<PAGE>

                                                                    Exhibit 10.6

                          WORLD ACCEPTANCE CORPORATION



                               BOARD OF DIRECTORS
                           DEFERRED COMPENSATION PLAN

                                  Plan Document
                                  -------------
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE I     PURPOSE OF PLAN
   1.1        Purpose of Plan                                                 1

ARTICLE II    DEFINITIONS
   2.1        Account                                                         1
   2.2        Beneficiary                                                     1
   2.3        Board                                                           1
   2.4        Change in Control                                               1
   2.5        Committee                                                       2
   2.6        Company                                                         2
   2.7        Compensation                                                    2
   2.8        Deferred Stock Unit                                             2
   2.9        Dividend Date                                                   2
   2.10       Effective Date                                                  2
   2.11       Eligible Director                                               2
   2.12       Fair Market Value Per Share                                     2
   2.13       Nonqualified Deferred Compensation                              2
   2.14       Participant                                                     2
   2.15       Participant Enrollment and Election Form                        2
   2.16       Plan                                                            2
   2.17       Plan Year                                                       2

RTICLE III    ELIGIBILITY AND PARTICIPATION
   3.1        Eligibility Requirements                                        3

ARTICLE IV    DEFERRAL OF COMPENSATION
   4.1        Nonqualified Deferral Elections                                 3
   4.2        Failure to Elect                                                3

ARTICLE V     PLAN ACCOUNTS
   5.1        Establishment of Accounts                                       3

ARTICLE VI    ALLOCATION OF FUNDS
   6.1        Account Earnings                                                4
   6.2        Interest Credit                                                 4
   6.3        Deferred Stock Credit                                           4
</TABLE>

                                       i
<PAGE>

                                TABLE OF CONTENTS
                                -----------------
                                    (cont'd)
<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE VII      PAYMENT OF BENEFITS
    7.1          Payment of Benefits                                          5
    7.2          Beneficiary Designation                                      5
    7.3          Change in Control                                            5

ARTICLE VIII     COMMITTEE
    8.1          Membership of the Committee                                  5
    8.2          Duties of the Committee                                      6

 ARTICLE IX      ADMINISTRATION
    9.1          Administrative Authority                                     6
    9.2          Uniformity of Discretionary Acts                             7
    9.3          Litigation                                                   7
    9.4          Payment of Administration Expenses                           7
    9.5          Liability of Committee, Indemnification                      7
    9.6          Expenses                                                     7
    9.7          Taxes                                                        7

 ARTICLE X       MISCELLANEOUS
    10.1         Alienation of Benefits                                       7
    10.2         General Creditor Status                                      8
    10.3         Governing Law                                                8
    10.4         Binding on Successors                                        8
    10.5         No Guarantee of Employment                                   8
    10.6         Construction                                                 8

 ARTICLE XI      AMENDMENT, TERMINATION, OR MERGER OF PLAN
    11.1         Amendment                                                    8
    11.2         Termination                                                  8
    11.3         Notice of Amendment of Termination                           8

ARTICLE XII      CLAIMS PROCEDURE                                             9
</TABLE>

                                      ii
<PAGE>

                                    ARTICLE I
                                 PURPOSE OF PLAN

1.1  Purpose of Plan. World Acceptance Corporation ("WAC" or "the Company"),
     ---------------
     intends and desires by the adoption of this Deferred Compensation Plan
     ("the Plan") to recognize the value to the Company of the services
     rendered by Eligible Directors covered by the Plan and to encourage and
     assure their continued service with the Company by making more adequate
     provisions for their future retirement security.

                                 ARTICLE II
                                 DEFINITIONS

2.1  Account. "Account" means those separate Bookkeeping Accounts established
     -------
     and maintained by the Company under the Plan in the name of each
     Participant as required pursuant to the provisions of Article V.

