Document:

exv10w49

 

Exhibit 10.49

PURCHASE AND SALE AGREEMENT

between

SPIEGEL ACCEPTANCE CORPORATION,

as Seller

- and -

eCAST SETTLEMENT CORPORATION,

as Buyer

Dated and Effective as of

December 5, 2007

 

 

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into this 5th day of December, 2007
(the “Closing Date”), by and between SPIEGEL ACCEPTANCE CORPORATION, a Delaware corporation with an
office and principal place of business c/o Eddie Bauer Holdings, Inc. at 10401 NE 8th
Street, Suite 500, Bellevue, Washington 98004 (“Seller”), and eCAST SETTLEMENT CORPORATION, a
Delaware corporation with an office and principal place of business at 383 Madison Avenue, New
York, New York 10179 (“Buyer”).

W I T N E S S E T H:

WHEREAS, Seller desires to sell certain Accounts (as defined herein);

WHEREAS, Buyer has reviewed and evaluated, to Buyer’s full satisfaction, the Accounts, and the
documents and records relating to the Accounts made available by Seller;

WHEREAS, Buyer was the successful bidder for purchase of the Accounts for the consideration and
under the express terms, provisions, conditions and limitations as set forth herein; and

WHEREAS, Seller is willing, subject to the express terms, provisions, conditions, limitations,
waivers and disclaimers as may be expressly set forth herein, to sell, transfer, assign and convey
to Buyer all of Seller’s right, title and interest, in, to and under the Accounts.

NOW, THEREFORE, in consideration of the mutual promises herein set forth and other valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer agree
as follows:

ARTICLE I

DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings indicated:

"Account” means each and any of the charged-off private-label credit card accounts which has become
subject to a Chapter 13 Proceeding or other bankruptcy proceeding identified on Exhibit A
attached hereto and made a part hereof and to be sold by Seller to Buyer under the terms,
conditions and provisions of this Agreement and includes for each of the Accounts identified on
Exhibit A, all obligations owed to Seller from each Obligor with respect to each Account,
and the interest of Seller in the bankruptcy to which Seller is a party or claimant relating to any
of the Accounts.

"Account Balance” means the claim amount or, if no claim has been filed or the claim amount is not
available, the account balance reflected in Servicer’s records as of the Cutoff Date and reflected
on the Account Schedule. It is possible that (i) payments or other consideration may have been
made or distributed by or on behalf of any Obligor on or prior to the Cutoff Date that are not
reflected in the Account Balance, or (ii) the Account Balance may reflect payments or other
consideration made or distributed by or on behalf of an Obligor which have been deposited and
credited to the balance of the Account, but which may subsequently be dishonored and thus returned
to Seller. Any such payment is hereinafter individually referred to as an “Obligor Payment” and
all such payments are hereinafter referred to collectively as the “Obligor Payments.” In either
case, the Account Balance shall be adjusted post-closing to the extent discrepancies are later
discovered, and Buyer shall be entitled to a partial refund of the Allocated Account Price as set
forth in Section 2.5.

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“Account Classification” means the classification shown on the Account Schedule for the sole
purpose of specifying certain matters herein.

“Account Documents” means, to the extent available, the original or any copy (including any
microfilm, microfiche, photocopy or machine-readable format) of the account statements, payment
histories, collection notes and correspondence from Obligors.

“Account Schedule” means the schedule, in electronic form, attached hereto as Exhibit A and
made a part hereof, setting forth the following information for each Account: the Account number,
the name of primary Obligor, the Account Balance and the Account Classification.

“Agreement” means this Purchase and Sale Agreement, including the cover page and all Addenda,
Exhibits and Schedules hereto.

“Allocated Account Price” means the individual price of any Account sold hereby which is calculated
as the product of the Purchase Price Percentage and the Account Balance for such Account sold
hereby.

“Business Day” means any day on which banks in the State of Washington are open for business other
than a Saturday, a Sunday or a federal holiday.

“Buyer Claims” has the meaning set forth in Section 9.2 of this Agreement.

“Chapter 13 Proceeding” means a proceeding under Chapter 13 of the U.S. Bankruptcy Code, pursuant
to which an individual formulates a plan for the payment of his or her debts.

“Claim” or “Claims” means a Buyer Claim or a Seller Claim, individually or collectively.

“Claim Verification Date” means the date by which Buyer shall be required to complete its
determination of Eligible Accounts (as further described in Article V), which date shall be no
later than 180 days following the Closing Date.

“Closing” means the consummation of the transaction under this Agreement pursuant to which Buyer
pays the Purchase Price to Seller and Seller delivers the Transfer Documents to Buyer.

“Computer File” means the computer file or files to be sent by e-mail or Federal Express priority
delivery by Servicer (as defined herein) to Buyer no later than the fifth Business Days from the
date of this Agreement. The file(s) shall be in a mutually acceptable electronic format, and shall
contain Account-specific information for each of the Accounts sold hereby. Seller will use its
best efforts to ensure the accuracy and completeness of the data. The Computer File shall include,
but shall not be limited to, the following fields to the extent applicable and available as of the
Cutoff Date for each Account: (i) Account Balance, (ii) account number, (iii) name, last known
address and last known phone number of the Obligor, (iv) social security number of the Obligor, (v)
date of last payment, (vi) last payment amount, (vii) interest rate, (viii) charge-off date, (ix)
open date, (x) last 12-month payment history by month and (xi) bankruptcy data returned from a
BANKO scrub, including filing date, chapter, case number and case disposition status. Buyer
acknowledges that Servicer’s records reflect payments by Obligors returned for insufficient funds
(“NSFs”) in the manner described in Exhibit D attached hereto.

“Cutoff Date” means midnight Eastern Standard Time on October 31, 2007 on which date the Account
Balances shall be determined for purposes of calculating the Purchase Price and Allocated Account
Prices.

“Defective Account” shall have the meaning set forth in Section 6.2.

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“Eligible Account” means an Account that, as of the Cutoff Date, meets the Eligibility
Requirements.

“Eligibility Requirements” means the requirements as set forth in Section 6.2 for any Account to
qualify as an Eligible Account.

“Escrow Agent” means The Bank of New York Trust Co., N.A, a national banking association.

“Escrow Agreement” means an escrow agreement of even date herewith between Seller and Escrow Agent
governing the disbursement of the Holdback which will be deposited at Closing into an escrow
account held by Escrow Agent.

