Document:

EX-4.12

 Exhibit 4.12 
 Dated February 19, 2014 
 FIRST SUPPLEMENTAL INDENTURE

 TO THE 
 INDENTURE 
 DATED AS OF JULY 25, 2013 

£150,000,000 10.5% SENIOR SECURED NOTES DUE 2020 
 between 
 MARLIN INTERMEDIATE HOLDINGS PLC 

as Issuer 

MARLIN FINANCIAL INTERMEDIATE II LIMITED 
 as Company 
 CABOT FINANCIAL LIMITED 

as CFL 
 THE
GUARANTORS PARTY HERETO 
 and 
 THE BANK OF NEW YORK MELLON, LONDON BRANCH 
 as Trustee 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 Section 1.
	 	Capitalized Terms	  	 	2	  
			
	 Section 2.
	 	Effectiveness; Conditions Precedent	  	 	2	  
			
	 Section 3.
	 	Waivers	  	 	2	  
			
	 Section 4.
	 	Change of Control Amendments	  	 	3	  
			
	 Section 5.
	 	Structural Amendments	  	 	4	  
			
	 Section 6.
	 	Conforming Amendments	  	 	6	  
			
	 Section 7.
	 	Global Notes	  	 	13	  
			
	 Section 8.
	 	Ratification and Effect	  	 	13	  
			
	 Section 9.
	 	Governing Law	  	 	14	  
			
	 Section 10.
	 	Agent for Service; Submission to Jurisdiction; Waiver of Immunities	  	 	14	  
			
	 Section 11.
	 	Counterpart Originals	  	 	14	  
			
	 Section 12.
	 	The Trustee	  	 	14	  
			
	 Section 13.
	 	Effect of Headings	  	 	14	  
			
	 Section 14.
	 	Conflicts	  	 	14	  
			
	 Section 15.
	 	Entire Agreement	  	 	14	  
			
	 Section 16.
	 	Successors	  	 	15	  

  
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 This FIRST SUPPLEMENTAL INDENTURE, dated as of February 19, 2014 (the
“Supplemental Indenture”), by and among MARLIN INTERMEDIATE HOLDINGS PLC, a public limited company incorporated in England and Wales with its registered office at Marlin House, 16-22 Grafton Road, Worthing, West Sussex, United
Kingdom, BN11 1QP (the “Issuer”), MARLIN FINANCIAL INTERMEDIATE II LIMITED, a private limited company organized under the laws of England and Wales (the “Company”), CABOT FINANCIAL LIMITED, a private limited company
incorporated in England and Wales with its registered office at 1 King’s Hill Avenue, King’s Hill, West Malling, Kent, ME19 4UA (the “CFL”), the Guarantors (as defined in the Indenture referred to herein) and THE BANK
OF NEW YORK MELLON, LONDON BRANCH, as trustee (the “Trustee”). 
 RECITALS 

WHEREAS, the Issuer, MARLIN FINANCIAL GROUP LIMITED, a private limited company organized under the laws of England and Wales
(“MFG”) , MARLIN FINANCIAL INTERMEDIATE LIMITED, a private limited company organized under the laws of England and Wales, the Company, the subsidiary guarantors named therein, the Trustee, THE BANK OF NEW YORK MELLON, LONDON BRANCH,
as principal paying agent and transfer agent (the “Principal Paying Agent” and the “Transfer Agent,” respectively), THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A., as registrar (the “Registrar”) and
ROYAL BANK OF SCOTLAND PLC, as security agent (the “Security Agent”) have executed and delivered to the Trustee an indenture dated as of July 25, 2013 (the “Indenture”), providing for the issuance of an
aggregate principal amount of £150,000,000 10.5% Senior Secured Notes due 2020 (the “Notes”). 
 WHEREAS,
pursuant to the first paragraph of Section 9.02 of the Indenture, the Issuer, the Guarantors and the Trustee may amend or supplement certain provisions of the Note Documents (as defined in the Indenture) with the consent of the Holders of at
least a majority in principal amount of the Notes then outstanding and certain Defaults or Events of Default (each as defined in the Indenture) or compliance with certain provisions of the Note Documents may be waived with the consent of the Holders
of at least a majority in principal amount of the Notes then outstanding. 
 WHEREAS, on February 10, 2014, Cabot Financial
Holdings Group Limited consummated the purchase (the “Acquisition”) of all outstanding shares of MFG pursuant to a share sale and purchase agreement dated February 8, 2014. 

WHEREAS, in connection with the Acquisition, upon the terms and subject to the conditions set forth in its consent solicitation
statement, dated as of February 12, 2014 (the “Consent Solicitation Statement”), the Issuer has solicited consents of the Holders of Notes to the Proposed Amendments and Waivers (as defined in the Consent Solicitation
Statement), which, for the avoidance of doubt do not impair or affect a Holder’s right to receive principal, premium, if any, or interest on the Note held by such Holder in accordance with Section 6.07 of the Indenture), and the Issuer has
now obtained such consents from the Holders of at least a majority in principal amount of the outstanding Notes, and as such, this Supplemental Indenture, the amendments and waivers set forth herein and the Trustee’s entry into this
Supplemental Indenture are authorized pursuant to the first paragraph of Section 9.02 of the Indenture. 
 WHEREAS, Lucid
Issuer Services Limited, as tabulation agent under the Consent Solicitation Statement, has advised the Issuer and the Trustee that it has received validly executed consents to the Proposed Amendments and Waivers from Holders representing a majority
in aggregate principal amount of the outstanding Notes on or prior to the date hereof and that those consents have not been revoked. 

 WHEREAS, pursuant to the first and second paragraphs of Section 9.02 and
Section 9.03 of the Indenture, the execution and delivery of this Supplemental Indenture has been duly authorized by the parties hereto, and all other acts necessary to make this Supplemental Indenture a valid and binding supplement to the
Indenture effectively amending the Indenture as set forth herein have been duly taken. 
 AGREEMENT 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration the receipt of which is hereby
acknowledged, the Company, the Issuer, CFL, the Guarantors and the Trustee each mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 
 Section 1. Capitalized Terms. 
 Any capitalized term used herein and
not otherwise defined herein shall have the meaning assigned to such term in the Indenture. 
 Section 2. Effectiveness; Conditions
Precedent. 
 (a) The Issuer represents and warrants that each of the conditions precedent to the amendment and supplement of
the Indenture (including such conditions pursuant to Section 7.02 and Section 9.02 of the Indenture) have been satisfied in all respects. Pursuant to Section 9.02 of the Indenture, the Holders of at least a majority in principal
amount of the outstanding Notes voting as a single class have authorized and directed the Trustee to execute this Supplemental Indenture. The Issuer, the Company, CFL, the Guarantors and the Trustee are on this date executing this Supplemental
Indenture which will become effective on the date hereof upon execution by each party hereto (the “Effective Date”). 
 (b) Subject to Section 2 (d) below, the waivers set forth in Section 3 hereof and the amendments set forth in Section 4 hereof shall become operative in respect of all of the Notes on
the Effective Date, without any further action by the parties hereto. 
 (c) The amendments set forth in Sections 5 and 6
hereof shall become operative in respect of all of the Notes on March 24, 2014 or an earlier date to be specified in writing by the Issuer to the Trustee (the “Structural Amendments Operative Date”). 