2.2  Beneficiary. "Beneficiary" means the person or persons designated by a
     -----------
     Participant to receive any benefits hereunder in the event of the death
     of the Participant, or in the absence of such a designated Beneficiary,
     the Participant's estate.

2.3  Board.  "Board" means the Board of Directors of the Company.
     -----

2.4  Change in Control. "Change in Control" means the occurrence of any of the
     -----------------
     following events: (i) any person or entity or two or more persons or
     entities acting in concert shall have acquired beneficial ownership,
     directly or indirectly, of, or shall have acquired by contract or
     otherwise, or shall have entered into a contract or arrangement that,
     upon consummation, will result in its or their acquisition of, or control
     over, shares of WAC' s common stock, no par value (or other securities
     convertible into such common stock), representing 25% or more of the
     combined voting power of all outstanding shares of common stock; (ii)
     during any period of up to 24 consecutive months, commencing after the
     Effective Date of this Plan, individuals who at the beginning of such
     24-month period were directors of WAC (together with any new director
     whose election by WAC's Board of Directors or whose nomination for
     election by WAC's shareholders was approved by a vote of at least
     two-thirds of the directors then still in office (or at least two-thirds
     of the members of any nominating committee of directors) who either were
     directors at the beginning of such period or whose election of nomination
     for election was previously so approved) cease for any reason to
     constitute a majority of the directors of WAC then in office; (iii) the
     Company is merged or consolidated with another corporation and, as a
     result of such merger of consolidation, outstanding securities
     representing less than 50% of the voting power of the surviving or
     resulting corporation shall then be owned in the aggregate by the former
     stockholders of WAC other than affiliates, within the meaning of the
     Securities Exchange Act of 1934, as amended, of any party to such merger
     or consolidation; or (iv) the Company transfers all or substantially all
     of its assets to another corporation or entity that is not a wholly owned
     subsidiary of WAC. As used herein, "beneficial ownership" shall have the
     meaning provided in Rule 13d-3 of the Securities and Exchange Commission
     under the Securities Exchange Act of 1934.

                                       1
<PAGE>

2.5   Committee. "Committee" means the Committee charged with managing and
      ---------
      administrating the Plan and the individual Participant Enrollment and
      Election Forms in accordance with Articles VIII and IX hereof.

2.6   Company.  "Company" means World Acceptance Corporation., or any successor
      -------
      company as a result of merger, consolidation, liquidation, transfer of
      assets, or other reorganization.

2.7   Compensation. "Compensation" means payment for services provided by an
      ------------
      Eligible Director to the Company in the form of retainer fees, meeting
      fees, or other such fees, which would otherwise be paid in cash.

2.8   Deferred Stock Unit. "Deferred Stock Unit" means a phantom stock unit
      -------------------
      having value at any time equivalent to the Fair Market Value Per Share of
      the Company's common stock, no par value.

2.9   Dividend Date.  "Dividend Date" means each date, if any, on which cash or
      -------------
      other dividends are paid on the Company's common stock.

2.10  Effective Date.  "Effective Date" means the date on which the Company
      --------------
      adopts the Plan.

2.11  Eligible Director.  "Eligible Director" means a person not employed by
      -----------------
      the Company, but who is a member of the Board and receives Compensation.

2.12  Fair Market Value Per Share. "Fair Market Value Per Share" means on any
      ---------------------------
      date the average of the closing sales prices per share for the Company's
      common stock, no par value, over the preceding twenty (20) days on which
      common stocks are traded on the NASDAQ Stock Market.

2.13  Nonqualified Deferred Compensation. "Nonqualified Deferred Compensation"
      ----------------------------------
      means Compensation that is due to be earned and which would otherwise be
      paid to a Participant, which the Participant elects to defer under the
      Plan, and which is credited to an Account on behalf of a Participant.

2.14  Participant. "Participant" means any Eligible Director who is or may
      -----------
      become (or whose beneficiaries may become) eligible to receive a benefit
      under the Plan by executing a valid Participant Enrollment and Election
      Form.