“Holdback” means thirty percent (30%) of the Purchase Price (herein, “Holdback Funds”) which shall
be withheld from the Purchase Price at Closing and deposited in an escrow account held by Escrow
Agent pursuant to the Escrow Agreement for a period following the Closing Date (as further
described below). The Holdback shall be used for meeting Seller’s obligations pursuant to
Section 2.5 and Articles VI, VIII, and IX of this Agreement (herein,
collectively, “Holdback Obligations”). On the 181st day following the Closing Date (herein,
“Holdback Termination Date”), the Holdback shall belong to Seller free of any restrictions imposed
under this Agreement except for the amount of any Holdback Obligations that are pending on the
Holdback Termination Date (herein, the “Pending Claims”). Any Pending Claims that are not resolved
by agreement of Buyer and Seller on the date that is thirty (30) days after the Holdback
Termination Date shall be resolved by expedited binding arbitration conducted pursuant to the rules
and under the jurisdiction of the American Arbitration Association in the State of New York. Upon
the occurrence of the first to occur of (i) the Holdback Termination Date, or, if there are Pending
Claims, the date on which all Pending Claims have been resolved by expedited binding arbitration,
or (ii) the date on which all Holdback Funds have been depleted through Seller’s fulfillment of the
Holdback Obligations, Seller shall have no further Holdback Obligations under this Agreement and
shall be released therefrom.

“Indemnitee” has the meaning set forth in Section 9.3 of this Agreement.

“Indemnitor” has the meaning set forth in Section 9.3 of this Agreement.

“Loan Sale Advisor” means Garnet Capital Advisors, LLC.

“Obligor” means the current and unreleased obligor on an Account.

“Other Accounts” means each and any charged-off private label credit card accounts which do not
qualify as an “Account” but will be identified by Seller and transferred to Buyer at Closing
without recourse and without representations or warranties, express or implied, of any type, kind,
or nature, and includes for each of the Other Accounts all obligations owed to Seller from each
Obligor with respect to each Other Account.

“Purchase Price” means the amount, in dollars, to purchase the Accounts as stated in Section
2.4, calculated by multiplying the aggregate Account Balances as shown on the Account Schedule
by the Purchase Price Percentage.

“Purchase Price Percentage” means 10.15% for Accounts with an Account Classification of “Pool 6”
and 1.10% for Accounts with an Account Classification of “Pool 7”.

“Repricing Notice” has the meaning set forth in Section 6.1 of this Agreement.

“Resale Notice” has the meaning set forth in Section 10.1 of this Agreement.

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“Seller Claims” has the meaning set forth in Section 9.2 of this Agreement.

“Servicer” means CardWorks Servicing, LLC, formerly known as Cardholder Management Services,
L.L.C., and its permitted successors and assigns.

“Servicing Agreement” means that certain Servicing Agreement dated as of December 15, 2006 between
the Servicer and Deutsche Bank Trust Company Americas, as Owner Trustee of Spiegel Credit Card
Master Note Trust, the predecessor in interest to Seller, which was assigned to and assumed by
Seller as of September 26, 2007, as amended.

“Transfer Documents” means the Bill of Sale and Assignment and such other documents as Seller and
Buyer reasonably agree are necessary, proper or appropriate for the legal transfer of Seller’s
right, title and interest in and to the Accounts purchased pursuant to this Agreement.

“Trustee” means the trustee in a Chapter 13 Proceeding.

“UCC” means the Uniform Commercial Code as in effect in the applicable state.

ARTICLE II

PURCHASE AND SALE OF THE ACCOUNTS

			
	Section 2.1	 	 Agreement to Sell and Purchase Accounts. Seller agrees to
sell, and Buyer agrees to purchase, the Accounts described in
the Account Schedule, subject to the terms, provisions,
conditions, limitations, waivers and disclaimers set forth in
this Agreement. Seller agrees to transfer, and Buyer agrees
to accept, without additional consideration, the Other
Accounts to be identified by Seller at Closing.

			
	Section 2.2	 	Agreement to Assign. At Closing, Seller shall deliver to
Buyer a Bill of Sale and Assignment, in the form of
Exhibit B
hereto, executed by an authorized representative of Seller,
which Bill of Sale and Assignment together shall sell,
transfer, assign, set over, quitclaim and convey to Buyer all
right, title and interest of Seller in and to each of the
Accounts sold and the proceeds of the Accounts received by
Seller, if any, from and after the Cutoff Date.

			
	Section 2.3	 	Account Schedule. Seller has provided as
Exhibit A hereto the
Account Schedule setting forth all of the Accounts which
Buyer has agreed to purchase and Buyer acknowledges that the
same has been reviewed to its full satisfaction.

			
	Section 2.4	 	Purchase Price/Payment. The Purchase Price for the Accounts
is $1,648,062 which Buyer shall pay to Seller on or before
5:00 p.m. Eastern Standard Time on the Closing Date. The
Purchase Price shall be paid to Seller in United States
Dollars by wire transfer of immediately available funds to an
account specified by Seller.

			
	Section 2.5	 	Payments Received/Adjustments to Purchase Price. To the
extent that Seller has received any Obligor Payments prior to
the Cutoff Date, Seller has reduced the Account Balances of
the applicable Accounts for purposes of calculating the
Purchase Price. Buyer shall be entitled to a refund of the
Purchase Price within 180 days after the Closing Date in an
amount equal to the product of (i) the Purchase Price
Percentage, and (ii) amount of such Obligor Payments to the
extent that the Account Balances were not reduced by such
Obligor Payments. Seller’s liability for refunds obligations
under this Section 2.5 shall be made from and limited to the
Holdback, and Buyer shall submit all requests for such
refunds to Seller with a copy to Escrow Agent.

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	Section 2.6.	 	Delivery of Post-Cutoff-Date Payments and Correspondence. If
Seller or Servicer shall receive any Obligor Payments after
the Cutoff Date, Seller shall pay over and/or deliver the
same to Buyer (less any commissions, fees and expenses due to
any third-party collection agencies or attorneys for payments
received between the Cutoff Date and the Closing Date) on or
within 30 days of receipt of such Obligor Payments and, if
deemed necessary or appropriate by Seller or Servicer, with
an endorsement in the form substantially as follows: “Pay to
the order of eCast Settlement Corporation without
representations or warranties and without recourse.” Seller
shall indicate on the records related to any of the Accounts
transmitted to Buyer with any remittances made pursuant to
this Section 2.6 the account number, the date of receipt of
each Obligor Payment, the amount of each Obligor Payment, the
commissions, fees and expenses paid thereon to any
third-party collection agencies or attorneys, and any other
detail reasonably required to allow Buyer to properly post
the payments to its servicing system. If Seller has
deposited any Obligor Payments received from any Obligor and
issued a check or payment to Buyer with respect thereto,
Buyer shall retain the risk that any such payment so
deposited by Seller shall be returned due to insufficient
funds. Seller shall have a period of 30 days after the date
Seller delivers to Buyer any Obligor Payment pursuant to this
Section 2.6, to notify Buyer in writing that any such Obligor
Payment was returned due to insufficient funds and specifying
the amount thereof, whereupon Buyer shall immediately, and
not later than 30 days following receipt of such notice, pay
to Seller the amount of such payment by check and identify
thereon that the payment is being made pursuant to this
Section 2.6. Seller will also deliver or cause Servicer to
deliver to Buyer at Closing any written communications with
respect to the Accounts received by Seller or Servicer after
the Cutoff Date, and will use reasonable efforts to deliver
or cause Servicer to deliver to Buyer any subsequent written
communications related to the Accounts within 15 days of
receipt thereof by Seller or Servicer, as the case may be.

