FIRSTCITY FINANCIAL CORP
REVOLVING CREDIT AGREEMENT
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>h28530exv10w1.htm
<DESCRIPTION>REVOLVING CREDIT AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">REVOLVING CREDIT AGREEMENT
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">among
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">FH PARTNERS, L.P.<BR>
as Borrower
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">and
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">THE FINANCIAL INSTITUTIONS LISTED<BR>
ON THE SIGNATURE PAGES HEREOF,<BR>
as Lenders,
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">with
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">BANK OF SCOTLAND,<BR>
as Lead Arranger and as Agent
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Dated as of August&nbsp;26, 2005
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>REVOLVING CREDIT AGREEMENT</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REVOLVING CREDIT AGREEMENT, dated as of August&nbsp;26, 2005, among FH PARTNERS, L.P., a Texas
limited partnership (&#147;<U>Borrower</U>&#148;), the financial institutions from time to time party hereto
(each a &#147;<U>Lender</U>&#148; and collectively, the &#147;<U>Lenders</U>&#148;) and BANK OF SCOTLAND, a federal
branch of a Scottish banking institution under applicable United States banking law, as agent for
Lenders (in such capacity, &#147;<U>Agent</U>&#148;) and as Lead Arranger.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>WITNESSETH</U>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Borrower has requested Lenders make loans from time to time to Borrower, and Lenders
are willing to make loans from time to time to Borrower, on the terms and subject to the conditions
set forth herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree
as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>DEFINITIONS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Terms used in this Agreement which are defined in Annex I hereto shall have the meanings
specified in such Annex I hereto (unless otherwise defined herein) and shall include in the
singular number the plural and in the plural number the singular.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Unless otherwise specified, each reference in this Agreement or in any other Loan Document
to a Loan Document shall mean such Loan Document as the same may from time to time be amended,
extended, restated, supplemented or otherwise modified.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All references to Sections in this Agreement or in Annex I hereto shall be deemed
references to Sections in this Agreement unless otherwise specified.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;As used in this Agreement and the other Loan Documents, the terms &#147;including&#148; and &#147;such
as&#148; are illustrative and not limitative.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>THE LOANS.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <U>The Loans.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the terms and conditions set forth herein, each Lender severally agrees, at any
time and from time to time during the Commitment Period to make one or more loans to Borrower (each
a &#147;<U>Loan</U>&#148;, and collectively the &#147;<U>Loans</U>&#148;) in an aggregate outstanding principal
amount not in excess of its Loan Commitment; <U>provided</U> that the aggregate principal amount
of any Loan or Loans shall not exceed 70% of the Net Present Value of the Related Asset Pool (or,
in the case of the Effective Date Loan, 65% of the Net Present Value of the Related Asset Pool
refinanced with the proceeds of such Loan); and <U>provided</U>, <U>further,</U> that, after
giving effect to all pending requests for Loans, Total Outstandings shall not exceed the lesser of
(x)&nbsp;the Total Loan Commitment then in effect and (y)&nbsp;Borrowing Base Availability.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Loan in the original principal amount of $19,500,000 made on the Effective Date (the
&#147;<U>Effective Date Loan</U>&#148;) shall be used by Borrower solely to repay an advance made by FC
Commercial to Borrower and to make a cash distribution to FC Commercial in an aggregate amount
equal to the amount of the Effective Date Loan, which repayment and distribution shall, in turn, be
used by FC Commercial and FirstCity to repay advances in like amount made by FirstCity and the
lenders under the Revolving Acquisition Agreement. Loans made from time to time after the
Effective Date shall be used by Borrower solely for the acquisition of one or more Eligible Asset
Pools, or if requested by Borrower in the Notice of Borrowing for such Loans, to pay any fee
(including the Utilization Fee) in respect of such Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Loans made pursuant to Section&nbsp;2.1 shall be made from each Lender <U>pro</U>
<U>rata</U>, based upon the percentage that each Lender&#146;s Loan Commitment represents of the Total
Loan Commitment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <U>Notice of Borrowing</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Whenever Borrower desires to utilize the Loan Commitments for a Loan, it shall deliver to
Agent a Borrowing Base Certificate and a Notice of Borrowing not later than 11:00&nbsp;a.m., Closing
Office Time, three Business Days prior to the date of the proposed borrowing, which Notice of
Borrowing shall, among other items, (A) (i)&nbsp;specify the Asset Pool or Asset Pools to be acquired by
Borrower; (ii)&nbsp;the date of the proposed borrowing (which shall be a Business Day (each, a
&#147;<U>Borrowing Date</U>&#148;)); (iii)&nbsp;if such Borrowing Date is a Payment Date, whether such Loans
shall constitute Base Rate Loans or Eurocurrency Loans (if not specified or if such date is not a
Payment Date, Base Rate Loans shall be deemed to have been requested); and (iv)&nbsp;the amount, if any,
of fees (including the Utilization Fee) requested to be borrowed; and (B)&nbsp;certify that (x)&nbsp;Borrower
delivered the Final Asset Pool Acquisition Certificate in respect of such Asset Pool or Asset Pools
not later than five Business Days before the Borrowing Date specified in such notice and that all
information set forth in such Asset Pool Acquisition Certificate (as revised through the Final
Asset Pool Acquisition Certificate and as further revised to the extent permitted by Section&nbsp;6A.5)
remains true and correct and (y)&nbsp;on or prior to the date of such Notice of Borrowing, Borrower has
delivered to Agent a Final NPV Pool Certificate in respect of such Asset Pool.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Agent shall promptly notify (in writing or by telephone, confirmed as soon as possible
thereafter in writing) each of Lenders of the date of any proposed Loans, the amount of the Loan or
Loans such Lender is being requested to make and whether such Loans shall constitute Base Rate
Loans or Eurocurrency Loans. Each Lender will make the amount of its Loan or Loans available to
Agent, at the Closing Office, before 1:00 p.m. Closing Office Time on the date specified in the
Notice of Borrowing in same day funds. Such proceeds shall be made available to Borrower (subject
to Section&nbsp;2.2(c)) by Agent, in the same type of funds received by Agent, at the Closing Office
against delivery to Agent for the account of each Lender of such instruments, documents and papers
as are provided for herein; <U>provided</U> that Agent may pay on behalf of Borrower the portion
of any Utilization Fee borrowed in connection with any such Loan directly to Lenders entitled
thereto. Agent shall deliver the instruments, documents and papers received by it for the account
of each Lender to such Lender or upon its order.
</DIV>


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Unless Agent shall have received notice from a Lender prior to 11:00&nbsp;a.m., Closing Office
Time, on the date of any borrowing that such Lender will not make available to Agent such Lender&#146;s
ratable portion of such borrowing, Agent may assume that such Lender has made such portion
available to Agent on the date of such borrowing in accordance with Section&nbsp;2.2(b) and Agent may,
in reliance upon such assumption, make available to Borrower on such date a corresponding amount.
If and to the extent such Lender shall not have made such ratable portion available to Agent, such
Lender and Borrower severally agree to repay to Agent forthwith on demand such corresponding amount
together with interest thereon, for each day from the date such amount is made available to
Borrower until the date such amount is repaid to Agent, at the rate from time to time prevailing on
the applicable Note; provided that to the extent such interest is paid by a Lender, interest shall
be at the rate specified in Section&nbsp;11.10 hereof. If such Lender shall pay to Agent such
corresponding amount, such amount so paid shall constitute such Lender&#146;s Loan as part of such
borrowing for purposes of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The failure of any Lender to make the Loan to be made by it as part of any borrowing shall
not relieve any other Lender of its obligation, if any, hereunder to make its Loan on the date of
such borrowing. No Lender shall be responsible for the failure of any other Lender to make the
Loan to be made by such other Lender on the date of any borrowing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <U>The Notes</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower&#146;s obligation to pay the principal of, and interest on, the Loans of each Lender
shall be evidenced by a promissory note payable to the order of such Lender, each substantially in
the form of <U>Exhibit&nbsp;A</U> (each a &#147;<U>Note</U>&#148;, and collectively, the &#147;<U>Notes</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Note of each Lender shall: (i)&nbsp;be dated the Effective Date; (ii)&nbsp;be in an original
principal amount, with respect to each Lender, equal to such Lender&#146;s Loan Commitment; and (iii)&nbsp;be
payable in full on the Maturity Date (subject to mandatory prepayment as herein provided).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Notes shall be, and hereby are, secured by the Collateral and the Security Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <U>Mandatory Prepayments and Repayments of Loans</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If at any time Total Outstandings shall exceed the Total Loan Commitment in effect at such
time, Borrower shall immediately prepay the Loans in an amount equal to or greater than the amount
of such excess.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If on any Payment Date the aggregate outstanding principal balance of any Loan or Loans,
the proceeds of which were used to acquire any Asset Pool or Asset Pools, shall exceed the Asset
Pool Base Availability of the Related Asset Pool(s), Borrower shall no later than thirty days after
the occurrence thereof prepay such Loan or Loans in an amount equal to or greater than the amount
of such excess.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If on any Payment Date Total Outstandings shall exceed the Borrowing Base Availability,
Borrower shall on such Payment Date prepay the Loans in an amount equal to or greater than the
amount of such excess.
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Borrower shall repay the unpaid principal amount of all Loans, together with all unpaid
interest thereon and all other fees and amounts due with respect thereto, in full on the Maturity
Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;On each Payment Date, to the extent funds are available pursuant to Section&nbsp;5.2 below,
Borrower shall repay the unpaid principal amount of each Loan in the amounts set forth in Section
5.2(a)(xiii).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;If on the first, second or third anniversary of the Borrowing Date of any Loan (or if such
date is not a Payment Date, on the next Payment Date thereafter) less than 25%, 50% or 75%,
respectively, of the original principal amount of such Loan shall have been repaid, Borrower shall,
on such date, repay the principal of such Loan in an amount not less than the amount by which the
principal of such Loan on such date exceeds 25%, 50% or 75%, as the case may be, of the original
principal amount of such Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <U>Voluntary Prepayments of Loans</U>. Borrower may, upon not less than three Business
Days prior written notice to Agent (which notice Agent shall promptly transmit to Lenders in
writing or by telephone, confirmed as soon as possible thereafter in writing), prepay any Loans in
whole at any time, or from time to time in part in amounts of $250,000, and if greater, in integral
multiples of $100,000, without premium (subject to Section&nbsp;3.8) or penalty; <U>provided</U> that
at the time of any such prepayment, Borrower shall pay all interest accrued on the principal amount
so prepaid. All notices pursuant to this Section&nbsp;2.5 shall be irrevocable and result in the
principal amount of the Loans specified therein becoming due and payable on the prepayment date
specified therein. Subject to the terms and conditions of this Agreement, amounts prepaid under
this Section&nbsp;2.5 may be reborrowed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <U>Reduction of Commitments</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower shall have the right at any time and from time to time upon at least three
Business Days&#146; prior written notice to Agent (which notice Agent shall promptly transmit to Lenders
in writing or by telephone, confirmed as soon as possible thereafter in writing) to reduce
permanently in amounts equal to $500,000 (and if greater, in integral multiples of $100,000) or
terminate the unutilized (after giving effect to all pending requests for Loans) Total Loan
Commitment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any reduction of the Total Loan Commitment pursuant to this Section&nbsp;2.6 shall be allocated
to the Loan Commitments of Lenders, <U>pro</U> <U>rata</U>, based upon the percentage that each
Lender&#146;s Loan Commitment represents of Total Loan Commitment. Any reduction to or any termination
of the Total Loan Commitment shall be accompanied by the payment in full of any Commitment
Commission then accrued hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>INTEREST.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <U>Rate of Interest.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the provisions of Section&nbsp;3.3, Borrower agrees to pay interest in respect of
the unpaid principal amount of the Loans from the date such Loans are made until maturity (whether
by acceleration or otherwise) for each period from and including the related
</DIV>


<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrowing Date to but excluding the immediately following Payment Date and, thereafter, from
and including each Payment Date to but excluding the immediately following Payment Date, at the
following rates: (i)&nbsp;with respect to Eurocurrency Loans, at a rate per annum equal to LIBOR for
the Eurocurrency Interest Period then in effect, <U>plus</U> the Applicable Margin in effect for
such period, and (ii)&nbsp;with respect to Base Rate Loans, at a rate per annum equal to the Base Rate,
such rate to change as and when the Base Rate shall change.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Loans which are made on a date other than a Payment Date shall constitute Base Rate Loans
until converted in accordance with Section&nbsp;3.10.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <U>Interest Payment Dates</U>. Interest, on and prior to maturity, in respect of each
Loan shall be payable in arrears (i)&nbsp;on each Payment Date; (ii)&nbsp;upon any repayment or prepayment
(to the extent accrued on the principal amount so repaid or prepaid); and (iii)&nbsp;at maturity
(whether by acceleration or otherwise) and, after maturity, on demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <U>Past Due Rate</U>. Each Loan (and any overdue interest in respect of each Loan) shall
bear interest for each day on which an Event of Default exists (after as well as before judgment),
payable on demand, at a rate per annum (the &#147;<U>Past-Due Rate</U>&#148;) equal to the greater of 5% in
excess of the interest rate otherwise applicable to such Loan on such day or 4.5% in excess of the
Base Rate in effect on such day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <U>Capital Adequacy</U>. If any Lender shall have determined that the applicability of
any law, rule, regulation or guideline adopted after the date hereof, it being agreed that &#147;adopted
after the date hereof&#148; shall include compliance by a Lender or any lending office or holding
company of a Lender with any Basle Law whether or not such Basle Law was in effect, applicable or
phased in on or prior to or after the date hereof pursuant to or arising out of the July&nbsp;1988
report of the Basle Committee on Banking Regulations and Supervisory Practices entitled
&#147;International Convergence of Capital Measurement and Capital Standards&#148; or pursuant to or arising
out of any report, agreement or convention of any international banking group adopted subsequent
to such 1988 report (said laws, rules, regulations and guidelines pursuant to or arising out of
such 1988 report or any such subsequently adopted report, agreement or convention being sometimes
collectively herein referred to as &#147;<U>Basle Laws</U>&#148;), or the adoption after the date hereof of
any other law, rule, regulation or guideline regarding capital adequacy (any such other law, rule,
regulation or guideline being sometimes herein referred to as &#147;<U>Other Laws</U>&#148;), or any change
in any of the foregoing (after the date hereof in respect of Other Laws; before or after the date
hereof in respect of Basle Laws) or in the enforcement or interpretation or administration of any
of the foregoing (after the date hereof in respect of Other Laws; before or after the date hereof
in respect of Basle Laws) by any Government Authority, central bank or comparable agency charged
with the enforcement or interpretation or administration thereof, or compliance by any Lender (or
any lending office of any Lender) or any holding company of any Lender with any request or
directive regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency, has or would have the effect of reducing the rate of
return on such Lender&#146;s capital or on the capital of such Lender&#146;s holding company, if any, as a
consequence of its Loan Commitments, Loans or any of its obligations hereunder to a level below
that which such Lender or such Lender&#146;s holding company could have achieved but for such
applicability, adoption, change or compliance (taking into consideration such Lender&#146;s policies and
the policies of such Lender&#146;s holding company with respect to capital adequacy) by
</DIV>

<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">an amount deemed by such Lender to be material, <U>then</U>, upon demand by such Lender (or
by Agent on such Lender&#146;s behalf), Borrower shall pay to such Lender from time to time such
additional amount or amounts as will compensate such Lender or such Lender&#146;s holding company for
any such reduction suffered, together with interest on each such amount from the date demanded
until payment in full (after as well as before judgment) thereof at the Base Rate. Each Lender
shall endeavor to give Borrower notice of its intention to require compensation under this Section
3.4 within a reasonable time after the loan officer of such Lender with responsibility for this
Agreement becomes aware of its entitlement to such compensation under this Section&nbsp;3.4, but no
failure to give any such notice shall affect or relieve Borrower of any of Borrower&#146;s obligations
under this Section&nbsp;3.4 or under any other provision of this Agreement or any other Loan Document or
result in any obligation or liability of Agent or any Lender to Borrower or any other Person. A
certificate of a Lender as to the amount required to be paid by Borrower under this Section&nbsp;3.4 and
showing in reasonable detail the basis for the calculation thereof shall, absent manifest error, be
final and conclusive (it being understood that in no event shall any Lender be required to disclose
in such certificate or otherwise any non-public information). In determining such amount or
amounts, a Lender may use any method of averaging and attribution as it (in its sole and absolute
discretion) shall deem applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <U>Determination of Rate of Borrowing</U>. As soon as practicable after 10:00&nbsp;A.M. (New
York time) on each Eurocurrency Interest Determination Date, Agent shall determine (which
determination shall, absent manifest error, be final, conclusive and binding upon all parties) the
rate of interest (the &#147;<U>Rate of Borrowing</U>&#148;) which shall be applicable to the Eurocurrency
Loans for the next succeeding Eurocurrency Interest Period and shall promptly give notice thereof
in writing or by telephone (confirmed in writing) to Borrower and Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <U>Substituted Rate of Borrowing</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In the event that on any Eurocurrency Interest Determination Date any Lender shall have
reasonably determined (which determination shall be final and conclusive and binding upon all
parties but, with respect to the following clauses (i), (ii)(y) and (ii)(z), shall be made only
after consultation with Agent on the date of such determination) that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;by reason of any changes arising after the date of this Agreement affecting the interbank
Eurocurrency market or affecting the position of such Lender in such market, adequate and fair
means do not exist for ascertaining the applicable Rate of Borrowing by reference to LIBOR with
respect to the Eurocurrency Loans as to which an interest rate determination is then being made; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by reason of (x)&nbsp;the requirements of Regulation&nbsp;D, (y)&nbsp;any change after the date hereof
in any other applicable law or governmental rule, regulation or order (or any interpretation
thereof and including the enactment of any new law or governmental rule, regulation or order) or
(z)&nbsp;other circumstances affecting such Lender or the interbank Eurocurrency market or the position
of such Lender in such market (such as for example but not limited to a change in official reserve
requirements or increased capital reserves required or imposed by any regulatory authority or
entity (domestic or foreign) having jurisdiction over or with respect to such Lender to the extent
not provided for in clause (ii)(x) above), LIBOR shall
</DIV>

<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">not represent the effective pricing to such Lender for U.S. dollar deposits of comparable
amounts for the relevant periods;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then, and in any such event, Lender so affected shall on such date give notice of such
determination in writing or by telephone (confirmed in writing) to Borrower and to Agent.
Thereafter, Borrower shall pay to such Lender, upon written demand therefor, such additional
amounts (in the form of an increased rate of, or a different method of calculating, interest or
otherwise as such Lender in its reasonable discretion shall determine) as shall be required to
cause such Lender to receive interest with respect to its Eurocurrency Loan for the Eurocurrency
Interest Period following such Eurocurrency Interest Determination Date and for any succeeding
Eurocurrency Interest Period with respect to which such changes or requirements apply (each such
period, an &#147;<U>Affected Interest Period</U>&#148;) at a rate per annum equal to 2.00% in excess of the
effective pricing to such Lender for U.S. dollar deposits to make or maintain its Eurocurrency
Loans, <U>provided</U> <U>that</U> in the case of any such determination pursuant to clause
(ii)(x), the written notice from such Lender to Agent and Borrower on the relevant Eurocurrency
Interest Determination Date shall specify (x)&nbsp;any such amount on account thereof theretofore
incurred, and such amount shall be paid at such time and (y)&nbsp;the additional amount required to be
paid with respect to the relevant Affected Interest Period (with such amount so stated to be final
with respect to the relevant Affected Interest Period) and such additional amount shall be paid at
the same time, and together with, the interest otherwise payable in respect of such Eurocurrency
Loans for such Affected Interest Period. A certificate as to additional amounts owed any such
Lender, showing in reasonable detail the basis for the calculation thereof, submitted to Borrower
by such Lender through Agent shall, absent manifest error, be final and conclusive and binding upon
all of the parties hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In lieu of paying additional moneys to any Lender affected by Section (a), other than
clause (ii)(x) thereof (any such Lender, together with any Lender affected by Section&nbsp;3.7(a), an
&#147;<U>Affected Lender</U>&#148;), Borrower may (subject to Section&nbsp;3.8), by giving notice in writing or
by telephone (confirmed in writing) to the Affected Lender, Agent and the other Lenders on such
Eurocurrency Interest Determination Date, (x)&nbsp;require the Affected Lender to convert its
Eurocurrency Loan then outstanding or requested that is so affected into a Base Rate Loan on the
first day of the Affected Interest Period, such notice to pertain only to the Loans of the Affected
Lender and to have no effect on the obligations of the other Lenders to maintain Eurocurrency
Loans, or (y)&nbsp;terminate the obligations of Lenders to make or maintain Loans as, or convert Loans
into, Eurocurrency Loans and in such event, on the first day of what would have been the next
Eurocurrency Interest Period, all Eurocurrency Loans shall be outstanding as Base Rate Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <U>Required Termination and Prepayment</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In the event that at any time any Affected Lender shall have reasonably determined (which
determination shall be final and conclusive and binding upon all parties) that the making or
continuation of its Eurocurrency Loans has become unlawful by compliance by such Lender in good
faith with any law, governmental rule, regulation, guideline or order, the Affected Lender shall on
such date give notice in writing or by telephone (confirmed in writing) to Agent and Borrower of
such determination. The obligation of the Affected Lender to make or maintain its Eurocurrency
Loan or Loans so affected shall be terminated and Borrower shall

<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">forthwith and in any event no later than the earliest of (x)&nbsp;the termination of the
Eurocurrency Interest Period in effect at the time any such determination pursuant to this Section
3.7(a) is made, (y)&nbsp;the first day of the Eurocurrency Interest Period commencing immediately
thereafter if such determination is made in respect of a requested Eurocurrency Loan, or (z)&nbsp;five
Business Days after receipt of notice from an Affected Lender under this Section&nbsp;3.7(a), take one
of the actions specified in Section&nbsp;3.7(b). If by the earliest of (x), (y)&nbsp;or (z)&nbsp;Borrower has not
exercised one of the options specified in Section&nbsp;3.7(b), Borrower shall be deemed to have
exercised the option set forth in clause (iii)&nbsp;of Section&nbsp;3.7(b) and to have given the notice
specified therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon receiving any notification provided in Section&nbsp;3.7(a), Borrower may (subject to
Section&nbsp;3.8) exercise one of the following options:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the determination by an Affected Bank relates only to Eurocurrency Loans then
being requested by Borrower pursuant to a Notice of Borrowing or to Base Rate Loans then
being requested by Borrower to be converted to Eurocurrency Loans pursuant to a Notice of
Conversion, Borrower may by giving notice in writing to Agent and Lenders prior to the date
on which such Eurocurrency Loan is to be made or converted, withdraw such Notice of
Borrowing or Notice of Conversion for all Lenders;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon written notice to Lenders, Borrower may terminate the obligations of Lenders
to make or maintain Loans as, or convert Loans into, Eurocurrency Loans and in such event,
Borrower, shall not later than the time specified in subsection 3.7(a), convert all
Eurocurrency Loans into Base Rate Loans by giving notice thereof to Agent and Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Borrower may, by giving notice in writing to the Affected Lender, Agent and the
other Lenders require the Affected Lender to make the Eurocurrency Loan then being requested
as a Base Rate Loan (or to keep outstanding as a Base Rate Loan the Base Rate Loan then
being converted), such notice to pertain only to the affected Eurocurrency Loans of the
Affected Lender and to have no effect on the obligations of the other Lenders to make or
maintain Eurocurrency Loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <U>Compensation</U>. Borrower shall compensate each Lender, upon written request by such
Lender (which request shall be made through Agent and shall set forth the basis for requesting such
amounts), for all losses, expenses and liabilities (including, without limitation, any interest
paid by such Lender to lenders of funds borrowed by it to make or carry its Eurocurrency Loans to
Borrower, losses sustained by such Lender in connection with the liquidation or re-employment of
such funds and all other funding losses) which such Lender may sustain: (i)&nbsp;if for any reason a
conversion of any Eurocurrency Loan does not occur on a date specified therefor pursuant to Section
3.6, 3.7 or 3.10, or any conversion into a Eurocurrency Loan does not occur on the date specified
therefor in Section&nbsp;3.10, (ii)&nbsp;if for any reason any prepayment or repayment or conversion of any
of its Eurocurrency Loans occurs on a date which is not the last day of a Eurocurrency Interest
Period applicable thereto, (iii)&nbsp;if any prepayment, repayment or conversion of any of its
Eurocurrency Loans occurs on such last day of the Eurocurrency Interest Period applicable thereto
in any amount in excess of the amount notified to Agent in writing not less than three Business
Days prior to such last day of such Eurocurrency Interest Period, (iv)&nbsp;if any prepayment, repayment
or conversion of any of its Eurocurrency
</DIV>

<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Loans occurs without at least three Business Days prior written notice thereof having been
given to Agent, (v)&nbsp;if any prepayment or repayment of any of its Eurocurrency Loans is not made on
any date specified in a notice thereof given by Borrower or if any prepayment or repayment
contemplated or required by a Waterfall Certificate is not made on the Payment Date following the
date such Waterfall Certificate is delivered, or (vi)&nbsp;as a consequence of any default under this
Agreement or the delivery of any Certified Error Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <U>Eurocurrency Interest Period Determination</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Eurocurrency Interest Period for any Loan shall commence on a Payment Date and expire
on the succeeding Payment Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No Eurocurrency Interest Period in respect of any Loan shall extend beyond the Maturity
Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Subject to Section&nbsp;3.9(e), if Agent shall not have received written notice from Borrower
on or prior to 11:00&nbsp;a.m. (Closing Office Time) at least three Business Days prior to a Payment
Date that Borrower has elected to convert all or a portion of Loans outstanding as Eurocurrency
Loans to Base Rate Loans in accordance with the other provisions of this Agreement, Borrower shall
be deemed to have elected to have such Loans (or portion thereof, as the case may be) continued as
Eurocurrency Loans for a new Eurocurrency Interest Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Unless the Majority Lenders specifically agree in writing, no Eurocurrency Interest Period
may be selected at any time that a Default or Event of Default exists and Borrower shall be deemed
to have elected to convert such Eurocurrency Loans into Base Rate Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Borrower shall not be permitted to maintain as Eurocurrency Loans any Loans if the
outstanding amount of such Loans to be maintained as Eurocurrency Loans is less than $1,000,000, or
an integral multiple of $100,000 in excess thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <U>Conversions</U>. Borrower shall have the option to convert, on any Payment Date, all
or any portion of Loans from Base Rate Loans to Eurocurrency Loans or from Eurocurrency Loans to
Base Rate Loans; <U>provided</U> that (i)&nbsp;after giving effect to any such conversion the amount
outstanding as a Eurocurrency Loans, if any, shall be equal to $1,000,000 or an integral multiple
of $100,000 in excess thereof, and the amount outstanding as Base Rate Loans, if any, shall not be
less than $20,000; and (ii)&nbsp;unless the Majority Lenders specifically agree in writing, no
conversion to Eurocurrency Loans shall be permitted at any time that a Default or Event of Default
exists. Each such conversion shall be effected by Borrower giving Agent written notice thereof (a
&#147;<U>Notice of Conversion</U>&#148;) on or prior to 11:00&nbsp;a.m. (Closing Office Time) at least three
Business Days prior to a Payment Date, specifying the amount of Loans to be converted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. FEES.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <U>Commitment Commission</U>. Borrower agrees to pay to Agent for the account of each
Lender a commitment commission with respect to each Lender&#146;s Loan Commitment for the period
commencing on the Effective Date, to and including the Maturity Date, computed at a rate per annum
(calculated on the basis of a 360-day year and the actual number of days elapsed)
</DIV>