2.15  Participant Enrollment and Election Form. "Participant Enrollment and
      ----------------------------------------
      Election Form" means the form on which an Eligible Director elects, prior
      to the period in which services are to be performed, to defer
      Compensation hereunder.

2.16  Plan.  "Plan" means the WAC Board of Directors Deferred Compensation Plan.
      ----

2.17  Plan Year.  "Plan Year" means the calendar year.
      ---------

                                       2
<PAGE>

                                   ARTICLE III
                          ELIGIBILITY AND PARTICIPATION

3.1  Eligibility Requirements. In order to be eligible for participation in the
     ------------------------
     Plan, a Participant must be an Eligible Director. Participation in the Plan
     is voluntary. In order to participate, an otherwise Eligible Director must
     execute a valid Participant Enrollment and Election Form in such manner as
     the Committee may require.


                                  ARTICLE IV
                           DEFERRAL OF COMPENSATION

4.1   Nonqualified Deferral Elections. A Participant may elect to defer all or
      -------------------------------
      any part of his Compensation during any Plan Year by use of a Participant
      Enrollment and Election Form submitted to the Committee no later than the
      last day of the last month immediately preceding such Plan Year. Once
      made, a deferral election for any Plan Year shall be irrevocable for such
      Plan Year.

      A Participant may change the amount of his deferred Compensation by
      delivering to the Committee prior to the beginning of any subsequent Plan
      Year a new Participant Enrollment and Election Form, with such change
      being first effective for Compensation to be earned in such subsequent
      Plan Year. Once made, an election shall continue until changed by a
      Participant on a new Participant Enrollment and Election Form delivered
      to the Committee.

4.2   Failure to Elect. A Participant failing to return a completed Participant
      ----------------
      Enrollment and Election Form to the Committee on or before the specified
      due date for any Plan Year shall be deemed to have elected not to defer
      receipt of his Compensation with respect to such Plan Year.

                                   ARTICLE V
                                 PLAN ACCOUNTS

5.1   Establishment of Accounts. There shall be established and maintained by
      -------------------------
      the Company separate Accounts in the name of each Participant to which
      the Company shall credit the amount of Compensation deferred by the
      Participant under the Plan. For each Plan Year, the amount of
      Compensation credited to a Participant's Account shall equal the amount
      elected by the Participant on the Participant Enrollment and Election
      Form that is effective for that Plan Year. The Company shall credit the
      deferred amount of Compensation to the Participant's Account at the time
      the amount would otherwise have been paid.

                                       3
<PAGE>

                                   ARTICLE VI
                               ALLOCATION OF FUNDS

6.1   Account Earnings.  Unless a Participant elects otherwise, each Account
      ----------------
      shall also be credited periodically with interest as set forth below.

6.2   Interest Credit. Interest will be calculated during each Plan Year on the
      ---------------
      outstanding balance of each Account at a per annum rate equal to the
      prime rate of the Harris Trust and Savings Bank on the applicable Plan
      Year. Interest will be credited to each Account on the last day of each
      Plan Year.

6.3   Deferred Stock Credit. If a Participant elects otherwise, such
      ---------------------
      Participant may allocate all or a portion of his Compensation into
      Deferred Stock Units, and the Company will credit his Account with that
      number of Deferred Stock Units equal to the deferred Compensation (or
      portion thereof) of such Participant, divided by the Fair Market Value
                                            ----------
      Per Share on the date such Compensation would have otherwise been paid.
      The value of any Deferred Stock Units in a Participant's Account will
      fluctuate based on changes from time to time in the Fair Market Value Per
      Share.

