Document:

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                                                                   Exhibit 10.5

                               FIRST AMENDMENT TO
                        INDENTURE AND SERVICING AGREEMENT
                (MIDLAND RECEIVABLES-BACKED NOTES, SERIES 1999-1)

      This FIRST AMENDMENT TO INDENTURE AND SERVICING AGREEMENT, dated as of
September 22, 2000 (this "Amendment"), is executed by and among MIDLAND
RECEIVABLES 99-1 CORPORATION, as issuer (the "Issuer"), WELLS FARGO BANK
MINNESOTA, NATIONAL ASSOCIATION, fka Norwest Bank Minnesota, National
Association, as trustee (in such capacity, the "Trustee"), and as backup
Servicer (in such capacity, the "Backup Servicer"), MIDLAND CREDIT MANAGEMENT,
INC., as servicer (the "Servicer"), ASSET GUARANTY INSURANCE COMPANY, as note
insurer (the "Note Insurer"), PFL LIFE INSURANCE COMPANY, LIFE INVESTORS
INSURANCE COMPANY OF AMERICA, RELIANCE STANDARD LIFE INSURANCE COMPANY AND N M
ROTHSCHILD & SONS (AUSTRALIA) LIMITED (the "Noteholders").

                                 RECITALS

      A. The Issuer, the Trustee, the Backup Servicer, the Servicer and the Note
Insurer are parties to an Indenture and Servicing Agreement dated as of December
14, 1999 (as amended, supplemented or otherwise modified, the "Indenture and
Servicing Agreement") relating to the Midland Receivables-Backed Notes, Series
1999-1; and

      B. The Issuer, the Servicer, the Trustee, the Backup Servicer, the Note
Insurer and the Noteholders agree that certain amendments to the Indenture and
Servicing Agreement are necessary and in the best interests of each party; and

      C. The Noteholders are the only holders of the Notes issued by the Issuer
pursuant to the Indenture and Servicing Agreement on the date hereof; and

      D. Section 12.01 of the Indenture and Servicing Agreement permits
amendment of the Indenture and Servicing Agreement on the terms and subject to
the conditions provided therein.

      NOW THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, the parties hereto agree as follows:

            SECTION 1. AMENDMENTS. Subject to the terms and conditions set forth
herein, the Indenture and Servicing Agreement is hereby amended as follows:

            (a) Section 1.01 is amended by adding the following definitions:

                  "Bankrupt Sale Net Proceeds" means the portion of Net Proceeds
                  arising from the sale of Bankrupt Sales Receivables pursuant
                  to Section 3.13(a).

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            (b) Section 1.01 is amended by adding the following definition:

                  "Bankrupt Sale Receivable" means any Receivable the Obligor of
                  which is subject to (i) a petition filed by or against the
                  Obligor, (ii) a decree or order for relief entered by a court
                  or agency or supervisory authority having jurisdiction in
                  respect of the Obligor, or (iii) the appointment of a trustee
                  in bankruptcy, conservator or receiver for the Obligor in any
                  bankruptcy, insolvency, readjustment of debt or similar
                  proceeding.

            (c) Section 1.01 is amended by replacing the current definition of
      "Liquidity" with the following definition:

                  "Liquidity" shall mean unrestricted cash and/or availability
                  under one or more committed working capital facilities the
                  provider of each of which (A) has (i) a short-term rating of
                  at least A-1 from S&P or P-1 from Moody's and (ii) a long term
                  rating of at least A from S&P or A2 from Moody's, or (B) is
                  CTW Funding, LLC ("CTW") or such other provider reasonably
                  acceptable to the Controlling Party, the terms and conditions
                  of each of which (including, without limitation, the
                  conditions precedent to funding) are in all material respects
                  no less favorable to the Servicer than the terms and
                  conditions which are customary in the market for committed
                  commercial lending facilities, or such other terms and
                  conditions reasonably acceptable to the Controlling Party, and
                  the remaining term of each of which is at least 6 months or
                  such lesser period of time acceptable to the Controlling
                  Party; provided, that, with respect to the revolving facility
                  provided by CTW pursuant to the Credit and Security Agreement,
                  dated September 22, 2000, as it may be amended, the undrawn
                  commitment thereunder will be counted as Liquidity through its
                  term.

            (d) Section 1.01 is amended by replacing the definition of "Net
      Proceeds" it with the following definition:

                  "Net Proceeds" means, with respect to a Receivable, all monies
                  representing collected available funds, net of checks returned
                  for insufficient funds, received or otherwise recovered by the
                  Servicer or Permitted Third Parties on or with respect to a
                  Receivable or from or for the account of the related Obligor
                  on such Receivable including, without limitation in connection
                  with a sale thereof pursuant to Section 3.13. Third-Party Fees
                  and Third-Party Costs incurred by Permitted Third Parties and
                  paid in connection with collecting or enforcing a Receivable
                  will be deducted from collections on any Receivable by either
                  the applicable Permitted Third-Party or by the Servicer on
                  their behalf and will not constitute Net Proceeds.
                  Notwithstanding the foregoing, proceeds from the sale of
                  accounts pursuant to Section 3.13(b) and Net Seller Recoveries
                  shall not be Net Proceeds for purposes of

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                  computing the Servicing Fee or the cumulative amount of Net
                  Proceeds for purposes of Section 9.01(h) and Exhibit 9.01(h).

            (e) Section 1.01 is amended by replacing the current definition of
      "Note Rate" with the following definition:

                  "Note Rate" means 10% per annum, calculated on the basis of a
                  360-day year consisting of twelve (12) 30-day months.

            (f) Section 1.01 is amended by adding the following definition of
      "Permitted Third Party":

                  "Permitted Third Party" means (i) any member of the National
                  Attorney Network, (ii) any member of American Alliance of
                  Creditor Attorneys; and (iii) any other Person that the
                  Controlling Party has agreed in writing to be a Permitted
                  Third Party.

            (g) Article 1.01 is amended by adding the following definition of
      "Net Seller Recoveries":

                  "Net Seller Recoveries" means any and all monies, property,
                  rights or interests, including, without limitation, any
                  accounts or receivables directly or indirectly received by the
                  Issuer on or after September 22, 2000 from BankOne,
                  Corporation First USA Bank, N.A., MBNA America Bank, N.A., or
                  Chase Manhattan Bank USA, N.A., or any affiliate of any of the
                  foregoing (collectively, the "Receivable Sellers") resulting
                  from claims that the Issuer or Midland may have or had against
                  any of the Receivable Sellers or that Note Insurer or the
                  Issuer may have or had as a third-party beneficiary against
                  any of the Receivable Sellers arising from or relating to the
                  previous purchase of Receivables by Midland from the
                  Receivable Sellers that are or were part of the Trust Estate,
                  net of (i) third-party expenses which, in the aggregate, do
                  not exceed $75,000 without the consent of the Note Issuer, and
                  (ii) attorney fees and attorney costs incurred by Midland or
                  the Issuer in connection with the receipt of such monies,
                  property, rights or interests.

            (h) Section 1.01 is amended by adding the following definition of
      "Re-Write Note":

                  "Re-Write Note " has the meaning set forth in Section 3.15.