<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">equal to .20% of the average daily Unutilized Loan Commitment of such Lender during the period
for which payment is made. Such commission (each a &#147;<U>Commitment Commission</U>&#148;) shall be due
and payable quarterly in arrears on each Payment Date occurring in the month of March, June,
September and December, commencing September&nbsp;15, 2005 (such date to include the full period from
the Effective Date until said date).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <U>Utilization Fee</U>. Borrower agrees to pay to Agent, for the ratable account of each
Lender (based upon the percentage that such Lender&#146;s Loan Commitment represents of the Total Loan
Commitment) a utilization fee equal to .75% of the amount of each Loan made, such fee to be due and
payable on each date on which a Loan is made (each such fee, a &#147;<U>Utilization Fee</U>&#148;);
<U>provided</U>, <U>however</U>, no Utilization Fee shall be payable in connection with the first
Loan made hereunder to the extent the principal amount of such Loan shall be less than or equal to
$19,500,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <U>Upfront Fee</U>. Borrower agrees to pay to Agent, for the ratable account of each
Lender (based upon the percentage that each Lender&#146;s Loan Commitment represents of the Total Loan
Commitment) an upfront fee (the &#147;<U>Upfront Fee</U>&#148;) in the amount of $350,000, which fee shall
be due and payable in full on the Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <U>Facility Fee</U>. Borrower agrees to pay to Agent, for the ratable account of each
Lender (based upon the percentage that each Lender&#146;s Loan Commitment represents of the Total Loan
Commitment) an annual facility fee (each such fee, a &#147;<U>Facility Fee</U>&#148;) in the amount of (i)
$100,000, for the period commencing on the Effective Date to but excluding the first anniversary
thereof, (ii) $75,000, for the period commencing on the first anniversary of the Effective Date to
but excluding the second anniversary thereof, and (iii) $50,000, for each subsequent one-year
period, commencing on an anniversary of the Effective Date to but excluding the next anniversary
thereof, which fees shall be payable in advance on, and fully earned by Lenders on, the Effective
Date and on each subsequent anniversary thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. PAYMENTS, ETC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U>Payments on Non-Business Days; Calculations</U>. Whenever any payment to be made
hereunder or under the Notes shall be stated to be due on a day which is not a Business Day, the
due date thereof shall be extended to the next succeeding Business Day and interest shall be
payable at the applicable rate during such extension. Interest on Base Rate Loans hereunder and
under the Notes shall be calculated on the basis of a 365-day year and the actual number of days
elapsed and interest on Eurocurrency Loans hereunder and under the Notes shall be calculated on the
basis of a 360-day year and the actual number of days elapsed. If for any reason a Loan is repaid
on the same day on which it is made, one day&#146;s interest (subject to the other provisions of this
Agreement) shall be paid on that Loan. Borrower hereby authorizes and directs Agent and each
Lender to charge any account of Borrower maintained at any office of Agent or such Lender with the
amount of any principal, interest or fee when the same becomes due and payable under the terms
hereof or of the Notes; <U>provided</U>, <U>however</U>, that neither Agent nor any Lender shall
be under any obligation to charge any such account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Payment Date and Distribution of Funds.
</DIV>

<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;So long as no Default or Event of Default has occurred and is continuing and Lender has
not exercised its rights pursuant to subsection (b)&nbsp;below, the gross aggregate amount received
during such period by Borrower for each Asset Pool shall be distributed and applied on the
fifteenth day of each month (or at any other times as may be agreed upon from time to time by
Borrower, Agent and Lenders), or if such date is not a Business Day, on the next succeeding
Business Day (each, a &#147;<U>Payment Date</U>&#148;), in accordance with a distribution statement prepared
by Borrower and approved in writing by Agent, as follows:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>First</U>, to transfer out of the Lockbox Account any funds that do not
constitute collections on Assets comprising any Asset Pool which were erroneously deposited
to the Lockbox Account;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>Second</U>, to the applicable Tax Escrow Account, an amount equal to all Tax
Escrow Payments related to that Asset Pool;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <U>Third</U>, to the payment of custodial fees related to that Asset Pool
payable the Custodian pursuant to the Custodial Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <U>Fourth</U>, to the payment of fees payable to the Lockbox Bank pursuant to the
Lockbox Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <U>Fifth</U>, to the payment to Agent, for the account of Lenders, of all interest
on the Loan related to that Asset Pool which is then due and payable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <U>Sixth</U>, to the payment of any unpaid interest relating to any other Asset
Pool payable pursuant to subsection (v)&nbsp;above;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <U>Seventh</U>, to the payment to Agent, for the account of Lenders, of any
Commitment Commission which is or will become so due and payable on or before the last day
of the calendar month in which the Payment Date in question occurs;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) <U>Eighth</U>, to the payment of Asset Pool Protection Expenses related to that
Asset Pool;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) <U>Ninth</U>, to the payment to the Servicer of any &#147;Servicing Fees&#148; (as such
term is defined in the Services Agreement) then owed to the Servicer pursuant to the
Services Agreement on account of the Assets comprising that Asset Pool;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <U>Tenth</U>, to the payment to Agent, for the account of Lenders, as a principal
payment, any mandatory prepayment which is then due and payable pursuant to Section&nbsp;2.4(a)
or, Section&nbsp;2.4(b) on any Loan made in connection with that Asset Pool;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) <U>Eleventh</U>, payment to Agent, for the account of Lenders, as a principal
payment, any mandatory prepayment which is due and payable pursuant to Section&nbsp;2.4(c) and/or
2.4(f) on such Payment Date on any Loan made in connection with that Asset Pool;
</DIV>

<P align="center" style="font-size: 10pt">11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) <U>Twelfth</U>, to the payment to Agent, for the account of Lenders, all fees,
late charges and other fees and expenses which are then due and payable to Agent and/or
Lenders under this Agreement or any of the other Loan Documents or which will become so due
and payable on or before the last day of the calendar month in which the Payment Date in
question occurs for any Loan made in connection with that Asset Pool;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) <U>Thirteenth</U>, to the payment to Agent, for the account of Lenders, of any
voluntary prepayment which Borrower elects to pay pursuant to Section&nbsp;2.5 and any Commitment
Commission payable pursuant to Section&nbsp;2.6(b) on any Loan made in connection with that Asset
Pool;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) <U>Fourteenth</U>, to the payment to Agent, for the account of Lenders, as
principal payment on the applicable Loans, (i)&nbsp;for each Loan for which the LTV Ratio shall
be greater than or equal to 1.00 to 2.00 on such Payment Date, 100% of the Asset Pool
Proceeds (of the Related Asset Pool) received during the Proceeds Period ending on such
Payment Date, and (ii)&nbsp;for each Loan for which the LTV Ratio shall be less than 1.00 to 2.00
on such Payment Date, 65% of Asset Pool Proceeds (of the Related Asset Pool) received during
the Proceeds Period ending on such Payment Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) <U>Fifteenth</U>, to the payment to Agent, for the account of Lenders, as a
principal payment, the amount (if any) of any mandatory prepayment which is then due and
payable pursuant to Section&nbsp;2.4(d) on any Loan made in connection with that Asset Pool; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) <U>Sixteenth</U>, to the payment to Borrower of any remaining balance of the
funds in the Lockbox Account.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The expenses and payments under this Section&nbsp;5.2 shall be paid out of the gross aggregate
amount received during such period by Borrower for the Asset Pool to which the expense
relates. As to expenses that are not directly related to a particular Asset and Asset Pool
(specifically as to subparts (iii), (iv), (vii)&nbsp;and (x)&nbsp;above), Borrower shall make an
allocation of those expenses or payments among the Asset Pools and submit that allocation
for approval by the Agent in connection with the submission of the distribution statement on
each Payment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If at any time the gross aggregate amount received during such period by Borrower for an
Asset Pool (a &#147;<U>Deficient Asset Pool</U>&#148;) is insufficient, as of any Payment Date, to
pay amounts owed pursuant to <U>Sections&nbsp;5.2(a) (ii), (iii), (iv)</U>, and <U>(xii)</U>,
the amount of any such deficiency (herein, each an &#147;<U>Shortfall Amount</U>&#148;) shall be paid
from any amount that would otherwise be distributable to Borrower pursuant to subpart (xvi)
of this Section as to other Asset Pools (each such pool being a &#147;Contributing Asset Pool&#148;).
If and to the extent amounts received from a Contributing Asset Pool is used to pay
Shortfall Amounts, the Borrower shall not receive any payment with respect to the Deficient
Asset Pool until such Shortfall Amounts have been recovered from the Deficient Asset Pool
and paid to the Contributing Asset Pool(s).
</DIV>


<P align="center" style="font-size: 10pt">12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon the occurrence and during the continuance of any Default or Event of Default, at the
option of Agent all funds in Lockbox Account may be applied by Agent to Obligations in the
following order of priority: (i)&nbsp;to any amounts not otherwise listed in this Section&nbsp;5.2 then due
and payable by Borrower under this Agreement, the Notes or the Security Documents, (ii)&nbsp;to any fees
then due and payable pursuant to Section&nbsp;4 of this Agreement, <U>pro</U> <U>rata</U> according to
the aggregate amount of fees then due and payable, (iii)&nbsp;to any interest on the Notes (<U>pro</U>
<U>rata</U> according to the aggregate amount of interest then due and payable on the Notes) then
due and payable, (iv)&nbsp;to any principal amount then due under the Notes and (v)&nbsp;to any amounts not
then due under the Notes, unless otherwise provided herein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <U>Net Payments; Application.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;All payments hereunder and under the Loan Documents (including, without limitation,
repayments and prepayments pursuant to Section&nbsp;2) shall be made by Borrower to Agent, in freely
transferable U.S. dollars, and in same day funds at the Closing Office without setoff or
counterclaim and in such amounts as may be necessary in order that all such payments (after (i)
withholding for or on account of any present or future taxes, levies, imposts, duties or other
similar charges of whatsoever nature imposed on the amounts described above by any government or
any political subdivision or taxing authority thereof, other than any tax (other than such taxes
referred to in clause (ii)&nbsp;below) imposed on a Lender pursuant to the income tax laws of the
jurisdiction where such Lender&#146;s principal or lending office or offices are located (collectively,
the &#147;<U>Taxes</U>&#148;) and (ii)&nbsp;deduction of an amount equal to any taxes on or measured by the net
income payable to such Lender with respect to the amount by which the payments required to be made
by this Section&nbsp;5.3 exceed the amount otherwise specified to be paid under this Agreement and the
Notes) shall not be less than the amounts otherwise specified to be paid under this Agreement and
the Notes. With respect to each such deduction or withholding imposed in respect of any payment by
or on behalf of Borrower, Borrower shall promptly (and in no event later than 30&nbsp;days thereafter)
furnish to Agent such certificates, receipts and other documents as may be required to establish
any tax credit, exemption or reduction in rate to which any Lender or holder of a Note may be
entitled. Each Lender, other than a Lender organized and existing under the laws of the United
States of America or any political subdivision thereof, agrees to furnish Borrower, as soon as
practicable after any written request of Borrower to such effect, any executed form reasonably
requested by Borrower such as IRS Form W-8BEN or W-8ECI, and any other applicable form as to such
Lender&#146;s entitlement, if any, to exemption from, or a reduced rate of, or its subjection to, United
States withholding tax on amounts payable to it hereunder by Borrower or under the Notes of
Borrower and each such Lender undertakes to use its best efforts promptly to notify Borrower of any
material change in any information, statement or form so furnished to Borrower; <U>provided</U>,
<U>however</U>, that any failure on the part of any Lender to furnish any such information,
statements or forms shall in no way affect the obligations of Borrower or the rights of any Lender
under the terms of this Agreement or of the Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <U>Distribution by Agent</U>. All payments received by Agent on behalf of Lenders on
account of principal and interest under this Agreement or the Notes or on account of any fees
payable for the account of Lenders shall be promptly distributed by Agent to Lenders (in the type
of funds received by Agent) as follows: (i)&nbsp;if in respect of principal of any Loans made to
Borrower then on a <U>pro rata</U> basis to each of Lenders holding the Loans in respect of which
such
</DIV>

<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">payment is being made; (ii)&nbsp;if in respect of interest on the Loans, then to each Lender in the
proportion that the aggregate amount of such unpaid interest due on the Loans of each such Lender
bears to the aggregate amount of such unpaid interest due on all such Loans; (iii)&nbsp;if in respect of
fees, then to Lenders in accordance with their entitlement thereto (based on each Lender&#146;s share of
the Total Loan Commitment, in the case of the Facility Fee, Upfront Fee and the Commitment
Commission, and based on each Lender&#146;s share of the applicable Loans described in Section&nbsp;4.2, in
the case of the Utilization Fee); and (iv)&nbsp;if in respect of a payment under Section&nbsp;3 other than an
interest payment hereof, to each Lender in accordance with its entitlement thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. CONDITIONS PRECEDENT TO EFFECTIVENESS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall become effective when and as of the date (the &#147;<U>Effective Date</U>&#148;)
that each of the following conditions have been satisfied to the satisfaction of Agent (or waived
by Agent). If the Effective Date shall not have occurred by the close of business (New York time)
on August&nbsp;26, 2005 (or such later date as is agreed to by Agent in writing), this Agreement shall
not become effective and shall be deemed rescinded, null and void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <U>Default, etc</U>. On the Effective Date (both before and after giving effect to the
occurrence of the Effective Date) there shall exist no Default or Event of Default and all
representations and warranties made by the Loan Parties herein or in the other Loan Documents or
otherwise by the Loan Parties in writing in connection herewith or therewith shall be true and
correct in all material respects with the same effect as though such representations and warranties
have been made at and as of such time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <U>Notes</U>. Agent shall have received for each of Lenders the Notes, each duly
executed and completed by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <U>Supporting Documents of Borrower</U>. There shall have been delivered to Agent (with
sufficient copies for each of Lenders) such information and copies of documents (if any), approvals
(if any) and records (certified where appropriate) of corporate and legal proceedings (if any) in
addition to those listed in Section&nbsp;6.12 of this Agreement as Agent or any Lender may have
reasonably requested relating to the Loan Parties entering into and performance of the Loan
Documents or any other agreements or documents related thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <U>Officer&#146;s Certificate</U>. There shall have been delivered to Agent (with sufficient
copies for each of Lenders) a certificate of an Executive Officer of Borrower certifying, as of the
Effective Date, compliance with the conditions of Section&nbsp;6.1 and also the absence of any Material
Adverse Changes of the type referred to in Section&nbsp;6.8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <U>Certifications; Financial Statements</U>. Borrower shall have delivered to Agent such
financial statements and certifications of financial statements as Agent may have requested, which
statements shall include, in any event, month end financial statements of the type required by
Section&nbsp;7.1(a) and certified by the CFO of FirstCity and Borrower as of the most recent month
ending 30&nbsp;days prior to the Effective Date, the annual financial statements required by Section
7.1(b) for the Fiscal Year most recently ended (or the prior Fiscal Year, if less than 105
</DIV>

<P align="center" style="font-size: 10pt">14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">days have passed since the end of a Fiscal Year) accompanied by the certifications required by
Section&nbsp;7.1(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <U>Approvals and Consents</U>. All orders, permissions, consents, approvals, licenses,
authorizations and validations of, and filings, recordings and registrations with, and exemptions
by (all of the foregoing, &#147;<U>Requisite Consents</U>&#148;), any Government Authority, or any other
Person, required to authorize or required in connection with the execution, delivery and
performance of this Agreement or the other Loan Documents and the transactions contemplated hereby
and thereby by any Loan Party shall have been obtained (and, if so requested, furnished to Agent,
with sufficient copies for Lenders).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <U>Legal Opinions</U>. Agent shall have received legal opinions (in sufficient
counterparts for each of Lenders) dated the Effective Date from Haynes and Boone, LLP, counsel to
Borrower and each other Loan Party, in form and substance satisfactory to Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <U>Adverse Change</U>. There shall have been, in Agent&#146;s opinion, no Material Adverse
Change since June&nbsp;30, 2005. Neither Agent nor any Loan Party shall have become aware of any
previously undisclosed information with respect to any Loan Party which, in Agent&#146;s opinion, would
have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <U>Change in Law; No Opposition</U>. (i)&nbsp;No change shall have occurred in applicable law
or in applicable regulations thereunder or in the interpretations thereof by any Governmental
Authority which, in the opinion of any Lender, would make it illegal for such Lender to make one or
more Loans hereunder; and (ii)&nbsp;no suit, action or proceeding shall be pending or threatened before
or by any Governmental Authority seeking to restrain or prohibit the making of any Loan or the
consummation of the transactions contemplated hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <U>All Proceedings to be Satisfactory</U>. All corporate, partnership, limited
liability company and legal proceedings and all instruments, documents and papers in connection
with the transactions contemplated by this Agreement and the other Loan Documents and the other
documents referred to herein shall be satisfactory in form and substance to Agent, and Agent and
each Lender shall have received all such information and copies of all documents which Agent or
such Lender may reasonably have requested in connection herewith, such documents where appropriate
to be certified by proper corporate officials or governmental authorities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <U>Fees and Expenses</U>. The fees referred to in Section&nbsp;4.2, the legal fees and
expenses of Agent&#146;s New York counsel in connection with the transactions contemplated by this
Agreement shall (to the extent demand for payment thereof shall have been made) have been paid in
full.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <U>Other Loan Documents</U>. Borrower, and each other party thereto, other than Agent
or the Lenders, shall, on or before the Effective Date, execute and deliver or caused to be
executed and delivered to Agent, in form and substance satisfactory to Agent, the following
documentation:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Guaranty Agreement,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Security Agreement,
</DIV>


<P align="center" style="font-size: 10pt">15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Perfection Certificate,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Custodian Agreement,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Lockbox Agreement,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Deposit Account Control Agreement,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Services Agreement,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Servicer Indemnity Agreement, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;a certificate of the Secretary or an Assistant Secretary of Borrower with respect to (i)
resolutions of the general partner of Borrower authorizing the execution and delivery of the Loan
Documents and identifying the officer(s) authorized to execute, deliver and take all other actions
required under this Agreement, and providing specimen signatures of such officers, (ii)&nbsp;true,
correct and complete copies of the charter documents and partnership agreement of Borrower, and
(iii)&nbsp;a certificate of the Secretary of State of the Borrower&#146;s jurisdiction of incorporation as to
legal existence of Borrower in such state, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;such other documents, instruments, opinions and certificates and completion of such other
matters, as Agent may reasonably deem necessary or appropriate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <U>UCC Statements</U>. Lien search results confirming the absence of any perfected
Liens prior to Lenders&#146; and of any other Liens other than Permitted Liens shall have been delivered
to Agent and all actions with respect to the Liens created by the Security Documents as are
necessary or appropriate to perfect such Liens shall have been taken.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <U>REO Notes</U>. Except as otherwise Described to Agent in writing, all REO Notes and
or REO Security Documents existing on the Effective Date shall be delivered to the Custodian
pursuant to Section&nbsp;7.21.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6A. <U>CONDITIONS PRECEDENT TO LOANS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lenders shall not be obligated to make any Loans unless, at the time of the making of such
Loan (except as hereinafter indicated) the following conditions (unless waived in writing by the
Majority Lenders) have been satisfied:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A.1 <U>Certain Conditions</U>. At the time of the making of such Loan, and immediately
after giving effect thereto, (a)&nbsp;all deficiencies, if any, with respect to conditions precedent to
any prior Loan shall have been corrected to the satisfaction of Agent, (b)&nbsp;all of the conditions
specified in Sections&nbsp;6.1, 6.6, 6.8, 6.9 and 6.10 (with any reference in any such Section to the
Effective Date being deemed to be a reference to the date of such Loans) shall be satisfied to the
satisfaction of Agent, (c)&nbsp;each of the Notes, the Guaranties and the Security Documents shall be in
full force and effect and no party thereto shall have failed to perform in any material respect any
of its obligations thereunder, (d)&nbsp;no issuer of any legal opinion issued in connection with any
</DIV>

<P align="center" style="font-size: 10pt">16
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Loan Document or the making of any Loan shall have rescinded or qualified any such legal
opinion, (e)&nbsp;no issuer thereof shall have rescinded or qualified any of the financial statements,
certificates, letters, reports, analyses, Requisite Consents or other opinions referred to in
Section&nbsp;6, and (f)&nbsp;there shall have been, in the Majority Lenders&#146; opinion, no Material Adverse
Change since the Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A.2 <U>Subsequent Opinions of Counsel</U>. If reasonably requested by Agent or Majority
Lenders, Agent shall have received from any or all of the counsel referred to in 6.7 (or other
counsel satisfactory to Agent) such favorable supplemental legal opinions addressed to Agent and
Lenders and dated the date of such Loan and covering such matters incidental to the transactions
contemplated by this Agreement as Agent or the Majority Lenders shall reasonably request, each of
which opinions shall be in form and substance satisfactory to Agent and Lender requesting same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A.3 <U>Officer&#146;s Certificate</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If requested by Agent, Agent shall have received a certificate of an Executive Officer of
Borrower certifying, as of the date of the Loan then being made, compliance with the provisions of
Section&nbsp;6.1 (with the reference therein to the Effective Date being deemed a reference to the date
such Loans is being made) and further to the effect that the conditions specified in Section&nbsp;6A.1
are satisfied at such time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The making of each Loan subsequent to the Effective Date shall constitute a representation
and warranty by Borrower to Agent that, at the time of said subsequent Loan (and after giving
effect thereto), (i)&nbsp;all representations and warranties contained herein or in the other Loan
Documents or otherwise made by Borrower or any other Loan Party in connection herewith or therewith
are true and correct in all material respects with the same effect as though such representations
and warranties were being made at and as of such time, (ii)&nbsp;no Default or Event of Default exists
and (iii)&nbsp;the conditions specified in Section&nbsp;6A.1 are satisfied at such time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A.4 <U>Consummation of Asset Acquisition</U>. Except with respect to the Effective Date
Loan, there shall have been delivered to Agent evidence satisfactory to Agent that the acquisition
of the Asset Pool described in the related Asset Pool Acquisition Certificate shall have been
consummated in accordance with the terms of the applicable asset purchase agreement (without any
waiver of any material provision thereof) and the Asset Pool conforms to the description thereof
contained in the Asset Pool Acquisition Certificate as modified by revisions permitted by Section
6A.5, and that the entire amount of proceeds of such Loan were paid by Borrower to acquire such
Asset Pool.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A.5 <U>Notices</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Final Asset Pool Acquisition Certificate in respect of the Related Asset Pool shall
have been delivered to Agent not less than 5 Business Days prior to the Borrowing Date of such
Loan(s); <U>provided</U> that additional written revisions to the applicable Asset Pool
Acquisition Certificate may be delivered to Agent until 11:00&nbsp;a.m. (Closing Office Time) on the day
which is two Business Days preceding the Borrowing Date for such
Loan(s) if</DIV>

<P align="center" style="font-size: 10pt">17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such revisions relate only to the Acquisition Price, the amount of Loan(s) being requested
(three Business Days notice being required if such Loan(s) are to be Eurocurrency Loans) or provide
additional details as to the Related Asset Pool which do not result in such Asset Pool as so
described being different in any material respect from the Asset Pool as most recently described in
the Final Asset Pool Acquisition Certificate delivered on or prior to the fifth Business Day
preceding such Borrowing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A Notice of Borrowing, Borrowing Base Certificate and Final NPV Pool Certificate in
respect of the Related Asset Pool shall have been delivered to Agent, each in accordance with
Section&nbsp;2.2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Agent shall have been provided with such other information as to the Asset Pool as it
shall have reasonably requested.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A.6 Asset Pool. The Asset Pool shall be an Eligible Asset Pool.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A.7 Officer&#146;s Certificate.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower shall have delivered to Agent a certificate of an Executive Officer certifying
compliance with Sections&nbsp;6A.4 and 6A.6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to the representations and warranties applicable to the making of such Loan
set forth in Section&nbsp;6A.3, the making of each such Loan shall constitute a representation and
warranty by Borrower to Agent that, at the time of said Loan (and after giving effect thereto) all
conditions specified in Sections&nbsp;6A.4 and 6A.6 are satisfied at such time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6A.8 <U>Utilization Fee</U>. The Utilization Fee in respect of such Loans shall have been
paid in full to Agent.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All documents, agreements, instruments, certificates, financial statements, legal opinions,
analyses, reports and other papers required to be delivered by this Section&nbsp;6A shall be in form and
substance satisfactory to Agent and shall be delivered (with sufficient copies for each of Lenders)
to Agent at its Closing Office or as Agent may otherwise direct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>AFFIRMATIVE COVENANTS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower warrants and represents to and covenants to Lenders and Agent that, so long as this
Agreement is in effect and until all Loan Commitments are terminated and all of the Loans, together
with interest and all other obligations are paid in full, Borrower will (unless it shall have
first procured the written consent of the Majority Lenders to do otherwise) perform or cause to be
performed the obligations set forth in this Section&nbsp;7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <U>Financial Statements</U>. Borrower will furnish to Agent and each Lender:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As soon as available and in any event within 30&nbsp;days after the close of each calendar
month, as at the end of such month and for the period commencing at the end of the previous Fiscal
Year and ending with the end of such month, a consolidated and consolidating balance sheet of
FirstCity and the other members of the Consolidated Group
</DIV>

<P align="center" style="font-size: 10pt">18
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(including Borrower), and the related statement of operations for such period, all certified
by the CFO of FirstCity and each other member of the Consolidated Group (including Borrower) as
being prepared in accordance with GAAP and to present fairly the financial position and results of
operation of such Person for such period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As soon as available but not later than one hundred five (105)&nbsp;days after the close of
each Fiscal Year, as at the end of and for the Fiscal Year just closed, an audited consolidated
balance sheet of FirstCity and the other members of the Consolidated Group (including Borrower),
the related statement of operations (including income statement) and a reconciliation of capital
for such year, all certified on an unqualified basis by a firm of independent certified public
accountants selected by FirstCity and acceptable to Agent in Agent&#146;s sole and absolute discretion;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Concurrently with the delivery of the financial statements described in subsection (b)
above, a certificate of the aforesaid independent certified public accountants certifying to Agent
that based upon their examination of the affairs of FirstCity and the other members of the
Consolidated Group (including Borrower), performed in connection with the preparation of said
financial statements, Borrower is in compliance with the covenants set forth in Section&nbsp;8A hereof,
or, if Borrower is not in compliance, the nature of the noncompliance therewith;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Concurrently with delivery to FirstCity&#146;s stockholders, copies of all financial and other
information delivered by FirstCity to such Persons, including without limitation, its proxy
statements and annual reports to stockholders. Within two (2)&nbsp;Business Days after delivery to the
SEC by FirstCity, which in all cases shall be on a timely basis in accordance with the applicable
document and the Securities Laws, copies of all reports and other filings filed by FirstCity with
the SEC, including without limitation, all reports on Forms 10K, 10Q or 8K promulgated under the
Securities Exchange Act of 1934, as amended, and all registration statements filed under the
Securities Act of 1933, as amended;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Concurrently with delivery of the financial statements required pursuant to Section&nbsp;7.1(a)
and (b)&nbsp;hereof, a certificate executed by the President, Treasurer or CFO of Borrower and FirstCity
that (A)&nbsp;no Event of Default or Default has occurred and is continuing under this Agreement, (B)
Borrower is in compliance with the covenants set forth in Section&nbsp;8A hereof, setting forth
FirstCity&#146;s calculations with respect to such compliance; and (C)&nbsp;no event of default and no event
or condition which, with the passage of time or the giving of notice or both, would constitute an
event of default has occurred and is continuing under any other Indebtedness Instrument or, if such
an event or condition has occurred, or if an Event of Default or Default has occurred under this
Agreement, setting forth the details of such event and the action which Borrower proposes to take
with respect thereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Promptly upon receipt thereof, copies of all detailed financial reports and Management
Letters, if any, submitted to any member of the Consolidated Group by the Auditors, in connection
with each annual or interim audit of their respective books by such Auditors;
</DIV>


