ex103.htm


     

    Exhibit
10.3


    AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

    


    THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement"), originally
effective as of March 15, 2001 (the “Effective Date”), is amended and restated
on December 23, 2008, by and between COMPUCREDIT CORPORATION, a Georgia
corporation ("CompuCredit"), and RICHARD W. GILBERT, an individual resident of
the State of Georgia ("Employee").  This Agreement amends, restates
and supersedes the employment agreement between CompuCredit and the Employee
that became effective as of the Effective Date (the “Previous Employment
Agreement”).

     

    W I T N E
S S E T H:

    


    WHEREAS,
the parties desired to enter into a written agreement for the employment of
Employee by CompuCredit on the terms and conditions hereinafter stated which
superseded any and all written or oral arrangements between the parties
concerning the subject matter hereof, including, without limitation, that
certain employment agreement between CompuCredit and Employee dated as of
January 1, 1999, as amended from time to time; and

     

    WHEREAS,
CompuCredit and the Employee entered into the Previous Employment Agreement,
effective as of March 15, 2001; 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 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 agree as follows:

     

    1.           RELATIONSHIP
ESTABLISHED.  Upon the terms and subject to the conditions of this
Agreement, CompuCredit hereby employs Employee to perform services (the
"Services") for CompuCredit as its Chief Operating Officer and as delegated to
him from time to time by the Chief Executive Officer of CompuCredit, or his
designee, consistent with those generally associated with that
position.  Employee hereby agrees to devote substantially all of his
business efforts toward performing the Services, which efforts shall constitute
not less than a minimum average of forty (40) hours per week.  In his
performance of the Services, Employee 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 indefinitely on an at will
basis, subject to termination at any time by either party on not less than
thirty (30) days prior written notice by either party, or as otherwise provided
pursuant to Section 2.2 of this Agreement.  The period of time
Employee is employed by CompuCredit shall be referred to as the
"Term."

     

    2.2           TERMINATION
OF EMPLOYMENT.

     

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

     

    (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 this Agreement 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 Board of Directors of CompuCredit that:

     

    (i)           (A)
Employee has committed an act constituting fraud, moral turpitude, 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, customer or supplier of CompuCredit; or
(C) Employee has engaged in willful misconduct or gross negligence in the
performance of the Services;

     

    (ii)           Employee
has breached or defaulted in the performance of any 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 (provided
that any breach by Employee of any obligation under Section 9 will be grounds
for immediate termination for "Cause" without any notice or right to cure);
or

     

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

     

    (d)           The
date on which this Agreement expires or terminates for any reason is referred to
herein as the "Termination Date."

     

    (e)           Employee
may terminate this Agreement following a Change of Control (as defined below),
by providing CompuCredit at least thirty (30) days prior written notice of
termination.  For purposes of this Agreement, "Change of Control"
shall mean the acquisition by any single person or entity or related persons or
entities of either substantially all the assets of CompuCredit or more than
fifty percent (50%) of the outstanding and issued common stock of
CompuCredit.

     

    3.           COMPENSATION.

     

    (a)           During
the Term, CompuCredit shall pay Employee as compensation for the Services an
annual salary equal to $175,000.  Such compensation shall be payable
in substantially equal semi-monthly 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 adjusted as agreed in writing by both CompuCredit and
Employee.

     

    (b)           Notwithstanding
anything to the contrary herein, if this Agreement is terminated for any of the
reasons set forth in Section 2 hereof, CompuCredit shall be released of its
obligation to pay further compensation or benefits to Employee as set forth in
this Agreement (except for salary already earned under Section 3(a) hereof
payable at the normal times set forth above) and Employee will not be entitled
to any severance or other benefits upon any termination of his employment
hereunder.

