ex102.htm


     

    Exhibit
10.2


    AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

    


    THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), originally
effective as of August 29, 2002 (the “Effective Date”), and amended and restated
as of October 16, 2005, is amended and restated again effective as of December
23, 2008, by and between CompuCredit Corporation, a
Georgia corporation (“CompuCredit”), and J.Paul Whitehead III, an
individual resident of the State of Georgia (“Employee”).  This
Agreement amends, restates and supersedes the employment agreement between the
Company and the Employee effective as of the Effective Date and amended and
restated effective as of October 16, 2005 (the “Previous Employment
Agreement”).

     

    WITNESSETH:

    


    WHEREAS,
in consideration of, among other things, CompuCredit’s reappointment of Employee
to the position of Chief Financial Officer, Employee agreed to devote his full
working time to the business efforts of CompuCredit; and

     

    WHEREAS,
the parties amended and restated the employment agreement, effective as of
August 29, 2002, in its entirety into the Previous Employment Agreement to set
forth the terms and conditions of Employee’s continued employment with
CompuCredit, effective as of October 16, 2005; and

     

    WHEREAS,
CompuCredit and the Employee now desire to amend and restate the Previous
Employment Agreement to reflect the provisions of Section 409A of the Internal
Revenue Code of 1986, as amended, and the final regulations issued
thereunder.

     

    NOW,
THEREFORE, for and in consideration of the Employee’s employment with
CompuCredit and the premises and the mutual covenants and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, CompuCredit and Employee hereby agree as
follows:

     

    1.           Relationship
Re-established.  Upon the terms and subject to the conditions
of this Agreement, CompuCredit hereby employs Employee to serve as the Chief
Financial Officer of CompuCredit, and, as such, Employee shall direct and manage
the financial affairs of CompuCredit and shall have such other executive level
powers and duties as shall be otherwise conferred on him by CompuCredit’s Board
of Directors or Chief Executive Officer consistent with those generally
associated with that position (collectively, the
“Services”).  Employee shall perform the Services at the direction of
CompuCredit’s Chief Executive Officer.  Employee hereby agrees to
devote 100% of his business time, attention, energy and skill exclusively to
performing his obligations and duties hereunder and to engage in no business
activities other than the performance of his obligations and duties hereunder,
except for those specific activities as the Chief Executive Officer or Board of
Directors of CompuCredit shall approve in advance in writing; provided, however,
that nothing herein contained shall restrict or prevent Employee from personally
and for his own account owning and dealing in stocks, bonds, securities, real
estate, commodities, or other investment properties for his own benefit or the
benefit of his family.  Further, nothing herein contained shall
restrict or prevent Employee from serving on the Board of Directors of a
non-profit entity or any entity that the Chief Executive Officer approves of in
writing.  Employee shall perform his obligations and duties hereunder
diligently, faithfully and to the best of his abilities and, in doing so, shall
comply with applicable CompuCredit policies and procedures.  If there
is any conflict between such policies and procedures and this Agreement, this
Agreement shall control.

     

    2.           Term;
Termination.

     

    2.1           Term of
Employment.  The term of Employee’s employment under this
Agreement shall commence on the date hereof and shall continue automatically
month by month upon the terms and conditions contained herein until terminated
in accordance with Section 2.2.  The period of time Employee is
employed by CompuCredit shall be collectively referred to as the
“Term.”

     

    2.2           Termination of
Employment.

     

    (a)           This
Agreement shall automatically and immediately terminate upon the death of
Employee.

     

     

    (b)           Either
party may terminate this Agreement upon the Complete Disability of Employee.
"Complete Disability", as used herein, shall mean the inability of Employee by
reason of any physical or mental impairment to perform fully and effectively, as
determined in the reasonable judgment of a competent physician selected in good
faith by CompuCredit, the Services on a full time basis for an aggregate of 90
days in any period of 180 consecutive days.