            (i) Section 1.01 is amended by replacing the current definition of
      "Servicing Fee" with the following definition:

                  "Servicing Fee" means the fee payable to the Servicer,
                  calculated pursuant to Section 3.05, for services rendered
                  during the related time period, which shall be equal to (i)
                  35% of all Net Proceeds received during the related time
                  period for services rendered

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                  during such time period that are not (A) Bankrupt Sale Net
                  Proceeds, or (B) Net Proceeds arising from a sale of
                  Receivables pursuant to Section 3.13(b), and (ii) 25% of all
                  Bankrupt Sale Net Proceeds, received during the related time
                  period. The term "Servicing Fee" shall also mean the
                  additional amounts payable to a Successor Servicer for
                  servicing pursuant to Section 9.03, but only to the extent
                  such amounts do not exceed the amount calculated in accordance
                  with the preceding sentence; all amounts in excess thereof are
                  herein called the "Additional Servicing Fee." The Servicer
                  shall also receive as a "Servicing Fee" $20,000 from the
                  proceeds of the first sale of Receivables pursuant to Section
                  3.13(a) occurring after September 22, 2000.

            (j) Section 1.01 is amended by adding the following definition of
      "Third-Party Costs":

                  "Third-Party Costs" means all out-of-pocket costs and expenses
                  incurred by a Permitted Third Party in connection with
                  collection actions or proceedings related to the enforcement
                  or collection of any Receivable.

            (k) Article 2.01 is hereby amended by adding the following
      subsection (e) thereto which shall read as follows:

                  (e) Midland and the Issuer acknowledge and agree that any Net
                  Seller Recovery (i) is included as part of the "Contributed
                  Assets," as defined in the Contribution Agreement, and (ii)
                  is, and shall be, property of the Issuer free of any right,
                  claim or interest of Midland, and (iii) is, and shall be, part
                  of the Trust Estate. Issuer shall immediately advise in
                  writing the Trustee and the Controlling Party of the receipt
                  of the Issuer of any Net Seller Recovery and the Issuer shall
                  (i) within one (1) Business Day of receipt deposit all money
                  received in respect thereof to the Collection Account, and
                  (ii) shall execute, deliver and file any and all financing
                  statements, and deliver such documents and records to the
                  Trustee as the Controlling Party may reasonably request to
                  perfect or continue perfection of the Trustee's Security
                  Interest in such Net Seller Recovery. Any Receivables received
                  as part of any Net Seller Recovery shall become a Receivable
                  subject to this Indenture and shall be serviced by the
                  Servicer pursuant hereto.

            (l) Section 2.04(i) is amended by deleting the provision in its
      entirety and replacing it with the following provision:

                  (i) UCC Status. No Receivable is secured by "real property" or
                  "fixtures" or, except for Re-Write Notes, evidenced by an
                  "instrument" under, and as defined in, the UCC.

            (m) Section 3.03(a)(iv) is amended by deleting the provision in its
      entirety and replacing it with the following provision:

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                  (iv) No Instruments. Except for Re-Write Notes, or in
                  connection with the Servicer's enforcement or collection of
                  the Receivables, the Servicer shall take no action to cause
                  any Receivables to be evidenced by any instruments (as defined
                  in the UCC) and if any Receivable is so evidenced, except for
                  Re-Write Notes, such Receivable shall be assigned to the
                  Servicer as provided in Section 3.04.

            (n) Section 3.03(b) is amended by deleting the current provision in
      its entirety and replacing it with the following provision:

                  (b) The Servicer shall not purchase any Receivables under or
                  in connection with a Consumer Account if after giving effect
                  to the purchase of such Receivables and the funding of such
                  purchase the Servicer would have less than $2,000,000 of
                  Liquidity.

            (o) Section 3.05 is amended by:

                        (i)   deleting the first sentence in its entirety and
                  replacing it with the following sentence:

                        As compensation for the performance of its obligations
                        hereunder, the Servicer shall be entitled to receive the
                        Servicing Fee as provided in Section 4.02 and Section
                        4.04.

            and

                        (ii) deleting the first parenthetical in the second
                  (2nd) sentence in its entirety and replacing it with the
                  following parenthetical:

                        (other than Third-Party Fees, Third-Party Costs and
                        those specified in the following proviso)

            (p) Article III is amended by deleting the current Section 3.13 and
      replacing it with the following:

                  (a) The Servicer, as agent of the Trustee and the Issuer, may,
                  without the consent of any Person, sell Bankrupt Sale
                  Receivables in arm's length transactions with third parties
                  who are not Affiliates of the Issuer or the Servicer in a
                  manner consistent with the procedures set forth in Exhibit
                  3.13(a). The Net Proceeds of all sales of Bankrupt Sale
                  Receivables must be in immediately available funds.

                  (b) The Servicer, as agent of the Trustee and the Issues, may
                  sell any Receivable in arm's length transactions with third
                  parties who are not Affiliates of the Issuer or the Servicer
                  upon receipt of the prior written consent from the Controlling
                  Party. The Servicer shall deliver to the Controlling Party no
                  later than five (5) Business

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                  Days preceding the date of such proposed sale, an Officer's
                  Certificate in the form of Exhibit 3.13(b). The Controlling
                  Party shall within five (5) Business Days of receipt of the
                  foregoing notice advise the Servicer and the Trustee of its
                  consent or withholding consent to the proposed sale. The Net
                  Proceeds of all sales of such Receivables must be in
                  immediately available funds.

      Exhibit 3.13(a) and Exhibit 3.13(b) to the Amendment are hereby deemed
      attached to the Indenture.

            (q) Article III is amended by adding the following Section 3.15
      entitled "Re-Write Program":

                  Section 3.15. Re-Write Program. In furtherance of the
                  collection of the Receivables, the Servicer may accept, on
                  behalf of the Issuer and subject to the Trustee's security
                  interest, a promissory note in replacement of any Receivable
                  (a "Re-Write Note"). The Re-Write Note shall be in compliance
                  with all applicable laws and, upon execution by the Obligor,
                  the Servicer shall, within ten (10) days of such execution,
                  deliver each Re-Write Note to the Trustee. The Trustee shall
                  hold the Re-Write Note for the sole purpose of perfecting the
                  Trustee's security interest in the Re-Write Note. If the
                  Servicer ever needs possession of the Re-Write Note for
                  amendment, enforcement or return to the Obligor upon final
                  payment, it shall provide the Trustee with written request for
                  the applicable Re-Write Note. Upon receipt of such a request,
                  the Trustee shall promptly provide the Servicer with the
                  requested Re-Write Note. Unless the Re-Write Note is paid in
                  full or a lesser amount is accepted by the Servicer in its
                  reasonable judgment in full satisfaction of the amounts owing
                  thereunder, the Servicer shall promptly return the Re-Write
                  Note to the Trustee when the Servicer no longer has immediate
                  need for the possession thereof.

            (r) Section 4.02 is amended by deleting the first sentence in its
      entirety and replacing it with the following sentence:

                  For Net Proceeds received on and after August 1, 2000, if the
                  amount on deposit in the Collection Account is sufficient to
                  pay the Trustee Fee (reasonably estimated by the Servicer)
                  payable on the next two (2) occurring Payment Dates, then
                  beginning on September 22, 2000 and on each Friday thereafter,
                  the Servicer shall submit to the Trustee and Note Insurer a
                  notice of calculation of (i)) the Servicing Fee for the period
                  beginning with the immediately-preceding Friday through the
                  immediately-preceding Thursday, plus (ii) accrued and unpaid
                  Servicing Fee for any time beginning on or after August 1,
                  2000, and upon receipt of such notice, the Trustee shall send
                  to the Servicer via wire transfer the owing Servicing Fee as
                  computed on such notice.

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            (s) Section 4.03(a) is amended by deleting the word "and" which
      immediately proceeds "(ii)", deleting the period at the end of such
      subsection and adding the following provision at the end of the
      subsection:

                  ; and (iii) the Servicer shall remit on each Determination
                  Date the positive amount, if any, by which (A) the payments to
                  the Servicer of the Servicing Fee for the immediately
                  preceding Collection Period pursuant to Section 4.02 exceeded
                  (B) the amount of the Servicing Fee that should be paid to the
                  Servicer for such Collection Period.

