Document:

exv10w2

 

Exhibit 10.2

FIRST AMENDMENT TO

RIGHT OF FIRST REFUSAL AGREEMENT

AND

DUE DILIGENCE REIMBURSEMENT AGREEMENT

     THIS FIRST AMENDMENT (this “Amendment”) TO THAT RIGHT OF FIRST REFUSAL AGREEMENT AND
DUE DILIGENCE REIMBURSEMENT AGREEMENT (the “Frame Agreement”) is made and entered into this
day of February, 1999, by and between FIRSTCITY FINANCIAL CORPORATION, a Delaware corporation
(FCFC”), and FIRSTCITY SERVICING CORPORATION, a Texas corporation (“Servicing”), on
the one hand, and CARGILL FINANCIAL SERVICES CORPORATION, a Delaware corporation (“CFSC”),
and CFSC CAPITAL CORP. II, a Delaware corporation (“CCCII”), on the other hand.

RECITALS

     A. FCFC and CFSC Capital Corp. XXX (“CCC-30”), a wholly owned subsidiary of CFSC, have
entered into a Loan Agreement (as thereafter amended, modified, extended, supplemented or increased
from time to time, the “Loan Agreement”) dated as of even date herewith pursuant to which
CCC-30 agreed to make a loan (the “Loan”) to FCFC in an amount not to exceed $9,600,000.00.

     B. It is a condition precedent to CCC-30’s funding and advancement of the Loan that FCFC and
Servicing execute and deliver this Amendment.

     C. The parties to the Frame Agreement desire to extend the term of the Frame Agreement for an
additional year from January 1, 2000 to January 1, 2001 on the terms and conditions herein
contained.

     NOW, THEREFORE, in good consideration of the premises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties,
intending to be legally bound, agree as follows:

ARTICLE I

Definitions

     1.01 Capitalized terms used in this Amendment are defined in the Frame Agreement, as amended
hereby, unless otherwise stated.

ARTICLE II

Amendments

     2.01 Amendment to Definition of Harbor Financial Group. The definition of “Harbor
Financial Group” in Article 1 of the Frame Agreement is
hereby amended by replacing the definition in its entirety as follows: “Harbor Financial
Group” means FirstCity Financial Mortgage Corporation and its Affiliates.

 

 

     2.02 Amendment to Definition of Included Product. The definition of “Included
Product” in Article 1 of the Frame Agreement is hereby amended by replacing the definition in its
entirety as follows: “Included Product” means all assets of any type other than the Excluded
Product, including but not limited to any assets sourced through or in connection with Calibat;
provided that the assets or collateral securing the assets are located within the Geographic Area.

     2.03 Amendment to Definition of Termination Date. The definition of “Termination
Date” in Article 1 of the Frame Agreement is hereby amended by deleting the reference to the
“second anniversary” and substituting therefore the “third anniversary”. The effect of this
amendment is to define the “Termination Date” as occurring on January 1, 2001.

ARTICLE III

No Waiver

     3.01 Except as otherwise specifically provided for in this Amendment, nothing contained herein
shall be construed as a waiver by any party hereto of any covenant or provision of the Frame
Agreement, this Amendment, the Loan Agreement or of any other agreement between or among any of the
parties to the Frame Agreement; and any party’s failure at any time or times hereafter to require
strict performance by any other party of any provision thereof shall not waive, affect or diminish
any right of such party to thereafter demand strict compliance therewith.

ARTICLE IV

Ratifications, Representations and Warranties

     4.01 Ratifications. The terms and provisions set forth in this Amendment shall modify and
supersede all inconsistent terms and provisions set forth in the Frame Agreement, and, except as
expressly modified and superseded by this Amendment, the terms and provisions of the Frame
Agreement are ratified and confirmed and shall continue in full force and effect. The parties
hereto agree that the Frame Agreement, as amended hereby, shall continue to be legal, valid,
binding and enforceable in accordance with its terms.

     4.02 Representations and Warranties. Each party hereto hereby represents and warrants to each
other party hereto that (a) the execution, delivery and performance of this Amendment has been
authorized by all requisite corporate action on the part of such party and will not violate the
articles of incorporation or bylaws of such party; and (b) such party is in full compliance with
all covenants and agreements contained in the Frame Agreement, as amended hereby.

 

 

ARTICLE V

Miscellaneous Provisions

     5.01 Severability. Any provision of this Amendment held by a court of competent jurisdiction
to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and
the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

     5.02 Transferability of Agreement. This Amendment shall be binding upon the parties hereto
and their respective successors and permitted assigns.

     5.03 Counterparts. This Amendment may be executed in one or more counterparts, each of which
when so executed shall be deemed to be an original, but all of which when taken together shall
constitute one and the same instrument.

