Document:

Asset Purchase Agreement

 Exhibit 10.1 
 Execution Copy 
 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of June 8th, 2007 by and among Southern Management Acquisition Corp., a
Delaware corporation (“Buyer”), Southern Management Corporation, a South Carolina corporation (the “Company”), Southern Finance of Tennessee, Inc., a Tennessee corporation, Covington Credit of Texas, Inc., a Texas
corporation, Covington Credit, Inc., an Oklahoma corporation, Covington Credit of Alabama, Inc., an Alabama corporation, Covington Credit of Georgia, Inc., a Georgia corporation, Southern Finance of South Carolina, Inc., a South Carolina
corporation, Quick Credit Corporation, a South Carolina corporation, (together with the Company, “Sellers”), Thaxton Group, Inc., a South Carolina corporation (“Thaxton Group”), Thaxton Investment Corporation, a
South Carolina corporation (“Thaxton Investment”) and, solely for purposes of Sections 6(b) and 13(m), Regional Holdings I Corp., a Delaware corporation (“Guarantor”). Certain capitalized terms used
herein but not defined elsewhere in the text of this Agreement are defined in Article I below. 
 RECITALS 
 WHEREAS, Sellers desire to sell to Buyer, and Buyer desire to purchase and acquire from Sellers, the Acquired Assets in accordance with and subject to
the terms and conditions set forth in this Agreement; 
 WHEREAS, as part of this purchase, Buyer is willing to assume the Assumed
Liabilities; 
 WHEREAS, on October 17, 2003 (the “Petition Date”), Thaxton Group and certain of its Affiliates,
including all Sellers, except for Covington Credit of Alabama, Inc., filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in jointly-administered Case Nos. 03-13182 through 03-13213 (the “Bankruptcy Cases”)
in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”), and since the Petition Date Sellers continued to own and manage their properties as a debtor in possession pursuant to 11 U.S.C.
§§ 1107(a) and 1108; 
 WHEREAS, on April 16, 2007, Sellers emerged from bankruptcy in accordance with the Second Amended
and Restated Joint Consolidated Plan of Reorganization of Thaxton Group, Inc. and its Affiliates Debtors and Debtors-in-Possession Proposed by Thaxton Group and its Affiliate Debtors and the Official Committee of Unsecured Creditors that was
confirmed by an order dated April 3, 2007; and 
 WHEREAS, the Acquired Assets will be sold and the Assumed Liabilities will be assumed
pursuant to the terms and conditions of this Agreement. 
  

 1 

 NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Parties
agree as follows: 
 1. DEFINITIONS; INTERPRETATION. 
 (a) Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms shall have the respective meanings specified below: 
 “Accounts” has the meaning ascribed to it in Section 2(a)(i). 
 “Acquired Assets” has the meaning ascribed to it in Section 2(a). 
 “Acquired Branch Offices” means all of Sellers’ Branch Offices including those listed on Schedule 1(a). 
 “Affiliate” means, with respect to any Person, (i) a spouse or member of the immediate family of such Person, (ii) any member,
manager, director, officer or partner of such Person, (iii) any corporation, partnership, business, association, limited liability company, firm or other entity of which such Person is a member, manager, director, officer or partner, and
(iv) any other Person that directly or indirectly controls, is controlled by or is under direct or indirect common control with such first Person. 
 “Agreement” has the meaning ascribed to it in the preamble to this Asset Purchase Agreement. 
 “Assumed Contracts” means all contracts in effect between Sellers and third parties except for Excluded Contracts. 
 “Assumed Leases” means all leases of Leased Real Property. 
 “Assumed Liabilities” has the
meaning ascribed to it in Section 2(c). 
 “Assumption Agreement” means that certain assignment and assumption
agreement to be executed and delivered by the parties at Closing in substantially the form of Exhibit A attached hereto. 
 “Audited Financial Statements” has the meaning ascribed to it in Section 5(g). 
 “Balance
Sheet” means the Consolidated balance sheet of Sellers, as of the Balance Sheet Date, included in the Financial Statements. 
 “Balance Sheet Date” means April 30, 2007. 
 “Bankruptcy Cases” has the meaning ascribed to
it in the preamble to this Agreement. 
 “Bankruptcy Code” means title 11 of the United States Code, 11 U.S.C. §§
101 et seq., as in effect on the Petition Date. 
 “Bankruptcy Court” has the meaning ascribed to it in the
preamble to this Agreement. 
  

 2 

 “Bankruptcy Order” means an order of the Bankruptcy Court which approves the sale,
assignment and transfer of the Acquired Assets and Assumed Liabilities which order may be sought by agreement of the parties hereto. 
 “Bill of Sale” has the meaning ascribed to it in Section 4(b)(i). 
 “Branch Offices”
means the branch office locations of Sellers located in Alabama, Georgia, Oklahoma, South Carolina, Tennessee and Texas. 
 “Business” means Sellers’ business of offering short-term small loans, related credit insurance products and ancillary products and offering income tax return preparation services and refund anticipation loans (through
a third party bank), and all other business activities of Sellers. 
 “Business Day” means any day other than a Saturday,
Sunday or other day on which commercial banks in Greenville, South Carolina are authorized or required by Law to be closed. 
 “Buyer” has the meaning ascribed to it in the preamble to this Agreement. 
 “Buyer’s Closing
Documents” has the meaning ascribed to it in Section 4(c). 
 “Buyer’s Knowledge” means the actual
knowledge after due inquiry of David Perez, Erik A. Scott, Ellery W. Roberts, Richard A. Godley, Thomas F. Fortin, Bob Barry, Eric Anderson, and Glynn Quattlebaum. 
 “CERCLA” the Federal Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §. 9601 et seq. 
 “Closing” shall have the meaning ascribed to it in Section 4(a). 
 “Closing Date” shall have the meaning ascribed to it in Section 4(a). 
 “Code” means
the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder. 
 “Confidentiality Agreements”
shall have the meaning ascribed to it in Section 13(d). 
 “Consolidated” as it applies to Sellers, the Company
and its Subsidiaries on a consolidated basis in accordance with GAAP, after eliminating all intercompany items. 
 “Constituent of
Concern” any substance defined as a hazardous substance, hazardous waste, hazardous material, pollutant or contaminant by any Environmental Law, any petroleum hydrocarbon and any degradation product of a petroleum hydrocarbon, asbestos,
PCB, airborne mysote, mold spores, or similar substance, the handling, storage, treatment or exposure of or to which is subject to regulation under any Environmental Law. 
 “Corporate Office” means the headquarters of Sellers located at 101 N. Main Street, Suite 400, Greenville, South Carolina 29601. 
  

 3 

 “Customer” means any borrower, co-borrower or guarantor with respect to any Account.

 “Customer Contracts” any promissory note, retail installment sales agreement or other evidence of consumer indebtedness
payable to any Seller evidencing a consumer credit transaction made or purchased by any Seller and any related security instrument, credit insurance agreement and/or other agreement or instrument related to such consumer loan. 
 “Customer Contracts Books and Records” means (i) all information, in whatever form maintained (and if maintained electronically,
then with the relevant electronic file layout), about the Customer Contracts, (ii) original files related to the Customer Contracts, (iii) documents used to underwrite customer loan applications and other customer credit transaction
applications, and materials explaining all definitions and setting forth the calculations used in such documents, (iv) copies of underwriting and collection policies and procedures, (v) all collection and other customer service notes and
other customer historical information with respect to the Customer Contracts, (vi) all marketing materials used to solicit the Customer Contracts and (vii) all statistical reports in the files of Sellers that reflect results of marketing
efforts or performance of the loans underlying the Customer Contracts, including, without limitation, monthly management information reports for the Customer Contracts. 
 “Damages” any and all liabilities, damages, losses, costs and expenses (including reasonable attorneys’ and consultants’ fees and expenses); provided, however, any calculation of
Damages shall be offset by any accompanying benefit. 
 “Debt” means all obligations for borrowed money. 
 “Deposit” shall have the meaning ascribed to it in Section 3(a). 
 “Effective Time” shall have the meaning ascribed to it in Section 4(a). 
 “Employee Transfer Date” shall have the meaning ascribed to it in Section 7(b). 
 “Employee Offeree” shall have the meaning ascribed to it in Section 7(b). 
 “Environment” means any land surface or subsurface strata, soil, surface water, groundwater, sediment and ambient air (including indoor
air). 
 “Environmental Claims” any claim; litigation; demand; action; cause of action; suit; loss; cost, including
reasonable attorneys’ fees and expert’s fees; Damages; punitive damage; fine, penalty, expense, liability, judgment, governmental investigation; notification of status of being potentially responsible for investigation or clean-up of any
facility or for being in violation or in potential violation of any requirement of Environmental Law; proceeding; consent or administrative order, agreement or decree; Lien; whether threatened, sought, brought or imposed that is related to or arises
in whole or in part, under any Environmental Law. The term “Environmental Claim” also includes, without limitation, any Environmental Claims incurred in testing related to or resulting from any of the foregoing. 
  

 4 

 “Environmental Condition” a condition with respect to the Environment that has resulted
or could result in Damages to any Seller. 
 “Environmental Law” means all applicable Laws, Environmental Permits and
similar items of any Governmental Authority relating to the protection of public health, or the Environment, including, without limitation, (i) CERCLA, the Federal Water Pollution Control Act, the Federal Clean Air Act, the Federal Solid Waste
Disposal Act (which includes the Resource Conservation and Recovery Act), the Federal Toxic Substances Control Act and the Federal Insecticide, Fungicide and Rodenticide Act, each as amended from time to time, any regulations promulgated pursuant
thereto, and any state or local counterparts and (ii) any common law or equitable doctrine (including injunctive relief and tort doctrines such as negligence, nuisance, trespass, strict liability, contribution and indemnification) that may
impose liability or obligations for injuries or damages due to, or threatened as a result of, the presence of, effects of or exposure to any Constituent of Concern. 
 “Environmental Permits” means all permits, licenses, authorizations, certificates and approvals of Governmental Authorities relating to or required by Environmental Laws and necessary for or held in
connection with the conduct of the Business. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended. 
 “ERISA Affiliate” means any Person that, together with the Company prior to the Closing would be considered a
single employer within the meaning of Section 4001 of ERISA or Section 414 of the Code. 
 “Exchange Act” the
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 “Excluded Assets” has
the meaning ascribed to it in Section 2(b). 
 “Excluded Contracts” has the meaning ascribed to it in
Section 2(b)(v). 
 “Financial Statements” has the meaning ascribed to it in Section 5(g).

 “GAAP” means United States generally accepted accounting principles as in effect from time to time, applied on a
consistent basis. 
 “Governmental Authority” means any agency, board, bureau, commission, department, legislature,
instrumentality or administration of the United States, a foreign country or any state, provincial, territorial, municipal, county, local or other governmental entity in the United States or a foreign country. 
 “Governmental Permits” means all licenses, permits, approvals, consents, certificates, waivers, exemptions, orders, registrations,
certificates, variances and other authorizations from any and all Governmental Authorities. 
 “Guarantor” has the meaning
ascribed to it in the preamble to this Agreement. 
  

 5 

 “HSR Act”: means the Hart-Scott-Rodino Antitrust Improvements Act of 1976 or any
successor Law, and the rules and regulations issued pursuant thereto. 
 “Insurance Policy”: the insurance policy issued by
the Insurance Policy Issuer, as contemplated by the Non-Binding Indication Letter attached hereto as Exhibit B. 
 “Insurance
Policy Issuer”: American International Specialty Lines Insurance Company, or replacement insurance carrier reasonably acceptable to Buyer. 
 “Intellectual Property”: includes trademarks, trademark rights, service marks, service mark rights, tradenames, tradename rights, copyrights, works of authorship, inventions, patents, trade secrets, proprietary information,
customer lists and related identifying information, computer software (including all source code and object code), firmware, all world wide web or other internet addresses, sites and domain names, all databases and data collections and all rights
therein, and the right to sue for past infringement, if any, in connection with any of the foregoing, and all documents, disks, records, files and other media on which any of the foregoing is stored. 
 “Intellectual Property Right”: all Intellectual Property that is owned by the Company or any of its Subsidiaries. 
 “Law” means any law, statute, regulation, rule, code, ordinance, decree or order enacted, adopted, issued or promulgated by any
Governmental Authority. 
 “Leased Real Property” has the meaning ascribed to it in Section 5(f). 
 “Liability” means any liability, obligation, judgment, damage, charge, cost, fee, expense, loss, debt and indebtedness of any kind and
nature, absolute or contingent, liquidated or unliquidated, in Law, equity or otherwise. 
 “Licensed Software” means
licensed software used in connection with the conduct of the Business. 
 “Lien” means, with respect to any asset or
property of any character, any mortgage, pledge, security interest, lien (including any mechanics or materialmen lien, tax lien, shipper or warehousemen lien or customs lien), right of first refusal, option or other right to acquire, transfer for
security, conditional sale agreement, title retention agreement, or other like encumbrance pertaining to or affecting such asset or property, whether voluntary or involuntary and whether arising by Law, contract or otherwise. 
 “Material Adverse Effect” means any event, occurrence, fact, condition, change or effect that is materially adverse (i) to the
Acquired Assets, the Business, liabilities, condition (financial or other), or results of operations, considered as a whole, other than general economic conditions and other factors that are not specific to Sellers but rather impact Sellers’
industry generally, or (ii) to Sellers’ ability to perform hereunder or under any Transaction Document; provided, however, that (A) the commencement and conduct of the Bankruptcy Cases and (B) the usual and ordinary
consequences of the filing by a debtor of a bankruptcy case contemplating a reorganization or liquidation of the debtor’s assets, shall not, individually or in the aggregate, be deemed to constitute a Material Adverse Effect. 
  

 6 

 “Material Contract” means a contract requiring the payment of money by Sellers in excess
of $25,000. 
 “New Disclosure” has the meaning ascribed to it in Section 8(w). 
 “Ordinary Course of Business” means the ordinary course of business of Sellers consistent with their past custom and practice, provided
that actions taken by Sellers as contemplated by this Agreement, or in the Bankruptcy Cases, shall not be deemed for any purposes of this Agreement to constitute actions not in the Ordinary Course of Business. 
 “OSHA” the Federal Occupational Safety and Health Act of 1970, as amended from time to time. 
 “Parties” means Buyer, Sellers, Thaxton Group and Thaxton Investment. 
 “Person” means any individual, corporation, partnership, proprietorship, joint venture, limited liability company, association,
joint-stock company, business or statutory trust, unincorporated organization, Governmental Authority, or other entity, organization or institution of any type whatsoever. 
 “Plans” has the meaning ascribed to it in Section 5(m). 
 “Petition Date” has the meaning ascribed to it in the preamble to this Agreement. 
 “Post-Closing Tax Period”: any Tax period (or portion thereof) that is not a Pre-Closing Tax Period. 
 “Pre-Closing Tax Period”: any Tax period (or portion thereof) ending on or before the Closing Date. 
 “Purchase Price” has the meaning ascribed to it in Section 3(a). 
 “Receivables Amount” means the aggregate sum as of the Effective Time of the outstanding “Total of Payments” remaining due and
payable in respect of the Accounts purchased by Buyer under this Agreement, determined in accordance with GAAP. 
 “Retained
Liabilities” has the meaning ascribed to it in Section 2(d). 
 “Sellers” have the meaning ascribed to
it in the preamble to this Agreement. 
 “Sellers’ Closing Documents” has the meaning ascribed to it in
Section 4(b). 
 “Sellers’ Knowledge” means the actual knowledge of the following members of Sellers’
management after due inquiry: Robert R. Dunn, Chief Executive Officer; Roy C. Little, President; and Jim Cantley, Chief Financial Officer. 
  

 7 

 “Straddle Period”: any Tax period beginning before and ending after the Closing Date.

 “Subsidiary” means, with respect to any Person, (i) any corporation, of which a majority of the total voting power
of shares of stock entitled (without regard to the occurrence of any contingency) to vote generally in the election of directors thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof or (ii) any limited liability company, partnership, association, or other business entity, of which a majority of the partnership or other similar ownership interests thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes of this definition, a Person or Persons will be deemed to have a majority ownership interest in a limited
liability company, partnership, association, or other business entity if such Person or Persons will be allocated a majority of limited liability company, partnership, association, or other business entity gains or losses, or is or controls the
managing member or general partner of such limited liability company, partnership, association, or other business entity. 
 “Tax” or “Taxes” means any and all taxes, fees, levies, duties, tariffs, import and other similar charges, imposed by any taxing authority, together with any related interest, penalties, or other additions
to tax, or additional amounts imposed by any taxing authority, and without limiting the generality of the foregoing, shall include net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, value added,
franchise, profits, license, transfer, recording, escheat, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profit, environmental, custom duty, or other tax, governmental fee or other like
assessment or charge of any kind whatsoever. 
 “Tax Matter” has the meaning ascribed to it in Section 9(d).