            (t) Section 4.04(a) is amended by deleting the current provision in
      its entirety and replacing it with the following provision:

                  (a) On each Determination Date, the Servicer shall calculate
                  (i) the amount of funds on deposit in each of the Accounts and
                  the amount of Available Funds, and (ii) as applicable, the
                  Trustee Fee, the Backup Servicing Fee, the Servicing Fee
                  calculated with reference to the related Collection Period,
                  the amounts paid to the Servicer on a weekly basis as payment
                  of the Servicing Fee during the related Collection Period, a
                  reconciliation of the Collections from the applicable
                  Collection Period which were used to pay the Servicing Fee for
                  the previous Collection Period pursuant to Section 4.02, the
                  Additional Servicing Fee, the Interest Distributable Amount,
                  the Required Reserve Amount, the Reserve Fund Reimbursement
                  Amount, the aggregate Principal Distributable Amount, the
                  unpaid Note Balance before and after giving effect to any
                  Principal Distributable Amount, the Prepayment Amount, the
                  Release Payment, the Facility Fee, and the amount payable by
                  the Note Insurer pursuant to the Policy, which amounts shall
                  be set forth in the Monthly Servicer Report for the related
                  Payment Date. The Servicer shall send the Monthly Servicer
                  Report to the Trustee and the Note Insurer by 11:00 a.m. New
                  York, New York time on each such Determination Date.

            (u) Section 4.04(b)(ii) is amended by deleting the current provision
      in its entirety and replacing it with the following provision:

                  (ii) to the Servicer, from the Available Funds in the
                  Collection Account, (A) the amount, if any, by which (i) the
                  Servicing Fee calculated for the related Collection Period
                  exceeds, (ii) the aggregate amount previously retained by the
                  Servicer on a weekly basis for payment of the Servicing Fee
                  for the related Collection Period pursuant to Section 4.02,
                  plus (B) all accrued and unpaid Servicing Fees, if any, for
                  prior Collection Periods (plus an amount equal to any
                  Transition Fees then owing to the Successor Servicer, if any);

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            (v) Section 8.06(c) is amended by deleting the current provision in
      its entirety and replacing it with the following provision:

                  (c) The Backup Servicer shall assume its duties as Successor
                  Servicer in accordance with Sections 9.02 and 9.03 except upon
                  determination that the Backup Servicer is legally unable to
                  perform the duties of the Servicer under this Agreement as
                  provided in Section 9.03; and neither the Backup Servicer nor
                  the Trustee shall be held liable for any costs, claims,
                  damages or liabilities incurred by any Person arising as a
                  result of the Backup Servicer's failure to perform its duties
                  as Successor Servicer to the extent such performance is
                  prevented by applicable law or court order.

            (w) Section 8.07(b) is amended by deleting the current provision in
      its entirety and replacing it with the following provision:

                  (b) Outside Parties. Servicer will not engage outside parties
                  for the collection of Receivables on any basis except
                  Permitted Third Parties.

            (x) Section 9.01(f) is amended by deleting the current provision in
      its entirety and replacing it with the following provision:

                  (f) for the period of time during which Midland acts as
                  Servicer, Midland's consolidated Stockholder's Equity as
                  required to be shown on its consolidated financial statements
                  is less than the amount set forth on Exhibit 9.01(f) attached
                  hereto for the applicable period;

      Exhibit 9.01(f) attached to this Amendment is hereby deemed attached to
the Indenture.

            (y) Section 9.01(h) is amended by deleting the current section in
      its entirety and replacing it with the following provision:

                  (h) commencing with the January 2001 Collection Period, and at
                  the end of each Collection Period thereafter, both (i) the
                  cumulative amount of Net Proceeds in respect of all
                  Receivables for such Collection Period and the two preceding
                  Collection Periods is less than the amount specified in
                  Exhibit 9.01(h) for such period of three Collection Periods,
                  and (ii) the cumulative amount of Net Proceeds in respect of
                  all Receivables for such Collection Period and all preceding
                  Collection Periods from and after the January 2001 Collection
                  Period is less than the amount specified in Exhibit 9.01(h)
                  for such Collection Periods (the lesser of any such deficiency
                  in (i) and (ii) is a "Cumulative Collections Deficiency");
                  provided, however, that a Cumulative Collections Deficiency
                  shall not be a Servicer Default if the Issuer deposits an
                  amount equal to the Cumulative Collections Deficiency to the
                  Reserve Account within ten (10) calendar days of the end of
                  the Collection Period during which the Cumulative Collections
                  Deficiency occurred.

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      Exhibit 9.01(h) attached to this Amendment is hereby deemed attached to
the Indenture.

            (z) Section 9.01(m) is amended by deleting the current provision in
      its entirety and replacing it with the following provision:

                  (m) the Servicer fails to have at any time at least $2,000,000
                  of Liquidity; or

            (aa) Section 9.02(a) is amended by deleting the current first two
      (2) sentences thereof and replacing them with the following provision:

                  The rights and obligations of the Servicer shall terminate
                  upon the earlier of (i) the occurrence and continuation of a
                  Servicer Default or (ii) the last day of each Collection
                  Period, unless the Servicer had been appointed by the
                  Controlling Party on or prior to the first day of such
                  Collection Period for next occurring Collection Period. If a
                  Servicer Default shall occur and be continuing, so long as
                  such Servicer Default has not been cured or waived pursuant to
                  Section 9.05, the Trustee shall, upon the direction of the
                  Controlling Party, by notice then given in writing to the
                  Servicer and the Note Insurer terminate immediately, all (but
                  not less than all) of the rights and obligations of the
                  Servicer, as Servicer under this Agreement and the other
                  Transaction Documents, and in and to the Receivables and
                  proceeds thereof. If the Controlling Party does not appoint
                  the Servicer to a successive Collection Period by the first
                  day of the immediately preceding Collection Period, at the end
                  of the Collection Period through which the Servicer has
                  previously been appointed, all (but not less than all) of the
                  rights and obligations of the Servicer, as Servicer under this
                  Agreement and the other Transaction Documents, and in and to
                  the Receivables and proceeds thereof shall be deemed to have
                  automatically terminated, except for accrued and unpaid
                  Servicer Fees. Notwithstanding such termination any Permitted
                  Third Party shall be allowed to continue to service any
                  Receivable serviced by them at the time of such Termination,
                  and collect and receive the related Third Party Costs and
                  Third Party Fees.

            (bb) Exhibit A to the Indenture and Servicing Agreement is amended
      by deleting the current Exhibit A in its entirety and replacing it with
      Exhibit A attached hereto. The Servicer shall also provide a weekly report
      to the Trustee and the Note Insurer on the date the weekly Servicer Fee is
      due setting forth (i) the collections for the prior week and for the then
      current Collection Period; (ii) the Liquidity of the Servicer and (iii)
      the computation of the Servicing Fee for such week.

            (bb) On the Payment Date occurring on November 15, 2000, and prior
      to making any distributions pursuant to Section 4.04(b), the Trustee shall
      pay from Available Funds to Mayer Brown & Platt $10,000.00 in payment of
      services rendered in representing the Noteholders in connection with this
      Amendment.

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            SECTION 2. CROSS-ASSIGNMENT. Article XII is amended by adding the
following as a new Section 12.12.

