Document:

Consent and Amendment No.4 to the Credit Agreement dated as of May 7, 2007

 Exhibit 10.3 
 CONSENT AND AMENDMENT NO. 4 
 Dated as of May 7, 2007 
 to 
 CREDIT AGREEMENT 
 Dated as of June 7, 2005 
 THIS CONSENT
AND AMENDMENT NO. 4 (“Amendment”) is made as of May 7, 2007 by and among Encore Capital Group, Inc. (the “Borrower”), the financial institutions listed on the signature pages hereof (the “Lenders”)
and JPMorgan Chase Bank, National Association, as Administrative Agent (the “Agent”), under that certain Credit Agreement dated as of June 7, 2005 by and among the Borrower, the Lenders and the Agent (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement. 
 WHEREAS, the Borrower has informed the Lenders of its intention to terminate the CFSC Transaction, repay in full all of the indebtedness and other
obligations thereunder and acquire the residual interests of the Receivables Portfolios thereunder (the “CFSC Acquisition”); 
 WHEREAS, the Borrower has requested that the Lenders and the Agent agree to certain amendments to the Credit Agreement; 
 WHEREAS,
the Lenders party hereto and the Agent have agreed to such amendments on the terms and conditions set forth herein; 
 NOW, THEREFORE, in
consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Lenders party hereto and the Agent
have agreed to enter into this Amendment. 
 1. Consent. Subject to the terms hereof and the satisfaction of the conditions precedent
set forth in Section 3 below, the Lenders party hereto consent to the CFSC Acquisition to the extent such acquisition may otherwise be restricted by Sections 6.10 and 6.20 of the Credit Agreement. 
 2. Amendment to Credit Agreement. Effective as of the date of satisfaction of the conditions precedent set forth in Section 3 below, the
Credit Agreement is amended as follows: 
 The Borrower’s accounting and tax advisors have indicated that the accounting
effects arising from the CFSC Acquisition shall be considered either an interest expense 

 
or another tax deductible expense. In the event that such effect is an interest expense, the Maximum Deduction shall be excluded from Consolidated Interest
Expense for purposes of clause (ii) of Section 6.22. In the event that such effect is another tax deductible expense, the Maximum Deduction shall be added back to Consolidated EBIT and Consolidated EBITDA for purposes of Sections 6.22 and
6.21.1, respectively. As used herein, “Maximum Deduction” means the amount (not to exceed $11,000,000) of accounting effects arising from (1) the purchase price of the CFSC Acquisition minus (2) the amount of “accrued profit
sharing” (as described in the most recent financial statements of the Borrower) in respect of the residual interests of the Receivables Portfolios acquired pursuant to the CFSC Acquisition. 
 3. Conditions of Effectiveness. The effectiveness of this Amendment is subject to the conditions precedent that (a) the Agent shall have
received (i) counterparts of this Amendment duly executed by the Borrower, the Required Lenders and the Agent and the Consent and Reaffirmation attached hereto duly executed by the Guarantors and (ii) such other instruments and documents
as are reasonably requested by the Agent and (b) the Borrower shall have paid, to the extent invoiced, all expenses of the Agent (including attorneys’ fees and expenses) in connection with this Amendment and the other Loan Documents.

 4. Representations and Warranties of the Borrower. The Borrower hereby represents and warrants as follows: 
 (a) This Amendment and the Credit Agreement as amended hereby constitute legal, valid and binding obligations of the Borrower and are
enforceable against the Borrower in accordance with their terms. 
 (b) As of the date hereof and giving effect to the terms
of this Amendment, (i) there exists no Default or Unmatured Default and (ii) the representations and warranties contained in Article V of the Credit Agreement, as amended hereby, are true and correct, except for representations and
warranties made with reference solely to an earlier date. 
 5. Covenants of the Borrower. The Borrower hereby covenants that, within
45 days of the date hereof, it will, and will cause MRC Receivables Corporation to, (i) enter into and deliver to the Administrative Agent: (x) an annex to the Guaranty Agreement, (y) an annex to the Pledge and Security Agreement
along with, and (z) such other Collateral Documents as are necessary for the Borrower and MRC Receivables Corporation to comply with Section 6.26 of the Credit Agreement, (ii) cause the Applicable Pledge Percentage of the
issued and outstanding equity interests of MRC Receivables Corporation to be delivered to the Administrative Agent (together with delivery of its stock certificate(s) and undated stock powers signed in blank), and (iii) deliver such other
documentation as the Administrative Agent may reasonably request in connection with the foregoing, including, without limitation, certified resolutions and other authority documents of MRC Receivables Corporation and, to the extent requested by the
Administrative Agent, favorable opinions of counsel to MRC Receivables Corporation (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above), all in form, content and
scope reasonably satisfactory to the Administrative Agent. 
  