(d) Notwithstanding anything to the contrary in this Supplemental Indenture, all of the amendments and waivers set forth in Sections 3 to
Section 6 (both inclusive) hereof will cease to be operative if the Issuer or an agent on its behalf does not pay the Consent Payment (as defined in the Consent Solicitation Statement) to Euroclear and Clearstream on behalf of the Holders on
the Consent Payment Date (as defined in the Consent Solicitation Statement) as contemplated by the Consent Solicitation Statement. 

Section 3. Waivers. 

Pursuant to Section 9.02 of the Indenture and subject to Section 2(d) hereof, all Holders and every subsequent Holder of the
Notes shall be bound by the following waivers under the Indenture and the Notes, such waivers to be operative at and from the Effective Date: 
 (a) Section 4.15 of the Indenture with respect to the requirement that the Issuer make a Change of Control Offer in connection with the Acquisition is hereby waived. 

  
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 (b) The relevant provisions of Article VI of the Indenture in connection with any and all
defaults and events of default that might have arisen in connection with the Acquisition and any related transactions are hereby waived. 

Section 4. Change of Control Amendments. 
 Pursuant to Section 9.02 of the Indenture and subject to Sections 2(d) hereof, the Indenture is hereby amended, such amendments to be operative at and from the Effective Date, as follows: 

(a) The following definitions in Section 1.01 of the Indenture are hereby amended in their entirety to read as follows: 

“”Permitted Holders” means, collectively, (1) any one or more Persons whose beneficial ownership constitutes or
results in a Change of Control in respect of which a Change of Control Offer is made in accordance with the requirements of this Indenture, (2) other than for purposes of Section 4.11(b)(12) in connection with the initial investment of any
such Person in the Company and its Restricted Subsidiaries, any one or more Persons whose beneficial ownership would have constituted or resulted in a Change of Control but for the fact that such Change of Control is also a Specified Change of
Control Event, (3) Senior Management and Related Persons, (4) J.C. Flowers and any funds controlled or advised by J.C. Flowers and any Affiliates or Related Persons thereof, (5) any Person who is acting as an underwriter in connection
with a public or private offering of Capital Stock of any Parent or the Company, acting in such capacity, and (6) Encore Capital and any Affiliates or Related Persons thereof. Any person or group that includes a Permitted Holder shall also be
deemed to be a Permitted Holder, provided that Permitted Holders as defined in clauses (1), (3), (4) and (6) above retain exclusive beneficial ownership and control of at least 50.1% of the total voting power of the Voting Stock of the
Company beneficially owned by any group that becomes a Permitted Holder at any time as a result of the application of this sentence (without giving effect to the existence of such group or any other group).” 

“”Related Person” with respect to any Person, means: 

(1) any controlling equity holder or Subsidiary of such Person, including for the avoidance of doubt, with respect to the Company, Encore
Capital; or 
 (2) in the case of an individual, any spouse, family member or relative of such individual, any trust or
partnership for the benefit of one or more of such individuals and any such spouse, family member or relative, or the estate, executor, administrator, committee or beneficiaries of any thereof; or 

(3) any trust, corporation, partnership or other Person for which one or more of the Permitted Holders and other Related Persons of any
thereof constitute the beneficiaries, stockholders, partners or owners thereof, or Persons beneficially holding in the aggregate a majority (or more) controlling interest therein; or 

(4) in the case of J.C. Flowers, any investment fund or vehicle managed, sponsored or advised by such Person or any successor thereto, or
by any Affiliate of such Person or any such successor.” 

  
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 (b) Section 1.01 of the Indenture is hereby amended to add the following terms and
their corresponding definitions to read as follows: 
 “”Encore Capital” means Encore Capital Group, Inc.
and any successor thereto (by merger, consolidation, transfer, conversion of legal form or otherwise).” 

“”J.C. Flowers” means J.C. Flowers & Co. LLC and any successor thereto (by merger, consolidation, transfer,
conversion of legal form or otherwise).” 
 (c) Section 1.01 of the Indenture is hereby amended to delete the following
terms and their corresponding definitions in their entirety: 
 “”Duke Street” means Duke Street LLP.”

 “”Equity Investors” means Duke Street, funds managed by Duke Street or any of its or their Affiliates,
or any co-investment vehicle managed by Duke Street or any of its or their Affiliates.” 
 Section 5. Structural Amendments.

 Pursuant to Section 9.02 of the Indenture and subject to Sections 2(c) and 2(d) hereof, the Indenture will hereby be
amended, such amendments to be operative at and from the Structural Amendments Operative Date, as follows: 
 (a) The following
definition in Section 1.01 of the Indenture will hereby be amended in its entirety to read as follows: 

“”Company” means Cabot Financial Limited (as the deemed successor to Marlin Financial Intermediate II Limited
hereunder), together with its successors and assigns.” 
 (b) Section 1.01 of the Indenture will hereby be amended to
add the following terms and their corresponding definitions to read as follows: 
 “”Cabot 2020
Transactions” means the issuance of the senior secured notes under the Cabot Indenture dated August 2, 2013 and the use of proceeds thereof to pay transaction fees and expenses, repay amounts outstanding under the Cabot Senior
Facilities Agreement and to make a dividend payment in order to repay a portion of certain existing shareholder loans.” 

“”Cabot Indentures” means (x) the indenture dated August 2, 2013 entered into between, among others, Cabot
Financial (Luxembourg) S.A., as issuer, certain guarantors named therein, Citibank, N.A., London Branch, as trustee and J.P. Morgan Europe Limited, as security agent and (y) the indenture dated September 20, 2012 entered into between,
among others, Cabot Financial (Luxembourg) S.A., as issuer, certain guarantors named therein, Citibank, N.A., London Branch, as trustee and J.P. Morgan Europe Limited, as security agent, in each case as restated, amended, supplemented or otherwise
modified.” 

  
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 “”Cabot Intercreditor Agreement” means the intercreditor agreement
dated September 20, 2012 entered into by, among others, the Company, as parent, Cabot Financial (Luxembourg) S.A., certain original debtors named therein, J.P. Morgan Europe Limited, as RCF agent and security agent, and Citibank N.A., London
Branch, as senior note trustee and any restatement, amendment, supplement or other modification thereof.” 

“”Cabot Notes” means the notes issued under the Cabot Indentures.” 

“”Cabot Security Documents” means the security documents relating to the Cabot Notes.” 