      If at any time any Deferred Stock Units are maintained in a Participant's
      Account, there shall be credited to such Account additional Deferred
      Stock Units on each Dividend Date. The number of such additional Deferred
      Stock Units shall be determined by (i) multiplying the total number of
      Deferred Stock Units (including fractional Deferred Stock Units) in the
      Account immediately prior to the Dividend Date by the amount of the
      dividend per share to be payable on such Dividend Date and (ii) dividing
      the product by the Fair Market Value Per Share on the Dividend Date. In
      the case of dividends payable on the Company's common stock other than in
      cash, the amount of the dividend per share shall be based on the fair
      market value of the property at the time of distribution of the dividend,
      as determined by the Committee.

      In the event of any change in the outstanding shares of common stock of
      the Company upon which the stock equivalency hereunder is based, by
      reason of a merger, consolidation, reorganization, recapitalization,
      stock dividend, stock split, combination or exchange of shares, or any
      other change in corporate structure, or in the event any dividend is paid
      in common shares of Company stock or other property, the number of
      Deferred Stock Units credited to an Account shall be equitably adjusted
      in such manner as the Committee shall determine to be fair under the
      circumstances.

                                       4
<PAGE>

                                   ARTICLE VII
                               PAYMENT OF BENEFITS

7.1   Payment of Benefits. All benefits payable under this Plan will be payable
      -------------------
      in cash. Except as otherwise provided herein, the benefits payable under
      this Plan on account of a Participant's termination of Board membership
      for any reason shall be paid to the Participant, or in the event of
      death, to the Participant's Beneficiary, in a cash lump sum no later than
      60 days after termination of Board membership. To the extent that any
      Deferred Stock Units are in a Participant's Account at a time when
      benefits would otherwise be payable under this Plan, the cash benefit
      represented by such Deferred Stock Units shall be equal to the number of
      Deferred Stock Units in such Account multiplied by the Fair Market Value
                                           ----------
      Per Share on the date of termination of Board membership or such other
      event requiring payment of benefits (including without limitation the
      occurrence of a Change in Control). The Participant may elect to receive
      0 to 100 percent of any cash benefit payable under this Plan within 60
      days after termination of Board membership and the remainder payable in
      equal annual installments over a five- year period, together with
      interest on unpaid amounts at the rate set forth in Section 6.2. Such
      election shall be made on a Participant Enrollment and Election Form. An
      election to defer payment of some or all of the cash benefits payable
      under this Plan beyond termination of Board membership must be made at
      least six (6) months prior to termination of Board service to be valid.

7.2   Beneficiary Designation. Each Participant may, from time to time, by
      -----------------------
      signing a form approved by the Committee, designate any legal or natural
      person or persons (who may be designated contingently or successively) to
      whom payments are to be made if the Participant dies before receiving
      payment of all amounts due hereunder. A Beneficiary designation form will
      be effective only after the signed form is filed with the Committee while
      the Participant is alive and will cancel all beneficiary designation
      forms signed and filed earlier. If the Participant fails to designate a
      Beneficiary as provided above, or if all designated Beneficiaries of the
      Participant die before the Participant or before complete payment of all
      amounts due hereunder, the Company shall pay the unpaid amounts to the
      legal representative of the estate of the last to die of the Participant
      and the Participant's designated Beneficiary.

7.3   Change in Control. In the event of a Change in Control, all benefits
      -----------------
      payable under this Plan shall be paid to the Participant as provided in
      Section 7.1 above within 60 days after the occurrence of such Change in
      -----------
      Control.


                                  ARTICLE VIII
                                    COMMITTEE

8.1    Membership of the Committee. The Committee shall consist of at least
       ---------------------------
       three people designated and appointed from time to time by the Board. Any
       member of the Committee may resign by notice in writing and filed with
       the Secretary of the Committee. Vacancies shall be filled promptly by the
       Board.