            Section 12.12 Cross Assignment. Notwithstanding any provision in
            this Indenture and Servicing Agreement, the Issuer shall not receive
            any distributions pursuant to Section 4.04(b)(x)(E), Section 4.05(b)
            and Section 4.05(d) (collectively, the "99-1 Distributions") during
            any period of time that any amount remains payable to the
            Noteholders, the Trustee, the Servicer, the Back-up Servicer or the
            Note Insurer and any such amounts shall be deposited to or remain on
            deposit in the Reserve Account, as applicable. Upon payment in full
            of all amounts to the Noteholders, the Trustee, the Servicer, the
            Back-up Servicer, and the Note Insurer, the Trustee shall pay (i)
            all amounts otherwise payable to the Issuer to the "Trustee" for
            deposit under the "Indenture and Servicing Agreement" and the other
            "Transaction Documents" to the "Reserve Account" as such terms are
            defined in and pursuant to that certain Indenture and Servicing
            Agreement dated as of March 31, 1999, among Midland Funding 98-A
            Corporation, as "Issuer" ("Funding 98-A"); Wells Fargo Minnesota
            Bank N.A., fka Norwest Bank Minnesota, National Association, as
            Trustee and Back-Up Servicer; Midland Credit Management, Inc., as
            Servicer; and Asset Guaranty Insurance Company, as Note Insurer (the
            "99-A Indenture") provided that if at such time all amounts payable
            under the 99-A Indenture and the "Transaction Documents" related
            thereto, as defined in the 99-A Indenture have been paid to the
            "Noteholders," the "Trustee," the "Servicer," the "Back-up Servicer"
            and the "Note Insurer" as each are defined in and pursuant to the
            99-A Indenture, then amounts payable to the Issuer shall be so paid
            to the Issuer pursuant to this Indenture and Servicing Agreement.
            Any amounts received by the Trustee from the "Trustee" under the
            99-A Indenture shall be deposited by the Trustee into the Reserve
            Account, shall for all purposes become part of the Reserve Account,
            and shall be held, invested, and disbursed by the Trustee pursuant
            to the Indenture and Servicing Agreement. The Issuer is willing to
            agree to the terms of this Section 12.12 in consideration of (i) the
            amendments made to the terms of the First Amendment hereto, dated as
            of September 22, 2000; and (ii) the similar cross-assignment by
            Funding 99-A in that certain Third Amendment to Indenture and
            Servicing Agreement regarding the 99-A Indenture of even date
            therewith, and further agrees that the "Trustee" under the 99-A
            Indenture and the "Note Insurer" thereunder are entitled to enforce
            the Issuer's rights to have the Trustee make the cross-assignment of
            funds to the "Trustee" of the 99-A Indenture required pursuant to
            this Section 12.12. The Issuer shall execute any documents and take
            any action requested by the Note Insurer to evidence or give effect
            to the foregoing cross-assignment.

            SECTION 3. EFFECTIVENESS. This amendment provided for by this
Amendment shall become effective as of the date hereof upon the occurrence of
each of the following events:

            (a)   the Trustee, the Seller, the Servicer, the Note Insurer and
                  the Noteholders shall have received counterparts of this
                  Amendment, duly executed by the parties hereto;

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            (b)   the Issuer shall have executed and filed a UCC-1 Financing
                  Statement in the States of Delaware and California, to perfect
                  the security interest granted to the Note Insurer pursuant to
                  Section 2 of this Amendment;

            (c)   the Trustee shall have furnished the Rating Agency and the
                  Placement Agent with written notification of the substance of
                  this Amendment; and

            (d)   the Servicer shall have closed and has available the revolving
                  credit facility provided by CTW Funding, LLC referenced in
                  Section (d) above.

      After this Amendment becomes effective, all amendments herein will be
      effective for and after the October 2000 Collection Period.

            SECTION 4. EFFECTIVENESS. This amendment provided for by this
Amendment shall become effective as of the date hereof upon the occurrence of
each of the following events:

            (a)   the Trustee, the Seller, the Servicer and the Note Insurer
                  shall have received counterparts of this Amendment, duly
                  executed by the parties hereto; and

            (b)   the Trustee shall have furnished the Rating Agency and the
                  Placement Agent with written notification of the substance of
                  this Amendment.

            SECTION 5. REPRESENTATIONS. Each party hereto hereby represents and
warrants that this Amendment has been duly executed and delivered by such party
and constitutes the legal, valid and binding obligation of such party,
enforceable against such party in accordance with its terms except as the
enforceability hereof may be limited by bankruptcy, insolvency, reorganization,
moratorium and other laws affecting creditors' rights and remedies in general.

            SECTION 6. REFERENCE. On and after the effective date of this
Amendment, each reference in the Indenture and Servicing Agreement to "this
Agreement", "hereunder", "herein" or words of like import referring to the
Indenture and Servicing Agreement, and each reference in the other Transaction
Documents to the "Indenture and Servicing Agreement", "thereunder", "thereof",
or words of like import referring to the Indenture and Servicing Agreement shall
mean and be a reference to the Indenture and Servicing Agreement as amended by
this Amendment.

            SECTION 7. COUNTERPARTS; EFFECTIVENESS; FULL FORCE AND EFFECT. This
Amendment may be executed by one or more of the parties to this Amendment on any
number of separate counterparts (including by facsimile transmission), and all
of said counterparts taken together all shall be deemed to constitute one and
the same instrument. A copy of this Amendment signed by all the parties shall be
lodged with the Trustee. Except as expressly set forth herein, the terms,
provisions and conditions of the Indenture and Servicing Agreement and the other
Transaction Documents shall remain in full force and effect and in all other
respects are hereby ratified and confirmed.

                                       11
<PAGE>   12

            SECTION 8. REPRESENTATIONS, ENFORCEABILITY AND NO WAIVER.

            (a) Each Issuer and the Servicer hereby reaffirm all covenants,
      representations and warranties made by it in Indenture and Servicing
      Agreement, and (ii) agree that all such covenants, representations and
      warranties shall be deemed to have been re-made as of the date of this
      Amendment.

            (b) Each Issuer and the Servicer hereby represent and warrant that
      this Amendment constitutes its legal, valid and binding obligation,
      enforceable against it in accordance with its terms.

            (c) The execution, delivery and effectiveness of this Amendment
      shall not operate as a waiver of any right, power or remedy of any of the
      parties hereto under the Indenture and Servicing Agreement or any other
      Transaction Document or any other document, instrument or agreement
      executed in connection therewith.

            SECTION 9. MISCELLANEOUS. The Amendment is not evidence of any
position by the Note Insurer, affirmative or negative, as to whether any action
by the Noteholders, or any other party, is required in addition to the execution
of the Amendment by the Note Insurer. No representation is made by the Note
Insurer as to the necessity or the satisfaction of any additional action or
condition under the Indenture and Servicing Agreement with respect to this
Amendment. This Amendment does not modify the obligations of the Note Insurer
under the Policy as defined in the Indenture and Servicing Agreement. Except as
specifically provided in this Agreement, the terms and conditions of the
Indenture and Servicing Agreement shall remain in full force and effect. Except
as specifically provided in this Amendment, none of the Trustee's, Note
Insurer's or the Noteholders' rights, interests or remedies pursuant to the
Indenture and Servicing Agreement shall be reduced or limited in any way by this
Agreement. This Agreement may be executed in any number of counterparts, each of
which shall be an original, and each of which shall constitute one in the same
Agreement. Time is of the essence of this Agreement.

            SECTION 10. HEADINGS. Section and subsection 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 or be given any
substantive effect.