(c) Section 4.06(a) of the Indenture will hereby be amended in its entirety and replaced with the following: 

“(a) The Issuer will not engage in any business or undertake any other activity, own any assets or incur any liabilities other than:
(i) ownership of the Capital Stock of its Subsidiaries, debit and credit balances with Restricted Subsidiaries and other minimal credit and cash balances in bank accounts and related Investments in Cash Equivalents, Temporary Cash Investments
or Investment Grade Securities; (ii) the provision of administration services (including the on-lending of monies to Restricted Subsidiaries in the manner described in (a) above) and management services to their respective Subsidiaries of
a type customarily provided by a holding company to its Subsidiaries and the ownership of assets necessary to provide such services; (iii) the entry into and performance of its obligations (and incurrence of liabilities) under (or repurchase or
acquisition by means of a tender offer, open market purchases or otherwise, of) the Notes, the Cabot Notes, this Indenture, the Cabot Indentures, any Credit Facility, any Hedging Obligations, any Public Debt, other Indebtedness (including any
Additional Notes) or any other obligations, in each case permitted by this Indenture, the Cabot Indentures, any Security Document or Cabot Security Document to which it is a party, the Cabot Intercreditor Agreement, and the Intercreditor Agreement;
(iv) the making of any payments or other distributions of the types specified in Section 4.07(a)(1), Section 4.07(a)(2) and Section 4.07(a)(3) in compliance with Section 4.07 and the making of any Permitted Investments of
the types specified under clauses (6) and (16) of the definition thereof; (v) reorganizations for bona fide corporate purposes in compliance with Section 5.01; provided that any successor entity resulting from any such
reorganization is subject to the covenant described in this Section 4.06; (vi) the granting of security interests in accordance with the terms of the Notes, the Cabot Notes, this Indenture, the Cabot Indentures, any Credit Facility, any
Hedging Obligations, any Public Debt, other Indebtedness or any other obligations, in each case permitted by this Indenture, the Cabot Indentures, any Security Document or Cabot Security Document to which it is a party, the Cabot Intercreditor
Agreement, and the Intercreditor Agreement; (vii) professional fees and administration costs in the ordinary course of business as a holding company; (viii) related or reasonably incidental to the establishment or maintenance of their or
their respective Subsidiaries’ corporate existence; (ix) any liabilities under any purchase agreement or any other document entered into in connection with the issuance of the Notes or any other Indebtedness permitted under this Indenture
(including any Additional Notes); and (x) any other activities which are not specifically listed above and (i) which are ancillary to or related to those listed above or (ii) which are de minimis in nature. The Issuer will not
undertake any transaction that will require the Issuer to register as an “investment company” or an entity “controlled by an investment company” as defined in the US Investment Company Act of 1940, as amended, and the rules and
regulations thereunder.” 

  
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 (d) Section 4.07(b) of the Indenture will hereby be amended by the insertion of the
following paragraph (16) after paragraph (15) as follows: 
 “(16) any payments associated with the Cabot 2020
Transactions.” 
 Section 6. Conforming Amendments. 
 Pursuant to Section 9.02 of the Indenture and subject to Sections 2(c) and 2(d) hereof, the the Indenture will hereby be amended, such amendments to be operative at and from the Structural Amendments
Operative Date, as follows: 
 (a) Section 1.01 of the Indenture will hereby be amended to add the following terms and their
corresponding definitions to read as follows: 
 “”Cabot Senior Facilities Agreement” means the senior
secured revolving credit facility agreement dated September 20, 2012, among the Company, J.P. Morgan Europe Limited, as security agent and facility agent, and the other parties named therein, as amended, amended and restated, supplemented,
refinanced, replaced or otherwise modified from time to time.” 
 “”CCM” means Cabot Credit Management
Limited, a limited liability company organized under the laws of England and Wales, together with its successors and assigns.” 
 (b) Section 1.01 of the Indenture will hereby be amended to delete the following term and its corresponding definition in its entirety: 

“”New Revolving Credit Facility” means the senior secured revolving credit facility agreement dated on or around the
Issue Date among the Company, the Security Agent, Investec Bank plc as facility agent and the other parties named therein, as amended, supplemented, refinanced, replaced or otherwise modified from time to time.” 

(c) The definition of “Equity Offering” in Section 1.01 of the Indenture will hereby be amended in its entirety to read as
follows: 
 “”Equity Offering” means (x) a public sale of Capital Stock of the Company (other than
Disqualified Stock or Designated Preference Shares and other than an Excluded Contribution) other than offerings registered on Form S-8 (or any successor form) under the Securities Act or any similar offering in other jurisdictions, or (y) the
public sale of Capital Stock or other securities of the Parent, the proceeds of which are contributed to the equity (other than through the issuance of Disqualified Stock or Designated Preference Shares or through an Excluded Contribution) of the
Company or any of its Restricted Subsidiaries.” 
 (d) All references in the Indenture to “New Revolving Credit
Facility” or “New Revolving Credit Facility Agreement” will hereby be replaced with “Cabot Senior Facilities Agreement”. 

  
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 (e) The following definitions in Section 1.01 of the Indenture will hereby be amended
in their entirety to read as follows: 
 “”Priority Hedging Obligations” means designated Hedging
Obligations in an aggregate amount outstanding at any time of up to £10 million.” 
 (f) Clause (7) of the
definition of “Consolidated EBITDA” in Section 1.01 of the Indenture will hereby be amended in its entirety to read as follows: 
 “(7) the amount of management, monitoring, consulting, employment and advisory fees and related expenses paid in such period to the Permitted Holders to the extent permitted by Section 4.11;
and” 
 (g) The last paragraph of the definition of “Consolidated Leverage Ratio” in Section 1.01 of the
Indenture will hereby be amended in its entirety and replaced with the following: 
 “For the purposes of this definition
and the definitions of Consolidated EBITDA, Consolidated Income Taxes, Consolidated Interest Expense, Consolidated Net Income and Fixed Charge Coverage Ratio for the Company and its Restricted Subsidiaries, (a) calculations will be as
determined in good faith by a responsible financial or accounting officer of the Company (including in respect of synergies and cost savings) and (b) in determining the amount of Indebtedness outstanding on any date of determination, pro forma
effect shall be given to any Incurrence, repayment, repurchase, defeasance or other acquisition, retirement or discharge of Indebtedness as if such transaction had occurred on the first day of the relevant period.” 

(h) The last paragraph of the definition of “Fixed Charge Coverage Ratio” in Section 1.01 of the Indenture will hereby be
amended in its entirety and replaced with the following: 
 “For purposes of this definition, whenever pro forma effect is
to be given to a transaction, the pro forma calculations shall be made in good faith by a responsible financial or chief accounting officer of the Company (including synergies and cost savings). If any Indebtedness bears a floating rate of interest
and is being given pro forma effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the Fixed Charge Coverage Ratio Calculation Date had been the applicable rate for the entire period (taking into account any
Hedging Obligations applicable to such Indebtedness). Interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting officer of the Company to be the rate of
interest implicit in such Capitalized Lease Obligation in accordance with GAAP. For purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed
based upon the average daily balance of such Indebtedness during the applicable period except as set forth in the first paragraph of this definition. Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor
of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall be determined to have been based upon the rate actually chosen, or if none, then based upon such optional rate chosen as the Company may designate.”