 “Tax Returns” means all returns, reports and forms required to be filed with a Governmental Authority with respect to
Taxes. 
 “Thaxton Group” has the meaning ascribed to it in the preamble to this Agreement. 
 “Thaxton Investment” has the meaning ascribed to it in the preamble to this Agreement. 
 “Transaction Documents” means, collectively, Sellers’ Closing Documents and Buyer’s Closing Documents. 
 “Transitioned Employee” shall have the meaning ascribed to it in Section 7(b). 
 “Unaudited Financial Statements” has the meaning ascribed to it in Section 5(g). 
 (b) Interpretation. Words used herein, regardless of the number and gender used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the context requires and, as used herein, unless the context otherwise requires, the words “hereof,” “herein” and “hereunder,” and words of
similar import, shall refer to this Agreement as a whole and not to any particular provision hereof. The term “including” shall be deemed to mean “including, without limitation.” Accounting terms 
  

 8 

 used herein shall have the meanings given to them by GAAP applied on a consistent basis by the Person to which they
relate. As the context requires, references to the ‘parties’ or to ‘either party’ means Sellers, on the one hand, and Buyer, on the other hand. Unless otherwise expressly stated, all dollar amounts stated herein are in United
States currency. 
 2. PURCHASE AND SALE AND RELATED MATTERS. 
 (a) Purchase and Sale of Acquired Assets. Upon the terms and subject to the conditions of this Agreement, on the Closing Date, Sellers shall sell, transfer, assign, convey and deliver to Buyer, and Buyer shall
purchase, accept and acquire from Sellers all of Sellers’ right, title and interest as of the Effective Time in and to the assets relating to the Business (but excluding the Excluded Assets), including, but not limited to, the following
(collectively, the “Acquired Assets”): 
 (i) all loan accounts, including, but not limited to, all charged off accounts (the
“Accounts”), the Receivables Amount and all promissory notes, sales finance contracts and other instruments or agreements from which the Receivables Amount is derived, and all related documentation (including documents creating or
perfecting security interests and Liens to secure the indebtedness due on the Accounts, guarantees and arbitration agreements), and all fees, charges and other sums owing on the Accounts; 
 (ii) all Customer Contracts Books and Records, including all original loan documents, folders, credit reports and analyses, records, financial
information and computer generated information, and Sellers’ complete electronic database of payment histories related to the Accounts and the Receivables Amount; 
 (iii) all of Sellers’ rights as beneficiary under, and all other rights of Sellers in or to, all credit health, credit life, property, unemployment, and non-file insurance policies and car club memberships
written in connection with the Accounts and all proceeds, refunds or benefits due thereon arising after the Effective Time and Sellers’ interest in the reserves related thereto; 
 (iv) all of the furniture, furnishings and equipment owned by Sellers located at the Corporate Office and Branch Offices, including those identified on
Schedule 2(a)(iv)(A), and all automobiles owned by Sellers used in the Business including those identified on Schedule 2(a)(iv)(B); 
 (v) the Assumed Leases; 
 (vi) the Assumed Contracts (including all Licensed Software); 
 (vii) all regulatory deposits and lease deposits; 
 (viii) all Intellectual Property Rights; 
 (ix) all of the membership interests in ABS Acquisition, LLC (“ABS”)
held by Thaxton Group and its Affiliates, (A) including the prepayment to ABS (which was reflected 
  

 9 

 on the Balance Sheet as a receivable in the amount of approximately $34,500), (B) Thaxton Group’s interest, if
any, in the Allied Business Systems Customer Agreement, dated August 24, 2005, between Allied Business Systems LLC and Southern Management Corp. and (C) Thaxton Group’s interest, if any, in the Computer Software Maintenance Agreement,
dated August 24, 2005, between Allied Business Systems LLC and Southern Management Corp.; and 
 (x) subject to Section 8(o), all
Sellers’ prepaid expenses. 
 (b) Excluded Assets. Notwithstanding anything to the contrary contained in Section 2(a)
or any other provision of this Agreement, the Acquired Assets shall not include the following (the “Excluded Assets”): 
 (i)
subject to Section 2(a)(vii), all cash and equivalents of cash, including securities or instruments issued by any Person; provided, however, (A) each Branch Office shall be left with $600 to open for business the day
following the Closing; and (B) the deposits described in Section 2(a)(vii) will be transferred to, and inure to the benefit of, Buyer; 
 (ii) all Sellers’ rights to refunds, credits or similar items relating to Taxes prior to the Effective Time; 
 (iii) any asset relating to intercompany cash management transactions among Sellers and their Affiliates; 
 (iv) any claims, causes
of action, choses in action, rights of recovery, rights of set off and rights of recoupment relating to the Excluded Assets or the Retained Liabilities; 
 (v) the contracts, agreements, insurance policies and similar items specifically set forth on Schedule 2(b)(v) (the “Excluded Contracts”) and any proceeds therefrom or refunds related thereto;
and 
 (vi) all corporate minute books of Sellers and related corporate records of Sellers. 
 For the sake of clarity, Sellers have certain amounts contained on Sellers’ balance sheet relating to deferred tax assets, goodwill and other
intangible assets. Because this is an asset deal, none of such financial items contained on Sellers’ balance sheet, as such, are being transferred to Buyer. 
 (c) Assumed Liabilities. As additional consideration for the Acquired Assets, Buyer agrees to assume the following liabilities and obligations of Sellers (collectively, the “Assumed
Liabilities”), which, without limiting the generality of the foregoing, do not include any Retained Liabilities : 
 (i) the
obligation to refund to borrowers unearned insurance premiums and interest in accordance with applicable state Law, as the case may be, in connection with the prepayment, renewal or charge-off of Accounts after the Effective Time; 
  

 10 

 (ii) all litigation, claims, investigations or similar matters arising in the Ordinary Course of
Business, whether such litigation is based on pre-Effective Time or Post-Effective Time matters, including but not limited to, the litigation, claims and investigations set forth on Schedules 5(c), 5(k)(iii), 5(w), and
5(x)(ii), in each such case excluding any amounts covered by insurance (other than the Insurance Policy); 
 (iii) all liabilities
arising from the sale of insurance products and car club memberships arising after the Effective Time (whether such liability is based on pre-Effective Time or Post-Effective Time matters), in each such case excluding any amounts covered by
insurance (other than the Insurance Policy); 
 (iv) subject to the provisions of Section 8(i), all liabilities and obligations
under Assumed Leases; and 
 (v) all liabilities and obligations under Assumed Contracts, including without limitation, Customer Contracts,
whether such liabilities and obligations are based on pre-Effective Time or Post-Effective Time matters, in each such case excluding any amounts covered by insurance (other than the Insurance Policy). 
 Notwithstanding anything contained in this Section 2, the matters relating to employees set forth in Section 7, shall be handled
as set forth in Section 7. In addition, the assumption of the specified liabilities hereunder by Buyer does not affect Sellers representations and warranties and Buyer’s remedies for any breach thereof. 
 (d) Retained Liabilities. Upon Closing, except for the Assumed Liabilities, Sellers shall retain and be liable for all liabilities and obligations
of Sellers (contingent or otherwise) attributable to the conduct of the Business by Sellers prior to the Closing Date, including, without limitation, the following liabilities and obligations (collectively, the “Retained
Liabilities”): 
 (i) all liabilities and obligations of Sellers arising out of or related to any Excluded Asset; 
 (ii) Taxes of any Seller for any Pre-Closing Tax Period or pre-Closing portion of the Straddle Period; 
 (iii) any liabilities that were or should have been asserted as claims in the Bankruptcy Cases; 
 (iv) any liabilities relating to intercompany claims among Sellers and their Affiliates; and 
 (v) all payables incurred in the Ordinary Course of Business prior to the Effective Time, regardless of when invoiced; provided, however, that
this clause (v) does not include those payables relating to American National and Continental Car Club, as set forth in Sections 8(p) and 8(q). 
  

 11 

 3. PURCHASE PRICE. 
 (a) Purchase Price. Upon the execution of this Agreement, Buyer shall pay to Sellers an aggregate of $900,000 in cash by wire transfer to an account or accounts designated by Sellers (the
“Deposit”). At Closing, and in consideration for the purchase of the Acquired Assets, Buyer shall (i) in addition to providing Seller full title and ownership of the Deposit free of any liens, claims or interests, pay to
Sellers an aggregate of $89,100,000, in cash by wire transfer to an account or accounts designated by Sellers (the Deposit, the $89,100,000 and the amount referenced in Section 3(b) being collectively referred to herein as the “Purchase
Price”), and (ii) assume the Assumed Liabilities. The Purchase Price shall be allocated among Sellers as set forth on Schedule 3(a). 
 (b) Increase in Purchase Price. At the Closing, Sellers shall receive an increase in Purchase Price equal to the sum of (i) the unpaid insurance retainage from American National relating to insurance
products sold by Sellers through American National for each calendar month (up to a total of three calendar months, depending on when the Effective Time occurs) for which American National has not yet made a payment prior to the Effective Time,
plus (ii) the commissions relating to Sellers’ sale of Continental Car Club memberships for the calendar month immediately preceding the Effective Time. The amounts payable under this Section 3(b) shall be calculated and
paid at Closing as part of the Purchase Price. If and to the extent that the American National amounts payable pursuant to clause (i) have not yet been determined by American National for one or more calendar months, then the parties will
negotiate in good faith to agree upon a binding estimate for any such month. Such binding estimate shall be based upon the methodologies used by American National in making its determinations, which the parties acknowledge may vary among individual
insurance products, and will take into account the actual dollar amount of policies written during such periods, the applicable commission rates and the claims actually made during such periods. 
 4. CLOSING; CLOSING DOCUMENTS. 
 (a)
Closing. The closing (“Closing”) of the transactions contemplated hereby shall take place at the offices of Nelson Mullins Riley & Scarborough, LLP, in Columbia, South Carolina, at the end of the calendar month
immediately following the date on which the satisfaction or waiver of the conditions to the obligations of the Parties set forth in Section 10 has occurred, or on such other date and at such other place agreed to by the Parties (the date
on which the Closing occurs is referred to in this Agreement as the “Closing Date”). Closing shall be effective as of 12:01 a.m. (Eastern time) on the first Business Day following the Closing Date (the “Effective
Time”). 
 (b) Deliveries by Sellers At the Closing, Sellers shall deliver, or cause to be delivered, to Buyer the following
documents (the “Sellers’ Closing Documents”): 
 (i) an executed counterpart of a bill of sale, substantially in the
form of Exhibit D attached hereto (“Bill of Sale”); 
 (ii) an executed counterpart of the Assumption Agreement;

  

 12 

 (iii) an executed copy of the Bankruptcy Order (if the Parties elect to seek one); 
 (iv) the certificate of Sellers required by Section 10(a)(i), dated the Closing Date, substantially in the form attached hereto as Exhibit
E, duly executed by Sellers; 
 (v) a tax compliance certificate from the South Carolina Department of Revenue; and 
 (vi) such other endorsements, assignments, instruments or other documents as are contemplated by this Agreement or as are reasonably deemed necessary by
Buyer or Buyer’s legal counsel. 
 (c) Deliveries by Buyer. At Closing, Buyer shall deliver to Sellers the following documents
(the “Buyer’s Closing Documents”): 
 (i) the Purchase Price; 
 (ii) an executed counterpart of the Assumption Agreement; 
 (iii) the certificate of Buyer required by Section 10(b)(i), dated the Closing Date, substantially in the form attached hereto as Exhibit F duly executed by Buyer; and 
 (iv) such other endorsements, assignments, instruments or other documents as are contemplated by this Agreement or as reasonably deemed necessary by
Sellers or Sellers’ legal counsel. 
 5. REPRESENTATIONS AND WARRANTIES OF SELLERS. Sellers, jointly and severally, make the following
representations and warranties to Buyer: 
 (a) Organization. Sellers are corporations duly incorporated, validly existing and in good
standing under the Laws of the jurisdictions of their respective incorporations. Sellers have requisite corporate power and authority to own or lease their respective properties and assets (including the Acquired Assets) and to carry on the Business
and to enter into this Agreement and each of the Transaction Documents to be entered into by Sellers and to carry out their obligations hereunder and thereunder. Sellers hold all state law licenses and make all state law registrations or
notifications necessary to engage in the Business as required under state law. The execution, delivery and performance by Sellers of this Agreement and of each Transaction Document to be entered into by Sellers, and the consummation by Sellers of
the transactions contemplated hereby and thereby, have been approved by all necessary corporate action on the part of Sellers. This Agreement has been duly executed and delivered by Sellers and constitutes the legal, valid and binding agreement of
Sellers, enforceable against Sellers in accordance with its terms. Each Transaction Document when required hereunder has been, or will have been, duly executed and delivered by the Seller party thereto and constitutes, or will constitute, the legal,
valid and binding agreement of such Seller, enforceable against such Seller in accordance with its terms. 
  

 13 

 (b) No Approvals; Conflict; Restrictive Documents. 
 (i) Except as disclosed on Schedule 5(b)(i), the execution, delivery and performance of this Agreement by Sellers and each of the Transaction
Documents to which any Seller is a party will not (A) violate the articles or certificate of incorporation, as applicable, or bylaws of any Seller, (B) upon the receipt of any necessary approvals or termination of the waiting period under
the HSR Act, violate any Law or order applicable to any Seller, (C) require any type of material filing with or permit, consent or approval of, or require the giving of any notice to (including under any right of first refusal or similar
provision), any Person (including material filings, consents or approvals required under any permits of any Seller, or any Contracts, Plans or Customer Contracts to which the Company or any of its Subsidiaries is a party) except for filings and
approvals under the HSR Act, filings for local business licenses, and filings required by the Consumer Credit Commissioner of the State of Texas, the South Carolina Board of Financial Institutions, the Georgia Industrial Loan Commissioner, the
Tennessee Commissioner of Financial Institutions, the Oklahoma Administrator of Credit and the Alabama Department of Banking, (D) result in a material violation or breach of, conflict with, constitute (with or without due notice or lapse of
time or both) a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of any Seller, or to a loss of any material benefit to which any Seller is entitled under any Material Contract or Plan
or other material instrument binding upon or providing rights to any Seller or any material permit, license or other similar authorization held by any Seller or (E) result in the creation or imposition of any material Lien on any asset of any
Seller. 
 (ii) None of Sellers is subject to, or a party to, any charter, bylaw, mortgage, Lien, lease, license, permit, instrument, Law,
order, or any other restriction of any kind or character, which (A) since January 1, 2006, has had or could reasonably be expected to have a Material Adverse Effect or (B) assuming the necessary consents disclosed in the applicable
Schedules are obtained, would prevent consummation of the transactions contemplated by this Agreement, compliance by Sellers with the terms, conditions and provisions hereof and the Transaction Documents to which such Seller is a party, or the
continued operation of the Business after the date hereof or the Closing Date on substantially the same basis as historically operated. 
 (c) Litigation. Except for (i) the Bankruptcy Cases and proceedings pending therein, (ii) collections actions in the Ordinary Course of Business that individually are not material, (iii) customer complaints and related
matters in the Ordinary Course of Business that individually are not material, (iv) regulatory examinations in the Ordinary Course of Business that individually are not material and (v) as identified on Schedule 5(c), there is no
litigation, action, lawsuit, claim, audit, review, examination, inquiry, proceeding or investigation pending or, to Sellers’ Knowledge, threatened against Sellers which relates to the Acquired Assets. There is no litigation, action, lawsuit,
claim, audit, review, examination, inquiry, proceeding or investigation involving Sellers pending or, to Sellers’ Knowledge, threatened which questions the legality or propriety of the transactions contemplated by this Agreement or any of the
Transaction Documents. Except for orders or other proceedings in the Bankruptcy Cases and except as identified on Schedule 5(c), there is no outstanding order, writ, injunction, or decree of any Governmental Authority against Sellers.

  

 14 

 (d) Compliance With Applicable Laws. Sellers hold all material Governmental Permits that are
required for the operation of the Business and held all necessary material Governmental Permits at the time the loans related to the Accounts were made to Customers. Sellers are in compliance with the terms of such Governmental Permits and all
applicable Laws, including, if applicable, Section 670 of the John Warner National Authorization Act for Fiscal Year 2007 and the Fair Debt Collection Practices Act, 15 U.S.C. 1692 §§ et seq. 
 (e) Title to Acquired Assets; Sufficiency of Assets. Except as provided in Section 8(v), Sellers have good and valid title to, or in
the case of leaseholds, valid leasehold interests in, all of the Acquired Assets. Upon the execution and delivery to Buyer on the Closing Date of the Bill of Sale, the Assumption Agreement and any other instruments of transfer and assignment
contemplated by this Agreement, Sellers will transfer to Buyer good and valid title to the Acquired Assets, in each case free and clear of all Liens and claims, except for the Liens set forth on Schedule 5(e). The Acquired Assets that are
personal property all are in good operating condition and repair (normal wear and tear excepted) and the Acquired Assets are sufficient to conduct the Business as presently conducted. 
 (f) Leased Real Property. No Seller owns any real property. Schedule 5(f)(i) sets forth a list of all real property leased, occupied,
operated or otherwise used (whether for storage, disposal or otherwise) by Sellers (the “Leased Real Property”). Except as set forth on Schedule 5(f)(ii), all leases of Leased Real Property are valid, binding and
enforceable in accordance with their respective terms and each Seller party thereto is a tenant or possessor in good standing thereunder and all rents due under such leases have been paid. There does not exist under any such lease any material
default or, to Sellers’ Knowledge, any event which with notice or lapse of time or both would constitute a material default. Each Seller is in peaceful and undisturbed possession of the space and/or estate under each lease of which it is a
tenant and has good and valid rights of ingress and egress to and from Leased Real Property and to the public street systems for all usual street, road and utility purposes or to common areas or similar space located in shopping malls or shopping
centers. No Seller or Affiliate of any Seller is a landlord under any lease relating to Leased Real Property. No Seller has received any notice of any appropriation, condemnation or like proceeding, or of any violation of any applicable zoning Law
or order relating to or affecting the Leased Real Property, and to Sellers’ Knowledge, no such proceeding has been threatened or commenced. To Sellers’ Knowledge, the structures, improvements, and fixtures at or upon the Leased Real
Property, including but not limited to, roofs and structural elements thereof and the electrical, plumbing, heating, ventilation, air condition, and similar units and systems, have on the whole to date been reasonably maintained and are in good
operating condition for their intended use, subject to the need for usual and customary maintenance and repair with respect to similar properties of like age and construction. 
 (g) Financial Information. Sellers have delivered to Buyer (i) an audited consolidated balance sheet for the fiscal year ended 2004;
(ii) audited Consolidated balance sheets and statements of income and cash flows for the fiscal years ended 2005 and 2006 ((i) and (ii) being collectively referenced to herein as the “Audited Financial Statements”) and
(iii) an unaudited Consolidated balance sheet and statement of income and cash flow as of and for the four-month period ended April 30, 2007 (the “Unaudited Financial Statements” and together with the Audited Financial
Statements, the “Financial Statements”). The Unaudited Financial Statements 
  

 15 

 have been prepared in accordance with GAAP, (x) except as set forth on Schedule 5(g), (y) except for
usual and customary adjustments at year end with respect to the allocation of items in different periods within the year, consistent with past practice and (z) except that the Unaudited Financial Statements contain no footnotes. Except as set
forth on Schedule 5(g), he Audited Financial Statements have been prepared in accordance with GAAP. The Financial Statements are derived from the books and records (including the general ledgers) of Sellers, accurately reflect such books and
records (including the general ledgers) in all material respects and fairly present in all material respects the financial position of Sellers at the dates thereof and the results of the operations and cash flows of Sellers for the periods
indicated. 
 (h) Accounts Receivable. Except for charged off accounts, the Accounts and Receivables Amounts (i) have been
originated in the Ordinary Course of Business of Sellers and represent fully completed bona fide loan transactions that require no further act on the part of Sellers to make such Accounts payable by the account debtors; (ii) were, and are, not
subject to valid claims, counterclaims, offsets, recoupments or deductions; (iii) represent valid obligations owing to Sellers by account debtors that are not Affiliates of Sellers, which are enforceable in accordance with their respective
terms; except, in the case of clause (i), (ii) or (iii), for such exceptions as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. Sellers have fully and properly accounted and given credit
for all payments from or on behalf of any Customer relating to each of the Accounts. To Sellers’ Knowledge, the methodology used to calculate the reserves for doubtful accounts as reflected on Sellers’ books from time to time is adequate
assuming that after the Effective Time the Business continues to be operated in substantially the same manner as before the Effective Time. 
 (i) Taxes. Sellers have filed, and will continue to timely file (taking into account available extensions) with respect to the Acquired Assets and the Business through the Closing Date, all Tax Returns which are required to be filed
by Sellers with respect to the Acquired Assets and the Business. All Taxes due with respect to such Tax Returns have been paid, whether or not such Tax Returns were filed. Sellers have not executed or filed with the Internal Revenue Service or with
any state or local taxing authorities any agreement extending, or having the effect of extending, the periods for assessment and collection of any Taxes relating to the Acquired Assets or the Business. There is no action, suit, investigation, audit,
claim or assessment pending or, to Sellers’ Knowledge, threatened with respect to Taxes relating to any Acquired Asset or the Business. None of the Acquired Assets is subject to any Tax Liens (other than Liens for Taxes relating to the Acquired
Assets that are not yet due and payable). 
 (j) Brokers’ Fees. Except as set forth on Schedule 5(j), there is no
investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of any Seller or any Affiliate thereof that might be entitled to any fee or commission in connection with the transactions
contemplated by this Agreement. Sellers are solely responsible for the fees and commissions set forth, or required to be set forth, on Schedule 5(j). 
 (k) Customer Contracts. 
 (i) With respect to each Customer Contract, (A) if and to the extent
required by applicable licensing requirements, the relevant Customer Contracts Books and Records are 
  

