Second Addendum to Stipulation of Settlement Among Class, Estate Parties, Graham Defendants, Cole Family, and Taylor Defendants

Summary

This agreement is a second addendum to a prior settlement between the class members, the Estate Parties, the Graham Defendants, the Cole Family, and the Taylor Defendants, all involved in a securities class action related to Reliance Acceptance Group, Inc. The addendum extends the deadline for satisfying certain settlement conditions from April 8, 2002, to September 1, 2002. All other terms of the original settlement remain unchanged. The addendum is effective immediately and requires written agreement for any further amendments.

EX-10.49 53 c69715ex10-49.txt EX-10.49 SECOND ADDENDUM TO STIPULATION OF SETTLEM EXHIBIT 10.49 SECOND ADDENDUM TO THE STIPULATION OF SETTLEMENT BY AND AMONG THE CLASS, THE ESTATE PARTIES, THE GRAHAM DEFENDANTS, THE COLE FAMILY, AND THE TAYLOR DEFENDANTS WHEREAS, certain class action lawsuits filed in Texas and Illinois arising out of the sale and voting of the securities of Reliance Acceptance Group, Inc. were transferred to the United States District Court for the District of Delaware for coordinated pretrial proceedings by order of the Judicial Panel on Multidistrict Litigation; WHEREAS, these actions are pending before the Delaware District Court under the caption In re Reliance Securities Litigation, MDL Docket No. 1304, Civil Action No. 99-858-RRM; WHEREAS, the Settling Parties have executed the Stipulation of Settlement, dated as of October 10, 2001 (the "Estate-D&O Settlement Stipulation"), that has been entered into by the Lead Plaintiffs (on behalf of themselves and all Class Members), the Estate Parties, the Graham Defendants, the Cole Family, and the Taylor Defendants; WHEREAS, the Settling Parties have executed the First Addendum to the Estate-D&O Settlement Stipulation dated as of January 1, 2002 ("First Addendum") for the purpose of adding Thomas L. Barlow as a party to the Estate-D&O Settlement Stipulation on the terms and conditions set forth therein; WHEREAS, the 180 Day Period allotted for the satisfaction of all of the conditions specified in Section IV.4.1 of the Estate-D&O Settlement Stipulation shall expire on April 8, 2002; WHEREAS, it does not appear that all of the conditions specified in Section IV.4.1 of the Estate-D&O Settlement Stipulation shall be met by April 8, 2002; 1 WHEREAS, the Settling Parties must consent in writing to extend the 180 Day Period, which consent may not be unreasonably withheld; WHEREAS, the Settling Parties now wish to further amend the Estate-D&O Settlement Stipulation by executing this Second Addendum to the Estate-D&O Settlement Stipulation ("Second Addendum") to extend the 180 Day Period; and WHEREAS, all defined terms not otherwise defined herein shall have the same meanings as set forth in the Estate-D&O Settlement Stipulation as modified by the First Addendum; NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 1. This Second Addendum is dated as of April 5, 2002. 2. The Settling Parties agree as follows with respect to the Estate-D&O Settlement Stipulation: A. This Second Addendum shall constitute the second amendment to the Estate-D&O Settlement Stipulation pursuant to Section IV.8.9 thereof. This Second Addendum is a material and integral part of the Estate-D&O Settlement Stipulation and is fully incorporated therein by this reference. B. Pursuant to Section IV.4.2 of the Estate-D&O Settlement Stipulation, the 180 Day Period allotted for the satisfaction of all of the conditions specified in Section IV.4.1 of the Estate- D&O Settlement Stipulation shall be extended until 12:01 a.m. (C.D.T.) on September 1, 2002. C. This Second Addendum along with the First Addendum and those agreements described at Section IV.8.10 of the Estate-D&O Settlement Stipulation (collectively, the "Agreements") constitute the entire agreement between the parties to the Estate-D&O Settlement Stipulation. Except 2 as otherwise contained in the Agreements, no representations, warranties, or inducements have been made to any party other than the representations, warranties, and covenants contained and memorialized in the Agreements. 3. The terms of this Second Addendum shall be effective immediately. 4. Except as otherwise amended herein, the terms of the Agreements, including without limitation any conditions precedent or subsequent to the effectiveness thereof, shall be unchanged. 5. This Second Addendum may be amended or modified only by a written instrument signed by or on behalf of all the parties hereto; provided, however, that the terms of Section IV.8.9 of the Estate-D&O Settlement Stipulation shall fully apply to any amendments to this Addendum. 6. This Second Addendum may be executed in one or more counterparts. All executed counterparts and each of them shall be deemed to be one and the same instrument. Counsel for the parties hereto shall exchange among themselves signed counterparts of this Second Addendum. 