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Exhibit 10.2
EXECUTION VERSION

AMENDMENT NO. 2
Dated as of March 30, 2022
to
FOURTH AMENDED AND RESTATED SENIOR SECURED NOTE PURCHASE AGREEMENT
Dated as of September 1, 2020
THIS AMENDMENT NO. 2 (“Amendment”) is made as of March 30, 2022 by and among Encore Capital Group, Inc. (the “Company”) and the undersigned holders of Notes (the “Noteholders”).  Reference is made to that certain Fourth Amended and Restated Senior Secured Note Purchase Agreement, dated as of September 1, 2020, between the Company, on the one hand, and the Purchasers named therein, on the other hand (the “Note Agreement”).  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Note Agreement.
WHEREAS, the Company has requested certain amendments to the Note Agreement as set forth herein, and the Company and the undersigned Noteholders have agreed to such amendments, subject to the terms and conditions of this Amendment; and
WHEREAS, the Credit Agreement is being amended by an amendment thereto (the “Credit Agreement Amendment”).
NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Noteholders party hereto have agreed to enter into this Amendment.
1.Amendments to Note Agreement.  Subject to the terms and conditions hereof, on the Effective Date (as defined below) the Note Agreement is hereby amended, as follows:
(a)Section 7.10 (Inspection; Keeping of Books and Records) of the Note Agreement is hereby amended to delete the parenthetical “(including to conduct an annual field examination of)” therefrom.
(b)Clause (b)(vii) of the definition of “Permitted Acquisitions” set forth in Schedule A of the Note Agreement is hereby amended and restated, as follows:
“(vii)    in relation to a Business Acquisition, the acquired company, business or undertaking is incorporated or established, and carries on its principal business, in the United Kingdom, European Union, European Economic Area, Australia, India, United States of America or Canada;”
2.Conditions of Effectiveness.  The effectiveness of this Amendment is subject to the following conditions precedent (the date on which each of which has been satisfied or waived in writing being referred to in this Amendment as the “Effective Date”):  (a) the Noteholders shall have received (i) counterparts of this Amendment, duly executed by the Company and the Required Holders, and the Consent and Reaffirmation attached hereto duly executed by the Guarantors, (ii) a fully executed copy of the Credit Agreement Amendment, which shall be in form and substance reasonably satisfactory to the Required Holders, and 

(iii) such other instruments and documents as are reasonably requested by the Noteholders on or prior to the date of this Amendment in connection with this Amendment; and (b) the Company shall have paid, to the extent invoiced on or prior to the date of this Amendment, all fees and expenses of the Noteholders (including attorneys’ fees and expenses) in connection with this Amendment and the other Finance Documents.
3.Representations and Warranties of the Company.  The Company hereby represents and warrants as follows:
(a)The execution, delivery and performance by each Obligor of this Amendment are within such Obligor’s organizational powers and have been duly authorized by all necessary organizational, and if required, shareholder, partner or member, action.  This Amendment has been duly executed and delivered by each Obligor.  This Amendment and the Note Agreement as amended hereby constitute legal, valid and binding obligations of the Company and are enforceable against the Company in accordance with their terms.
(b)As of the date hereof and giving effect to the terms of this Amendment, (i) there exists no Default or Event of Default and (ii) the representations and warranties contained in Section 5 of the Note Agreement are true and correct, except for representations and warranties made with reference solely to an earlier date, which are true and correct as of such earlier date.
(c)The execution and delivery of this Amendment by the Obligors, and performance by the Company of this Amendment and the Note Agreement, as amended hereby (i) do not require any consent or approval of, registration or filing with, or any action by, any Governmental Authority, except those as have been obtained or made and are in full force and effect, (ii) will not violate any organizational documents of, or any law applicable to, any Obligor or any judgment, order or ruling of any Governmental Authority, (iii) will not violate or result in a default under the Note Agreement, the Credit Agreement, any other material agreement or other material instrument binding on any Obligor or any of their assets, or give rise to a right under any of the foregoing agreements (other than the Credit Agreement) to require any payment to be made by any Obligor, (iv) will not result in the creation or imposition of any Lien on any asset of any Obligor, except Liens (if any) created under the Finance Documents and (v) will not result in a material limitation on any licenses, permits or other governmental approvals applicable to the business, operations or properties of the Obligors.
(d)No fee or other remuneration is required to be paid to or for the benefit of any party to the Credit Agreement as consideration for the Credit Agreement Amendment.
4.Reference to and Effect on the Note Agreement.
(a)Upon the effectiveness hereof, each reference to the Note Agreement in the Note Agreement or any other Finance Document shall mean and be a reference to the Note Agreement as amended hereby.
(b)Except as specifically amended above, the Note Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.
(c)Other than as expressly set forth herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Noteholders, nor constitute a waiver of any provision of the Note Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.
 