 16 

 true and complete in all material respects, (B) if and to the extent required by applicable licensing requirements,
the Customer Contracts Books and Records do not contain any untrue statement of fact or omit to state a fact necessary to make any material statements contained therein not misleading, (C) all material information relating to the credit,
charges, fees, payment history, customer inquiries, regulatory correspondence and other material relevant information that is known and available to Sellers relating to each Customer Contract is contained in the relevant Customer Contracts Books and
Records and (D) the interest, fees, costs, expenses, penalties and all other charges of every nature, kind and description whatsoever charged to or levied by any Seller against the Customer Contracts in effect as of the Closing Date were
correctly calculated by Sellers and are accurately reflected in the Customer Contracts Books and Records. 
 (ii) Except as could not
reasonably be expected to have a Material Adverse Effect, each Customer Contract has been originated in the ordinary course of business solely by Sellers or purchased by and validly assigned to Sellers, in each case pursuant to the customary
policies and procedures of Sellers. Written copies of the customary policies and procedures of Sellers have been provided to Buyer. 
 (iii)
Except as disclosed on Schedule 5(k)(iii) and for regulatory examinations in the Ordinary Course of Business that individually are not material, (A) there have been no adverse findings as a result of any audit, investigation, inspection
or any other review or inquiry of any Governmental Authority or internal auditing group concerning the origination or purchase of Customer Contracts by Sellers; (B) no dispute regarding a Customer Contract has been settled by any of Sellers
other than in the Ordinary Course and for immaterial amounts on an individual basis, and no Customer Contract contains a deficiency balance other than in the Ordinary Course and for immaterial amounts on an individual basis; and (C) there is no
cease and desist order or similar order preventing any of Sellers from making telephone contact with an obligor under a Customer Contract (other than the rules under the South Carolina Consumer Protection Code, S.C. Code Ann. §§ 37-1-101
et seq. the Georgia Industrial Loan Act, Ga. Code §§ 7-3-1 et seq., the Oklahoma Consumer Credit Code, Okla. Stat. tit. 14A, §§ 1-101 et seq., and any other similar rules in other states under other
applicable laws) that, in each case, has had or could reasonably be expected to have a Material Adverse Effect. 
 (iv) Except as disclosed
on Schedule 5(k)(iv), (A) no loan or other consumer credit transaction made under a Customer Contract is tied to any kind of interest rebate or interest reduction program and (B) the terms of no Customer Contract have been waived,
altered or modified in any material respect other than immaterial amounts on an individual basis, and do not otherwise deviate materially from the terms actually applied by Sellers to the Customer Contract, other than (x) in connection with
re-agings or otherwise in conformity with the customary policies and procedures of Sellers, (y) in compliance with the Servicemembers Civil Relief Act of 2003, 50 U.S.C. App. §§ 501—593 or (z) as a result of the bankruptcy
of the borrower party to any such Customer Contract. 
 (l) Disclosures to Customers. Sellers properly, timely and fully made all
disclosures to Customers in connection with the origination of the Accounts as required by Law, including, without limitation, the Federal Truth-in-Lending Act, 15 U.S.C. §§ 1601 et seq. and Regulation Z, 12 C.F.R. Part 226 and the
Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 et seq. and Regulation B, 12 C.F.R. Part 202. 
  

 17 

 (m) Employees; ERISA. 
 (i) Schedule 5(m)(i) sets forth a true, correct and complete list of all employees used in the Business with each such employee’s job title
and location of employment. Schedule 5(m)(i) sets forth all employees of Sellers (A) who received annual total compensation in excess of $100,000 in 2005 or 2006, or (B) who are currently scheduled to receive annual total
compensation in excess of $100,000 from the Company for 2007. No employees have employment contracts with a Seller. 
 (ii) Schedule
5(m)(ii) sets forth a list of all employee benefit plans (as defined in Section 3(3) of ERISA), and all other compensation or benefit plans, programs, arrangements, contracts or schemes, written or oral, statutory or contractual, with
respect to which any Seller or any ERISA Affiliate has any obligation or liability to contribute or which are maintained, contributed to or sponsored by the Company or any ERISA Affiliate for the benefit of any current or former employee, officer or
director of the Company or any ERISA Affiliate (collectively, the “Plans”). Except as set forth on Schedule 5(m)(ii), with respect to each Plan, the Company has delivered to Buyer a true and complete copy of each such Plan
(including all amendments thereto) and a true and complete copy of each material document (including all amendments thereto) prepared in connection with each such Plan including, and to the extent applicable, (A) a copy of each trust or other
funding arrangement, (B) each summary plan description and summary of material modifications, (C) the three most recently filed IRS Forms 5500 (including all schedules) and (D) the most recent determination letter referred to in
Section 5(m)(v). Neither the Company nor any ERISA Affiliate has made any express or implied commitment, whether legally enforceable or not, to create, incur liability with respect to or cause to exist any employee benefit plan, program,
arrangement, contract or scheme or to modify any Plan, other than as required by law. 
 (iii) None of the Plans (A) is a plan that is
or has ever been subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code, (B) is a “multiemployer plan” as defined in Section 3(37) of ERISA, (C) is a plan maintained in connection with a
trust described in Section 501(c)(9) of the Code, (D) except as disclosed on Schedule 5(m)(iii), provides for the payment of separation, severance, termination or similar-type benefits to any person or (E) provides for or
promises retiree medical or life insurance benefits to any current or former employee, officer or director of the Company or any ERISA Affiliate except to the extent required by Law. Each of the Plans is subject only to the federal or state Laws of
the United States or a political subdivision thereof. 
 (iv) Except as set forth on Schedule 5(m)(iv), each Plan is in compliance in
all material respects with, and has always been operated in all material respects in accordance with, its terms and the requirements of all applicable Laws, and each of the Company and the ERISA Affiliates has satisfied in all material respects all
of its statutory, regulatory and contractual obligations with respect to each such Plan. No action, suit, claim or proceeding is pending or, to Sellers’ Knowledge, threatened with respect to any Plan (other than claims for benefits in the
ordinary course) and, no fact or event exists that could give rise to any such action, suit or claim. 
  

 18 

 (v) Each Plan or related trust that is intended to be qualified or exempt from taxation under
Section 401(a) or 501(a) of the Code has received a favorable determination letter from the IRS that it is so qualified or exempt, and, nothing has occurred since the date of such determination letter that could reasonably be expected to
adversely affect the qualified or exempt status of any Plan or related trust. 
 (vi) Except as disclosed on Schedule 5(m)(vi), there
has been no non-exempt prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) with respect to any Plan. Neither the Company nor any ERISA Affiliate has incurred any liability for any excise tax
arising under the Code with respect to a Plan and no fact or event exists that could give rise to such liability. Neither the Company nor any ERISA Affiliate has incurred any liability relating to Title IV of ERISA (other than for the payment of
premiums to the Pension Benefit Guaranty Corporation), and no fact or event exists that could give rise to any such liability. 
 (vii) Except
as disclosed on Schedule 5(m)(vii), all contributions, premiums or payments required to be made with respect to each Plan on or before the Closing Date have been made on or before their due dates. All such contributions have been fully
deducted for income tax purposes and no such deduction has been challenged or disallowed by any Governmental Authority, and no fact or event exists which could reasonably be expected to give rise to any such challenge or disallowance. 
 (viii) Except as disclosed on Schedule 5(m)(viii), there has been no amendment to, interpretation of or announcement (whether or not written) by
the Company or any ERISA Affiliate relating to, or change in employee participation or coverage under, any Plan that would increase the expense of maintaining such Plan above the level of the expense incurred in respect thereto for the most recent
fiscal year ended prior to the date of this Agreement. 
 (ix) Except as set forth on Schedule 5(m)(ix), no employee or former employee
of the Company or any ERISA Affiliate, is, or will become, entitled to any bonus, retirement, severance, job security or similar benefit or enhanced such benefit (including acceleration of vesting or exercise of an incentive award) as a result of
the transactions contemplated by this Agreement. 
 (x) Except as set forth on Schedule 5(m)(x), the Company has not had, within the
six years preceding the date of this Agreement, any ERISA Affiliates other than its Subsidiaries. 
 (n) Material Contracts.

 (i) Except for (A) insurance policies and (B) agreements, policies and related documents regarding Sellers’ benefit plans
(which are governed by Section 8(t) (true, correct and complete copies of which have been provided to Buyer)), Schedule 5(n)(i) sets forth a 
  

 19 

 true, correct and complete list of all Material Contracts of Sellers. Each Material Contract disclosed on Schedule
5(n)(i) or any other Schedule to this Agreement or required to be disclosed pursuant to this Section 5(n) is a valid and binding contract of each Seller that is a party thereto and is in full force and effect, and no Seller, or any
of their Affiliates, nor to Sellers’ Knowledge any other party thereto is in default or breach in any material respect under the terms of any such Material Contract. To Sellers’ Knowledge, there is no event, occurrence, condition or act
(including the consummation of the transactions contemplated hereby) that, with the giving of notice or the passage of time, could reasonably be expected to become a default or constitute a material breach under any such Material Contract by any of
the parties thereto. Schedule 5(n)(i) includes a list of trade creditors that were paid $20,000 or more for the period May 2006 to April 2007. Sellers have delivered to Buyer true and complete copies of each written Material Contract listed
on Schedule 5(n)(i). There are no oral Material Contracts. 
 (ii) Except as disclosed on Schedule 5(n)(ii), no Seller has
received any written notice or communication (A) alleging breach of any Material Contract disclosed or required to be disclosed on Schedule 5(n)(i), (B) terminating or threatening to terminate any Material Contract disclosed or
required to be disclosed on Schedule 5(n)(i) or (C) of intent not to renew a Material Contract disclosed or required to be disclosed on Schedule 5(n)(i). 
 (iii) Schedule 5(n)(iii) sets forth every grant or payment (whether fixed or contingent) by a Seller paid or payable after the Balance Sheet Date
of any severance or termination pay to any former employee of any Seller who received annual total compensation of $50,000 or more, or any director or officer of any Seller. 
 (o) No Undisclosed Liabilities. There are no material liabilities of any Seller or facts or circumstances that could reasonably be expected to
give rise to material liabilities of any Seller, whether accrued, contingent, absolute, determined, determinable or otherwise, other than (i) liabilities fully recorded or reserved for in the Balance Sheet, (ii) liabilities specifically
disclosed on Schedule 5(o), (iii) liabilities incurred in the Ordinary Course of Business and (iv) other liabilities for legal, accounting and other professional expenses incurred in connection with the transactions contemplated by
this Agreement. 
 (p) Interested Transactions. Except for intercompany cash management transactions among Sellers and their
Affiliates that would not cause Buyer to have any liabilities or to lose any rights, Schedule 5(p) contains a complete list of all (i) amounts and obligations owed between any Seller and its Affiliates, on the one hand, and any
other Seller and its Affiliates, on the other hand, and (ii) transactions and services provided since January 1, 2004 between any Seller and its Affiliates, on the one hand, and any other Seller and its Affiliates, on the other hand.
Except as disclosed on Schedule 5(p) and except in the ordinary course of employment, since the Balance Sheet Date, (i) there has not been any accrual of liability, incurrence of an obligation or entering into or modifying a transaction
or agreement (A) by any Seller to any other Seller or to any Affiliate of such Seller or (B) between any Seller and any other Seller or any Affiliates of such Seller and (ii) there has not been any payment of dividends or other
payments of cash (except for intercompany cash management transactions among Sellers and their Affiliates which would not cause Buyer to have any liability or to lose any rights) or other property by any Seller or its Affiliates to any Seller or its
Affiliates, or the incurrence of any legal or financial obligation to any such Person that would cause Buyer to incur any liability or to lose any rights. 
  

 20 

 (q) Absence of Certain Changes. Except as disclosed on Schedule 5(q), since the Balance
Sheet Date, (i) Sellers have conducted the Business in the Ordinary Course of Business, and (ii) there has not been any event, occurrence, development, circumstance or state of facts that (A) has had or that could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect or (B) would have constituted a violation of any covenant (including the covenants contained in Section 8) by Sellers under this Agreement had such
covenant applied to any of them since the Balance Sheet Date. 
 (r) Insurance Coverage. Sellers have furnished to Buyer a list of,
and true and complete copies of, all insurance policies and fidelity bonds covering the assets, business, operations, employees, and officers and directors of Sellers. There is no material claim by any Seller pending under any of such policies or
bonds as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds. All premiums due and payable under all such policies and bonds have been paid, and, except as set forth on Schedule 5(r), none
of Sellers is liable for any retrospective premiums under any such policies or bonds. Sellers have complied in all material respects with the terms and conditions of all such policies and bonds. Such policies of insurance and bonds (or other
policies and bonds providing substantially similar insurance coverage) are in full force and effect. Such policies of insurance and bonds are of the type and in amounts that Sellers believe are customary for the industry. Except as disclosed on
Schedule 5(r), to Sellers’ Knowledge there is no threatened termination of, or premium increase with respect to, any of such policies or bonds. Since the last renewal date of any insurance policy, there has not been any material adverse
change in the relationship of any Seller on the one hand, and any of its insurers on the other hand, or on the premiums payable pursuant to such policies. 
 (s) Intellectual Property. 
 (i) Schedule 5(s) sets forth a list of all patents, patent
applications, registered trademarks and service marks, trademark and service mark applications and registered copyrights owned by each Seller and all material licenses held by each Seller to use third-party patents, trademarks, service marks and
copyrights, including any ongoing software or website maintenance agreements, as to which each Seller is a party, other than licenses for “off-the-shelf” software, including the identity of all parties thereto. 
 (ii) The Company or one of its Subsidiaries owns or has a valid and legally enforceable right to use all Intellectual Property necessary to conduct the
Business as currently conducted. 
  

 21 

 (iii) Except as disclosed in Schedule 5(s): 
 (A) To Sellers’ Knowledge, none of Sellers’ use of any material Intellectual Property Rights or any Licensed Software infringes or
misappropriates any intellectual property rights or other proprietary rights of any third party, none of Sellers has received any notice from any Person alleging, challenging or questioning that such Seller’s use of Intellectual Property Rights
or any Licensed Software infringes on or misappropriates any trademark, service mark, trade name, invention, patent, trade secret, copyright, domain name, know-how or any other similar type of proprietary intellectual property right of any other
Person and, to Sellers’ Knowledge, no Person is infringing on any Intellectual Property Rights of Sellers; 
 (B)(1) no Intellectual
Property Right is subject to any outstanding Order, stipulation or agreement restricting the use thereof by any Seller or Buyer or restricting the licensing thereof by any Seller or Buyer to any Person, and (2) to Sellers’ Knowledge, no
Licensed Software is subject to any outstanding Order, stipulation or agreement restricting the use thereof by any Seller or Buyer; 
 (C)
except as set forth on Schedule 5(s), none of Sellers has entered into any agreement to indemnify any other Person against any charge of infringement of any Intellectual Property Right or any Licensed Software; 
 (D) in connection with the use of the Intellectual Property Rights by Sellers, none of Sellers owes to any other Person any fee, royalty or other
payment as a result of the use of such Intellectual Property Rights, and, after the Closing, Buyer will owe no such fees; 
 (E) none of
Sellers has entered into any license or other contract pursuant to which any Seller has granted to any other Person the right to use any Intellectual Property Rights or any Licensed Software; 
 (F) assuming the necessary consents and approvals disclosed in the applicable Schedules are obtained, there are no actions that must be taken by any
Seller or Buyer within 60 days following the Closing Date that, if not taken, would result in the loss of any Intellectual Property Right or any Licensed Software; 
 (G) to the extent Sellers have Intellectual Property Rights and confidential and proprietary information, Sellers have taken commercially reasonable efforts to protect and preserve the confidentiality of all of such
Intellectual Property Rights and confidential and proprietary information that is not otherwise publicly disclosed; and 
 (H) assuming the
necessary consents and approvals disclosed in the applicable Schedules are obtained, the Closing will not affect any Buyer’s right to use any Intellectual Property currently used in connection with the Business. 
 (t) Environmental Matters. 
 (i)
Except as disclosed on Schedule 5(t): 
  

 22 

 (A) none of Sellers has generated, recycled, used, treated or stored on, transported to or from, or
released or disposed on, the Leased Real Property any Constituents of Concern except in compliance with Environmental Laws; 
 (B) Sellers
are in material compliance with all applicable Environmental Laws (including by obtaining all necessary Environmental Permits for the ownership, use and/or operation of the Business in compliance with the requirements of all Environmental Laws), and
the requirements of Environmental Permits issued under such Environmental Laws; 
 (C) there are no pending or, to Sellers’ Knowledge,
threatened Environmental Claims against any Seller or, to Sellers’ Knowledge, any Leased Real Property; 
 (D) to Sellers’
Knowledge, there are no facts, circumstances, conditions or occurrences that could reasonably be anticipated (i) to form the basis of an Environmental Claim against any Seller or, to Sellers’ Knowledge, any Leased Real Property or any of
the Acquired Assets or (ii) to Sellers’ Knowledge, to cause any such current Leased Real Property or assets to be subject to any restrictions on its ownership, occupancy, use or transferability under any Environmental Law; 
 (E) to Sellers’ Knowledge, there are no underground storage tanks located on any Leased Real Property, and none of Sellers has ever used any
underground storage tank on any of the Leased Real Property; 
 (F) none of Sellers nor, to Sellers’ Knowledge, the Leased Real
Property is listed or proposed for listing on the National Priorities List under CERCLA or, to Sellers’ Knowledge, on any similar federal, state or foreign list of sites requiring investigation or clean-up, nor has any Seller received any
notice as a potentially responsible party under the foregoing; 
 (G) there are no Environmental Permits issued to any Seller ; and

