the right at any time to exchange any certificate or instrument representing or evidencing any
Pledged Collateral for certificates or instruments of smaller or larger denominations.

     (b) Except as provided in Article V, FCMC shall be entitled to receive all cash dividends paid
in respect of the Pledged Collateral (other than liquidating or similar dividends) with respect to
the Pledged Collateral. Any sums paid upon or in respect of any Pledged Collateral upon the
liquidation or dissolution of any issuer of any Pledged Collateral, any distribution of capital
made on or in respect of any Pledged Collateral or any property distributed upon or with respect to
any Pledged Collateral pursuant to the recapitalization or reclassification of the capital of any
issuer of Pledged Collateral or pursuant to the reorganization thereof shall,

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unless otherwise subject to a perfected security interest in favor of the Administrative
Agent, be delivered to the Administrative Agent to be held by it hereunder as additional collateral
security for the Secured Obligations. If any sum of money or property so paid or distributed in
respect of any Pledged Collateral shall be received by FCMC, FCMC shall, until such money or
property is paid or delivered to the Administrative Agent, hold such money or property in trust for
the Administrative Agent, segregated from other funds of FCMC, as additional security for the
Secured Obligations.

     (c) Except as provided in Article V, FCMC shall be entitled to exercise all voting, consent
and corporate rights with respect to the Pledged Collateral; provided, however, that no vote shall
be cast, consent given or right exercised or other action taken by FCMC that would impair the
Collateral, be inconsistent with or result in any violation of any provision of this Agreement or
any other Loan Document or, without prior notice to the Administrative Agent, enable or permit any
issuer of Pledged Collateral to issue any stock or other equity securities of any nature or to
issue any other securities convertible into or granting the right to purchase or exchange for any
stock or other equity securities of any nature of any issuer of Pledged Collateral.

     (d) FCMC shall not grant control over any Investment Property to any Person other than the
Administrative Agent.

     (e) In the case of FCMC as an issuer of Pledged Collateral, FCMC agrees to be bound by the
terms of this Agreement relating to the Pledged Collateral issued by it and shall comply with such
terms insofar as such terms are applicable to it. In the case of FCMC as a partner in a
Partnership, FCMC hereby consents to the extent required by the applicable Partnership Agreement to
the pledge by each other applicable Person, pursuant to the terms hereof, of the Pledged
Partnership Interests in such Partnership and to the transfer of such Pledged Partnership Interests
to the Administrative Agent or its nominee and to the substitution of the Administrative Agent or
its nominee as a substituted partner in such Partnership with all the rights, powers and duties of
a general partner or a limited partner, as the case may be. In the case of FCMC as a member of an
LLC, FCMC hereby consents to the extent required by the applicable LLC Agreement to the pledge by
any other applicable Person, pursuant to the terms hereof, of the Pledged LLC Interests in such LLC
and to the transfer of such Pledged LLC Interests to the Administrative Agent or its nominee and to
the substitution of the Administrative Agent or its nominee as a substituted member of the LLC with
all the rights, powers and duties of a member of the LLC in question.

     (f) FCMC shall not agree to any amendment of an LLC Agreement or Partnership Agreement that in
any way adversely affects the perfection of the security interest of the Administrative Agent in
the Pledged Partnership Interests or Pledged LLC Interests pledged by FCMC hereunder, including any
amendment electing to treat the membership interest or partnership interest of FCMC as a security
under Article 8 of the UCC.

     Section 4.5 Control Accounts; Approved Deposit Accounts

     (a) FCMC shall (i) deposit in an Approved Deposit Account all cash received by FCMC, (ii) not
establish or maintain any Securities Account that is not a Control Account and (iii) not establish
or maintain any Deposit Account other than with a Deposit Account Bank, the Administrative Agent or
an affiliate of the Administrative Agent.

     (b) FCMC shall instruct each Account Debtor or other Person obligated to make a payment to
FCMC under a General Intangible to make payment, or to continue to make payment, as the case may
be, to an Approved Deposit Account and shall deposit in an Approved Deposit Account all Proceeds of
such Accounts and General Intangibles received by FCMC from any other Person immediately upon
receipt.