ARTICLE III

TRANSFER OF ACCOUNTS AND DOCUMENTS

			
	Section 3.1	 	Assignment of Accounts. On the Closing Date, after
confirmation by Seller of receipt of the payment of the
Purchase Price, Seller shall execute and deliver or make
available to Buyer the Transfer Documents. The Bill of Sale
and Assignment shall have the same effect as an individual and
separate bill of sale for and assignment of each and every
Account referenced therein. Buyer shall be responsible at its
own expense for the recording and/or filing of the originals
of any such assignments as it deems necessary or appropriate
in its sole discretion.

			
	Section 3.2	 	Requests for Account Documents. At Buyer’s request, from the
Closing Date through the one-year anniversary of the Closing
Date, Seller will cause Servicer to provide Account Documents
to Buyer on a case-by-case request basis. The charge will be
$10 per request with a standard 6-business day turn-around
time. If a faster 4-business day turn-around is requested, the
charge will be $15 per request. After the one-year
anniversary of the Closing Date, Servicer may, in its sole
discretion, negotiate new arrangements and pricing with Buyer
for Buyer to purchase from Seller additional Account
Documents. Seller, acting through Servicer, shall not be
obligated to provide documentation for more than 12 Accounts
per week. To the extent that Account Documents are not
available, Seller shall cause Servicer to execute and deliver
to Buyer affidavits of debt in a form mutually agreeable to
the parties, subject to the aforementioned limitations on
quantity

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and charge per request. Servicer shall invoice Buyer directly on a monthly
basis for all charges related to the delivery of Account Documents. Buyer
shall be obligated to pay Servicer in full within 15 days of receipt of such
invoice.

			
	Section 3.3	 	Collection/Contingency Fees. No Account sold
hereunder is subject to third-party collection or
contingency fees as of the Closing Date.

			
	Section 3.5	 	Apportionment of Costs. Except as otherwise
specifically provided in this Agreement, each party
will be responsible for all fees, costs and expenses
which it incurs in connection with the negotiation,
execution, delivery and performance of this Agreement
and the transactions contemplated hereby.

ARTICLE IV

SERVICING/COLLECTION

			
	Section 4.1	 	Servicing/Collection After Closing Date. Unless Buyer, in
its sole discretion, elects to assume Seller’s obligations
under the Servicing Agreement, Seller shall terminate such
Servicing Agreement prior to Closing and sell the Accounts to
Buyer on a servicing-released basis. As of the Closing Date,
all rights, obligations, liabilities and responsibilities
with respect to the servicing of the Accounts shall pass to
Buyer, and Seller shall be discharged from all responsibility
for servicing the same. Buyer shall use its reasonable best
efforts, consistent with the U.S. Bankruptcy Code and other
applicable laws, to cause all payments made on the Accounts
after the Closing Date to be made directly to Buyer.

			
	Section 4.2.	 	Notification to Obligors. After the Closing Date, if
reasonably necessary and permitted by law, Buyer may send a
letter to any Obligor or his or her authorized representative
confirming the transfer of the Obligor’s Account to Buyer.
Buyer agrees that it will not send such a letter or otherwise
communicate with an Obligor outside the bankruptcy process
unless the Chapter 13 Proceeding in which such Obligor is
involved has been dismissed.

			
	Section 4.3	 	Debt Collection of Accounts. If Buyer collects or attempts
to collect on an Account, Buyer and/or its agent shall at all
times:

	 	(a)	 	comply with all state and federal laws applicable to
debt collection including without limitation, the Consumer Credit
Protection Act, the Fair Credit Reporting Act and the Fair Debt Collection
Practices Act;
	 
	 	(b)	 	for any Account where the statute of limitations has
run, not falsely represent that a lawsuit will be filed if the Obligor does
not pay; and
	 
	 	(c)	 	not charge any Obligor any charges which are
unauthorized.

			
	Section 4.4	 	Use of Seller’s Name. Buyer shall not use or refer to the name of Seller, any
affiliate of Seller, or First Consumers National Bank and will not represent itself to be the
agent, partner, or joint venturer of Seller, any affiliate of Seller, or First Consumers
National Bank with respect to the Accounts. However, Buyer may use the name of Seller or an
affiliate of Seller for purposes of identifying an Account in communications with the Obligors
or in the caption of any litigation against Obligor (so long as it is apparent that name of
Seller or its affiliate is not set forth in such caption as the party plaintiff) in order to
collect amounts outstanding on the Accounts. In contacting or filing suit against an

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Obligor, or selling Accounts, Buyer shall not state or represent in any way
that Buyer is contacting the Obligor, filing suit or selling accounts for or on
behalf of Seller, any affiliate of Seller, or First Consumers National Bank or
that any of the foregoing will take any action with regard to the Account or
the Obligor.

			
	Section 4.5	 	 Reporting to Credit Bureaus. Promptly following
Closing, Seller shall cause Servicer to report the
Accounts to the appropriate credit reporting agencies
as having been sold/transferred. Except as required
by law, Seller shall have no further obligation with
respect to credit reporting with respect to the
Accounts after Closing is consummated hereunder.

ARTICLE V

CLAIM VERIFICATION

Buyer will use its best efforts to determine by the Claim Verification Date whether each Account
meets the Eligibility Requirements on the basis of the information provided by the Trustee or the
bankruptcy court in the related Chapter 13 Proceeding, as applicable, whether through the
applicable bankruptcy court, Trustee or a third-party service. On or before the Claim Verification
Date, Buyer will provide to Seller a report listing each Account with respect to which Buyer has
determined from information received from any Trustee, bankruptcy court or third party service,
indicating that the Account does not meet the Eligibility Requirements. If Buyer provide notice to
Seller that Buyer is unable to obtain information from a Trustee or bankruptcy court to verify
whether any Account meets the Eligibility Requirements, Seller will cooperate fully with Buyer (a)
to locate additional data or current Account information as may be necessary to identify any claim
related thereto for purposes of verification by the applicable Trustee or bankruptcy court, and/or
(b) to reconcile any disputed Accounts or claims between the Trustee or bankruptcy court and
Seller. If, within 180 days after the Closing Date, any claim cannot be verified, Buyer and Seller
having made their best efforts to verify such claim, Buyer may submit and Seller will accept such
Account for repricing in accordance with the terms and conditions set forth in Article VI. As a
condition to the Seller’s obligation to accept any Account for repricing under this Article V,
Buyer shall be required to demonstrate to Seller’s reasonable satisfaction that it has acted in a
timely manner and has diligently pursued the investigation, verification and obtaining assignment
of the claims relating to such Accounts. This Article V shall only apply to Accounts with an
Account Classification of “Pool 6”.