<P align="center" style="font-size: 10pt">19
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;As soon as possible and in any event (A)&nbsp;within 30&nbsp;days after a Loan Party, or any of the
respective ERISA Affiliates of any Loan Party, knows that any Termination Event described in clause
(i)&nbsp;of the definition of Termination Event with respect to any Pension Plan has occurred or is
expected to occur and (B)&nbsp;within 10&nbsp;days after a Loan Party or any of its ERISA Affiliates knows
that any other Termination Event with respect to any Pension Plan has occurred or is expected to
occur, a statement of the CFO of Borrower describing such Termination Event and the action, if any,
which the affected Loan Party or ERISA Affiliate proposes to take with respect thereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Promptly and in any event within five Business Days after receipt thereof by a Loan Party
or any of its ERISA Affiliates from the PBGC, copies of each notice received by such Person of the
PBGC&#146;s intention to terminate any Pension Plan or to have a trustee appointed to administer any
Pension Plan, any notice of noncompliance issued by the PBGC with respect to a proposed standard
termination of a Pension Plan, and any notice issued by the PBGC with respect to a proposed
distress termination of a Pension Plan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Promptly and in any event within 30&nbsp;days after the filing thereof with the IRS, copies of
each <U>Schedule&nbsp;B</U> (Actuarial Information) to the annual report (Form&nbsp;5500 Series) with
respect to each Pension Plan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Promptly and in any event within five Business Days after receipt thereof by a Loan Party
or any of its ERISA Affiliates from a Multiemployer Plan sponsor, a copy of each notice received by
such Person concerning (x)&nbsp;the imposition or amount of withdrawal liability under Subtitle E of
Title IV of ERISA or (y)&nbsp;any determination by a Multiemployer Plan sponsor that such Multiemployer
Plan is, or is expected to be, in &#147;reorganization&#148; (within the meaning of Section&nbsp;4241 of ERISA) or
&#147;insolvent&#148; (within the meaning of Section&nbsp;4245 of ERISA), or has incurred or is expected to incur
an &#147;accumulated funding deficiency&#148; (within the meaning of Section&nbsp;302 of ERISA or Section&nbsp;412 of
the Code);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Upon request of Agent made from time to time, a copy of any Pension Plan sponsored,
contributed to, participated in or maintained by FirstCity, Borrower or any ERISA Affiliate; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;With reasonable promptness, such other information respecting the business, properties,
operations, prospects or condition (financial or otherwise) of Borrower, any of its REO Affiliates
and any other Loan Party as Agent or any Lender may from time to time in writing reasonably
request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <U>Other Required Notices</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower shall notify Agent promptly after obtaining knowledge of:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;(i) except as otherwise previously disclosed, any event or occurrence which Borrower
has determined could have a Material Adverse Effect as a result of a loss or decline in
value of the Assets of Borrower, any of its REO Affiliates or any other Loan Party due to
casualty or any other adverse occurrence and the estimated (or actual, if available) amount
of such loss or decline;
</DIV>

<P align="center" style="font-size: 10pt">20
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the institution of (x)&nbsp;any suit or administrative proceeding which if determined
adversely to Borrower, any of its REO Affiliates or any other Loan Party is reasonably
likely to or could reasonably be expected to result in a Material Adverse Effect, and (y)
any other suit or administrative proceeding against Borrower, any of its REO Affiliates or
any other Loan Party in which the uninsured amount involved is $750,000 or more, such
notice to be given on or prior to the end of the calendar month in which the applicable
event occurs;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Borrower, any of its REO Affiliates or any other Loan Party becoming subject to
any Charge, restriction, judgment, decree or order which could reasonably be expected to
materially adversely affect the operations, financial conditions or business of such Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the commencement of any lockout, strike or walkout relating to any labor contract
to which Borrower or any other Loan Party is a party, if the same could reasonably be
expected to have a Material Adverse Effect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) except as otherwise previously disclosed, any event or occurrence in respect of
Borrower, any of its REO Affiliates or any other Loan Party which could reasonably be
expected to have a Material Adverse Effect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the occurrence of a default by Borrower, any of its REO Affiliates or any other
Loan Party under any agreement, document or instrument to which such Person is a party which
could reasonably be expected to have a Material Adverse Effect, or (y)&nbsp;the occurrence of any
default by Borrower or any other Loan Party which could reasonably be expected to materially
and adversely affect any such Person&#146;s ability to perform its respective obligations under
the Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the filing of a petition by or against Borrower, any of its REO Affiliates or any
other Loan Party under any section or chapter of the United States Bankruptcy Code or any
similar law or regulation or if any such Person shall make an assignment for the benefit of
its creditors or if any case or proceeding is filed by or against any such Person for its
dissolution or liquidation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) except as contemplated in the Custodian Agreement, the making of an application
for the appointment of a receiver, trustee or custodian for any of the Assets of Borrower,
any of its REO Affiliates or any other Loan Party;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the exercise by any holder of any option, warrant or right to purchase any Equity
Interest in Borrower or any other Loan Party;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the issuance or sale of any Securities by Borrower, any of its REO Affiliates or
any other Loan Party, whether or not permitted pursuant to the terms hereof; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the commencement of the occurrence of any REO Post&#150;25% Time.
</DIV>

<P align="center" style="font-size: 10pt">21
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;On or before each Payment Date, Borrower shall deliver to Agent (i)&nbsp;Waterfall Certificates
in respect of each Asset Pool, certified by an Executive Officer of Borrower; and (ii)&nbsp;a Summary
Waterfall Certificate in respect of all Asset Pools, certified by an Executive Officer of Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;On or before each Payment Date, Borrower shall deliver to Agent a Portfolio Protection
Expense Report in form and detail satisfactory to Agent. Borrower shall provide to Agent such
other information with respect thereto as Agent may reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;On or before each Payment Date, Borrower shall deliver to Agent a Borrowing Base
Certificate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Borrower shall give Agent notice of the transfer of any property by Borrower to any of its
REO Affiliates within 30&nbsp;days of any such transfer and such other information as Agent may request
with respect thereto promptly following such request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <U>Payment of Charges</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower and each other Loan Party shall pay promptly when due and discharge all Charges.
In the event Borrower or such Loan Party at any time or times hereafter, shall fail to pay the
Charges or to obtain such discharges as required herein, Borrower shall so advise Agent thereof in
writing. Agent may, without waiving or releasing any obligation, covenant or agreement of Borrower
or any Event of Default or Default, in its sole and absolute discretion, at any time or times
thereafter, make such payment, or any part thereof, or obtain such discharge and take any other
action with respect thereto which Agent deems advisable. All sums so paid by Agent and any
expenses relating thereto, including reasonable attorneys&#146; fees, court costs, expenses and other
charges, shall be part of the Obligations, payable by Borrower to Agent on demand. Notwithstanding
the foregoing, Borrower or any other Loan Party may permit or suffer the Charges to attach to its
Assets on the conditions that: (i)&nbsp;Borrower or such Loan Party, in good faith, shall be contesting
the same in an appropriate proceeding diligently pursued; (ii)&nbsp;enforcement thereof against any
Assets of Borrower or such Loan Party, as the case may be, shall be stayed; and (iii)&nbsp;appropriate
reserves therefor shall have been established on the Records of Borrower or such Loan Party, as
the case may be, in accordance with GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <U>Insurance</U>. Borrower, each of its REO Affiliates and each other Loan Party, at
each of such respective Person&#146;s sole cost and expense, shall keep and maintain: (i)&nbsp;policies of
insurance against all hazards and risks ordinarily insured against by other owners or users of
properties in similar business or as reasonably requested in writing by Agent; and (ii)&nbsp;public
liability insurance relating to such Person&#146;s ownership and use of its Assets; <U>provided</U>,
<U>however</U>, no such Person shall be required to maintain the insurance referred to in clause
(i)&nbsp;as to any Asset if the net present value of the Asset is less than $50,000. All such policies
of insurance shall be in form, with insurers and in such amounts as may be satisfactory to Agent.
Borrower shall deliver to Agent the original (or certified) copy of each policy of insurance, and
evidence of payment of all premiums for each such policy. Such policies of insurance of Borrower
and its REO Affiliates (except those of public liability) shall contain an endorsement, in form and
substance acceptable to Agent, showing losses payable to Agent for the ratable benefit of Lenders.
Such endorsement or an independent instrument furnished to Agent, shall provide that
</DIV>

<P align="center" style="font-size: 10pt">22
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">all insurance companies will give Agent at least thirty (30)&nbsp;days prior written notice before
any such policy or policies of insurance shall be altered or canceled and that no act or default of
Borrower, such REO Affiliate or any other Person shall affect the right of Agent for the ratable
benefit of Lenders, to recover under such policy or policies of insurance in case of loss or
damage. Upon request by Agent and, whether or not such request is made, upon the occurrence of an
Event of Default or Default, Borrower hereby directs all insurers under such policies of insurance
(except those of public liability) to pay all proceeds payable thereunder directly to Agent. Upon
request by Agent and upon the occurrence of an Event of Default or Default, Borrower, irrevocably,
appoints Agent (and all officers, employees or agents designated by Agent) as Borrower&#146;s true and
lawful agent and attorney-in-fact for the purpose of making, settling and adjusting claims under
such policies of insurance, endorsing the name of Borrower on any check, draft, instrument or other
item of payment for the proceeds of such policies of insurance and for making all determinations
and decisions with respect to such policies of insurance. In the event Borrower or any of its REO
Affiliates at any time or times hereafter shall fail to obtain or maintain any of the policies of
insurance required above or to pay any premium in whole or in part relating thereto, then Agent,
without waiving or releasing any obligation, covenant or agreement of Borrower or any Event of
Default or Default, may at any time or times thereafter (but shall be under no obligation to do so)
obtain and maintain such policies of insurance and pay such premium and take any other action with
respect thereto which Agent deems advisable. All sums so disbursed by Agent, including reasonable
attorneys&#146; fees, court costs, expenses and other charges relating thereto, shall be part of the
Obligations, payable by Borrower to Agent on demand. Agent shall also be named as an additional
insured with respect to Borrower&#146;s and each of its REO Affiliates&#146; liability insurance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <U>Maintenance of Records</U>. Borrower, each of its REO Affiliates and each other Loan
Party will keep at all times books of record and account in which full, true and correct entries
will be made of all dealings or transactions in relation to its business and affairs, and each such
Person will provide, and will cause each such other Person to provide, adequate protection against
loss or damage to such books of record and account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <U>Preservation of Existence</U>. Borrower and each other Loan Party will maintain and
preserve its respective corporate, limited liability company or partnership existence, rights,
privileges and franchises in its jurisdiction of organization, and qualify and remain qualified to
do business in, and maintain its rights, privileges and franchises in each other jurisdiction which
in the opinion of the respective board of directors, manager, general partner or other governing
Person thereof continue to be advantageous to it and shall comply in all material respects with all
applicable Legal Requirements. Without limiting the generality of the foregoing, Borrower agrees
to (and to cause each such other Person to) qualify to do business as a foreign corporation in each
jurisdiction where the nature of its business and the operations conducted by it therein require it
to be so qualified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <U>Preservation of Assets</U>. Borrower and each Loan Party other than an REO Affiliate
will keep its property material to the conduct of its business in good repair, working order and
condition and from time to time make all needful and proper repairs, renewals, replacements,
extensions, additions, betterments and improvements thereto, so that the business carried on by it
may be conducted at all times in accordance with prudent business management.
</DIV>

<P align="center" style="font-size: 10pt">23
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <U>Inspection of Books and Assets</U>. Borrower, each of its REO Affiliates and each
other Loan Party shall permit Agent, Lenders and each of their respective representatives
reasonable access during normal business hours to its properties and personnel, and shall disclose
and make available to Agent and Lenders all books, papers and records relating to the Assets, stock
ownership, properties, operations, obligations, and liabilities of such Person, including, but not
limited to, all books of account (including the general ledger), tax records, minute books of
meetings of boards of directors (and any committees thereof) and shareholders, organizational
documents, bylaws, material contracts and agreements, filings with any regulatory authority,
accountants&#146; work papers (other than those that are the property of its independent outside
auditors), litigation files, loan files, plans affecting employees, and any other business or
prospects in which Lenders may have a reasonable interest in connection with the Loans, provided
that such access shall be reasonably related to the transactions contemplated hereby and not unduly
interfere with normal operations, and provided further that in the event that any of the foregoing
are in the control of any third party, Borrower shall use its reasonable best efforts to cause such
third party to provide access to such materials to Agent and Lenders who shall request the same.
In the event that Borrower is prohibited by law from providing any of the access referred to in the
preceding sentence to Agent and Lenders, it shall use its commercially reasonable efforts to obtain
waivers thereof promptly so as to permit such access. Borrower shall make the directors, officers,
employees and agents and authorized representatives (including counsel and independent public
accountants) of Borrower and its REO Affiliates to confer with Agent and Lenders and their
respective representatives, provided that (i)&nbsp;such access shall be reasonably related to the
transactions contemplated hereby and not unduly interfere with normal operations and (ii)&nbsp;unless a
Default or Event of Default exists, counsel to Borrower shall be permitted to be present at any
meeting between Borrower&#146;s independent public accountants and Agent or Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <U>Payment of Indebtedness</U>. Borrower and each other Loan Party will duly and
punctually pay, or cause to be paid, the principal of and the interest on all Indebtedness
heretofore or hereafter incurred or assumed by such Person, when and as the same shall become due
and payable, <U>provided</U> that neither Borrower nor any other Loan Party shall be required to
pay any Indebtedness (other than Indebtedness incurred under this Agreement or any other Loan
Document) while the same is being contested by it in good faith and by appropriate proceedings so
long as Borrower or other Loan Party shall have set aside on its books appropriate reserves in
accordance with GAAP with respect thereto and title to any property of Borrower or the applicable
Loan Party is not jeopardized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 <U>Further Assurances</U>. Borrower, each of its REO Affiliates and each other Loan
Party will make, execute or endorse, and acknowledge and deliver or file, all such vouchers,
invoices, notices, and certifications and additional agreements, undertakings, conveyances,
transfers, assignments, or further assurances, and take any and all such other action, as Agent or
any Lender may, from time to time, deem necessary or proper in connection with this Agreement, the
obligations of such Person hereunder or under the Notes or any of the other Loan Documents to which
such Person is a party, or for the better assuring and confirming unto Agent on behalf of Lenders,
with the Requisite Priority, all or any part of the security for the Obligations.
</DIV>

<P align="center" style="font-size: 10pt">24
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 <U>Notice of Default</U>. Forthwith and in any event within five days after Borrower
shall have obtained knowledge of the existence of a Default or Event of Default, Borrower will
deliver to Agent a certificate signed by an Executive Officer of Borrower setting forth the details
of such event, the period of existence thereof, and what action Borrower proposes to take with
respect thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 <U>Reserves</U>. Borrower and each other Loan Party will set up on its books of its
earnings, reserves for bad debt in accordance with GAAP and in an aggregate amount deemed adequate
in the judgment of such Person and accepted by the outside auditors in their annual audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 <U>Representation and Warranties; Covenants as to Other Persons, Amendment of
Schedules</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;To the extent any representation or warranty contained herein refers to an event or state
of facts which exists on or after the date hereof, on or after the Execution Date or on or after
the Effective Date or on or after the date of any Loan and shall exist during the term hereof or at
the time of any or each Loan hereunder, to the extent not already a covenant, said representation
or warranty shall be deemed to be an affirmative covenant by Borrower to take all actions, omit to
take such actions or cause such actions to be taken which shall be necessary or desirable to cause
such representation or warranty to be true and accurate at all times during the term hereof. To
the extent any representation, warranty or covenant herein (including the covenants set forth in
Section&nbsp;8 and in this Section&nbsp;7) relates to any REO Affiliate or any other Loan Party, it shall be
deemed to be a covenant of Borrower to cause such Person to comply with or otherwise perform such
representation, warranty or covenant, whether or not Borrower has the legal, corporate or other
ability to cause such compliance or performance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No delivery of any new or supplemented Schedule to this Agreement (whether or not such
delivery is required by this Agreement or any other Loan Document) shall waive or cure any Default
or Event of Default which would occur absent such delivery (other than a Default or Event of
Default arising solely from the breach of an obligation to deliver such Schedule and other than as
may be set forth in writing in a consent or amendment (if any) pursuant to which any such new or
supplemented Schedule is delivered).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.14 <U>Perform Obligations</U>. Borrower, each of its REO Affiliates and each other Loan
Party shall duly and punctually pay and perform each of its obligations under the Loan Documents to
which it is a party, in accordance with the terms hereof and thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.15 <U>New Debt; Equity Interests</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower shall ensure that at the time that Borrower acquires an Equity Interest in any
Person, including any REO Affiliate, such Equity Interest is subject to a perfected security
interest of the Requisite Priority in favor of Agent and Lenders and, in connection therewith,
shall take such action and execute and deliver such pledge agreements or amendments to pledge
agreements and such other instruments and agreements, including, without limitation, delivery of
notices of lien to the pledged entity, acknowledgement of such notice from the pledged entity,
delivery of the original certificates of certificated securities to Agent, together

<P align="center" style="font-size: 10pt">25
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">with an assignment separate from certificate therefor, in each case in form and substance
satisfactory to the Agent, as the Agent may require. The provisions of this Section&nbsp;7.15(a) are in
addition to, and not in limitation of, other provisions of this Agreement limiting the investments,
the acquisition of Equity Interests and the acquisition of other Assets by Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Borrower shall ensure that at the time that Borrower makes any loan or acquires any rights
to any other indebtedness or acquires any note, bond or other indebtedness instrument (any such
note, bond or other instrument, a &#147;<U>Subject Debt Instrument</U>&#148;), all rights of Borrower with
respect to such loan, other indebtedness and Subject Debt Instrument are subject to a perfected
security interest of the Requisite Priority in favor of Agent and Lenders and, in connection
therewith, shall take such action and execute and deliver such pledge agreements or amendments to
pledge agreements and such other instruments and agreements, including, delivery of the Subject
Debt Instruments to the Custodian, together with an assignment separate from such Subject Debt
Instrument or an allonge thereto and an Assignment, as the Agent may require. The provisions of
this Section&nbsp;7.15 are in addition to, and not in limitation of, other provisions of this Agreement
limiting investments and the acquisition of other Assets by Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.16 <U>Cooperation</U>. At Agent&#146;s request, Borrower and each of the other Loan Parties
will meet from time to time with (and provide then available financial information to) other
financial institutions to which any Lender may wish to grant participations in the Loans, including
potential Lender Assignees and potential Purchasing Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17 <U>Approvals and Consents</U>. In the event that any approval, consent or non-objection
need be obtained by Borrower, any of its REO Affiliates or any other Loan Party from, or a notice
or other filing need be filed by Borrower or any such other Person, with, any Governmental
Authority in connection with the execution, delivery and performance of this Agreement or any Loan
Document by Borrower or any such other Person, Borrower shall take and cause such other Person (as
applicable) to take, all actions reasonably necessary to obtain any such approval, consent or
non-objection or file such notice or other filing as promptly as practicable, and Lenders agree to
cooperate with Borrower in obtaining or filing the same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.18 <U>Stay, Extension and Usury Laws</U>. Borrower covenants (to the extent that it may
lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law or other law which would
prohibit or forgive it from paying all or any portion of the principal of, premium, if any, or
interest on the Notes, wherever enacted, now or at any time hereafter in force, or which may affect
the covenants or the performance of its obligations under the Notes, and Borrower (to the extent it
may lawfully do so) hereby expressly waives all benefits or advantages of any such law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.19 <U>Compliance with Laws</U>. Borrower shall comply with, and shall cause each of its
REO Affiliates to comply with, all laws, rules, regulations and governmental orders (federal, state
and local), including all Environmental Laws, having applicability to it or to the business or
businesses at any time conducted by it, where the failure to so comply would have, or could
reasonably be expected to have, a Material Adverse Effect.
</DIV>

<P align="center" style="font-size: 10pt">26
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.20 <U>Lockbox Account</U>. Borrower shall instruct all Obligors to remit all payments on
account of Assets comprising any Asset Pool directly to, and Borrower, each of its REO Affiliates,
the Servicer and each of their respective agents shall promptly remit or cause to be remitted any
such payments received by them to, the Lockbox Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.21 <U>REO Affiliates</U>. All REO Properties shall be owned by an REO Affiliate; it being
understood that Borrower will not be taking title to any REO Properties. Promptly upon its
acquiring title to any REO Property, Borrower agrees (i)&nbsp;to cause the applicable REO Affiliate to
execute and deliver to Borrower a REO Note, which shall be promptly endorsed by Borrower to the
Agent and delivered to the Custodian, and REO Security Documents granting to Borrower a first and
prior Lien upon each such REO Property, or in cases where such asset was subject to a prior Lien at
the time Borrower purchased the financial instrument secured by such REO Property and such prior
Lien was disclosed to Lenders in writing prior to the applicable Borrowing Date, a Lien subject
only to Permitted Prior Liens, and (ii)&nbsp;to promptly execute and deliver to the Custodian REO
Security Documents with respect thereto together with an Assignment relating thereto. Agent has
agreed to refrain from requiring the recording of such REO Security Documents and Assignments
unless and until there shall have occurred an Event of Default; <U>provided, however</U>, Agent
shall have the right, at any time after the occurrence of an Event of Default to record any and all
of such REO Security Documents and such Assignments, at the expense of Borrower, with such filing
offices as may be required by Agent to evidence Agent&#146;s Liens on such REO Properties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>NEGATIVE COVENANTS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower warrants and represents to and covenants to Lenders and Agent that, so long as this
Agreement is in effect and until the Loan Commitments are terminated and all of the Loans, together
with interest and all other obligations incurred hereunder are paid in full, Borrower will, and
will cause each of its REO Affiliates and each other Loan Party to, perform the obligations set
forth in this Section&nbsp;8 (unless it shall have first procured the written consent of the Majority
Lenders to do otherwise) which are applicable to such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <U>Amend Charter Documents; Engage in Same Type of Business</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Neither Borrower nor any of its REO Affiliates shall (i)&nbsp;make or consent to any change:
(i)&nbsp;in its Charter Documents or in its capital structure or (ii)&nbsp;make any change in any of its
business objectives, purposes and operations, including by undertaking additional business
activities or (iii)&nbsp;waive any material right under its Charter Documents. Neither Borrower nor any
of the other Loan Parties shall engage in any business not of the same general type as those
conducted by it on the Execution Date. Without limiting the foregoing, Borrower shall not engage in
any business other than purchasing Asset Pools in accordance with the terms hereof, and causing
such Asset Pools to be serviced in accordance with Section&nbsp;8.21.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <U>Liens</U>. Neither Borrower nor any of its REO Affiliates shall grant, contract,
create, incur, assume or suffer or permit to exist any Lien upon or with respect to, or by transfer
or otherwise subject to the prior payment of any indebtedness (other than the Loans), any of its
Assets, whether now owned or hereafter acquired, except (i)&nbsp;Permitted Liens or (ii)&nbsp;in the case of
an REO Affiliate, Liens in favor of Borrower and non-consensual Charges.
</DIV>

<P align="center" style="font-size: 10pt">27
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <U>Other Indebtedness</U>. Neither Borrower nor any of its REO Affiliates will contract,
create, incur, assume or suffer to exist any Indebtedness, except:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Loans;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) other Indebtedness existing on the Effective Date listed on <U>Schedule&nbsp;10.19</U>
to this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) unsecured trade payables incurred in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of any REO Affiliate, Indebtedness owed to Borrower and trade payables
incurred in the ordinary course of business and, to the extent constituting Indebtedness,
Charges incurred by such REO Affiliate; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Indebtedness to the extent permitted by clause (i)&nbsp;of Section&nbsp;8.11.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <U>Sell Assets</U>. Neither Borrower nor any of its REO Affiliates shall assign, sell or
transfer any of its Assets to any Person, other than in the ordinary course of business and for
fair and adequate consideration; <U>provided </U>that the foregoing shall not restrict (i)&nbsp;an REO
Affiliate from transferring its Assets to the Person which owns all of its equity interests or to
any other Person which is not a Subsidiary or Affiliate of Borrower, FirstCity or such REO
Affiliate or (ii)&nbsp;Borrower from transferring distressed notes secured by real estate (and such real
estate security) to any of its permitted REO Affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <U>Attachment</U>. Neither Borrower nor any of its REO Affiliates shall permit or suffer
any levy, attachment, seizure, or restraint to be made of, upon or affecting any of its Assets or
permit any of its Assets to be subject to a writ of distress, if the same would have a Material
Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <U>Receiver</U>. Except as contemplated by the Custodian Agreement, neither Borrower nor
any of its REO Affiliates shall permit or suffer any receiver, trustee or assignee for the benefit
of creditors, or any other custodian to be appointed to take possession of all or any of its
Assets, or for all or any of its Assets to come within the possession of any receiver, trustee,
assignee for the benefit of creditors or custodian, if the same would have a Material Adverse
Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <U>Mergers and Acquisitions</U>. Borrower shall not wind up, liquidate or dissolve its
affairs or merge or consolidate with any Person (or agree to do any of the foregoing at any future
time) or fail to maintain its corporate, partnership or limited liability company or other formal
existence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <U>Stock Transfers</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Neither Borrower nor any of its REO Affiliates shall (x)&nbsp;grant any option, warrant or
other right to purchase any Equity Interest in Borrower or such REO Affiliate or (y)&nbsp;issue any
other Equity Interests other than, in the case of REO Affiliates, upon its formation, or (ii)
transfer any Equity Interests (whether its own or Equity Interests issued by any Person other than
itself) without, in each case, the prior written consent of Majority Lenders.
</DIV>


<P align="center" style="font-size: 10pt">28
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Neither FC Commercial nor FH Assets shall grant any option, warrant or other right to
purchase any Equity Interest in Borrower or transfer any Equity Interests in Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 <U>Adverse Transactions</U>. Neither Borrower, any of its REO Affiliates nor any other
Loan Party shall enter into any transaction which materially and adversely affects its ability to
perform its obligations under the Loan Documents or to pay any other Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 <U>Investments</U>. Neither Borrower nor any of its REO Affiliates shall make any
investment in Equity Interests of any Person, or otherwise have any subsidiary, other than, with
respect to Borrower, REO Affiliates (and general partnerships formed solely to serve as general
partner of one or more REO Affiliates) listed on Schedule&nbsp;10.32 and REO Affiliates (and general
partnerships formed solely to serve as general partner of one or more REO Affiliates) formed after
the Closing Date with Agent&#146;s prior written consent. As used in this Section&nbsp;8.10 &#147;invest&#148; shall
include, but not be limited to, contributions to the capital of a Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 <U>Loan; Guaranty Debt</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth on <U>Schedule&nbsp;8.11</U>, neither Borrower nor any of its REO
Affiliates shall make any loan to any Person or, other than the acquisition of Asset Pools as
contemplated in this Agreement, otherwise invest in or acquire any note, bond, other debt
instruments or obligations of or issued by any Person except (subject to compliance with Section
7.15) (i)&nbsp;the accepting by Borrower of a note from its REO Affiliate evidencing the deferred
purchase price of a mortgage note sold to such REO Affiliate by Borrower or a portion of the
purchase price for the real property in the event that the REO Affiliate acquires the real property
at a foreclosure sale or otherwise by purchase from Borrower, (ii)&nbsp;the accepting by an REO
Affiliate of a note from the transferee of real property sold by such REO Affiliate in the ordinary
course of business evidencing a portion of the deferred purchase price of such property, (iii)&nbsp;a
loan made by an REO Affiliate to a purchaser of an REO Property for all or part of the purchase
price of the REO Property, or (iv)&nbsp;with respect to Borrower, in satisfaction of Obligor Funding
Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth on <U>Schedule&nbsp;8.11(b)</U>, neither Borrower nor any of its REO
Affiliates shall enter into or issue any Guaranty Equivalents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12 <U>Issue Power of Attorney</U>. Except pursuant to the other provisions of this
Agreement or the Security Documents to which Agent is a party, or as set forth in the Revolving
Acquisition Agreement, Borrower shall not issue any power of attorney or other contract or
agreement giving any Person power or control over the day-to-day operations of any such Person&#146;s
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13 <U>Amendment of Credit Agreements</U>. Neither Borrower nor any of its REO Affiliates
shall amend, modify or extend (or agree to amend, modify or extend or give any notice of any sort
the result of which would amend, modify or extend (whether or not, without limitation, any such
extension would occur pursuant to a renewal or extension option contained therein or any other term
thereof)) any note, credit agreement, security agreement or other document, instrument or agreement
evidencing or securing Indebtedness of such entity; <U>provided </U>
</DIV>