  
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 (i) Clause (5) of the definition of “Parent Expenses” in Section 1.01 of
the Indenture will hereby be amended in its entirety and replaced with the following: 
 “(5) other fees, expenses and costs
relating directly or indirectly to activities of the Company and its Subsidiaries in an amount not to exceed £1.5 million in any fiscal year;” 
 (j) Clause (C) of the definition of “Permitted Collateral Liens” in Section 1.01 of the Indenture will hereby be amended in its entirety and replaced with the following: 

“(C) Liens on the Collateral securing Indebtedness incurred under Section 4.09(a); provided that, in the case of this clause
(C), (x) after giving effect to such incurrence on that date, the Secured LTV Ratio is less than 0.625 and (y) any such Lien ranks equal to (including with respect to the application of proceeds from any realization or enforcement of the
Collateral in accordance with the Intercreditor Agreement) all other Liens on such Collateral securing the Notes and the Note Guarantees.” 
 (k) The definition of “Permitted Purchase Obligations” in Section 1.01 of the Indenture will hereby be amended in its entirety and replaced with the following: 

“”Permitted Purchase Obligations” means any Indebtedness Incurred by a Permitted Purchase Obligations SPV to finance
or refinance the acquisition of Portfolio Assets purchased by such Permitted Purchase Obligations SPV, whether directly or through the acquisition of the Capital Stock of any Person owning such Portfolio, Assets or otherwise, in an aggregate
principal amount not exceeding at the time of the incurrence of such Permitted Purchase Obligations, together with any other Indebtedness incurred pursuant to Section 4.09(b)(12) and then outstanding, 15.0% of the ERC of the Company and its
Restricted Subsidiaries, calculated in good faith on a pro forma basis by management as of the date of purchase of such Portfolio Assets, provided that: 
 (1) except for the granting of a Lien described in clause (26) of the definition of “Permitted Liens,” no portion of any Permitted Purchase Obligations or any other obligations (contingent
or otherwise) of the applicable Permitted Purchase Obligations SPV (i) is guaranteed by the Company or any other Restricted Subsidiary, (ii) is recourse to or obligates the Company or any other Restricted Subsidiary in any way, or
(iii) subjects any property or asset of the Company or any other Restricted Subsidiary, directly or indirectly, contingently or otherwise, to the satisfaction thereof; 
 (2) neither the Company nor any other Restricted Subsidiary has any obligation to maintain or preserve the applicable Permitted Purchase Obligations SPV’s financial condition or cause such entity to
achieve certain levels of operating results; and 
 (3) such Permitted Purchase Obligation is secured (if at all) only over the
assets of, and Capital Stock of, the relevant Permitted Purchase Obligations SPV.” 
 (l) The definition of
“Refinancing Indebtedness” in Section 1.01 of the Indenture will hereby be amended in its entirety and replaced with the following: 
 “”Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance, replace, exchange, renew, repay or extend (including pursuant to any defeasance or discharge
mechanism) any Indebtedness existing on the date of this Indenture or Incurred in compliance with this Indenture (including Indebtedness of the Company that refinances Indebtedness of any Restricted Subsidiary and Indebtedness of any Restricted
Subsidiary that refinances Indebtedness of the Company or another Restricted Subsidiary) including Indebtedness that refinances Refinancing Indebtedness; provided, however, that: 

  
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 (1) if the Indebtedness being refinanced constitutes Subordinated Indebtedness, the
Refinancing Indebtedness has a final Stated Maturity at the time such Refinancing Indebtedness is Incurred that is the same as or later than the final Stated Maturity of the Indebtedness being refinanced or, if shorter, the Notes; 

(2) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with original issue discount, an aggregate
issue price) that is equal to or less than the sum of the aggregate principal amount (or if issued with original issue discount, the aggregate accreted value) then outstanding of the Indebtedness being refinanced (plus, without duplication, any
additional Indebtedness Incurred to pay interest or premiums required by the instruments governing such existing Indebtedness and costs, expenses and fees Incurred in connection therewith); and 

(3) if the Indebtedness being refinanced is expressly subordinated to the Notes, such Refinancing Indebtedness is subordinated to the
Notes on terms at least as favorable to the Holders as those contained in the documentation governing the Indebtedness being refinanced, provided, however, that Refinancing Indebtedness shall not include Indebtedness of the Company or a Restricted
Subsidiary that refinances Indebtedness of an Unrestricted Subsidiary. 
 Refinancing Indebtedness in respect of any Credit
Facility or any other Indebtedness may be Incurred within 120 days after the termination, discharge or repayment of any such Credit Facility or other Indebtedness.” 
 (m) Sections 4.03(a)(1) of the Indenture will hereby be amended in its entirety and replaced with the following: 
 “(1) within 120 days after the end of the Company’s fiscal year beginning with the first fiscal year ending after the Issue Date, annual reports containing, to the extent applicable the
following information: (a) audited consolidated balance sheets of the Company or its predecessor as of the end of the two most recent fiscal years and audited consolidated income statements and statements of cash flow of the Company or its
predecessor for the three most recent fiscal years, including complete footnotes to such financial statements and the report of the independent auditors on the financial statements; (b) unaudited pro forma income statement information and
balance sheet information of the Company (which, for the avoidance of doubt, shall not include the provision of a full income statement or balance sheet to the extent not reasonably available), together with explanatory footnotes, for any material
acquisitions, dispositions or recapitalizations that have occurred since the beginning of the most recently completed fiscal year; (c) an operating and financial review of the audited financial statements, including a discussion of the results
of operations, financial condition, EBITDA (or equivalent measure), ERC and liquidity and capital resources of the Company, and a discussion of material commitments and contingencies and critical accounting policies, which is similar in scope to the
information provided in the Offering Memorandum; (d) description of the business, management and shareholders of the Company, all material affiliate transactions and a description of all material contractual arrangements, including material
debt instruments; and (e) a description of material risk factors and material recent developments;” 