     5.04 Effect of Waiver. No consent or waiver, express or implied, by any party hereto to or
for any breach of or deviation from any covenant or condition by any other party hereto shall be
deemed a consent to or waiver of any other breach of the same or any other covenant, condition or
duty.

     5.05 Headings. The headings, captions, and arrangements used in this Amendment are for
convenience only and shall not affect the interpretation of this Amendment.

     5.06 Applicable Law. THIS AMENDMENT AND ALL OTHER AGREEMENTS EXECUTED PURSUANT HERETO SHALL
BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

     5.07 Final Agreement. THE FRAME AGREEMENT, AS AMENDED HEREBY, REPRESENTS THE ENTIRE
EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER THEREOF ON THE DATE THIS AMENDMENT IS
EXECUTED. THE FRAME AGREEMENT, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENT BETWEEN THE PARTIES. NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY
PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY THE PARTIES
HERETO.

[signature page follows]

 

 

     Executed as of the date first indicated above.

	 	 	 	 	 
	 	FIRSTCITY FINANCIAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Holmes 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	FIRSTCITY SERVICING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Holmes 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	CARGILL FINANCIAL SERVICES

CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey A. Parker 	 
	 	 	Title:  	Vice President 	 
	 
	 	CFSC CAPITAL CORP. II

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey A. Parker 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

     Executed as of the date first indicated above.

	 	 	 	 	 
	 	FIRSTCITY FINANCIAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Holmes 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	FIRSTCITY SERVICING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Holmes 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	CARGILL FINANCIAL SERVICES

CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey A. Parker 	 
	 	 	Title:  	Vice President 	 
	 
	 	CFSC CAPITAL CORP. II

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey A. Parker 	 
	 	 	Title:  	Vice Presidentexv10w3

 

EXHIBIT 10.3

SECOND AMENDMENT TO

RIGHT OF FIRST REFUSAL AGREEMENT

AND

DUE DILIGENCE REIMBURSEMENT AGREEMENT

     THIS SECOND AMENDMENT (this “Amendment”) TO THAT RIGHT OF FIRST REFUSAL AGREEMENT AND
DUE DILIGENCE REIMBURSEMENT AGREEMENT (the “Frame Agreement”) is made and entered into this
___day of April, 2000, by and between FIRSTCITY FINANCIAL CORPORATION, a Delaware corporation (
“FCFC”), and FIRSTCITY SERVICING CORPORATION, a Texas corporation (“Servicing”), on
the one hand, and CARGILL FINANCIAL SERVICES CORPORATION, a Delaware corporation (“CFSC”),
and CFSC CAPITAL CORP. II, a Delaware corporation (“CCCII”), on the other hand.

RECITALS

     A. FirstCity Holdings Corporation (“FCH”), a second tier subsidiary of FCFC, and CFSC Capital
Corp. XXX (“CCC-30”), a wholly owned subsidiary of CFSC, have entered into a Loan Agreement
(as thereafter amended, modified, extended, supplemented or increased from time to time, the
“Loan Agreement”) dated as of even date herewith pursuant to which CCC-30 agreed to make
advances from time to time (collectively, the “Loan”) to FCH in an amount not to exceed
$17,000,000.00.

     B. It is a condition precedent to CCC-30’s funding and advancement of the Loan that FCFC and
Servicing execute and deliver this Amendment.

     C. The parties to the Frame Agreement desire to extend the term of the Frame Agreement for an
additional year from January 1, 2001 to January 1, 2002 on the terms and conditions herein
contained.

     NOW, THEREFORE, in good consideration of the premises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties,
intending to be legally bound, agree as follows:

ARTICLE I

Definitions

     1.01 Capitalized terms used in this Amendment are defined in the Frame Agreement, as amended
hereby, unless otherwise stated.

 

 

ARTICLE II

Amendments

     2.01 Amendment to Definition of Termination Date. The definition of “Termination
Date” in Article 1 of the Frame Agreement is hereby amended by deleting the reference to the “
third anniversary” and substituting therefor the “ fourth anniversary”. The effect of this
amendment is to define the “Termination Date” as occurring on January 1, 2002.

     2.02 Amendment to Definition of Geographic Area. The definition of “Geographic Area”
in Article 1 of the Frame Agreement is hereby amended by deleting that definition in its entirety
and replacing it with the following definition:

	 	 	 	“Geographic Area” means (i) on and prior to December 31, 2000, the United States,
Canada, Mexico, the Caribbean, Central America and South America, and (ii) on and
after January 1, 2001, the United States, Canada and Mexico.

     The effect of this amendment will be to decrease the defined Geographic Area on and after
January 1, 2001.