<P align="center" style="font-size: 10pt">29
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>that</U> Borrower or its REO Affiliates may extend the term of any credit facilities or
loans permitted under the terms of this Agreement under financial terms no more onerous than those
provided for in the applicable existing credit facility or then-existing market credit terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14 <U>Use of Proceeds</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The proceeds of the Effective Date Loan shall not be used by for any purpose other than to
repay an advance made by FC Commercial to Borrower and to make a cash distribution to FC Commercial
in an aggregate amount equal to the amount of the Effective Date Loan, which repayment and
distribution shall, in turn, be used by FC Commercial and FirstCity to repay advances in like
amount made by FirstCity and the lenders under the Revolving Acquisition Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The proceeds of Loans other than the Effective Date Loan shall not be used by Borrower for
any purpose other than to pay all or a portion of the Acquisition Price (and, if requested by
Borrower in the Notice of Borrowing, any fee under this Agreement (including the Utilization Fee)
in respect of the related Loans) of the Asset Pool identified in the related Notice of Borrowing to
the seller of such Asset Pool previously identified to Agent and Lenders pursuant to the terms
hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15 <U>Payments for Consent</U>. Neither Borrower, any of its REO Affiliates nor any other
Loan Party shall, directly or indirectly, pay or cause to be paid any consideration, whether by way
of interest, fee or otherwise, to any Lender as an inducement to any consent, waiver or amendment
of any of the terms or provisions of any Loan Document unless such consideration is paid to all
Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.16 <U>Limitations on Dividends and Other Payment Restrictions</U>. Borrower, each of its
REO Affiliates and each other Loan Party shall not create, assume or otherwise cause or suffer to
exist or to become effective any consensual encumbrance or restriction on the ability of any such
Person to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay any dividends or make any other distribution on its Stock or other Equity
Interests to Borrower or any of its REO Affiliates;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) make payments on or in respect to any Indebtedness owed to Borrower or its REO
Affiliates; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) make loans or advances to Borrower or any of its REO Affiliates or to guarantee
Indebtedness of Borrower or any of its REO Affiliates;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other than, in the case of (ii)&nbsp;and (iii),
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;restrictions with respect to an REO Affiliate imposed pursuant to an agreement which has
been entered into for the sale or disposition of all or substantially all the assets (which term
may include the capital stock) of such REO Affiliate provided that such restrictions terminate upon
the closing of such sale or disposition or termination of such agreement; and
</DIV>


<P align="center" style="font-size: 10pt">30
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;restrictions under this Agreement and the Revolving Acquisition Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.17 <U>Accounting Changes</U>. Neither Borrower, any of its REO Affiliates nor any other
Loan Party will make any significant change in (x)&nbsp;accounting treatment and reporting practices
except as permitted or required by GAAP or Legal Requirements or (y)&nbsp;unless Agent consents thereto
in writing (which consent shall not be unreasonably withheld), its Fiscal Year; <U>provided
</U>that in any such case, if any such change would affect any computation required by Section&nbsp;8A
hereof or any amount required to be paid by Section&nbsp;2.4 hereof, appropriate amendment shall have
been made to this Agreement with respect thereto (or, in the case of change required at such time
by a Legal Requirement, appropriate amendment is made to this Agreement contemporaneous with such
change and, and if such amendment is not made, Borrower shall be deemed in default under Section
8A).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.18 <U>Related Transactions</U>. Neither Borrower nor any of its REO Affiliates shall enter
into any transactions with any Affiliate or Associate or Parent, including, without limitation,
agreements for the purchase, sale or exchange of property or the rendering of any services to or by
any Affiliate or Associate of Borrower or any Parent, or enter into, assume or suffer to exist any
employment, management, administration, advisory or consulting contract with any Affiliate or
Associate of Borrower or any Parent or, in each of the foregoing cases, with any officer, director
or partner of any Affiliate or Associate of Borrower or any Parent unless, in any such case, such
transaction (a)&nbsp;is otherwise not in violation of this Agreement or any other Loan Document and (b)
is in the ordinary course of its business and is upon fair and reasonable terms no less favorable
to Borrower or such REO Affiliate (as the case may be) than such Person would obtain in a
comparable arm&#146;s-length transaction with a Person not an Affiliate or Associate; <U>provided</U>,
that the foregoing shall not restrict Borrower from entering into the Services Agreement, the
Lockbox Agreement, the Custodian Agreement, or any transaction contemplated by the definition of
&#147;REO Affiliate&#148; to sell real estate (or distressed notes secured by real estate) to its REO
Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.19 <U>Leasebacks</U>. Neither Borrower nor any of its REO Affiliates will enter into any
arrangement with any bank, insurance company or other lender or investor providing for the leasing
to any of the foregoing Persons of real property (i)&nbsp;which at the time has been or is to be sold or
transferred by any of the foregoing Persons to such lender or investor, or (ii)&nbsp;which has been or
is being acquired from another Person by such lender or investor or on which one or more buildings
or facilities have been or are to be constructed by such lender or investor for the purpose of
leasing such property to Borrower or such REO Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.20 <U>Compliance with ERISA</U>. Neither Borrower nor any of its REO Affiliates (each, an
&#147;<U>Applicable Person</U>&#148;) will (i)&nbsp;terminate, or permit any of its REO Affiliates to terminate,
any Pension Plan so as to result in any material (in the opinion of Agent or the Majority Lenders)
liability of any such Person or Subsidiary to the PBGC, (ii)&nbsp;permit to exist the occurrence of any
Reportable Event (as defined in Section&nbsp;4043 of ERISA), or any other event or condition, which
presents a material (in the opinion of Agent or the Majority Lenders) risk of such a termination by
the PBGC of any Pension Plan, (iii)&nbsp;allow, or permit any of its REO Affiliates to allow, the
aggregate amount of &#147;benefit liabilities&#148; (within the meaning of Section&nbsp;4001(a)(16) of ERISA)
under all Pension Plans of which any Applicable Person or any ERISA Affiliate is a
</DIV>

<P align="center" style="font-size: 10pt">31
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;contributing sponsor&#148; (within the meaning of Section&nbsp;4001(a)(13) of ERISA) to exceed
$100,000, (iv)&nbsp;allow, or permit any of its REO Affiliates to allow, any Plan to incur an
&#147;accumulated funding deficiency&#148; (within the meaning of Section&nbsp;302 of ERISA or Section&nbsp;412 of the
Code), whether or not waived, (v)&nbsp;engage, or permit any of its REO Affiliates or any Plan to
engage, in any &#147;prohibited transaction&#148; (within the meaning of Section&nbsp;406 of ERISA or Section&nbsp;4975
of the Code) resulting in any material (in the opinion of Agent or the Majority Lenders and
considered by itself or together with all other such liabilities of Borrower and all ERISA
Affiliates) liability to any Applicable Person or any ERISA Affiliate, (vi)&nbsp;allow, or permit any of
its Subsidiary to allow, any Plan to fail to comply with the applicable provisions of ERISA and the
Code in any material respect, (vii)&nbsp;fail, or permit any of its REO Affiliates to fail, to make any
required contribution to any Multiemployer Plan, or (viii)&nbsp;completely or partially withdraw, or
permit any of its REO Affiliates to completely or partially withdraw, from a Multiemployer Plan, if
such complete or partial withdrawal will result in any material (in the opinion of Agent or the
Majority Lenders) withdrawal liability under Title IV of ERISA. No Loan Party, other than
FirstCity has or shall at any time have any employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.21 <U>Servicing</U>. Borrower shall ensure that FC Servicing is the servicer for each
Asset Pool.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.22 <U>Foreclosures</U>. Without Agent&#146;s prior written consent, neither Borrower nor any
REO Affiliate shall take title to, or otherwise commence foreclosure proceedings against, any real
property securing any Collateral Loan without having first delivered to Agent a new environmental
site assessment(s) (or a copy of the environmental site assessment previously obtained with respect
to the real property in question and which is accompanied by such updates as Agent may reasonably
require) satisfactory in all respects to Agent and prepared by a qualified environmental firm
reasonably satisfactory to Agent, with respect to the real property in question and received
Agent&#146;s written acknowledgment that the results thereof are acceptable to Agent. Notwithstanding
the foregoing, with respect to any single family residence or multifamily residential property with
four (4)&nbsp;or less units (&#147;<U>Residential 1-4&#146;s</U>&#148;) the Borrower or REO Affiliate shall not be
required to obtain an environmental site assessment, but instead may prepare, or cause the Servicer
to prepare or direct the preparation of, a preliminary environmental evaluation using a
standardized evaluation form, absent any known, suspected or observable environmental risks (other
than the potential presence of radon, lead paint and/or asbestos containing materials), in which
case an environmental site assessment shall be required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8A <U>FINANCIAL COVENANTS</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower warrants and represents to and covenants to Lenders and Agent that, so long as this
Agreement is in effect and until the Loan Commitments are terminated and all of the Loans, together
with interest and all other obligations incurred hereunder are paid in full:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;FirstCity and its Subsidiaries, on a consolidated basis, shall, at the end of each fiscal
quarter:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;(i) maintain a ratio of Indebtedness to Tangible Net Worth equal to or less than 2.00
to 1.00 for the last day of the fiscal quarter then ended; and
</DIV>

<P align="center" style="font-size: 10pt">32
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;(ii) maintain a ratio of EBITDA to Interest Coverage not less than 2.50 to 1.00 for the
four fiscal quarters then ended; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;(iii) maintain a Tangible Net Worth equal to or greater than $75,000,000 on the last
day of each fiscal quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;FirstCity and its Subsidiaries will not make any Capital Expenditures in an aggregate
amount (excluding the capitalization of insurance premiums) in excess of $1,000,000 during any
fiscal year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All covenants set forth in this Section&nbsp;8A shall be measured quarterly, upon receipt of
the Financial Statements delivered to Agent pursuant to Section&nbsp;7.1(a), and also upon receipt of
the annual consolidated Financial Statements delivered in accordance with Section&nbsp;7.1(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event that any Financial Statement required to be delivered pursuant to Section
7.1(a) or Section&nbsp;7.1(b) or any certificate required to be delivered pursuant to Section&nbsp;7.1(e)
hereof (in the case of any such certificate required in connection with monthly financial
statements, at the end of any month which is also a fiscal quarter end date) is not delivered
within 10&nbsp;days after the date required therefor pursuant to such section, Borrower shall be deemed
to be in default of this Section&nbsp;8A for purposes of Section&nbsp;9.3 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>EVENTS OF DEFAULT</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence of any of the following specified events (each an &#147;<U>Event of
Default</U>&#148;):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <U>Principal and Interest</U>. Borrower shall default in the due and punctual payment of
any principal, interest or other amount due hereunder or under any Note or any other Loan Document;
provided, that the failure to make any interest payment when due shall not constitute an Event of
Default if such interest payment is made within three days of the date when due and Borrower has
not been late in making any other interest payment on any Note more than once in the preceding 12
months; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <U>Representations and Warranties</U>. Any representation, warranty, statement, report
or certificate made or delivered by Borrower or any other Loan Party or any officer, director,
manager or authorized employee or agent thereof herein or in any other Loan Document or otherwise
in writing by such Person in connection with any of the foregoing or in any certificate, report or
other statement furnished pursuant to or in connection with any of the foregoing, shall be breached
or shall prove to be untrue in any material respect; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <U>Negative and Certain Other Covenants</U>. Borrower, any of its REO Affiliates, any
other Loan Party or any other Person covered thereby shall fail to perform or observe any term,
covenant or agreement to be performed or observed by Borrower, such REO Affiliate, Loan Party or
other Person, as the case may be, pursuant to Section&nbsp;8 or Section&nbsp;8A; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <U>Other Covenants</U>. Borrower, any of its REO Affiliates, any other Loan Party or any
other Person covered thereby shall fail to perform or observe, any term, covenant or
</DIV>

<P align="center" style="font-size: 10pt">33
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">agreement to be performed or observed by Borrower, such REO Affiliate, Loan Party or other
Person, as the case may be, pursuant to any of the provisions of this Agreement (other than those
referred to in Sections&nbsp;9.1, 9.2 or 9.3) or any other Loan Document and such default (which shall
be capable of cure) shall continue unremedied for a period of thirty days, after the earlier of the
date on which (x)&nbsp;Agent or any Lender gives Borrower notice thereof, or (y)&nbsp;Borrower obtains
knowledge of such default; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <U>Other Indebtedness</U>. Any Applicable Indebtedness of Borrower, any of its REO
Affiliates or any other Loan Party (i)&nbsp;shall be declared to be or shall become due and payable
prior to the stated maturity thereof or (ii)&nbsp;shall not be paid as and when the same becomes due and
payable; or any other event of default shall occur and be continuing under any other Indebtedness
Instrument (other than a Loan Document) relating to any Indebtedness of Borrower in excess of
$1,000,000, any other Loan Party in excess of $15,000,000, or any REO Affiliate in excess of
$500,000 and, if a cure period is applicable thereto, such default shall not be cured within 15
days after the occurrence thereof; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <U>Revolving Acquisition Agreement</U>. There shall be a continuing default under the
terms of the Revolving Acquisition Agreement or the &#147;Loan Documents&#148; as therein defined, the effect
of which is to permit the holder or holders of any indebtedness thereunder to accelerate the
maturity of such indebtedness;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <U>Insolvency</U>. (i)&nbsp;Borrower, any of its REO Affiliates or any other Loan Party
(Borrower and each of the other foregoing Persons being a &#147;<U>Section&nbsp;9.7 Entity</U>&#148;) shall make
an assignment for the benefit of creditors or a composition with creditors; or (ii)&nbsp;any Section&nbsp;9.7
Entity shall admit in writing its inability to pay its debts as they mature, shall file a petition
in bankruptcy, shall be adjudicated insolvent or bankrupt, shall petition or apply to any tribunal
for the appointment of any receiver, liquidator, trustee or custodian of or for it or any of its
Assets; or (iii)&nbsp;any application is made by any other Person for the appointment of any receiver,
liquidator, trustee or custodian for any Section&nbsp;9.7 Entity or for any of the Assets of any Section
9.7 Entity; or (iv)&nbsp;any Section&nbsp;9.7 Entity shall commence any proceedings relating to it under any
bankruptcy, reorganization, arrangement, readjustment of debt, receivership, dissolution or
liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or (v)&nbsp;there
shall be commenced against any Section&nbsp;9.7 Entity any such proceeding which shall remain
undismissed for a period of 60&nbsp;days or more, or any order, judgment or decree approving the
petition in any such proceeding shall be entered; or (vi)&nbsp;any Section&nbsp;9.7 Entity shall by any act
or failure to act indicate its consent to, approval of or acquiescence in, any such proceeding or
in the appointment of any receiver, liquidator, trustee or custodian (other than as contemplated in
the Custodian Agreement) of or for it or any of its Assets, or shall suffer any such appointment to
exist; or (vii)&nbsp;any Section&nbsp;9.7 Entity shall take any action for the purpose of effecting any of
the foregoing; or any court of competent jurisdiction shall assume jurisdiction with respect to any
such proceeding or a receiver or trustee or other officer or representative of a court or of
creditors, or any court, governmental officer or agency, shall under color of legal authority, take
and hold possession of any substantial part of the property or Assets of any Section&nbsp;9.7 Entity; or
(viii)&nbsp;any Section&nbsp;9.7 Entity shall become insolvent (howsoever such insolvency may be evidenced)
or shall be unable to pay its debts as they mature (except that the occurrence of any condition set
forth in this clause (viii)&nbsp;with respect to any REO Affiliate or FC Mexico, so long as FC Mexico or
such REO Affiliate is paying its debts (other than Charges against any REO
</DIV>

<P align="center" style="font-size: 10pt">34
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Property for which no associated tax sale or action to foreclose has commenced) as they
mature, shall not constitute an Event of Default under this Section&nbsp;9.7 unless the occurrence of
any such condition with respect to FC Mexico or such REO Affiliate is an Event of Default under any
other clause of this Section&nbsp;9.7); or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <U>Security Documents</U>. The breach by Borrower or any other Loan Party of any term or
provision of, or the occurrence of any default under, any Security Document or other Loan Document
(other than this Agreement) or other agreement, instrument or document delivered in connection
therewith to which such Person is a party, which breach or default is in the opinion of Agent,
material, or any other such breach or default (other than such a material breach or default) occurs
and is not cured within the time, if any, specified therefor therein or fifteen days thereafter, if
no such time is specified or such time is less than 15&nbsp;days; or if any such Security Document or
Loan Document is at any time not in full force and effect; or any of the Security Documents shall
fail to grant to Agent on behalf of Lenders the Liens (if any) intended to be created thereby; or
if any Loan Party shall assert that it is not liable with respect to any Security Document to which
it is a party; or any Guarantor shall assert that it is not liable as a guarantor under the
Guaranty to which it is party; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <U>Notice of Charge</U>. Except as expressly permitted pursuant to Section&nbsp;7.3, if a
notice of any Charge is filed of record with respect to all or any of the Assets of Borrower or any
other Loan Party; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <U>Judgments</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any final non-appealable judgment for the payment of money in excess of $1,000,000 (after
giving effect to any amount covered by insurance as to which the insurer shall not have denied or
questioned its obligation to pay) shall be rendered against Borrower, any of its REO Affiliates or
any other Loan Party; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Final judgment for the payment of money in excess of $1,000,000 shall be rendered against
Borrower, any of its REO Affiliates or any other Loan Party and the same shall remain undischarged
for a period of 30&nbsp;days during which execution shall not be effectively stayed or diligently
contested in good faith by appropriate proceedings; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 <U>ERISA</U>. Any ERISA Affiliate of Borrower or of any other Applicable Person under
Section&nbsp;8.20 which is not a Subsidiary of Borrower or such Applicable Person shall fail in the
performance or observance of any term, provision or agreement with respect to a Plan or
Multiemployer Plan set forth in Section&nbsp;8.20 as if such ERISA Affiliate were a Subsidiary of
Borrower or an Applicable Person; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 <U>Material Effect Defaults</U>. To the extent that the same does not constitute an
Event of Default under any other provision of this Section&nbsp;9, a default by Borrower, any of its REO
Affiliates or any other Loan Party shall occur under any agreement, document or instrument (other
than this Agreement or any of the other Loan Documents) now or hereafter existing, to which
Borrower, such REO Affiliate or other Loan Party is a party and the effect of such default could
reasonably be expected to have a Material Adverse Effect; or
</DIV>

<P align="center" style="font-size: 10pt">35
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13 <U>Change in Control</U>. A Change in Control shall occur (for purposes hereof, a
Change in Control shall mean the occurrence of any of the following events after the date hereof:
(i)&nbsp;any &#147;person&#148; or &#147;group&#148; (as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the <B>&#147;Exchange Act&#148;</B>)), is or becomes the &#147;beneficial owner&#148; (as
defined in Rules&nbsp;13d-3 and 13d-5 under the Exchange Act), directly, or indirectly, of more than
fifty percent (50%) of the aggregate voting power of all classes of Capital Stock of FirstCity
entitled to vote generally in an election of directors; (ii)&nbsp;FirstCity (or one or more wholly-owned
subsidiaries thereof) ceases to own and control all of the issued and outstanding Equity Interests
of Borrower, FC Commercial, FC Servicing, FC Holdings, FC International, FC Mexico, and FC Europe;
(iii)&nbsp;FirstCity is merged with or into another corporation or another corporation is merged with or
into FirstCity with the effect that immediately after such transaction the stockholders of
FirstCity immediately prior to such transaction hold less than a majority in interest of the total
voting power entitled to vote in the election of directors, managers or trustees of the entity
surviving the transaction; Borrower is merged with or into another corporation or another
corporation is merged with or into Borrower; (iv)&nbsp;to the extent not otherwise then constituting an
Event of Default, all or substantially all of the Assets of Borrower or any other Loan Party are
sold to any person or persons (as an entirety in one transaction or a series of related
transactions). For purposes of this Section <U>9.13</U>, &#147;<U>Capital Stock</U>&#148; of any Person
means any and all shares, interests, participations or other equivalents in the equity (however
designated) of such Person and any rights (other than debt securities convertible into an equity
interest), warrants or options to acquire an equity interest in such Person); or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14 <U>Court Orders</U>. To the extent not otherwise constituting an Event of Default, if
Borrower or any other Loan Party is enjoined, restrained or in any way prevented by court order
from conducting all or any material part of its business or affairs and such Person consents (by
action, inaction or otherwise) to such order or such order remains in effect for a period of 30
days; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15 <U>Dissolution</U>. Borrower or any other Loan Party shall dissolve, fully liquidate or
suspend or discontinue its business;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then, and in any such event, and at any time thereafter, if any Event of Default shall then be
continuing, Agent may (and shall, if instructed in writing by the Majority Lenders) by written
notice to Borrower: (i)&nbsp;declare the principal of and accrued interest on the Loans of Borrower to
be, whereupon the same shall forthwith become, due and payable without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by Borrower; and/or (ii)&nbsp;declare the
Loan Commitments of Lenders terminated, whereupon such Loan Commitments shall forthwith terminate
immediately; <U>provided that</U> if any Event of Default described in Section&nbsp;9.7 shall occur
with respect to Borrower, the result which would otherwise occur only upon the giving of written
notice by Agent to Borrower as herein described shall occur automatically, without the giving of
any such notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>GENERAL REPRESENTATIONS AND WARRANTIES AND RELATED COVENANTS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to induce Lenders to enter into this Agreement and to make and maintain the Loans
provided for herein, Borrower makes the following representations, covenants and
</DIV>

<P align="center" style="font-size: 10pt">36
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">warranties, both as of the Execution Date and (after giving effect to the transactions
contemplated hereby to occur on the Effective Date) as of the Effective Date (unless otherwise
specified), which representations, covenants and warranties shall survive the execution and
delivery of this Agreement and the other documents and instruments referred to herein:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <U>Organization</U>. Borrower, each of its REO Affiliates and each other Loan Party is
and at all times hereafter shall be a corporation, limited liability company or a limited
partnership, as the case may be, duly organized and validly existing and in good standing under the
laws of the state of its organization and qualified or licensed to do business and in good standing
in all states in which the laws thereof require such Person to be so qualified and/or licensed and
in which the failure to so qualify could have a Material Adverse Effect. <U>Schedule</U>
<U>10.1</U> identifies each jurisdiction in which each Loan Party has qualified or been licensed
to do business and describes the nature and current status of any such qualification or license.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <U>Power</U>. Each Loan Party has the right, power and capacity and is duly authorized
and empowered to enter into, execute, deliver and perform the Loan Documents to which it is a
party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <U>Violation of Charter Documents</U>. The execution, delivery and/or performance by
each Loan Party of each Loan Document to which it is a party and the consummation of the
transactions contemplated thereunder have been duly authorized by all necessary corporate,
partnership, limited liability company (as the case may be), shareholder or other action of the
holders of the Equity Interests thereof and none of such execution, delivery, performance or
consummation shall, by the lapse of time, the giving of notice or otherwise, constitute a violation
of any Legal Requirement or a breach of any provision contained in the Charter Documents of such
Loan Party, or contained in any agreement, instrument or document to which any Loan Party is now or
hereafter a party or by which it or any of its Assets is or may become bound, other than
agreements, instruments or documents that are immaterial to such Loan Party the breach of which
could not have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <U>Enforceability</U>. This Agreement and the other Loan Documents to any Loan Party is
a party are and will be the legal, valid and binding agreements of such Loan Party, enforceable in
accordance with their respective terms, except as enforcement thereof may be subject to the effect
of applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors&#146; rights generally, and to general principles of equity (regardless of whether such
enforcement is sought in a proceeding in equity or at law).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <U>Ownership</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the partnership interests of Borrower are and at all times hereafter shall be owned by
FirstCity and/or one or more wholly-owned subsidiaries of FirstCity. All Equity Interests of
Borrower have been duly and validly issued, are fully paid and are non-assessable. There are no
options, warrants and other rights to acquire any Equity Interests of Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <U>Fictitious Names</U>. Each of the fictitious names, if any, used by Borrower during
the five (5)&nbsp;year period preceding the Execution Date is set forth on <U>Schedule&nbsp;10.6</U>
attached hereto (as amended from time to time) and none of such fictitious names are registered
</DIV>

<P align="center" style="font-size: 10pt">37
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">trademarks or tradenames with the U.S. Patent and Trademark Office, except as set forth in
<U>Schedule&nbsp;10.6</U>;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <U>Title</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Schedule&nbsp;10.7</U> is a true, accurate and complete list of all Liens relating to the
Collateral on the Execution Date and Effective Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Borrower, each of its REO Affiliates and each other Loan Party shall at all times have
indefeasible and merchantable title to and ownership of all of its Assets except to the extent the
failure to do so could not reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <U>Financial Warranty</U>. Except as set forth on <U>Schedule&nbsp;10.8</U>, each Loan
Party (i)&nbsp;is paying its debts as they mature, (ii)&nbsp;owns property which, at a fair valuation, is
greater than the sum of its debt, and (iii)&nbsp;has capital sufficient to carry on its business and
transactions and all businesses and transactions in which it is about to engage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <U>Proceedings</U>. Except as set forth on <U>Schedule&nbsp;10.9</U>, there are no actions
or proceedings which are pending or threatened against any Loan Party which could reasonably be
expected to have a Material Adverse Effect. None of the actions or proceedings referred to on
<U>Schedule&nbsp;10.9</U> could have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <U>Government Contracts</U>. Except as set forth on <U>Schedule&nbsp;10.10</U>, neither
Borrower nor any of its REO Affiliates has any government contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <U>Adequate Licenses</U>. Borrower, each of its REO Affiliates and each other Loan
Party possesses adequate licenses, patents, copyrights, trademarks and tradenames to continue to
conduct its business as previously conducted by it and as contemplated in the foreseeable future
except such licenses, patents, copyrights, trademarks and trade names the failure of which to
obtain could not be reasonably expected to have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <U>Government Permits; Approvals and Consents</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except for matters which could not result in a Material Adverse Effect, Borrower, each of
its REO Affiliates and each other Loan Party has been and is in good standing with respect to all
governmental permits, certificates, consents and franchises necessary to continue to conduct its
business as previously conducted prior to the date hereof and prior to the Execution Date and to
own or lease and operate its properties as now owned or leased by it. None of said permits,
certificates, consents or franchises contain any term, provision, condition or limitation more
burdensome than such as are generally applicable to Persons engaged in the same or similar business
as the applicable Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except for those consents and other items set forth on <U>Schedule&nbsp;10.12</U>, neither
Borrower, any of its REO Affiliates nor any other Loan Party requires the approval, consent,
waiver, order, permission, license, authorization, registration or validation of, or filing with or
exemption by, any Government Authority or any other Person (including but not limited to
shareholders, partners, members, equity owners, holders of Indebtedness Instruments, or any owner
of any lien upon the Assets of any one or more of them or their Affiliates) for the

<P align="center" style="font-size: 10pt">38
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">execution and delivery of, and the consummation of the transactions contemplated by, this
Agreement and the other Loan Documents, including but not limited to the borrowing of any Loans,
the pledge of the Collateral, and the payment and performance of all Obligations. Borrower, each
of its REO Affiliates and each other Loan Party have received the consents and other items
described on <U>Schedule&nbsp;10.12</U> and has delivered a copy thereof to Agent, which consents are
in full force and effect, unmodified and unamended on the date hereof and on the Execution Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <U>Charge; Restrictions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;On the Execution Date and on the Effective Date, neither Borrower, any of its REO
Affiliates nor any other Loan Party is a party to (nor are any of such Person&#146;s Assets otherwise
subject to) any contract or agreement or restriction, judgment, decree or order that could have a
Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;On the Execution Date and on the Effective Date, neither Borrower, any of its REO
Affiliates or any other Loan Party is subject to (nor are any such Person&#146;s Assets otherwise
subject to) any Charge other than Charges which are not yet due and payable or Charges against any
REO Property for which no associated tax sale or action to foreclose has commenced.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 <U>Compliance with Laws</U>. Except for matters which could not result in a Material
Adverse Effect, neither Borrower, any of its REO Affiliates, nor any other Loan Party is in
violation of any applicable statute, regulation, order or ordinance of the United States of
America, of any state, city, town, municipality, county or of any other jurisdiction, or of any
agency thereof, including the Federal Reserve Board, in any respect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 <U>Compliance with Indebtedness Instruments</U>. Other than those defaults set forth
on <U>Schedule&nbsp;10.15</U>, neither Borrower, any of its REO Affiliates nor any other Loan Party is
in default under any Indebtedness Instrument or any other material agreement to which it is a
party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16 <U>Financials</U>. The Financial Statements delivered by Borrower or any other Loan
Party to Agent, fairly and accurately present the Assets, liabilities and financial conditions and
results of operations of Borrower, and such other Persons described therein as of and for the
periods ending on such dates and have been prepared in accordance with GAAP and such principles
have been applied on a basis consistently followed in all material respects throughout the periods
involved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.17 <U>Tax Returns</U>. Each Loan Party has filed or caused to be filed all tax returns
which are required to be filed, and has paid all Charges shown to be due and payable on said
returns or on any assessments made against it or any of its property, and all other Charges imposed
on it or any of its properties by any Governmental Authority, except for Charges arising at any
time after the Effective Date, which such Loan Party is disputing in accordance with the final
sentence of Section&nbsp;7.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.18 <U>No Material Adverse Change</U>. Except as set forth in <U>Schedule&nbsp;10.18</U>,
since June&nbsp;30, 2005, no event or circumstance has occurred that had, has or could reasonably be
expected to have a Material Adverse Effect.
</DIV>

