EXHIBIT (c)(11)
FIRST AMENDMENT TO
AGREEMENT FOR SATISFACTION OF JUDGMENT
The First Amendment to Agreement for Satisfaction of Judgment is
entered into as of this 31st day of January, 1997 by and among HOMEOWNERS GROUP,
INC. ("HOMG"), HOMEOWNERS MARKETING SERVICES, INC. ("HMS") and THE CROSS COUNTRY
GROUP, L.L.C. ("CC").
WHEREAS, on October 31, 1996, CC, HOMG and HMS entered into an
Agreement for Satisfaction of Judgment (the "Agreement") for the satisfaction
and release of that certain judgment entered on December 20, 1995 in favor of
Acceleration National Insurance Company against HMS for the sum of $5,156,022
plus interest and costs;
WHEREAS, CC, HOMG and HMS desire to amend the Agreement.
NOW, THEREFORE, the parties hereto agree as follows:
1. Section 2 of the Agreement is hereby deleted and replaced in its
entirety with the following:
CASH PAYMENT. CC, as assignee of the rights of ANIC, agrees to accept
the sum of $2,698,214.80 (the "Judgment Amount") plus interest at 10% per annum
since September 5, 1996, as provided in Section 8, plus interest at 10% per
annum on $4,100,000 from September 1, through September 4, 1996 (collectively,
the "Payoff Amount") in full and complete satisfaction of the Judgment on the
condition such payment is received by CC no later than the closing of the Merger
Agreement or July 1, 1997, whichever occurs first.
2. Section 5 of the Agreement is hereby deleted and replaced in its
entirety with the following:
FORBEARANCE OF COLLECTION EFFORTS. Unless sooner terminated pursuant to
the provisions of Section 7 of this Agreement, CC, as the assignee of the rights
of ANIC, will not undertake prior to July 1, 1997, any act to execute on the
Judgment, including the issuance or service of writs of attachment, garnishment
or execution from any court, or to obtain discovery in aid of execution from any
third party.
3. Section 7 of the Agreement is hereby deleted and replaced in its
entirety with the following:
CONTINGENCIES AND TERMINATION. The obligations of CC, as the assignee
of ANIC, to accept the Payoff Amount in full satisfaction of the Judgment and to
forbear from any and all efforts to enforce the Judgment are contingent upon the
closing of the Merger Agreement. Sections 2 and 5 of this Agreement shall become
null, void, and of no further force or effect at the sole option of CC upon the
occurrence of any one of the following events:
(a) the Merger Agreement has not been closed on or before
July 1, 1997;
(b) HOMG advises CC or either HOMG or CC publicly
announces that the Merger Agreement has been
abandoned. HOMG further agrees to directly notify CC
within twenty-four hours should the proposed Merger
Agreement be abandoned by HOMG for any reason;
(c) the stockholders of HOMG fail to approve and to
authorize the Merger Agreement;
(d) holders of more than 10% of HOMG's stock shall have
claimed or perfected appraisal rights; or
(e) HOMG or CC fails to obtain the approval of any
government regulatory body or agency from which
approval of the Merger Agreement is required prior to
closing of the Merger Agreement.
If any of the foregoing events occur and CC elects to terminate its
agreements and commitments set forth in Section 2 and 5 of this Agreement, CC
shall promptly notify HOMG and HMS in writing of its decision to do so.
4. Section 10 of the Agreement is hereby deleted and replaced in its
entirety with the following:
MUTUAL RELEASE. At the closing of the Merger Agreement and upon receipt
by CC of either the Payoff Amount (if such payment occurs on or before July 1,
1997) or the Judgment, as reduced by the Refund Claim (if such payment occurs
after July 1, 1997), CC, HOMG and HMS will execute and exchange a mutual release
in the form attached hereto as Exhibit 1. Within 30 days after receiving such
payment, CC shall file a Satisfaction of Judgment for each action pending in :
(i) the Circuit Court of Broward County, Florida, styled Homeowners Marketing
Services, Inc. v. Acceleration National Insurance Company. Case No. 96-001110
CACA (12) (the "Domestication Action"); and (ii) the Court of Common Pleas of
Franklin County, Ohio,
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styled Acceleration National Insurance Company v. Homeowners Marketing Services,
Inc., et al., Consolidated Case Nos. 91CVH11-9404, 94CVH05-3083 (the "Ohio
Action"), and be responsible for dismissing with prejudice each of the following
actions: (i) the Ohio Action; (ii) the Domestication Action; (iii) that certain
action pending in the Circuit Court of Broward County, Florida, styled
Acceleration National Insurance Company v. Homeowners Marketing Services, Inc.,
et al., Case. No. 96-001152 (18); and (iv) that certain action pending in the
Circuit Court of Dade County, Florida, styled Acceleration National Insurance
Company v. Homeowners Marketing Services, Inc., Case No. 96-00850 (CA) 23.
5. COUNTERPARTS. This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but which together
shall constitute one and same instrument.
6. GOVERNING LAW. This Amendment shall be governed by and construed in
accordance with the internal laws of the Commonwealth of Massachusetts without
giving effect to principles of conflicts of laws. The parties further agree that
venue for any action shall be in the Suffolk County Superior court, Commonwealth
of Massachusetts.
7. NO OTHER MODIFICATIONS. Except as modified by this Agreement, the
terms of the Agreement shall remain unmodified and in full force and effect.
IN WITNESS WHEREOF, each party has executed this Amendment by its duly
authorized representative on the date set forth below.
HOMEOWNERS GROUP, INC.
Date: 1/31/97 By:/s/ C. Xxxxxxx Xxxxxx
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Name:
Title:
HOMEOWNERS MARKETING
SERVICES, INC.
Date: 1/31/97 By:/s/ C. Xxxxxxx Xxxxxx
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Name:
Title:
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THE CROSS COUNTRY GROUP,
L.L.C.
Date: 1/31/97 By:/s/ Xxxxxx X. Xxxx
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Name:
Title:
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