     

    


    (c)           In
addition to any other rights or remedies available to CompuCredit, CompuCredit
may, in its sole discretion, terminate Employee’s employment for Cause effective
immediately upon delivery of written notice to Employee.  In this
Agreement, “Cause” means the reasonable, good faith determination of a majority
of the members of CompuCredit’s Board of Directors that:

     

    (i)           (A)
Employee has committed an act constituting fraud, deceit or intentional material
misrepresentation with respect to CompuCredit or any client, customer or
supplier of CompuCredit; (B) Employee has embezzled funds or assets from
CompuCredit or any client or customer of CompuCredit; (C) Employee has engaged
in willful misconduct or gross negligence in the performance of the Services;
(D) Employee has failed to comply in a material way with any of the terms of
Section 1 or Section 9 hereof;

     

    (ii)           Employee
has breached or defaulted in the performance of any other material provision of
this Agreement and has not cured such breach or default to CompuCredit’s
reasonable satisfaction within thirty (30) days after receiving notice thereof;
or

     

    (iii)           Employee’s
conduct is materially detrimental to the reputation of CompuCredit which
Employee has not cured (if such conduct is curable in Employer’s reasonable
opinion) to CompuCredit’s reasonable satisfaction within ten (10) days after
receiving notice thereof.

     

    (d)           In
addition to any other rights or remedies available to Employee, Employee may, in
his sole discretion, terminate Employee’s employment for Good Reason effective
immediately upon delivery of written notice to CompuCredit.  In this
Agreement, “Good Reason” shall mean the occurrence of any one of the following
events:

     

    (i)           The
nature, extent and amount of coverage under CompuCredit’s Directors and
Officers, Errors and Omissions insurance policy decreases to a level that is
below what would be reasonable and customary (other than due to the actions of
Employee), provided however, that such coverage shall not be below a minimum
threshold of $25,000,000;

     

    (ii)           Employee’s
status or role within CompuCredit is demoted in any of the following
ways:

     

    (A)           Employee
no longer maintains the title of Chief Financial Officer of
CompuCredit;

     

    (B)           Employee
retains the title of Chief Financial Officer but is not held out by CompuCredit
either internally and/or externally as the principal or chief financial officer
of CompuCredit responsible for the financial matters of
CompuCredit;

     

    (C)           a
material diminution in the scope and nature of Employee’s duties and
responsibilities or the assignment of duties and responsibilities inconsistent
with those generally associated with the chief financial officer
position;

     

    (D)           Employee
no longer reports directly to the Chief Executive Officer of
CompuCredit;

     

    (E)           a
material reduction by CompuCredit of Employee’s base annual salary, incentive
compensation or a material reduction of Employee’s benefits (taken as a whole)
as in effect immediately prior to such reduction; or

     

    (F) A
material diminution in the authority, duties, or responsibilities of the
supervisor to whom the Employee is required to report.

     

    (iii)           CompuCredit’s
requirement that Employee be based anywhere other than Metropolitan Atlanta,
Georgia.  CompuCredit shall be deemed to have required Employee to be
based somewhere other than Metropolitan Atlanta, Georgia if the Employee is
required to spend more than two days per week on a regular basis at a business
location not within the Atlanta, Georgia metropolitan area.

     

    (iv)           the
failure of a successor of CompuCredit to assume in writing this Agreement
contemporaneously to becoming a successor of CompuCredit; or

     

    (v)           CompuCredit
has breached or defaulted in the performance of any material provision of this
Agreement and has not cured such breach or default to Employee’s reasonable
satisfaction within thirty (30) days after receiving notice
thereof.

     

    (e)           The
date on which Employee’s employment expires or terminates for any reason is
referred to herein as the “Termination Date.”

     

    3.           Compensation.

     

    (a)           During
the Term, CompuCredit shall pay Employee as compensation for the Services an
annual salary as set forth on Exhibit A hereto and incorporated herein by
reference.  Such compensation shall be payable in substantially equal
bi-weekly installments or in such other installments or at such other intervals
as may be the policy of CompuCredit from time to time, but no less frequently
than monthly, and shall be subject to such deductions and withholdings as are
required by law or policies of CompuCredit in effect from time to
time.  Employee’s salary per annum may from time to time be increased
but not decreased.  CompuCredit shall review Employee’s compensation
hereunder at least on an annual basis.