<P align="center" style="font-size: 10pt">39
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.19 <U>No Indebtedness</U>. None of Borrower, any of its REO Affiliates nor any other Loan
Party (i)&nbsp;has any Indebtedness except for Indebtedness described in <U>Schedule&nbsp;10.19</U>,
<U>Schedule&nbsp;10.20</U> and <U>Schedule&nbsp;8.11</U> and except for Indebtedness permitted by this
Agreement which is reflected in the most recent Financial Statements delivered pursuant to 7.1(a)
or (b) (except for any such Indebtedness permitted by this Agreement or, in the case of Loan
Parties other than Borrower, the Revolving Acquisition Agreement, (x)&nbsp;incurred since such most
recent Financial Statements were delivered, or (y)&nbsp;constituting unsecured trade payables arising in
the ordinary course of business since the dates reflected in such Financial Statements that is not
Indebtedness for borrowed money or Indebtedness of any REO Affiliate evidenced by a note payable to
Borrower, in each case, to the extent, if any, not required by GAAP to be reflected in Financial
Statements) or (ii)&nbsp;has guaranteed any indebtedness or entered into or issued any Guaranty
Equivalent (other than as a result of the endorsement of any instrument of items of payment for
deposit or collection in the ordinary course of business or as otherwise expressly permitted
pursuant to the terms hereof, or, with respect to a Loan Party other than Borrower, the Revolving
Acquisition Agreement) in respect of the obligations of any Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.20 <U>Affiliate Notes</U>. Attached hereto as <U>Schedule&nbsp;10.20</U> is a true, accurate
and complete schedule of all promissory notes made by any REO Affiliate to Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.21 <U>No Liability on Lenders or Agent</U>. None of the execution, delivery and
performance by Borrower or any other Loan Party of this Agreement and/or the other Loan Documents
will impose on or subject any of Lenders or Agent to any liability, whether fixed or contingent, in
respect of any Environmental Law, whether relating to the operation of Borrower&#146;s business or
otherwise. None of Lenders&#146; or Agent&#146;s exercise of any of the rights or remedies described in this
Agreement or in any of the other Loan Documents shall constitute a breach of any provision
contained in any agreement, instrument or document concerning the assignment or license of, or the
payment of royalties for, any patents, patent rights, tradenames, trademarks, trade secrets,
know-how, copyrights or any other form of intellectual property now or at any time or times
hereafter protected as such by any applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.22 <U>Affiliates</U>. <U>Schedule&nbsp;10.22</U> attached hereto is a true, accurate and
complete schedule of Borrower&#146;s Affiliates as of the Effective Date, together with a description of
Borrower&#146;s relationship to each such Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.23 <U>Real Property; Environmental Issues</U>. Neither Borrower, any of its REO
Affiliates nor any other Loan Party has received a summons, citation, notice, or directive from the
Environmental Protection Agency or any other Governmental Authority concerning any action or
omission resulting in the releasing, or otherwise disposing of hazardous waste or hazardous
substances into the environment with respect to any real property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.24 <U>Investment Company Act and Public Utility Holding Company Act</U>. Neither
Borrower, any of its REO Affiliates nor any other Loan Party or the entering into of any Loan
Documents, nor the issuance of the Notes is subject to any of the provisions of the Investment
Company Act of 1940, as amended. Neither Borrower, any of its REO Affiliates nor any other Loan
Party is a &#147;holding company&#148; as defined in the Public Utility Holding Company Act of 1935, as
amended, or subject to any other federal or state statute or regulation limiting its ability to
incur Indebtedness for money borrowed.
</DIV>

<P align="center" style="font-size: 10pt">40
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.25 <U>Disclosure</U>. Neither this Agreement nor any other Loan Document nor any
statement, list, certificate or other document or information, nor any schedules to this Agreement
or any other Loan Document, delivered or to be delivered to Lenders or Agent, contains or will
contain any untrue statement of a material fact or omits or will omit to state a material fact
necessary to make statements contained herein or therein, in light of the circumstances in which
they are made, not misleading. Copies of all documents delivered to Lenders and/or Agent pursuant
to this Section&nbsp;10 or any other provision of this Agreement are true, correct and complete copies
thereof and include all amendments, restatements, supplements and other modifications thereto and
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.26 <U>Qualification</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Solely by reason of (and without regard to any other activities of Lenders and/or Agent in
any state in which Assets of Borrower, any of its REO Affiliates or any other Loan Party are
located) the entering into and performance of this Agreement, the Notes, the other Loan Documents
and the documents, instruments and agreements delivered in connection therewith by Lenders and/or
Agent will not constitute doing business by Lenders and/or Agent in any of such states or result in
any liability of Lenders and/or Agent for taxes or other governmental charges; and qualification by
Lenders and/or Agent to do business in such jurisdiction is not necessary in connection with, and
the failure to so qualify will not affect, the enforcement of, or exercise of any rights or
remedies under, any of such documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No &#147;business activity,&#148; &#147;doing business&#148; or similar report or notice is required to be
filed by Lenders and/or Agent in any such jurisdiction in connection with the Loans or the
transactions contemplated by this Agreement or any other Loan Document, and the failure to file any
such report or notice will not affect the enforcement of, or the exercise of any rights or remedies
under, this Agreement or any of the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.27 <U>Federal Reserve Margin Regulations; Use of Proceeds</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Neither Borrower, any of its REO Affiliates nor any other Loan Party is engaged
principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any margin stock (within the meaning of Regulation&nbsp;U of the Board
of Governors of the Federal Reserve System). No part of the proceeds of any Loan will be used to
purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing
or carrying any such margin stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Neither the Loans nor the use of proceeds therefrom will result in a violation of any of
the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter&nbsp;V, as amended), or any ruling issued thereunder or any enabling legislation or
Presidential Executive Order in connection therewith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.28 <U>Intellectual Property</U>. All patents, trademarks, registered copyrights and trade
names of Borrower are listed in <U>Schedule&nbsp;10.28</U> to this Agreement; all of those so listed
are in full force and effect. If Borrower at any time acquires, establishes, invents or develops
any patent, trademark, copyright or trade name that is or becomes material to Borrower&#146;s business
or
</DIV>

<P align="center" style="font-size: 10pt">41
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">operations, it will promptly notify Agent of same and take such action as Agent shall request
to grant to Agent on behalf of Lenders a perfected, first priority security interest in same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.29 <U>Compliance with ERISA</U>. Neither Borrower, any of its REO Affiliates nor any
other Loan Party other than FirstCity has or shall at any time have any employees. Schedule&nbsp;10.29
describes the Pension Plans to which FirstCity or any ERISA Affiliates may have obligations. Each
Loan Party and each ERISA Affiliate and each Plan and the trusts maintained pursuant to such plans
are in compliance in all material respects with the presently applicable provisions of Sections&nbsp;401
through and including 417 of the Code, and of ERISA and (i)&nbsp;no event which constitutes a Reportable
Event as defined in Section&nbsp;4043 of ERISA has occurred and is continuing with respect to any Plan
which is or was covered by Title IV of ERISA, (ii)&nbsp;no Plan which is subject to Part&nbsp;3 of Subtitle B
of Title 1 of ERISA has incurred any &#147;accumulated funding deficiency&#148; (within the meaning of
Section&nbsp;302 of ERISA or Section&nbsp;412 of the Code) whether or not waived, and (iii)&nbsp;no written notice
of liability has been received with respect to any Loan Party or any Subsidiary for any &#147;prohibited
transaction&#148; (within the meaning of Section&nbsp;4975 of the Code or Section&nbsp;406 of ERISA), nor has any
such prohibited transaction resulting in liability to any Loan Party or ERISA Affiliate occurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither Borrower, any of its REO Affiliates nor any other Loan Party nor any ERISA Affiliate
(i)&nbsp;has incurred any liability to the PBGC (or any successor thereto under ERISA), or to any
trustee of a trust established under Section&nbsp;4049 of ERISA, in connection with any Plan (other than
liability for premiums under Section&nbsp;4007 or ERISA), (ii)&nbsp;has incurred any withdrawal liability
under Subtitle E of Title IV of ERISA in connection with any Plan which is a Multiemployer Plan,
nor (iii)&nbsp;has contributed or has been obligated to contribute on or after September&nbsp;26, 1980, to
any &#147;multiemployer plan&#148; (within the meaning of Section&nbsp;3(37) of ERISA) which is subject to Title
IV of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consummation of the transactions contemplated by this Agreement (i)&nbsp;will not give rise to
any liability on behalf of Borrower, any of its REO Affiliates or any other Loan Party or any ERISA
Affiliate under Title IV of ERISA to the PBGC (other than ordinary and usual PBGC premium
liability), to the trustee of a trust established pursuant to Section&nbsp;4049 of ERISA, or to any
Multiemployer Plan, and (ii)&nbsp;will not constitute a &#147;prohibited transaction&#148; under Section&nbsp;406 of
ERISA or Section&nbsp;4975 of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.30 <U>The Security Documents</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Security Document heretofore delivered grants, and each Security Document hereafter
delivered when delivered will grant a Lien in the properties or rights intended to be covered
thereby (the &#147;<U>Collateral</U>&#148;) which (i)&nbsp;will constitute a valid and enforceable security
interest under the Uniform Commercial Code of the State (x)&nbsp;in which the Collateral is located and
(y)&nbsp;by which any Security Document is governed (as applicable, the &#147;<U>UCC</U>&#148;), (ii)&nbsp;will be
entitled to all of the rights, benefits and priorities provided by the UCC, and (iii)&nbsp;when such
Security Documents or financing statements with respect thereto are filed and recorded as required
by the UCC, will be superior and prior to the rights of all third Persons now existing or hereafter
arising whether by way of mortgage, pledge, lien, security interest, encumbrance or otherwise,
except for Permitted Liens, and will provide Agent and Lenders the Requisite Priority. All such
action as is necessary in law has been taken, or prior to the Effective Date will have
</DIV>


<P align="center" style="font-size: 10pt">42
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">been taken, to establish and perfect the security interest of Agent and Lenders in the
Collateral and to entitle Lenders or Agent on behalf of Lenders to exercise the rights and remedies
provided in each of the Security Documents and the UCC, as applicable, and no filing, recording,
registration or giving of notice or other action is required in connection therewith except such as
has been made or given or will have been made or given prior to such dates. All filing and other
fees and all recording or other tax payable with respect to the recording of any of the Security
Documents and UCC financing statements have been paid or provided for.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.31 <U>Other Loan Documents</U>. All representations and warranties contained in the other
Loan Documents are true and correct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.32 <U>Subsidiary Interests</U>. Borrower has no Subsidiaries (including, without
limitation, REO Affiliates) as of the Closing Date other than those REO Affiliates (and those
entities formed solely to serve as general partner of such REO Affiliates) set forth on Schedule
10.32. In the event any REO Affiliate is formed after the Closing Date in accordance with the
terms hereof, Borrower warrants, represents and covenants that all of the above representations and
warranties will be true and accurate as to such REO Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>AGENT</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <U>Appointment</U>. Lenders hereby irrevocably appoint Bank of Scotland, acting through
its New York branch, to act as Agent hereunder and as Agent or &#147;Assignee&#148; or &#147;Secured Party&#148; (or in
any other similar representative capacity designated in any Security Document) under the Security
Documents (in such capacity, the &#147;<U>Agent</U>&#148;). Each Lender hereby irrevocably authorizes, and
each holder of any Note by the acceptance of such Note shall be deemed irrevocably to authorize,
Agent to take such action on its behalf under the provisions of this Agreement, the Notes, the
Security Documents, the other Loan Documents and any other instruments and agreements referred to
therein and to exercise such powers thereunder as are specifically delegated to or required of it
by the terms thereof and such other powers as are reasonably incidental thereto; <U>provided
that</U> Agent shall not take any action to realize upon any security interest in any of the
Collateral, or release any substantial portion of the Collateral, without the consent of the
Majority Lenders. Agent may perform any of its duties under any of the Loan Documents by or
through its agents or employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <U>Nature of Duties</U>. Agent shall have no duties or responsibilities except those
expressly set forth in the Loan Documents. Neither Agent nor any of its officers, directors,
employees or agents shall be liable to any Lender for any action taken or omitted by it under any
of the Loan Documents, or in connection therewith unless caused by its or their gross negligence or
willful misconduct. Nothing in the Loan Documents, expressed or implied, is intended to or shall
be so construed as to impose upon Agent any obligations in respect of the Loan Documents except as
expressly set forth therein. The duties of Agent under the Loan Documents shall be mechanical and
administrative in nature and Agent shall not have by reason of its duties under the Loan Documents
a fiduciary relationship in respect of any Lender. Agent agrees to deliver promptly to each Lender
(i)&nbsp;copies of notices received by it pursuant to Sections&nbsp;7.1, 7.2 and 7.11 of this Agreement, and
(ii)&nbsp;copies of all documents required to be delivered hereunder by Borrower to Lenders directly but
that are not so delivered to any Lender (but were delivered to
</DIV>

<P align="center" style="font-size: 10pt">43
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Agent) if such Lender notifies Agent that it has not received such document or documents,
specifying same.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 <U>Lack of Reliance</U>. Independently and without reliance on Agent, each Lender to
the extent it deems appropriate has made and shall continue to make (i)&nbsp;its own independent
investigation of the financial condition and affairs of the Loan Parties in connection with the
making and the continuance of the Loans and its Commitments hereunder and the taking or not taking
of any action in connection herewith, (ii)&nbsp;its own appraisal of the creditworthiness of the Loan
Parties and (iii)&nbsp;its own independent investigation and appraisal of the Collateral; and, except as
expressly provided in the Loan Documents, Agent shall have no duty or responsibility, either
initially or on a continuing basis, to provide any Lender with any credit or other information with
respect thereto, whether coming into its possession before the date hereof or at any time or times
thereafter. Agent shall not be responsible to any Lender for any recitals, statements,
representations or warranties herein or in any certificate or other document delivered in
connection herewith or for the authorization, execution, effectiveness, genuineness, validity,
enforceability, perfection, collectibility, or sufficiency of any of the Loan Documents, the
financial condition of the Loan Parties or the condition of any of the Collateral, or be required
to make any inquiry concerning either the performance or observance of any of the terms, provisions
or conditions of any of the Loan Documents, the financial condition of the Loan Parties or the
existence or possible existence of any Event of Default or Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 <U>Certain Rights</U>. If Agent requests instructions from Lenders or Majority Lenders
with respect to any interpretation, act or action (including failure to act in connection with this
Agreement or any of the other Loan Documents) Agent shall be entitled to refrain from such act or
taking such actions unless and until it shall have received instructions from Lenders or the
Majority Lenders, as the case may be; and Agent shall not incur liability to any Person by so
refraining. Without limiting the foregoing, no Lender shall have any right of action whatsoever
against Agent as a result of Agent acting or refraining from acting hereunder or under any of the
other Loan Documents in accordance with the instructions of the Majority Lenders (as to matters
requiring the consent of the Majority Lenders) or all Lenders (as to matters requiring the consent
of all Lenders). Agent shall be fully justified in failing or refusing to take any action under
any Loan Document unless, if it requests, it shall first be indemnified to its satisfaction by
Lenders against any and all liability and expense which may be incurred by it by reason of taking,
continuing to take or not taking any such action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 <U>Reliance</U>. Agent shall be entitled to rely upon any written notice or any
telephone message believed by it to be genuine or correct and to have been signed, sent or made by
the proper Person, and, with respect to all legal matters pertaining to the Loan Documents and its
duties thereunder, upon advice of counsel selected by it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 <U>Indemnification</U>. <B>To the extent Agent is not reimbursed or indemnified by
Borrower, Lenders will reimburse and/or indemnify Agent, in proportion to the aggregate amount of
their respective Commitments (or, if Commitments are terminated, Loans outstanding) under this
Agreement, for and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed on, incurred or sustained by or asserted against Agent, acting pursuant hereto or
any of the other Loan Documents in its</B>
</DIV>

<P align="center" style="font-size: 10pt">44
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>capacity provided for in this Section&nbsp;11, in any way relating to or arising out of this
Agreement, or any of the other Loan Documents, </B><U><B>provided, however, that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from Agent&#146;s gross negligence or
willful misconduct</B></U><B>. The obligations of Lenders under this Section&nbsp;11.6 shall survive the
repayment of the Notes and the Loans and the termination of this Agreement and the other Loan
Documents.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 <U>Agent, Individually</U>. With respect to its Loan Commitment under this Agreement,
the Loans made by it and any Note issued to or held by it, Agent shall have and may exercise the
same rights and powers hereunder and is subject to the same obligations and liabilities as and to
the extent set forth herein for any other Lender or holder of a Note. The terms &#147;Lender&#148;, &#147;holders
of Notes&#148; or any similar terms shall, unless the context clearly otherwise indicates, not exclude
Agent in its individual capacity as a Lender or holder of a Note. Agent may accept deposits from,
lend money to, and generally engage in any kind of banking, trust or other business with the Loan
Parties and their Subsidiaries as if it were not acting pursuant hereto, and may accept fees and
other consideration from the Loan Parties and their Subsidiaries for services as Agent in
connection with this Agreement and the other Loan Documents and for services otherwise than as
Agent without having to account for the same to Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 <U>Holders of Notes</U>. Agent may deem and treat the payee of any Note as the owner
thereof for all purposes hereof unless and until a written notice of the assignment or transfer
thereof shall have been received by Agent. Any request, authority or consent of any Person, who at
the time of making such request or of giving such authority or consent is the payee of any Note,
shall be conclusive and binding on any subsequent holder, transferee, assignee or payee of such
Note or of any Note or Notes issued in exchange therefor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 <U>Resignation</U>. Agent may resign at any time from the performance of all its
functions and duties hereunder and under the other Loan Documents by giving 30&nbsp;days prior written
notice to Borrower and each Lender. Such resignation shall take effect upon the expiration of such
30-day period or upon the earlier appointment of a successor. Notwithstanding any such
resignation, the provisions of Sections&nbsp;11.6 and 12.3 shall inure also to the benefit of each Agent
who has so resigned with respect to the period it served as Agent. In case of the resignation of
Agent, the Majority Lenders, with the prior consent of Borrower, which consent may not be
unreasonably withheld, may appoint a successor by a written instrument signed by the Majority
Lenders. Any successor shall execute and deliver to Agent an instrument accepting such
appointment, and thereupon such successor, without further act, shall become vested with all the
estates, properties, rights, powers, duties and trusts of Agent hereunder and with like effect as
if originally named as &#147;Agent&#148; herein and therein, and upon request, the predecessor Agent shall
take all actions and execute all documents necessary to give effect to the foregoing. In the event
Agent&#146;s resignation becomes effective at a time when no successor has been named, all notices,
other communications and payments hereunder required to be given by or to Agent shall be
sufficiently given if given by the Majority Lenders (or all Lenders, if the consent of all Lenders
is required therefor hereunder) or to each Lender, as the case may be. In such event, all powers
specifically delegated to Agent may be exercised by the Majority Lenders and the Majority Lenders
shall be entitled to all rights of Agent hereunder.
</DIV>

<P align="center" style="font-size: 10pt">45
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 <U>Reimbursement</U>. Without limiting the provisions of Section&nbsp;11.6, Lenders and
Agent hereby agree that Agent shall not be obligated to make available to any Person any sum which
Agent is expecting to receive for the account of that Person until Agent has determined that it has
received that sum. Agent may, however, disburse funds prior to determining that the sums which
Agent expects to receive have been finally and unconditionally paid to Agent, if Agent wishes to do
so. If and to the extent that Agent does disburse funds and it later becomes apparent that Agent
did not then receive a payment in an amount equal to the sum paid out, then any Person to whom
Agent made the funds available shall, on demand from Agent:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;refund Agent the sum paid to that Person; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;reimburse Agent for the additional amount certified by Agent as being necessary to
indemnify Agent against any funding or other cost, loss, expense or liability sustained or incurred
by Agent as a result of paying out the sums before receiving it; <U>provided</U>, <U>however</U>,
that if such funds were made available to any Lender, such additional amount shall be limited to
interest on the sum to be repaid, for each day from the date such amount was disbursed until the
date repaid to Agent, at (for the first three days) the customary rate set by Agent for correction
of errors among banks, and thereafter at the Base Rate (or, if greater and in respect of a Loan,
the rate from time to time prevailing on such Loan).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 <U>Other Agents</U>. No Lender identified in this Agreement or any related document as
&#147;Lead Arranger&#148; shall have any right, power, obligation, liability, responsibility or duty under
this Agreement other than those applicable to all Lenders as such. Without limiting the foregoing,
no Lender so identified as a &#147;Lead Arranger&#148; shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely,
on any of Lenders so identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. <U>MISCELLANEOUS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <U>Calculations and Financial Data</U>. Calculations hereunder (including, without
limitation, calculations used in determining, or in any certificate of any Loan Party delivered
reflecting compliance by any Loan Party with the provisions of this Agreement) shall be made and
financial data required hereby shall be prepared both as to classification of items and as to
amount in accordance with GAAP, consistent with the audited Financial Statements described in
Section&nbsp;10.16; <U>provided</U> <U>that</U> for purposes of Section&nbsp;8A no effect shall be given to
any change in GAAP from those in effect on December&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <U>Amendment and Waiver</U>. Except as otherwise provided, no provision of any of the
Loan Documents may be changed, waived, discharged or terminated orally, but only by an instrument
in writing signed by the Majority Lenders (or Agent on their behalf) and, if Borrower is a party
thereto, Borrower, except that waivers of provisions relating to a Loan Party&#146;s performance or
non-performance of its obligations hereunder or thereunder need not be signed by such Loan Party or
any other Loan Party; <U>provided</U> <U>however,</U> that the written consent of Agent shall
also be required to change, waive, discharge or terminate provisions of Section&nbsp;11; and
<U>provided</U> <U>further,</U> that without the consent of all of Lenders (or Agent on their
behalf) no change, waiver, discharge or termination may be made that would increase the amount of
any Loan
</DIV>

<P align="center" style="font-size: 10pt">46
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment of any Lender, decrease the principal of any Loan; decrease the interest rate
payable on any Loan; decrease the amount of any fee or Commitment Commission; extend the Maturity
Date of any Loan; change the definition of &#147;Majority Lenders&#148; or modify this Section&nbsp;12.2. Any
such change, waiver, discharge or termination shall be effective only in the specific instance and
for the specific purposes for which made or given.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 <U>Expenses; Indemnification</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Whether or not the transactions hereby contemplated shall be consummated, Borrower shall
pay all out-of-pocket costs and expenses of (x)&nbsp;Agent incurred in connection with the preparation,
execution, delivery, administration, filing and recording of, and (y)&nbsp;Agent and Lenders incurred in
connection with the amendment (including any waiver or consent) or modification of (including any
amendment, waiver, consent or modification at any time requested by Borrower, whether or not same
is finalized or executed), any failure of Borrower to perform or observe any provision of, and
enforcement of or preservation of any rights under, this Agreement, the other Loan Documents, the
making and repayment of the Loans, and the payment of all interest and fees, including, without
limitation, (A)&nbsp;the fees and expenses of Sullivan &#038; Worcester LLP, counsel for Agent, and any
special or local counsel retained by Agent or Lenders, and with respect to enforcement, the
reasonable fees and expenses of counsel for Agent or any Lender, (B)&nbsp;the reasonable fees and
expenses of accountants, other consultants, appraisers and other professionals retained by Agent in
connection with the transactions contemplated hereunder, and (C)&nbsp;printing, travel, title insurance,
mortgage recording, filing, communication and signing taxes and costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <B>Borrower agrees to pay, and to save Agent and Lenders harmless from (x)&nbsp;all present and
future stamp, filing and other similar taxes, fees or charges (including interest and penalties, if
any), which may be payable in connection with the Loan Documents or the issuance of the Notes or
any modification of any of the foregoing, and (y)&nbsp;all finder&#146;s and broker&#146;s fees in connection with
the transactions contemplated by this Agreement and the other Loan Documents.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <B>Borrower agrees to indemnify, pay and hold harmless Agent, each Lender, any Lender
Assignee and each holder of a Note and their respective present and future officers, directors,
employees and agents (collectively, the &#147;</B><U><B>Indemnified Parties</B></U><B>&#148;) from and against all
liability, losses, damages and expenses (including, without limitation, legal fees and expenses)
arising out of, or in any way connected with, or as a result of (i)&nbsp;the execution and delivery of
this Agreement or the other Loan Documents or the documents or transactions contemplated hereby and
thereby or the performance by the parties hereto or thereto of their respective obligations
hereunder and thereunder or relating thereto; or (ii)&nbsp;any claim, action, suit, investigation or
proceeding (in each case, regardless of whether or not the Indemnified Party is a party thereto or
target thereof) in any way relating to the Collateral, Borrower or any other Loan Party, or any of
their Subsidiaries or Affiliates, or any Subsidiary or Affiliate of any such Subsidiary or
Affiliate, or in any way relating to any of the foregoing Persons, or any Affiliate of any of the
foregoing in respect of this Agreement, any other Loan Documents or any other document or
transaction in connection herewith or therewith or relating hereto or thereto; or (iii)&nbsp;any actual
or alleged violation by Borrower or any other Loan Party, or any of their Affiliates or
Subsidiaries, or</B>
</DIV>


<P align="center" style="font-size: 10pt">47
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>any Affiliate of any of the foregoing Persons or any Subsidiary of any of the foregoing
Persons (or any predecessor in interest of any of them) of any Environmental Law; </B><U><B>provided</B></U>
<U><B>that</B></U><B> Borrower shall not be liable to an Indemnified Party for any portion of such
liabilities, losses, damages and expenses sustained or incurred as a direct result of the gross
negligence or willful misconduct of Agent, any Lender or such Indemnified Party if such gross
negligence or willful misconduct is determined to have occurred by a final and non-appealable
decision of a court of competent jurisdiction. Each Lender shall endeavor to give Borrower notice
of any material claim, action, suit or proceeding (if not restricted by applicable law, regulation
or Government Authority from so doing or unless the same would be inconsistent with a request from
a Government Authority) referred to in clause (ii)&nbsp;which has been filed against such Lender within
a reasonable time after the loan officer of such Lender with responsibility for this Agreement
becomes aware of the same, but no failure to give any such notice shall affect, or relieve Borrower
of, any of Borrower&#146;s obligations under this Section&nbsp;12.3 or under any other provision of this
Agreement or any other Loan Document or result in any obligation or liability of Agent or any
Lender to Borrower or any other Person.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;All obligations provided for in this Section&nbsp;12.3 and Sections&nbsp;3.4, 3.8, 4.1, 4.2, 4.4,
5.1 and 11.6 shall survive any termination of this Agreement and the Commitments and the payment in
full of the Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 <U>Benefits of Agreement; Descriptive Headings</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and assigns, and, in particular, shall inure to the
benefit of the holders from time to time of the Notes; <U>provided</U>, <U>however</U>, that
Borrower may not assign or transfer any of its rights or obligations hereunder without the prior
written consent of Agent and Lenders and any such purported assignment or transfer shall be void.
In furtherance of the foregoing, each Lender shall be entitled at any time to grant participations
in the whole or any part of its rights and/or obligations under this Agreement, the Loan Documents
or any Loan or Note to any Person; <U>provided, however</U>, that no Lender Assignee shall be
permitted by the terms of its participation agreement with the relevant Lender to require such
Lender to take or omit to take any action hereunder except to the extent that if Lender Assignee
were a Lender hereunder, its consent to taking or omitting to take such action would be required by
the terms of the second proviso of Section&nbsp;12.2 hereto. No such participation pursuant to this
Section&nbsp;12.4(a) shall relieve any Lender from its obligations hereunder and Borrower need deal
solely with Agent and Lenders with respect to waivers, modifications and consents to this
Agreement, the Loan Documents or the Notes. Any such participant is referred to in this Agreement
as a &#147;<U>Lender Assignee</U>&#148;. Borrower agrees that the provisions of Sections&nbsp;3.4, 3.6, 3.8, 5.3
and 12.3 shall run to the benefit of each Lender Assignee and its participations or interests
herein, and any Lender may enforce such provisions on behalf of any such Lender Assignee;
<U>provided</U>, <U>however</U>, that if any Lender grants a participation in the whole or any
part of its rights and/or obligations pursuant to this Section&nbsp;12.4(a), then the amounts that
Borrower is required to pay pursuant to this Agreement (including, without limitation, additional
amounts made pursuant to Section&nbsp;5.3) shall not exceed the amounts that Borrower would have been
required to pay to such Lender pursuant to this Agreement had such Lender not granted such
participation. Borrower hereby further agrees that any such Lender
</DIV>


