Document:

<PAGE>

                                                                    Exhibit 10.6

                                                                 August 23, 2001

AMERICREDIT FINANCIAL SERVICES
 OF CANADA LTD.

- and to -

AMERICREDIT CORP.

c/o AmeriCredit Corp.
801 Cherry Street
Suite 3900
Fort Worth, Texas
76107

Attention:  Mr. Preston A. Miller
            Executive Vice-President, Treasurer
---------------------------------------------------

Dear Sirs/Mesdames:

           Re:   Cancellation and Repayment of Existing Convertible Revolving
                 Term Credit Facility in Favour of AmeriCredit Financial
                 Services of Canada Ltd.
                 ---------------------------------------------------------------

     We refer to that certain letter loan agreement between AmeriCredit
Financial Services of Canada Ltd. (the "Borrower") and The Bank of Nova Scotia
                                        --------
(the "Bank") dated November 13, 1998, as amended to date (such agreement, as
      ----
amended, being the "Agreement"), whereby the Bank has made available to the
                    ---------
Borrower a convertible revolving term credit facility, currently with a
committed limit of $40,000,000 Cdn. (the "Credit") upon the terms and conditions
                                          ------
as described therein.  All capitalized terms used and not otherwise defined in
this letter shall have the respective meanings ascribed to them in the
Agreement.

     Further to discussions between the Borrower and the Bank, and at the mutual
consent of the parties, the Bank wishes to confirm that the Credit shall be and
is hereby cancelled, effective upon the later to occur of:

  (i)   the Bank's receipt of an original copy of this letter duly signed
        without amendment by the respective authorized officers of the Borrower
        and AmeriCredit Corp. (the "Parent Company");
                                    --------------

  (ii)  the completion date for the term loan financing to be established by
        Merrill Lynch Capital Canada Inc. ("Merrill Canada") in favour of the
                                            --------------
        Borrower subject to and in accordance with the terms and conditions of
        the credit agreement by and among the Borrower, Merrill Canada and
        AmeriCredit Financial Services, Inc. (a draft of which credit agreement
        has been delivered to the Bank); and

  (iii) the repayment on the date hereof of all indebtedness and liability of
        the Borrower outstanding under or in connection with the Credit, the
        Agreement and all other Loan Documents in the amounts specified in the
        following paragraph, provided that if any indebtedness and liability of
                             -------------
        the Borrower under or in connection with the Credit, the Agreement
        and/or any other Loan Document shall remain outstanding after the
        aforesaid date, then the Bank reserves its rights to issue a demand for
        the immediate payment or other
<PAGE>

TO: AMERICREDIT FINANCIAL SERVICES OF CANADA LTD.                         Page 2
--------------------------------------------------------------------------------

        appropriate discharge thereof.

  and provided that the borrowing privileges of the Borrower under the Credit
  shall nevertheless be deemed to be abolished effective at the close of
  business on August 22, 2001.

     As of the date of this letter, our records disclose that the principal
balance outstanding under the Credit is $38,235,524.10 Cdn. (comprised by Prime
Rate Advances exclusively), that accrued interest on that principal balance is
$184,692.35 and that accrued standby fee in the amount of $2,027.77 Cdn. is also
outstanding (the foregoing, being collectively the "Current Obligations").
                                                    -------------------
Interest shall continue to accrue on the outstanding principal balance of the
Current Obligations at the Bank's Prime Rate, and on any unpaid amounts due and
owing in respect of any of the Current Obligations at the same rate plus 2% per
annum, all in accordance with the applicable terms of the Agreement.

     Immediately upon and subject to the satisfaction of each of the conditions
specified in (i), (ii) and (iii) above, the parties further hereby agree that
the Agreement shall then terminate and be of no force or effect (subject only to
such rights of reimbursement, contribution and/or indemnity in favour of the
Bank as may be continuing if and to the extent that the survival of any such
rights is contemplated by the respective Loan Documents), and, further, that the
Bank's security interests in and to all of the collateral held by the Bank as
Security pursuant to the Agreement or any other Loan Document (the "BNS
                                                                    ---
Collateral") shall then be hereby terminated and released, including, without
----------
limitation, the Guarantee by the Parent Company. Following the effective date of
such termination and release of the Bank's security interests in respect of the
BNS Collateral, upon any request in writing by the  Borrower to the Bank to do
so, the Bank will promptly execute any and all such specific consents, releases,
discharges or other filings or instruments in connection with its release of its
security interests in the BNS Collateral as aforesaid, provided that the
Borrower shall pay all reasonable costs and expenses of the Bank incurred in
connection therewith or the taking of any related actions, including, without
limitation, all legal fees on a solicitor and client basis.