     

    (b)           Notwithstanding
anything to the contrary herein, if this Agreement is terminated by CompuCredit
for Cause or by Employee without Good Reason (except in the case of death or
Complete Disability of Employee), CompuCredit shall be released of its
obligation to pay further compensation or benefits to Employee as set forth in
this Agreement and any restricted stock grants and options which have not vested
shall not become vested; provided, however, subject to
Section 21 below, that Employee shall be entitled to receive (i) any salary
already earned under Section 3(a) as set forth above, and (ii) a portion of any
previously agreed upon bonus (prorated based upon full months worked by
Employee) for any fiscal year in which Employee worked for CompuCredit for at
least six (6) months within thirty (30) days of the Termination Date; provided, further, that in the
case of a termination of employment by Employee without Good Reason (except in
the case of death or Complete Disability of Employee), Employee shall have the
earlier of (i) two (2) months after the Termination Date or (ii) the original
expiration date of the options (disregarding any earlier expiration based on
termination of Employee’s employment) to exercise any then vested stock options
held by Employee.

     

    (d)           If
this Agreement terminates as a result of the Complete Disability of Employee,
CompuCredit shall be released of its obligation to pay further compensation or
benefits to Employee as set forth in this Agreement and any restricted stock
grants or options which have not vested as of the Termination Date shall not
become vested; provided, however, that
Employee shall be deemed to be One Hundred Percent (100%) vested in all
restricted stock, provided, further, subject to
Section 21 below, that Employee shall be entitled to receive (i) his salary
under Section 3(a) above for a period of three (3) months payable in
substantially equal bi-weekly installments or in such other installments or
other intervals as may be the policy of CompuCredit on the Termination Date, but
no less frequently than monthly, as set forth above, (ii) a portion of any
previously agreed upon bonus (pro rated based upon full months worked by
Employee) for any fiscal year in which Employee worked for CompuCredit for at
least six (6) months within thirty (30) days of the Termination Date; and (iii)
the ability to exercise any then vested options held by Employee until the
earlier of (i) six (6) months after the Termination Date or (ii) the original
expiration date of the options (disregarding any earlier expiration based on
termination of Employee’s employment).

     

    (e)           If
this Agreement terminates as a result of the death of Employee, CompuCredit
shall be released of its obligation to pay further compensation or benefits to
Employee as set forth in this Agreement and any restricted stock grants or
options which have not vested shall not become vested; provided, however, that
Employee shall be deemed to be One Hundred Percent (100%) vested in all
restricted stock, provided, further, subject to
Section 21 below, that Employee (or his estate, as applicable) shall be entitled
to receive (i) any salary already earned under Section 3(a) above as set forth
above, (ii) a portion of any previously agreed upon bonus (pro rated based upon
full months worked by Employee) for any fiscal year in which Employee worked for
CompuCredit for at least six (6) months within thirty (30) days of the
Termination Date; and (iii) the ability to exercise any then vested options held
by Employee until the earlier of (i) six (6) months after the Termination Date
or (ii) the original expiration date (disregarding any earlier expiration based
on termination of Employee’s employment).

     

    (f)           Notwithstanding
anything to the contrary herein, if CompuCredit terminates this Agreement or
Employee’s employment for any reason other than for Cause or if Employee
terminates this Agreement or resigns for Good Reason, subject to Section 21
below, Employee shall be entitled to receive (i) his then current base salary
for twelve (12) months from the Termination Date payable during such time in
substantially equal bi-weekly installments or in such other installments or
other intervals as may be the policy of CompuCredit on the Termination Date, but
no less frequently than monthly, plus (ii) an amount equal to the largest cash
bonus received by Employee during the Term of this Agreement and prior to the
Termination Date within thirty (30) days of the Termination Date.  The
Employee shall not be obligated in any way to mitigate CompuCredit’s obligations
to him under this Section and any amounts earned by Employee subsequent to his
termination of employment shall not serve as an offset to the severance payments
due him by CompuCredit under this Section.  Further, Employee shall be
deemed to be One Hundred Percent (100%) vested in all restricted stock, stock
options and benefit plans maintained by CompuCredit, and shall have until the
earlier of (i) one year after the Termination Date or (ii) the original
expiration date (disregarding any earlier expiration based on termination of
Employee’s employment) to exercise any stock option or other similar
equity-based compensation arrangements.  Payments under this Section
are in addition to and not in lieu of any benefits under the other benefit
programs of CompuCredit.  Without limiting the foregoing, to the
extent permitted by law, the CompuCredit shall continue the medical, disability
and life insurance benefits which Executive was receiving at the time of
termination monthly for a period of twenty-four (24) months after termination of
employment or, if earlier, until Employee has commenced employment elsewhere and
becomes eligible for participation in the medical, disability and life insurance
programs, if any, of his successor employer.  Coverage under
CompuCredit’s medical, disability and life insurance programs shall cease with
respect to each such program as Employee becomes eligible for the medical,
disability and life insurance programs, if any, of his successor
employer.  CompuCredit shall thereafter have no other obligation or
liability to Employee under this Agreement.