  
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 (n) Section 4.03(b) of the Indenture will hereby be amended in its entirety and
replaced with the following: 
 “(b) All financial statements and pro forma financial information shall be prepared
in accordance with GAAP in effect on the date of such report or financial statement (or otherwise on the basis of GAAP then in effect) and on a consistent basis for the periods presented; provided, however, that the reports set forth
in Sections 4.03(a)(1), 4.03(a)(2) and 4.03(a)(3) may in the event of a change in applicable GAAP, present earlier periods on a basis that applied to such periods. Except as provided for below, no report needs to include separate financial
statements for any Subsidiaries of the Company. At its election, the Company may also include financial statements of CCM in lieu of those for the Company; provided that if the financial statements of CCM are included in such report, a
reasonably detailed description of material differences between the financial statements of CCM and the Company shall be included for any period after the Issue Date. 
 (o) Section 4.07(b)(11) of the Indenture will hereby be amended in its entirety and replaced with the following: 
 “(11) so long as no Default or Event of Default has occurred and is continuing (or would result from), Restricted Payments (including loans or advances) in an aggregate amount outstanding at any time
not to exceed £15.0 million;” 
 (p) Section 4.10(b) of the Indenture will hereby be amended in its entirety and
replaced with the following: 
 “(b) Any Net Available Cash from Asset Dispositions that is not applied or invested or
committed to be applied or invested as provided in the preceding paragraph, or offered to be applied in accordance with Section 4.10(a)(3)(A)(ii) above, will be deemed to constitute “Excess Proceeds.” On the 366th day after an Asset
Disposition, or at such earlier date that the Company elects, if the aggregate amount of Excess Proceeds exceeds £10.0 million (or equivalent thereof), the Issuer shall be required to make an offer (“Asset Disposition
Offer”) to all Holders and, to the extent the Issuer elects, to all holders of other outstanding Pari Passu Indebtedness, to purchase the maximum principal amount of Notes and any such Pari Passu Indebtedness to which the Asset Disposition
Offer applies that may be purchased out of the Excess Proceeds, at an offer price in respect of the Notes in an amount equal to (and, in the case of any Pari Passu Indebtedness, an offer price of no more than) 100% of the principal amount of the
Notes and 100% of the principal amount of Pari Passu Indebtedness, in each case, plus accrued and unpaid interest, if any, to, but not including, the date of purchase, in accordance with Section 3.09 or the agreements governing the Pari Passu
Indebtedness, as applicable, and in minimum denominations of £100,000 and in integral multiples of £1,000 in excess thereof.” 
 (q) Section 4.11(a)(3) of the Indenture will hereby be amended in its entirety and replaced with the following: 
 “(3) in the event such Affiliate Transaction, individually or together with other related Affiliate Transactions, involves an aggregate value in excess of £20.0 million, the Company has
received a written opinion from an Independent Financial Advisor that such Affiliate Transaction is fair, from a financial standpoint, to the Company and its 

  
 10 

 
Restricted Subsidiaries or that the terms are not materially less favorable than those that could reasonably have been obtained in a comparable transaction at such time on an arm’s length
basis from a Person that is not an Affiliate.” 
 (r) Section 4.11(b)(11) of the Indenture will hereby be amended in
its entirety and replaced with the following: 
 “(11) without duplication in respect of payments made pursuant to
Section 4.11(b)(12), (a) payments by the Company or any Restricted Subsidiary to any Permitted Holder (whether directly or indirectly, including through any Parent) of annual management, consulting, monitoring or advisory fees and related
expenses in an aggregate amount not to exceed £1.75 million per fiscal year and (b) customary payments by the Company or any Restricted Subsidiary to any Permitted Holder (whether directly or indirectly, including through any Parent)
for financial advisory, financing, underwriting or placement services or in respect of other investment banking activities, including in connection with acquisitions or divestitures, which payments in respect of this Section 4.11(b)(11)(b) are
approved by a majority of the Board of Directors of the Company or a member of senior management in good faith;” 
 (s)
Section 4.16(a) of the Indenture will hereby be amended in its entirety and replaced with the following: 
 “(a) The
Company shall cause each Restricted Subsidiary (other than the Issuer) that, after the Issue Date, guarantees any Indebtedness of the Company, the Issuer or any Guarantor, or assumes or in any other manner becomes liable with respect to any
Indebtedness under the Cabot Senior Facilities Agreement or any refinancing Indebtedness in respect thereof, to simultaneously or prior thereto execute and deliver a supplemental indenture substantially in the form of Exhibit D or other
appropriate agreement providing for such Restricted Subsidiary’s Note Guarantee on the same terms and conditions as those set forth in this Indenture. In addition, the Company shall cause each Restricted Subsidiary (other than the Issuer, an
Immaterial Subsidiary or a Permitted Purchase Obligations SPV) to execute and deliver a supplemental indenture substantially in the form of Exhibit D or other appropriate agreement providing for such Restricted Subsidiary’s
guarantee of the Notes on the same terms and conditions as those set forth in this Indenture, within 30 days of delivery of the Company’s or CCM’s audited consolidated annual reports to the Trustee pursuant to Section 4.03 that show
that such Restricted Subsidiary is not an Immaterial Subsidiary or a Permitted Purchase Obligations SPV (each such additional guarantee of the Notes, an “Additional Note Guarantee”). 

(t) Section 6.01(a)(5) of the Indenture will hereby be amended in its entirety and replaced with the following: 

“(5) default under any mortgage, Indenture or instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is Guaranteed by the Company or any of its Restricted Subsidiaries) other than Indebtedness owed to the Company or a
Restricted Subsidiary whether such Indebtedness or Guarantee now exists, or is created after the date hereof, which default: 

  
 11 

 (a) is caused by a failure to pay principal of, or interest or premium, if any, on such
Indebtedness, immediately upon the expiration of the grace period provided in such Indebtedness (“payment default”); or 
 (b) results in the acceleration of such Indebtedness prior to its maturity; 
 and,
in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a payment default or the maturity of which has been so accelerated, aggregates
£10.0 million or more;” 
 (u) Section 6.01(a)(7) of the Indenture will hereby be amended in its entirety
and replaced with the following: 
 “(7) failure by the Issuer, the Company or any Restricted Subsidiary to pay final
judgments aggregating in excess of £10.0 million (exclusive of any amounts that a solvent insurance company has acknowledged liability for), which judgments are not paid, discharged or stayed for a period of 60 days after the judgment
becomes final;” 
 (v) Clause (3) of Section 12.04 of the Indenture will hereby be amended in its entirety and
replaced with the following: 
 “(3) in connection with any disposition of Collateral to any Person other than the Company
or any of its Restricted Subsidiaries, or to a Guarantor (other than CCM); provided that if the Collateral is disposed to such Guarantor, the relevant Collateral becomes immediately subject to a substantially equivalent Lien in favor of the
Security Agent securing the Notes (but excluding any transaction subject to Section 5.01(a); provided further, that, in each case, such disposition is permitted by Section 4.10 and the other provisions of this Indenture;”

 (w) Section 12.05 of the Indenture is hereby amended in its entirety and replaced with the following: 

“Additional Intercreditor Agreement. At the request of the Issuer, in connection with the Incurrence or refinancing by the
Company or its Restricted Subsidiaries of any Indebtedness secured or permitted to be secured on the Collateral, CCM, the Company, the Issuer, the relevant Restricted Subsidiaries, the Trustee and the Security Agent shall enter into an intercreditor
or similar agreement or a restatement, amendment or other modification of the existing Intercreditor Agreement (an “Additional Intercreditor Agreement”) with the holders of such Indebtedness (or their duly authorized
representatives) on substantially the same terms as the Intercreditor Agreement (or on terms that in the good faith judgment of the Issuer are not materially less favorable to the Holders), including containing substantially the same terms with
respect to the application of the proceeds of the collateral held thereunder and the means of enforcement, it being understood that an increase in the amount of Indebtedness being subject to the terms of the Intercreditor Agreement or Additional
Intercreditor Agreement shall not be deemed to be less favorable to the Holders and shall be permitted by this Section 12.05 if the incurrence of such Indebtedness and any Lien in its favor is permitted by Section 4.09 and
Section 4.12; provided that such Additional Intercreditor Agreement shall not impose any personal obligations on the Trustee 