     (c) In the event (i) FCMC or any Approved Securities Intermediary or Deposit Account Bank
shall, after the date hereof, terminate an agreement with respect to the maintenance of a Control
Account or Approved Deposit Account for any reason, (ii) the Administrative Agent shall demand such
termination as a result of the failure of an Approved Securities Intermediary or Deposit Account
Bank to comply with the terms of the

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applicable Control Account Agreement or Deposit Account Control Agreement, or (iii) the
Administrative Agent determines in its sole good faith discretion that the financial condition of
an Approved Securities Intermediary or Deposit Account Bank, as the case may be, has materially
deteriorated, FCMC agrees to notify all of its obligors that were making payments to such
terminated Control Account or Approved Deposit Account, as the case may be, to make all future
payments to another Control Account or Approved Deposit Account, as the case may be.

     (d) The Administrative Agent agrees that it shall not provide any instruction with respect to
any Approved Deposit Account or Control Account unless an Event of Default has occurred and is
continuing.

     Section 4.6 Accounts

     (a) FCMC shall not, other than in the ordinary course of business consistent with its past
practice, (i) grant any extension of the time of payment of any Account, (ii) compromise or settle
any Account for less than the full amount thereof, (iii) release, wholly or partially, any Person
liable for the payment of any Account, (iv) allow any credit or discount on any Account or (v)
amend, supplement or modify any Account in any manner that could adversely affect the value
thereof.

     (b) The Administrative Agent shall have the right to make test verifications of the Accounts
in any manner and through any medium that the Administrative Agent reasonably considers advisable,
and FCMC shall furnish all such assistance and information as the Administrative Agent may
reasonably require in connection therewith. At any time and from time to time, upon the
Administrative Agent’s request and at the expense of FCMC, FCMC shall cause independent public
accountants or others satisfactory to the Administrative Agent to furnish to the Administrative
Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the
Accounts.

     Section 4.7 Delivery of Instruments and Chattel Paper

     If any amount in excess of $10,000 payable under or in connection with any Collateral owned by
FCMC shall be or become evidenced by an Instrument or Chattel Paper, FCMC shall immediately deliver
such Instrument or Chattel Paper to the Administrative Agent, duly indorsed in a manner
satisfactory to the Administrative Agent, or, if consented to by the Administrative Agent, shall
mark all such Instruments and Chattel Paper with the following legend: “This writing and the
obligations evidenced or secured hereby are subject to the security interest of The Huntington
National Bank, as Agent.”

     Section 4.8 Intellectual Property

     (a) FCMC (either itself or through licensees) shall (i) continue to use each Trademark that is
Material Intellectual Property in order to maintain such Trademark in full force and effect with
respect to each class of goods for which such Trademark is currently used, free from any claim of
abandonment for non-use, (ii) maintain as in the past the quality of products and services offered
under such Trademark, (iii) use such Trademark with the appropriate notice of registration and all
other notices and legends required by applicable Law, (iv) not adopt or use any mark that is
confusingly similar or a colorable imitation of such Trademark unless the Administrative Agent
shall obtain a perfected security interest in such mark pursuant to this Agreement and (v) not (and
not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act
whereby such Trademark may become invalidated or impaired in any way.

     (b) FCMC (either itself or through licensees) shall not do any act, or omit to do any act,
whereby any Patent that is Material Intellectual Property may become forfeited, abandoned or
dedicated to the public.

     (c) FCMC (either itself or through licensees) (i) shall not (and shall not permit any licensee
or sublicensee thereof to) do any act or omit to do any act whereby any portion of the Copyrights
that is Material Intellectual Property may become invalidated or otherwise impaired and (ii) shall
not (either itself or through

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licensees) do any act whereby any portion of the Copyrights that is Material Intellectual
Property may fall into the public domain.

     (d) FCMC (either itself or through licensees) shall not do any act, or omit to do any act,
whereby any trade secret that is Material Intellectual Property may become publicly available or
otherwise unprotectable.

     (e) FCMC (either itself or through licensees) shall not do any act that knowingly uses any
Material Intellectual Property to infringe the intellectual property rights of any other Person.

     (f) FCMC shall notify the Administrative Agent immediately if it knows, or has reason to know,
that any application or registration relating to any Material Intellectual Property may become
forfeited, abandoned or dedicated to the public, or of any adverse determination or development
(including the institution of, or any such determination or development in, any proceeding in the
United States Patent and Trademark Office, the United States Copyright Office or any court or
tribunal in any country) regarding FCMC’s ownership of, right to use, interest in, or the validity
of, any Material Intellectual Property or FCMC’s right to register the same or to own and maintain
the same.