7. All counsel and any other Person executing this Second Addendum represent and warrant that they have the full authority to take appropriate action required or permitted to be taken hereunder to effectuate its terms (including, without limitation, execution of this Second Addendum). 8. The parties hereto agree that they shall take such additional actions and/or execute such additional documents, statements, releases, instruments or assurances as may be reasonably necessary to effectuate the terms of this Second Addendum provided that such additional actions, documents, statements, releases, instruments or assurances are generally consistent with the material terms and conditions set forth herein. 3 IN WITNESS WHEREOF, the parties hereto have caused this Second Addendum to be executed by their duly authorized attorneys. COUNSEL FOR LEAD PLAINTIFFS AND THE CLASS DAVID B. KAHN & ASSOCIATES, LTD. By: /s/ Mark E. King ------------------------------------------------------- Mark E. King David B. Kahn Mark E. King Elissa C. Chase One Northfield Plaza, Suite 100 Northfield, Illinois 60093 Telephone: (847) 501-5083 Facsimile: (847) 501-5086 Class Co-Lead Counsel MILBERG WEISS BERSHAD HYNES & LERACH LLP By: /s/ Keith F. Park ------------------------------------------------------- Keith F. Park William S. Lerach Helen J. Hodges Keith F. Park 401 B Street, Suite 1700 San Diego, California 92101-4297 Telephone: (619) 231-1058 Facsimile: (619) 231-7423 Class Co-Lead Counsel COUNSEL FOR THE ESTATE REPRESENTATIVE ROBERT F. COLEMAN & ASSOCIATES By: /s/ Robert F. Coleman ------------------------------------------------------- Robert F. Coleman Robert F. Coleman Steven R. Jakubowski Sean B. Crotty Cassandra A. Crotty 77 West Wacker Drive, Suite 4800 Chicago, Illinois 60601 Telephone: (312) 444-1000 Facsimile: (312) 444-1028 Counsel for the Estate Parties 4 COUNSEL FOR THE GRAHAM DEFENDANTS MCDERMOTT WILL & EMERY By: /s/ Steven P. Handler ------------------------------------------------------- Steven P. Handler Steven P. Handler Steven H. Hoeft David S. Rosenbloom MCDERMOTT, WILL & EMERY 227 West Monroe Street Chicago, Illinois 60606 Tel: (312) 372-2000 Fax: (312) 984-7700 Counsel for the Taylor Defendants JENNER & BLOCK By: /s/ David J. Bradford ------------------------------------------------------- David J. Bradford David J. Bradford JENNER & BLOCK One IBM Plaza, 47th Floor Chicago, Illinois 60611 Tel: (312) 222-9350 Fax: (312) 527-0484 Counsel for Melvin E. Pearl and the Voluntarily Dismissed Defendants LAW OFFICE OF JONAH ORLOFSKY By: /s/ Jonah Orlofsky ------------------------------------------------------- Jonah Orlofsky LAW OFFICE OF JONAH ORLOFSKY 122 South Michigan Avenue Suite 1850 Chicago, Illinois 60603 Tel: (312) 566-0455 Fax: (312) 427-1850 Counsel for Certain of the Taylor Defendants in the Alstrin Litigation WILDMAN HARROLD ALLEN & DIXON By: /s/ Thomas I. Matyas ------------------------------------------------------- Thomas I. Matyas Thomas I. Matyas Richard M. Hoffman WILDMAN HARROLD ALLEN & DIXON 225 West Wacker Drive Suite 3000 Chicago, Illinois 60606 Tel: (312) 201-2000 Fax: (312) 201-2555 Counsel for the Cole Family in the Graham Litigation and the Bankruptcy Cases 5 MUNSCH, HARDT, KOPF & HARR, P.C. By: /s/ Dean W. Ferguson ------------------------------------------------------- Dean W. Ferguson Dean W. Ferguson David Matka MUNSCH, HARDT, KOPF & HARR, P.C. 4000 Fountain Place 1445 Ross Avenue Dallas, Texas 75202 Tel: (214) 855-7500 Fax: (214) 855-7584 Counsel for the Cole Family in the Delaware Chancery Action and the Alstrin Litigation BELL, BOYD & LLOYD By: /s/ Stephen J. O'Neil ------------------------------------------------------- Stephen J. O'Neil Stephen J. O'Neil John W. Rotunno BELL, BOYD & LLOYD 70 West Madison Street Suite 3300 Chicago, Illinois 60602 Tel: (312) 372-1121 Fax: (312) 372-2098 Counsel for Solway F. Firestone, Dean L. Griffith, Ross J. Mangano, and William S. Race ROSS & HARDIES By: /s/ Steven R. Smith ------------------------------------------------------- Steven R. Smith Steven R. Smith ROSS & HARDIES 150 North Michigan Avenue, Suite 2500 Chicago, Illinois 60601 Tel: (312) 558-1000 Fax: (312) 750-8600 Counsel for Howard B. Silverman D'ANCONA & PFLAUM LLC By: /s/ George W. Spellmire, Jr. ------------------------------------------------------- George W. Spellmire, Jr. George W. Spellmire, Jr. John Everhardus D'ANCONA & PFLAUM LLC 111 East Wacker Drive, Suite 2800 Chicago, Illinois 60601 Tel: (312) 602-2000 Fax: (312) 602-3041 Counsel for James D. Dolph 6 MECKLER BULGER & TILSON By: /s/ James H. Kallianis, Jr. ------------------------------------------------------- James H. Kallianis, Jr. Bruce R. Meckler James H. Kallianis, Jr. Christopher E. Kentra MECKLER BULGER & TILSON 233 South Wacker Drive 8200 Sears Tower Chicago, Illinois 60606 Tel: (312) 474-7931 Fax: (312) 474-7898 Counsel for Thomas Barlow 7