FOURTH AMENDMENT TO SERVICE EXPENSE REIMBURSEMENT AGREEMENT (LOUISIANA)
Exhibit
10.19.2
FOURTH
AMENDMENT TO
(LOUISIANA)
This
Amendment (“Amendment”) is attached to and by reference made a part of the
Service Expense Reimbursement Agreement between the insurance companies named
below (collectively, “Company”) and CAI CREDIT INSURANCE AGENCY,
INC. (“Customer”), dated July 1, 1998 (the “Agreement”). This
Amendment is effective May 1, 2009 (“Amendment Effective Date”).
NOW,
THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS:
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1.
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Paragraph
(F) shall be added to Section 5 of the Agreement immediately following
paragraph (E), as follows:
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(F)
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Xxxx
Company monthly for the amount of premiums that are earned but not
collected due to Customer’s charge-off on its books (“Premium
Charge-offs”), during such previous month, of the relevant consumers’
accounts under which the premium was financed. Company shall be
obligated to pay Customer in monthly increments for such charge-offs on a
quarterly basis at the time the Contingent Compensation Credit is
calculated, up to the amount of Contingent Compensation Credit available
for payment in that period; any Premium Charge-offs during a quarter which
are billed to but not paid by Company in their entirety for any month due
to the fact that the total Premium Charge-offs for the quarter exceed
Contingent Compensation Credit due Customer for the relevant quarter shall
not be paid during such quarter, but such monthly increment shall be
eligible for payment in a subsequent quarter in which a Contingent
Compensation Credit is due Customer. For the avoidance of
doubt, Company will deduct the Premium Charge-offs billed for each month
during the quarter, as reflected in paragraph (h) of Paragraph A.(1) of
the Group Experience Rating/Contingent Compensation Addendum, from the
calculated premium, as determined in paragraphs (a) through (c) of
Paragraph A.(1) of the Group Experience Rating/Contingent Compensation
Addendum, but if the Contingent Compensation Credit due Customer for any
quarter is insufficient to cover the Premium Charge-offs billed by
Customer for any month during that quarter, the total Premium Charge-offs
billed for that month will be carried over and paid in monthly increments
from available Contingent Compensation Credit in future
quarters. Upon termination of this Agreement, any billed
Premium Charge-offs which remain unpaid by Company shall be waived by
Customer. It is acknowledged and agreed by the parties that
Premium Charge-offs which have accumulated on Customer’s books as of the
Amendment Effective Date may be billed by Customer commencing with the
month of May, 2009. Further, Company’s obligation for
payment of Premium Charge-offs billed by Customer shall be limited by any
applicable compensation caps, and Company shall have no obligation to pay
any excess over applicable compensation
caps.
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2.
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Paragraph
(h) shall be added to Paragraph (1) of Section A of the Group Experience
Rating/Contingent Compensation Addendum, as
follows:
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(h)
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The
cumulative total of all Premium Charge-offs billed Company by Customer
pursuant to Paragraph (F) of Section 5 of the
Agreement.
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3.
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Schedule
C, as referenced in Paragraph 6. of the First Amendment to Service Expense
Reimbursement Agreement (Louisiana) shall be deleted in its entirety and
replaced with Schedule C attached hereto and made a part hereof, into
which Line G., “Premium Charge-Off”, has been
incorporated.
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1
IN WITNESS
WHEREOF, the parties have executed this Fourth Amendment by their duly
authorized officers and representatives on the date(s) indicated
below.
| CAI CREDIT INSURANCE AGENCY, INC. | |||
| (“Customer”) | |||
| By: |
/s/ Xxxxxxx X. Xxxxx
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| Print Name: |
Xxxxxxx X. Xxxxx
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| Title: |
Chief Executive Officer
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| Date: |
August 8, 2009
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| AMERICAN BANKERS LIFE ASSURANCE COMPANY OF FLORIDA | |||
| (“Company”) | |||
| By: |
/s/ Xxxx Xxxxxx
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| Print Name: |
Xxxx Xxxxxx
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| Title: |
Vice-President
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| Date: |
August 13, 2009
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| AMERICAN BANKERS INSURANCE COMPANY OF FLORIDA | |||
| (“Company”) | |||
| By: |
/s/ Xxxx Xxxxxx
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| Print Name: |
Xxxx Xxxxxx
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| Title: |
Vice-President
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| Date: |
August 13, 2009
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| AMERICAN RELIABLE INSURANCE COMPANY | |||
| (“Company”) | |||
| By: |
/s/ Xxxx Xxxxxx
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| Print Name: |
Xxxx Xxxxxx
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| Title: |
Vice-President
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| Date: |
August 13, 2009
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