 (H) none of Sellers has any liability or obligation, and none of Sellers has entered into an agreement or consent order assuming any
liability or obligation, under any Environmental Law (including any obligation to remediate any Environmental Condition whether caused by any Seller or any other Person). 
 (ii) Sellers have not conducted any environmental investigations, studies, audits, tests, reviews or other analyses related to the Leased Real Property. Sellers are not aware of any environmental investigations,
studies, audits, tests, reviews or other analyses related to the Leased Property conducted by any other Person. 
 (u) Interests in
Customers and Others. Except as disclosed on Schedule 5(u), no Seller and no officer or director of any Seller or any of their respective Affiliates possesses, directly or indirectly, any ownership or pecuniary interest in, or is a
trustee, director, officer, manager, Affiliate or employee of, any Person that is a seller to, or customer, supplier, lessor, lessee, licensor, or competitor of any Seller or any of its Affiliates, including, without limitation, 
  

 23 

 any counterparty to any Material Contract. No Seller nor any officer or director of any Seller or any of their respective
Affiliates has directly or indirectly offered or solicited any significant payment or other benefit that would be illegal in order to promote sales or help, procure or maintain good relations with any seller to, or customer, supplier, lessor,
lessee, licensor, competitor or potential competitor of any Seller, including any counterparty to any Material Contract. Ownership of 2% or less of any class of securities a Person whose securities are registered under the Exchange Act will not be
deemed to be an ownership interest for purposes of this Section 5(u). 
 (v) Relationships; Other Matters. 
 (i) The relationships of Sellers with their respective lessors, suppliers, vendors and employees are good commercial working relationships, and, except as
disclosed on Schedule 5(v), since January 1, 2006, no employees of any Seller receiving annual total compensation in excess of $100,000, or any material lessors, suppliers or vendors have canceled or terminated or otherwise materially
altered or notified any Seller of any intention or otherwise threatened to cancel or terminate or materially alter any relationship with any Seller effective prior to, as of, or, to Sellers’ Knowledge, after the Closing. There has not been, and
none of Sellers has any reason to believe that there will be, any material change in relations with material lessors, suppliers, or vendors of any Seller. 
 (ii) To Sellers’ Knowledge, no employee who receives annual total compensation in excess of $100,000 per year and no director of any Seller is a party to, or is otherwise bound by, any contract, including any
confidentiality, non-competition, or proprietary rights contract, between such employee or director and any other Person that in any way adversely affects or will affect (A) the performance of his duties as an employee of the Business
immediately after the Closing, (B) the ability of Buyer to conduct the Business consistent with past practice or (C) the ability of Buyer to conduct the Business after the Closing in a manner consistent with the conduct of the Business
prior to the Closing. 
 (w) Other Employment Matters. Except as set forth on Schedule 5(w), (i) Sellers are in material
compliance with all Laws respecting employment and employment practices and terms and conditions of employment, including all minimum wage and overtime laws and wage payment Laws, and have not, and are not, engaged in any unfair labor practice,
(ii) no unfair labor practice complaint against any Seller is pending before the National Labor Relations Board, (iii) there is no labor strike, dispute, slowdown or stoppage pending or threatened against or involving any Seller,
(iv) none of Sellers is a party to any collective bargaining agreement and no collective bargaining agreement is currently being negotiated by any Seller; (v) none of Sellers has breached a collective bargaining agreement; (vi) to
Sellers’ Knowledge, no representation question exists respecting employees of any Seller; and (vii) except as specifically set forth on Schedule 5(w), no claim in respect of the employment of any employee of any Seller has been
asserted and is currently pending or, to Sellers’ Knowledge, threatened, against any Seller. 
  

 24 

 (x) Workers’ Compensation/OSHA. 
 (i) Sellers have provided Buyer all inspection reports issued under OSHA or any other occupational health and safety legislation since January 1,
2005. There are no outstanding inspection orders or any pending or, to Sellers’ Knowledge, threatened charges under OSHA or any other applicable occupational health and safety legislation. There have been no fatal or OSHA reportable accidents
since December 31, 2000 that could lead to charges under OSHA or any other applicable occupational health and safety legislation. Sellers have complied in all material respects with any orders issued to such entity under OSHA or any other
applicable occupational health and safety legislation and there are no appeals of any orders that are currently outstanding. 
 (ii) Except
as set forth on Schedule 5(x)(ii), there is not pending against any Seller any workers’ compensation claims, and, to Sellers’ Knowledge, there are no facts that would give rise to such a claim or complaint. None of Sellers has
received any notice of a citation, penalty or assessment from any agency with responsibility for workers’ compensation or occupational safety and health 
 (y) No Debt. Except as set forth on Schedule 5(y), none of Sellers has any Debt. 
 (z) No
Dividends; Distributions. No Seller has declared, paid or otherwise set aside any dividend or other distribution or payment to any other Seller or any Affiliate thereof, except for cash dividends or cash distributions that would not cause Buyer
to incur any liability and which will have no impact on Buyer’s ability to operate the Business post-Closing as contemplated hereunder. 
 (aa) Inactive Subsidiaries. 
 (i) SOCO Reinsurance. Since June 30, 2004, SOCO Reinsurance Ltd., a Turks and
Caicos Islands corporation, has not issued any policies of insurance or conducted any business activities other than the winding down of its business in accordance with applicable Law. 
 (ii) Southern Financial Management, Inc. and Covington Credit of Louisiana, Inc.. Southern Financial Management, Inc. and Covington Credit of
Louisiana, Inc. have not conducted any business since 1999, and since inception, respectively, and have no assets. 
 EXCEPT AS EXPRESSLY SET FORTH IN THIS
SECTION 5, SELLERS MAKE NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF ANY OF THEIR ASSETS (INCLUDING THE ACQUIRED ASSETS), LIABILITIES OR OPERATIONS, INCLUDING WITH RESPECT TO MERCHANTABILITY OR FITNESS
FOR ANY PARTICULAR PURPOSE, AND ANY SUCH OTHER REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED. Buyer hereby acknowledges and agrees that, except to the extent specifically set forth in this Section 5, Buyer is purchasing
the Acquired Assets on an “AS IS, WHERE IS” basis. Without 
  

 25 

 limiting the generality of the foregoing, except as expressly set forth in this Section 5, Sellers make no
representation or warranty, and none shall be implied at law or in equity, regarding: any assets other than the Acquired Assets; any projections, estimates or budgets heretofore delivered or made available to Buyer of future revenues, future
expenses or future expenditures, future results of operations (or any component thereof), future cash flows or future financial condition (or any component thereof) of the Business; any other information or documents made available to Buyer or its
agents and representatives with respect to Sellers or any of the Acquired Assets; or the value or collectibility of the Business or any of the Acquired Assets. 
 Buyer acknowledges that Sellers have established reserves relating to the Accounts as reflected on Sellers’ books. Buyer acknowledges that in the Ordinary Course of Business, Accounts that are not collectible are
charged off. Buyer acknowledges and agrees that Sellers are not providing any representation or warranty as to the collectibility of the Accounts and Buyers will not use Accounts being charged off in the Ordinary Course of Business to attempt to
establish a breach of representation or warranty unless the representation and warranty relating to the reserves in Section 5(h) is breached. 
 Buyer also acknowledges that Sellers do not file UCC financing statements regarding Sellers’ liens with respect to the Accounts and do not take possession of title to any pledged property, and that this failure
by Sellers to do so shall not constitute a breach of any representation or warranty. 
 6. REPRESENTATIONS AND WARRANTIES OF BUYER AND GUARANTOR.

 (a) Buyer hereby represents and warrants to Sellers as follows: 
 (i) Organization and Authority. Buyer is a corporation duly incorporated, validly existing and in good standing under the Laws of its jurisdiction
of incorporation. Buyer has requisite corporate power and authority to enter into this Agreement and each of the Transaction Documents to be entered into by Buyer and to carry out its obligations hereunder and thereunder. The execution, delivery and
performance by Buyer of this Agreement and of each Transaction Document to be entered into by Buyer and the consummation by Buyer of the transactions contemplated hereby and thereby, have been approved by all necessary corporate action on the part
of Buyer. This Agreement has been duly executed and delivered by Buyer and constitutes the legal, valid and binding agreement of Buyer, enforceable against it in accordance with its terms. Each Transaction Document to which Buyer is a party has been
duly executed and delivered by Buyer and constitutes the legal, valid and binding agreement of Buyer, enforceable against it in accordance with its terms. 
 (ii) No Approvals; Conflict. The execution, delivery and performance by Buyer of this Agreement will not (A) violate the certificate of incorporation or bylaws of Buyer, (B) upon the receipt of
necessary approvals or termination of the waiting period under the HSR Act, violate any applicable Law or order or (C) require any filing with or permit, consent or approval of, or the giving of any notice to, any Person, except in the case of
clauses (B) and (C) for filings and approvals under the HSR Act, filings for local business licenses and filings required by the Consumer Credit Commissioner of the State of Texas, the South Carolina Board 
  

 26 

 of Financial Institutions, the Georgia Industrial Loan Commissioner, the Tennessee Commissioner of Financial
Institutions, the Oklahoma Administrator of Credit and the Alabama Department of Banking and such other filings, permits, consents, approvals or notices and violations that, individually or in the aggregate would not reasonably be expected to
materially and adversely affect Buyer’s right or ability to consummate the transactions contemplated by this Agreement. 
 (iii)
Litigation. There is no litigation, action, lawsuit, claim, audit, review, examination, inquiry, proceeding or investigation involving Buyer pending or, to Buyer’s Knowledge, threatened which questions the legality or propriety of the
transactions contemplated by this Agreement or any of the Transaction Documents. 
 (iv) Brokers’ Fees There is no investment
banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of Buyer or any Affiliate thereof that might be entitled to any fee or commission in connection with the transactions contemplated by this
Agreement. 
 (b) Guarantor hereby represents and warrants to Sellers that Guarantor is a corporation duly incorporated, validly existing and
in good standing under the Laws of its jurisdiction of incorporation. Guarantor has requisite corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution, delivery and performance by Guarantor
of this Agreement and the consummation by Guarantor of the transactions contemplated hereby have been approved by all necessary corporate action on the part of Guarantor. This Agreement has been duly executed and delivered by Guarantor and
constitutes the legal, valid and binding agreement of Guarantor, enforceable against it in accordance with its terms. 
 7. COORDINATION REGARDING
EMPLOYMENT. 
 (a) Employees. Sellers and Buyer shall coordinate with each other regarding any announcements of the
transactions contemplated by this Agreement to the employees of Sellers and any announcements regarding termination of employment by Sellers as a result of such transactions. Buyer agrees to offer the employment arrangements set forth on Schedule
7(a) hereto to the individuals set forth on Schedule 7(a). 
 (b) Offers of at-will employment. It is the intent of Sellers
and Buyer that Buyer will extend offers of at-will employment to all or substantially all of Sellers’ employees. In this regard, Buyer will extend offers of at-will employment to those employees that Sellers and Buyer mutually agree prior to
Closing to list on Schedule 7(b) (each, an “Employee Offeree”) in accordance with Buyer’s normal employment policies, subject to the provisions set forth in this Section 7(b). The Employee Offerees shall
include all employees set forth on Schedule 7(b) who are designated on such Schedule to be on leave in accordance with Sellers’ policies and are ready to return to work, provided that such employees return to work within six months after
the Effective Date. Each Employee Offeree who accepts Buyer’s offer of employment pursuant to Buyer’s normal employment policies and this Section 7(b) will become, on the later of (i) the Effective Date or (ii) the
date as of which his or her acceptance becomes effective (the 
  

 27 

 “Employee Transfer Date”) an employee of Buyer (each, a “Transitioned Employee”) and
will be eligible to participate in all employee benefit plans or employment policies and programs available to similarly situated employees of Buyer. 
 (c) Past Service Credits. For purposes of vesting and participation in any “employee benefit plan” (as such term is defined in the Employee Retirement Income Security Act of 1974, as amended)
maintained by Buyer, Buyer will recognize and give past service credit, to the extent permitted by the applicable carriers, for all service earned by each Transitioned Employee while an employee of Sellers. Such past service credit will be
established entirely on the information as recorded by Sellers and promptly communicated to Buyer, and Buyer will not be responsible to audit, validate or confirm the accuracy of any such information. 
 (d) Sellers Cooperation. .Sellers will cooperate with Buyer in connection with the making by Buyer of the offers of at-will employment
contemplated by Section 7(b) and the distribution of employment information to the Employee Offerees. Sellers will provide all necessary or appropriate employee data or benefits information in their custody. Buyer may request at any
time, and Sellers agree to furnish to Buyer or their designated agent, in such format as is mutually agreed, all reasonably required information pertaining to any and all Employee Offerees’ employment and benefits as is reasonable for Buyer to
provide or administer its benefits or payroll or as may be required by any law or governmental agency. 
 (e) Specific Agreements
Regarding Employees. Notwithstanding anything in this Agreement to the contrary, Sellers and Buyer specifically agree as follows with respect to the Transitioned Employees: 
 (i) Salaries. Sellers shall be responsible for the payment of all regular salary of Sellers’ employees and the withholding of applicable Taxes
prior to the Effective Time. Buyer shall be responsible for the payment of all regular salary of the Transitioned Employees and the withholding of applicable Taxes on and after the Effective Time. The salary paid by Buyer to the Transitioned
Employees shall be at least equal to the salary the Transitioned Employees were paid by Sellers. 
 (ii) Monthly Bonuses. Sellers
shall be responsible for the payment of all monthly bonuses earned (whether or not paid or payable) prior to the Effective Time and the withholding of applicable Taxes relating thereto. Buyer shall assume the Monthly Bonus plans currently in effect
as described on Schedule 7(e)(ii) and shall be responsible for the payment of all monthly bonuses earned after the Effective Time and the withholding of applicable Taxes relating thereto. 
 (iii) Annual Bonuses. Subject to the provisions of Section 13(a), Sellers shall have no responsibility for the yearly bonuses for
2007. Buyer shall assume the annual bonus plans currently in effect as described on Schedule 7(e)(iii) and shall be responsible for the payment of all annual bonuses for 2007 and thereafter and the withholding of applicable Taxes relating
thereto. 
  

 28 

 (iv) Vacation; Sick Time; Personal Time. For 2007, Buyer shall provide the Transitioned Employees
at least the same vacation, sick, and personal time as they would have had if they had continued to work for Sellers for the remainder of 2007 as set forth on Schedule 7(e)(iv). 
 (v) Health Plan. For 2007, Buyer shall assume Sellers’ health plan described on Schedule 7(e)(v) and shall assume all obligations
thereunder or relating thereto. With respect to claims, Sellers shall be responsible for the payment of all claims under such health plan, including without limitation claims that are incurred but not reported, for services rendered prior to the
Effective Time regardless of when such claims are paid. Buyer shall be responsible for the payment of all claims under such health plan for services rendered on or after the Effective Time. 
 (vi) 401(k) Plan. As soon as practicable after the Effective Time, Sellers and Buyer will permit direct transfers pursuant to
Section 401(a)(31) of the Internal Revenue Code of 1986, as amended (the “Code”), of pre-tax account balances and outstanding loan balances, if applicable, of Transitioned Employees from Sellers 401(k) Plan to Buyer’s 401(k)
Plan. Buyer’s 401(k) Plan will provide that (i) Transitioned Employees will be eligible to participate in Buyer’s 401(k) Plan as of the Effective Time and (ii) Buyer’s 401(k) Plan will take into account the Transitioned
Employees’ past service with Sellers for purposes of eligibility and vesting in Buyer’s 401(k) Plan. Transitioned Employees will be required to sign new salary deferral agreements with respect to Buyer’s 401(k) Plan. 
 (vii) Cafeteria Plan. Sellers shall assign the flexible spending accounts under the Cafeteria Plan to Buyer, and Buyer shall continue to operate
the Cafeteria Plan for the benefit of the Transitioned Employees through at least the end of 2007. If, and to the extent, (x) the aggregate amounts that have been withheld from the Transitioned Employees under the flexible spending account
components of the Cafeteria Plan as of the Closing Date exceed (y) the aggregate amounts that have paid on behalf of the Transitioned Employees under such flexible spending accounts as of the Closing Date, then Sellers will pay such difference
to Buyer at Closing. 
 (viii) If, and to the extent, (x) the aggregate amounts that have been withheld from the Transitioned Employees
under the Cafeteria Plan as of the Closing Date exceed (y) the aggregate amounts that have paid on behalf of the Transitioned Employees as of the Closing Date, then Sellers will pay such difference to Buyer at Closing. 
 (ix) Employee Advances. Sellers shall transfer all accounts receivable to Buyer relating to employee advances set forth on Schedule
7(e)(viii), and Buyer shall keep all repayments of such advances. 
 (x) Disability; Life Insurance and AD&D. Subject
to any applicable insurance carrier approval, Buyer will continue to offer coverage for disability, life insurance and AD&D reasonably comparable in the aggregate to the coverage previously offered by Sellers through at least the end of 2007.