<P align="center" style="font-size: 10pt">48
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assignee may, to the fullest extent permitted by applicable law, exercise the right of setoff
with respect to such participation (and in an amount up to the amount of such participation) as
fully as if such Lender Assignee were the direct creditor of Borrower. Upon a participation in
accordance with the foregoing, Borrower shall execute such documents and do such acts as any Lender
may reasonably request to effect such assignment. Any Lender may furnish any information
concerning the Loan Parties in its possession from time to time to Lender Assignees (including
prospective Lender Assignees) and prospective Purchasing Lenders. Each Lender shall notify
Borrower of any participation granted by it pursuant to this Section&nbsp;12.4(a) but neither the
approval of Borrower nor that of any other Loan Party shall be required for any such participation.
Borrower shall not be responsible for any due diligence costs or legal expenses of such Lender
Assignees in connection with their entering into such participation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The descriptive headings of the various provisions of this Agreement and the other Loan
Documents are inserted for convenience of reference only and shall not be deemed to affect the
meaning or construction of any of the provisions hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Any Lender may at any time assign to any other Lender or any affiliate of any Lender, or
(subject to obtaining the prior written consent of Borrower (but no other Loan Party), such consent
not to be unreasonably withheld) to one or more additional banks or financial institutions
(&#147;<U>Purchasing Lenders</U>&#148;), all or any part of its Loan Commitment (and corresponding Loans and
Note) pursuant to a Transfer Supplement (&#147;<U>Transfer Supplement</U>&#148;), the form and substance
satisfactory to Agent; <U>provided</U>, <U>howeve</U>r, that each such assignment shall be for an
amount not less than $1,000,000 (or, if Lender&#146;s Loan or Loan Commitment at the time is less, such
amount) and integral multiples of $500,000 above such amount, or such other amount or multiple to
which Agent may consent. Upon (i)&nbsp;such execution of such Transfer Supplement, (ii)&nbsp;delivery of an
executed copy thereof to Borrower and Agent, (iii)&nbsp;payment by such Purchasing Lender to such
transferor Lender of an amount equal to the purchase price agreed between such transferor Lender
and such Purchasing Lender, (iv)&nbsp;payment by the Purchasing Lender to Agent of a $3,000 processing
fee, and (v)&nbsp;any consent of Borrower required by the first sentence of this Section&nbsp;12.4(c), such
Purchasing Lender shall for all purposes be a Lender party to this Agreement and shall have all the
rights and obligations of a Lender under this Agreement to the same extent as if it were an
original party hereto and thereto with the percentage share of the Loan Commitment(s) set forth in
Schedule&nbsp;I to such Transfer Supplement, and no further consent or action by Borrower, any other
Loan Party, Lenders or Agent shall be required. Such Transfer Supplement shall be deemed to amend
this Agreement to the extent, and only to the extent, necessary to reflect the addition of such
Purchasing Lender and the resulting adjustment of the percentage of the Loan Commitment(s), Notes
and Loans (and related rights and obligations) held by the transferor Lender and the Purchasing
Lender arising from the purchase by such Purchasing Lender of all or a portion of the rights and
obligations of such transferor Lender pursuant to the Transfer Supplement. Upon the consummation
of any transfer to a Purchasing Lender pursuant to this Section&nbsp;12.4(c), the transferor Lender,
Agent and Borrower shall make appropriate arrangements so that, if required, a replacement Note or
Notes (dated the same date as the Note or Notes being replaced) is issued to such transferor Lender
and a new Note or Notes (dated the same date as the Note or Notes being replaced) or, as
appropriate, a replacement Note or Notes (dated the same date as the Note or Notes being replaced)
is issued to such Purchasing Lender, in each case in principal amounts reflecting their
outstanding Loans and Loan Commitment(s), as adjusted pursuant to such Transfer Supplement.
</DIV>


<P align="center" style="font-size: 10pt">49
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding anything to the contrary contained herein or in any of the Loan Documents,
unless Agent, Borrower or a Lender otherwise request with respect to any specific exhibit, exhibits
to this Agreement shall not be required to be attached to the execution or any other copy of this
Agreement, and any references in this Agreement or the other Loan Documents to such exhibits as
&#147;Exhibits hereto,&#148; &#147;Exhibits to this Agreement&#148; or words of similar effect shall be deemed to refer
to such document as executed by the parties thereto and delivered on the Effective Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 <U>Notices, Requests, Demands, etc.</U> Except as otherwise expressly provided herein,
all notices, requests, demands or other communications to or upon the respective parties hereto
shall be deemed to have been duly given or made when delivered if sent by Federal Express or other
similar overnight delivery service, or three Business Days after mailing (when mailed, postage
prepaid, by registered or certified mail, return receipt requested) or (in the case of telex,
telegraphic, telecopier or cable notice) when delivered to the telex, telegraph, telecopier or
cable company, or (in the case of telex or telecopier notice sent over a telex or telecopier owned
or operated by a party hereto) when sent; in each case addressed as follows, except that notices
and communications to Agent pursuant to Section&nbsp;2 and Section&nbsp;9 shall not be effective until
received by Agent: (i)&nbsp;if to Agent, at the Closing Office, (ii)&nbsp;if to a Lender, at the address
specified with its signature below or (if a Purchasing Lender) on the applicable Transfer
Supplement, and (iii)&nbsp;if to Borrower, at its address specified with its signature below (Attention:
President), or to such other addresses as any of the parties hereto may hereafter specify to the
others in writing, provided that communications with respect to a change of address shall be deemed
to be effective when actually received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6 <U>Governing Law</U>. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO CHOICE OF
LAW DOCTRINE THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION, except (as
to any other Loan Document) to the extent specifically set forth otherwise in that Loan Document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7 <U>Counterparts; Telecopies</U>. This Agreement and the other Loan Documents may be
executed in any number of counterparts, and by the different parties hereto and thereto on the same
or separate counterparts, each of which when so executed and delivered shall be deemed to be an
original; all the counterparts for each such Loan Document shall together constitute one and the
same agreement. Telecopied signatures hereto and to the other Loan Documents shall be of the same
force and effect as an original of a manually signed copy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8 <U>Waiver; Remedies Cumulative; Payment of Claims; Full Recourse</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No failure or delay on the part of Agent or any Lender in exercising any right, power or
privilege under this Agreement or any other Loan Document, and no course of dealing between any
Loan Party and Agent or any Lender shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. No notice to or demand on any Loan
Party in any case shall entitle such Person to any other or further notice or
</DIV>


<P align="center" style="font-size: 10pt">50
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">demand in similar or other circumstances or constitute a waiver of the right of Agent or any
Lender to any other or further action in any circumstances without notice or demand.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The rights and remedies herein expressly provided are cumulative and not exclusive of any
rights or remedies which Agent or any Lender would otherwise have pursuant to such documents or at
law or equity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In furtherance and not in limitation of the other rights and remedies of Agent and
Lenders, upon the occurrence of an Event of Default or Default, Agent, in its sole and absolute
discretion, without waiving or releasing any covenant, agreement or other obligation of Borrower or
any Default or Event of Default, may at any time or times hereafter, but shall be under no
obligation to, pay, acquire and/or accept an assignment of any security interest, lien, encumbrance
or claim asserted by any Person against the Assets of Borrower or any REO Affiliate. All sums paid
by Agent in respect thereof and all reasonable costs and expenses (including, without limitation,
fees and expenses of counsel to Agent) relating thereto incurred by Agent or for which Agent
becomes obligated on account thereof shall be part of the Obligations payable by a Borrower to
Agent on demand and any amount not paid on demand shall bear interest at the Past Due Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Borrower&#146;s obligations to pay principal, interest, fees and other amounts when due under
this Agreement and the other Loan Documents is absolute and unconditional and a full recourse
obligation of Borrower, notwithstanding any fact or circumstance and, without limiting the
generality of the foregoing, whether or not there are funds available in the Lockbox Account for
application to any such obligation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9 <U>Recoveries; Pro Rata Sharing</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any Recoveries (after deduction and payment of all expenses and costs permitted by this
Agreement, the Security Documents or applicable law) shall be applied against the Loans held by
Lenders until satisfaction in full of all amounts due thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Lenders agree among themselves that, with respect to all sums received by Lenders
applicable to the payment of the principal of or interest on the Notes (except as otherwise
provided in Section&nbsp;3.4, 5.3 or 5.4), equitable adjustment will be made between Lenders so that, in
effect, all such sums shall be shared ratably by each of Lenders (in accordance with the
outstanding principal amount of their respective applicable Loans) whether received by voluntary
payment, by realization upon security, by the exercise of the right of set-off or banker&#146;s lien, by
counterclaim or cross-action or by the enforcement of any or all of the Notes or otherwise. If any
Lender receives any payment on its Notes of a sum or sums in excess of its pro rata portion (except
as otherwise provided in Section&nbsp;3.4, 5.3 or 5.4), then such Lender receiving such excess payment
shall purchase for cash from the other Lenders with outstanding Loans to Borrower an interest in
their Note or Notes in such amount as shall result in a ratable participation by all of Lenders in
the aggregate unpaid amount of applicable Notes then outstanding; <U>provided</U>,
<U>however</U>, that if all or any portion of such excess payment is thereafter recovered by such
Lender, the purchase shall be rescinded and the purchase price restored to the extent of such
recovery, but without interest. Borrower hereby agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section&nbsp;12.9(b) may, to the
</DIV>


<P align="center" style="font-size: 10pt">51
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">fullest extent permitted by law, exercise all its rights of payment (including the right of
setoff) with respect to such participation as fully as if such Lender were the direct creditor of
Borrower in the amount of such participation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10 <U>Jurisdiction</U>. BORROWER HEREBY AGREES THAT ANY LEGAL ACTION OR PROCEEDING
AGAINST IT WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OF THE OTHER LOAN DOCUMENTS OR THE
DOCUMENTS DELIVERED IN CONNECTION HEREWITH OR THEREWITH MAY BE BROUGHT IN THE COURTS OF THE STATE
OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AS AGENT OR
ANY LENDER MAY ELECT, AND, BY EXECUTION AND DELIVERY HEREOF, BORROWER ACCEPTS AND CONSENTS FOR
ITSELF AND IN RESPECT TO ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE
AFORESAID COURTS AND AGREES THAT SUCH JURISDICTION SHALL BE EXCLUSIVE, UNLESS WAIVED BY AGENT AND
THE MAJORITY LENDERS IN WRITING, WITH RESPECT TO ANY ACTION OR PROCEEDING BROUGHT BY IT AGAINST
AGENT OR ANY LENDER AND ANY QUESTIONS RELATING TO USURY. BORROWER AGREES THAT SECTIONS 5-1401 AND
5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK SHALL APPLY TO THE LOAN DOCUMENTS
AND WAIVES ANY RIGHT TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE SAID COURTS ON
THE BASIS OF <U>FORUM</U> <U>NON</U> <U>CONVENIENS</U>. BORROWER HEREBY IRREVOCABLY CONSENTS
THAT ALL PROCESS SERVED OR BROUGHT AGAINST BORROWER WITH RESPECT TO ANY SUCH PROCEEDING IN ANY SUCH
COURT IN NEW YORK SHALL BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT IF SENT BY REGISTERED
MAIL, OR (IF PERMITTED BY LAW) BY FEDERAL EXPRESS OR OTHER SIMILAR OVERNIGHT COURIER SERVICE, TO
BORROWER AT ITS ADDRESS SET FORTH ALONGSIDE ITS SIGNATURE BELOW (OR SUCH OTHER ADDRESS AS AGENT IS
NOTIFIED OF IN ACCORDANCE WITH THE PROVISIONS OF SECTION 12.5). NOTHING HEREIN SHALL AFFECT THE
RIGHT OF AGENT OR LENDERS TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE
RIGHT OF AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST BORROWER IN THE COURTS OF ANY OTHER
JURISDICTION.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11 <U>Severability</U>. If any provision of this agreement shall be held or deemed to be
or shall, in fact, be illegal, inoperative or unenforceable, the same shall not affect any other
provision or provisions herein contained or render the same invalid, inoperative or unenforceable
to any extent whatever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12 <U>Right of Set-off</U>. In addition to any rights now or hereafter granted under
applicable law or otherwise and not by way of limitation of any such rights, upon the occurrence of
an Event of Default each of Lenders is hereby authorized at any time or from time to time, without
notice to any Loan Party or to any other Person, any such notice being hereby expressly waived, to
set-off and to appropriate and apply any and all deposits (general or special, time or demand,
provisional or final) and any other indebtedness at any time held or owing by such Lender to or for
the credit or the account of such Loan Party against and on account of the obligations and
liabilities of such Loan Party now or hereafter existing under any of the Loan Documents
irrespective of whether or not any demand shall have been made thereunder and
</DIV>

<P align="center" style="font-size: 10pt">52
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">although said obligations, liabilities or claims, or any of them, shall be contingent or
unmatured. Lender or Lenders exercising any rights granted under this Section&nbsp;12.12 shall
thereafter notify the affected Loan Party and Agent of such action; <U>provided</U> <U>that</U>
the failure to give such notice shall not affect the validity of such set-off and application.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13 <U>No Third Party Beneficiaries</U>. This Agreement is solely for the benefit of Agent
and Lenders and Borrower and the respective successors and assigns of Agent and Lenders and nothing
contained herein shall be deemed to confer upon anyone other than Borrower any right to insist on
or to enforce the performance or observance of any of the obligations of Agent or Lenders contained
herein. All conditions to the obligations of Lenders to make Loans hereunder are imposed solely
and exclusively for the benefit of Lenders and their respective successors and assigns and no other
Person shall have standing to require satisfaction of such conditions in accordance with their
terms and no other Person shall under any circumstances be deemed to be beneficiary of such
conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14 <U>Survival; Integration</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each of the representations, warranties, terms, covenants, agreements and conditions
contained in this Agreement shall specifically survive the execution and delivery of this Agreement
and the other Loan Documents and the making of the Loans and shall, unless otherwise expressly
provided, continue in full force and effect until the Loan Commitments have been terminated and the
Loans together with interest thereon, the Commitment Commissions, the fees and compensation of
Agent, and all other sums payable hereunder or thereunder have been indefeasibly paid in full.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This Agreement, together with the other Loan Documents, comprises the complete and
integrated agreement of the parties on the subject matter hereof and thereof and supersedes all
prior agreements, written or oral, on the subject matter hereof and thereof. In the event of any
direct conflict between the provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control and govern; <U>provided</U> that the inclusion of
supplemental rights or remedies in favor of Agent or Lenders in any other Loan Document shall not
be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint
participation of the respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.15 <U>Domicile of Loans</U>. Any Lender may make, maintain or transfer any of its Loans
hereunder to, or for the account of, any branch office, subsidiary or affiliate of such Lender.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.16 <U>No Usury</U>. It is expressly stipulated and agreed to be the intent of Agent,
Lenders and Borrower to comply at all times with applicable usury laws. If at any time such laws
would ever render usurious any amount called for under any of the Loan Documents, then it is the
express intention of the parties hereto that such excess amount be immediately credited on the
applicable Notes, or if the applicable Notes have been fully paid, refunded by Lenders (pro rata in
accordance with their respective principal amount of the affected Loans), to Borrower (and Borrower
shall accept such refund) and the provisions hereof and thereof be immediately deemed to be
reformed to comply with the then applicable laws, without the necessity of the execution of any
further documents, but so as to permit the recovery to the fullest amount
</DIV>

<P align="center" style="font-size: 10pt">53
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">otherwise called for hereunder and thereunder. Any such crediting or refunding shall not cure
or waive any default by Borrower under the Loan Documents. If at any time following any such
reduction to the interest rate payable by Borrower there remains unpaid any principal amounts under
the Notes and the maximum interest rate permitted by applicable law is increased or eliminated,
then the interest rate payable to Lenders shall be readjusted, to the full extent permitted by
applicable law, so that the total amount of interest thereunder payable by Borrower to Lenders
shall be equal to the amount of interest which would have been paid by Borrower without giving
effect to applicable usury laws. Borrower agree, however, that in determining whether or not any
interest payable under the Notes or any of the other Loan Documents exceeds the highest rate
permitted by law, any non-principal payment (except payments specifically stated in the Notes or
such other Loan Documents to be &#147;interest&#148;), including fees and commissions and all other sums
payable hereunder or thereunder or in connection herewith or therewith, shall be deemed, to the
full extent permitted by law, to be an expense, fee, premium or penalty rather than interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.17 <U>Waiver of Jury Trial</U>. BORROWER, AGENT AND EACH LENDER HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR
WRITTEN), OR ACTIONS OF BORROWER OR ANY OTHER LOAN PARTY, AGENT OR LENDERS. THIS PROVISION IS A
MATERIAL INDUCEMENT FOR AGENT AND LENDERS ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.18 <U>Waiver by Borrower</U>. EXCEPT AS OTHERWISE PROVIDED FOR IN THIS AGREEMENT OR
REQUIRED BY LAW, BORROWER WAIVES (A)&nbsp;PRESENTMENT, DEMAND AND PROTEST, NOTICE OF PROTEST, NOTICE OF
PRESENTMENT, DEFAULT, NON-PAYMENT, MATURITY, RELEASE, COMPROMISE, SETTLEMENT, EXTENSION OR RENEWAL
OF ANY OR ALL COMMERCIAL PAPER, ACCOUNTS, CONTRACT RIGHTS, DOCUMENTS, INSTRUMENTS, CHATTEL PAPER
AND GUARANTIES AT ANY TIME HELD BY ANY OF LENDERS AND/OR AGENT ON WHICH BORROWER MAY IN ANY WAY BE
LIABLE; (B)&nbsp;ALL RIGHTS TO NOTICE AND A HEARING PRIOR TO AGENT&#146;S TAKING POSSESSION OR CONTROL OF, OR
TO REPLEVY, ATTACHMENT OR LEVY UPON THE COLLATERAL OR ANY BOND OR SECURITY WHICH MIGHT BE REQUIRED
BY ANY COURT PRIOR TO ALLOWING ANY OF LENDERS AND/OR AGENT TO EXERCISE ANY OF ITS RESPECTIVE
REMEDIES; AND (C)&nbsp;THE BENEFIT OF ALL VALUATION, APPRAISEMENT, EXTENSION AND EXEMPTION LAWS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.19 <U>Waiver of Marshaling</U>. All rights of marshaling of Assets of Borrower, including
any such right with respect to the Collateral, are hereby waived by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.20 <U>Confidentiality</U>. Agent and each Lender, severally and with respect to itself
only, covenants and agrees that any information obtained by Agent or such Lender pursuant to this
Agreement shall be held in confidence (it being understood that documents provided to Agent
hereunder may in all cases be distributed by Agent to Lenders) except that Agent or such Lender
</DIV>

<P align="center" style="font-size: 10pt">54
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">may disclose such information (i)&nbsp;to its officers, directors, employees, agents, counsel,
accountants, auditors, advisors or representatives, (ii)&nbsp;to the extent such information has become
available to the public other than as a result of a disclosure by or through Agent or such Lender,
(iii)&nbsp;to the extent such information was available to Agent or such Lender in a capacity other than
Agent or Lender hereunder or on a nonconfidential basis prior to its disclosure to Agent or such
Lender hereunder, (iv)&nbsp;with the consent of Borrower, (v)&nbsp;to actual or prospective Lender Assignees
or Purchasing Lenders or (vi)&nbsp;to the extent Agent or such Lender should be (A)&nbsp;required in
connection with any legal or regulatory proceeding or (B)&nbsp;requested by any Government Authority to
disclose such information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;13. <U>TEXAS LANGUAGE</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES
HERETO WITH RESPECT TO THE MATTERS COVERED HEREBY AND THEREBY AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Remainder of Page Intentional Blank &#151; Signature Page to Follow&#093;</B>
</DIV>


<P align="center" style="font-size: 10pt">55
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their respective duly authorized officers as of the date first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">FH PARTNERS, L.P.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">FH Asset Corp., its general partner</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: James C. Holmes</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: Executive Vice President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6400 Imperial Drive (delivery only)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waco, Texas 76710</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">P.O. Box 8216 (mail)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waco, Texas 76714-8216</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">254-761-2953 (telecopier)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">BANK OF SCOTLAND, acting through its New</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">York branch, individually and as Agent</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Amena Nabi</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Assistant Vice President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;<I>Signature Page to Revolving Credit Agreement</I>&#093;
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">TABLE OF CONTENTS
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DEFINITIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">THE LOANS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Borrowing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Notes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mandatory Prepayments and Repayments of Loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Voluntary Prepayments of Loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reduction of Commitments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">INTEREST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rate of Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Interest Payment Dates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Past Due Rate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Capital Adequacy</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Determination of Rate of Borrowing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Substituted Rate of Borrowing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Required Termination and Prepayment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compensation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Eurocurrency Interest Period Determination</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conversions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FEES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">4.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commitment Commission</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">4.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Utilization Fee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">4.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upfront Fee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">4.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facility Fee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAYMENTS, ETC.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">5.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payments on Non-Business Days; Calculations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">5.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment Date and Distribution of Funds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">5.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Net Payments; Application</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">5.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Distribution by Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CONDITIONS PRECEDENT TO EFFECTIVENESS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Default, etc</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Supporting Documents of Borrower</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Officer's Certificate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certifications; Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Approvals and Consents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Opinions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Adverse Change</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change in Law; No Opposition</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All Proceedings to be Satisfactory</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fees and Expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Loan Documents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">UCC Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">i
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">6.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">REO Notes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">AFFIRMATIVE COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Required Notices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Charges</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Maintenance of Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preservation of Existence</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preservation of Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inspection of Books and Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Indebtedness</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Further Assurances</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Default</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reserves</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Representation and Warranties;
Covenants as to Other Persons, Amendment of Schedules</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Perform Obligations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New Debt; Equity Interests</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cooperation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Approvals and Consents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stay, Extension and Usury Laws</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Laws</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lockbox Account</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">REO Affiliates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NEGATIVE COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amend Charter Documents; Engage in Same Type of Business</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liens</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Indebtedness</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sell Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attachment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Receiver</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mergers and Acquisitions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stock Transfers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Adverse Transactions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan; Guaranty Debt</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Issue Power of Attorney</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment of Credit Agreements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Use of Proceeds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payments for Consent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitations on Dividends and Other Payment Restrictions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accounting Changes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Related Transactions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leasebacks</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with ERISA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Servicing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">ii
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">8.22</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Foreclosures</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">EVENTS OF DEFAULT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Principal and Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Representations and Warranties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Negative and Certain Other Covenants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Covenants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Indebtedness</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Revolving Acquisition Agreement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insolvency</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Security Documents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Charge</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Judgments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ERISA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Effect Defaults</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change in Control</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Court Orders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">9.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dissolution</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;10.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">GENERAL REPRESENTATIONS AND WARRANTIES AND RELATED COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Violation of Charter Documents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Enforceability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ownership</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fictitious Names</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Warranty</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proceedings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Government Contracts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Adequate Licenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Government Permits;  Approvals and Consents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charge; Restrictions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Laws</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Indebtedness Instruments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financials</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Returns</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Material Adverse Change</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Indebtedness</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Affiliate Notes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Liability on Lenders or Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.22</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Affiliates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.23</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Real Property; Environmental Issues</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.24</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Company Act and Public Utility Holding Company Act</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.25</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Disclosure</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.26</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qualification</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.27</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Federal Reserve Margin Regulations; Use of Proceeds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">iii
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.28</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.29</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with ERISA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.30</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Security Documents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.31</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Loan Documents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.32</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiary Interests</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;11.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">AGENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nature of Duties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lack of Reliance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Rights</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reliance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agent, Individually</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Holders of Notes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Resignation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reimbursement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Agents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;12.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MISCELLANEOUS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calculations and Financial Data</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment and Waiver</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expenses; Indemnification</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefits of Agreement; Descriptive Headings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notices, Requests, Demands, etc</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governing Law</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Counterparts; Telecopies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver; Remedies Cumulative; Payment of Claims; Full Recourse</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recoveries; Pro Rata Sharing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jurisdiction</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Severability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Right of Set-off</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Third Party Beneficiaries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Survival; Integration</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Domicile of Loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Usury</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Jury Trial</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver by Borrower</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Marshaling</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">12.20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confidentiality</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">TEXAS LANGUAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">iv
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBITS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Annex I Definitions
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit&nbsp;A &#151; Promissory Note<BR>
Exhibit&nbsp;B &#151; Form of Asset Pool Acquisition Certificate<BR>
Exhibit&nbsp;C &#151; Eligible Asset Pool<BR>
Exhibit&nbsp;D &#151; Net Present Value<BR>
Exhibit&nbsp;E &#151; Borrowing Base Certificate<BR>
Exhibit&nbsp;F &#151; Notice of Borrowing<BR>
Exhibit&nbsp;G &#151; Form of Assignment