  
 12 

 
or Security Agent or, in the opinion of the Trustee or Security Agent, adversely affect the rights, duties, liabilities or immunities of the Trustee or Security Agent under this Indenture or the
Intercreditor Agreement. As used herein, the term “Intercreditor Agreement” shall include references to any Additional Intercreditor Agreement that supplements or replaces the Intercreditor Agreement entered into on or prior to the
Issue Date.” 
 (x) Section 13.02 of the Indenture will hereby be amended by replacing the second paragraph thereof
with the following: 
 If to the Issuer or any Guarantor: 

Marlin Intermediate Holdings plc 
 16-22 Grafton Road 
 Worthing 

West Sussex BN11 1QP 
 United Kingdom 
 Facsimile: +44 1903 282 296 

with a copy to: 

White & Case LLP 
 5 Old Broad Street 
 London EC2N 1DW 

United Kingdom 

Facsimile: +44 (0) 20 7532 1001 
 Attention: Rob Mathews 
 Section 7. Global Notes. 

Each Global Note shall be deemed supplemented, modified and amended in such manner as necessary to make the terms of such Global Note
consistent with the terms of the Indenture, as supplemented and amended by this Supplemental Indenture. To the extent of any conflict between the terms of the Global Notes and the terms of the Indenture, as supplemented by this Supplemental
Indenture, the terms of the Indenture, as supplemented by this Supplemental Indenture, shall govern and be controlling. 
 Section 8.
Ratification and Effect. 
 Except as hereby expressly waiver, supplemented, modified and amended, the Indenture is in all
respects ratified and confirmed and all the terms, provisions and conditions thereof shall be and remain in full force and effect. 
 Upon and after the execution of this Supplemental Indenture, each reference in the Indenture to “this Indenture,” “hereunder,” “hereof” or words of like import referring to
the Indenture shall mean and be a reference to the Indenture as modified hereby. 

  
 13 

 Section 9. Governing Law. 

THIS SUPPLEMENTAL INDENTURE AND THE NOTES AND THE RIGHTS AND DUTIES OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 Section 10. Agent for Service; Submission to Jurisdiction;
Waiver of Immunities. 
 The Issuer and each Guarantor irrevocably submit to the non-exclusive jurisdiction of any New York
State or U.S. federal court located in the Borough of Manhattan in the City and State of New York over any suit, action or proceeding arising out of or relating to this Indenture and irrevocably waive any right to trial by jury in connection with
any such suit, action or proceeding. The Issuer and each Guarantor irrevocably waive, to the fullest extent permitted by law, any objection which they may have, pursuant to New York law or otherwise, to the laying of the venue of any such suit,
action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in any inconvenient forum. In furtherance of the foregoing, the Issuer and each Guarantor hereby irrevocably
designate and appoint Corporation Service Company (at its office at 1180 Avenue of the Americas, Suite 210, New York, New York 10036-8401) as its agent to receive service of all process brought against them with respect to any such suit, action or
proceeding in any such court in the City and State of New York, such service being hereby acknowledged by it to be effective and binding service in every respect. Copies of any such process so served shall also be given to the Issuer in accordance
with Section 13.02 of the Indenture, but the failure of the Issuer to receive such copies shall not affect in any way the service of such process as aforesaid. 
 Section 11. Counterpart Originals. 
 The parties may sign any number of
copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

Section 12. The Trustee. 
 The Trustee has entered into this Supplemental Indenture solely upon request of the Issuer and assumes no obligations hereunder. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the other parties hereto and not the Trustee. 

Section 13. Effect of Headings. 
 The section headings herein are for convenience only and shall not affect the construction hereof. 

Section 14. Conflicts. 
 To the extent of any inconsistency between the terms of the Indenture or the Global Notes and this Supplemental Indenture, the terms of this Supplemental Indenture will control. 

Section 15. Entire Agreement. 
 This Supplemental Indenture constitutes the entire agreement of the parties hereto with respect to the amendments to the Indenture and waivers under the Indenture set forth herein. 

  
 14 

 Section 16. Successors. 
 All covenants and agreements in this Supplemental Indenture given by the parties hereto shall bind their successors. 
 (Signature page follows.) 

  
 15 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed on their respective behalf, by their respective representative thereunto duly authorized, on the date first above written. 
  

			
	 MARLIN INTERMEDIATE HOLDINGS PLC

as Issuer

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN FINANCIAL INTERMEDIATE II LIMITED

as Company

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 CABOT FINANCIAL LIMITED

as CFL

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN FINANCIAL GROUP LIMITED

as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN FINANCIAL INTERMEDIATE LIMITED

as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN MIDWAY LIMITED
 as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 BLACK TIP CAPITAL HOLDINGS LIMITED

as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN SENIOR HOLDINGS LIMITED

as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN PORTFOLIO HOLDINGS LIMITED

as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN FINANCIAL SERVICES LIMITED

as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN LEGAL SERVICES LIMITED

as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN CAPITAL EUROPE LIMITED

as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MCE PORTFOLIO LIMITED
 as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MFS PORTFOLIO LIMITED
 as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN EUROPE I LIMITED
 as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 MARLIN EUROPE II LIMITED
 as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 ME III LIMITED
 as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	 ME IV LIMITED
 as Guarantor

		
	 By:
	 	 /s/ Christopher Ross-Roberts

	 Name:
	 	 Christopher Ross-Roberts

	 Title:
	 	 Director

  
 Signature
Page to First Supplemental Indenture 

 
			
	
THE BANK OF NEW YORK MELLON, LONDON BRANCH

as Trustee

		
	 By:
	 	 /s/ Paul Cattermole

	 Name:
	 	 Paul Cattermole

	 Title:
	 	 Vice President

  
 Signature
Page to First Supplemental IndentureEX-10.77

 Exhibit 10.77 

 

					
		  	 

  

December 16, 2013

		
	To:	  	Encore Capital Group, Inc.
		  	3111 Camino Del Rio North, Suite 1300
		  	San Diego, California 92108
		  	Attn:	  	Paul Grinberg, Chief Financial Officer
		  	Telephone:	  	858-309-6904
		  	Facsimile:	  	858-309-6977
		
	From:	  	Deutsche Bank AG, London Branch
		  	Winchester House
		  	1 Great Winchester St, London EC2N 2DB
		  	Telephone:	  	44 20 7545 8000
		
		  	c/o Deutsche Bank Securities Inc.
		  	60 Wall Street
		  	New York, NY 10005
		  	Telephone:	  	212-250-2500
		
	Re:	  	Amendment to Warrant Transactions

 Ladies and Gentlemen: 
 This letter agreement (this “Amendment”) amends the letter agreement re: Base Issuer Warrant Transaction, between Deutsche Bank AG, London Branch (“Dealer”) and Encore
Capital Group, Inc. (“Issuer”), dated November 20, 2012 (such letter agreement, the “Base Warrant Confirmation” and the “Transaction” as defined therein, the “Base Warrant
Transaction”), and the letter agreement re: Additional Issuer Warrant Transaction, between Dealer and Issuer, dated December 6, 2012 (such letter agreement, the “Additional Warrant Confirmation” and together with the
Base Warrant Confirmation, the “Confirmations,” and the “Transaction” as defined in the Additional Warrant Confirmation, the “Additional Warrant Transaction” and together with the Base Warrant Transaction,
the “Transactions”), as set forth below. Any capitalized term used but not defined herein shall have the meaning assigned thereto in the Base Warrant Confirmation or the Additional Warrant Confirmation, as the context shall require.