            SECTION 11. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

            SECTION 12. DEFINED TERMS. Capitalized terms used herein and not
otherwise defined shall have the meanings given to such terms in the Indenture
and Servicing Agreement.

            SECTION 13. NO OTHER AGREEMENTS. All of the parties to this
Agreement hereby acknowledge and agree that there no other Agreements by or
among any of them with respect to the amendments to the Indenture and Servicing
Agreement other than as set forth in this Amendment.

                                       12
<PAGE>   13

                   (BALANCE OF PAGE INTENTIONALLY LEFT BLANK)

                                       13
<PAGE>   14

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and delivered by their respective officers thereunto duly
authorized as of the date first above written.

                                MIDLAND RECEIVABLE 99-1 CORPORATION, as Issuer

                                By: ___________________________________________
                                Name:   Carl C. Gregory III
                                Title:  President

                                MIDLAND CREDIT MANAGEMENT, INC., as Servicer

                                By: ___________________________________________
                                Name:  Carl C. Gregory III
                                Title:     President

                                WELLS FARGO BANK MINNESOTA, NATIONAL
                                ASSOCIATION, fka NORWEST BANK MINNESOTA,
                                NATIONAL ASSOCIATION, not in its individual
                                capacity, but solely as Trustee and as
                                Backup Servicer

                                By: ___________________________________________
                                Name: _________________________________________
                                Title: ________________________________________

                                ASSET GUARANTY INSURANCE COMPANY

                                By: ___________________________________________
                                Name: _________________________________________
                                Title: ________________________________________

                                PFL LIFE INSURANCE COMPANY

                                By: ___________________________________________
                                Name: _________________________________________
                                Title: ________________________________________

                                LIFE INVESTORS INSURANCE COMPANY OF AMERICA

                                By: ___________________________________________
                                Name: _________________________________________
                                Title: ________________________________________

                                       14
<PAGE>   15

                                RELIANCE STANDARD LIFE INSURANCE COMPANY

                                By: ___________________________________________
                                    Louis C. Lucido, Chief Investment Officer

                                N M ROTHSCHILD & SONS (AUSTRALIA) LIMITED

                                By: ___________________________________________
                                    Bruce R. Arnold, Head of Debt Capital
                                    Markets

                                       15
<PAGE>   16

                                    EXHIBIT A

                             MONTHLY SERVICER REPORT

                                   [ATTACHED]

<PAGE>   17

                           MONTHLY SERVICER REPORT OF
                         MIDLAND CREDIT MANAGEMENT, INC.
                                       FOR
                        MIDLAND RECEIVABLES-BACKED NOTES
                                  SERIES 1999-1

      Pursuant to the Indenture and Servicing Agreement, dated as of January 18,
2000 (the "Indenture and Servicing Agreement"), among Midland Receivables 99-1
Corp., as Issuer (the "Issuer"), Midland Credit Management, Inc., as servicer
(the "Servicer"), Norwest Bank Minnesota, N.A., as trustee (in such capacity,
the "Trustee") and as Backup Servicer, and Asset Guaranty Insurance Company, as
Note Insurer (the "Note Insurer"), the Servicer submits the following
information for the relevant Dates set forth below with respect to the Midland
Receivables-Backed Notes, Series 1999-1. Capitalized terms used in this
certificate have the meanings set forth in the Indenture and Servicing
Agreement.

                    Collection Period covered by this Report:

____________________________________ through __________________________________

                       Determination Date of this Report:

               __________________________________________________

                          Payment Date for this Report:

               __________________________________________________

A.    AVAILABLE FUNDS:

      Amount of funds on deposit and the Available Funds for this Collection
      Period:

<TABLE>
<S>                                                                                          <C>
           Collections for the Month                                                         $
                                                                                               --------------

           Refunds From Issuers                                                              $
                                                                                               --------------

           Bankrupt Sale Proceeds                                                            $
                                                                                               --------------

           Non-Bankrupt Sale Proceeds                                                        $
                                                                                               --------------

           less Permitted Third Party Fees and Costs                                         $
                                                                                               --------------

           Earnings on Collection Account during the period                                  $
                                                                                               --------------

           Note Payment Account at end of Current Month                                      $
                                                                                               --------------

           Earnings on Note Payment Account during the period                                $
                                                                                               --------------

           Reserve Account at end of Current Month                                           $
                                                                                               --------------

           Earnings on Reserve Account during the period                                     $
                                                                                               --------------

           Deposit by Servicer of excess Servicing Fee paid during
           prior Collection Period                                                           $
                                                                                               --------------

                     Total Available Funds plus Reserve Account                              $
                                                                                               --------------
</TABLE>

                                  Page 1 of 6
<PAGE>   18

<TABLE>
<S>                                                                                          <C>
B.    TRUSTEE FEE:

      (i)  the total Trustee Fee accrued with respect to the current Payment
           Date - computed on ending note balance of
           preceding Payment Date                                                            $
                                                                                               --------------

      (ii) the total accrued and past due Trustee Fee with
           respect to prior Payment Dates                                                    $
                                                                                               --------------

      (iii) the total amount of Trustee Fees from (i) and (ii) to be paid
            on the next Payment Date                                                         $
                                                                                               --------------

      (iv) Trustee's out-of-pocket expenses                                                  $
                                                                                               --------------

      (v)  the total amount of accrued and unpaid Trustee Fees and
           expenses to be carried forward                                                    $
                                                                                               --------------

      (vi) Remaining Available Funds plus Reserve Account                                    $
                                                                                               --------------

C.    SERVICING FEE:

      (i)  the total Servicing Fee accrued with respect to the current Payment
           Date (excluding Servicing Fee on Bankrupt Sale
           Proceeds)                                                                         $
                                                                                               --------------

      (ii) Servicing fee on Bankrupt Sale Proceeds accrued with
           respect to the current Payment                                                    $
                                                                                               --------------

      (iii) less Weekly Servicing Fee previously retained                                    $
                                                                                               --------------

      (iv) the total accrued and past due Servicing Fee(s) owed
           form prior Payment Dates                                                          $
                                                                                               --------------

      (v)  less Acquisition Payment due for the period (See H(i))                            $               **
                                                                                               --------------

      (vi) Refunds to Debtors Paid by Servicer                                               $
                                                                                               --------------

      (vii) the total amount of Servicer Fee(s) from (i) and (ii) to be
            paid on the next Payment Date                                                    $
                                                                                               --------------

      (viii) the total amount of all Servicer Fee(s) to be carried
             forward to a subsequent Payment Date                                            $
                                                                                               --------------

      (ix) Remaining Available Funds plus Reserve Account                                    $
                                                                                               --------------

      In the event of a Servicer Default during the reporting period,
      Calculate the amount of Transition Fees owed                                           $
                                                                                               --------------
</TABLE>

                                  Page 2 of 6
<PAGE>   19

<TABLE>
<S>                                                                                          <C>
D.    BACKUP SERVICER FEE:

      (i)  the total Backup Servicer Fee accrued with respect to the current
           Payment Date computed on ending note balance of
           preceding Payment Date                                                            $
                                                                                               --------------

      (ii) the total amount of accrued and past due Backup
           Servicer Fee(s) with respect to prior Payment Dates                               $
                                                                                               --------------

      (iii) the total amount of all Backup Servicer Fee(s) from (i)
            and (ii) to be paid on the next Payment Date                                     $
                                                                                               --------------

      (iv) the total amount of accrued and unpaid Backup
           Servicer Fee(s) to be carried forward to the next
           Payment Date                                                                      $
                                                                                               --------------

      (v)  Remaining Available Funds plus Reserve Account                                    $
                                                                                               --------------