                                       5
<PAGE>

8.2   Duties of the Committee. The Company is the name fiduciary of the Plan.
      -----------------------
      The Committee, acting on behalf of the Company, shall adopt, administer,
      construe, and interpret this Plan and shall determine the amount, if any,
      due a Participant (or his Beneficiary) under this Plan. No member of the
      Committee shall be liable for any act done or determination made in good
      faith. In carrying out its duties herein, the Committee shall have
      discretionary authority to exercise all powers and to make all
      determinations, consistent with the terms of the Plan, in all matters
      entrusted to it, and its determinations shall be given deference and shall
      be final and binding on all interested parties.

                                  ARTICLE IX
                                ADMINISTRATION

9.1   Administrative Authority. Except as otherwise specifically provided
      ------------------------
      herein, the Committee shall have the sole responsibility for and the sole
      control of the operation and administration of the Plan, and shall have
      the power and authority to take all actions and to make all decisions and
      interpretations which may be necessary or appropriate in order to
      administer and operate the Plan, including, without limiting the
      generality of the foregoing, the power, duty, and responsibility to:

      (a)    Resolve and determine all disputes or questions arising under the
             Plan, including the power to determine the rights of Participants
             and Beneficiaries, and their respective benefits, and to remedy any
             ambiguities, inconsistencies, or omissions in the Plan.

      (b)    Adopt such rules of procedure and regulations as in its opinion
             may be necessary for the proper and efficient administration of
             the Plan and as are consistent with the Plan.

      (c)    Implement the Plan in accordance with its terms and the rules and
             regulations adopted as above.

      (d)    Make determinations concerning the crediting and distribution of
             Plan Accounts.

      (e)    Appoint any persons or firms, or otherwise act to secure
             specialized advice or assistance, as it deems necessary or
             desirable in connection with the administration and operation of
             the Plan, and the Committee shall be entitled to rely conclusively
             upon, and shall be fully protected in any action or omission taken
             by it in good faith reliance upon the advice or opinion of such
             firms or persons. The Committee shall have the power and authority
             to delegate from time to time by written instrument all or any part
             of its duties, powers, or responsibilities under the Plan, both
             ministerial and discretionary, as it deems appropriate, to any
             person or committee, and in the same manner to revoke any such
             delegation of duties, powers, or responsibilities. Any action of
             such person or committee in the exercise of such delegated duties,
             powers, or responsibilities shall have the same force and effect
             for

                                       6
<PAGE>

             all purposes hereunder as if such action had been taken by the
             Committee. Further, the Committee may authorize one or more persons
             to execute any certificate or document on behalf of the Committee,
             in which event any person notified by the Committee of such
             authorization shall be entitled to accept and conclusively rely
             upon any such certificate or document executed by such person as
             representing action by the Committee until such third person shall
             have been notified of the revocation of such authority.

9.2    Uniformity of Discretionary Acts. Whenever in the administration or
       --------------------------------
       operation of the Plan discretionary actions by the Committee are required
       or permitted, such actions shall be consistently and uniformly applied to
       all persons similarly situated, and no such action shall be taken that
       will discriminate in favor of any particular person or group of persons.

9.3    Litigation. Except as may be otherwise required by law, in any action or
       ----------
       judicial proceeding affecting the Plan, no Beneficiary shall be entitled
       to any notice or service of process, and any final judgment entered in
       such action shall be binding on all persons interested in, or claiming
       under, the Plan.

9.4    Payment of Administration Expenses. All reasonable expenses incurred in
       ----------------------------------
       the administration and operation of the Plan, including any taxes payable
       by the Company in respect of the Plan, shall be paid by the Company.

9.5    Liability of Committee, Indemnification. To the extent permitted by law,
       ---------------------------------------
       the Committee shall not be liable to any person for any action taken or
       omitted in connection with the interpretation and administration of this
       Plan unless attributable to its own bad faith or willful misconduct.

9.6    Expenses. The cost of the establishment of the Plan and the adoption of
       --------
       the Plan by Company, including but not limited to legal and accounting
       fees, shall be borne by Company.