ARTICLE VI

SELLER’S OBLIGATION TO REPRICE ACCOUNTS

			
	Section 6.1	 	Seller’s Obligation to Reprice Accounts. Subject to the
provisions of this Article VI, Buyer may request Seller to
reprice any Account (each, a “Repricing Request”) by giving
written notice to Seller (with a copy to Escrow Agent) if any
condition in Subsections 6.2(a) through (f) is not satisfied,
provided that Buyer may only request repricing of such Account
within 180 days of the Closing Date and shall aggregate its
requests such that not more than one request for payment is
submitted to Seller (with a copy to Escrow Agent) in any
calendar month with respect to all Holdback Obligations.
Seller’s liability for obligations under this
Article VI shall
be limited to the Holdback. This Article VI shall only apply
to Accounts with an Account Classification of “Pool 6”.

			
	Section 6.2	 	Defective Accounts. Any Account which fails to meet the
conditions set forth below as of the Closing Date shall be
considered a Defective Account:

	 	(a)	 	The Obligor is not deceased and has not been granted a
discharge with respect to such Obligor’s Chapter 13 Proceeding, as
applicable;

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	 	(b)	 	Seller’s claim with respect to such Account has not
been disallowed in the Chapter 13 Proceeding related thereto;
	 
	 	(c)	 	The claim amount for such Account is not more than 10%
less than the related Account Balance;
	 
	 	(d)	 	Seller has filed all necessary forms and paperwork
related to the Chapter 13 Proceeding of which it is aware, including but
not limited to its Proof of Claim; provided, however, that to the extent
that the deadline for filing such forms or paperwork has not expired and
will not expire for 20 days following the Closing Date, such failure to
file shall not be deemed to render such Account a Defective Account;
	 
	 	(e)	 	The Chapter 13 Proceeding has not been dismissed,
completed, converted to a Chapter 7 proceeding or closed; and
	 
	 	(f)	 	The Account is scheduled for full or partial payment,
or is at a stage in its Chapter 13 Proceeding at which such determination
has not been made by the respective Trustee and/or ratified by the
bankruptcy court.

			
	Section 6.3	 	Buyer’s Obligation in Requesting Repricing. With respect to
any Repricing Request, Buyer shall provide detailed
information regarding the basis for such request, including,
if applicable, (i) the bankruptcy court, case number and, if
available, a discharge date with respect to any Account that
has been discharged by the bankruptcy court, (ii) a copy of
the death certificate with respect to any Account for which
the Obligor is deceased, or (iii) any other documentation
which is reasonably necessary to demonstrate that the Account
is a Defective Account.

			
	Section 6.4	 	Account Repricing Procedure: Seller’s Right of Investigation.
Within 30 days of any Repricing Request made by Buyer in
accordance with Section 6.3, unless Seller gives Buyer (with a
copy to Escrow Agent) written notice of an objection to such
Repricing Request before the sixth (6th) Business
Day after Seller’s receipt of a copy thereof, Seller pay or
shall cause to be paid to Buyer an amount equal to the
Allocated Purchase Price for the Account that is the subject
of such Repricing Request, less any amounts collected by Buyer
after the Cutoff Date. Any Repricing Requests that have not
been resolved by mutual agreement of Buyer and Seller before
the Holdback Termination Date shall be a Pending Claim.

ARTICLE VII

REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER

Buyer hereby represents, warrants and covenants, as of the date of this Agreement and as of the
Closing Date as follows:

			
	Section 7.1	 	Independent Evaluation. Buyer is a sophisticated investor, has knowledge and
experience in financial and business matters that enable it to evaluate the merits and risks
of the transaction contemplated by this Agreement, and its bid for and decision to purchase
the Accounts pursuant to this Agreement is and was based upon Buyer’s own independent
evaluation of information deemed relevant to Buyer, and of the information made available to
Buyer or its agents by Seller or Seller’s personnel, agents, representatives or independent
contractors, which information Buyer acknowledges and agrees was in fact made available to it
and which it was given the opportunity to inspect

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to its complete satisfaction. Buyer has relied solely on its own investigation
and has not relied upon any oral or written information provided by Seller or
its personnel, agents, representatives or independent contractors other than
those representations and warranties contained in this Agreement. Buyer
acknowledges and agrees that no employee, agent, representative or independent
contractor of Seller has been authorized to make, and Buyer has not relied
upon, any statements made by Seller or its employees, agents, representatives
or independent contractors relating to the Accounts other than those expressly
contained in this Agreement. Buyer acknowledges that Seller has attempted to
provide accurate information to all prospective bidders but that Seller does
not represent, warrant or insure the accuracy or completeness of any
information or its sources of information contained in the materials submitted
to Buyer. Buyer has made such independent investigations as it deems to be
warranted into the nature, validity, enforceability, collectability, and value
of the Accounts, and all other facts Buyer deems material to its purchase and
is entering into this transaction solely on the basis of that investigation and
Buyer’s own judgment.

			
	Section 7.2	 	Authorization. Buyer is duly and legally authorized
to enter into this Agreement and has complied with
all laws, rules, regulations, charter provisions and
bylaws to which it may be subject in connection with
this Agreement and the undersigned representative is
authorized to act on behalf of and bind Buyer to the
terms of this Agreement.

			
	Section 7.3	 	Binding Obligations. This Agreement and all of the
obligations of Buyer hereunder are the legal, valid
and binding obligations of Buyer, enforceable in
accordance with the terms of this Agreement, except
as such enforcement may be limited by bankruptcy,
insolvency, reorganization or other similar laws
affecting the enforcement of creditors’ rights
generally and by general equity principles
(regardless of whether such enforcement is considered
in a proceeding in equity or at law).

			
	Section 7.4	 	No Breach or Default. The execution and delivery of
this Agreement and the performance of its obligations
hereunder by Buyer will not conflict with any
provision of any law or regulation to which Buyer is
subject or conflict with or result in a breach of or
constitute a default under any of the terms,
conditions or provisions of any agreement or
instrument to which Buyer is a party or by which it
is bound or any order or decree applicable to Buyer,
or result in the violation of any law, rule,
regulation, order, judgment or decree to which Buyer
or its property is subject.