  

 29 

 Section 7 is intended to be an agreement solely between Sellers and Buyer. As with respect to
any other Person, notwithstanding anything in the Agreement to the contrary, nothing contained in this Agreement, express or implied, (i) shall be construed to establish, amend, or modify any benefit plan, program, agreement or arrangement;
(ii) shall alter or limit the ability of Buyer, the Company or its Subsidiaries to amend, modify or terminate any benefit plan, program, agreement or arrangement at any time assumed, established, sponsored or maintained by any of them;
(iii) is intended to confer upon any Person any right to employment or continued employment for any period of time by reason of this Agreement, or any right to a particular term or condition of employment; or (iv) is intended to confer
upon any Person any other rights as a third-party beneficiary of this Agreement. 
 8. COVENANTS. 
 (a) General. Each of the parties will use its commercially reasonable efforts to take all actions and to do all things necessary, proper or
advisable in order to consummate and make effective the transactions contemplated by this Agreement, including satisfaction of the closing conditions set forth in Section 10. 
 (b) Consents and Approvals. Sellers and Buyer will each, as promptly as practicable, (i) use commercially reasonable efforts to obtain all
consents, approvals or actions of, make all filings with and give all notices to Governmental Authorities or any other Person required of Sellers or Buyer, respectively, for such party to consummate the transactions contemplated hereby and by the
Transaction Documents, including those described in Schedule 5(b); provided, however, that Sellers and Buyer shall be under no obligation to provide any financial incentive to any Person for its grant of any consent or approval
required to consummate the transactions contemplated hereby and by the Transaction Documents, (ii) provide such other information and communications to such Governmental Authorities or other Persons as such Governmental Authorities or other
Persons may reasonably request in connection therewith and (iii) provide reasonable cooperation to the other party in connection with the performance of its obligations under this Section 8(b). Each Party will provide prompt
notification to the other Party when any such consent, approval, action, filing or notice referred to in clause (i) above is obtained, taken, made or given, as applicable. 
 (c) Operation of Business. 
 (i)
Except as otherwise contemplated by this Agreement, Sellers will not engage in any practice, take any action or enter into any transaction outside the Ordinary Course of Business. Without limiting the generality of the foregoing, except as otherwise
contemplated by this Agreement, Sellers will operate the Business in the Ordinary Course of Business and will use commercially reasonable efforts to (A) preserve intact their business organization, (B) keep available the services of their
officers and employees, (C) continue in full force and effect without material modification all existing material policies or binders of insurance currently maintained in respect of each Seller, (D) pay their indebtedness and trade and
other accounts payable punctually when and as the same will become due and payable in the Ordinary Course of Business and perform and observe, in all material respects, their duties and obligations under all Material Contracts, (E) maintain
their relationships and goodwill with suppliers, customers, 
  

 30 

 landlords, employees, agents and others having business relationships with it in the Ordinary Course of Business,
(F) have Sellers’ Chief Executive Officer, Mr. Bob Dunn, confer with Buyer concerning operational matters of a material nature and report periodically to Buyer concerning the business, operations and finances of Sellers,
(G) maintain in the Ordinary Course of Business the furniture, furnishings and equipment identified on Schedule 2(a)(iv)(A) and Schedule 2(a)(iv)(B) in customary repair, order and condition, ordinary wear and tear excepted and
damage by fire or other unavoidable casualty excepted and (H) maintain its books and records concerning the Acquired Assets. Except as otherwise contemplated by this Agreement or consented to in writing by Buyer, prior to Closing, Sellers shall
not: (x) dispose of any furniture, furnishings and equipment identified on Schedule 2(a)(iv)(A) and Schedule 2(a)(iv)(B) other than in the Ordinary Course of Business; (y) increase, or agree to increase, the salary,
remuneration or compensation of, or benefits provided to, persons employed by any Seller other than in the Ordinary Course of Business or pay, or agree to pay, any uncommitted bonus to any such employees other than regular bonuses granted in the
Ordinary Course of Business or (z) enter into employment contracts with any officers or employees of Sellers. 
 (ii) Without limiting
the generality or effect of Section 8(c)(i), prior to the Closing, the Company, without the prior written consent of Buyer, will not and will not permit any of its Subsidiaries to: 
 (A) amend or modify their governing or organizational documents from their form on the date of this Agreement; 
 (B) adopt, amend or increase any benefits under any profit sharing, bonus, deferred compensation, savings, insurance, pension, retirement, or other
employee benefit plan or policy; 
 (C) amend or terminate any lease listed, or required to be listed, on Schedule 5(f)(i) or amend
or terminate any Material Contract listed, or required to be listed, on Schedule 5(n)(i), or enter into any lease or any other contract or commitment that would have been required to be listed on Schedule 5(f)(i) or Schedule
5(n)(i); 
 (D) incur, assume or guarantee any material Debt other than in the Ordinary Course of Business; 
 (E) other than in connection with Accounts in the Ordinary Course of Business, enter into any transaction or commitment relating to the assets or the
business of Sellers that, individually or in the aggregate, could be material to any Seller, or cancel or waive any claim or right of substantial value that, individually or in the aggregate, could be material to any Seller; 
 (F) make any change in financial or tax accounting methods or practices, except as required by an applicable Law or GAAP in which case notice of such
change will be promptly provided to Buyer; 
  

 31 

 (G) other than in connection with Accounts in the Ordinary Course of Business, sell, lease or otherwise
dispose of any material asset or property; provided, however, that for the avoidance of doubt, the disposal, sale or factoring of material amounts of Customer Contracts or Accounts is not part of the Ordinary Course of Business; 

(H) except as expressly permitted under this Agreement (i) write-off as uncollectible any notes or accounts receivable, except write-offs
in the Ordinary Course of Business, (ii) write-off, write-up or write-down any other material asset of any Seller or, (iii) alter the customary time periods for collection of accounts receivable or payments of accounts payable; 

(I) create or assume any Lien; 
 (J)
merge or consolidate with any Person; 
 (K) enter into any compromise or settlement of, or take any other action with respect to, any
litigation, action, suit, claim, proceeding or investigation other than the compromise or settlement of any litigation, action, suit, claim, proceeding or investigation in the Ordinary Course of Business; 
 (L) make any loan, advance or capital contributions to or investment in any Person other than making consumer loans pursuant to Customer Contracts in
the Ordinary Course of Business; 
 (M) terminate or close any material facility, business or operation of any Seller; 
 (N) cause any damage, destruction or other casualty loss (whether or not covered by insurance) affecting the business or assets of Sellers, that,
individually or in the aggregate, has had or could reasonably be expected to have, a Material Adverse Effect; 
 (O) grant or pay any
severance or termination pay to any current or former officer, director, manager or employee of any Seller; 
 (P) cause or take any other
action that could cause an event, occurrence, development or state of circumstances or facts that individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; 
 (Q) license outside of the normal course of business, assign or transfer any Intellectual Property Rights; or 
 (R) commit, agree to or contract to do any of the foregoing. 
 (d) Reasonable Access; Confidentiality. Prior to Closing, Sellers will permit Buyer and its representatives to have access, at all reasonable times and in a manner so as not to interfere with the normal
business operations of Sellers, to all premises, properties, personnel, books, records (including Tax records), contracts and documents of or pertaining to Sellers 
  

 32 

 related to the Business and the Acquired Assets. Notwithstanding anything to the contrary in this Agreement or the
Confidentiality Agreements, and without limitation of any kind, Sellers and Buyer and their respective agents and representatives may disclose to any and all Persons (i) the U.S. Tax treatment and U.S. Tax structure (as defined in Treasury
Regulations §§ 1.6011-4(c)(8) and (9)) of this Agreement and the transactions contemplated hereby and (ii) all materials of any kind (including opinions and Tax analyses) that are provided to any such party relating to such U.S.
Tax treatment and U.S. Tax structure. Further, nothing contained in this Section 8(d) shall be deemed to restrict the disclosure of information to the Official Committee of Unsecured Creditors appointed in the Bankruptcy Cases for its or
their confidential use. 
 (e) Notice of Developments. At any time prior to Closing, Sellers shall notify Buyer of any material
development relating to the Business that comes to Sellers’ Knowledge, including any development causing a breach of any of its representations and warranties hereunder. 
 (f) Post-Closing Access to Records. Following Closing, Buyer agree to permit representatives of Sellers to have access, at reasonable times and in
a manner so as not to interfere with the normal business operations of Buyer and its Affiliates, to the books and records of Buyer (including all books and records acquired from Sellers hereunder) relating to the Acquired Assets or the conduct of
the Business prior to the Closing Date so as to enable Sellers to prepare Tax, financial or court filings or reports, to respond to court orders, subpoenas or inquiries, investigations, audits or other proceedings of Governmental Authorities, and to
prosecute, defend legal actions or for other like purposes. Buyer agrees to preserve such records in its possession for a period of at least seven years from the Closing Date, provided that if Buyer desires to dispose of any such business records
prior the expiration of such seven-year period, it shall, prior to such disposition, give Sellers a reasonable opportunity, at Sellers’ expense, to remove such of the records to be disposed of as Sellers may select. 
 (g) Post-Closing Privacy Rights of Customers. Following Closing, Buyer agrees to maintain the privacy of Customer information in accordance with
the requirements of applicable Law and to provide Customers with any required notices concerning Buyer’s privacy policies, including notices required under the Gramm-Leach-Bliley Act and the regulations of the Federal Trade Commission adopted
thereunder, 16 C.F.R. §§ 3.13.1 et seq. 
 (h) Transfer Taxes. In the event any transfer taxes (including gains,
transfer, conveyance, sales, documentary stamp and similar taxes) are payable in connection with the transfer of the Acquired Assets as contemplated by this Agreement, Sellers and Buyer shall each pay one-half of any such applicable transfer Taxes.

 (i) Assumption and Assignment of Leases. In connection with Closing hereunder, Sellers will assign to Buyer, and Buyer will assume,
the Assumed Leases. Alternatively, Buyer, Sellers and applicable landlords may reach mutually agreeable terms prior to Closing for Sellers to be released from ongoing obligations as of the Effective Time and Buyer to enter into new leases for the
Corporate Office and applicable Acquired Branch Offices. Sellers agree to use their respective commercially reasonable efforts (a) to assist Buyer in reaching consensual arrangements with landlords under the Leased Real Property and
(b) otherwise to facilitate Buyer’s occupancy of the Corporate Office and the Acquired Branch Offices following Closing. At Closing, Buyer and Sellers shall prorate and settle all customarily proratable lease charges. 
  

 33 

 (j) Exclusive Dealing. During the period from the date of this Agreement until the earlier of the
Closing and the termination of this Agreement in accordance with its terms, no Seller, Thaxton Group, Thaxton Investment or any of their respective Affiliates, or other representative of any of the foregoing (including advisors, agents, attorneys,
employees or consultants) will take any action to, directly or indirectly, encourage, initiate, solicit or engage in discussions or negotiations with, or provide any information to any Person, other than Buyer and its respective Affiliates and
representatives, concerning any purchase of any capital stock, equity interest or other securities of Sellers or any merger, asset sale, contribution, recapitalization, investment or similar transaction involving Sellers. From the date of this
Agreement until the Closing, Sellers will promptly (and in any event within two days thereof) disclose to Buyer the existence or occurrence of any proposal or contact that either of them or any of their respective representatives described above may
receive or become aware of in respect of any such transaction, including (if Sellers are not contractually prevented from doing so) the identity of the Person from whom such a proposal or contact is received and the material terms of any such
proposal or contact. 
 (k) Further Assurances. From time to time, as and when requested by any Party to this Agreement, the other
Parties will execute and deliver, or cause to be executed and delivered, all such documents and instruments and will take, or cause to be taken, all such further or other actions, as the requesting party may reasonably deem necessary or desirable to
consummate the transactions contemplated by this Agreement. No Seller shall take, or knowingly permit to be taken, any action or do, or knowingly permit to be done, anything in the conduct of the business of Sellers that would be contrary to or in
breach of any of the terms or provisions of this Agreement or that would cause any of its representations contained herein to be or to become untrue. Buyer shall not take, or knowingly permit to be taken, any action or do, or knowingly permit to be
done, anything in the conduct of the business of Buyer that would be contrary to or in breach of any of the terms or provisions of this Agreement or that would cause any of its representations contained herein to be or to become untrue. 

(l) Reasonable Best Efforts. Each of Sellers and Buyer will cooperate and use their respective reasonable best efforts to take, or cause to be
taken, all appropriate actions (and to make, or cause to be made, all filings necessary, proper or advisable under all applicable Laws) to consummate and make effective the transactions contemplated by this Agreement, including their respective
reasonable best efforts to obtain, prior to the Closing, all licenses, permits, consents, approvals, authorizations, qualifications and orders of Governmental Authorities and parties to contracts with Sellers, as applicable, as are necessary for the
consummation of the transactions contemplated by this Agreement and to fulfill the conditions to the transactions contemplated by this Agreement. As promptly as practicable after the date of this Agreement, Buyer will, and will cause its Affiliates
to, make all filings required by Law to be made by them to consummate the transactions contemplated by this Agreement. Notwithstanding any other provision of this Agreement, in no event will Buyer or any of its Affiliates be required to
(i) enter into or offer to enter into any divestiture, hold-separate, business limitation or similar agreement or undertaking in connection with this Agreement or the transactions contemplated by this 
  

 34 

 Agreement or (ii) make any payment in connection with any consent or approval or condition to Closing set forth in
any section of Section 10 that is necessary or advisable for Sellers to obtain or satisfy in order to consummate the transactions contemplated by this Agreement. 
 (m) Non-Solicitation. From the date hereof until the second anniversary of the Closing Date, none of Sellers or their respective directors will
directly or indirectly solicit, or attempt to persuade, influence or induce, or assist any other Person in so persuading or inducing, any employee of the Company or its Subsidiaries to leave the employ of the Company or its Subsidiaries, or to
accept any other employment or position, in each case unless the employment of such employee is terminated by Buyer after Closing and prior to such hiring, solicitation, inducement or attempted inducement. Each Seller acknowledges that the purpose
of this covenant is to enable the Company and its Subsidiaries to maintain a stable workforce in order to remain in business, and that it would disrupt, damage, impair and interfere with the business of the Company and its Subsidiaries if any Seller
were to hire any such employee or to engage in such solicitation. 
 (n) Change of Corporate Names. Immediately following the
Closing Date, the Parties shall take all action necessary to change the names of the Company and each of its Subsidiaries to names that do not include “Southern,” “Covington Credit,” “Quick Credit” or any other name
similar to that of Southern Management and its Subsidiaries, including, without limitation, the filing of a certificate of name change in the appropriate Secretary of State offices where Sellers are incorporated. The costs and expenses of such name
changes shall be for the account of the party making such change. 
 (o) Proration/Credit for Prepaid Expenses. At Closing, in
addition to the Purchase Price, Sellers shall be paid for all prepaid expenses that have been made by Sellers in the Business that relate to matters after the Effective Time; provided, however, that Buyer shall be required to pay for prepaid
expenses only to the extent the benefit of such prepaid expenses has been transferred to Buyer. Sellers and Buyer and shall be paid for any cash matters that need to be prorated between pre-Effective Time and post-Effective Time matters, as
applicable, in accordance with the provisions of this Agreement. 
 (p) American National Insurance Products. With respect to the
insurance products sold utilizing American National, premiums charged to customers in the calendar month immediately preceding the Effective Time are reflected in the Accounts being sold hereunder. Accordingly, premiums that are due after the
Effective Time, but that relate to loans made in the calendar month immediately preceding the Effective Time, shall be paid by Buyer. 
 (q)
Continental Car Club. With respect to the Continental Car Club memberships, premiums charged to customers in the calendar month immediately preceding the Effective Time are reflected in the Accounts being sold hereunder. Accordingly, premiums
that are due after the Effective Time, but that relate to loans made in the calendar month immediately preceding the Effective Time, shall be paid by Buyer. 
 (r) Debit and Credit Cards. Sellers shall retain any and all debit and credit cards and any assets or liabilities relating to such debit and credit cards. 
  

 35 

 (s) Sellers Post-Closing Obligations. Sellers agree that immediately after Closing at least
$2,500,000 in cash shall be placed in the Company’s general operating account to be used to pay the Retained Liabilities under Section 2(d). Payments from this account shall be approved by Robert R. Dunn, the Company’s CEO, prior to
payment in a manner consistent with past practice. Mr. Dunn shall make a decision on any disbursement request within 3 business days. Sellers shall not distribute any remaining funds in this account to any Person, other than those contemplated
by Section 2(d), including to holders of claims in the Bankruptcy Cases, until after November 30, 2007. 
 (t) Insurance
Policies and Benefit Documents. Prior to Closing, subject to the provisions of this Agreement that address such matters, Sellers and Buyer shall discuss in good faith how best to handle various agreements, policies and related items previously
disclosed in writing to Buyer, in each case concerning employee benefits and other insurance policies other than those currently listed as Excluded Assets. If and to the extent that the Seller and Buyer reach agreement on such matters, the
applicable items shall be placed on the appropriate Schedule to this Agreement, and the parties shall work together in good faith to implement such decisions. 
 (u) Various Communication, Connectivity and Related Matters. Sellers have previously informed Buyer in writing that there are various communication, connectivity and related matters that are not material
individually but need to be addressed in connection with the transactions contemplated by this Agreement. Sellers will further investigate these matters between the execution of this Agreement and Closing and will address these matters as
appropriate in order to maximize the seamless transition of the Business from Sellers to Buyer in connection with the transactions contemplated by this Agreement. 
 (v) ABS Ownership. Currently, the limited liability ownership interest of Allied Business Systems, LLC, is owned by Thaxton Group. Sellers and Thaxton Group shall use their best efforts to cause this ownership
interest to be transferred to Buyer as of the Closing. For the avoidance of doubt, the transfer of this ownership interest to Buyer is a condition to Buyer’s obligations to consummate the transactions contemplated by this Agreement pursuant to
Sections 2(a)(ix) and 10(a)(v) hereof. 
 (w) Updating of Certain Schedules. At any time prior to Closing, Sellers may
notify Buyer of any factual disclosure relating to (i) the addition of Branch Offices required to be disclosed on Schedule 1(a), (ii) the disclosures required to be made on Schedule 2(a)(iv)(A) (Furniture, Furnishings and
Equipment), (iii) the disclosures required to be made on Schedule 2(a)(iv)(B) (Owned Automobiles), (iv) the disclosures required to be made on Schedule 5(c) (Litigation), (v) the disclosures required to be made on
Schedule 5(f)(i) (Leased Real Property), but only in connection with any disclosure described in clause (i) above, (vi) the disclosures required to be made on Schedule 5(m)(i) (Employees; Certain Senior Employees), but only
with respect to the termination or departure of any employees or the hiring of new employees, (vii) the disclosures required to be made on Schedule 5(w) (Employment Matters), but only with respect to the representations made in
Section 5(w)(vii), (viii) the disclosures required to be made on Schedule 5(x)(ii) (Workers’ Compensation Claims), (ix) disclosures required to be made on Schedule 7(e)(iv) (Vacation, Sick and Personal Time), and
the disclosures required to be made 
  

 36 

 on Schedule 7(e)(viii) (Employee Advances) (each, a “New Disclosure”), and the Schedules shall be deemed
to be amended to refer to the applicable New Disclosures; provided, however, that any New Disclosure relating to Schedule 5(c) shall be deemed to amend Schedule 5(c) solely for purposes of the indemnification provisions of
Section 11, and not for purposes of the closing condition set forth in Section 10(a)(i). Notwithstanding the foregoing, any New Disclosure (x) must relate solely to an event or development occurring after execution of
this Agreement, (y) consist solely of a specific fact or set of facts and (z) may not relate to the disclosure of events, actions or omissions that constitute a breach of any covenants or agreements of any Seller set forth in this
Agreement. 
 9. TAX MATTERS. 
 (a) Tax Returns. Each Seller will cause to be prepared and timely filed all Tax Returns of Sellers that are due with respect to any Pre-Closing Tax Period or Straddle Period, provided that such Tax Returns will be prepared by
treating items on such Tax Returns in a manner consistent with the past practice with respect to such items, unless otherwise required by Law. 
 (b) Apportionment of Taxes. All Taxes and Tax liabilities with respect to the conduct of the Business and the property (real or personal) of each Seller, including the Acquired Assets, that relate to a taxable year or other taxable
period beginning before and ending after the Closing Date will be apportioned, if and as necessary, between the Pre-Closing Tax Period and the Post-Closing Tax Period, on a per diem basis between Pre-Closing and Post-Closing Tax Periods as though
the taxable year of the Company terminated at the close of business on the Closing Date. Each Seller will be liable for the payment of all Taxes of each such Company, including those pertaining to the Acquired Assets, that are attributable to any
Pre-Closing Tax Period, whether shown on any original return or amended return for the period referred to therein. Buyer will be liable for the payment of all Taxes that are attributable to any Post-Closing Tax Period with respect to the conduct of
the Business and the Acquired Assets only. 
 (c) Cooperation; Audits. In connection with the preparation of Tax Returns, audit
examinations and any administrative or judicial proceedings relating to the Tax liabilities imposed on Sellers for all Pre-Closing Tax Periods, Buyer, on the one hand, and Sellers, on the other hand, will cooperate fully with each other, including
the furnishing or making available during normal business hours of records, personnel (as reasonably required), books of account, powers of attorney or other materials necessary or helpful for the preparation of such Tax Returns, the conduct of
audit examinations or the defense of claims by Tax authorities as to the imposition of Taxes. 
 (d) Controversies. Buyer will
promptly notify the appropriate Seller in writing upon receipt by Buyer or any of its Affiliates of written notice of any inquiries, claims, assessments, audits or similar events with respect to Taxes relating to a Pre-Closing Tax Period for which
such Seller may be liable under this Agreement (any such inquiry, claim, assessment, audit or similar event, a “Tax Matter”). The Company, at its sole expense, will have the exclusive authority to represent the interests of Sellers
and their Affiliates with respect to any Tax Matter before the Internal Revenue Service, any other taxing authority, any other Governmental Authority or any 
  

