This EMPLOYMENT AGREEMENT (“Agreement”), dated as of December 15, 2009, to be effective as of
January 11, 2010, by and between Franklin Credit Management Corporation (“Employer” or “FCMC” and with
its parent and affiliates, the “Company”) and Jimmy Yan (“Employee”).
WHEREAS, Employer is a corporation organized under the laws of the State of Delaware;
WHEREAS, Employer desires to employ Employee, and Employee desires to accept such employment on the
terms and conditions hereinafter set forth.
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and agreements hereinafter set forth,
and for other good and valuable consideration, the receipt and sufficiency of which the parties hereby
acknowledge, the parties agree as follows:
1. Definitions . For the purposes of this Agreement, the following capitalized terms shall have the following
a. Board of Directors. shall mean the Board of Directors of FCMC or any committee of the Board of
Directors that is then charged with making compensation decisions with respect to the Employee.
b. Competitor. shall mean any person or entity which: (1) is engaged or planning to be engaged in the
servicing and resolution of performing, reperforming and nonperforming residential mortgage loans and related
assets or in the due diligence, analysis, pricing and acquisition of loan portfolios for third parties; (2) is engaged in
any other business that constitutes at least 10% of the revenues of Employer, Franklin Credit Holding Corporation
(“Parent”), or any of its direct or indirect subsidiaries; or (3) is engaged in any other business which the Employer,
Parent or any of its direct or indirect subsidiaries have, as of the termination of Employee’s employment or
expiration of this Agreement, reasonably certain plans to be substantially engaged within twelve months of
Employee’s termination (the businesses described in clauses (1), (2) and (3), and any of them individually, being the