     

    4.           Vacation.  During
the Term of this Agreement, Employee shall be entitled to such number of weeks
of paid vacation in each calendar year of the Term as is provided in, and in
accordance with, CompuCredit’s policies in effect from time to time for
management employees.

     

    5.           Benefits.  During
the Term of this Agreement, Employee and, as applicable, Employee’s family,
shall also have the right to participate in any employee benefit plans or other
fringe benefits adopted by CompuCredit for its officers and/or other key
management employees or as a part of CompuCredit’s regular compensation
structure for its employees, including plans (to the extent offered) providing
group hospitalization, medical, dental, accidental death and disability and
long-term disability income replacement insurance benefits and any retirement
income, capital accumulation, deferred compensation and incentive compensation
plans, but only if and to the extent provided from time to time in such
executive benefits plans and for so long as CompuCredit provides or offers such
benefit plans.

     

    6.           Reimbursement for
Expenses.  CompuCredit shall reimburse Employee for reasonable
out-of-pocket expenses incurred by Employee in connection with the performance
of the Services hereunder for travel, entertainment and other miscellaneous
expenses to the extent such expenses are consistent with CompuCredit’s
reimbursement policy as the same shall be in effect from time to
time.  Additionally, CompuCredit shall reimburse Employee for
reasonable out-of-pocket expenses incurred by Employee associated with
Employee’s efforts to maintain those continuing professional education
requirements of his license in the State of Georgia to practice as a Certified
Public Accountant, as well as those professional association dues, licensure
fees, and business license payments incurred by Employee in connection with his
status as a Certified Public Accountant.  Reimbursement shall be made
only against an itemized list of such expenses submitted to CompuCredit by
Employee within thirty (30) days after being incurred, and, to the extent
requested by CompuCredit, receipts and invoices evidencing such
expenses.  In no event shall any such reimbursement be made later than
thirty (30) days after the period for submitting such itemized list
expires.

     

    7.           Confidentiality.

     

    (a)           Proprietary
Information.  Employee acknowledges that as an employee of
CompuCredit, he may from time to time have access to and be provided with trade
secrets (as defined under applicable law), and other confidential, secret and
proprietary information including without limitation, financial statements or
information, technical or nontechnical data, formulae, compilations, programs,
methods, data, financial plans, models, product plans, marketing or sales
strategies, portfolio information, or lists of actual or potential borrowers,
loan program participants or other customers not generally available to the
public concerning any aspect of the products, services or businesses of
CompuCredit, its affiliates, or its and their officers, directors, employees,
advisers, agents or other personnel (collectively, “Proprietary
Information”).  Employee agrees that he will not, directly or
indirectly, disclose, publish, disseminate or use any confidential information
except in connection with the performance of the Services.  If
disclosure of any Confidential Information is required by law, a court or agency
of the government, then Employee may make such disclosure after providing
CompuCredit with reasonable notice, to the extent that providing such notice to
CompuCredit is legally permissible, so that CompuCredit may seek protective
relief.

