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Exhibit 10.1
 

 
SECOND AMENDMENT TO AMENDED AND RESTATED
SUBACCOUNTING AGREEMENT

THIS SECOND AMENDMENT TO THE AMENDED AND RESTATED SUBACCOUNTING AGREEMENT (this
"Amendment") is made and entered into as of this 7th day of May, 2010 (the
“Effective Date”), by and between, UNITED WESTERN BANK®, a federal savings bank
(“Bank”), EQUITY TRUST COMPANY, a South Dakota trust company (“ETC”), EQUITY
ADMINISTRATIVE SERVICES, INC., an Ohio corporation (“EAS”), and STERLING
ADMINISTRATIVE SERVICES, LLC, a Texas limited liability company (“SAS” and,
collectively with EAS, the “Companies”), (the Companies, ETC and Bank referred
to herein each as a “Party” and collectively the “Parties”).  Capitalized terms
used and not defined in this Amendment shall have the meanings ascribed to them
in the Subaccounting Agreement (as defined below).
 
WITNESSETH

WHEREAS, Bank, ETC and the Companies are parties to that certain AMENDED AND
RESTATED SUBACCOUNTING AGREEMENT dated June 27, 2009, as amended by that First
Amendment to Amended and Restated Subaccounting Agreement dated February 24,
2010 (the “Subaccounting Agreement”), whereby, among other things, EAS and the
Companies maintain Bank Accounts at Bank for the benefit of Custodial Account
Holders and the Companies act as agent for Bank to provide Custodial Account
Holder record keeping and certain other services with respect to the account
activity by Custodial Accounts and balances maintained in the Bank Accounts by
the individual Custodial Accounts.

WHEREAS, Bank has proposed that ETC and the Companies deposit $350 million of
funds in Custodial Accounts currently deposited in the Bank Accounts (the “Third
Party Bank Deposit Funds”) with a Third Party Bank in accordance with the second
paragraph of Section 10 of the Subaccounting Agreement (such paragraph, the
“Third Party Bank Deposit Provision”).

WHEREAS, in connection with such deposit of the Third Party Bank Deposit Funds
with such Third Party Bank, the Parties desire to further amend the
Subaccounting Agreement as described herein.

NOW, THEREFORE, in exchange for the payment by Bank to ETC of $1,200,000 and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree to amend the Subaccounting
Agreement in the following respects:

1. The second-to-last sentence of Section 1 of the Subaccounting Agreement shall
be deleted in its entirety and replaced with the following:

“The aggregate balances in the Bank Accounts of the Companies, ETC and their
affiliates shall not exceed $700 million (the “Cap”) without the prior written
approval of Bank.”

The Third Party Bank Deposit Funds as deposited with the Third Party Bank shall
not apply against the Cap, notwithstanding anything in the Subaccounting
Agreement to the

 
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contrary.  The rights and obligations of the Parties under the third-to-last and
second-to-last sentences of the Third Party Bank Deposit Provision shall not
apply in any way to the Third Party Bank Deposit Funds as deposited with the
Third Party Bank.

2. The following paragraph shall be added as a third paragraph to Section 10 of
the Subaccounting Agreement:

“Notwithstanding the foregoing, ETC and the Companies shall have the unilateral
right to participate out up to $150 million of funds deposited in the Bank
Accounts without Bank’s consent to any depository institution that ETC may
select with or without Bank’s approval (so long as such depository institution
otherwise meets the definition of Third Party Bank), provided that the
participation out of any such funds pursuant to this paragraph shall not be
subject to the rights and obligations of the Parties under the third-to-last and
second-to-last sentences of the immediately preceding paragraph.  Any funds
participated out pursuant to this paragraph shall not apply against the Cap,
notwithstanding anything herein to the contrary.  Notwithstanding anything to
the contrary herein, ETC and the Companies may not exercise their unilateral
right to participate funds as discussed in this paragraph to the extent that
such participation would reduce the cash balances of Custodial Deposits below an
amount equal to the Final Deposit Amount (as defined by and finally determined
in accordance with the Purchase Agreement). In addition to the foregoing, the
Parties shall use good faith efforts to negotiate from time to time in an
attempt to agree on further participation to one or more Third Party Banks of
funds deposited in the Bank Accounts.”

The Parties agree that all other terms or conditions of the Subaccounting
Agreement shall remain in full force and effect and the Parties reaffirm the
same.  This Amendment shall be binding upon and inure to the benefit of and be
enforceable by the Parties and their respective successors, assigns (including
any direct or indirect successor by merger or consolidation) and administrators.

[Signature page follows.]

 
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IN WITNESS WHEREOF, the Parties hereto have entered into this Amendment as of
the date first written above.

 
EQUITY ADMINISTRATIVE SERVICES, INC.
     
By:        /s/ Michael Dea                                                      
 
Name:   Michael Dea
 
Title:     CFO
     
STERLING ADMINISTRATIVE SERVICES, LLC
     
By:        /s/ Michael Dea                                                      
 
Name:   Michael Dea
 
Title:     CFO
     
EQUITY TRUST COMPANY
     
By:        /s/ Michael Dea                                                      
 
Name:   Michael Dea
 
Title:     CFO
     
UNITED WESTERN BANK
     
By:        /s/ James R.
Peoples                                                                
 
Name:   James R. Peoples
 
Title:     Chairman, President and CEO
   

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