			
	Section 7.5	 	 Accounts Sold As Is. BUYER ACKNOWLEDGES AND AGREES
THAT ALL ACCOUNTS, ALL DOCUMENTATION, INFORMATION,
ANALYSIS AND/OR CORRESPONDENCE, IF ANY, ARE SOLD,
TRANSFERRED, ASSIGNED AND CONVEYED TO BUYER ON AN “AS
IS, WHERE IS” BASIS, WITH ALL FAULTS, EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED HEREIN. BUYER
ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT AND DOES
NOT REPRESENT, WARRANT OR COVENANT THE NATURE,
ACCURACY, COMPLETENESS, ENFORCEABILITY OR VALIDITY OF
ANY OF THE ACCOUNTS, AND/OR THE ACCOUNT DOCUMENTS,
EXCEPT AS EXPRESSLY PROVIDED HEREIN.

			
	Section 7.6	 	Pending Litigation. There is no proceeding, action,
investigation or litigation pending or, to the best
of Buyer’s knowledge, threatened against Buyer which,
individually or in the aggregate, may have a material
adverse effect on this Agreement or any action taken
or to be taken in connection with Buyer’s obligations
contemplated herein, or which

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would be likely to impair materially its ability to perform under the terms of this Agreement.

			
	Section 7.7	 	Approvals and Notices. No consent, approval, authorization, or order of,
registration or filing with, or notice to, any governmental authority or court
is required under federal laws, or the laws of any jurisdiction, for the
execution, delivery, and performance of or compliance by Buyer with this
Agreement or the consummation of any other transaction contemplated hereby.

			
	Section 7.8	 	Economic Risk. The transactions contemplated by this Agreement do not involve,
nor are they intended in any way to constitute, the sale of a “security” or
“securities” within the meaning of any applicable securities laws, and none of
the representations, warranties or agreements of Buyer shall create any
inference that the transactions involve any “security” or “securities”. Buyer
acknowledges, understands and agrees that the acquisition of these Accounts
involve a high degree of risk and are suitable only for persons or entities of
substantial financial means who have no need for liquidity and who can hold the
Accounts indefinitely or bear the partial or entire loss of their value.

			
	Section 7.9	 	Nondisclosure. Buyer is in full compliance with its obligations under the terms
of any confidentiality agreement executed by Buyer as a condition of reviewing
the information made available by Seller or its personnel, agents,
representatives or independent contractors to all potential bidders for the
Accounts. Furthermore, Buyer shall keep the terms of the Agreement
confidential, including the that fact that it has purchased the Accounts from
Seller, except for any notification to Obligors required pursuant to Section
4.2 of this Agreement.

			
	Section 7.10	 	Identity. Buyer is a “United States person” within the meaning of Paragraph
7701(a)(30) of the Internal Revenue Code of 1986, as amended.

			
	Section 7.11	 	Enforcement/Legal Actions. Buyer shall not institute any enforcement or legal
action or proceeding in the name of Seller, any affiliate of Seller, or any
predecessor in interest of Seller. Buyer shall not make reference to any of
the foregoing entities in any correspondence to or discussion with any
particular Obligor regarding enforcement or collection of the Accounts, except
to identify the subject debt as set forth in Section 4.4. Buyer shall comply
in all respects with all applicable laws in connection with the Accounts
including, but not limited to, those relating to debt collection practices, not
taking any enforcement action against any Obligor that would be commercially
unreasonable, and not misrepresenting, misleading, deceiving, or otherwise
failing to adequately disclose to any particular Obligor the identity of Buyer
as the owner of the Accounts. Buyer agrees, acknowledges, confirms and
understands that there may be no adequate remedy at law for a violation of the
terms, provisions, conditions and limitations set forth in this
Section 7.12
and, accordingly, Seller shall have the right to seek the entry of an order by
a court of competent jurisdiction enjoining any violation hereof by Buyer or
Buyer’s agent.

			
	Section 7.12	 	Status of Buyer. Buyer is a sophisticated purchaser that (i) is in the business
of buying or originating or collecting Accounts of the type being purchased, or
(ii) otherwise deals in such Accounts in the ordinary course of Buyer’s
business.

			
	Section 7.13	 	DTPA Waiver. Buyer has sufficient knowledge and experience in financial and
business matters to evaluate the merits and risks of the transactions
contemplated hereby. Further, Buyer is not in a disparate bargaining position
relative to Seller. Buyer hereby waives, to

Page 11 of 19

 

the maximum extent permitted by law, any and all rights, benefits and remedies
under any state deceptive or unfair trade practices/consumer protection act,
with respect to any matters pertaining to this Agreement and the transactions
contemplated hereby.

			
	Section 7.14	 	No Collusion. Neither Buyer, its affiliates, nor any
of their respective officers, partners, agents,
representatives, employees or parties in interest has
(i) in any way colluded, conspired, connived or
agreed directly or indirectly with any other bidder,
firm or person to submit a collusive or sham bid, or
any bid other than a bona fide bid, in connection
with the sale resulting in Buyer being the highest
bidder for the Accounts subject to this Agreement, or
(ii) in any manner, directly or indirectly, sought by
agreement or collusion or communication or conference
with any other bidder, firm or person to fix the
price or prices, or to fix any overhead, profit or
cost element of the bid price or the bid price of any
other bidder at the sale resulting in Buyer being the
highest bidder for the Accounts subject to this
Agreement, or to secure any advantages against
Seller.

			
	Section 7.15	 	Broker. Buyer has not engaged any broker or agent in
connection with this Agreement or the transactions
contemplated by this Agreement or to which this
Agreement relates and Buyer covenants to defend with
counsel approved by Seller and hold harmless and
indemnify Seller from and against any and all costs,
expense or liability for any compensation,
commissions and charges claimed against Seller by any
broker or agent based upon a written agreement with
Buyer relating to this Agreement or the transactions
contemplated herein.

			
	Section 7.16	 	Survival. The representations and warranties set
forth in this Article VII shall survive the closing
of the transactions herein contemplated.

			
	Section 7.17	 	Notice of Holdback Claims. Simultaneously with
its submission to
Escrow Agent of any
claim to satisfy a
Holdback Obligation,
Buyer shall provide a
copy of such claim to
Seller. Buyer
acknowledges that the
Escrow Agreement will
provide that if
Seller delivers to
Escrow Agent a notice
of objection to the
payment of such claim
within five (5)
Business Days after
receipt of a copy of
any such claim,
Escrow Agent shall
not disburse funds
from the Holdback
with respect to such
claim until the
earlier to occur of
receipt of (i)
written directions
executed by Buyer and
Seller, or (ii) an
order of an
arbitrator appointed
by the American
Arbitration
Association directing
payment thereof.

ARTICLE VIII

REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER

Seller hereby represents, warrants and covenants, as of the date of this Agreement and as of the
Closing Date as follows:

			
	Section 8.1	 	Authorization. Seller is duly and legally authorized to enter
into this Agreement and has complied with all laws, rules,
regulations, charter provisions and bylaws to which it may be
subject in connection with this Agreement and the undersigned
representative is authorized to act on behalf of and bind
Seller to the terms of this Agreement.