 1. Amendments. 
 a. If the Hedge Completion Percentage is 100%, each Confirmation shall be amended by increasing the “Strike Price” of each Transaction from USD 44.1875 to USD 60.00. 

b. If the Hedge Completion Percentage is less than 100%: 

i. The Additional Warrant Confirmation shall be amended by: 

 

	 	1.	Replacing the “Number of Warrants” for each “Component” other than the last “Component” of the Additional Warrant Transaction with a
number of “Warrants” (the “Additional Daily Warrant Number”) equal to (i) the product of (a) the Hedge Completion Percentage and (b) the Total Number of 

	 	2.	Warrants, rounded down to the nearest whole number (the “Additional Total Warrant Number”) divided by (ii) 150, rounded down to the nearest
whole number; 

  

	 	3.	Replacing the “Number of Warrants” for the last “Component” of the Additional Warrant Transaction with a number of “Warrants” equal to the
(i) the Additional Total Warrant Number less (ii) the product of 149 and the Additional Daily Warrant Number; and 

  

	 	4.	Increasing the “Strike Price” of the Additional Warrant Transaction from USD 44.1875 to USD 60.00; and 

ii. The Base Warrant Confirmation shall be amended by: 

 

	 	1.	Replacing the “Number of Warrants” for each “Component” other than the last “Component” of the Base Warrant Transaction with a number of
“Warrants” (the “Base Daily Warrant Number”) equal to (i) the Total Number of Warrants less the aggregate “Number of Warrants” for all “Components” under the Additional Warrant Transaction,
after giving effect to the amendments set forth in Section 1.b.i above (the “Base Total Warrant Number”), divided by (ii) 150, rounded down to the nearest whole number; and 

 

	 	2.	Replacing the “Number of Warrants” for the last “Component” of the Base Warrant Transaction with a number of “Warrants” equal to
(i) the Base Total Warrant Number less (ii) the product of 149 and the Base Daily Warrant Number. 

 2. Hedging Completion Notice. On the first Scheduled Trading Day following the Hedge Completion Date, Dealer will deliver to Issuer a hedging completion notice substantially in the form set forth
in Annex B hereto, and no later than the first Scheduled Trading Day following delivery to Issuer of such notice, absent manifest error, Issuer will return to Dealer a counter-signed copy thereof. 

3. Restrike Cost. In consideration for the amendments contained herein: 

a. On December 19, 2013, Issuer shall pay to Dealer an amount in USD equal to the product of (i) 13,895,000 and
(ii) 40% (such product, the “Prepayment Amount”); and 
 b. On the later of the third
Currency Business Day following the Hedge Completion Date and January 2, 2014, (A) if the Aggregate Restrike Cost exceeds the Prepayment Amount, Issuer shall pay to Dealer an amount in USD equal to such excess or (B) if the Prepayment
Amount exceeds the Aggregate Restrike Cost, Dealer shall pay to Issuer an amount in USD equal to such excess. 

4. Definitions. As used herein: 

“Aggregate Restrike Cost” means the product of (i) the Hedge Completion Percentage multiplied
by the Total Number of Warrants and (ii) the Restrike Cost Per Share. 
 “Delta” means
the “Delta” set forth in the grid in Annex A hereto corresponding to the Hedge Execution Price; provided that (i) if the Hedge Execution Price is between “Hedge Execution Prices” set forth in such grid,
“Delta” shall be determined by linear interpolation between the “Deltas” set forth in such grid corresponding to such “Hedge Execution Prices” and (ii) if the Hedge Execution Price is less than the lowest
“Hedge Execution Price” set forth in such grid, “Delta” will be determined by the Calculation Agent in a manner consistent with the methodology used in creating such grid. 

  
 2 

 “Hedge Completion Percentage” means the ratio of the Hedge
Purchase Number to the Target Hedge Purchase Number. 
 “Hedge Execution Price” means the
per-Share volume-weighted average price at which Dealer (or its affiliate or agent) purchases Shares during the Hedging Period to adjust its Hedge Positions in connection with this Amendment; provided that the price per Share for any such
purchase shall not exceed the Limit Price (as defined in Annex A hereto). 
 “Hedge Purchase
Number” means the number of Shares purchased by Dealer (or its affiliate or agent) during the Hedging Period to adjust its Hedge Positions in connection with this Amendment. 

“Hedging Period” means the period of consecutive Scheduled Trading Days beginning on, and including,
December 17, 2013, and ending on, and including, the earlier of (i) the first date on which Dealer (or its affiliate or agent) has completed purchasing Shares to adjust its Hedge Positions in connection with this Amendment and
(ii) February 20, 2014 (such earlier date, the “Hedge Completion Date”). 

“Restrike Cost Per Share” means the “Restrike Cost Per Share” set forth in the grid in Annex A
hereto corresponding to the Hedge Execution Price; provided that (i) if the Hedge Execution Price is between “Hedge Execution Prices” set forth in such grid, the “Restrike Cost Per Share” shall be determined by
linear interpolation between the “Restrike Costs Per Share” set forth in such grid corresponding to such “Hedge Execution Prices” and (ii) if the Hedge Execution Price is less than the lowest “Hedge Execution
Price” set forth in such grid, the “Restrike Cost Per Share” will be determined by the Calculation Agent in a manner consistent with the methodology used in creating such grid. 