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 6. Reference to and Effect on the Credit Agreement. 
 (a) Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean
and be a reference to the Credit Agreement as amended hereby. 
 (b) Except as specifically amended above, the Credit
Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed. 
 (c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent
or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith. 
 7. Governing Law. This Amendment shall be governed by and construed in accordance with the internal laws of the State of New York, but giving
effect to federal laws applicable to national banks. 
 8. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment for any other purpose. 
 9. Counterparts. This
Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 
 [Signature Pages Follow] 
  

 3 

 IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

  

			
	ENCORE CAPITAL GROUP, INC.,
	    as the Borrower
		
	By:	 	/s/  J. Brandon Black
	Name:  J. Brandon Black
	Title:    President & CEO

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	JPMORGAN CHASE BANK,
	NATIONAL ASSOCIATION,
	    as Administrative Agent, as LC Issuer and as a Lender
		
	By:	 	/s/   Steven J. Krakoski
	Name:   Steven J. Krakoski
	 Title:     Senior Vice President
  

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	CALIFORNIA BANK & TRUST, as a Lender
		
	By:	 	/s/  Michael Powell
	Name:  Michael Powell
	Title:    Senior Vice President

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	BANK OF AMERICA, N.A., as a Lender
		
	By:	 	/s/  Gordon W. Wiens
	Name:  Gordon W. Wiens
	Title:    Senior Vice President

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	BANK OF SCOTLAND, as a Lender
		
	By:	 	/s/   Karen Weich
	Name:  Karen Weich
	Title:    Vice President

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	FIRST BANK, as a Lender
		
	By:	 	/s/  Gil Hector
	Name:  Gil Hector
	Title:    Vice President

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	MANUFACTURERS BANK, as a Lender
		
	By:	 	/s/  Maureen Kelly
	Name:  Maureen Kelly
	Title:    Vice President

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	BANK LEUMI USA, as a Lender
		
	By:	 	/s/  Jacques V. Delvoye
	Name:  Jacques V. Delvoye
	Title:    First Vice President

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	GUARANTY BANK, as a Lender
		
	By:	 	/s/  Michael Ansolabehere
	Name:  Michael Ansolabehere
	Title:    Senior Vice President

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

			
	CITIBANK (WEST) F.S.B., as a Lender
		
	By:	 	  
	Name:  
	Title:    

  
 Signature Page to
Consent and Amendment No. 4 
 Encore Capital Group, Inc. 
 Credit Agreement dated as of June 7, 2005 

 CONSENT AND REAFFIRMATION 
 Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Consent and Amendment No. 4 to the Credit Agreement dated as of June 7, 2005 (as the same may be amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”) by and among Encore Capital Group, Inc. (the “Borrower”), the financial institutions from time to time party thereto (the “Lenders”)
and JPMorgan Chase Bank, National Association, in its individual capacity as a Lender and in its capacity as contractual representative (the “Agent”), which Consent and Amendment No. 4 is dated as of May 7, 2007 (the
“Amendment”). Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement. Without in any way establishing a course of dealing by the Agent or any
Lender, each of the undersigned consents to the Amendment and reaffirms the terms and conditions of the Guaranty Agreement, the Pledge and Security Agreement and any other Loan Document executed by it and acknowledges and agrees that such agreement
and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed. All references to the Credit Agreement contained in the
above-referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, modified or restated. 
 Dated: May 7, 2007 
 [Signature Page Follows] 
  

									
	 MIDLAND CREDIT MANAGEMENT, INC.,
 as a
Guarantor
	 		 	 MIDLAND FUNDING NCC-2 CORPORATION,
 as a
Guarantor

					
	By:	 	/s/ J. Brandon Black	 		 	By:	 	/s/ J. Brandon Black
	Name:	 	J. Brandon Black	 		 	Name:	 	J. Brandon Black
	Title:	 	President & CEO	 		 	Title:	 	President
			
	 ACG HOLDING, INC.,
 as a
Guarantor
	 		 	 MIDLAND PORTFOLIO SERVICES, INC.,
 as a
Guarantor

					
	By:	 	/s/ J. Brandon Black	 		 	By:	 	/s/ J. Brandon Black
	Name:	 	J. Brandon Black	 		 	Name:	 	J. Brandon Black
	Title:	 	President	 		 	Title:	 	President
			
	 ACG MANAGEMENT LLC,
 as a
Guarantor
	 		 	 MIDLAND FUNDING LLC,
 as a
Guarantor

					
	By:	 	ACG HOLDING, INC., as Manager	 		 	By:	 	/s/ J. Brandon Black
	  
 By:
	 	  