     (g) Whenever FCMC, either by itself or through any agent, licensee or designee, shall file an
application for the registration of any Intellectual Property with the United States Patent and
Trademark Office, the United States Copyright Office or any similar office or agency within or
outside the United States, FCMC shall report such filing to the Administrative Agent within five
Business Days after the last day of the fiscal quarter in which such filing occurs. Upon request
of the Administrative Agent, FCMC shall execute and deliver, and have recorded, all agreements,
instruments, documents and papers as the Administrative Agent may request to evidence the
Administrative Agent’s security interest in any Copyright, Patent or Trademark and the goodwill and
general intangibles of FCMC relating thereto or represented thereby.

     (h) FCMC shall take all reasonable actions necessary or requested by the Administrative Agent,
including in any proceeding before the United States Patent and Trademark Office, the United States
Copyright Office or any similar office or agency, to maintain and pursue each application (and to
obtain the relevant registration) and to maintain each registration of any Copyright, Trademark or
Patent that is Material Intellectual Property, including filing of applications for renewal,
affidavits of use, affidavits of incontestability and opposition and interference and cancellation
proceedings.

     (i) In the event that any Material Intellectual Property is infringed upon or misappropriated
or diluted by a third party, FCMC shall notify the Administrative Agent promptly after FCMC learns
thereof. FCMC shall take appropriate action in response to such infringement, misappropriation of
dilution, including promptly bringing suit for infringement, misappropriation or dilution and to
recover all damages for such infringement, misappropriation of dilution, and shall take such other
actions as may be appropriate in its reasonable judgment under the circumstances to protect such
Material Intellectual Property.

     (j) Unless otherwise agreed to by the Administrative Agent, FCMC shall execute and deliver to
the Administrative Agent for filing in (i) the United States Copyright Office a short-form
copyright security agreement in form and substance acceptable to the Administrative Agent, (ii) in
the United States Patent and Trademark Office a short-form patent security agreement in form and
substance acceptable to the Administrative Agent and (iii) the United States Patent and Trademark
Office a short-form trademark security agreement in form and substance acceptable to the
Administrative Agent.

     Section 4.9 Vehicles

     Upon the request of the Administrative Agent, on or before the date of this Agreement and
within the earlier of (a) fifteen (15) days after the date of acquisition of any Vehicle acquired
after the date hereof or (b) ten (10) days after receipt of the Administrative Agent’s request,
FCMC shall execute a short-form motor vehicle security agreement, in form and substance acceptable
to the Administrative Agent, specifically describing each

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Vehicle owned by FCMC. In addition, upon the request of the Administrative Agent, within 30
days after the date of such request and, with respect to any Vehicle acquired by FCMC subsequent to
the date of any such request, within 30 days after the date of acquisition thereof, FCMC shall (i)
file all applications for certificates of title or ownership indicating the Administrative Agent’s
first priority security interest in the Vehicle covered by such certificate and any other necessary
documentation, in each office in each jurisdiction that the Administrative Agent shall deem
advisable to perfect its security interests in the Vehicles.

     Section 4.10 Notice of Commercial Tort Claims

     FCMC agrees that, if it shall acquire any interest in any Commercial Tort Claim (whether from
another Person or because such Commercial Tort Claim shall have come into existence), (i) FCMC
shall, immediately upon such acquisition, deliver to the Administrative Agent, in each case in form
and substance satisfactory to the Administrative Agent, a notice of the existence and nature of
such Commercial Tort Claim and deliver a supplement to Schedule 7 containing a specific description
of such Commercial Tort Claim, certified by FCMC as true, correct and complete, (ii) the provision
of Section 2.1 shall apply to such Commercial Tort Claim (and FCMC authorizes the Administrative
Agent to supplement such schedule with a description of such Commercial Tort Claim if FCMC fails to
deliver the supplement described in clause (i)) and (iii) FCMC shall execute and deliver to the
Administrative Agent, in each case in form and substance satisfactory to the Administrative Agent,
any certificate, agreement and other document, and take all other action, deemed by the
Administrative Agent to be reasonably necessary or appropriate for the Administrative Agent to
obtain a first-priority, perfected security interest in all such Commercial Tort Claims. Any
supplement to Schedule 7 delivered pursuant to this Section 4.10 shall become part of Schedule 7
for all purposes hereunder other than, absent a written consent of the Administrative Agent, for
purpose of the representations and warranties set forth in Section 3.9.