“Target Hedge Purchase Number” means a number of Shares equal to the product of (i) Delta and
(ii) the Total Number of Warrants, rounded down to the nearest Share. 
 “Total Number of
Warrants” means the sum of (i) the aggregate “Number of Warrants” for all “Components” under the Base Warrant Transaction and (ii) the aggregate “Number of Warrants” for all “Components”
under the Additional Warrant Transaction (without giving effect to the amendments set forth herein). 
 5.
Representations, Warranties and Covenants. 
 a. Each party re-makes, as of the date hereof, each of the
representations and warranties set forth in Section 3(a) of the Agreement and Section 7(b) of the Confirmations. 
 b. Issuer re-makes, as of the date hereof, each of the representations and warranties, and agrees to comply with the covenants, set forth in Section 7(a)(i), (iv), (v), (vi), (ix)(C) and (x) of
the Confirmations; provided that, solely for this purpose: 
 i. Any reference therein to: 

 

	 	1.	the Confirmation shall be deemed replaced by this Amendment; 

  

	 	2.	the Trade Date or the Effective Date shall, in each case, be deemed replaced by the date hereof; 

  
 3 

	 	3.	the Transaction shall be deemed to refer to the Transaction as amended hereby; and 

 

	 	4.	the Settlement Period (including, for the avoidance of doubt, references to certain Expiration Dates in the definition thereof) shall be deemed replaced by the Hedging
Period; and 

 ii. The exception set forth in Section 7(a)(x) of the Confirmations for
purchases, offers or orders through Dealer or Royal Bank of Canada or Société Générale shall not apply. For the avoidance of doubt, Issuer shall not be deemed to have breached Section 7(a)(x) of the Confirmations on
account of its entry into this Amendment or the other warrant transaction amendments executed substantially contemporaneously herewith. 
 c. Issuer represents, warrants and covenants to Dealer that: 
 i.
Issuer is entering into this Amendment in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the
federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares. Issuer and Dealer each acknowledges that it is
the intent of the parties that this Amendment comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 and this Amendment shall be interpreted to comply with the requirements of Rule 10b5-1(c). 

ii. Issuer is entering into this Amendment hereunder in good faith and not as part of a plan or scheme to evade the
prohibitions of Rule 10b5-1 or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging
transaction or position with respect to the Shares. 
 iii. Issuer acknowledges and agrees that any amendment,
modification or waiver of the terms set forth herein must be effected in accordance with the requirements for the amendment of a “plan” as defined in Rule 10b5-1(c). Without limiting the generality of the foregoing, any such amendment,
modification or waiver shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification or waiver shall be made at any time at which Issuer is aware of any material
non-public information regarding Issuer or the Shares. 
 d. Dealer acknowledges and agrees that Section 3
of the Confirmations will apply to any judgment, determination or calculation made by the Calculation Agent in connection with this Amendment. 
 6. Adjustments. If any event occurs with respect to Issuer or the Shares during the Hedging Period that gives rise to an adjustment under the Confirmations or the Equity Definitions to the terms of
the Transactions, the Calculation Agent will also adjust the terms set forth herein as appropriate to preserve the economic intent of the parties. 
 7. Continuing Effect. Except as expressly amended hereby, the terms and provisions of the Transactions and Confirmations shall remain and continue in full force and effect and are hereby confirmed
in all respects. 

  
 4 

 8. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be considered an original, with the same effect as if all of the signatures hereto and thereto were upon the same instrument. 
 9. Waiver of Trial by Jury. EACH OF ISSUER AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTIONS, AS AMENDED HEREBY, OR THE ACTIONS OF DEALER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR
ENFORCEMENT OF THIS AMENDMENT AND THE CONFIRMATIONS AS AMENDED HEREBY. 
 10. Governing Law;
Jurisdiction. THIS AMENDMENT AND EACH CONFIRMATIONS AS AMENDED HEREBY AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AMENDMENT AND THE CONFIRMATIONS AS AMENDED HEREBY SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK. THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION
TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS. 

  
 5 

 Please confirm that the foregoing correctly sets forth the terms of our agreement by sending to us a letter
or telex substantially similar to this facsimile, which letter or telex sets forth the terms of the amendments to the Transactions and indicates your agreement to those terms. Dealer will make the time of execution of the Amendment available upon
request. 
 Dealer is regulated by the Financial Services Authority. 

 

			
	DEUTSCHE BANK AG, LONDON BRANCH
		
	By:	 	 /s/ Michael Sanderson

	Name:	 	Michael Sanderson
	Title:	 	Managing Director
		
	By:	 	 /s/ Lars Kestner

	Name:	 	Lars Kestner
	Title:	 	Managing Director
	
	 DEUTSCHE BANK SECURITIES INC., 
 acting solely as Agent in connection with the Transactions

		
	By:	 	 /s/ Michael Sanderson

	Name:	 	Michael Sanderson
	Title:	 	Managing Director
		
	By:	 	 /s/ Lars Kestner

	Name:	 	Lars Kestner
	Title:	 	Managing Director

 Confirmed and Acknowledged as of the date first above written: 

 

			
	ENCORE CAPITAL GROUP, INC.
		
	By:	 	 /s/ Kenneth A. Vecchione

	Name:	 	Kenneth A. Vecchione
	Title:	 	President and Chief Executive Officer

  
 6 

 ANNEX A 
  

					
	 Hedge Execution Price
	 	 Restrike Cost Per Share
	 	 Delta

	 $40.00
	 	$6.05	 	22.3%
	 $42.00
	 	$6.49	 	21.8%
	 $44.00
	 	$6.92	 	21.3%
	 $46.00
	 	$7.34	 	20.6%
	 $48.00
	 	$7.75	 	20.0%
	 $50.00
	 	$8.14	 	19.2%

 Limit Price: $49.00. 

  
 7 

 ANNEX B 
 FORM OF HEDGING COMPLETION NOTICE 
 [DATE] 

 

					
	To:	  	Encore Capital Group, Inc.
		  	3111 Camino Del Rio North, Suite 1300
		  	San Diego, California 92108
		  	Attn:	  	Paul Grinberg, Chief Financial Officer
		  	Telephone:	  	858-309-6904
		  	Facsimile:	  	858-309-6977

 Reference is hereby made to the letter agreement re: Amendment to Warrant Transactions (the
“Amendment”), dated December 16, 2013, between Deutsche Bank AG, London Branch (“Dealer”) and Encore Capital Group, Inc. (“Issuer”). Capitalized terms used but not defined herein shall have the
meanings assigned thereto in the Amendment. For purposes of the Amendment and the Confirmations, the following terms shall have the meanings set forth below: 
  

			
	Aggregate Restrike Cost:	  	[            ]
		
	Delta:	  	[            ]
		
	Hedge Completion Date:	  	[            ]
		
	Hedge Completion Percentage:	  	[            ]
		
	Hedge Execution Price:	  	[            ]
		
	Hedge Purchase Number:	  	[            ]
		
	Restrike Cost Per Share:	  	[            ]
		
	Target Hedge Purchase Number:	  	[            ]
		
	[For Additional Warrant Transaction:	  	
		
	 “Number of Warrants” for each “Component” other than the last “Component”:
	  	[            ]
		
	 “Number of Warrants” for last “Component”:
	  	[            ]
		
	For Base Warrant Transaction:	  	
		
	 “Number of Warrants” for each “Component” other than the last “Component”:
	  	 [            ]

		
	 “Number of Warrants” for last “Component”:
	  	[            ] ]1

  

	1 	Include if Hedge Completion Percentage is less than 100%. 

  
 8 

			
	DEUTSCHE BANK AG, LONDON BRANCH
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 DEUTSCHE BANK SECURITIES INC., 
 acting solely as Agent in connection with the Transactions

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

 Confirmed and Acknowledged as of the date first above written: 

 

			
	ENCORE CAPITAL GROUP, INC.
		
	By:	 	  

	Name:	 	
	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]