     

    (b)           Notwithstanding
the provisions of Section 7(a) above, the following shall not be considered to
be Proprietary information:  (i) any information that was in the
public domain through no fault or act of Employee prior to the disclosure
thereof to Employee; (ii) any information that came to Employee during any
employment prior to that with CompuCredit; (iii) any information that comes into
the public domain through no fault or act of Employee; and (iv) any confidential
business information that is not a trade secret on and after the three (3) year
anniversary of the Termination Date; provided, however, that the limited
duration of the confidentiality obligation with regard to Proprietary
Information not constituting a trade secret shall not operate or be construed as
affording Employee any right or license thereafter to use Proprietary
Information, or as a waiver by CompuCredit of the rights and benefits otherwise
available to CompuCredit under the laws governing the protection and
enforceability of patents, trade secrets and other intellectual
property.

     

    (c)           Return of
Materials.  On or before the Termination Date, or when
otherwise requested by CompuCredit, Employee will deliver promptly to
CompuCredit all Proprietary Information and all other files, customer lists,
management reports, drawings, memoranda, forms, financial data and reports and
other materials or documents and equipment provided to, or obtained or created
by Employee in connection with the Services (including all copies of the
foregoing, and including all notes, records and other materials of or relating
to CompuCredit or their respective customers) in his possession or control and
shall destroy all other Proprietary Information in his possession.

     

    8.           Transfer and Assignment to
CompuCredit.

     

    (a)           To
the greatest extent possible, any Work Product will be “work made for hire” (as
defined in the Copyright Act, 17 U.S.C.A. § 101 et seq., as amended)
and owned exclusively by CompuCredit.  In this Agreement, “Work
Product” means work product, property, data, documentation, “know-how,”
concepts, plans, inventions, improvements, techniques, processes or information
of any kind, prepared, conceived, discovered, developed or created by Employee
while employed by CompuCredit.  Employee hereby unconditionally and
irrevocably transfers and assigns to CompuCredit all right, title and interest
Employee has or will have, by operation of law or otherwise, in or to any Work
Product, including, without limitation, all patents, copyrights, trademarks,
service marks, trade secrets and other intellectual property
rights.  Employee agrees to execute and deliver to CompuCredit any
transfers or other instruments which CompuCredit may deem necessary or
appropriate to vest complete title and ownership of any Work Product, and all
rights therein, exclusively in CompuCredit.

     

    (b)           Power of
Attorney.  Employee hereby irrevocably constitutes and appoints
CompuCredit as his agent and attorney-in-fact, with full power of substitution,
in the name, place and stead of Employee, to execute and deliver any and all
assignments or other instruments described in Section 8(a) above that Employee
fails or refuses promptly to execute and deliver.  The foregoing power
and agency are coupled with an interest and are irrevocable.

     

    9.           Covenant Against
Competition.

     

    (a)           Employee
acknowledges that the Proprietary Information that he has acquired and will
acquire, prior to and during the Term, includes and will include information
that could be used by Employee on behalf of a Competitor (as hereinafter
defined), its affiliates or others to the substantial detriment of
CompuCredit.  Moreover, the parties recognize that Employee during the
course of his employment with CompuCredit will develop important relationships
with customers, suppliers and others having valuable business relationships with
CompuCredit.  In view of the foregoing, Employee acknowledges and
agrees that the restrictive covenants contained in this Agreement are reasonably
necessary to protect CompuCredit’s legitimate business interests and
goodwill.

     

    (b)           Definitions.

     

    (i)           “Competitive
Position”- (A) the direct or indirect equity ownership (excluding
ownership of less than 2% of the equity of an Entity listed on a major U.S.
exchange or traded on a NASDAQ over-the-counter market) or control of all or any
portion of a “Competitor” (as hereinafter defined), or (B) any employment,
consulting, partnership, advisory, directorship, agency, promotional or
independent contractor arrangement between Employee and any
Competitor.

     

    (ii)           “Competitor”- Any
Entity that provides services substantially similar to the Company Services and
the revenues and assets from which represent more than 20% of the revenues or
assets of such Entity, respectively.

     

    (iii)           “Customers”- All
Persons within the Territory during the one-year period prior to the Termination
Date (A) to whom Employee offered or sold any of the CompuCredit’s products or
services (including, without limitation, any opportunity to participate in any
loan program established by CompuCredit), (B) to whom were offered or sold any
of CompuCredit’s products or services or about whom Employee had Proprietary
Information, (C) who were approached by CompuCredit with regard to a product, or
(D) who were identified as potential customers by CompuCredit’s models or
processes.