9.7    Taxes. All amounts payable hereunder shall be reduced by any and all
       -----
       Federal, state, and local taxes imposed upon a Participant or his
       Beneficiary, which are required to be paid or withheld by Company. Any
       determination by the Company regarding applicable income tax withholding
       requirements shall be final and binding on the Participant.


                                    ARTICLE X
                                  MISCELLANEOUS

10.1   Alienation of Benefits. Benefits payable under this Plan shall not be
       ----------------------
       subject in any manner to alienation, sale, transfer, assignment, pledge,
       encumbrance, charge, garnishment, execution or levy of any kind, either
       voluntary or involuntary, and any attempt to alienate, sell or otherwise
       transfer or dispose of any interest shall be void.

                                       7
<PAGE>

10.2   General Creditor Status. Each Participant shall be regarded as a general
       -----------------------
       unsecured creditor of the Company with respect to any rights derived by
       the Participant from the existence of this Plan or any benefits due him.
       A Participants benefit under this plan are unfunded. No Participant shall
       have any rights as a shareholder of the Company as a result of
       participation in this Plan.

10.3   Governing Law.  The provisions of this Plan and the rights of the
       -------------
       parties hereunder shall be interpreted and construed in accordance with
       the laws of the State of South Carolina.

10.4   Binding On Successors. In the event that the Company is merged or
       ---------------------
       consolidated with another entity or in the event that substantially all
       the assets of the Company are sold or transferred to another entity, the
       provisions of the Plan shall be binding upon and shall inure to the
       benefit of the continuing entity in such merger or consolidation or the
       entity to which such assets are sold or transferred.

10.5   No Guarantee of Employment.  Nothing contained in this Plan shall be
       --------------------------
       construed as a contract of employment between the Company and any
       Participant.

10.6   Construction. The masculine gender when used herein shall be deemed to
       ------------
       include the feminine gender, and the singular may include the plural
       unless the context clearly indicates to the contrary.


                                   ARTICLE XI
                  AMENDMENT, TERMINATION OR MERGER OF THE PLAN

11.1   Amendment. The Committee reserves the right at any time and from time to
       ---------
       time to modify or amend, in whole or in part, any or all of the
       provisions of the Plan, provided that no modification or amendment shall
       be made that will affect adversely any right or obligation of any
       Participant with respect to a Participant's Account. Notwithstanding the
       foregoing, any modification or amendment of the Plan may be made,
       retroactively if necessary, which the Committee deems necessary or proper
       to bring the Plan into conformity with any law or governmental regulation
       relating to the Plan. No amendment to this Plan shall decrease a
       Participant's Account balance.

11.2   Termination. The Company may terminate the Plan in whole or in part for
       -----------
       any reason at any time. In the case of such termination or partial
       termination, distributions shall be made pursuant to the provisions of
       Article VII. The Company has established the Plan with the bona fide
       intention and expectation that the Plan will continue indefinitely, but
       the Company shall be under no obligation to maintain the Plan for any
       given length of time and may, in its sole discretion, terminate the Plan
       at any time without any liability whatsoever.

11.3   Notice of Amendment or Termination. Notice of every such amendment or
       ----------------------------------
       termination shall be given in writing to each Participant and Beneficiary
       of a deceased Participant.

                                       8
<PAGE>

                                   ARTICLE XII
                                CLAIMS PROCEDURE

12.1     A person with an interest in the Plan shall have the right to file a
         claim for benefits under the Plan and to appeal any denial of a claim
         for benefits. Any request for a Plan benefit or to clarify the
         claimant's rights to future benefits under the terms of the Plan shall
         be considered to be a claim.

12.2     A claim for benefits will be considered as having been made when
         submitted in writing by the claimant to the Company. No particular form
         is required for the claim, but the written claim must identify the name
         of the claimant and describe generally the benefit to which the
         claimant believes he or she is entitled. The claim may be delivered
         personally during normal business hours or mailed to the Company.