			
	Section 8.2	 	Binding Obligations. This Agreement and all of the obligations
of Seller hereunder are the legal, valid and binding
obligations of Seller, enforceable in accordance with the
terms of this Agreement, except as such enforcement may be
limited by bankruptcy, insolvency, reorganization or other
similar laws affecting the enforcement of creditors’

Page 12 of 19

 

rights generally and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

			
	Section 8.3	 	No Breach or Default. The execution and delivery of
this Agreement and the performance of its obligations
hereunder by Seller will not conflict with any
provision of any law or regulation to which Seller is
subject or conflict with or result in a breach of or
constitute a default under any of the terms,
conditions or provisions of any agreement or
instrument to which Seller is a party or by which it
is bound or any order or decree applicable to Seller,
or result in the violation of any law, rule,
regulation, order, judgment or decree to which Seller
or its property is subject.

			
	Section 8.4	 	Title to Accounts. Seller is the lawful holder of
the Accounts, having received title to the credit
card accounts from CCA Assets LLC pursuant to that
certain Bill of Sale a copy of which is attached
hereto as Exhibit C-1 (CCA Assets LLC having received
title to such credit card accounts from First
Consumers National Bank pursuant to that certain Bill
of Sale a copy of which is attached hereto as Exhibit
C-2) and to the receivables from Spiegel Credit Card
Master Note Trust pursuant to that certain Bill of
Sale a copy of which attached hereto as Exhibit C-3.
Seller is duly and legally authorized to sell,
transfer, convey and assign its rights therein. Since
having acquired title to such accounts and
receivables from Spiegel Credit Card Master Note
Trust and CCA Assets LLC, Seller has not made any
assignment, conveyance, transfer or sale of any of
its rights or interests in the Accounts.

			
	Section 8.5	 	Compliance with Law. The Accounts have been
originated, serviced and collected in accordance with
all applicable laws, and the Accounts are valid,
legally enforceable debts, due and owing from each
Obligor.

			
	Section 8.6	 	Broker. Seller has not engaged any broker or agent
in connection with this Agreement or the transactions
contemplated by this Agreement or to which this
Agreement relates except Loan Sale Advisor for whose
fees Seller shall be solely responsible in accordance
with its agreement with Loan Sale Advisor and Seller
covenants to defend with counsel approved by Buyer in
its reasonable discretion and hold harmless and
indemnify Buyer from and against any and all costs,
expense or liability for any compensation,
commissions and charges claimed against Buyer by any
broker or agent based upon a written agreement with
Seller relating to this Agreement or the transactions
contemplated herein.

			
	Section 8.7	 	Accounts. The Accounts are closed credit card
accounts and are general intangibles as such term is
defined in the Section 9-102 of the UCC and are not
evidenced by instruments as such term is defined in
Section 9-102 of the UCC.

			
	Section 8.8	 	Holdback. Seller shall maintain the Holdback in the
amounts and periods stated in the definition thereof.

			
	Section 8.9	 	Survival. The representations and warranties set
forth in this Article VIII shall survive the Closing
Date for 180 days.

			
	Section 8.10	 	Pending Legal Proceedings. No Account sold hereunder
is subject to any legal proceeding (other than a
bankruptcy proceeding) initiated by an Obligor as of
the Closing Date.

Page 13 of 19

 

			
	Section 8.11	 	 Account Balances. The Account Balances as shown on
the Account Schedule are true and correct as of the
Cutoff Date.

EXCEPT FOR THOSE EXPRESSED IN THIS ARTICLE VIII, NO WARRANTIES OR REPRESENTATIONS, EXPRESS OR
IMPLIED, HAVE BEEN MADE BY SELLER OR BY ANYONE ACTING ON ITS BEHALF. WITHOUT IN ANY WAY LIMITING
THE GENERALITY OF THE FOREGOING, NO WARRANTIES OR REPRESENTATIONS HAVE BEEN MADE OR ARE MADE
REGARDING (i) THE COLLECTIBILITY OR ENFORCEABILITY OF ANY THE ACCOUNTS OR (ii) THE CREDITWORTHINESS
OF ANY OBLIGOR, GUARANTOR, OR SURETY WITH RESPECT TO ANY OF THE ACCOUNTS.

ARTICLE IX

INDEMNIFICATION

			
	Section 9.1	 	Buyer’s Indemnification. From and after the date of this Agreement, Buyer
shall indemnify and hold Seller, CCA Assets LLC and their respective affiliates, and their
respective directors, officers, employees, agents and advisors (each a “Seller Indemnified
Party”) harmless against and from any and all liability for, and from and against any and all
losses or damages a Seller Indemnified Party may suffer as a result of, any claim, demand,
cost, expense, or judgment of any type, kind, character or nature asserted by any third party
(herein, “Seller Claims”) including, without limitation, all reasonable expenses incurred by a
Seller Indemnified Party in investigating, preparing or defending against any such Seller
Claims and reasonable attorneys’ fees both for such defense and all costs and expenses
incurred by a Seller Indemnified Party to enforce this indemnification, which a Seller
Indemnified Party shall incur or suffer as a result of:

	 	(i)	 	the material inaccuracy of any of Buyer’s
representations or warranties made in this Agreement,
	 
	 	(ii)	 	the material breach of any of Buyer’s covenants made in
this Agreement,
	 
	 	(iii)	 	any claim by any Obligor regarding assignment,
subsequent enforcement, servicing or administration of the Accounts by
Buyer or Buyer’s agents, or
	 
	 	(iv)	 	any claim arising under the Escrow Agreement resulting
from any act or omission of Buyer.

The
obligations of Buyer under this Article IX shall survive
the closing of the transactions herein contemplated for a
period of two (2) years

			
	Section 9.2	 	Seller’s Indemnification. From and after the date of this
Agreement, Seller shall indemnify and hold Buyer and its
affiliates, and their respective directors, officers,
employees, agents and advisors (each a “Buyer Indemnified
Party”) harmless against and from any and all liability for,
and from and against any and all losses or damages a Buyer
Indemnified Party may suffer as a result of, any claim,
demand, cost, expense, or judgment of any type, kind,
character or nature asserted by any third party (herein,
“Buyer Claims”) including, without limitation, all reasonable
expenses incurred by a Buyer Indemnified Party in
investigating, preparing or defending against any such Buyer
Claims and reasonable attorneys’ fees both for such defense
and all costs and expenses incurred by Buyer to enforce this
indemnification, which a Buyer Indemnified Party shall incur
or suffer as a result of:

Page 14 of 19

 

	 	(i)	 	the material inaccuracy of any of Seller’s
representations or warranties made in this Agreement,
	 
	 	(ii)	 	the material breach of any of Seller’s covenants made
in this Agreement,
	 
	 	(iii)	 	any claim by any Obligor regarding the origination,
servicing, collection or administration of the Accounts by Seller or
Seller’s agents, or
	 
	 	(iv)	 	any claim arising under the Escrow Agreement resulting
from any act or omission of Seller.