     

    (iv)           “Company Services”-
(A) purchasing, holding, and selling credit card and home equity loans
(purchased, held or sold by CompuCredit), or portfolios thereof, or both, (B)
providing credit card or home equity loan servicing services or (C) engaging in
the business of making credit card and home equity loans to
consumers.

     

    (v)           “Territory”- The
United States, which is the territory within which customers and accounts of
CompuCredit will be located and where Employee will provide Services during the
term of his employment under this Agreement.

     

    (c)           Covenants of
Employee.  In consideration of Employee’s employment by
CompuCredit upon the terms and conditions of this Agreement, and based on and
subject to the provisions set forth in Section 9(a) above, Employee agrees that,
during the Term and for a period of one (1) year from and after the termination
of Employee’s employment hereunder for Cause or without Good Reason, Employee
will not, without the prior written consent of CompuCredit, directly or
indirectly for or on behalf of any Person other than CompuCredit, as principal,
agent or otherwise:

     

    (i)           take
any action in furtherance of a Competitive Position; or

     

    (ii)           solicit
Customers for the purpose of providing services competitive with any of the
Company Services; or

     

    (iii)           solicit
or induce (or attempt to do so) to leave employment with CompuCredit anyone who
is or was, during the last year of Employee’s relationship with CompuCredit, an
employee of CompuCredit or an affiliated entity.

     

    (d)           Employee
hereby represents and warrants to CompuCredit that he is not now a party to any
agreement, court order, decree or other restriction which restricts him from
using or disclosing to any party any information deemed to be proprietary or
confidential or deemed to be a trade secret, of which in any way restricts
Employee from engaging in or rendering any of the Services.

     

    10.           Restrictions Upon Sale of
Shares.  In further consideration of the terms of employment
granted herein by CompuCredit to Employee, Employee hereby agrees that in
selling any CompuCredit shares of common stock during the Term, he will advise
CompuCredit in advance of such sales and will use reasonable efforts to effect
such sales so as to minimize any adverse consequences to transactions proposed
by CompuCredit which involve its common stock.

     

    11.           Indemnification.  In
the event that the Employee is or becomes a party to or witness or other
participant in, or is threatened to be made a party to or witness or other
participant in, a “claim” by reason of (or arising in part out of) an
“indemnifiable event,” CompuCredit shall indemnify Employee to the full extent
authorized or permitted by law as soon as practicable after written demand is
presented to CompuCredit, against any and all “expenses,” judgments, fines,
penalties, and amounts paid in settlement (including interest, assessments and
other charges paid or payable in connection with or in respect of such Expenses,
judgments, fines or settlement) of such claim, provided that CompuCredit shall
be obligated to indemnify only for settlements that it has approved in advance,
which approval shall not be unreasonable withheld.  For these
purposes, (i) a “claim” shall include any threatened, pending or completed
action, suit or proceeding, or any inquiry or investigation, whether instituted
by or in the right of CompuCredit or any other party, which Employee believes in
good faith might lead to the institution of any such action, suit or proceeding,
whether civil, administrative, investigative or other, arising in connection
with an indemnifiable event, (ii) “expenses” includes attorneys’ fees and all
other costs, expenses and obligations paid or incurred in connection with
investigation, defending, being a witness in or participating in (including an
appeal), or preparing to defend, be a witness in or participate in any Claim
relating to an indemnifiable event, provided that any attorney representing
Employee shall cooperate fully with CompuCredit and its attorneys in order to
minimize the duplication of expenses; and (iii) an “indemnifiable event” means
any event or occurrence related to the fact the Employee is or was an executive
officer of CompuCredit, or is or was serving at the request of CompuCredit as a
director, officer, or trustee of another corporation, trust or other enterprise,
or by anything done or not done by employee in such capacity.  Any
payments to be made hereunder shall be paid as soon as administratively
practical but in no event later than the end of the year following the year in
which occurs the settlement or other event for which such indemnification is to
be provided.

