Beautiful certificate #5 from Next Card
issued in 1999. This historic document was printed by Security-Columbian Bank Note and has an
ornate border around it with a vignette of the company logo. This item has the printed signatures of the Company's President and Secretary.
The Company was a leading Internet-based provider of consumer credit. The Company
was the first to offer an online approval system for a Visa(R) card and to
provide interactive, customized offers to credit card applicants. The Company
combined expertise in consumer credit, an exclusive Internet focus and
sophisticated direct marketing techniques with the aim of attracting profitable
customer segments on the Internet. The Company's primary product, credit cards
which were offered through the Company's wholly owned subsidiary, NextBank, N.A.,
were marketed to consumers exclusively through its website, www.nextcard.com.
Company offered credit card customers a unique combination of convenience,
customization, shopping enhancements and online customer service. The Company's
credit cards were used for both online and offline purchases.
March 12, 2002 Press Release —NextCard, Inc. (NASDAQ: NXCD) (the “Company”) announced today that it has signed a Restated and Amended Service Agreement (the “Agreement”) with the Federal Deposit Insurance Corporation (the “FDIC-R”), in its capacity as Receiver for NextBank, N.A. (“NextBank”), the Company’s former banking subsidiary. Pursuant to the Agreement, the Company transferred its portfolio servicing operations to the FDIC-R and agreed to continue providing, for a minimum of three months, certain administrative services and a nonexclusive license for the Company’s intellectual property. The Agreement provides for the FDIC-R to have uninterrupted access to the Company’s technology and proprietary systems during the period of time believed necessary for the FDIC-R to market NextBank’s credit card portfolio.
In exchange for the Company’s commitment to continue to provide technology support for the NextBank portfolio, the FDIC-R has agreed to pay certain ongoing fees and retention benefits necessary to maintain this support . The FDIC-R has the option to continue the agreement on a monthly basis after May 31, 2002 in return for the Company’s agreement to continue providing support. The FDIC has also made a non-recourse loan to the Company of approximately $1 million. The loan is non-interest bearing, will mature in six months and is secured by an assignment in favor of the FDIC-R of all of the Company’s right, title and interest in and to the security backing a letter of credit, in like amount as the loan, executed in favor of MasterCard International.
In connection with the Agreement, the Company has reduced its number of employees by 546 persons (approximately 90% of the Company’s workforce), leaving 64 persons remaining employed by the Company. Of the employees terminated, 465 persons have been offered temporary employment with a third-party contractor on behalf of the FDIC-R. The movement of the Company’s workforce to the supervision of the FDIC-R is intended to ensure continuous provision of customer and portfolio servicing with respect to the NextBank credit card assets.
Separately, the Company announced that it has voluntarily filed a request with NASDAQ to delist its stock from the NASDAQ Market System. The NASDAQ has advised the Company that its delisting will take place on or about March 18, 2002. The Company decided to request delisting because it is unable to meet the NASDAQ’s continued listing requirements. The Company has also been removed from the NASDAQ Financial 100 Index