ARTICLE V Remedial Provisions

     Section 5.1 Code and Other Remedies

     During the continuance of an Event of Default, the Administrative Agent may exercise, in
addition to all other rights and remedies granted to the Administrative Agent in this Agreement and
in any other instrument or agreement securing, evidencing or relating to the Secured Obligations,
all rights and remedies of a secured party under the UCC or any other applicable Law. Without
limiting the generality of the foregoing, the Administrative Agent, without demand of performance
or other demand, presentment, protest, advertisement or notice of any kind (except any notice
required by Law referred to below) to or upon FCMC or any other Person (all and each of which
demands, defenses, advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon any Collateral, and may forthwith sell,
lease, assign, give option or options to purchase, or otherwise dispose of and deliver any
Collateral (or contract to do any of the foregoing), in one or more parcels at public or private
sale or sales, at any exchange, broker’s board or office of the Administrative Agent or elsewhere
upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk. The Administrative
Agent shall have the right upon any such public sale or sales, and, to the extent permitted by Law,
upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold,
free of any right or equity of redemption in FCMC, which right or equity is hereby waived and
released. FCMC further agrees, at the Administrative Agent’s request, to assemble the Collateral
and make it available to the Administrative Agent at places that the Administrative Agent shall
reasonably select, whether at FCMC’s premises or elsewhere. The Administrative Agent shall apply
the net proceeds of any action taken by it pursuant to this Section 5.1, after deducting all
reasonable costs and expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any Collateral or in any way relating to the Collateral or the rights of the
Administrative Agent hereunder, including reasonable attorneys’ fees and disbursements, to the
payment in whole or in part of the Secured Obligations, in such order as the Loan Documents shall
prescribe (or if no such order is prescribed therein, then in such order as the Administrative
Agent may elect), and only after such application and after the payment by the Administrative Agent
of any other amount required by any provision of Law, need the Administrative Agent account for the
surplus, if any, to FCMC. To the extent

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permitted by applicable Law, FCMC waives all claims, damages and demands it may acquire
against the Administrative Agent arising out of the exercise by them of any rights hereunder. If
any notice of a proposed sale or other disposition of Collateral shall be required by Law, such
notice shall be deemed reasonable and proper if given at least 10 days before such sale or other
disposition.

     Section 5.2 Accounts and Payments in Respect of General Intangibles

     (a) If required by the Administrative Agent in writing at any time during the continuance of
an Event of Default, FCMC shall cause all payment of Accounts or payment in respect of General
Intangibles to be directed to a Cash Collateral Account, and if collected by FCMC, each such
payment shall be forthwith deposited by FCMC in the exact form received, duly indorsed by FCMC to
the Administrative Agent if required, in a Cash Collateral Account. Until so turned over, each
such payment shall be held by FCMC in trust for the Administrative Agent, segregated from other
funds of FCMC. Each such deposit of Proceeds of Accounts and payments in respect of General
Intangibles shall be accompanied by a report identifying in reasonable detail the nature and source
of the payments included in the deposit.

     (b) At the Administrative Agent’s request in writing, during the continuance of an Event of
Default, FCMC shall deliver to the Administrative Agent all original and other documents
evidencing, and relating to, the agreements and transactions that gave rise to the Accounts or
payments in respect of General Intangibles, including all original orders, invoices and shipping
receipts.

     (c) The Administrative Agent may, without notice, at any time during the continuance of an
Event of Default, limit or terminate the authority of FCMC to collect its Accounts or amounts due
under General Intangibles or any thereof.

     (d) The Administrative Agent in its own name or in the name of others may at any time during
the continuance of an Event of Default communicate with Account Debtors to verify with them to the
Administrative Agent’s satisfaction the existence, amount and terms of any Account or amounts due
under any General Intangible.

     (e) Upon the request of the Administrative Agent in writing at any time after the occurrence
of an Event of Default, FCMC shall notify Account Debtors that the Accounts or General Intangibles
have been collaterally assigned to the Administrative Agent and that payments in respect thereof
shall be made directly to the Administrative Agent or to a Cash Collateral Account. In addition,
the Administrative Agent may at any time during the continuance of an Event of Default enforce
FCMC’s rights against such Account Debtors and obligors of General Intangibles.

     (f) Anything herein to the contrary notwithstanding, FCMC shall remain liable under each of
the Accounts and payments in respect of General Intangibles to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in accordance with
the terms of any agreement giving rise thereto. The Administrative Agent shall not have any
obligation or liability under any agreement giving rise to an Account or a payment in respect of a
General Intangible by reason of or arising out of this Agreement or the receipt by the
Administrative Agent of any payment relating thereto, nor shall the Administrative Agent be
obligated in any manner to perform any obligation of FCMC under or pursuant to any agreement giving
rise to an Account or a payment in respect of a General Intangible, to make any payment, to make
any inquiry as to the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any claim, to take any
action to enforce any performance or to collect the payment of any amounts that may have been
assigned to it or to which it may be entitled at any time or times.