E.    INTEREST DISTRIBUTABLE AMOUNT:

      (i)  Interest Distributable Amount for the current Payment Date
           computed on note balance on last day of immediately
           preceding Collection Period                                                       $
                                                                                               --------------

      (ii) the total Interest Carryover Shortfall with respect to
           Prior Payment Date                                                                $
                                                                                               --------------

      (iii) the total Interest Distributable Amount and Interest
            Carryover Shortfall from (i) and (ii) to be paid on the
            next Payment Date                                                                $
                                                                                               --------------

      (iv) the total amount required from the Reserve Account
           to pay (iii) due to deficiencies in Available funds                               $
                                                                                               --------------

      (v)  the total amount required form the Note Insurer to
           pay (iii) due to deficiencies in the Reserve Account
           and Available Funds                                                               $
                                                                                               --------------

      (vi) the total amount of accrued and unpaid Interest Distributable
           Amount(s) and Interest Carryover Shortfall to be carried forward to
           the next Payment Date                                                             $
                                                                                               --------------

      (ix) Remaining Available Funds plus Reserve Account
                                                                                               --------------
</TABLE>

                                  Page 3 of 6
<PAGE>   20

<TABLE>
<S>                                                                                          <C>
F.    NOTE INSURER PAYMENTS:

      (i)  Note Insurer Base Premium accrued with respect to the current
           Payment Date computed on Average Daily Balance                                    $
                                                                                               --------------

      (ii) the total Note Insurer Obligations payable on
           the current Payment Date (if any)                                                 $
                                                                                               --------------

      (iii)the total amount of all Note Insurer Premiums and
           Note Insurer Obligations from (i) and (ii) to be paid on
           the next Payment Date                                                             $
                                                                                               --------------

      (iv) the total amount of accrued and unpaid Note Insurer Base
           Premium(s) and Note Insurer Obligations to be carried
           forward to the next Payment Date                                                  $
                                                                                               --------------

      (v)  Cumulative Note Insurer Additional Premium accrued
           and unpaid with respect to the prior Payment Date
           computed on Average Daily Balance                                                 $
                                                                                               --------------

      (vi) Cumulative Note Insurer Additional Premium accrued
           and unpaid with respect to the current Payment Date
           computed on Average Daily Balance                                                 $
                                                                                               --------------

      (vii)Remaining Available Funds plus Reserve Account                                    $
                                                                                               --------------
</TABLE>

G.    ACQUISITION PAYMENT:

      Are there any Removed Receivables for the reporting period?
                     Yes                  No
                           ------             ------

      (if "NO" proceed to section "J") (if "YES" complete attached Schedule I)

      (i)  the total Acquisition Payment due for the current Payment Date
           See Line C (iii)      **    ** Netted with Service Fee at line C(iii)
                           ------

<TABLE>
<S>                                                                                          <C>
H.    NOTE BALANCE PAYMENT:

      (i)  Remaining Available Funds plus Reserve Account                                    $
                                                                                               --------------

      (ii) less Reserve Account balance end of Current Period                                $
                                                                                               --------------

      (iii)amount available for note balance payments                                        $
                                                                                               --------------

      (iv) Note Balance at End of Month:                                                     $
                                                                                               --------------

      (v)  Note Balance payment for the current Payment Date:                                $
                                                                                               --------------

I.    NOTE BALANCE AFTER PRINCIPAL PAYMENT                                                   $
                                                                                               --------------
</TABLE>

                                  Page 4 of 6
<PAGE>   21

<TABLE>
<S>                                                                                          <C>
J.    RESERVE ACCOUNT:

      (i)  Beginning Balance of Reserve Account                                              $
                                                                                               --------------

      (ii) Earnings on Reserve Account for current month                                     $
                                                                                               --------------

      (iii)Deposit by Issuer of Cumulative Collections Deficiency                            $
                                                                                               --------------

      (iv) the total Reserve Fund Reimbursement Amount due for                               $
                                                                                               --------------
           the current Payment Date -- Payable to Issuer

      (v)  the Ending Balance of the Reserve Account after                                   $
                                                                                               --------------
           payment to Issuer

K.    CUMULATIVE COLLECTIONS & LIQUIDITY

      (i)  Cumulative Net Collections for current and prior
           two Collection Periods (beginning Nov00)                                          $
                                                                                               --------------

      (ii) Required three month Cumulative Collections                                       $
                                                                                               --------------

      (iii)Cumulative Collections Deficiency (additional deposit                             $
                                                                                               --------------
           to reserve account)

      (iv) Liquidity as of the end of the current Collection Period                          $
                                                                                               --------------
</TABLE>

                                  Page 5 of 6
<PAGE>   22

                         MIDLAND CREDIT MANAGEMENT, INC.

                                 BY:_______________________________
Date_____________________        Vice President

WIRING INSTRUCTIONS FOR ISSUER:
                                 Wells Fargo Bank, ABA Routing Number 121000248
                                 For Credit To:  Midland Credit Management, Inc.
                                 Account No.:  4758372635

WIRING INSTRUCTIONS FOR SERVICER:
                                 Wells Fargo Bank, ABA Routing Number 121000248
                                 For Credit To:  Midland Credit Management, Inc.
                                 Account No.:  4758372635

                                   SCHEDULE I

See Servicer's Remittance Date Certificate pursuant to Section 3.04 identifying
all Removed Receivables including name, MCM #, address, acquisition price,
acquisition date, charge-off balance, Net-Proceeds collected of all accounts
removed during the reporting period.

Additional Information:

<TABLE>
<S>                                                                                              <C>
           Last day of preceding Collection Period, Note Balance
           Preceding Payment Date Ending Note Balance
           Average Daily Balance of Preceding Collection Period

           Monthly Note Rate, Interest Distributable                                             0.80250000%
           Monthly rate, Trustee Fee                                                             0.00416667%
           Note insurer base premium rate, monthly                                               0.06250000%
           Note insurer additional premium rate, monthly                                         0.27083333%
           Monthly rate, Backup Servicer                                                         0.01541667%
</TABLE>

                                  Page 6 of 6
<PAGE>   23

                                 EXHIBIT 3.13(a)

                        BANKRUPT ACCOUNT SALE PROCEDURES

1.    Receivable must be Bankrupt Sale Receivables.

2.    Price must be 7.5% of the face amount or greater.

3.    Seller only to represent and warrant the following:

            1. The Seller is duly organized, existing and in good standing as a
      corporation under the laws of the State of Delaware; the Seller's
      execution, delivery and performance of the Agreement are within the
      Seller's corporate powers and have been duly authorized by all necessary
      action; this Agreement is the legal, valid and binding obligation of the
      Seller enforceable against the Seller in accordance with its terms except
      that enforcement may be limited by bankruptcy, insolvency, reorganization,
      moratorium or other similar laws affecting enforcement of creditors'
      rights generally and by general equity principles; and the Agreement is
      not in conflict with the terms of the Seller's charter or bylaws, or of
      any material indenture, agreement or undertaking to which the Seller is
      bound.

            2. The Seller has marketable title to the Receivables free and clear
      of any liens or encumbrances (i) by or through it, or (ii) based on
      actions or failure to act of Seller.

            3. Except for the filing of the UCC Financing Statement and any
      approval that has been obtained or notice that has been given, no approval
      or other action by, or notice to or filing with, any [Debtor], any
      governmental authority or any other entity is required to be obtained by
      the Seller in conjunction with the transaction contemplated by the
      Agreement.

            4. Performance of the Agreement by the Seller will not violate any
      order of any court or governmental body having competent jurisdiction or
      any law or regulation that applies to the Seller.