</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LIST OF SCHEDULES</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="83%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;2.1 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Original Principal Amount</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;8.11(a) -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;8.11(b) -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Guaranty Equivalents</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.1 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.6 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fictitious Names</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.7 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liens Relating to the Collateral</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.8 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Warranty</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.9 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proceedings</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.10 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Government Contracts</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.12 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Government Permits;  Approvals and Consents</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.15 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defaults under any Indebtedness Instrument</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.18 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Adverse Change</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.19 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indebtedness Existing on the Effective Date</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.20 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Affiliate Notes</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.22 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Affiliates</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.28 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.29 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with ERISA</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Schedule&nbsp;10.32 -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">REO Affiliates</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Schedule&nbsp;2.1</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Lender:</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Loan Commitment:</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bank of Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">50,000,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;C<BR>
Eligible Asset Pool</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1. <U>Geographical Limitations</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">All Assets comprising the Asset Pool shall have originated and been sold in the United
States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">2. <U>Minimum Discount</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">The Purchase Price for the Asset Pool may not exceed 90% of the aggregate face value of the
receivables contained in the Asset Pool.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">3. <U>Concentration</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">After giving effect to the acquisition of the Asset Pool, no person or entity (together with
the Affiliates of such person or entity) shall be an obligor or issuer in respect of more than 20%
of the aggregate outstanding face amount of assets in all Asset Pools.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">4. <U>Maximum Size of Pool</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">The Purchase Price for the Asset Pool shall not exceed $25,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5. <U>NPV Requirement</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">The amount determined by dividing acquisition price of the Asset Pool by the Net Present Value
of the Asset Pool shall not exceed 0.90.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT D to the Revolving Credit Agreement</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>United States<BR>
Net Present Value Discount Factors<BR>
Collateral/Delinquency Discount Rates</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Days</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Days</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Days</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Days</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Collat</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Delinquent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Delinquent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Delinquent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Delinquent</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Code</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Collateral</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>0-30</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>31-60</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>61-90</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>&#062;90</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retail</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Single Family Residence</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Residential 2-4</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Condo-Residential</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Residential Cooperative</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Contract for Deed</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.03</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.03</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mobile Home</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of Promissory Note</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Manufactured Home &#038; Lot</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.03</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.03</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">23</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unsecured</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">24</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cash Accy/Mkt Securities</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">25</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Hotel/Motel</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">26</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Gas Station</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">27</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Former Service Station</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">28</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Restaurant/Bar/Banquet Hall</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">29</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Church</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Car Wash</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">31</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Office Building</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">32</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Industrial-Light</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">33</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Condo-Commercial</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">34</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Resi/Commercial - Mixed</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">35</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nursing Home/Assisted Living</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">36</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shopping Center/Mall</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">37</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Mkt. Securities</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.02</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">38</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accounts Receivable and/or</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inventory</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">39</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Titled Vehicle(s)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.03</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.03</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">40</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Crops/Livestock/Farm Products</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">41</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Boats and Watercraft-Titled</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">42</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Industrial-Heavy</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">43</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other (non-real estate)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">44</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FF &#038; E (attached to RE)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">45</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Machinery &#038; Equipment</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">46</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specific Equipment</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">47</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All Business Assets</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">48</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commercial Land (unimproved)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.08</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.08</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">49</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Residential Land (unimproved)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Days</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Days</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Days</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Days</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Collat</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Delinquent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Delinquent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Delinquent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Delinquent</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Code</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Collateral</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>0-30</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>31-60</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>61-90</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>&#062;90</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">50</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agricultural Land (unimproved)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">51</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agricultural Land with</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Improvements</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.08</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.08</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">52</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marina</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">53</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Childcare Facility/School</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">54</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Multi-Family</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.03</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.03</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">55</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Storage/Mini-Warehouse Facility</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">56</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Funeral Home</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">57</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recreational/Amusement</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">58</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Auto Repair Shop</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">59</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mortgaged Vessel</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">60</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commercial Real Estate-Other</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.05</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.07</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">61</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Collateral Shared w/another Asset</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.04</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.06</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>The above spreads are added to the rolling three month average of the three (3)&nbsp;year
Treasury Note. Collateral NPV calculations are adjusted monthly.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;G<BR>
Form of Assignment</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>BLANKET COLLATERAL ASSIGNMENT OF LOANS AND LIENS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">THE STATE OF TEXAS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT style="font-family: WP TypographicSymbols">&#039;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT style="font-family: WP TypographicSymbols">&#039;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">KNOW ALL MEN BY THESE</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT style="font-family: WP TypographicSymbols">&#039;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PRESENTS THAT:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">COUNTY OF <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT style="font-family: WP TypographicSymbols">&#039;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FH PARTNERS, L.P., a Texas limited partnership (the &#147;<U>Assignor</U>&#148;), having as its address
for the purposes of this Assignment, 6400 Imperial Drive, P.O. Box 8216, Waco, Texas 76714-8216, as
Assignor hereby sells, transfers, assigns, and conveys to <B>BANK OF SCOTLAND</B>, a federal branch of a
Scottish banking institution under applicable United States banking law, as agent (in such
capacity, the &#147;<U>Agent</U>&#148;) for the benefit of the Lenders (as defined below), having as its
address for the purposes of this Assignment, 565 Fifth Avenue, New York, New York 10017, without
recourse or warranty, express or implied, except only as specifically provided in that certain
Revolving Credit Agreement, dated as of even date herewith, among Assignor, the financial
institutions from time to time party thereto (the &#147;<U>Lenders</U>&#148;), and the Agent (as amended,
modified or supplemented from time to time, the &#147;<U>Revolving Credit Agreement</U>&#148;), all right,
title, and interest in the Loans (as defined below) and the following rights, interests and
documents, to secure all obligations arising under the Revolving Credit Agreement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Those certain loans and leases (the &#147;Loans&#148;) owned by Assignor evidence by the promissory
notes and leases (the &#147;<U>Notes</U>&#148;) described on <U>Exhibit &#147;A&#148;</U> attached hereto and made a
part hereof for all purposes;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;All rights, titles, interests, liens, security interests, privileges, claims, demands and
equities existing and to exist in connection with or as security for the payment of the Loans, the
Notes and the indebtedness evidenced by the Notes, and all documents and instruments evidencing,
securing, governing and guaranteeing the Loans, the indebtedness evidenced by the Notes and all
renewals, modifications, amendments, supplements and restatements thereof (collectively, the
&#147;Collateral Documents&#148;), including, without limitation, those, if any, recorded in the real
property records of the jurisdiction in which the real property encumbered, covered and affected
by the Collateral Documents is located; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;All policies of title insurance and rights and claims thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TO HAVE AND TO HOLD the Loans, the Notes and the Collateral Documents, together and along with
all rights, interests, liens, security interests, privileges, claims, demands and equities now or
hereafter had by the Assignor in connection therewith or as security therefor (herein collectively
called the &#147;<U>Security Interests</U>&#148;) unto the Assignee, its successors and assigns forever.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASSIGNOR hereby covenants and warrants that Assignor is the owner of the Notes, the
indebtedness evidenced thereby, the Collateral Documents and the Security Interests; and that the
Assignor has not assigned, transferred, encumbered, disposed of, mortgaged or otherwise
hypothecated the Notes, the indebtedness evidenced thereby, the Collateral Documents or any of the
Security Interests to any other party; that the Assignor has full right, power and authority to
transfer and convey the Loans, the Notes, the indebtedness evidenced thereby, and the Security
Interests, and to execute this Assignment; and that the undersigned signatory has full power and
authority to execute and deliver this Assignment and all action on Assignor&#146;s part requisite for
the due execution and delivery of this Assignment has been duly and effectively taken on behalf of
Assignor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXCEPT AS EXPRESSLY SET FORTH HEREIN AND IN THE REVOLVING CREDIT AGREEMENT, ASSIGNOR MAKES NO
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY TYPE, KIND, CHARACTER, OR NATURE WITH
RESPECT TO THE LOANS OR ANYTHING RELATING THERETO (INCLUDING THE COLLATERAL OR THE COLLATERAL
DOCUMENTS).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXECUTED as of this &#95;&#95;&#95;day of &#95;&#95;&#95;, 20&#95;&#95;&#95;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>ASSIGNOR</U>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">FH PARTNERS, L.P.,<BR>
a Texas limited partnership

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">By: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FH Asset Corp., General Partner
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: James C. Holmes</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Executive Vice President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Exhibit</U>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">A &#151; Description of Loans
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">THE STATE OF TEXAS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-family: WP TypographicSymbols">&#039;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-family: WP TypographicSymbols">&#039;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">COUNTY OF MCLENNAN
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-family: WP TypographicSymbols">&#039;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This instrument was acknowledged before me on &#95;&#95;&#95;, 20&#95;&#95;&#95;by James C. Holmes, the
Executive Vice President of FH Asset Corp., a Texas corporation, the General Partner of FH Partners
L.P., a Texas limited partnership, on behalf of said corporation and limited partnership.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WITNESS MY HAND AND SEAL OF OFFICE this &#95;&#95;&#95;day of &#95;&#95;&#95;, 20&#95;&#95;&#95;.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Printed Name:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notary Public in and for the State of Texas</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commission Expires:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>EXHIBIT &#147;A&#148;</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF LOANS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(see attached)
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U>ANNEX I</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>DEFINITIONS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in the Revolving Credit Agreement to which this Annex I is annexed, the following
terms shall have the meanings herein specified or as specified in the Section of such Loan
Agreement or in such other document herein referenced:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition Price</U>&#148; with respect to any Asset Pool means the purchase price to be paid
to the seller of the Asset Pool by Borrower for the acquisition of all rights to all property
included in such Asset Pool plus transaction costs relating to the acquisition of such Asset Pool
of up to 2% of the purchase price of such pool.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affected Interest Period</U>&#148; &#151; Section&nbsp;3.6(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affected Lender</U>&#148; &#151; Section&nbsp;3.6(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148; shall mean any Person (i)&nbsp;in which Borrower, individually, jointly and/or
severally, now or at any time or times hereafter, has or have an equity or other ownership interest
equal to or in excess of twenty &#151; five percent (25%) of the total equity of or other ownership
interest in such Person; and/or (ii)&nbsp;which directly or indirectly through one or more
intermediaries controls or is controlled by, or is under common control with Borrower; and/or (iii)
any officer or director of Borrower. For purposes of this definition, &#147;control&#148; shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of Stock, by contract or otherwise, and in
any case shall include direct or indirect ownership (beneficially or of record) of, or direct or
indirect power to vote, 25% or more of the outstanding shares of any class of capital stock of such
Person (or in the case of a Person that is not a corporation, 25% or more of any class of equity
interest). Notwithstanding the foregoing, none of the Harbor Debtors shall be deemed to be an
Affiliate for the purposes of this Agreement other than Section&nbsp;8.18.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agent</U>&#148; &#151; introductory paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aggregate Net Present Value&#148; </U>shall mean, as of any date of calculation, the sum of
the Net Present Values of each Asset Pool (after giving effect, in the case of a Borrowing Base
Certificate delivered contemporaneously with a Notice of Borrowing, to the acquisition by Borrower
of the Related Asset Pool with proceeds of the requested Loan).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; or &#147;<U>Loan Agreement</U>&#148; shall mean this Revolving Credit Agreement, as
it may from time to time be amended, extended, restated, supplemented or otherwise modified.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Indebtedness</U>&#148; of any Person shall mean all Indebtedness of such Person
other than trade payables incurred in the ordinary course of business which are not evidenced by an
Indebtedness Instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Margin</U>&#148; shall mean 2%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset</U>&#148; shall mean any real, personal and intangible property of a Person, including,
without limitation, accounts, chattel paper, contract rights, letters of credit, instruments and
documents, equipment , general intangibles, inventory, leases, options, licenses, real property,
and Equity Interests issued by any other Person whether now existing or hereafter acquired or
arising.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Pool</U>&#148; shall mean a portfolio of loans or other Assets described in an Asset
Pool Acquisition Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Pool Acquisition Certificate</U>&#148; shall mean, with respect to the Effective Date
Asset Pool, a certificate from an Executive Officer of Borrower in the form of Exhibit&nbsp;B-1, and
with respect to any other Asset Pool, a certificate from an Executive Officer of Borrower in the
form of Exhibit&nbsp;B-2 to the Agreement, to which is attached (as contemplated by the form of such
certificate) the asset purchase agreement relating to the Assets proposed to be purchased.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Pool Base Availability</U>&#148; shall mean, as of any date of determination, as to each
Asset Pool, an amount equal to 70% of the Net Present Value of said Asset Pool on such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Pool Proceeds</U>&#148; with respect to any Asset Pool for any Proceeds Period shall
mean the sum of (x)&nbsp;the Net Collections of such Asset Pool during such period, plus (y)&nbsp;the
proceeds of any sale or transfer of any Equity Interests issued by any Related REO Affiliate
received during such period (it being understood that any reference in this definition to any sale
or transfer of Equity Interests issued by an REO Affiliate shall not be construed to affect or
modify any prohibition thereof or requirement for the obtaining of any consent relating thereto set
forth elsewhere in this Agreement).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Pool Protection Expense Report</U>&#148; &#151; Section&nbsp;7.2(f).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Pool Protection Expenses</U>&#148; shall mean with respect to any Asset Pool, expenses
or other amounts which (w)&nbsp;Borrower has reasonably determined are necessary to advance to a Related
REO Affiliate for reasonable and necessary expenses to preserve or protect real property comprising
such Asset Pool owned by such REO Affiliate, or (x)&nbsp;constitute reasonable and customary, necessary
leasing commissions, reasonable and necessary tenant improvement costs paid by Borrower or a
Related REO Affiliate pursuant to a written lease comprising such Asset Pool, or capital
improvements to such property required in order for the property to be so leased, or (y)&nbsp;Borrower
has reasonably determined are necessary to protect other Assets comprising such Asset Pool securing
indebtedness owed to Borrower, or (z)&nbsp;constitute Obligor Funding Obligations under such Asset Pool,
such expenses or other amounts to constitute Asset Pool Protection Expenses when amounts therefor
are retained by Borrower or such REO Affiliate or, if earlier, when such expenses or other amounts
are paid.
</DIV>

<P align="center" style="font-size: 10pt">- 2 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assignment</U>&#148; shall mean an assignment from Borrower to the Collateral Agent,
substantially in the form of <U>Exhibit&nbsp;G</U>, with such modifications as Agent may reasonably
require in its sole discretion
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Associate</U>&#148;, when used to indicate a relationship with a Person, shall mean (i)
another Person (other than a Loan Party or a Subsidiary thereof) of which such Person is an officer
or partner or is, directly or indirectly, the beneficial owner of 10&nbsp;percent or more of any class
of equity securities, (ii)&nbsp;any trust or other estate in which such Person has a substantial
beneficial interest or as to which such Person or an immediate member of his family serves as
trustee or in a similar capacity, and (iii)&nbsp;any relative or spouse of such Person or any relative
of such spouse.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Auditors</U>&#148; shall mean KPMG LLP or other independent certified public accountants of
recognized standing selected by FirstCity and satisfactory to Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Base Rate</U>&#148; shall mean, for any day, the higher of (x)&nbsp;the fluctuating interest rate
per annum, in effect from time to time, established by Bank of Scotland in New York as its base,
prime or reference rate for U.S. domestic commercial loans in Dollars, or (y)&nbsp;the Federal Funds
Rate in effect on such day plus 0.5%. Any change in the interest rate resulting from a change in
the Base Rate shall be effective as of the opening of business on the day on which such change
becomes effective; it is understood and agreed that the aforesaid rates and the Base Rate are
reference rates only and do not necessarily represent the lowest or best rate actually charged to
any customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Base Rate Loan</U>&#148; shall mean any Loan during any period that it bears interest
determined by reference to the Base Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Basle Laws</U>&#148; &#151; Section&nbsp;3.4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrower</U>&#148; &#151; introductory paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrowing Base</U>&#148; shall mean, as of any date of calculation, an amount equal to,
determined as of the immediately preceding Payment Date but giving effect to all subsequent Asset
Pools acquired by Borrower, (x)&nbsp;the Aggregate Net Present Value, <U>less</U> (y)&nbsp;the sum of (i)
reserves as Agent shall from time to time deem in good faith to be appropriate which are not
otherwise taken into account in determining the Net Present Value of any Asset Pool, and (ii)&nbsp;the
REO Excess Value Adjustment. Once determined, the Borrowing Base shall remain in effect until the
earlier of the next Borrowing Date or the next Payment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrowing Base Availability</U>&#148; shall mean, as of any computation date, an amount equal
to 65% of the Borrowing Base in effect on such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrowing Base Certificate</U>&#148; shall mean a certificate, in the form attached as Exhibit
E hereto, of the CFO of Borrower setting forth the Borrowing Base and showing the computation
thereof in reasonable detail.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrowing Date</U>&#148; &#151;  Section&nbsp;2.2.
</DIV>

<P align="center" style="font-size: 10pt">- 3 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; shall mean any day that is not a Saturday, Sunday or legal holiday in
the State of New York, the State of Texas, the State of Connecticut (or any other State where the
Lockbox Account is maintained) or a day on which banking institutions chartered by the State of New
York, the State of Texas, the State of Connecticut (or any other State where the Lockbox Account is
maintained) or the United States are legally required or authorized to close, and, when used in
connection with LIBOR, means any such Business Day which is also a day on which deposits in Dollars
and Euros may be dealt in on the London interbank market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Capital Expenditures</U>&#148; shall mean, with respect to any Person, all expenditures by
such Person which should be capitalized in accordance with GAAP, including all such expenditures
with respect to fixed or capital Assets (including, without limitation, expenditures for
maintenance and repairs which should be capitalized in accordance with GAAP) and the amount of
obligations under Capitalized Leases incurred by such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Capitalized Lease</U>&#148; shall mean any lease which is, or is required under GAAP to be,
capitalized on the balance sheet of the lessee at such time, and &#147;Capitalized Lease Obligation&#148; of
any Person at any time shall mean the aggregate amount of rental expenses which is, or is required
under GAAP to be, capitalized on the books of such Person under Capitalized Leases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Certified Error Certificate</U>&#148; shall have the meaning set forth in the form of
Waterfall Certificate approved by Agent prior to the first Borrowing Date of any Loans under this
Agreement (as the form of certificate constituting the &#147;Waterfall Certificate&#148; for the purposes of
this Agreement may be from time to time amended, supplemented, restated or otherwise modified).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>CFO</U>&#148;, as to any Loan Party shall mean such Loan Party&#146;s chief financial officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Charges</U>&#148; shall mean all national, Federal, state, county, city, municipal and/or
other governmental (or any instrumentality, division, agency, body or department thereof, including
without limitation the PBGC) taxes, levies, assessments, charges, liens, claims or encumbrances
upon and/or relating to the Obligations, a Person&#146;s Assets, a Person&#146;s business, a Person&#146;s
ownership and/or use of any of its Assets, a Person&#146;s income and/or gross receipts and/or a
Person&#146;s ownership and/or use of any of its Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Charter Document</U>&#148; shall mean (i)&nbsp;with respect to a corporation: its certificate or
articles of incorporation or association and its by &#151; laws or comparable documents under non &#151; US
laws; (ii)&nbsp;with respect to a partnership: its partnership agreement, certificate of partnership (if
a limited partnership) and its certificate of doing business under an assumed name (if a general
partnership); (iii)&nbsp;with respect to a trust, its trust agreement or declaration of trust; and (iv)
with respect to a limited liability company, its certificate of formation and operating agreement
or analogous documents; in each case, with such other similar documents as Agent shall request or
specify.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Checklist</U>&#148; shall mean the Closing Checklist in the form of <U>Schedule
6.12</U> to the Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Office</U>&#148; shall mean the office of Agent at 565 Fifth Avenue, New York, New
York 10017 or such other office as may be designated in writing to Borrowers by Agent.
</DIV>

<P align="center" style="font-size: 10pt">- 4 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Office Time</U>&#148; shall mean the local time in effect at the Closing Office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148; shall mean the Internal Revenue Code of 1986, as the same may be amended from
time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Collateral</U>&#148; &#151; Section&nbsp;10.30.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Collateral Agent</U>&#148; shall mean Agent in its capacity as agent under one or more of the
Security Documents and its successor and assigns (Agent, in such capacity, being sometimes referred
to herein and in other Loan Documents as the &#147;Collateral Agent&#148; and sometimes as the &#147;Agent&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Collateral Loans</U>&#148; shall mean each loan and Lease owned or acquired by FH Partners,
and each loan evidenced by an REO Note and each and every other loan or Lease (or interest therein
or proceeds thereof) now or at any time hereafter owned by FH Partners, and any judgment which
arises as a result of judicial action to resolve rights or claims under such a loan or lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commitment Commission</U>&#148; &#151; Section&nbsp;4.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commitment Period</U>&#148; shall mean the period from the Effective Date to and including the
Maturity Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Group</U>&#148; shall mean FirstCity and its consolidated Subsidiaries, other
than the Harbor Debtors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Custodian</U>&#148; shall mean Wells Fargo Bank Iowa, National Association, or any other
entity or national banking association which has been approved in writing by Agent and which has
executed, along with Borrower, a replacement Custodial Agreement acceptable to Agent, which shall
act in the capacity as Custodian under such replacement Custodial Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Custodian Agreement</U>&#148; shall mean that certain Custodial Agreement by and among the
Custodian, Borrower, Agent and the Servicer whereby the Custodian agrees to act as bailee for
documents related to the Asset Pools, as such agreement may hereafter be amended or supplemented
from time to time, together with any replacements or substitutions therefor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Default</U>&#148; shall mean any event which with notice or lapse of time, or both, would
become an Event of Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Depositary</U>&#148; shall mean Bank of America, N.A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dividend</U>&#148; &#151; Section&nbsp;8.10.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dollars</U>&#148;, &#147;<U>U.S. $</U>&#148;, &#147;<U>$</U>&#148; and &#147;<U>U.S. dollars</U>&#148; shall mean the
lawful currency of the United States of America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>EBITDA</U>&#148; for any period, shall mean net income (excluding extraordinary and non -
recurring items, including those which are non &#151; cash in nature) for such period <U>plus</U> (i)
all interest
</DIV>

<P align="center" style="font-size: 10pt">- 5 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expense, <U>plus</U> (ii)&nbsp;income tax expenses, <U>plus</U> (iii)&nbsp;depreciation and
amortization (including amortization of any goodwill or other intangibles), <U>minus</U> or
<U>plus</U> (iv)&nbsp;without duplication, gains and losses attributable to any sale of Assets not in
the ordinary course of business, <U>plus</U> or <U>minus</U> (v)&nbsp;any other non &#151; cash charges or
gains which have been subtracted or added in calculating such net income other than gains on asset
- securitizations and loan loss provision charges.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Date</U>&#148; &#151; Section&nbsp;6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Date Asset Pool</U>&#148; shall mean the portfolio of loans or other Assets
described in the Asset Pool Acquisition Certificate delivered by Borrower in connection with the
Effective Date Loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Date Loan</U>&#148; &#151; Section&nbsp;2.1(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eligible Asset Pool</U>&#148; shall mean an Asset Pool, to be acquired by Borrower from an
Eligible Seller for an all cash purchase price, which (unless Agent in its discretion otherwise
consents in writing) conforms in every respect with the requirements of Exhibit&nbsp;C to the Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eligible Seller</U>&#148; shall mean a seller of an Asset Pool which is selling an Asset Pool
the Assets of which were originated in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Laws</U>&#148; shall mean all laws, common law, statutes, rules and regulations,
and all judgments, decrees, franchises, orders or permits, issued, promulgated, approved or entered
thereunder by any Government Authority relating to pollution or protection of the environment or
occupational health and safety, including, without limitation, those relating to emissions,
discharges, releases or threatened releases of any waste, pollutant, chemical, hazardous material,
hazardous substance, toxic substance, hazardous waste, special waste, petroleum or petroleum -
derived substance or waste, or any constituent of any such pollutant material, substance or waste,
into the environment (including, without limitation, ambient air, surface water, ground water, land
surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of any waste, pollutant, chemical,
hazardous material, hazardous substance, toxic substance, hazardous waste, special waste, petroleum
or petroleum &#151; derived substance or waste.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Equity Interests</U>&#148; shall mean any equity interests issued by any Person, including,
without limitation, Stock (including, without limitation, common stock and preferred stock),
partnership interests or limited liability company interests, any other securities convertible
into, or exercisable for, any of the foregoing or other securities of such Person, and options and
warrants or other rights to acquire any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148; shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA Affiliate</U>&#148; shall mean any Person which is from time to time a member of a
controlled group or a group under common control with any Loan Party within the meaning of Sections
414(b), 414(c), 414(m) or 414(o) of the Code or Section&nbsp;4001(a)(14) of ERISA.
</DIV>

<P align="center" style="font-size: 10pt">- 6 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurocurrency Interest Determination Date</U>&#148; shall mean the date as of which LIBOR is
determined, which shall be two Business Days prior to the commencement of a Eurocurrency Interest
Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurocurrency Interest Period</U>&#148; shall mean, with respect to each Eurocurrency Loan, the
interest period applicable pursuant to Section&nbsp;3.9(a) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurocurrency Loan</U>&#148; shall mean a Loan during any period that it bears interest
determined by reference to LIBOR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Event of Default</U>&#148; shall mean each of the Events of Default defined in Section&nbsp;9.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Execution Date</U>&#148; shall mean the date on which all parties to this Agreement shall have
signed a copy this Agreement (whether the same or different copies) and shall have delivered the
same to Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Executive Officer</U>&#148; shall mean the President of Borrower, the CFO of Borrower or any
Senior Vice President of Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Facility Fee</U>&#148; &#151; Section&nbsp;4.4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FC Commercial</U>&#148; shall mean FirstCity Commercial Corporation, a Texas corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FC Europe</U>&#148; shall mean FirstCity Europe Corporation, a Texas corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FC Holdings</U>&#148; shall mean FirstCity Holdings Corporation, a Texas corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FC International</U>&#148; shall mean FirstCity International Corporation, a Texas
corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FC Mexico</U>&#148; shall mean FirstCity Mexico, Inc., a Texas corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FC Servicing</U>&#148; shall mean FirstCity Servicing, Inc., a Texas corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Federal Funds Rate</U>&#148; shall mean the rate of interest charged by banks with excess
reserves at a Federal Reserve district bank to banks needing overnight loans to meet reserve
requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Final Asset Pool Acquisition Certificate</U>&#148; with respect to an Asset Pool at any time,
shall mean the Asset Pool Acquisition Certificate with respect to such Asset Pool or, if such Asset
Pool Acquisition Certificate has been supplemented or revised, the last supplement or revision of
such Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Final NPV Pool Certificate</U>&#148; with respect to any Asset Pool shall mean a certificate
in a form approved by Agent prior to the first Borrowing Date of Loans under this Agreement which
sets forth the anticipated cash flows and Net Present Value of each Asset included in such Asset
Pool and lists each item of collateral for any Asset in such Asset Pool.
</DIV>

<P align="center" style="font-size: 10pt">- 7 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Financial Statements</U>&#148; shall mean, with respect to any Person, the statement of
financial position (balance sheet) and the statement of earnings, cash flow, and stockholders&#146; (or
partners&#146; or members) equity of such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FirstCity</U>&#148; shall mean FirstCity Financial Corporation, a Delaware corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fiscal Year</U>&#148; shall mean each January 1 to December&nbsp;31 period. &#147;Fiscal Year&#148; followed
by a year means the Fiscal Year with its Fiscal Year &#151; End in such calendar year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; shall mean generally accepted accounting principles (as promulgated by the
Financial Accounting Standards Board or any successor entity) in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Government Authority</U>&#148; shall mean any nation or government, any state or political
subdivision thereof, any agency, authority, regulatory body, bureau, central bank, commission,
department or instrumentality of any of the foregoing or any other entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guarantor</U>&#148; shall mean (i)&nbsp;FirstCity; (ii)&nbsp;FC Commercial; (iii)&nbsp;FC Servicing; (iv)&nbsp;FC
Holdings; (v)&nbsp;FC International; (vi)&nbsp;FC Mexico; and (vii)&nbsp;FC Europe; and any other Person which is
a guarantor under any Guaranty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guaranty</U>&#148; shall mean any one or more of the guaranties delivered pursuant to Section
6 and each other guaranty agreement delivered in respect of the Obligations, as each such agreement
may be from time to time amended, extended, restated, supplemented or otherwise modified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guaranty Equivalent</U>&#148; shall mean any agreement, document or instrument pursuant to
which a Person directly or indirectly guarantees, becomes surety for, endorses, assumes, agrees to
indemnify the obligee of any other Person against, or otherwise agrees, becomes or remains liable
(contingently or otherwise) for, such obligation, other than (i)&nbsp;by endorsements of instruments in
the ordinary course of business or (ii)&nbsp;indemnification of sellers of assets related to breaches of
confidential agreements and obligations related to performance of purchase and sale agreements in
the conduct of the Asset acquisition business. Without limitation, a Guaranty Equivalent shall be
deemed to exist if a Person agrees, becomes or remains liable (contingently or otherwise), directly
or indirectly: (i)&nbsp;to purchase or assume, or to supply funds for the payment, purchase or
satisfaction of, an obligation; (ii)&nbsp;to make any loan, advance, capital contribution or other
investment in, or a purchase or lease of any property or services from, a Person; (iii)&nbsp;to maintain
the solvency of such Person; (iv)&nbsp;to enable such Person to meet any other financial condition; (v)
to enable such Person to satisfy any obligation or to make any payment; (vi)&nbsp;to assure the holder
of an obligation against loss; (vii)&nbsp;to purchase or lease property or services from such Person
regardless of the non &#151; delivery of or failure to furnish of such property or services; or (viii)
in respect of any other transaction the effect of which is to assure the payment or performance (or
payment of damages or other remedy in the event of nonpayment or nonperformance) of any obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Harbor Debtors</U>&#148; shall mean, collectively, (i)&nbsp;Harbor Financial Mortgage Corp., (ii)
NAF, Inc. (f/k/a New America Financial, Inc.), (iii)&nbsp;Hamilton Financial Services Corp., (iv)
</DIV>