 37 

 court and will have the sole right to extend or waive the statute of limitations, with respect to a Tax Matter and to
control the defense, compromise or other resolution of any Tax Matter, including responding to inquiries, filing Returns and settling audits; provided, however, that the Company will not enter into any settlement of or otherwise compromise
any Tax Matter that materially affects the Tax liability of Buyer or any of its Affiliates, including after the Closing, without the prior written consent of Buyer, which consent will not be unreasonably withheld. The Company will keep Buyer fully
and timely informed with respect to the commencement, status and nature of any Tax Matter to the extent that such Tax Matter may materially affect the Tax liability of Buyer or any of its Affiliates, including after the Closing. 
 (e) Allocation of Purchase Price. The Purchase Price, plus the amount of the Assumed Liabilities included in the amount realized on the sale of
the Acquired Assets for income Tax purposes, shall be allocated in accordance with Section 1060 of the Code among the assets and any other rights acquired by Buyer hereunder as set forth on Schedule 9(e), which Schedule will be agreed
upon in good faith between Buyer and Sellers prior to Closing. The Allocation Schedule shall be adjusted by Buyer for any adjustment to the amount of the Assumed Liabilities included in the amount realized for income Tax purposes. Buyer and Sellers
shall report the purchase and sale of the Acquired Assets in accordance with the Allocation Schedule on all relevant income Tax returns, including IRS Form 8594 and any required amendments thereto, and shall not take any position inconsistent with
such allocations unless otherwise required by law; provided, however, that Buyer’s Tax basis in the Acquired Assets may exceed the total amount allocated to the Acquired Assets pursuant to the Allocation Schedule to reflect Buyer’s
capitalized transaction costs not included in the Purchase Price or the Assumed Liabilities included in the amount realized for Tax purposes, and Sellers’ amount realized may be less than the total amount allocated to the Acquired Assets
pursuant to the Allocation Schedule in order to reflect Sellers’ transaction costs. 
 10. CONDITIONS TO CLOSING. 
 (a) Conditions to Obligation of Buyer. The obligation of Buyer to consummate the transactions to be performed by it in connection with Closing is
subject to satisfaction of the following conditions. Any condition specified in this Section 10(a) may be waived if consented to by Buyer, provided that no such waiver will be effective against Buyer unless it is set forth in writing
signed by Buyer. 
 (i) Representations, Warranties and Covenants of Sellers. (A) Each of the representations and warranties of
Sellers made in this Agreement will be true and correct in all material respects (or, if any specific representation or warranty of Sellers is expressly qualified by concepts of “materiality” or “Material Adverse
Effect,” then such representations and warranties will be true and correct as written in all respects) as of the date of this Agreement and as of the Closing (as if made anew at and as of the Closing, subject to the applicable provisions of
Section 8(w)); (B) Sellers will have performed and complied in all material respects with all terms, agreements and covenants contained in this Agreement required to be performed or complied with by Sellers on or before the Closing
Date; and (c) Sellers will have delivered to Buyer a certificate of Sellers, dated the Closing Date, confirming the foregoing and the satisfaction of the other conditions contained in Sections 10(a)(ii) (No Injunction), 10(a)(iii)
(No Proceedings), 10(a)(iv) (Required Filings), 10(a)(v) (Material Adverse Change), and such other evidence of compliance with its obligations as Buyer may reasonably request. 
  

 38 

 (ii) No Injunction. There shall not be any injunction, judgment, order, decree, ruling, or charge
in effect preventing consummation of any of the transactions contemplated by this Agreement. 
 (iii) No Proceedings. No proceeding
challenging this Agreement or the transactions contemplated by this Agreement or seeking to prohibit, alter, prevent, or materially delay the Closing or seeking Damages incident to this Agreement or the transactions contemplated by this Agreement
will have been instituted by any Person before any Governmental Authority and be pending. 
 (iv) Required Filings. All actions by or
in respect of, or filings by, Sellers with any Person required to permit the consummation of the Closing will have been taken or made. 
 (v)
Material Adverse Change. No event, occurrence or circumstance shall have occurred or arisen that, individually or when considered together with all other matters, has had or could reasonably be expected to have a Material Adverse Effect.

 (vi) Third Party Consents. All material actions, consents or approvals disclosed on any Schedule attached to this Agreement or
otherwise required to be obtained in connection with the consummation of the transactions contemplated by this Agreement or by the Transaction Documents shall have been obtained and be in full force and effect, including the entry of the Bankruptcy
Order (if such an order is sought by the parties). 
 (vii) Acquisition Senior Debt Financing. On terms that are acceptable to Buyer
in its sole discretion, Buyer will have obtained third party senior debt financing in an amount of not less than $45,000,000 in order to provide sufficient funds to consummate the transactions contemplated by this Agreement (including the payment of
any expenses required to be paid by Buyer in connection therewith). Buyer’s raising subordinated debt is not, and cannot be used by Buyer, as a condition to Closing. 
 (viii) Closing Documents. Sellers shall have delivered to Buyer all of Sellers’ Closing Documents, duly executed by Sellers (as applicable). 
 (ix) Form 5500s and Related Audit Reports. Sellers shall have provided evidence satisfactory to Buyer that Form 5500s and the related audit
reports have been filed, in accordance with applicable law for each of the calendar years from 2002 to 2006, inclusive, with respect to the Company’s 401(k) plan. 
 (x) Insurance Policy. The Insurance Policy shall have been issued in form and substance satisfactory to Buyer in its sole discretion. 
 (b) Conditions to Obligation of Sellers. The obligation of Sellers to consummate the transactions to be performed by them in connection with
Closing is subject to satisfaction of the 
  

 39 

 following conditions. Any condition specified in this Section 10(b) may be waived if consented to by Sellers,
provided that no such waiver will be effective against Sellers unless such waiver is set forth in writing signed by Sellers: 
 (i)
Representations, Warranties and Covenants of Buyer. (A) Each of the representations and warranties of Buyer made in this Agreement will be true and correct in all material respects (or, if any specific representation or warranty of Buyer
is expressly qualified by concepts of “materiality” or “Material Adverse Effect” then each of such representations and warranties will be true and correct as written in all respects) as of the date of this Agreement
and as of the Closing (as if made anew at and as of the Closing); (B) Buyer will have performed and complied with all terms, agreements and covenants contained in this Agreement required to be performed or complied with by Buyer on or before
the Closing Date; and (C) Buyer will have delivered to Sellers a certificate, dated the Closing Date, confirming the foregoing and the satisfaction of the other conditions contained in Sections 10(b)(ii) (No Injunction),
10(b)(iii) (No Proceedings), and 10(b)(iv) (Required Filings) and such other evidence of compliance with its obligations as Sellers may reasonably request. 
 (ii) No Injunction. There shall not be any injunction, judgment, order, decree, ruling, or charge in effect preventing consummation of any of the transactions contemplated by this Agreement. 
 (iii) No Proceedings. No proceeding challenging this Agreement or the transactions contemplated by this Agreement or seeking to prohibit, alter,
prevent, or materially delay the Closing or seeking Damages incident to this Agreement or the transactions contemplated by this Agreement will have been instituted by any Person before any Governmental Authority and be pending. 
 (iv) Required Filings. All actions by or in respect of, or filings by, Buyer with any Person required to permit the consummation of the Closing
will have been taken or made. 
 (v) Third Party Consents. All material actions, consents or approvals disclosed on any Schedule
attached to this Agreement or otherwise required to be obtained in connection with the consummation of the transactions contemplated by this Agreement or by the Transaction Documents shall have been obtained and be in full force and effect,
including the entry of the Bankruptcy Order (if such an order is sought by the parties). 
 (vi) Closing Documents. Buyer shall have
delivered to Sellers the Purchase Price and all of Buyer’s Closing Documents, duly executed by Buyer (as applicable). 
 (vii)
Insurance Policy. The Insurance Policy shall have been issued in form and substance reasonably satisfactory to Sellers. 
 11.
INDEMNIFICATION. 
 (a) Buyer’s Indemnification Rights. 
  

 40 

 (i) Survival. All representations, warranties, covenants and agreements of Sellers contained in
this Agreement or in any certificates or other writing delivered pursuant to this Agreement or in connection herewith, including the certificates delivered pursuant to Section 10(a), will survive the Closing for a period of two
(2) years; provided, however, that the only, sole and exclusive recourse Buyers may have for any breach of any such representations, warranties, covenants and agreements shall be the Insurance Policy. Notwithstanding the preceding
sentence, any representation or warranty in respect of which a claim is asserted will survive the time at which it would otherwise terminate pursuant to the preceding sentence if written notice of, and a specific description of the reasonable basis
for, the inaccuracy or breach thereof giving rise to such right of claim has been given to the Insurance Policy Issuer in accordance with the Insurance Policy prior to such time. 
 (ii) Buyer’s Right to Indemnification. Subject to the terms of the Insurance Policy, including, without limitation, the limitations,
exclusions and deductible set forth in the Insurance Policy, Buyers will have the right to receive pursuant to coverage provided by the Insurance Policy any and all Damages arising, directly or indirectly, from or in connection with: 
 (A) any failure of any representation or warranty made by Sellers in this Agreement or any of the closing certificates delivered pursuant to
Section 10(a) of this Agreement to be true and correct as of the Closing (as if made anew at the Closing); and 
 (B) any breach
of any covenant or agreement of Sellers in this Agreement. 
 The amount of Damages shall be offset by the net amount of (i) any net
insurance proceeds (other than from the Insurance Policy) actually received by Buyer from any insurer (as reduced by any related retrospective or prospective increase in premiums and taking into account all costs and expenses reasonably incurred in
procuring such proceeds and any Taxes paid or payable as a result of the receipt of such proceeds), and (ii) any net Tax benefit recognized by Buyer arising from the recognition of the Damages (net of all costs and expenses incurred in
procuring such Tax benefit). 
 (iii) Limitations on Buyer’s Right to Indemnity. The Insurance Policy shall be Buyer’s sole
and exclusive source of funding for the payment of any indemnification obligations under this Agreement and Buyer shall under no circumstances have any recourse against Sellers or their Affiliates. 
 (iv) Procedures. The procedures for Buyer seeking indemnification shall be as set forth in the Insurance Policy. 
 (v) Effect of Investigation. The right to indemnification and all other remedies based on any representation, warranty, covenant or obligation of
Sellers contained in or made pursuant to this Agreement shall not be affected by any investigation conducted with respect to, or any Knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of
this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant or 
  

 41 

 obligation. The waiver of any condition to the obligation of Buyer or any Seller to consummate the transactions
contemplated hereby, where such condition is based on the accuracy of any representation or warranty, or on the performance of or compliance with any covenant or obligation, shall not affect the right to indemnification or other remedy based on such
representation, warranty, covenant or obligation 
 (b) Sellers’ Indemnification Rights. 
 (i) Survival. All representations, warranties, covenants and agreements of Buyer contained in this Agreement or in any certificates or other
writing delivered pursuant to this Agreement or in connection herewith, including the certificates delivered pursuant to Section 10(b), will survive the Closing for a period of two (2) years. Notwithstanding the preceding sentence,
any representation or warranty in respect of which a claim is asserted will survive the time at which it would otherwise terminate pursuant to the preceding sentence if written notice of, and a specific description of the reasonable basis for, the
inaccuracy or breach thereof giving rise to such right of claim has been given to Buyers prior to such time. 
 (ii) Right to
Indemnification. Sellers will have the right to receive from Buyers any and all Damage arising, directly or indirectly, from or in connection with: 
 (A) any failure of any representation or warranty made by Buyers in this Agreement or any of the closing certificates delivered pursuant to Section 10(b) of this Agreement to be true and correct as of the
Closing (as if made anew at the Closing); 
 (B) any breach of any covenant or agreement of Buyers in this Agreement; 
 (C) any failure by Buyers to pay, perform or otherwise discharge any of the Assumed Liabilities; or 
 (D) the ownership of the Acquired Assets or the operation of the Business after the Effective Time. 
 (iii) Procedures for Sellers Indemnification Claims. 
 (A) If any Seller who or which is entitled to seek indemnification under Section 11(b) (an “Indemnified Party”) receives notice of the assertion or commencement of any Third Party Claim
against such Indemnified Party with respect to which the Person against whom or which such indemnification is being sought (an “Indemnifying Party”) is or may be obligated to provide indemnification under this
Agreement, the Indemnified Party will give such Indemnifying Party prompt written notice thereof, but in any event not later than 15 days after receipt of such written notice of such Third Party Claim (the “Third Party Claim
Notice”). Such notice by the Indemnified Party will describe the Third Party Claim in reasonable detail, will include copies of all available material written evidence thereof, and will indicate the estimated amount, if reasonably
practicable, of the Damages that have been or may be sustained by the Indemnified Party. Within 15 days after receipt of the Third Party Claim Notice, the Indemnifying Party shall notify the Indemnified Party in writing that the Indemnifying Party

  

 42 

 either (A) disputes the right of the Indemnified Party to indemnification under this Section 11(b) with respect
to the Third Party Claim or (B) admits the right of the Indemnified Party to indemnification under this Section 11(b) with respect to Damages arising in connection with the Third Party Claim. The failure of the Indemnifying Party to
respond to the Indemnified Party within such 15-day period after receipt of a Third Party Claim Notice shall be deemed to constitute a response by the Indemnifying Party that it disputes the right of such Indemnified Party to indemnification under
this Section 11(b) with respect to that Third Party Claim. 
 (B) If the Indemnifying Party admits in writing that the
Indemnified Party is entitled to indemnification under this Section 11(b) with respect to a Third Party Claim, then in such event (A) the Indemnifying Party shall diligently defend the Third Party Claim with counsel approved by the
Indemnified Party (which approval shall not be unreasonably withheld or delayed) and (B) the Indemnifying Party shall not enter into any settlement of the Third Party Claim unless either (x) such settlement is approved in writing by the
Indemnified Party (which approval shall not be unreasonably withheld or delayed) or (y) the settlement involves no admission of fault or liability by the Indemnified Party and involves only the remedy of money damages that are paid in full by
the Indemnifying Party. The costs and expenses of such defense shall be payable by the Indemnifying Party. If, however, (A) the Indemnifying Party at any time fails to so conduct the defense of the Third Party Claim or (B) the Indemnified
Party, (x) determines in good faith that there is a reasonable probability that a proceeding may adversely affect it other than as a result of monetary damages for which it would be entitled to full indemnification under this Agreement or
(y) upon consultation with counsel has reasonably determined in its good faith judgment that joint representation by counsel for the Indemnified Party and the Indemnifying Party violates or would violate applicable ethical and professional
rules, then the Indemnified Party (upon notice to the Indemnifying Party) may participate, together with counsel for the Indemnifying Party, in the defense, compromise or settlement of such Third Party Claims, and the reasonable costs and expenses
of such participation shall be payable by the Indemnifying Party. Without the prior written consent of the Indemnifying Party (which shall not be unreasonably withheld or delayed), the Indemnified Party shall not enter into any settlement of, or
make any admission of liability with respect to, any Third Party Claim for which the Indemnifying Party might be required to provide indemnification. 
 (C) If the Indemnifying Party disputes the right of the Indemnified Party to indemnification under this Section 11(b) with respect to the Third Party Claim described in a Third Party Claim Notice, then in
such event (A) the Indemnified Party may defend the Third Party Claim with counsel of its choice, provided, however, that the Indemnified Party (x) shall diligently defend such Third Party Claim and (y) may not enter into a
settlement thereof without obtaining approval of the Indemnifying Party (which approval shall not be unreasonably withheld), unless the Indemnified Party will not be seeking indemnification for any amounts paid pursuant to such settlement thereof or
for any other consequences and the settlement involves no admission of fault or liability on the part of the Indemnifying Party or imposes any injunctive or other relief other than damages on the Indemnifying Party and (B) the amount of Damages
incurred by the Indemnified Party in connection with such Third Party Claim shall be paid by (x) the Indemnified Party if the Indemnified Party succeeds in defending against such Third Party Claim or (y) the Indemnifying Party if the
Indemnified Party does not succeed in defending against such Third Party Claim, but only to the extent that such Damages are indemnifiable in accordance with the provisions of this Section 11(b). 
  