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     Section 5.3 Pledged Collateral

     (a) During the continuance of an Event of Default, upon notice by the Administrative Agent to
FCMC, (i) the Administrative Agent shall have the right to receive any Proceeds of the Pledged
Collateral and make application thereof to the Secured Obligations in the order set forth in the
Loan Documents (or if no such order is set forth therein, then in such order as the Administrative
Agent may elect) and (ii) the Administrative Agent or its nominee may exercise (A) any voting,
consent, corporate and other right pertaining to the Pledged Collateral at any meeting of
shareholders, partners or members, as the case may be, of the relevant issuer or issuers of Pledged
Collateral or otherwise and (B) any right of conversion, exchange and subscription and any other
right, privilege or option pertaining to the Pledged Collateral as if it were the absolute owner
thereof (including the right to exchange at its discretion any of the Pledged Collateral upon the
merger, consolidation, reorganization, recapitalization or other fundamental change in the
corporate structure of any issuer of Pledged Collateral, the right to deposit and deliver any
Pledged Collateral with any committee, depositary, transfer agent, registrar or other designated
agency upon such terms and conditions as the Administrative Agent may determine), all without
liability except to account for property actually received by it; provided, however, that the
Administrative Agent shall have no duty to FCMC to exercise any such right, privilege or option and
shall not be responsible for any failure to do so or delay in so doing.

     (b) In order to permit the Administrative Agent to exercise the voting and other consensual
rights that it may be entitled to exercise pursuant hereto and to receive all dividends and other
distributions that it may be entitled to receive hereunder, (i) FCMC shall, promptly execute and
deliver (or cause to be executed and delivered) to the Administrative Agent all such proxies,
dividend payment orders and other instruments as the Administrative Agent may from time to time
reasonably request and (ii) without limiting the effect of clause (i) above, FCMC hereby grants to
the Administrative Agent an irrevocable proxy to vote all or any part of the Pledged Collateral and
to exercise all other rights, powers, privileges and remedies to which a holder of the Pledged
Collateral would be entitled (including giving or withholding written consents of shareholders,
partners or members, as the case may be, calling special meetings of shareholders, partners or
members, as the case may be, and voting at such meetings), which proxy shall be effective,
automatically and without the necessity of any action (including any transfer of any Pledged
Collateral on the record books of the issuer thereof) by any other Person (including the issuer of
such Pledged Collateral or any officer or agent thereof) during the continuance of an Event of
Default and which proxy shall only terminate upon the payment in full of the Secured Obligations.

     (c) FCMC hereby expressly authorizes and instructs each issuer of any Pledged Collateral
pledged hereunder by FCMC to (i) comply with any instruction received by it from the Administrative
Agent in writing that (A) states that an Event of Default has occurred and is continuing and (B) is
otherwise in accordance with the terms of this Agreement, without any other or further instructions
from FCMC, and FCMC agrees that such issuer shall be fully protected in so complying and (ii)
unless otherwise expressly permitted hereby, pay any dividend or other payment with respect to the
Pledged Collateral directly to the Administrative Agent.

     Section 5.4 Proceeds to be Turned Over To the Administrative Agent

     Except as set forth in the Credit Agreement, all Proceeds received by the Administrative Agent
hereunder during the continuance of an Event of Default shall be held by the Administrative Agent
in a Cash Collateral Account. All Proceeds while held by the Administrative Agent in a Cash
Collateral Account (or by FCMC in trust for the Administrative Agent) shall continue to be held as
collateral security for the Secured Obligations and shall not constitute payment thereof until
applied to the payment of the Secured Obligations.

     Section 5.5 Sale of Pledged Collateral

     (a) FCMC recognizes that the Administrative Agent may be unable to effect a public sale of any
Pledged Collateral by reason of certain prohibitions contained in the Securities Act and applicable
state securities laws or otherwise or may determine that a public sale is impracticable or not
commercially reasonable and, accordingly, may resort to one or more private sales thereof to a
restricted group of purchasers that shall be

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obliged to agree, among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof. FCMC acknowledges and agrees
that any such private sale may result in prices and other terms less favorable than if such sale
were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall
be deemed to have been made in a commercially reasonable manner. The Administrative Agent shall be
under no obligation to delay a sale of any Pledged Collateral for the period of time necessary to
permit the issuer thereof to register such securities for public sale under the Securities Act, or
under applicable state securities laws, even if such issuer would agree to do so.