(d)This Amendment shall constitute a “Finance Document.”
5.Release of Claims.  In consideration of the amendments contained herein, each of the Obligors hereby waives and releases each of the Noteholders from any and all claims and defenses, known or unknown, existing as of the date hereof with respect to the Note Agreement and the other Finance Documents and the transactions contemplated hereby and thereby.  It is the intention of each of the Company and the Guarantors in providing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified, and in furtherance of this intention it waives and relinquishes all rights and benefits under Section 1542 of the Civil Code of the State of California (or any comparable provision of any other applicable law), which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
6.Governing Law.  This Amendment shall be governed by and construed in accordance with the internal laws of the State of New York, excluding choice-of-law principles of the law of such state that would permit the application of the laws of a jurisdiction other than such state.
7.Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
8.Counterparts; Electronic Signatures.  This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  The parties hereto agree to electronic contracting and signatures with respect to this Amendment.  Delivery of an electronic signature to, or a signed copy of, this Amendment by facsimile, email or other electronic transmission shall be fully binding on the parties to the same extent as the delivery of the signed originals and shall be admissible into evidence for all purposes.
[Signature Pages Follow]
 

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

ENCORE CAPITAL GROUP, INC.

By:      /s/ Jonathan Clark 
    Jonathan Clark, Executive Vice President and Chief Financial Officer

						
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

By:  PGIM, Inc., as investment manager

By: /s/ T.J. Flanagan
    T.J. Flanagan, Vice President
	
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY

By:  PGIM, Inc., as investment manager

By: /s/ T.J. Flanagan
    T.J. Flanagan, Vice President
	
	PAR U HARTFORD LIFE & ANNUITY COMFORT TRUST

By:  Prudential Arizona Reinsurance Universal Company, as Grantor

By:  PGIM, Inc., as Investment Manager

By: /s/ T.J. Flanagan
    T.J. Flanagan, Vice President
	
	PICA HARTFORD LIFE & ANNUITY COMFORT TRUST

By:  The Prudential Insurance Company of America, as Grantor

By:  PGIM, Inc., as investment manager

By: /s/ T.J. Flanagan
    T.J. Flanagan, Vice President
	

						
	PRUDENTIAL ARIZONA REINSURANCE TERM COMPANY

By:  PGIM, Inc., as investment manager

By: /s/ T.J. Flanagan
    T.J. Flanagan, Vice President
	
	PRUDENTIAL LEGACY INSURANCE COMPANY OF NEW JERSEY

By:  PGIM, Inc., as investment manager

By: /s/ T.J. Flanagan 
    T.J. Flanagan, Vice President
	
	PRUCO LIFE INSURANCE COMPANY

By:  PGIM, Inc., as investment manager

By: /s/ T.J. Flanagan
    T.J. Flanagan, Vice President
	

						
	MIDLAND NATIONAL LIFE INSURANCE COMPANY

By:  Guggenheim Partners Investment Management, LLC as Investment Manager

By: _____________________________ 
    Name:  Kevin M. Robinson
    Title:  Attorney-in-Fact
	
	GUARANTY INCOME LIFE INSURANCE COMPANY

By:  Guggenheim Partners Investment Management, LLC, as Manager

By:    _____________________________
    Name:  Kevin M. Robinson
    Title:  Attorney-in-Fact
	
	HORACE MANN LIFE INSURANCE COMPANY

By:  Guggenheim Partners Investment Management, LLC as Advisor

By: _____________________________
    Name:  Kevin M. Robinson
    Title:  Attorney-in-Fact
	
	NORTH AMERICA COMPANY FOR LIFE AND HEALTH INSURANCE

By:  Guggenheim Partners Investment Management, LLC, as Investment Manager

By: _____________________________ 
    Name:  Kevin M. Robinson
    Title:  Attorney-in-Fact
	

						
	WILTON REASSURANCE LIFE COMPANY OF NEW YORK

By:  Guggenheim Partners Investment Management, LLC, as Advisor

By: _____________________________ 
    Name:  Kevin M. Robinson
    Title:  Attorney-in-Fact
	
	TEXAS LIFE INSURANCE COMPANY

By:  Guggenheim Partners Investment Management, LLC, as Advisor

By: _____________________________
    Name:  Kevin M. Robinson
    Title:  Attorney-in-Fact
	
	WILTON REASSURANCE COMPANY

By:  Guggenheim Partners Investment Management, LLC, as Advisor

By: _____________________________
    Name:  Kevin M. Robinson
    Title:  Attorney-in-Fact
	

						
	ATHENE ANNUITY & LIFE ASSURANCE COMPANY

By:  Apollo Insurance Solutions Group LP, its investment adviser

By:  Apollo Capital Management, L.P., its sub adviser

By:  Apollo Capital Management GP, LLC, its General Partner

By: /s/ Joseph D. Glatt
    Name:  Joseph D. Glatt
    Title:  Vice President
	
	ATHENE ANNUITY AND LIFE COMPANY

By:  Apollo Insurance Solutions Group LP, its investment adviser

By:  Apollo Capital Management, L.P., its sub adviser

By:  Apollo Capital Management GP, LLC, its General Partner

By: /s/ Joseph D. Glatt
    Name:  Joseph D. Glatt
    Title:  Vice PresidentExhibit 10.1

PROMISSORY NOTE

 

$485,000.00

October 4, 2021

New York, New York

1.Agreement to Pay.  