     

    4.           VACATION.  During
the Term, 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, Employee shall be entitled to participate in executive employee
benefit plans generally provided by CompuCredit to its executives, 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.  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 Proprietary Information
except as authorized herein.  Employee may use Proprietary Information
to perform the Services but in doing so will only allow dissemination of
Proprietary Information to any individual, corporation, partnership, limited
liability company, joint venture, association, joint stock company, government
agency, trust, trustee, entity, unincorporated organization or any other entity
on a strict need-to-know basis (provided such persons are first informed of the
confidential nature of such Proprietary Information and directed to use or
disclose it only as permitted herein).  If disclosure of any
Proprietary 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)           NON-PROPRIETARY
INFORMATION.  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 comes into the public domain through no fault or act
of Employee; (iii) any information that is disclosed without restriction to
Employee by a third party (which term shall not include any equity holder,
affiliate, or counsel, accountants and other non-employee representatives of
affiliated entitles, or of any of their respective equity holders, affiliates or
related persons) having the legal right to make such disclosure, and (iv) any
confidential business information that is not a trade secret on 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 secret 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.

     

    8.           TRANSFER
AND ASSIGNMENT TO COMPUCREDIT.

     

    (a)           TRANSFER
AND ASSIGNMENT OF WORK PRODUCT.  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. Section. 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 in connection with the
performance of the Services.  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 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.  If this Agreement is terminated by CompuCredit otherwise
than in accordance with Section 2.2 hereof, Employee will only be bound by the
covenant against competition if he is paid at his then current salary for the
one (1) year period of time from and after the Termination Date.  Any
such payments to be made during such one (1) year period shall be made in the
same manner as Employee’s annual salary as of the Termination Date, subject to
Section 19 below.

     

    (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, or (B) any employment, consulting, partnership, advisory,
directorship, agency, promotional or independent contractor arrangement between
Employee and any Competitor whereby Employee is required to perform services
substantially similar to the Services.

     

    (ii)           "COMPETITOR"-
Any person or entity who provides products or services substantially similar to
Company Services (as hereinafter defined).

     

    (iii)           "CUSTOMERS"-
All persons or entities within the Territory (as hereinafter defined) 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 services, 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) servicing services, and (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
and CompuCredit's providing to Employee the consideration described in Section 3
above, 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 this Agreement for any reason, Employee will
not, without the prior written consent of CompuCredit, directly or indirectly
for or on behalf of any person or entity other than CompuCredit, as principal,
agent or otherwise:

     

    (i)           take
any action in furtherance of a Competitive Position, including, without
limitation, entering into a Competitive Position; or

     

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

     

    (iii)           solicit,
entice 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 affiliate who would provide
similar services to a Competitor.

     

    (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.           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.

     

    11.           RELIEF.  In
the event of any threatened or actual breach of the provisions of this Agreement
by either party, including, without limitation, the provisions of Section 9, the
other party shall be entitled to specific performance and injunctive relief in
addition to any other remedies it may have at law or in equity.

     

    12.           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.

     

    13.           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,
      Georgia  30346

            


    

    
      	
               
      

            	
              Attn:  David
      G. Hanna

            


    

    
      	
               
      

            	
              (b)

            	
              If
      to Employee:

            	
              Richard
      W. Gilbert

            


    

    
      	
               
      

            	 


    

    


     

    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.

    


    14.           GOVERNING
LAW.  This Agreement shall be governed by and construed and enforced
in accordance with the laws of the State of Georgia.

     

    15.           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, including, without limitation, the Previous
Employment Agreement, and any such prior agreements shall, from and after the
date hereof, be null and void.  Employee is a sophisticated
businessperson 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 its affiliates 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 all of the parties
hereto.

     

    16.           PARTIES
BENEFITED.  This Agreement shall inure to the benefit of, and be
binding upon Employee, CompuCredit, and their 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.

     

    17.           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.

     

    18.           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.

     

    19.           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 (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.

     

    (c)           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.

     

    (d)           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,

            


    

    
      	
               
      

            	
              Chairman
      and Chief Executive Officer

            


    

    


    


    
      	
               

            	 By: /s/
      Richard W. Gilbert	 


    

    
      	
               
      

            	
              Richard
      W. Gilbert