     (b) FCMC agrees to use its best efforts to do or cause to be done all such other acts as may
be necessary to make such sale or sales of all or any portion of the Pledged Collateral pursuant to
this Section 5.5 valid and binding and in compliance with all other applicable Law. FCMC further
agrees that a breach of any covenant contained in this Section 5.5 will cause irreparable injury to
the Administrative Agent, that the Administrative Agent has no adequate remedy at law in respect of
such breach and, as a consequence, that each and every covenant contained in this Section 5.5 shall
be specifically enforceable against FCMC, and FCMC hereby waives and agrees not to assert any
defense against an action for specific performance of such covenants except for a defense that no
Event of Default has occurred under any Loan Document.

     Section 5.6 Deficiency

     FCMC shall remain liable for any deficiency if the proceeds of any sale or other disposition
of the Collateral are insufficient to pay the Secured Obligations and the reasonable fees and
disbursements of any attorney employed by the Administrative Agent to collect such deficiency.

ARTICLE VI The Administrative Agent

     Section 6.1 The Administrative Agent’s Appointment as Attorney-in-Fact

     (a) FCMC hereby irrevocably constitutes and appoints the Administrative Agent and any officer
or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with
full irrevocable power and authority in the place and stead of FCMC and in the name of FCMC or in
its own name, for the purpose of carrying out the terms of this Agreement, to take any appropriate
action and to execute any document or instrument that may be necessary or desirable to accomplish
the purposes of this Agreement, and, without limiting the generality of the foregoing, FCMC hereby
gives the Administrative Agent the power and right, on behalf of FCMC, without notice to or assent
by FCMC, to do any of the following:

     (i) in the name of FCMC or its own name, or otherwise, take possession of and indorse
and collect any check, draft, note, acceptance or other instrument for the payment of moneys
due under any Account or General Intangible or with respect to any other Collateral and file
any claim or take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Administrative Agent for the purpose of collecting any such moneys
due under any Account or General Intangible or with respect to any other Collateral whenever
payable;

     (ii) in the case of any Intellectual Property, execute and deliver, and have recorded,
any agreement, instrument, document or paper as the Administrative Agent may request to
evidence the Administrative Agent’s security interest in such Intellectual Property and the
goodwill and General Intangibles of FCMC relating thereto or represented thereby;

     (iii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repair or pay or discharge any insurance called for by the terms of
this Agreement (including all or any part of the premiums therefore and the costs thereof);

     (iv) execute, in connection with any sale provided for in Section 5.1 or Section 5.5,
any endorsement, assignment or other instrument of conveyance or transfer with respect to
the Collateral; or

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     (v) (A) direct any party liable for any payment under any Collateral to make payment of
any moneys due or to become due thereunder directly to the Administrative Agent or as the
Administrative Agent shall direct, (B) ask or demand for, collect, and receive payment of
and receipt for, any moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral, (C) sign and indorse any invoice, freight or
express bill, bill of lading, storage or warehouse receipt, draft against debtors,
assignment, verification, notice and other document in connection with any Collateral, (D)
commence and prosecute any suit, action or proceeding at law or in equity in any court of
competent jurisdiction to collect any Collateral and to enforce any other right in respect
of any Collateral, (E) defend any suit, action or proceeding brought against FCMC with
respect to any Collateral, (F) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as the
Administrative Agent may deem appropriate, (G) assign any Copyright, Patent or Trademark
(along with the goodwill of the business to which any such Trademark pertains) throughout
the world for such term or terms, on such conditions, and in such manner as the
Administrative Agent shall in its sole discretion determine, including the execution and
filing of any document necessary to effectuate or record such assignment and (H) generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal with any
Collateral as fully and completely as though the Administrative Agent was the absolute owner
thereof for all purposes, and do, at the Administrative Agent’s option and FCMC’s expense,
at any time, or from time to time, all acts and things that the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral and the Administrative Agent’s
security interests therein and to effect the intent of this Agreement, all as fully and
effectively as FCMC might do.

     (b) If FCMC fails to perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

     (c) The expenses of the Administrative Agent incurred in connection with actions undertaken as
provided in this Section 6.1, together with interest thereon at a rate per annum equal to the
highest rate per annum at which interest would then be payable on any past due amount under any
Credit Document from the date of payment by the Administrative Agent to the date reimbursed by
FCMC, shall be payable by FCMC to the Administrative Agent on demand.