            5. No action, suit or proceeding against the Seller before any
      court, administrative agency or arbitrator, individually or collectively
      would reasonably be expected to materially and adversely affect the Buyer.
      Upon reasonable request, the Seller will review any action, suit or
      proceeding against the Seller with the Buyer to confirm the accuracy of
      this representation.

            6. The Seller is knowledgeable, sophisticated and experienced in
      making, and is qualified to make, decisions like the decision involved in
      the sale of the Accounts, the Seller has made its own review of the
      Accounts and the Seller understands the terms and conditions of the sale
      of the Accounts.

            7. The Seller has not employed any investment banker, broker or
      finder in connection with the transaction contemplated by the Agreement
      who might be entitled to a fee or commission upon consummation of such
      transaction.

            8.    The location of the Seller's chief place of business and chief
      executive office is _______________________.

                                      -2-
<PAGE>   24

            9. Each Account is an account or a general intangible, as such term
      is defined in Article 9 of the UCC; [and no Account is evidenced by an
      instrument, as such term is defined in Section 9-106 of the UCC].

                                      -3-
<PAGE>   25

                                 EXHIBIT 3.13(b)

                NOTICE OF PROPOSED SALE OF NON-BANKRUPT ACCOUNTS

      This NOTICE OF PROPOSED SALE is given by MIDLAND CREDIT MANAGEMENT, INC.,
as servicer (the "Servicer"), pursuant to Section 3.13(b) of that certain
Indenture and Servicing Agreement, dated as of December 14, 1999, as amended,
supplemented or otherwise modified (the "Indenture"), among Servicer, MIDLAND
RECEIVABLE 99-1 CORPORATION, as Issuer, WELLS FARGO BANK OF MINNESOTA, NATIONAL
ASSOCIATION, FKA NORWEST BANK MINNESOTA, A NATIONAL ASSOCIATION, as Trustee and
Back-up Servicer, and ASSET GUARANTY INSURANCE COMPANY, as Note Insurer. All
capitalized terms that are not defined herein shall have the meaning assigned to
such terms in the Indenture.

      1. The Servicer proposes to sell Receivables (the "Sale Receivables")
pursuant to Section 3.13(b) of the Indenture.

      2. The pool identification number of the Sale Receivables and the date of
MCM's purchase for each of the Sale Receivables is as set forth on Exhibit A
attached hereto.

      3. Attached as Exhibit B to this Notice of Proposed Sale is a true and
complete copy of the offering information distributed to the prospective
purchaser of the Sale Receivables.

      4.    The sale price for the Sale Receivables is $_______________.

      5.    The proposed date for the sale is _________________.

      6.    The original purchase price paid by Midland Credit Management, Inc.
for the Sale Receivables was $__________________.

      7.    The terms and conditions of the sale are as set forth on Exhibit C
attached hereto.

      8.    The only representations to be made by the Issuer in connection with
the sale is as set forth on Exhibit D attached hereto.

      Executed this _____ day of ___________.

                                             MIDLAND CREDIT MANAGEMENT, INC.

                                             By:  _____________________________
                                             Its: _____________________________

                                      -4-
<PAGE>   26

                                 EXHIBIT 9.01(f)

                                 NET WORTH TABLE

<TABLE>
<CAPTION>
                      -----------------------------------
                         From and After        Amount
                      -----------------------------------
<S>                                        <C>
                      September 31, 2000   $ 13,600,000
                      -----------------------------------
                      December 31, 2000      12,900,000
                      -----------------------------------
                      March 31, 2001         11,700,000
                      -----------------------------------
                      June 31, 2001          10,000,000
                      -----------------------------------
                      September 31, 2001      7,300,000
                      -----------------------------------
</TABLE>

                                      -5-
<PAGE>   27

                                 EXHIBIT 9.01(h)

                           CUMULATIVE NET COLLECTIONS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------
 COLLECTION PERIOD        AMOUNT       3-MONTH CUMULATIVE    TOTAL COLLECTIONS
                                           COLLECTIONS
------------------------------------------------------------------------------
<S>                     <C>                <C>                    <C>
    January 2001        $1,374,180                 --             $ 1,374,180
------------------------------------------------------------------------------
   February 2001        $1,348,830                 --             $ 2,723,010
------------------------------------------------------------------------------
     March 2001         $1,331,734         $4,054,744             $ 4,054,744
------------------------------------------------------------------------------
     April 2001         $1,317,393         $3,997,957             $ 5,372,137
------------------------------------------------------------------------------
      May 2001          $1,308,641         $3,957,768             $ 6,680,778
------------------------------------------------------------------------------
     June 2001          $1,289,438         $3,915,472             $ 7,970,216
------------------------------------------------------------------------------
     July 2001          $1,280,912         $3,878,991             $ 9,251,128
------------------------------------------------------------------------------
    August 2001         $1,266,442         $3,836,792             $10,517,570
------------------------------------------------------------------------------
   September 2001       $1,251,621         $3,798,975             $11,769,191
------------------------------------------------------------------------------
    October 2001        $1,239,954         $3,758,017             $13,009,145
------------------------------------------------------------------------------
   November 2001        $1,227,995         $3,719,570             $14,237,140
------------------------------------------------------------------------------
   December 2001        $1,215,772         $3,683,721             $15,452,912
------------------------------------------------------------------------------
    January 2002        $1,203,190         $3,646,957             $16,656,102
------------------------------------------------------------------------------
   February 2002        $1,190,081         $3,609,043             $17,846,183
------------------------------------------------------------------------------
     March 2002         $1,179,410         $3,572,681             $19,025,593
------------------------------------------------------------------------------
     April 2002         $1,161,907         $3,531,398             $20,187,500
------------------------------------------------------------------------------
      May 2002          $1,137,925         $3,479,242             $21,325,425
------------------------------------------------------------------------------
     June 2002          $1,115,322         $3,415,154             $22,440,747
------------------------------------------------------------------------------
     July 2002          $1,103,914         $3,357,161             $23,544,661
------------------------------------------------------------------------------
    August 2002         $1,113,929         $3,333,165             $24,658,590
------------------------------------------------------------------------------
   September 2002       $1,110,595         $3,328,438             $25,769,185
------------------------------------------------------------------------------
    October 2002        $  549,286         $2,773,810             $26,318,471
------------------------------------------------------------------------------
   November 2002        $  508,388         $2,168,269             $26,826,859
------------------------------------------------------------------------------
   December 2002        $  467,372         $1,525,046             $27,294,231
------------------------------------------------------------------------------
    January 2003        $  426,244         $1,402,004             $27,720,475
------------------------------------------------------------------------------
   February 2003        $  385,010         $1,278,626             $28,105,485
------------------------------------------------------------------------------
     March 2003         $  343,677         $1,154,931             $28,449,162
------------------------------------------------------------------------------
     April 2003         $  302,249         $1,030,936             $28,751,411
------------------------------------------------------------------------------
      May 2003          $  260,733         $  906,659             $29,012,144
------------------------------------------------------------------------------
     June 2003          $  220,480         $  783,462             $29,232,624
------------------------------------------------------------------------------
     July 2003          $  182,908         $  664,121             $29,415,532
------------------------------------------------------------------------------
    August 2003         $  146,771         $  550,159             $29,562,303
------------------------------------------------------------------------------
   September 2003       $  113,848         $  443,527             $29,676,151
------------------------------------------------------------------------------
    October 2003        $   83,006         $  343,625             $29,759,157
------------------------------------------------------------------------------
   November 2003        $   57,239         $  254,093             $29,816,396
------------------------------------------------------------------------------
   December 2003        $   35,187         $  175,432             $29,851,583
------------------------------------------------------------------------------
    January 2004        $   18,561         $  110,987             $29,870,144
------------------------------------------------------------------------------
   February 2004        $    7,176         $   60,924             $29,877,320
------------------------------------------------------------------------------
     March 2004         $      198         $   25,935             $29,877,518
------------------------------------------------------------------------------
     April 2004         $        0         $    7,374             $29,877,518
------------------------------------------------------------------------------
      May 2004          $        0         $      198             $29,877,518
------------------------------------------------------------------------------
</TABLE>

