Re: Termination of Amended and Restated Nonexclusive Servicing and Indemnification Agreement Dated June 14, 2002
Exhibit 10.49
June 15, 2002
County Bank
0000 Xxxxxxx Xxx
Xxxxxxxx Xxxxx, Xxxxxxxx 00000-0000
0000 Xxxxxxx Xxx
Xxxxxxxx Xxxxx, Xxxxxxxx 00000-0000
Attention: Xx. Xxxxx X. Xxxxxx, Vice President
Re:
Termination of Amended and Restated Nonexclusive Servicing and Indemnification Agreement Dated June 14, 2002
Gentlemen:
Reference is hereby made to the Amended and Restated Nonexclusive Servicing and
Indemnification Agreement between us dated June 14, 2002 (the “Agreement”). Unless the context
otherwise requires, capitalized terms used herein have the meanings ascribed to them in the
Agreement.
As a result of impending changes to the business model under which Lender requires Servicer to
operate, both parties desire to terminate the Agreement, subject to the following terms and
conditions:
1. Servicer will cease origination of Loans in accordance with a schedule to be determined in
consultation with Lender and will completely cease origination of new Loans not later than June 30,
2005. Servicer will continue to service existing Loans and related refinances until the respective
borrowers have either repaid their loans or are no longer eligible to refinance such loans.
2. On July 27, 2005, Lender will sell, assign and transfer to Servicer, without recourse all
of Lender’s right, title and interest in and to all then outstanding delinquent or defaulted Loans
for which the Bank has made recovery through charges against the deferred portion of the earned and
accrued [**] Bonus pursuant to Section 2.04 of the
Agreement for the total purchase price of [**]
($[**])
Dollar.
3. On July 27, 2005, Lender will sell, assign and transfer to Servicer, without recourse, all
of Lender’s right, title and interest in and to all then outstanding current Loans for the total
purchase price of the then outstanding principal balance plus 8.8% of the Finance Charge due.
4. Notwithstanding the provisions of paragraphs 2 and 3 above, Lender will periodically sell,
assign and transfer to Servicer, without recourse, and Servicer will be obligated to buy, all of
Lender’s right, title and interest in and to all then outstanding delinquent or defaulted loans for
which the Bank has not made recovery through charges against the deferred
** Confidential material which has been omitted and filed separately with the Securities and Exchange Commission.
County Bank
June 15, 2005
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June 15, 2005
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portion of the earned and accrued [**] Bonus as of July 27, 2005 for the purchase price per
Loan of the outstanding principal plus the related Finance Charge.
5. The following matters relating to Servicer’s collection of Loans on and after the date
hereof shall be subject to Lender’s approval, which approval shall in each case not be unreasonably
conditioned, withheld or delayed: (a) the form and terms of any third-party servicing agreement to
be utilized by Servicer; and (b) any sale or assignment by Servicer to a third party of any
interest in the Loans, including the form and terms of an agreement related thereto. In connection
with and following any such sale, Servicer shall (and shall cause its Services and assignees to)
comply with Lender’s policies presently in effect regarding the collection of Loans.
6. Except as otherwise provided in paragraphs 4 and 7 hereof, the parties will settle and pay
to each other all amounts on deposit, due or otherwise owing each other under the Agreement not
later than September 26, 2005.
7. Notwithstanding paragraph 6, pursuant to and under the terms of Section 12 of the
Litigation Fund Agreement Servicer’s obligation under the Litigation Funds Agreement shall survive
termination of the Agreement.
If after reading the foregoing, you find that this letter correctly sets forth our agreement
as written, please so indicate by signing a copy in the space provided below and returning it to me
by facsimile.
Very truly yours, DOLLAR FINANCIAL GROUP, INC. |
||||
By: | /s/ Xxxxxxx Xxxxxxxxx | |||
Xxxxxxx Xxxxxxxxx | ||||
Its: Executive Vice President | ||||
Accepted and agreed to this
15th day of June, 2005:
15th day of June, 2005:
COUNTY BANK |
||||||
By: | /s/ Xxxxx X. Xxxxxx | |||||
Xxxxx X. Xxxxxx | ||||||
Its: Vice President | ||||||
** Confidential material which has been omitted and filed separately with the Securities and Exchange Commission.