     

    12.           Interpretation;
Severability.  All rights and restrictions contained in this
Agreement may be exercised and shall be applicable and binding only to the
extent that they do not violate any applicable laws and are intended to be
limited to the extent necessary so that they will not render this Agreement
illegal, invalid or unenforceable.  It is understood and agreed that
the provisions hereof are severable; if such provisions shall be deemed invalid
or unenforceable as to any period of time, territory, or business activity, such
provisions shall be deemed limited to the extent necessary to render it valid
and enforceable, and the unenforceability of any provisions hereof shall not in
any event cause any other provision hereof to be unenforceable.  No
provision of this Agreement shall be construed against or interpreted to the
disadvantage of any party hereto by any court or other governmental or judicial
authority by reason of such party having or being deemed to have structured or
dictated such provision.

     

    13.           Relief.  In
the event of any threatened or actual breach of the provisions of this Agreement
by either party, the other party shall be entitled to injunctive relief in
addition to any other remedies it may have at law or in equity.

     

    14.           Nonwaiver.  Failure
of either party to insist, in one or more instances, on performance by the other
in strict accordance with the terms and conditions of this Agreement shall not
be deemed a waiver or relinquishment of any right granted hereunder or of the
future performance of any such term or condition or of any other term or
condition of this Agreement, unless such waiver is contained in a writing signed
by or on behalf of both parties.

     

    15.           Notices.  Any
notice or other communication required or permitted hereunder shall be deemed
sufficiently given if delivered by hand or sent by registered or certified mail,
return receipt requested, postage and fees prepaid, addressed to the party to be
notified as follows:

     

    
      	
               
      

            	
              (a)

            	
              If
      to CompuCredit:

            	
              CompuCredit
      Corporation

            


    

    
      	
               
      

            	
              245
      Perimeter Center Parkway, Suite 600

            


    

    
      	
               
      

            	
              Atlanta,
      GA  30346

            


    

    
      	
               
      

            	
              Attn:
      David G. Hanna

            


    

    
      	
               
      

            	
              (b)

            	
              If
      to Employee:

            	
              J.Paul
      Whitehead III

            


    

    
      	
               
      

            	 


    

    


     

    or in
each case to such other address as either party may from time to time designate
in writing to the other.  Such notice or communication shall be deemed
to have been given as of the date so delivered or five (5) days after the date
so mailed.

    


    16.           Governing
Law.  This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Georgia.

     

    17.           Entire Agreement;
Amendment.  This Agreement contains the sole and entire
agreement between the parties hereto with respect to CompuCredit’s employment of
Employee and supersedes all prior discussions and agreements between the parties
relating to such employment, and any such prior agreements shall, from and after
the date hereof, be null and void.  Employee is a sophisticated
business person and has received such documents and other information as he has
deemed necessary to make his own independent judgment as to the merits of this
Agreement and the remuneration that he will receive as a result hereof; further,
it is hereby agreed by Employee that neither CompuCredit nor any affiliated
entities have made any representation to Employee other than those specifically
set forth in this Agreement.  This Agreement shall not be modified or
amended except by an instrument in writing signed by or on behalf of the parties
hereto.  Furthermore, if any portion of this Agreement conflicts with
any future agreement signed between CompuCredit and Employee, this Agreement
shall control unless such future agreement clearly specifies that it is intended
to supercede all or a specific provision of this Agreement.

     

    18.           Parties
Benefited.  This Agreement shall inure to the benefit of, and
be binding upon Employee, CompuCredit, and its respective heirs, legal
representatives, successors and assigns; provided that, as to Employee, this is
a personal service contract and Employee may not assign this Agreement or any
part hereof.

     

    19.           Tax
Consequences.  CompuCredit shall have no obligation to Employee
with respect to any tax obligation Employee incurs as a result of or
attributable to this Agreement, including all supplemental agreements and
employee benefit plans, if any, in which Employee may hereafter participate, or
arising from any payments made or to be made hereunder or
thereunder.

     

    20.           Counterparts.  This
Agreement may be executed in counterparts, each of which shall for all purposes
be deemed an original, and all of such counterparts shall together constitute
one and the same agreement.