 /s/ J. Brandon Black
	 		 	 Name:
 Title:
	 	 J. Brandon Black
 President

	Name:	 	J. Brandon Black	 		 		 	
	Title:	 	President	 		 		 	
			
	 MIDLAND INTERNATIONAL LLC,
 as a
Guarantor
	 		 	 ASCENSION CAPITAL GROUP, LP,
 as a
Guarantor

					
	By:	 	MIDLAND CREDIT MANAGEMENT, INC., its Sole Member	 		 	By:	 	ACG HOLDING, INC., its General Partner
					
	By:	 	/s/ J. Brandon Black	 		 	By:	 	/s/ J. Brandon Black
	Name:	 	J. Brandon Black	 		 	Name:	 	J. Brandon Black
	Title:	 	President & CEO	 		 	Title:	 	PresidentDirector Compensation Plan

 Exhibit 10.2 
 INTERNATIONAL COAL GROUP, INC. 
 DIRECTOR COMPENSATION PLAN 
 (as amended May 2007) 
  

	1.	Purpose. This International Coal Group, Inc. Director Compensation Plan (the “Plan”) is established to allow the non-employee directors of International Coal Group,
Inc. (the “Company”) to participate in the ownership of shares of the Company’s common stock (“Common Stock”). 

  

	2.	Administration. 

  

	 	(a)	The Plan shall be administered by the Compensation Committee of the Board of Directors of the Company (the “Committee”), which shall have full power and authority, subject
to the provisions of the Plan, to supervise administration of the Plan and to interpret the provisions of the Plan and to authorize and supervise any issuance or payment of Common Stock hereunder. Any decision by the Committee shall be final and
binding on all parties. No member of the Committee shall be liable for any determination made, or any decision or action taken with respect to the Plan or any issuance of Common Stock under the Plan. The Committee may delegate any of its
responsibilities to one or more of its affiliates and agents, including employees of the Company or one or more of the Company’s affiliates and subsidiaries, and may retain advisors to provide advice to the Committee. No Participant in the Plan
shall participate in the making of any decision with respect to any question relating to Common Stock issued under the Plan exclusively to that Participant. 

  

	 	(b)	The Committee shall be vested with full authority to make such rules and regulations as it deems necessary to administer the Plan and to interpret and administer the provisions of
the Plan in a uniform manner. Any determination, decision or action of the Committee in connection with the construction, interpretation, administration or application of the Plan shall be final, conclusive and binding on all parties.

  

	 	(c)	The cost of issuing Common Stock pursuant to the Plan and the expenses of administering the Plan shall be borne by the Company. 

  

	3.	Eligibility. Shares of Common Stock shall be issued to each member of the Board of Directors of the Company (the “Board”) who is not an employee of the Company if
such member of the Board so elects in accordance with Section 5, provided that shares of the Company’s Common Stock remain available for issuance hereunder in accordance with Section 4. Each non-employee director of the Company shall
be referred to herein as a “Participant.” 

  

	4.	 Shares Subject to the Plan. The shares subject to the Plan shall be authorized but unissued or reacquired shares of the Company’s Common Stock. Subject
to adjustment in accordance with Section 8 of the Plan, the maximum number of 

	 	 
shares of Common Stock which may be issued under the Plan shall be 1,000,000 and the adoption of the Plan by the Board shall constitute a reservation of
1,000,000 authorized but unissued, or reacquired, shares of Common Stock for issuance under the Plan. 

  

	5.	Director Compensation Election. 

  

	 	(a)	Each Participant may elect to have all or any portion of his or her director retainer fee (not including committee fees or other compensation) (the “Retainer”) payable in
cash or Common Stock in accordance with this Plan. 

  

	 	(b)	An election to receive payment of the Retainer in the form of Common Stock of the Company pursuant Section 5(a) above must be made in writing and delivered to the Company prior
to the start of the calendar year in which the Retainer would otherwise be paid and such election will be irrevocable for the affected calendar year (the “Affected Year”). To participate in the Plan during the calendar year in which the
Plan becomes effective, the Participant must make an election pursuant to Section 5(a) within 30 days after the Board approves the Plan, such election may apply only with respect to compensation paid for services performed after the making of
the election, and such election will be irrevocable for the remainder of the Affected Year. To participate in the Plan during the first calendar year in which a non-employee director becomes eligible to participate in the Plan, the new non-employee
director must make an election pursuant to Section 5(a) within 30 days after the date he or she becomes eligible, such election may apply only with respect to compensation paid for services performed after the making of the election, and such
election will be irrevocable for the remainder of the Affected Year. Each election shall remain in effect until revoked in writing, and any such revocation shall become effective no earlier than the first day of the first calendar year commencing
after such revocation is received by the Company. If a non-employee director does not file an election form by the specified date, he or she will be deemed to have elected to receive all of the Retainer in cash. 