The
obligations of Seller under this Article IX shall survive
the closing of the transactions herein contemplated for one
hundred and eighty days (180) days and, recourse against
Seller shall be limited to the Holdback.

			
	Section 9.3	 	Procedure for Indemnification. Any party seeking
indemnification (“Indemnitee”) with respect to a Claim shall
give prompt written notice thereof to the party against whom
indemnification is sought (“Indemnitor”). Indemnitor shall
have the right to assume the defense of any and all Claims for
which indemnification is sought hereunder, and Indemnitee
agrees to cooperate with Indemnitor in any such defense. If
the amount of any Claim shall, at any time subsequent to
payment pursuant to this Agreement, be reduced by recovery,
settlement or otherwise, the amount of such reduction, less
any expenses incurred in connection therewith, shall promptly
be repaid by Indemnitee to Indemnitor.

ARTICLE X

RESALE OF ACCOUNTS

Except as otherwise set forth in this Article X, Buyer may not assign any rights under this
Agreement to any person or entity without the express prior written consent of Seller.

			
	Section 10.1	 	Notice. If Buyer wishes to resell or transfer any of the Accounts to a third
party (including without limitation, any of Buyer’s affiliated companies), Buyer must give
Seller at least 10 days’ prior written notice (each, a “Resale Notice”) of Buyer’s desire to
transfer. The Resale Notice shall:

	 	(a)	 	identify the Account(s) that Buyer wishes to resell or
transfer; and
	 
	 	(b)	 	identify by name and address each third party that
potentially would purchase or otherwise receive the Account(s) from Buyer.

Notwithstanding the above, Buyer may resell or transfer the Accounts to one or more
of its directly or indirectly wholly-owned entities or to one or more trusts
established by such entities or pledge or create a security interest in the Accounts
to or for a lender as collateral for a loan.

			
	Section 10.2	 	Approval. Seller shall have the right to approve of any
resale or transfer proposed by Buyer as provided in Section
10.1 hereof within the 10-day period following receipt of a
Resale Notice, which approval shall not be unreasonably
withheld, conditioned or delayed.

Page 15 of 19

 

			
	Section 10.3	 	Assignment. If Buyer sells or transfers an Account to a
third party in accordance with this Article X, Buyer shall
assign to that third party all of Buyer’s obligations under
this Agreement relating to such Account, and Buyer’s
purchaser or transferee shall accept the assignment, and
expressly assume such Accounts in a writing that specifically
indicates that Seller is an intended beneficiary thereof.
Seller shall not be obligated in any way to a third party who
acquires or purports to have acquired any of the Accounts.
Any resale or assignment of Accounts without concurrent
assignment of Buyer’s obligations under this Agreement shall
be void.

			
	Section 10.4	 	Communication with Seller. Any approved third party to whom
Buyer transfers Accounts shall not have the right to contact
Seller directly and any communications between any such
approved third-party transferees and Seller shall go through
Buyer as the intermediary. Seller shall have the right, but
not the obligation, to contact any third-party transferee
directly if it receives collection complaints from any
Obligor. In such case, Seller shall notify Buyer of its
direct communication with such third-party transferee.

			
	Section 10.5	 	Liability. No sale or transfer of any Account by Buyer to
any person or entity will relieve Buyer of any of its
obligations or liabilities under this Agreement.

ARTICLE XI

RESERVED

ARTICLE XII

NOTICES

Unless otherwise provided for herein, notices and other communications required or permitted
hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered but no
later than the second Business Day following mailing sent by overnight mail or overnight courier,
(b) when delivered, if sent by facsimile and receipt is confirmed by telephone, or (c) when
received, if sent by e-mail and an e-mail confirming receipt is sent by the recipient, in each case
to the parties at the following addresses (or at such other addresses as shall be specified by like
notice):

	 	 	 
	If to Seller:

	 	Spiegel Acceptance Corporation
	 

	 	c/o Eddie Bauer Holdings, Inc.
	 

	 	10401 NE 8th Street, Suite 500
	 

	 	Bellevue, Washington 98004
	 
	 	 
	 

	 	Attn: Vivian Gysler
	 

	 	Tel: (425) 755-6167
	 

	 	Fax: (425) 755-7671
	 

	 	E-Mail: vivian.gysler@eddiebauer.com

Page 16 of 19

 

	 	 	 
	If to Buyer:

	 	eCast Settlement Corporation
	 

	 	383 Madison Avenue
	 

	 	New York, New York 10179
	 

	 	Attn: Mark Jackwicz
	 

	 	Tel: (212) 272-7278
	 

	 	Fax: (212) 272-8169
	 

	 	E-Mail: mjackwicz@bear.com
	 
	 	 
	If to Escrow Agent :

	 	The Bank of New York Trust Company, N.A.
	 

	 	2 North LaSalle Street, Suite 1020
	 

	 	MC DH-CH4
	 

	 	Chicago, Illinois 60602
	 

	 	Tel:     (312) 827-8540
	 

	 	Fax:     (312) 827-8562
	 

	 	Attention: David H. Hill
	 

	 	e-mail: dhhill@bankofny.com

ARTICLE XIII

MISCELLANEOUS PROVISIONS

			
	Section 13.1	 	Severability. If any term, covenant, condition or provision
hereof is unlawful, invalid, or unenforceable for any reason
whatsoever, and such illegality, invalidity, or
unenforceability does not affect the remaining parts of this
Agreement, then all such remaining parts hereof shall be
valid and enforceable and have full force and effect as if
the invalid or unenforceable part had not been included.

			
	Section 13.2	 	Rights Cumulative; Waivers. The rights of each of the
parties under this Agreement are cumulative and may be
exercised as often as any party considers appropriate under
the terms and conditions specifically set forth. The rights
of each of the parties hereunder shall not be capable of
being waived or varied otherwise than by an express waiver
or variation in writing. Any failure to exercise or any
delay in exercising any of such rights shall not operate as
a waiver or variation of that or any other such right. Any
defective or partial exercise of any of such rights shall
not preclude any other or further exercise of that or any
other such right. No act or course of conduct or negotiation
on the part of any party shall in any way preclude such
party from exercising any such right or constitute a
suspension or any variation of any such right.

			
	Section 13.3	 	Headings. The headings of the Articles and Sections
contained in this Agreement are inserted for convenience
only and shall not affect the meaning or interpretation of
this Agreement or any provision hereof.