     The Borrower hereby irrevocably and unconditionally waives its right to
exercise its option to convert the Credit to a non-revolving term credit
facility, and agrees that all terms and conditions of the Agreement giving rise
to (or otherwise relating to) such conversion or the exercise of the option in
respect thereof shall be and are hereby deleted.  Any Conversion Notice
delivered by the Borrower to the Bank prior to the date hereof shall be hereby
rescinded at the mutual consent of the parties and, notwithstanding the delivery
of any such Conversion Notice prior to the date of this letter, the parties
agree that the Credit shall be deemed to be and to have remained at all times a
revolving term credit facility.

     The Borrower agrees that, it shall, at its own expense do, make, execute,
or deliver all such further acts, documents and things in connection with this
letter and the Agreement, or any other document or instrument executed in
connection herewith or therewith as the Bank may reasonably require from time to
time for the purpose of giving effect to the intentions of the parties expressed
herein, all immediately upon the request of the Bank.

     Please indicate your acceptance of the foregoing by signing the enclosed
duplicate copy of this letter and by then returning or arranging for the return
of the same to the Bank (at the address noted above on page 1 hereof).

     By its execution hereof, each of the undersigned acknowledges that it has
received and read a true copy of this letter and consents to all of the terms
hereof. This letter may be executed in counterparts, provided that each
counterpart bear an original signature of the applicable party, and each such
counterpart shall be deemed to be an original of this letter, but all such
counterparts shall together constitute one and the same instrument.
Notwithstanding anything stated to the contrary herein, the provisions of this
letter shall not be effective unless the Bank receives from the applicable
parties one or more duly signed and otherwise satisfactory original counterparts
of this letter by the reply date prescribed above, whereupon (subject to such
delivery and otherwise to the
<PAGE>

TO: AMERICREDIT FINANCIAL SERVICES OF CANADA LTD.                         Page 3
--------------------------------------------------------------------------------

satisfaction of all other conditions as specified herein) the terms of this
letter shall be deemed to be effective as and when provided herein.

                              Yours truly,

                              THE BANK OF NOVA SCOTIA

                              By: ____________________________
                                    M. Lawson
                                    Managing Director

                              By: ____________________________
                                    A. Sabada
                                    Director

AMERICREDIT FINANCIAL SERVICES
 OF CANADA LTD.  (as Borrower)

                              Acknowledged and accepted on this 23rd
                              day of  August, 2001.

By: _________________________
   Name: ___________________
   Title: ____________________

By: _________________________
   Name: ___________________
   Title: ____________________
<PAGE>

TO: AMERICREDIT FINANCIAL SERVICES OF CANADA LTD.                     Page 4
----------------------------------------------------------------------------

AMERICREDIT CORP.  (as a Guarantor)

                              Acknowledged and accepted on this 23rd
                              day of August, 2001.

By: _________________________
   Name: ___________________
   Title: ____________________

By: _________________________
   Name: ___________________
   Title: ____________________<PAGE>

                                                                    EXHIBIT 10.1

                       AMENDMENT NO. 1 TO EVERCOM, INC.
                       --------------------------------
       (FORMERLY KNOWN AS TALTON HOLDINGS, INC.) 1998 STOCK OPTION PLAN
       ----------------------------------------------------------------

     This Amendment to Evercom, Inc. 1998 Stock Option Plan (the "Plan") is
dated as of October 2nd, 2001.

                             W I T N E S S E T H :

     WHEREAS, the Plan was effective January 1, 1998;

     WHEREAS, all capitalized terms not otherwise defined herein shall have the
meanings ascribed to such terms in the Plan; and

     WHEREAS, the Company wishes to amend the Plan, as set forth below;

     NOW, THEREFORE, in consideration of the purpose contained in the Plan and
this Amendment and of the mutual benefits provided in the Plan and this
Amendment, the Company agrees as follows:

           1.  Section 3 of the Plan is hereby amended in its entirety to read
     as follows:

               SECTION 3.  Shares Subject to Plan.  The number of Shares which
               may be issued and sold pursuant to options granted under the Plan
               shall not exceed 5,000 Shares.  Such Shares shall be authorized
               and unissued Shares of the Company.  If any options granted under
               the Plan shall terminate or expire without having been exercised
               in full, the Shares not purchased under such options shall again
               be available for the purposes of the Plan.

           2.  Except as set forth above, all terms and conditions of the
     Plan shall continue in full force and effect until the termination and
     expiration of the Plan as provided in Section 13 of the Plan.

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

                       EVERCOM, INC.,
                       a Delaware Corporation

                       By:  /s/ Keith Kelson
                            -----------------------------
                            Keith Kelson
                            Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]