     (d) FCMC hereby ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.

     Section 6.2 Duty of the Administrative Agent

     The Administrative Agent’s sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession shall be to deal with it in the same manner as the
Administrative Agent deals with similar property for its own account. Neither the Administrative
Agent, nor any of its respective officers, directors, employees or agents shall be liable for
failure to demand, collect or realize upon any Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the request of FCMC or any
other Person or to take any other action whatsoever with regard to any Collateral. The powers
conferred on the Administrative Agent hereunder are solely to protect the Administrative Agent’s
interest in the Collateral and shall not impose any duty upon the Administrative Agent to exercise
any such powers. The Administrative Agent shall be accountable only for amounts that the
Administrative Agent actually receives as a result of the exercise of such powers, and neither the
Administrative Agent nor any of the Administrative Agent’s officers, directors, employees or agents
shall be responsible to FCMC for any act or failure to act hereunder, except for the Administrative
Agent’s gross negligence or willful misconduct.

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     Section 6.3 Financing Statements

     FCMC hereby authorizes the Administrative Agent to file, and if requested will deliver to the
Administrative Agent, all financing statements and other documents and take such other actions as
may from time to time be requested by the Administrative Agent in order to maintain a first
perfected security interest in and, if applicable, control of, the Collateral. Any financing
statement filed by the Administrative Agent may be filed in any filing office in any UCC
jurisdiction and may (i) indicate the Collateral (1) as all assets of FCMC or words of similar
effect, regardless of whether any particular asset comprised in the Collateral falls within the
scope of Article 9 of the UCC or such jurisdiction, or (2) by any other description which
reasonably approximates the description contained in this Agreement, and (ii) contain any other
information required by part 5 of Article 9 of the UCC for the sufficiency or filing office
acceptance of any financing statement or amendment, including (A) the type of organization and any
organization identification number issued to FCMC and (B) in the case of a financing statement
filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut,
a sufficient description of real property to which the Collateral relates. FCMC also agrees to
furnish any such information to the Administrative Agent promptly upon request. FCMC also ratifies
its authorization for the Administrative Agent to have filed in any UCC jurisdiction any initial
financing statements or amendments thereto if filed prior to the date hereof.

ARTICLE VII Miscellaneous

     Section 7.1 Amendments in Writing

     None of the terms or provisions of this Agreement may be waived, amended, restated,
supplemented or otherwise modified without the written consent of the Administrative Agent and
FCMC.

     Section 7.2 Notices

     All communications under this Agreement shall be in writing and shall be sent by facsimile or
by a nationally recognized overnight delivery service (i) if to the Administrative Agent, at the
address set forth below the Administrative Agent’s signature to this Agreement, or at such other
address as may have been furnished in writing to FCMC, by the Administrative Agent; and (ii) if to
FCMC, at the address set forth below FCMC’s signature to this Agreement, or at such other address
as may have been furnished in writing to the Administrative Agent by FCMC. Any notice so addressed
and sent by telecopier shall be deemed to be given when confirmed, and any notice sent by
nationally recognized overnight delivery service shall be deemed to be given the next day after the
same is delivered to such carrier.

     Section 7.3 No Waiver by Course of Conduct; Cumulative Remedies

     The Administrative Agent shall not by any act (except by a written instrument pursuant to
Section 7.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by the Administrative Agent of any right or remedy hereunder on any
one occasion shall not be construed as a bar to any right or remedy that the Administrative Agent
would otherwise have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by Law.

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     Section 7.4 Successors and Assigns

     This Agreement shall be binding upon the successors and assigns of FCMC and shall inure to the
benefit of the Administrative Agent and its respective successors and assigns; provided, however,
FCMC may not assign, transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the Administrative Agent.

     Section 7.5 Counterparts

     This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple counterparts and attached to a single counterpart so
that all signature pages are attached to the same document. Delivery of an executed counterpart by
telecopy shall be effective as delivery of a manually executed counterpart.

     Section 7.6 Severability

     Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     Section 7.7 Section Headings

     The Article and Section titles contained in this Agreement are, and shall be, without
substantive meaning or content of any kind whatsoever and are not part of the agreement of the
parties hereto.

     Section 7.8 Entire Agreement

     This Agreement together with the other Loan Documents represents the entire agreement of the
parties and supersedes all prior agreements and understandings relating to the subject matter
hereof.