			
	Section 13.4	 	Construction. Unless the context otherwise requires,
singular nouns and pronouns, when used herein, shall be
deemed to include the plural of such noun or pronoun and
pronouns of one gender shall be deemed to include the
equivalent pronoun of the other gender.

			
	Section 13.5	 	Binding Effect. Subject to Article X, this Agreement and
the terms, covenants, conditions, provisions, obligations,
undertakings, rights and benefits hereof, including the
Addenda, Exhibits and Schedules hereto, shall be binding
upon, and shall inure to the benefit of, the undersigned
parties and their respective heirs, executors,
administrators, representatives, successors, and assigns.

Page 17 of 19

 

			
	Section 13.6	 	Prior Understandings. This Agreement supersedes any and all
prior discussions and agreements between Seller and Buyer
with respect to the purchase of the Accounts and other
matters contained herein, and this Agreement contains the
sole and entire understanding between the parties hereto
with respect to the transactions contemplated herein.

			
	Section 13.7	 	Integrated Agreement. This Agreement and all Addenda,
Exhibits and Schedules hereto constitute the final complete
expression of the intent and understanding of Buyer and
Seller. This Agreement shall not be altered or modified
except by a subsequent writing, signed by Buyer and Seller.

			
	Section 13.8	 	Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall constitute one and the
same instrument, and either party hereto may execute this
Agreement by signing any such counterpart.

			
	Section 13.9	 	Non-Merger/Survival. Each and every covenant hereinabove
made by Buyer or Seller shall survive the delivery of the
Transfer Documents for the time period specified herein and
shall not merge into the Transfer Documents, but instead
shall be independently enforceable.

			
	Section 13.10	 	Governing Law/Choice of Forum. This Agreement shall be
construed, and the rights and obligations of Seller and
Buyer hereunder determined, in accordance with the law of
the State of New York, without giving effect to any choice
of law principles. Buyer unconditionally and irrevocably
consents to submit to the exclusive jurisdiction of any
competent Federal or state court in the Borough of Manhattan
in the State of New York for any action, suit or proceeding
arising out of or related to this Agreement (and Buyer
agrees not to commence any action, suit or proceeding
relating thereto except in such courts), and Buyer further
agrees that service of any process, summons, notice or
document by certified mail to Buyer’s address as set forth
herein shall be effective service of process for any action,
suit or proceeding brought against Buyer in such court. In
the event of litigation under this Agreement, the prevailing
party shall be entitled to an award of attorneys’ fees and
costs.

			
	Section 13.11	 	No Third-Party Beneficiaries. This Agreement is for the sole
and exclusive benefit of the parties hereto, and none of the
provisions of this Agreement shall be deemed to be for the
benefit of any other person or entity.

			
	Section 13.12	 	UCC Filings by Buyer. Immediately upon the sale of the
Accounts to Buyer from Seller on the applicable Closing Date
and at any time thereafter, Buyer may file, in each
appropriate office any Uniform Commercial Code financing
statement, and any amendments or any continuation statements
thereto, required to perfect the sale of Accounts by Seller
to Buyer.

Page 18 of 19

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

	 	 	 	 	 	 	 	 	 
	SPIEGEL ACCEPTANCE CORPORATION	 	 	 	eCAST SETTLEMENT CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Marvin E. Toland
	 	 	 	By:
	 	/s/ Timothy E. Stapleford
	 

	 	 
	 	 	 	 	 	 
	Its

	 	President
	 	 	 	Its
	 	President

Page 19 of 19exv10w50

 

Exhibit 10.50

AMENDMENT TO PURCHASE AND SALE AGREEMENT

     THIS AMENDMENT TO PURCHASE AND SALE AGREEMENT (this “Amendment”) is made as of January
9, 2008 by and between SPIEGEL ACCEPTANCE CORPORATION, a Delaware corporation with an
office and principal place of business c/o Eddie Bauer Holdings, Inc. at 10401 NE 8th
Street, Suite 500, Bellevue, Washington 98004 (“Seller”), and eCAST SETTLEMENT CORPORATION, a
Delaware corporation with an office and principal place of business at 383 Madison Avenue, New
York, New York 10179 (“Buyer”).

     W I T N E S S E T H:

     WHEREAS, Seller and Buyer entered into a certain Purchase and Sale Agreement on December 5,
2007 (the “Sale Agreement”), pursuant to which Seller transferred to Buyer and Buyer accepted from
Seller title to the Other Accounts which Seller was to identify at Closing;

     WHEREAS, Buyer did not receive such information until after Closing;

     WHEREAS, Buyer has agreed to retain title to the Other Accounts pursuant to the terms and
conditions contained herein; and

     WHEREAS, the Sale Agreement may be amended only in a written agreement executed by both
parties thereto.

     NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller and Buyer agree as follows:

     1. All capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to them in the Sale Agreement.

     2. Buyer hereby reaffirms that Buyer acquired from Seller, effective as of the Closing Date,
all of Seller’s right, title and interest in the Other Accounts.

     3. Notwithstanding anything contrary in the Agreement, it is agreed that all representations
and warranties contained in Article VIII shall apply to the Other Accounts, except for Section 8.5,
which is hereby amended and restated as follows:

			
	     Section 8.5	 	Compliance with Law. The Other Accounts have been originated,
serviced and collected in accordance with all applicable laws.

     4. Section 9.2 Agreement hereby is amended by deleting “or” after clause (iii), deleting the
period at the end of clause (iv) and inserting in lieu thereof a semicolon and “or”, and adding the
following new clause (v) immediately thereafter:

          “(v) any claim arising under or with respect to the Other Accounts from any
act or omission of Seller occurring prior to Closing.”

 

 

     5. Except as amended hereby, the terms and provisions of the Sale Agreement remain unmodified
and in full force and effect and are hereby in all respects ratified and confirmed. All references
to the Sale Agreement in any other document executed or delivered in connection therewith shall,
from and after the execution and delivery of this Amendment, be deemed a reference to the Sale
Agreement as amended by this Amendment, unless the context expressly requires otherwise.

     6. This Amendment (i) shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns and (ii) shall be governed by the laws of the State of New
York.

     7. This Amendment may be executed in any number of counterparts, each of which shall be an
original, but all of such counterparts together shall constitute one and the same instrument.

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, Seller and Purchaser have caused this Amendment to be executed and
delivered in its name by a duly authorized officer or representative.

	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	SPIEGEL ACCEPTANCE CORPORATION,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Marvin E. Toland
	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Marvin E. Toland	 	 
	 

	 	Title:
	 	President	 	 

	 	 	 	 	 	 	 
	 	 	BUYER:	 	 
	 
	 	 	 	 	 	 
	 	 	eCAST SETTLEMENT CORPORATION,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Timothy E. Stapleford
	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Timothy E. Stapleford	 	 
	 

	 	Title:
	 	 President

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