  

	 	(c)	If a Participant elects to receive Common Stock in payment of all or part of his or her Retainer, the number of shares of Common Stock to be issued shall equal the cash amount that
would have been paid divided by the Fair Market Value of one share of Common Stock on the date on which such cash amount would have been paid. 

  

	6.	Definitions, Etc. 

  

	 	(a)	 For purposes of this Plan, the Fair Market Value of the Common Stock on any date means (i) the closing price per share of Common Stock as reported on the
principal exchange on which shares of Common Stock are 

  

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then trading, if any, or, if applicable, the New York Stock Exchange, or if there are no sales on such day, on the next trading day during which a sale
occurs, or (ii) if clause (i) does not apply, the fair market value of a share of Common Stock as determined by the Board. To the extent that the application of any formula described in this Plan does not result in a whole number of shares
of Common Stock, the result shall be rounded upwards to the next whole number such that no fractional shares of Common Stock shall be issued under the Plan. 

  

	 	(b)	Notwithstanding anything to the contrary contained in this Plan, the Company may prepare and file a Registration Statement on Form S-8 covering the shares to be issued under the
Plan, but is under no obligation to under the Plan. 

  

	 	(c)	“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

  

	7.	Delivery of Shares. The Company shall make delivery of certificates representing the shares of Common Stock which a Participant has elected to receive in payment of all or
part of his or her Retainer, within a reasonable period of time following the date of payment of the Retainer; provided, however, that if any law, regulation or agreement requires the Company to take any action with respect to the shares
before the issuance thereof, then the date of delivery of such shares shall be extended for the period necessary to take such action. Certificates representing shares received under this Plan may bear such restrictive legends as may be necessary or
desirable in order to comply with the applicable federal and state securities laws. 

  

	8.	Adjustments. In the event that, after the Board approves this Plan, the outstanding shares of Common Stock are increased or decreased or exchanged for a different number or
kind of shares or other securities of the Company by reason of a recapitalization, reclassification, stock split-up, combination of shares or dividend payable in stock or any other corporate transaction or event having an effect similar to any of
the foregoing, appropriate adjustments shall be made by the Board in the number and kind of shares or other securities that may be issued under this Plan. All adjustments made by the Board under this Section 8 shall be final and conclusive.

  

	9.	Termination Or Amendment Of The Plan. The Board reserves the right at any time to terminate, suspend or amend the Plan in whole or in part. An amendment, suspension or the
termination of this Plan shall not adversely affect the rights of a Participant to receive shares of Common Stock issuable or cash payable at the effective date of the amendment, suspension or termination without the Participant’s consent.

  

	10.	 Compliance with Section 409A of the Code. To the extent applicable, it is intended that this Plan and any issuances made hereunder comply with the

  

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provisions of Section 409A of the Code. This Plan and any issuances made hereunder shall be administrated in a manner consistent with this intent, and
any provision that would cause this Plan or any issuance made hereunder to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to
the extent permitted by Section 409A of the Code and may be made by the Company without the consent of Participants). 

  

	11.	Miscellaneous. 

  

	 	(a)	The rights, benefits or interests a Participant may have under this Plan are not assignable or transferable and shall not be subject in any manner to alienation, sale or any
encumbrances, liens, levies, attachments, pledges, charges or other legal process of the Participant or his or her creditors. Any action attempting to effect any transaction of that type shall be void and of no force and effect.

  

	 	(b)	The adoption and maintenance of this Plan shall not be deemed to be a contract between the Company and the Participant to retain his or her position as a director of the Company.

  

	 	(c)	The validity, interpretation and administration of the Plan and any rules, regulations, determinations or decisions hereunder and the rights of any and all persons having or
claiming to have any interest herein or hereunder shall be determined exclusively in accordance with the laws of the State of Delaware (without regard to the choice of law provisions thereof). 

  

	 	(d)	All notices, elections or other communications made or given pursuant to the Plan shall be in writing and shall be sufficiently made or given if hand-delivered or mailed by
certified mail, addressed (if from the Company to the Participant) to any Participant at the address contained in the records of the Company for such Participant, or addressed (if from the Participant to the Company) to the Secretary of the Company
at its principal office. 

  

	 	(e)	This Plan is intended to constitute an unfunded plan for tax purposes. 

  

	 	(f)	The headings in the Plan are for reference purposes only and shall not affect the meaning or interpretation of the Plan. 

  

	 	(g)	If any provision of this Plan is or becomes invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any issuance under any law deemed applicable by
the Board, such provision shall be construed or deemed amended or limited in scope to conform to applicable laws or, in the discretion of the Board, it shall be stricken and the remainder of this Plan shall remain in full force and effect.

  

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