     2.03 Amendment to Definition of Monthly Retainer. The definition of “Monthly
Retainer” in Article 1 of the Frame Agreement is hereby amended by deleting that definition in its
entirety and replacing it with the following definition:

	 	 	 	“Monthly Retainer” means a monthly payment from CFSC to Servicing as compensation
for the exclusivity provisions of this Agreement, with the gross amount of such
Monthly Retainer being (i) on and prior to December 31, 2000, $20,000.00 per
month, and (ii) on and after January 1, 2001, $25,000.00 per month; provided,
however, that the gross amount of the Monthly Retainer paid to Servicing shall be
adjusted to reflect Cargill’s contribution to deal flow as provided for in Article
4 of this Agreement.

The effect of this amendment will be to increase the dollar amount of the defined Monthly Retainer
on and after January 1, 2001.

ARTICLE III

No Waiver

     3.01 Except as otherwise specifically provided for in this Amendment, nothing contained herein
shall be construed as a waiver by any party hereto of any covenant or provision of the Frame
Agreement, this Amendment, the Loan Agreement or of any other agreement between or among any of the
parties to the Frame Agreement; and any party’s failure at any time or times hereafter to require
strict performance by any other party of any provision thereof shall not waive, affect or diminish
any right of such party to thereafter demand strict compliance therewith.

ARTICLE IV

Ratifications, Representations and Warranties

     4.01 Ratifications. The terms and provisions set forth in this Amendment shall modify and
supersede all inconsistent terms and provisions set forth in the Frame Agreement, and, except as
expressly modified and superseded by this Amendment, the terms and provisions of the Frame
Agreement are ratified and confirmed and shall continue in full force and effect. The parties
hereto agree that the Frame Agreement, as amended hereby, shall continue to be legal, valid,
binding and enforceable in accordance with its terms.

     4.02 Representations and Warranties. Each party hereto hereby represents and warrants to each
other party hereto that (a) the execution, delivery and performance of this Amendment has been
authorized by all requisite corporate action on the part of such party and will not violate the
articles of incorporation or bylaws of such party; and (b) such party is in full compliance with
all covenants and agreements contained in the Frame Agreement, as amended hereby.

ARTICLE V

Miscellaneous Provisions

     5.01 Severability. Any provision of this Amendment held by a court of competent jurisdiction
to be invalid or unenforceable shall not impair or invalidate

2

 

the remainder of this Amendment and the effect thereof shall be confined to the provision so held
to be invalid or unenforceable.

     5.02 Transferability of Agreement. This Amendment shall be binding upon the parties hereto
and their respective successors and permitted assigns.

     5.03 Counterparts. This Amendment may be executed in one or more counterparts, each of which
when so executed shall be deemed to be an original, but all of which when taken together shall
constitute one and the same instrument.

     5.04 Effect of Waiver. No consent or waiver, express or implied, by any party hereto to or
for any breach of or deviation from any covenant or condition by any other party hereto shall be
deemed a consent to or waiver of any other breach of the same or any other covenant, condition or
duty.

     5.05 Headings. The headings, captions, and arrangements used in this Amendment are for
convenience only and shall not affect the interpretation of this Amendment.

     5.06 Applicable Law. THIS AMENDMENT AND ALL OTHER AGREEMENTS EXECUTED PURSUANT HERETO SHALL
BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

     5.07 Final Agreement. THE FRAME AGREEMENT, AS AMENDED HEREBY, REPRESENTS THE ENTIRE
EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER THEREOF ON THE DATE THIS AMENDMENT IS
EXECUTED. THE FRAME AGREEMENT, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENT BETWEEN THE PARTIES. NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY
PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY THE PARTIES
HERETO.

[Signature Page Follows]

3

 

          Executed as of the date first indicated above.

	 	 	 	 	 
	 	 	FIRSTCITY FINANCIAL CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	  James C. Holmes
	 

	 	Title:
	 	  Senior Vice President
	 
	 	 	 	 
	 	 	FIRSTCITY SERVICING CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	  James C. Holmes
	 

	 	Title:
	 	  Senior Vice President
	 
	 	 	 	 
	 	 	CARGILL FINANCIAL
SERVICES CORPORATION
	 
	 	 	 	 
	 

	 	BY:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	  E. Gerald O’Brien II
	 

	 	Title:
	 	  Vice President
	 
	 	 	 	 
	 	 	CFSC CAPITAL CORP. II
	 
	 	 	 	 
	 

	 	BY:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	  E. Gerald O’Brien II
	 

	 	Title:
	 	  Vice President

Signature Page to Second Amendment to Right of First Refusal Agreement and Due Diligence

Reimbursement Agreement

4

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