 43 

 (D) Any claim by an Indemnified Party on account of Damages that does not result from a Third Party
Claim (a “Direct Claim”) will be asserted by giving the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 days after the Indemnified Party becomes aware of such Direct Claim. Such notice
by the Indemnified Party will describe the Direct Claim in reasonable detail, will include copies of all available material written evidence thereof and will indicate the estimated amount, if reasonably practicable, of Damages that has been or may
be sustained by the Indemnified Party. The Indemnifying Party will have a period of 20 Business Days within which to respond in writing to such Direct Claim. If the Indemnifying Party does not so respond within such 20 Business Day period, the
Indemnifying Party will be deemed to have rejected such claim, in which event the Indemnified Party will be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

 (E) A failure to give timely notice or to include any specified information in any notice as provided herein will not affect the rights
or obligations of any Party hereunder, except and only to the extent that, as a result of such failure, any Party that was entitled to receive such notice was deprived of its right to recover any payment under its applicable insurance coverage or
was otherwise prejudiced 
 12. TERMINATION. 
 (a) The parties may terminate this Agreement at any time prior to the Closing Date as provided below: 
 (i)
by the mutual written consent of Buyer and Sellers; 
 (ii) by Sellers or Buyer if the Closing has not taken place on or prior to
August 1, 2007; provided, however, that if Buyer and Sellers have not received final approval from the Governmental Authorities (including the Consumer Credit Commissioner of the State of Texas, the South Carolina Board of Financial
Institutions, the Georgia Industrial Loan Commissioner, the Tennessee Commissioner of Financial Institutions, the Oklahoma Administrator of Credit and the Alabama Department of Banking) whose approval is required to enable Buyer to consummate the
transactions contemplated by this Agreement, then such date may be extended by either Buyer or Sellers to October 1, 2007. Notwithstanding the foregoing, (A) Buyer will be not be entitled to terminate this Agreement pursuant to this
Section 12(a)(ii) if Buyer’s breach of this Agreement has prevented the consummation of the transactions contemplated by this Agreement and (B) Sellers will not be entitled to terminate this Agreement pursuant to this
Section 12(a)(ii) if Sellers’ breach of this Agreement has prevented the consummation of the transactions contemplated by this Agreement; 
 (iii) by Sellers, upon written notice to Buyer, if Buyer is in material breach of any representation, warranty, covenant or agreement under this Agreement which is not curable or, if curable, is not cured within 15
days of such notice (and Sellers are not in material breach of any representation, warranty, covenant or agreement under this Agreement); 
  

 44 

 (iv) by Buyer, upon written notice to Sellers, if Sellers are in material breach of any representation,
warranty, covenant or agreement under this Agreement which is not curable or, if curable, is not cured within 30 days of such notice (and Buyer are not in material breach of any representation, warranty, covenant or agreement under this Agreement);
or 
 (v) by either Sellers or Buyer if the Closing has not taken place on or prior to October 1, 2007. 
 (b) Upon any termination of this Agreement pursuant to this Section 12, this Agreement shall become void and shall have no further effect,
and there will be no Liability on the part of any Party except the provisions in Section 13(a), Section 13(c), Section 13(d), Section 13(h) and Section 13(i) will continue to apply
following any such termination, provided that no Party will be released from liability hereunder if this Agreement is terminated and the transactions abandoned by reason of (i) failure of such Party to have performed its material obligations
under this Agreement or (ii) any material misrepresentation made by such Party of any matter set forth in this Agreement. Nothing in this Section 12 will relieve any Party to this Agreement of liability for breach of this Agreement
occurring prior to any termination, or for breach of any provision of this Agreement which specifically survives termination hereunder. 
 (c) Notwithstanding anything herein to the contrary, within three Business Days following the termination of this Agreement for any reason other than Buyer’s material breach of its obligations in this Agreement, Sellers will refund to
Buyer the Deposit in cash by wire transfer of immediately available funds to an account or accounts designated by Buyer. 
 13. MISCELLANEOUS.

 (a) Expenses and Fees. Except as otherwise herein provided, each party shall pay its own costs and expenses incident to the
preparation and negotiation of this Agreement and the Transaction Documents, the consummation of the transactions contemplated hereby and thereby and its compliance with all its agreements and conditions contained herein or therein, including all
legal and accounting fees and disbursements and all costs of obtaining necessary consents. Buyer shall be responsible for paying the filing fee relating to any filing that may be required under the HSR Act. Notwithstanding the foregoing, Sellers
will pay Buyer at Closing (i) $535,000 to reimburse Buyer in connection with premiums, underwriting fees and other expenses related to the Insurance Policy and (ii) $215,000 to reimburse Buyer for a part of the annual bonus obligations
assumed by Buyer pursuant to Section 7(e)(iii). If the aggregate amount of such annual bonuses are less than $322,500, then immediately following the payment of such annual bonuses, Buyer will pay Sellers an amount equal to
(x) two-thirds of (y) (1) the excess of $322,500 over (2) the aggregate amount of such annual bonuses. 
 (b)
Waiver. No terms or provisions hereof, including the terms and provisions contained in this sentence, shall be waived, modified or altered so as to impose any additional obligations or liability or grant any additional right or remedy, and no
custom, payment, act, 
  

 45 

 knowledge, extension of time, favor or indulgence, gratuitous or otherwise, or words or silence at any time, shall impose
any additional obligation or liability or grant any additional right or remedy or be deemed a waiver or release of any obligation, liability, right or remedy except as set forth in a written instrument properly executed and delivered by the party
sought to be charged, expressly stating that it is, and the extent to which it is, intended to be so effective. No assent, express or implied, by either party, or waiver by either party, to or of any breach of any term or provision of this Agreement
(including the Schedules) shall be deemed to be an assent or waiver to or of such or any succeeding breach of the same or any other such term or provision. 
 (c) No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the parties and their respective successors and permitted assigns. 
 (d) Entire Agreement; Amendment. This Agreement, the Transaction Documents and the Exhibits and Schedules referred to herein contain the entire
understanding of the parties with respect to the subject matter contained herein or therein and supersede in their entirety all prior or concurrent oral or written agreements, offers, proposals and understandings between the parties with respect to
such subject matter, except for the Confidentiality Agreement dated January 17, 2007, by and between the Company and Palladium Capital Management III, the Confidentiality Agreement dated January 17, 2007, by and between the Company and
Parallel Investment Partners, LP and the Confidentiality Agreement, dated January 30, 2007, by and between the Company and Regional Management Corp. (collectively, the “Confidentiality Agreements”), which shall continue to
remain in full force and effect. This Agreement may not be amended in any respect whatsoever except by a further agreement, in writing, fully executed by each of the parties. 
 (e) Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the parties named herein and their respective
successors and permitted assigns. No party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other party; provided, however, that Buyer may (i) assign any
or all of its rights and interests hereunder to one or more of its Affiliates without such approval and (ii) designate one or more of its Affiliates to perform its obligations hereunder, in any or all of which cases Buyer nonetheless shall
remain responsible for the performance of all of its obligations hereunder. Sellers hereby consent to the pledge and assignment by Buyer of all of its rights under this Agreement to one or more lenders (and their permitted assigns) in connection
with any financing or refinancing related to the transactions contemplated by this Agreement. 
 (f) Counterparts; Facsimile. This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. This Agreement may be executed and delivered by facsimile or other electronic
transmission. 
 (g) Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect
in any way the meaning or interpretation of this Agreement. 
  

 46 

 (h) Notices. All notices, requests, demands or other communications required or permitted by this
Agreement: (i) shall be in writing; (ii) shall be deemed to have been given, forwarded, made or delivered: (A) if delivered in person or by overnight courier service, when so delivered, (B) if sent by facsimile transmission, when
received, or (C) if sent by registered, certified or express mail, return receipt requested and postage prepaid, on the date of receipt (or on the date of attempted delivery if delivery is refused); and (iii) shall be addressed as follows:

 If to Buyer or Guarantor: 
 c/o Palladium Equity Partners III, L.P. 
 1270 Avenue of the Americas, 22nd Floor 
 New York, New York 10020 
 Fax:
(212) 218-5155 
 Attention: David Perez and Erik A. Scott 
 And: 
 c/o Parallel Investment Partners, LP 
 2100 McKinney St., Suite 1200 
 Dallas, Texas
75201 
 Fax: (214) 740-3630 
 Attention: F. Barron Fletcher, III and 
 Ellery W. Roberts 
 With a copy to: 
 Jones Day 
 717 Texas Avenue, Suite 3300 
 Houston, Texas
77002 
 Fax: (832) 239-3600 
 Attention: J. Mark Metts 
 If to Sellers: 
 c/o The Finley Group 
 6100 Fairview Road 
 Suite 1220 
 Charlotte, North Carolina 28210

 Attn: Robert Dunn 
 Tel.: (704)
375-7542 
 Fax: (704) 342-0879 
 With a Copy to: 
 Nelson Mullins Riley & Scarborough, LLP 
 Meridian, Suite 1700 
 1320 Main Street

 Columbia, South Carolina 29201 
 Attn: Gus M. Dixon 
 Tel: (803) 255-9491 
 Fax: (803) 255-5160 
  

 47 

 Each party may designate by notice in writing a new or additional address to which any notice, request, demand or
communication may thereafter be so given, served or sent. Notices, requests, demands and other communications hereunder may be given by the attorney of any party. 
 (i) Governing Law; Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES. Except as otherwise
expressly provided in this Agreement, any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby may be brought in any court
of competent jurisdiction in Charlotte, North Carolina, and each of the Parties hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to
the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court
has been brought in an inconvenient form. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each Party
agrees that service of process on such Party as provided in Section 13(h) will be deemed effective service of process on such Party. 
 (j) Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. 
 (k) Incorporation of
Schedules. The Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. The headings in the Schedules are for reference only and shall not affect the interpretation of this Agreement or the Schedules.
The Schedules are to be read in their entirety. Nothing in the Schedules is intended to broaden the scope of any representation or warranty contained in this Agreement. The disclosure of any item in the Schedules is disclosure of that item for all
purposes for which disclosure is required under this Agreement and is disclosure in all appropriate Schedules, provided that the description of an item in a particular Schedule on its face contains information adequate to inform a reader of the
applicability of such item to other. Inclusion of any item in the Schedules (i) does not represent a determination by Sellers that such item is material and shall not be deemed to establish a standard of materiality, and (ii) does not
represent a determination by Sellers that such item did not arise in the Ordinary Course of Business or is required to be disclosed in response to such item. 
  

 48 

 (l) Power of Attorney. Sellers appoint Buyer and Buyer’s designee as attorney-in-fact with
the power to perform the following: 
 (i) To endorse Sellers’ name on checks, notes, acceptances, money orders or other forms of
payment or security that are payments on the Accounts or constitute a part of the Acquired Assets and that come into Buyer’s possession following Closing; 
 (ii) To sign Sellers’ name on any document of title relating to the Acquired Assets; and 
 (iii) To
sign Sellers’ name on notices of assignment, assignments, mortgages, financing statements (or releases or satisfactions of the foregoing) relating to the Acquired Assets. 
 This power, being coupled with an interest, is irrevocable. 
 (m) Guaranty by Guarantor. Guarantor
hereby unconditionally guarantees, as a primary obligor, the obligations of Buyer under this Agreement. 
 [SIGNATURE PAGES TO FOLLOW]

  

 49 

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

			
	SELLERS:
	
	 SOUTHERN MANAGEMENT CORPORATION,
 a
South Carolina corporation

		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer
	
	 THAXTON INVESTMENT CORPORATION,
 a
South Carolina corporation

		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer
	
	 SOUTHERN FINANCE OF TENNESSEE, INC.,
 a Tennessee corporation

		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer
	
	 COVINGTON CREDIT OF TEXAS, INC.,
 a
Texas corporation

		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer

 [Signature Page to Asset Purchase Agreement] 
  

			
	COVINGTON CREDIT, INC.,
	an Oklahoma corporation
		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer
	
	 COVINGTON CREDIT OF ALABAMA, INC.,
 an
Alabama corporation

		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer
	
	 COVINGTON CREDIT OF GEORGIA, INC.,
 a
Georgia corporation

		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer
	
	 SOUTHERN FINANCE OF SOUTH CAROLINA, INC.,
 a South Carolina corporation

		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer
	
	 QUICK CREDIT CORPORATION,
 a South
Carolina corporation

		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer

 [Signature Page to Asset Purchase Agreement] 

			
	THAXTON GROUP, INC., a South Carolina corporation
		
	By:	 	 /s/ Robert R. Dunn

		 	Robert R. Dunn
		 	Chief Executive Officer

 [Signature Page to Asset Purchase Agreement] 

			
	BUYER:
	
	 SOUTHERN MANAGEMENT ACQUISITION CORP.,
 a Delaware corporation

		
	By:	 	 /s/ Ellery W. Roberts

	Name:	 	Ellery W. Roberts
	Title:	 	Co-President
	
	GUARANTOR:
	
	 REGIONAL HOLDINGS I CORP.,
 a
Delaware corporation

		
	By:	 	  
 /s/ Ellery W.
Roberts

	Name:	 	Ellery W. Roberts
	Title:	 	Co-President

 [Signature Page to Asset Purchase Agreement]LookSmart, Ltd.'s 2007 Equity Incentive Plan

 Exhibit 10.1 
 LOOKSMART, LTD. 
 2007 EQUITY INCENTIVE PLAN 
 1. Purposes of the Plan.
 The purpose of this Plan is to encourage ownership in LookSmart, Ltd., a Delaware corporation (the “Company”), by key personnel whose long-term employment or other service relationship with the Company is considered
essential to the Company’s continued progress and, thereby, encourage recipients to act in the stockholders’ interest and share in the Company’s success. 
 2. Definitions.
 As used herein, the following definitions shall apply: 

(a) “Administrator” means the Board, any Committees or such delegates as shall be administering the
Plan in accordance with Section 4 of the Plan. 
 (b) “Affiliate” means any entity that
is directly or indirectly controlled by the Company or any entity in which the Company has a significant ownership interest as determined by the Administrator. 
 (c) “Applicable Laws” means the requirements relating to the administration of stock option and stock
award plans under U.S. federal and state laws, the Code, any stock exchange or quotation system on which the Company has listed or submitted for quotation the Common Stock to the extent provided under the terms of the Company’s agreement with
such exchange or quotation system and, with respect to Awards subject to the laws of any foreign jurisdiction where Awards are, or will be, granted under the Plan, the laws of such jurisdiction. 
 (d) “Award” means a Cash Award, Stock Award or Option granted in accordance with the terms of the Plan.

 (e) “Awardee” means an Employee, Consultant or Director of the Company or any Affiliate
who has been granted an Award under the Plan. 
 (f) “Award Agreement” means a Cash Award
Agreement, Stock Award Agreement and/or Option Agreement, which may be in written or electronic format, in such form and with such terms and conditions as may be specified by the Administrator, evidencing the terms and conditions of an individual
Award. Each Award Agreement is subject to the terms and conditions of the Plan. 
 (g) “Board” means the Board of Directors of the Company. 

 (h) “Cash Award” means a bonus opportunity awarded under Section 12
pursuant to which an Awardee may become entitled to receive an amount based on the satisfaction of such performance criteria as are specified in the agreement or other documents evidencing the Award (the “Cash Award Agreement”).

 (i) “Code” means the United States Internal Revenue Code of 1986, as amended. 

(j) “Committee” means the compensation committee of the Board or a committee of Directors appointed
by the Board in accordance with Section 4 of the Plan. 
 (k) “Common Stock” means the
common stock of the Company. 
 (l) “Company” means LookSmart, Ltd., a Delaware corporation,
or its successor. 
 (m) “Consultant” means any person engaged by the Company or any Affiliate to render
services to such entity as an advisor or consultant.
 (n) “Conversion Award” has the meaning set forth
in Section 4(b)(xii) of the Plan. 
 (o) “Director” means a member of the Board.

 (p) “Employee” means a regular, active employee of the Company or any Affiliate, including an
Officer and/or Inside Director. Within the limitations of Applicable Law, the Administrator shall have the discretion to determine the effect upon an Award and upon an individual’s status as an Employee in the case of (i) any individual
who is classified by the Company or its Affiliate as leased from or otherwise employed by a third party or as intermittent or temporary, even if any such classification is changed retroactively as a result of an audit, litigation or otherwise,
(ii) any leave of absence approved by the Company or an Affiliate, (iii) any transfer between locations of employment with the Company or an Affiliate or between the Company and any Affiliate or between any Affiliates, (iv) any change
in the Awardee’s status from an Employee to a Consultant or Director, and (v) at the request of the Company or an Affiliate an Employee becomes employed by any partnership, joint venture or corporation not meeting the requirements of an
Affiliate in which the Company or an Affiliate is a party. For purposes of Incentive Stock Options, no leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon
expiration of a leave of absence approved by the Company is not so guaranteed, on the 181st day of such leave any Incentive Stock Option held by the Awardee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes
as a Nonstatutory Stock Option. 
 (q) “Exchange Act” means the Securities Exchange Act of
1934, as amended. 
 (r) “Fair Market Value” of a Share on any given date means 
  

 2 

 i. If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq Global Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the market trading day on
the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 ii. If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common
Stock on the market trading day on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
 iii. In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith through
reasonable application of a reasonable valuation method by the Administrator. 
 (s) “Grant
Date” means, for all purposes, the date on which the Administrator makes the determination granting an Award, or such other date as is determined by the Administrator, provided that in the case of any Incentive Stock Option, the grant
date shall be the later of the date on which the Administrator makes the determination granting such Incentive Stock Option or the date of commencement of the Awardee’s employment relationship with the Company. 
 (t) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (u) “Inside
Director” means a Director who is an Employee. 
 (v) “Nasdaq” means the Nasdaq Global Market or its
successor.
 (w) “Nonstatutory Stock Option” means an Option not intended to qualify as an
Incentive Stock Option. 
 (x) “Officer” means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (y) “Option” means a right granted under Section 8 to purchase a number of Shares at such exercise price, at such times, and on such other terms and conditions as are specified in the agreement or
other documents evidencing the Option (the “Option Agreement”). Both Options intended to qualify as Incentive Stock Options and Nonstatutory Stock Options may be granted under the Plan. 
 (z) “Outside Director” means a Director who is not an Employee. 
  

 3 

 (aa) “Participant” means the Awardee or any person (including any
estate) to whom an Award has been assigned or transferred as permitted hereunder. 
 (bb) “Plan” means this LookSmart, Ltd. 2007 Equity Incentive Plan. 
 (cc) “Qualifying Performance Criteria” shall have the meaning set forth in Section 13(b) of the Plan. 
 (dd) “Share” means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan. 
 (ee) “Stock Appreciation Right” means a right to receive cash and/or shares of Common Stock based on a change in the
Fair Market Value of a specific number of shares of Common Stock between the Grant Date and the exercise date granted under Section 11.
 (ff) “Stock Award” means an award or issuance of Shares, Stock Units, Stock Appreciation Rights or other similar awards made under Section 11 of the Plan, the grant, issuance,
retention, vesting, settlement and/or transferability of which is subject during specified periods of time to such conditions (including continued employment or performance conditions) and terms as are expressed in the agreement or other documents
evidencing the Award (the “Stock Award Agreement”). 
 (gg) “Stock
Unit” means a bookkeeping entry representing an amount equivalent to the Fair Market Value of one Share (or a fraction or multiple of such value), payable in cash, property or Shares. Stock Units represent an unfunded and unsecured
obligation of the Company, except as otherwise provided for by the Administrator. 
 (hh) “Subsidiary” means any company (other than the Company) in an unbroken chain of companies beginning with the Company, provided each company in the unbroken chain (other than the Company) owns, at the
time of determination, stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other companies in such chain. 
 (ii) “Termination of Employment” shall mean ceasing to be an Employee, Consultant or Director, as determined in the sole discretion of the Administrator. However, for Incentive Stock
Option purposes, Termination of Employment will occur when the Awardee ceases to be an employee (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the Company or one of its Subsidiaries.
The Administrator shall determine whether any corporate transaction, such as a sale or spin-off of a division or business unit, or a joint venture, shall be deemed to result in a Termination of Employment. 
 (jj) “Total and Permanent Disability” shall have the meaning set forth in Section 22(e)(3) of the
Code. 
  