                                      -6-
<PAGE>   28

                           EXHIBIT 9.01(H) (CONTINUED)

                           CUMULATIVE NET COLLECTIONS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------
 COLLECTION PERIOD        AMOUNT       3-MONTH CUMULATIVE  TOTAL COLLECTIONS
                                           COLLECTIONS
------------------------------------------------------------------------------
<S>                     <C>                <C>                    <C>
     June 2004              $0                 $0                 $29,877,518
------------------------------------------------------------------------------
     July 2004              $0                 $0                 $29,877,518
------------------------------------------------------------------------------
    August 2004             $0                 $0                 $29,877,518
------------------------------------------------------------------------------
</TABLE>

                                      -7-<PAGE>   1
                                                                   Exhibit 10.33

AMENDMENT NO. 3 TO THE DEVELOPMENT, MARKETING AND DISTRIBUTION AGREEMENT BETWEEN
SENSORY SCIENCE CORPORATION AND LOEWE OPTA GMBH DATED JANUARY 1, 1997

         This Amendment No. 3 to the Development, Marketing and Distribution
Agreement (the "Amendment") is entered into as of the 11th day of September,
2000, by and between Loewe Opta GmbH, a German corporation ("Loewe"), and
Sensory Science Corporation a Delaware (U.S.A.) Corporation ("SSC"), in light of
the following:

         Fact One: Loewe and SSC have previously entered into that certain
Development, Marketing and Distribution Agreement, dated as of January 1, 1997
(the "Agreement") which has prior hereto been amended twice.

         Fact Two: Loewe and SSC desire to amend the Agreement for a third time
as provided for and on the conditions set forth herein.

         NOW, THEREFORE, Loewe and SSC hereby amend and supplement the Agreement
as follows:

         1. Definitions. All initially capitalized terms used in this Amendment
shall have the meanings given to them in the Agreement unless specifically
defined herein.

         2. Amendments.

         (A) The first paragraph of Section 17 (Duration and Term of Agreement),
is hereby deleted in its entirety and replaced with the following paragraph:

This Agreement shall be effective as of January 1, 1997 and shall, subject to
the provisions for earlier termination stated in Section 18 below, continue in
force until January 1, 2002. The Agreement shall be automatically renewed for an
additional three (3) year period if neither party has provided written notice to
the other prior to September 1, 2001 of its intention to terminate the
Agreement.

         (B) Section 1 (Definitions) is hereby amended by modifying the
definition of "Territory" thereunder to exclude the countries of Canada and
Mexico. For the exclusion of Canada and Mexico from the Territory, SSC receives
the benefits described in Sections (C) and (D) of this document, without any
additional cash payments by Loewe.

         (C) Section 16 (Toolings) is hereby amended by adding the following
provisions thereto: shall be deleted in their entirety and be replaced with the
following provisions:

(i) All future tool payments, effective with payments provided for in
subparagraph (ii) hereof, shall be contracted and made by Loewe and shall be
their sole property and

                                       1
<PAGE>   2
                                                                   Exhibit 10.33

may be used for purposes other than those set forth in this Agreement; including
for T.V. sets used outside the United States.

(ii) As of the date of this Amendment No. 3, all costs of tooling as set forth
in Schedule 4 and as otherwise agreed upon by the parties shall be paid by
Loewe. Loewe explicitly waives without prejudice its receivable against SSC
according to Schedule 4 of the Development, Marketing, and Distribution
Agreement in the amount of DM 450,000 due in 1998.

Loewe and SSC herein agree that the remaining tooling payments for the 38" T.V.s
shall be timely paid by Loewe in the approximate amount $700,000. US which
includes an estimate of $100,000. for tooling modifications relating to a "flat
screen model". The Loewe payment of such $700,000. of toolings costs is subject
to Loewe's receipt of a copy of SSC's contract with the tool maker, and SSC's
notification to the toolmaker prior to the execution of this amendment that
Loewe will pay the remaining tooling payments of approximately $700,000. and,
therefore, Loewe will become the sole owner of the tooling. Furthermore, SSC
explicitly waives the rights resulting from the payment of $300,000. to the
toolmaker, and Loewe requires a written confirmation by the toolmaker that
ownership of the tooling will pass to Loewe upon payment of the remaining
balance. Additional tooling expenses for U.S. T.V. sets may be passed on to SSC
through adjustment of Loewe's sales prices; if tooling is used exclusively in
the United States, there will be a $70.00 U.S. surcharge per set (assuming total
volume of 10,000 units) to SSC; provided, however, that if such T.V. sets are
also usable outside the U.S., the U.S. surcharge (assuming total volume of
14,000 units) shall be reduced to $50.00 per T.V. set.

         (D) A new paragraph 22.3 is added to Section 22 (Miscellaneous) as
follows:

22.3 Loewe agrees to buy back the following indicated Product inventory in the
aggregate sum of approximately $1,349,960. US to be composed of the following
T.V. model Products at the indicated book value prices:

Proposed 750 Arcadas sets X $1,319.00 per set = $990,750., 230 sets of Planus
black matte T.V. models at a per set purchase price of $1,307.00 = $300,610. and
50 sets of Calides X $1,172.00 = $58,600., each in order that the total Product
buy back hereunder aggregates the sum of $1,349,960 US; such Product buy back
purchases to be made within 3 (three) weeks of the date of execution of this
Amendment No. 3 provided the following conditions shall apply:

(a) exclusivity protection to SSC is waived with respect to such repurchased
Products so long as the repurchased Products are not sold in the United States
to a customer in direct competition with SSC's distribution channels.

(b) SSC will obtain and forward to Loewe a written consent from Congress Bank
with respect to the release of their security interest in the subject Products.

(c) All repurchased Products are subject to prior inspection by Loewe before
purchase thereof and such Products will be delivered, at SSC's cost for freight
and insurance if any, to Loewe's designated and approved warehouse, storage and
insurance cost to be

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                                                                   Exhibit 10.33

borne by Loewe.

For future purchases of SSC out of the above Product inventory, the following
prices shall apply: Arcada $748 per set, Planus $1,036 per set and Calidas $715
per set.

3. Counterparts; Effectiveness. This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which
when so executed and delivered shall be deemed to be an original. All such
counterparts, taken together, shall constitute but one and the same Amendment.
This Amendment shall become effective upon the execution of a counterpart of
this Amendment by each of the parties hereto.

IN WITNESS WHEREOF, this Agreement has been duly executed by the parties as of
the 11th day of September, 2000.

SENSORY SCIENCE CORPORATION, a Delaware (United States) corporation

By: /s/ Roger B. Hackett
   ------------------------
   Roger B. Hackett
   Its: Chairman of the Board, Chief
        Executive Officer and President

LOEWE OPTA GmbH, A Federal Republic of Germany Corporation

By:  /s/ Rainer Hecker
   ------------------------
   Dr. Rainer Hecker
   Its: Chairman of the Board of Management

By:  /s/ Klaus Deisler
   ------------------------
   Mr. Klaus Deisler
   Its: Managing Director

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