     

    21.           Nonqualified Deferred
Compensation Omnibus Provision.  It is intended that any
payment or benefit which is provided pursuant to or in connection with this
Agreement which is considered to be deferred compensation subject to Section
409A of the Internal Revenue Code shall be paid and provided in a manner, and at
such time, including without limitation, payment and provision of benefits only
in connection with the occurrence of a permissible payment event contained in
Section 409A (e.g., death, disability, separation from service from CompuCredit
and its affiliates as defined for purposes of Section 409A of the Internal
Revenue Code), and in such form, as complies with the applicable requirements of
Section 409A of the Internal Revenue Code to avoid the unfavorable tax
consequences provided therein for non-compliance.  In connection with
effecting such compliance with Section 409A of the Internal Revenue Code, the
following shall apply:

     

    (a)           Neither
Employee nor CompuCredit shall take any action to accelerate or delay the
payment of any monies and/or provision of any benefits in any manner which would
not be in compliance with Section 409A of the Internal Revenue Code (including
any transition or grandfather rules thereunder).

     

    (b)           If
Employee is a specified employee for purposes of Section 409A(a)(2)(B)(i) of the
Internal Revenue Code, any payment or provision of benefits in connection with a
separation from service event (as determined for purposes of Section 409A of the
Internal Revenue Code) shall not be made until the earlier of (i) Employee’s
death or (ii) six (6) months after Employee’s separation from service (the “409A
Deferral Period”).  In the event such payments are otherwise due to be
made in installments or periodically during the 409A Deferral Period, the
payments which would otherwise have been made in the 409A Deferral Period shall
be accumulated and paid in a lump sum as soon as the 409A Deferral Period ends,
and the balance of the payments shall be made as otherwise
scheduled.  In the event benefits are required to be deferred, any
such benefits may be provided during the 409A Deferral Period at Employee’s
expense, with Employee having a right to reimbursement from CompuCredit once the
409A Deferral Period ends, and the balance of the benefits shall be provided as
otherwise scheduled.

     

    (e)           For
purposes of this Agreement, all rights to payments and benefits hereunder shall
be treated as rights to receive a series of separate payments and benefits to
the fullest extent allowed by Section 409A of the Internal Revenue
Code.

     

    (f)           For
purposes of determining time of (but not entitlement to) payment or provision of
deferred compensation under this Agreement under Section 409A of the Internal
Revenue Code in connection with a termination of employment, termination of
employment will be read to mean a “separation from service” within the meaning
of Section 409A of the Internal Revenue Code where it is reasonably anticipated
that no further services would be performed after that date or that the level of
bona fide services Employee would perform after that date (whether as an
employee or independent contractor) would permanently decrease to no more than
twenty percent (20%) of the average level of bona fide services performed over
the immediately preceding thirty-six (36) month period.

     

    (g)           For
purposes of this Agreement, a specified employee for purposes of Section
409A(a)(2)(B)(i) of the Internal Revenue Code shall be determined on the basis
of the applicable 12-month period ending on the specified employee
identification date designated by CompuCredit consistently for purposes of this
Agreement and similar agreements or, if no such designation is made, based on
the default rules and regulations under Section 409A(a)(2)(B)(i) of the Internal
Revenue Code.

     

     

    (h)           Notwithstanding
any other provision of this Agreement, CompuCredit shall not be liable to
Employee if any payment or benefit which is to be provided pursuant to this
Agreement and which is considered deferred compensation subject to Section 409A
of the Internal Revenue Code otherwise fails to comply with, or be exempt from,
the requirements of Section 409A of the Internal Revenue Code.

    


     


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

     

    COMPUCREDIT
CORPORATION

    


    


    
      	
               

            	By:
      /s/ David G.
      Hanna	 


    

    
      	
               
      

            	
              David
      G. Hanna, Chief Executive Officer

            


    

    


    


    
      	
               

            	 By:
      /s/ J. Paul Whitehead,
      III


    

    
      	
               
      

            	
              J.Paul
      Whitehead III

            


    


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    Exhibit
A

    


    Salary
per
annum                                                                                                $800,000