EXHIBIT 10.42
[AutoBond Acceptance Corporation Letterhead]
October 28 , 1998
Xx. Xxxxxx X. Xxxxx
Dynex Capital, Inc.
00000 Xxxxxxx Xxxx, Xxxxx Xxxxx
Xxxx Xxxxx, XX 00000
Dear Xxx:
Pursuant to our discussions, outlined below are adjusted terms relating to the
warehouse financing agreements and stock option agreement between AutoBond
Acceptance Corporation ("AutoBond") and Dynex Capital, Inc. ("Dynex") or Dynex
Holding, Inc. ("DHI"). All existing agreements between AutoBond and Dynex or
DHI remain in force with the exception of the modifications in this letter.
1. The "Expiration Date" as defined in the Stock Option Agreement is hereby
changed to July 31, 1999, such that it corresponds to the "Commitment
Termination Date" as amended in the October 20, 1998 letter modifying the Credit
Agreement.
2. Dynex hereby grants AutoBond the option through July 31, 1999 to change
the "Commitment Termination Date" as defined and applicable in the June 9, 1998
Credit Agreement and as amended in the October 20, 1998 agreement modification
letter. This option provides that AutoBond can change the definition of
"Commitment Termination Date" to mean (a) November 30, 1999, upon 90 days' prior
written notice from the Lender, or (b) if such notice is not given, November 30,
2000.
3. Subject to AutoBond exercising its option described in item 2 above to
extend the "Commitment Termination Date", AutoBond hereby grants DHI an
extension of the "Expiration Date" as defined in the Stock Option Agreement to
correspond to the "Commitment Termination Date."
Please acknowledge your agreement to these modified terms by signing below.
Sincerely,
/s/ Xxxxxx Xxxx
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Xxxxxx Xxxx /s/ Xxxxxx Xxxx
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Chief Operating Officer Xxxxxx Xxxx
AutoBond Acceptance Corporation
/s/ Xxxx X. Xxxxxxxx
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Xxxx X. Xxxxxxxx
/s/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
AGREED AND ACKNOWLEDGED
/s/ Xxxxxx X. Xxxxx /s/ Xxxxxx X. Xxxxx
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Xxxxxx X. Xxxxx, President Xxxxxx X. Xxxxx
Dynex Capital, Inc. Dynex Holding, Inc.