FOR VALUE RECEIVED, Elate Group, Inc., a Delaware corporation (“Borrower”), hereby promise to pay to the order of Kevin Britt (“Lender”), the principal sum of FOUR HUNDRED EIGHTY-FIVE THOUSAND dollars ($485,000.00), together with interest thereon, in such amounts and at such times as provided for below (“Loan”).

2.Payment Terms.   

2.1.Maturity.  The Borrower shall pay the lender the principal sum, together with all unpaid accrued interest on the day that is three hundred and sixty-five (365) days from the date hereof (“Maturity Date”). 

2.2.Payments.  All payments shall be paid by check or wire transfer of immediately available funds. Borrower has the right, but not the obligation, to defer making any payments under the term of this note until the Maturity Date. 

2.3.Interest. This Promissory Note shall bear interest prior to the Maturity Date or acceleration at the rate of five percent (5%) per annum.  

2.4.Prepayment.   Borrower may voluntarily prepay the principal balance of this Note, in whole or in part, at any time without a prepayment premium. 

3.Events of Default. The occurrence of any one or more of the following events shall constitute an “Event of Default” under this Note: 

3.1.the failure by Borrower to pay any amount payable pursuant to this Note within five (5) days after the date when any such payment is due in accordance with the terms hereof or thereof; or 

3.2.the breach of or default under the provisions of this Note; or  

3.3.the commencement by or against the Borrower of any involuntary proceeding (which is not dismissed within sixty (60) days of initiation) or voluntary proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, receivership, dissolution, or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or the adjudication of the Borrower as insolvent or bankrupt by a decree of a court of competent jurisdiction; or the petition or application by or against the Borrower for, acquiescence in, or consent by the Borrower to, the appointment of any receiver or trustee for the Borrower or for all or a substantial part of the property of the Borrower which is not dismissed within sixty (60) days of initiation; or the assignment by the Borrower for the benefit of creditors; or the written admission of the Borrower of Borrower’s inability to pay Borrower’s debts as they mature.  

4.Remedies.  To the extent permitted by applicable law, upon the occurrence of an Event of Default, the Lender may, in addition to its other rights and remedies, by written notice to he Borrower, declare all or any portion of the unpaid principal balance remaining unpaid under this Note, together with all accrued interest thereon, immediately due and payable, in which event it shall immediately become due and payable,  

provide that upon the occurrence of an Event of Default set forth in Section 3.3 hereof, all or any portion of the unpaid principal amount due to Lender, together with all accrued interest thereon and other sums owing, shall immediately become due and payable without any such notice. Upon an Event of Default, all amounts due and owing shall bear an interest rate of seven percent (7%) per annum.

4.1.In the event that one or more Events of Default shall occur, or if any suit or action is instituted to enforce this Promissory Note, Borrower promises to pay, in addition to the reasonable costs and disbursements otherwise allowed by law, such sum as the court may adjudge reasonable attorneys’ fees in such suit or action. 

5.Other General Agreements. 

5.1.The Loan is a business loan and not for personal, family or household purposes. Time is of the essence hereof. 

5.2.This Note is governed and controlled as to validity, enforcement, interpretation, construction, effect and in all other respects by the statutes, laws and decisions of the State of New York.  This Note may not be changed or amended orally but only by an instrument in writing signed by the party against whom enforcement of the change or amendment is sought. 

5.3.Lender shall not be construed for any purpose to be a partner, joint venturer, agent or associate of Borrower or of any lessee, operator, concessionaire or licensee of Borrower in the conduct of its business. 

5.4.This Note has been made and delivered in New York, New York, and all funds disbursed to or for the benefit of Borrower will be disbursed in New York, New York. 

5.5.If this Note is executed by more than one party, the obligations and liabilities of each Borrower under this Note shall be joint and several and shall be binding upon and enforceable against each Borrower and their respective successors and assigns.  This Note shall inure to the benefit of and may be enforced by Lender and its successors and assigns. 

5.6.If any provision of this Note is deemed to be invalid by reason of the operation of law, or by reason of the interpretation placed thereon by any administrative agency or any court, Borrower and Lender shall negotiate an equitable adjustment in the provisions of the same in order to effect, to the maximum extent permitted by law, the purpose of this and the validity and enforceability of the remaining provisions, or portions or applications thereof, shall not be affected thereby and shall remain in full force and effect. 

6.Notices.  All notices required under this Note shall be personally delivered or sent by first class mail, postage prepaid, or by overnight courier.  Notices and other communications shall be effective: (i) if mailed, upon the earlier of receipt or five (5) days after deposit in the U.S. mail, first class, postage prepaid, or (ii) if hand-delivered, by courier or otherwise (including telegram, lettergram or mailgram), when delivered. 

IN WITNESS WHEREOF, Borrower has executed and delivered this Promissory Note as of the day and year first written above.

	BORROWER:

	 

	 

	 

	Elate Group, Inc.,

	 

	A Delaware corporation

	 

	 

	 

	 

	 

	 

	 

	By:

	/s/ Kevin Britt

	 

	 

	Kevin Britt 

	 

	 

	President

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