12.3     The Committee, acting on behalf of the Company, will determine whether,
         or to what extent, the claim may be allowed or denied under the terms
         of the Plan. If the claim is wholly or partially denied, the claimant
         shall be so informed by written notice within 90 days after the day the
         claim is submitted unless special circumstances require an extension of
         time for processing the claim. If such an extension of time for
         processing is required, written notice of the extension shall be
         furnished to the claimant prior to the termination of the initial
         90-day period. Such extension may not exceed an additional 90 days from
         the end of the initial 90-day period. The extension notice shall
         indicate the special circumstances requiring an extension of time and
         the date by which the Plan expects to render the final decision. If
         notice of denial of a claim (in whole or in part) is not furnished
         within the initial 90-day period after the claim is submitted (or, if
         applicable, the extended 90-day period), the claimant shall consider
         that his or her claim has been denied just as if he or she had received
         actual notice of denial.

12.4     The notice informing the claimant that his or her claim has been wholly
         or partially denied shall be written in a manner calculated to be
         understood by the claimant and shall include:

         (1)    The specific reason(s) for the denial.

         (2)    Specific reference to pertinent Plan provisions on which the
                denial is based.

         (3)    A description of any additional material or information
                necessary for the claimant to perfect the claim and an
                explanation of why such material or information is
                necessary.

         (4)    Appropriate information as to the steps to be taken if the
                Participant or Beneficiary wishes to submit his or her claim for
                review.

                                       9
<PAGE>

12.5     If the claim is wholly or partially denied, the claimant (or his or her
         authorized representative) may file an appeal of the denied claim with
         the Committee requesting that the claim be reviewed. The Committee
         shall conduct a full and fair review of each appealed claim and its
         denial. Unless the Committee notifies the claimant that due to the
         nature of the benefit and other attendant circumstances he or she is
         entitled to a greater period of time within which to submit his or her
         request for review of a denied claim, the claimant shall have 60 days
         after he or she (or his or her authorized representative) receives
         written notice of denial of his or her claim within which such request
         must be submitted to the Committee.

12.6     The request for review of a denied claim must be made in writing. In
         connection with making such request, the claimant or his authorized
         representative may:

         (1)   Review pertinent documents.

         (2)   Submit issues and comments in writing.

12.7     The decision of the Committee regarding the appeal will be given to the
         claimant in writing no later than 60 days following receipt of the
         request for review. However, if special circumstances (for example, if
         the Board decides to hold a hearing on the appeal) require an extension
         of time for processing, the decision shall be rendered as soon as
         possible, but not later than 120 days after receipt of the request for
         review. If special circumstances require that a decision will be made
         beyond the initial time for furnishing the decision, written notice of
         the extension shall be furnished to the claimant (or his authorized
         representative) prior to the commencement of the extension. If a
         decision on review is not furnished within the appropriate time, the
         claim shall be deemed to have been denied on appeal.

12.8     The Committee may, in its sole discretion, decide to hold a hearing if
         it determines that a hearing is necessary or appropriate in order to
         make a full and fair review of the appealed claim.

12.9     The decision on review shall include specific reasons for the decision,
         written in a manner calculated to be understood by the claimant, as
         well as specific references to the pertinent Plan provisions on which
         the decision is based.

12.10    A Participant or Beneficiary must exhaust his rights to file a claim
         and to request a review of the denial of his claim before bringing any
         civil action to recover benefits due to him under the terms of the
         Plan, to enforce his rights under the terms of the Plan, or to clarify
         his rights to future benefits under the terms of the Plan.

                                      10
<PAGE>

       IN WITNESS WHEREOF, this Plan is hereby adopted this ____ day of
_________, 2000.


ATTEST:                                           WORLD ACCEPTANCE CORPORATION

____________________________                      By:   ________________________
Secretary                                         Title: _______________________
[CORPORATE SEAL]

                                      11