<P align="center" style="font-size: 10pt">- 8 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Community National Mortgage Corp., (v)&nbsp;CalCap, Inc. and (vi)&nbsp;Harbor Financial Group, Inc, and
any Subsidiary of such Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indebtedness</U>&#148; shall mean, with respect to any Person (without duplication): (i)&nbsp;all
obligations on account of money borrowed by, or credit extended to or on behalf of, or for or on
account of deposits with or advances to, such Person; (ii)&nbsp;all obligations of such Person evidenced
by bonds, debentures, notes or similar instruments; (iii)&nbsp;all obligations of such Person for the
deferred purchase price of property or services other than trade payables incurred in the ordinary
course of business and on terms customary in the trade; (iv)&nbsp;all obligations secured by a Lien on
property owned by such Person (whether or not assumed); and all obligations of such Person under
Capitalized Leases (without regard to any limitation of the rights and remedies of the holder of
such Lien or the lessor under such Capitalized Lease to repossession or sale of such property); (v)
the face amount of all letters of credit issued for the account of such Person and, without
duplication, the unreimbursed amount of all drafts drawn thereunder, and all other obligations of
such Person associated with such letters of credit or draws thereon; (vi)&nbsp;all obligations of such
Person in respect of acceptances or similar obligations issued for the account of such Person;
(vii)&nbsp;all obligations of such Person under a project financing or similar arrangement; (viii)&nbsp;all
obligations of such Person under any interest rate or currency protection agreement, interest rate
or currency future, interest rate or currency option, interest rate or currency swap or cap or
other interest rate or currency hedge agreement; and (ix)&nbsp;all obligations and liabilities with
respect to unfunded vested benefits under any &#147;employee benefit plan&#148; or with respect to withdrawal
liabilities incurred under ERISA by Borrower or any ERISA Affiliate to a &#147;multiemployer plan&#148;, as
such terms are defined under the Employee Retirement Income Security Act of 1974.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indebtedness Instrument</U>&#148; shall mean any note, mortgage, indenture, chattel mortgage,
deed of trust, loan agreement, hypothecation agreement, Guaranty Equivalent, pledge agreement,
security agreement, financing statement or other document, instrument or agreement evidencing or
securing the payment of or otherwise relating to the borrowing of monies. Indebtedness Instruments
shall include, but not be limited to the Loan Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified Party</U>&#148; &#151; Section&nbsp;12.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Interest Coverage</U>&#148; shall mean, for any period, total interest expense (including that
attributable to Capital Leases under GAAP) of the Consolidated Group on a consolidated basis
determined in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>IRS</U>&#148; shall mean the Internal Revenue Service of the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lease</U>&#148; shall mean agreements providing for payment to the Borrower as owner and/or
lessor of personal property for the right to possession and use of such personal property for a
specified period of time and shall include an agreement determined to be a lease or a security
interest under the UCC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Legal Requirements</U>&#148; shall mean, with respect to any Person, all laws, common law,
statutes, rules and regulations of any Government Authority to which such Person or any of its
</DIV>

<P align="center" style="font-size: 10pt">- 9 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assets is subject or any judgment, decree, franchise, order or permit of any Government
Authority applicable to such Person or any of its assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lender Assignee</U>&#148; &#151; Section&nbsp;12.4(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lenders</U>&#148; &#151; introductory paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>LIBOR</U>&#148; shall mean, for each Eurocurrency Interest Period, (x)&nbsp;the per annum rate of
interest at which U.S. Dollar or Euro deposits in the amount of the outstanding principal balance
of the Loan are or would be offered for such Eurocurrency Interest Period in the London interbank
market at 11:00&nbsp;A.M. London time two Business Days prior to the start of such Eurocurrency Interest
Period as published by the British Bankers&#146; Association as the &#147;Interest Settlement Rate&#148; for such
period, divided by (y)&nbsp;a percentage equal to 100% minus the then stated maximum rate of all reserve
requirements (including without limitation any marginal, emergency, supplemental, special or other
reserves required by applicable law) applicable to any member bank of the Federal Reserve System in
the United States in respect of Eurocurrency funding or liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lien</U>&#148; shall mean any mortgage, deed of trust, security deed, pledge, security
interest, encumbrance, lien or other charge of any kind or any other agreement or arrangement
having the effect of conferring security (including any agreement to give any of the foregoing, any
assignment or lease in the nature thereof, and any conditional sale or other title retention
agreement), any lien arising by operation of law, and the filing of or agreement to give any
financing statement under the Uniform Commercial Code of any jurisdiction (or any similar or
comparable law of any jurisdiction that has not enacted the Uniform Commercial Code).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan(s)</U>&#148; &#151; Section&nbsp;2.1(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Commitment</U>&#148; shall mean as to each Lender, the amount set forth opposite its name
on Schedule&nbsp;2.1 under the heading &#147;Loan Commitment&#148; as such amount may be modified by the
provisions of any Transfer Supplement from time to time entered into and as the same may from time
to time be reduced or terminated pursuant to Section&nbsp;2.6, Section&nbsp;9 or any other Section of the
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Documents</U>&#148; shall mean, individually and collectively, this Agreement, the Notes,
the Guaranties, the Lockbox Agreement, the Services Agreement, the Servicer Indemnity Agreement,
the Custodian Agreement, the Security Documents and all other instruments and agreements heretofore
or from time to time hereafter executed by or on behalf of Borrower or any other Loan Party in
connection herewith or therewith, in each case as amended, extended, restated, supplemented or
otherwise modified from time to time. Without limiting the generality of the foregoing, each
amendment to (or constituting part of) this Agreement or any other Loan Document and each
instrument and agreement (including, without limitation, consents or waivers, but excluding any
amendment, consent or waiver executed prior to the Effective Date) executed in connection with any
Loan Document shall be deemed to be a Loan Document for all purposes of the Agreement and the other
Loan Documents.
</DIV>

<P align="center" style="font-size: 10pt">- 10 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Party</U>&#148; shall mean, individually and collectively, Borrower and each Guarantor
and each other Person which has executed any Security Document as a pledgor or grantor of
collateral thereunder, but excluding REO Affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lockbox</U>&#148; shall mean a post office box opened by the Lockbox Agent with the United
States Postal Service pursuant to the Lockbox Agreement for the receipt of payments relating to
Asset Pools.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lockbox Account</U>&#148; shall collectively mean the account(s) to be maintained at Bank of
America, N.A. (and/or its successors), and at any other national banking association approved in
writing by Agent and Borrower, as more particularly defined in the applicable Lockbox Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lockbox Agent</U>&#148; shall mean, as applicable, Bank of America, N.A. (and/or its
successors), in its capacity as &#147;Lockbox Bank&#148; under the applicable Lockbox Agreement or any other
entity or national banking association approved in writing by Lender and Borrower in its capacity
as the Lockbox Bank under the Lockbox Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lockbox Agreement</U>&#148; shall mean, collectively, each Agreement as to Wholesale Lockbox
and Cash Management Services, dated as of even date herewith, by and among Lockbox Agent, Borrower,
Lenders and the Servicer as such Lockbox Agreement(s) may hereafter be amended, supplemented, or
replaced from time to time together with any replacement or substitution therefor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>LTV Ratio</U>&#148; shall mean as of any date of determination and with respect to any Loan,
the ratio of the unpaid principal amount of such Loan on such date to the Net Present Value of the
Related Asset Pool on such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Majority Lenders</U>&#148; as of a particular date shall mean the holders of at least 51% of
the aggregate unpaid principal amount of all Loans at the particular time outstanding or, if no
Loans are then outstanding, Lenders whose Loan Commitments aggregate at least 51% of the Total Loan
Commitment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Management Letter</U>&#148; shall mean any correspondence or report submitted by the Auditors
to a Loan Party&#146;s chief executive officer, its Board of Directors or any committee thereof
containing comments and suggestions concerning a Loan Party&#146;s accounting procedures and systems
based upon the work done by the Auditors during their annual or other audit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Adverse Change</U>&#148; shall mean a material adverse change in (i)&nbsp;the business,
properties, operations, prospects or condition (financial or otherwise) of Borrower and its
Subsidiaries, taken as a whole or (ii)&nbsp;the ability of Borrower or any other Loan Party to perform,
or of Agent to enforce, any of the Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Adverse Effect</U>&#148; shall mean an effect that would result in a Material Adverse
Change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Maturity Date</U>&#148; shall mean November&nbsp;12, 2008.
</DIV>

<P align="center" style="font-size: 10pt">- 11 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Minimum Release Price</U>&#148; &#151;  Section&nbsp;2.7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Multiemployer Plan</U>&#148; shall mean any employee benefit plan which is a &#147;multiemployer
plan&#148; within the meaning of Section&nbsp;3(37) of ERISA and to which any Loan Party or any ERISA
Affiliate of Borrower contributes or has been obligated to contribute.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Net Collections</U>&#148; with respect to any Asset Pool, for any Proceeds Period, shall mean
the gross aggregate amount received during such period by Borrower on account of the Assets
comprising such Asset Pool (including, in addition, amounts received by any REO Affiliate in
connection with the Assets of such Asset Pool) or collateral therefor, and including amounts
received on account of such Assets prior to the commencement of such period which were paid to or
for the benefit of Borrower during such period, reduced by (a)&nbsp;servicing fees, custodial fees and
lockbox bank fees related to such Assets paid by Borrower during such period, (b)&nbsp;escrow payments
or deposits made by any Account Debtor related to such an Asset, and (c)&nbsp;Asset Pool Protection
Expenses related to such Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Net Insurance and Condemnation Proceeds</U>&#148; shall mean all insurance and condemnation
proceeds paid to Borrower, the Servicer or any REO Affiliate in connection with Assets comprising
any Asset Pool (including any REO Property), less reasonable and customary costs of collection
actually paid by Borrower or any REO Affiliate to any Third Party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Net Present REO Affiliate Value</U>&#148; shall mean, with respect to any REO Affiliate, the
Net Present Value of the Assets of such REO Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Net Present Value</U>&#148; as to any Asset Pool, as of any date of calculation, an amount
equal to the net present value of all reasonably projected future collections from such Asset Pool
as of such date (including, any REO Notes issued by any Related REO Affiliate, but excluding
projected future collections relating to any REO Property), reduced by applicable Asset Pool
Protection Expenses and by reasonable and necessary collection expenses and discounted using the
&#147;ASR NPV&#148; discount rate assignments utilized by Borrower in making such determinations for such
Asset Pool as set forth on Exhibit&nbsp;D to the Agreement, as adjusted from time to time with the
approval of Agent; all of which determinations must be reasonably satisfactory to Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notes</U>&#148; &#151; Section&nbsp;2.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notice of Borrowing</U>&#148; shall mean notice of borrowing providing the information
described in Section&nbsp;2.2(a), and such other information as Agent shall require, in the form
attached to this Agreement as <U>Exhibit&nbsp;F</U> to the Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Obligations</U>&#148; shall mean (x)&nbsp;with respect to each Loan Party other than Borrower, all
obligations of such Loan Party with respect to the repayment or performance of any obligations
(monetary or otherwise) of Borrower arising under or in connection with this Agreement, the Notes
or any other Loan Document, and (y)&nbsp;with respect to Borrower, all obligations of Borrower with
respect to the repayment or performance of obligations (monetary or otherwise) arising under or in
connection with this Agreement, the Notes or any other Loan Document.
</DIV>

<P align="center" style="font-size: 10pt">- 12 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Obligor</U>&#148; shall mean each borrower, lessee and other obligor under any Collateral Loan
or any other loan, lease or other Asset included in any Asset Pool, including any REO Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Obligor Funding Obligations</U>&#148; shall mean obligations (whether pending, contingent or
otherwise) of Borrower to make one or more advances to a Person which is the obligor of one or more
outstanding loans the rights to which were acquired by Borrower pursuant to a purchase by Borrower
of an Asset Pool.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Other Laws</U>&#148; &#151; Section&nbsp;3.4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent</U>&#148; shall mean any Person now or at any time hereafter owning or controlling
(alone or with Borrower, any Subsidiary and/or any other Person) at least a majority of the issued
and outstanding Stock or other ownership interest of FirstCity or any Subsidiary thereof. For
purposes of this definition, &#147;control&#148; shall have the same meaning ascribed to such term in the
definition of &#147;Affiliate&#148;. Notwithstanding the forgoing, no Person shall be a Parent which is not
a Parent of FirstCity or a 51% or more owned subsidiary, directly or indirectly, of FirstCity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Past &#151; Due Rate</U>&#148; &#151; Section&nbsp;3.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Payment Date</U>&#148; &#151; Section&nbsp;5.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PBGC</U>&#148; shall mean the Pension Benefit Guaranty Corporation established pursuant to
Section&nbsp;4002 of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pension Plan</U>&#148; shall mean any employee pension benefit plan subject to Title IV of
ERISA and maintained by any Loan Party or any ERISA Affiliate of any Loan Party or any such plan to
which any Loan Party or any ERISA Affiliate is or has been required to contribute on behalf of any
of its employees, other than a Multiemployer Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Liens</U>&#148; shall mean (i)&nbsp;any liens created pursuant to the Loan Documents in
favor of Agent for the benefit of Lenders and Agent to secure the Obligations; (ii)&nbsp;liens for
Charges which are not yet due and payable or liens for Charges against any REO Property provided
said Charge is paid before any scheduled tax sale or action to foreclose upon such lien, and claims
and unfunded liabilities under ERISA not yet due and payable or which are being contested in good
faith by appropriate proceedings diligently pursued; (iii)&nbsp;liens arising in connection with
worker&#146;s compensation, unemployment insurance, old age pensions and social security benefits which
are not overdue or are being contested in good faith by appropriate proceedings diligently pursued,
<U>provided that</U> in the case of any such contest any proceedings commenced for the enforcement
of such lien shall have been duly suspended and such provision for the payment of such lien has
been made on the books of Borrower (or the applicable Affiliate) as may be required by GAAP; (iv)
liens incurred in the ordinary course of business to secure the performance of statutory
obligations arising in connection with progress payments or advance payments due under contracts
with the United States Government or any agency thereof entered into in the ordinary course of
business; (v)&nbsp;any liens securing Indebtedness of Borrower to any Persons in an amount not greater
than $250,000 for each such Person, provided the aggregate amount of Indebtedness secured by all
such Liens shall not exceed $500,000; (vi)&nbsp;Liens on REO Properties granted by an REO Affiliate in
favor of Borrower for which
</DIV>

<P align="center" style="font-size: 10pt">- 13 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assignments have been delivered to Lenders; and (vii)&nbsp;Permitted Prior Liens disclosed to Agent
in writing prior to the applicable Borrowing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Prior Liens</U>&#148; shall mean Liens upon any asset securing payment of a
Collateral Loan which have priority (are senior and superior) to the Lien of the mortgage or deed
of trust or security interest securing such Collateral Loan and which were existing on the date the
Collateral Loan was purchased by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; shall mean and include an individual, a partnership, a corporation (including
a business trust), a joint stock company, a limited liability company, a trust, an unincorporated
association, a joint venture or other entity or a government or an agency or political subdivision
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Plan</U>&#148; shall mean any &#147;employee benefit plan&#148; (within the meaning of Section&nbsp;3(3) of
ERISA) maintained by any Loan Party or any ERISA Affiliate or any such plan to which any Loan Party
or any ERISA Affiliate is or has been required to contribute on behalf of any of its employees,
other than a Multiemployer Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Proceeds Period</U>&#148; with respect to any Payment Date, shall mean the period commencing
on, but excluding, the immediately preceding Payment Date and ending on, but including, said
Payment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchasing Lenders</U>&#148; &#151; Section&nbsp;12.4(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rate of Borrowing</U>&#148; &#151; Section&nbsp;3.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Records</U>&#148; shall mean all books, records, computer records, computer software, ledger
cards, programs and other computer materials, customer and supplier lists, invoices, orders and
other property and general intangibles at any time evidencing or relating to Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Recoveries</U>&#148; shall mean any funds, or substitution of receipts or collateral, received
by Lenders or Agent (a)&nbsp;from the sale, collection or other disposition of Collateral pursuant to
the Security Documents, or (b)&nbsp;from any distribution to any of Lenders or Agent, or abandonment to
any of them, or substitute Liens or payment given to any of them pursuant to events or proceedings
of the nature referred to in Section&nbsp;9.8 of the Agreement, or otherwise, which distribution or
abandonment pertains to the Collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Regulatory Change</U>&#148; means, relative to any Lender or Agent, any change after the
Effective Date in any (or the adoption after the Effective Date of any new):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United States Federal, state or local law or foreign law applicable to
Agent or such Lender; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) regulation, interpretation, directive, or request (whether or not having
the force of law) applying to Agent or any Lender of any Government Authority
charged with the interpretation or administration of any law referred to in clause
(a)&nbsp;or of any fiscal, monetary, central bank or other authority having jurisdiction
over Agent or such Lender.
</DIV>

<P align="center" style="font-size: 10pt">- 14 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Related Asset Pool</U>&#148;, with respect to the Effective Date Loan, shall mean the
Effective Date Asset Pool, and with respect to any other any Loan, shall mean the Asset Pool
specified in the Notice of Borrowing relating thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Related REO Affiliate</U>&#148; , with respect to any Asset Pool, shall mean an REO Affiliate
that has acquired Assets comprising all or part of such Asset Pool.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>REO Affiliate</U>&#148; shall mean (i)&nbsp;First X Realty L.P., a Texas limited partnership, and
First X Corp., a Texas corporation, its general partner, or (ii)&nbsp;any other Person, other than
Borrower, any Guarantor or any Loan Party, which is a corporation, limited liability company or
partnership 100% of the Equity Interests in which are owned by Borrower (or, in the case of such an
entity which is a limited partnership, 100% of the limited partnership interest of which is owned
by Borrower and 100% of the interest in the general partner is owned by Borrower), established
solely to acquire, from Borrower or a seller from which Borrower is acquiring other Assets, title
to (and owns no Assets other than) parcels of real property (or distressed notes secured by real
property for purposes of obtaining title to real property securing such loans) in exchange for,
with respect to each such parcel, a promissory note in a principal amount no less than 96% of the
value (as reasonably determined by Borrower and the REO Affiliate) of the property;
<U>provided</U> that no Person shall constitute or continue to constitute an REO Affiliate if (A)
such Person acquires property from any Person other than (x)&nbsp;Borrower or a Person from whom
Borrower is acquiring other Assets, or (y)&nbsp;in the case where it has acquired a note from Borrower
solely for purposes of acquiring title to the real property securing such note, the obligor of such
note; or (B)&nbsp;engages in any business other than business incidental to owning and selling the
parcels of real property so acquired by such REO Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>REO Excess Value Adjustment</U>&#148; shall mean the amount, if any, by which the Net Present
REO Affiliate Value of all REO Affiliates exceeds 25% of the Net Present Value of all Asset Pools
owned by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>REO Note</U>&#148; shall mean, as to each REO Property, a demand promissory note which (i)&nbsp;is
in form and substance satisfactory to Lenders, (ii)&nbsp;is executed and delivered to Borrower by the
REO Affiliate which owns the REO Property in question, (iii)&nbsp;is in an amount equal to ninety-six
percent (96%) of the Net Present Value for that Asset, (iv)&nbsp;bears interest at the interest rate
applicable to Loans hereunder with a provision whereby such interest rate shall increase to the
Past-Due Rate upon the occurrence of a default hereunder, (v)&nbsp;requires principal and interest
payments to be in an amount equal to Net Collections received by such REO Affiliate with respect to
the underlying REO Property each Proceeds Period, and (vi)&nbsp;contains provisions whereby the
occurrence of an Event of Default hereunder shall constitute an event of default under such REO
Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>REO Property</U>&#148; shall mean any real property, or any interest therein, now or hereafter
legally or beneficially owned by Borrower or any of its REO Affiliates including, without
limitation, any real property which has been or is foreclosed upon by the Seller or Borrower or any
of its REO Affiliates or which was or is conveyed to Borrower or any of its REO Affiliates by a
deed in lieu of foreclosure.
</DIV>

<P align="center" style="font-size: 10pt">- 15 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>REO Post &#151; 25% Time</U>&#148; shall mean any period from and after the date on which the Net
Present REO Affiliate Value of all REO Affiliates exceeds 25% of the Net Present Value of all Asset
Pools owned by Borrower through the second Business Day after Borrower gives Agent written notice
along with evidence satisfactory to Agent that such Net Present REO Affiliate Value no longer so
exceeds 25 % of the Net Present Value of all Asset Pools owned by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>REO Security Documents</U>&#148; shall mean mortgages or deeds of trust, assignments of leases
and rents, security agreements and appropriate UCC financing statements, in form and substance
satisfactory to Agent, as required by Agent in its sole discretion for each REO Property, to be
executed by each REO Affiliate in favor of Borrower and pursuant to the terms of which, as security
for the applicable REO Note (and, at Lenders&#146; option, the Notes), there shall be (a)&nbsp;granted and
conveyed to Borrower Liens upon each REO Property (including, all personal property associated
therewith) owned by such REO Affiliate from time to time as is described therein and (b)&nbsp;assigned
to Borrower all leases and rents with respect thereto; as the same may be amended, renewed,
modified, extended or restated from time to time with the consent of Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reportable Event</U>&#148; shall mean a Reportable Event described in Section&nbsp;4043 of ERISA
and the regulations issued thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Requisite Consents</U>&#148; &#151; Section&nbsp;6.6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Requisite Priority</U>&#148; shall mean first priority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Revolving Acquisition Agreement</U>&#148; shall mean that certain Revolving Credit Agreement,
dated as of November&nbsp;12, 2004, among FirstCity, the financial institutions from time to time party
hereto and Bank of Scotland, as Agent, as the same may be amended, restated or otherwise modified
from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>SEC</U>&#148; shall mean the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities</U>&#148; shall have the meaning ascribed to that term in the Securities Act of
1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Laws</U>&#148; shall mean all applicable Federal and state securities laws and
regulations promulgated pursuant thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Security Agreements</U>&#148; shall mean any one or more of the security agreements delivered
pursuant to Section&nbsp;6.12 (or on the document checklist referred to therein) and each other security
agreement heretofore or from time to time hereafter delivered in respect of the Obligations, as
each such agreement may be from time to time amended, extended, restated, supplemented or otherwise
modified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Security Documents</U>&#148; shall be the collective reference to (x)&nbsp;each of the agreements
referred to in Section&nbsp;6.12 (or on the document checklist referred to therein) pursuant to which
Collateral is or was granted or is or was intended to be granted, directly or indirectly, to Agent
on behalf of Lenders, (y)&nbsp;each agreement entered into after the Execution Date pursuant to which
any collateral is or was granted or is or was intended to be granted, directly or indirectly, to
Agent on behalf of Lenders and any other Person (if any) sharing an interest in such collateral,
</DIV>

<P align="center" style="font-size: 10pt">- 16 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and (z)&nbsp;all amendments, supplements or other modifications to such agreements or replacements
thereof. Without limiting the generality of the foregoing, each Security Agreement, each Pledge
Agreement, each cash collateral agreement securing any Obligation, each depositary bank
acknowledgement relating to any bank account of any Loan Party, and any other agreement pursuant to
which any obligations are subordinated to any of the Obligations (whether pursuant to a
subordination agreement, subordination provisions in any other agreement or instrument or
otherwise). However, as to a Loan Party, the term &#147;Security Document&#148; shall not include any such
document as to which such Loan Party is released from all its obligations thereunder by Agent or
Lenders in accordance with the terms hereof or thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Servicer</U>&#148; shall mean FirstCity Servicing Corporation, having offices at 6400 Imperial
Drive, Waco, Texas 76714-8216, or any replacement servicer designated by Borrower and approved in
writing by Agent, or upon the occurrence and during the continuance of any Event of Default, at the
election of Agent, any replacement servicer designated by Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Servicer Indemnity Agreement</U>&#148; shall mean that certain Servicer Indemnity Agreement
from Servicer in favor of Lenders and Agent dated as of even date herewith, as amended, restated
or otherwise modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Services Agreement</U>&#148; shall mean that certain Services Agreement dated as of August&nbsp;26,
2005 by and among Borrower, the Servicer and Agent, or any replacement to such agreement which is
entered into by Borrower with a replacement servicer and which is approved in writing by Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Servicing Restricted Funds</U>&#148; means funds received by FC Servicing in the ordinary
course of such company&#146;s servicing business for the account of Persons other than FC Servicing,
Borrower or any of its REO Affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Stock</U>&#148; shall mean all shares and other Equity Interests issued by a corporation,
whether voting or non &#151; voting, including but not limited to, common stock, warrants, preferred
stock, convertible debentures, and all agreements, instruments and documents convertible, in whole
or in part, into any one or more or all of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subject Debt Instrument</U>&#148; &#151; Section&nbsp;7.15.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary</U>&#148; of any Person (the &#147;<U>First Person</U>&#148;) shall mean any other Person
more than 50% of the indicia of equity rights (whether capital stock or otherwise) of which is at
the time owned, directly or indirectly by the First Person and/or by one or more of such First
Person&#146;s Subsidiaries. Unless otherwise indicated, references to Subsidiaries shall refer to
Subsidiaries of Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Summary Waterfall Certificate</U>&#148; shall mean a certificate in a form approved by Agent
which sets forth summary information as to all Waterfall Certificates being delivered on or about
the same day as such certificate
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tangible Net Worth</U>&#148;, at any time, shall mean the total of shareholders&#146; equity
(including capital stock (both common and preferred), additional paid &#151; in capital and retained
earnings after deducting treasury stock of a Person), less the sum of the total amount of any
</DIV>

<P align="center" style="font-size: 10pt">- 17 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">intangible Assets, which, for purposes of this definition, shall include, without limitation, general intangibles
and, if applicable, all accounts receivable not incurred in the ordinary course of business from
any Affiliate of such Person or any loans to directors or officers of any Affiliate of such Person,
unamortized deferred charges and good will, all as determined in accordance with GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Escrow Account</U>&#148; shall mean, with respect to each Asset Pool, a non-interest
bearing account established by Borrower with Bank of America, N.A., or another financial
institution reasonably acceptable to Agent, into which Tax Escrow Payments arising from Asset Pool
are to be deposited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Escrow Payments</U>&#148; shall mean all payments made by Obligors (including any REO
Affiliate) specifically for the payment of real estate tax and/or insurance and all Net Insurance
and Condemnation Proceeds received by Borrower which, pursuant to the terms and provisions of the
agreements governing the applicable Collateral Loan, are not available to be applied to the
outstanding principal of such Collateral Loan but, rather, <U>must</U> be used for purposes of
repairing or rebuilding real property relating to such Collateral Loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Taxes</U>&#148; &#151; Section&nbsp;5.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Termination Event</U>&#148; shall mean (i)&nbsp;a Reportable Event described in Section&nbsp;4043 of
ERISA and the regulations issued thereunder (other than a Reportable Event not subject to the
provision for 30 &#151; day notice to the PBGC under such regulations), or (ii)&nbsp;the withdrawal of any
Loan Party or any of its ERISA Affiliates from a Pension Plan during a plan year in which it was a
&#147;substantial employer&#148; as defined in Section&nbsp;4001(a)(2) of ERISA, or (iii)&nbsp;the issuance of a notice
of intent to terminate a Pension Plan or the treatment of a Pension Plan amendment as a termination
under Section&nbsp;4041 of ERISA, or (iv)&nbsp;receipt by any Loan Party or any ERISA Affiliate of notice of
the PBGC&#146;s intention to terminate any Pension Plan or to have a trustee or the PBGC appointed to
administer any Pension Plan or (v)&nbsp;any other event or condition which might constitute grounds
under Section&nbsp;4042 of ERISA for the termination of, or the appointment of a trustee to administer,
any Pension Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Third Party</U>&#148; shall mean any Person who or which is not Borrower, any of its REO
Affiliates, the Servicer or any other Loan Party or an Affiliate of any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total Loan Commitment</U>&#148; shall mean the sum of the Loan Commitments of all of Lenders,
as from time to time reduced pursuant to Section&nbsp;2.6, which as of the date of this Agreement shall
be $50,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total Outstandings</U>&#148; as of any particular date shall mean the aggregate outstanding
principal amount of Loans as of such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transfer</U>&#148; shall mean any sale, conveyance, lease or other disposition (and
&#147;Transferred&#148;, &#147;Transferring&#148; and other variations thereof shall have correlative meanings).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transfer Supplement</U>&#148; &#151; Section&nbsp;12.4(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>UCC</U>&#148; &#151; Section&nbsp;10.30.
</DIV>

<P align="center" style="font-size: 10pt">- 18 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>United States</U>&#148;, &#147;<U>US</U>&#148; or &#147;<U>U.S.</U>&#148; shall mean the United States of
America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Unutilized Loan Commitment</U>&#148; shall mean, at any time, as to each Lender, the amount by
which the Loan Commitment of such Lender at such time exceeds the aggregate outstanding principal
amount at such time of Loans made by such Lender.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Upfront Fee</U>&#148; &#151; Section&nbsp;4.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Utilization Fee</U>&#148; &#151; Section&nbsp;4.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Waterfall Certificate</U>&#148; in respect of any Payment Date shall mean a completed
certificate in a form approved by Agent which sets forth information with respect to Net
Collections of an Asset Pool during the preceding Proceeds Period to which such certificate is
applicable and such other information as Agent shall require.
</DIV>


<P align="center" style="font-size: 10pt">- 19 -
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