     Section 7.9 Governing Law

     This Agreement and the rights and obligations of the parties hereto shall be governed by, and
construed and interpreted in accordance with, the law of the State of Ohio, without regard to its
conflict of law principles.

     Section 7.10 Additional Loan Parties

     FCMC hereby agrees and covenants that it will cause its Subsidiaries that are not a signatory
hereto on the date of this Agreement to execute and deliver to the Administrative Agent a Joinder
Agreement in form and substance acceptable to the Administrative Agent and shall thereafter for all
purposes be a party hereto and have the same rights, benefits and obligations as FCMC on the date
of this Agreement.

     Section 7.11 Reinstatement

     FCMC further agrees that, if any payment made by any other Person and applied to the Secured
Obligations is at any time annulled, avoided, set aside, rescinded, invalidated, declared to be
fraudulent or preferential or otherwise required to be refunded or repaid, or the proceeds of
Collateral are required to be returned by the Administrative Agent or any Lender to FCMC, its
estate, trustee, receiver or any other party, including Holding, under any bankruptcy law, state or
federal law, common law or equitable cause, then, to the extent of such payment or repayment, any
Lien or other Collateral securing such liability shall be and remain in

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full force and effect, as fully as if such payment had never been made or, if prior thereto
the Lien granted hereby or other Collateral securing such liability hereunder shall have been
released or terminated by virtue of such cancellation or surrender, such Lien or other Collateral
shall be reinstated in full force and effect, and such prior cancellation or surrender shall not
diminish, release, discharge, impair or otherwise affect any Lien or other Collateral securing the
obligations of FCMC in respect of the amount of such payment.

     Section 7.12 Agent

     In acting under or by virtue of this Agreement, Administrative Agent shall be entitled to all
the rights, authority, privileges, and immunities provided in the Credit Agreement, all of which
provisions of said Credit Agreement are incorporated by reference herein with the same force and
effect as if set forth herein in their entirety.

     Section 7.13 Amendment and Restatement

     This amendment and restatement is limited as written and is not a consent to any other
amendment, restatement or waiver, whether or not similar and, except as expressly provided herein
or in any other Loan Document, all terms and conditions of each Loan Document remain in full force
and effect unless otherwise specifically amended hereby or any other Loan Document.

[Signature Page Follows]

23

 

     In witness whereof, the undersigned has caused this Amended and Restated Security
Agreement (Licensing) to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	FRANKLIN CREDIT MANAGEM,ENT CORPORATION

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

	 	 	 	 	 
	 

	 	Address:
	 	Franklin Credit Management
	 

	 	 	 	          Corporation
	 

	 	 	 	101 Hudson St., 25th Floor
	 

	 	 	 	Jersey City, New Jersey 07302
	 

	 	 	 	Fax: 201-604-4400
	 

	 	 	 	Attention: General Counsel

ACCEPTED AND AGREED

as of the date first above written:

THE HUNTINGTON NATIONAL BANK,

as Administrative Agent

	 	 	 	 	 
	By:  /s/ Alan D. Seitz
	 	 
	 

	 

Name: Alan D. Seitz
	 	 
	 

	Title: Senior Vice President	 	 
	 
	 	 	 	 
	Address: 

	2361 Morse Road	 	 
	 

	 	NC3W67	 	 
	 

	 	Columbus, Ohio 43229	 	 
	 

	 	Attn: Special Assets	 	 
	 

	 	Fax: (614) 480-3795	 	 

Signature Page to Amended and Restated Security Agreement (Licensing)          

 

 

Schedule 1

State of Incorporation; Principal Executive Office

Name: FRANKLIN CREDIT MANAGEMENT CORPORATION

Organizational ID. No: 2152904

Jurisdiction of Organization: Delaware Corporation

Chief Executive Officer: Alexander Gordon Jardin

Address of Chief Executive Office: 101 Hudson Street, Jersey City, NJ 07302

 

 

Schedule 2

Pledged Collateral

	 	•	 	100% of issued and outstanding equity of Franklin Asset, LLC.

 

 

Schedule 3

Filings

Delaware Secretary of State

 

 

Schedule 4

Location of Inventory and Equipment

	 	•	 	101 Hudson Street, 25th and 37th Floors, Jersey City, NJ 07302

 

 

Schedule 5

Intellectual Property

 

 

Schedule 6

Deposit Accounts; Securities Accounts

 

 

Schedule 7

Commercial Tort Claims

 

 

Schedule 8

Permitted Liens

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