 4 

 3. Stock Subject to the Plan.
 (a) Aggregate Limits. Subject to the provisions of Section 14 of the Plan, the maximum aggregate number of Shares that
may be optioned and sold under the Plan is 3,700,000 Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. 
 If an Award expires or is cancelled or forfeited or becomes unexercisable without having been exercised in full, the unissued Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan
has terminated); provided, however, that Shares that have actually been issued under the Plan, whether upon exercise of an Option or under a Stock Award, shall not be returned to the Plan and shall not become available for future distribution
under the Plan, except that if Shares of Common Stock are repurchased by or forfeited to the Company upon the Awardee’s failure to vest in or otherwise earn the Shares, such Shares shall become available for future grant under the Plan. If an
Awardee pays the exercise or purchase price of an Award granted under the Plan through the tender of Shares, or if Shares are tendered or withheld to satisfy any Company withholding obligations, the number of Shares so tendered or withheld shall not
become available for re-issuance thereafter under the Plan. 
 Subject to the provisions of Section 14 of the Plan, the
maximum aggregate number of Shares that may be granted under the Plan subject to Stock Awards having an exercise or purchase price that is less than the Fair Market Value of the Common Stock measured as of the Grant Date of the Stock Award is
925,000 Shares. Stock-settled Stock Appreciation Rights will not be counted against this limit; provided however that the total number of Shares to which a Stock Appreciation Right applies (rather than the net number issued upon settlement) shall be
deducted against the number of Shares set forth in the first paragraph of Section 3(a) above upon settlement of such Award. 
 (b) Code Section 162(m) Share Limits. Subject to the provisions of Section 14 of the Plan, the aggregate number of Shares subject to non-cash Awards granted under this Plan during any calendar year to any one
Awardee shall not exceed 1,500,000; provided that in connection with his or her initial service to the Company, an Awardee may be granted Awards to purchase up to an additional 1,500,000 Shares during the year in which such service commences.
Notwithstanding anything to the contrary in the Plan, the limitation set forth in this Section 3(b) shall be subject to adjustment under Section 14(a) of the Plan only to the extent that such adjustment will not affect the status of any
Award intended to qualify as “performance based compensation” under Code Section 162(m). 
 4. Administration
of the Plan.
 (a) Procedure.
 i. Multiple Administrative Bodies. The Plan shall be administered by the Board, a Committee and/or their delegates.

  

 5 

 ii. Section 162. To the extent that the Administrator determines it
to be desirable to qualify Awards granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, Awards to “covered employees” within the meaning of Section 162(m) of the Code or
Employees that the Committee determines may be “covered employees” in the future shall be made by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code. 
 iii. Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3
promulgated under the Exchange Act (“Rule 16b-3”), Awards to Officers and Directors shall be made by the entire Board or a Committee of two or more “non-employee directors” within the meaning of Rule 16b-3. 

iv. Other Administration. The Board or a Committee may delegate to an authorized officer or officers of the Company
the power to approve Awards to persons eligible to receive Awards under the Plan who are not (A) subject to Section 16 of the Exchange Act or (B) at the time of such approval, “covered employees” under Section 162(m) of
the Code or (C) any other executive officer. 
 v. Delegation of Authority for the Day-to-Day Administration of
the Plan. Except to the extent prohibited by Applicable Law, the Administrator may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. Such delegation may be
revoked at any time. 
 vi. Nasdaq. The Plan will be administered in a manner that complies with any applicable Nasdaq
or stock exchange listing requirements. 
 (b) Powers of the Administrator. Subject to the provisions of the
Plan and, in the case of a Committee or delegates acting as the Administrator, subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the authority, in its discretion: 
 i. to select the Employees, Consultants and Directors of the Company or its Affiliates to whom Awards are to be granted hereunder;

 ii. to determine the number of shares of Common Stock or amount of cash to be covered by each Award granted hereunder;

 iii. to determine the type of Award to be granted to the selected Employees, Consultants and Directors; 
 iii. to approve forms of Award Agreements for use under the Plan; 
  

 6 

 iv. to determine the terms and conditions, not inconsistent with the terms of the
Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise and/or purchase price (if applicable), the time or times when an Award may be exercised (which may or may not be based on performance
criteria), the vesting schedule, any vesting and/or exercisability acceleration or waiver of forfeiture restrictions, the acceptable forms of consideration, the term, and any restriction or limitation regarding any Award or the Shares relating
thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine and may be established at the time an Award is granted or thereafter; 
 v. to determine whether and under what circumstances an Option may be settled in cash under Section 8(h) instead of Common Stock;

 vi. to correct administrative errors; 
 vii. to construe and interpret the terms of the Plan (including sub-plans and Plan addenda) and Awards granted pursuant to the Plan;

 viii. to adopt rules and procedures relating to the operation and administration of the Plan to accommodate the
specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A) to adopt the rules and procedures regarding the conversion of local currency, withholding
procedures and handling of stock certificates which vary with local requirements and (B) to adopt sub-plans and Plan addenda as the Administrator deems desirable, to accommodate foreign laws, regulations and practice; 
 ix. to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
and Plan addenda; 
 x. to modify or amend each Award, including, but not limited to, the acceleration of vesting and/or
exercisability, provided, however, that any such amendment is subject to Section 15 of the Plan and except as set forth in that Section, may not impair any outstanding Award unless agreed to in writing by the Participant; 
 xi. to allow Participants to satisfy withholding tax amounts by electing to have the Company withhold from the Shares to be issued
upon exercise of an Option or vesting of a Stock Award that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined in such manner and on such
date that the Administrator shall determine or, in the absence of provision otherwise, on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose shall be made in
such form and under such conditions as the Administrator may provide; 
  

 7 

 xii. to authorize conversion or substitution under the Plan of any or all stock
options, stock appreciation rights or other stock awards held by service providers of an entity acquired by the Company (the “Conversion Awards”). Any conversion or substitution shall be effective as of the close of the merger,
acquisition or other transaction. The Conversion Awards may be Nonstatutory Stock Options or Incentive Stock Options, as determined by the Administrator, with respect to options granted by the acquired entity; provided, however, that with respect to
the conversion of stock appreciation rights in the acquired entity, the Conversion Awards shall be Nonstatutory Stock Options. Unless otherwise determined by the Administrator at the time of conversion or substitution, all Conversion Awards shall
have the same terms and conditions as Awards generally granted by the Company under the Plan; 
 xiii. to authorize any
person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator; 
 xiv. to impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by a Participant or other subsequent transfers by the Participant of any Shares
issued as a result of or under an Award, including without limitation, (A) restrictions under an insider trading policy or under any other Company policy relating to Company stock and stock ownership and (B) restrictions as to the use of a
specified brokerage firm for such resales or other transfers; 
 xv. to provide, either at the time an Award is granted
or by subsequent action, that an Award shall contain as a term thereof, a right, either in tandem with the other rights under the Award or as an alternative thereto, of the Participant to receive, without payment to the Company, a number of Shares,
cash or a combination thereof, the amount of which is determined by reference to the value of the Award; and 
 xvi. to
make all other determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder. 
 (c) Effect of Administrator’s Decision. All decisions, determinations and interpretations by the Administrator regarding the Plan, any rules and regulations under the Plan and the terms and conditions of any Award
granted hereunder, shall be final and binding on all Participants and on all other persons. The Administrator shall consider such factors as it deems relevant, in its sole and absolute discretion, to making such decisions, determinations and
interpretations including, without limitation, the recommendations or advice of any officer or other employee of the Company and such attorneys, consultants and accountants as it may select. 
  

 8 

 5. Eligibility.
 Awards may be granted to Employees, Consultants and Directors of the Company or any of its Affiliates; provided that Incentive Stock Options may be
granted only to Employees of the Company or of a Subsidiary of the Company. 
 6. Term of Plan.
 The Plan shall become effective upon its approval by the stockholders of the Company. It shall continue in effect for a term of ten (10) years from
the later of the date the stockholders of the Company approve the Plan or the date any amendment to add shares to the Plan is approved by stockholders of the Company, unless terminated earlier under Section 15 of the Plan. 
 7. Term of Award.
 The term of each Award shall be determined by the Administrator and stated in the Award Agreement. In the case of an Option, the term shall be ten (10) years from the Grant Date or such shorter term as may be provided in the Award
Agreement; provided that an Incentive Stock Option granted to an Employee who on the Grant Date owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Subsidiary shall have a term
of no more than five (5) years from the Grant Date. In the case of a Stock Appreciation Right, the term shall be ten (10) years from the Grant Date or such shorter term as may be provided in the Award Agreement. 
 8. Options.
 The
Administrator may grant an Option or provide for the grant of an Option, either from time to time in the discretion of the Administrator or automatically upon the occurrence of specified events, including, without limitation, the achievement of
performance goals, the satisfaction of an event or condition within the control of the Awardee or within the control of others. 
 (a) Option Agreement. Each Option Agreement shall contain provisions regarding (i) the number of Shares that may be issued upon exercise of the Option, (ii) the type of Option, (iii) the exercise price of the
Shares and the means of payment for the Shares, (iv) the term of the Option, (v) such terms and conditions on the vesting and/or exercisability of an Option as may be determined from time to time by the Administrator,
(vi) restrictions on the transfer of the Option or the Shares issued upon exercise of the Option and forfeiture provisions on either and (vii) such further terms and conditions, in each case not inconsistent with this Plan as may be
determined from time to time by the Administrator. 
 (b) Exercise Price. The per share exercise price for
the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator, subject to the following: 
 i. In the case of an Incentive Stock Option, the per Share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the Grant Date; provided however, that in the case of an Incentive
Stock Option granted to an Employee who on the Grant Date owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Subsidiary, the per Share exercise price shall be no less than one
hundred ten percent (110%) of the Fair Market Value per Share on the Grant Date. 
  

 9 

 ii. In the case of a Nonstatutory Stock Option, the per Share exercise price shall
be no less than one hundred percent (100%) of the Fair Market Value per Share on the Grant Date. 
 iii. Notwithstanding the foregoing, at the Administrator’s discretion, Conversion Awards may be granted in substitution and/or conversion of options of an acquired entity, with a per Share exercise price of less than 100% of the
Fair Market Value per Share on the date of such substitution and/or conversion. 
 (c) No Option (or Stock Appreciation
Right) Repricings. Other than in connection with a change in the Company’s capitalization (as described in Section 14(a) of the Plan), a Repricing (as defined below) is prohibited without stockholder approval. 
 “Repricing” means any of the following or any other action that has the same purpose and effect: (a) lowering the
exercise price of an outstanding Option or, for the avoidance of doubt, Stock Appreciation Right granted under this Plan after it is granted; (b) any other action affecting an outstanding Option or, for the avoidance of doubt, Stock
Appreciation Right granted under this Plan that is treated as a repricing under United States generally accepted accounting principles; (c) canceling an outstanding Option or, for the avoidance of doubt, Stock Appreciation Right granted under
this Plan at a time when its exercise or purchase price exceeds the then fair market value of the stock underlying such outstanding Option or, for the avoidance of doubt, Stock Appreciation Right, in exchange for another Option or, for the avoidance
of doubt, Stock Appreciation Right or a cash payment, unless the cancellation and exchange occurs in connection with a merger, consolidation, sale of substantially all the Company’s assets, acquisition, spin-off, spin-out, or other similar
corporate transaction. 
 (d) Vesting Period and Exercise Dates. Options granted under this Plan shall vest
and/or be exercisable at such time and in such installments during the period prior to the expiration of the Option’s term as determined by the Administrator. The Administrator shall have the right to make the timing of the ability to exercise
any Option granted under this Plan subject to continued employment, the passage of time and/or such performance requirements as deemed appropriate by the Administrator. At any time after the grant of an Option, the Administrator may reduce or
eliminate any restrictions surrounding any Participant’s right to exercise all or part of the Option. 
  

 10 

 (e) Form of Consideration. The Participant may pay the exercise price of
an Option using any of the following forms of consideration, unless the Administrator determines not to permit such form of consideration at any time including at the time of exercise: 
 i. cash; 
 ii. check or wire transfer (denominated in U.S. Dollars); 
 iii. subject to the Company’s discretion to
refuse for any reason and at any time to accept such consideration and subject to any conditions or limitations established by the Administrator, other Shares held by the Participant which have a Fair Market Value on the date of surrender equal
to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
 iv. consideration received
by the Company under a broker-assisted sale and remittance program acceptable to the Administrator; 
 v. reduction in the
amount of any Company liability to the Participant, including any liability attributable to the Participant’s participation in any Company-sponsored deferred compensation program or arrangement; 
 vi. such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or

 vii. any combination of the foregoing methods of payment. 
 (f) Effect of Termination on Options 
 i. Generally. Upon an Awardee’s Termination of Employment, other than upon the Awardee’s death or disability, the Awardee may exercise his or her Option within such period of time as is specified
in the Option Agreement to the extent that the Option is vested and exercisable on the date of Termination of Employment (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a
specified time in the Option Agreement, the Option (to the extent vested and exercisable) shall remain exercisable for three (3) months following the Awardee’s Termination of Employment. If, on the date of Termination of Employment, the
Awardee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after Termination of Employment, the Awardee does not exercise his or her Option within the time specified
by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 ii. Disability of Awardee. Unless otherwise provided for by the Administrator, upon an Awardee’s Termination of Employment as a result of the 

  

 11 

 
Awardee’s disability, including Total and Permanent Disability, all outstanding Options granted to such Awardee that were vested and exercisable as of
the date of the Awardee’s Termination of Employment may be exercised by the Awardee until (A) twelve (12) months following Awardee’s Termination of Employment as a result of Awardee’s disability, including Total and
Permanent Disability or (B) the expiration of the term of such Option. If the Participant does not exercise such Option within the time specified, the Option (to the extent not exercised) shall automatically terminate. 
 iii. Death of Awardee. Unless otherwise provided for by the Administrator, upon an Awardee’s Termination of
Employment as a result of the Awardee’s death all outstanding Options granted to such Awardee that were vested and exercisable as of the date of the Awardee’s death, may be exercised until the earlier of (A) twelve (12) months
following the Awardee’s death or (B) the expiration of the term of such Option. Such Option may be exercised, to the extent the Option is vested and exercisable, by the beneficiary designated by the Awardee (as provided in Section 16
of the Plan), the executor or administrator of the Awardee’s estate or, if none, by the person(s) entitled to exercise the Option under the Awardee’s will or the laws of descent or distribution; provided that the Company need not accept
exercise of an Option by such beneficiary, executor or administrator unless the Company has satisfactory evidence of such person’s authority to act as such. If the Option is not so exercised within the time specified, such Option (to the extent
not exercised) shall automatically terminate. 
 iv. Other Terminations of Employment. The Administrator may provide in
the applicable Option Agreement for different treatment of Options upon Termination of Employment of the Awardee than that specified above. 
 v. Extension of Exercise Period. The Administrator shall have full power and authority to extend the period of time for which an Option is to remain exercisable following an Awardee’s Termination of
Employment from the periods set forth in Sections 8(f)(i),(ii) and (iii) above or in the Option Agreement to such greater time as the Board shall deem appropriate, provided that in no event shall such Option be exercisable later than the date
of expiration of the term of such Option as set forth in the Option Agreement. 
 (g) Leave of Absence. The
Administrator shall have the discretion to determine whether and to what extent the vesting of Options shall be tolled during any unpaid leave of absence; provided, however, that in the absence of such determination, vesting of Options shall be
tolled during any leave that is not a leave required to be provided to the Awardee under Applicable Law. In the event of military leave, vesting shall toll during any unpaid portion of such leave, provided that, upon an Awardee’s returning from
military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she shall be given vesting credit with respect to Options to the same extent as
would have applied had the Awardee continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave. 
  

 12 

 (h) Buyout Provisions. Subject to the prohibition on Repricings set forth in
Section 8(c) hereof, the Administrator may at any time offer to buy out for a payment in cash or Shares, an Option or Stock Appreciation Right previously granted, based on such terms and conditions as the Administrator shall establish and
communicate to the Awardee at the time that such offer is made. 
 9. Incentive Stock Option
Limitations/Terms.
 (a) Eligibility. Only employees (as determined in accordance with
Section 3401(c) of the Code and the regulations promulgated thereunder) of the Company or any of its Subsidiaries may be granted Incentive Stock Options. 
 (b) $100,000 Limitation. Notwithstanding the designation “Incentive Stock Option” in an Option Agreement, if
and to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Awardee during any calendar year (under all plans of the Company and any of its
Subsidiaries) exceeds U.S. $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 9(b), Incentive Stock Options shall be taken into account in the order in which they were granted. The Fair Market
Value of the Shares shall be determined as of the Grant Date. 
 (c) Transferability. An Incentive Stock
Option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner by the Awardee otherwise than by will or the laws of descent and distribution, and, during the lifetime of such Awardee, may only be exercised by the
Awardee. If the terms of an Incentive Stock Option are amended to permit transferability, the Option will be treated for tax purposes as a Nonstatutory Stock Option. The designation of a beneficiary by an Awardee will not constitute a transfer.

 (d) Exercise Price. The per Share exercise price of an Incentive Stock Option shall be determined by the
Administrator in accordance with Section 8(b)(i) of the Plan. 
 (e) Other Terms. Option Agreements
evidencing Incentive Stock Options shall contain such other terms and conditions as may be necessary to qualify, to the extent determined desirable by the Administrator, with the applicable provisions of Section 422 of the Code. 
  

 13 

 10. Exercise of Option.
 (a) Procedure for Exercise.  
 i. Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the respective Option
Agreement. 
 ii. An Option shall be deemed exercised when the Company receives (A) written or electronic notice of
exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option; (B) full payment for the Shares with respect to which the related Option is exercised; and (C) payment of all applicable withholding taxes.

 iii. An Option may not be exercised for a fraction of a Share. 
 (b) Rights as a Stockholder. The Company shall issue (or cause to be issued) such Shares as administratively practicable after the
Option is exercised. Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Unless provided otherwise by the Administrator or
pursuant to this Plan, until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder
shall exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option. 
 11. Stock
Awards.
 (a) Stock Award Agreement. Each Stock Award Agreement shall contain provisions regarding
(i) the number of Shares subject to such Stock Award or a formula for determining such number, (ii) the purchase price of the Shares, if any, and the means of payment for the Shares, (iii) the performance criteria (including
Qualifying Performance Criteria), if any, and level of achievement versus these criteria that shall determine the number of Shares granted, issued, retainable and/or vested, (iv) such terms and conditions on the grant, issuance, vesting,
settlement and/or forfeiture of the Shares as may be determined from time to time by the Administrator, (v) restrictions on the transferability of the Stock Award and (vi) such further terms and conditions in each case not inconsistent
with this Plan as may be determined from time to time by the Administrator. 
 (b) Restrictions and Performance
Criteria. The grant, issuance, retention, vesting and/or settlement of each Stock Award or the Shares subject thereto may be subject to such performance criteria (including Qualifying Performance Criteria) and level of achievement versus
these criteria as the Administrator shall determine, which criteria may be based on financial performance, personal performance evaluations and/or completion of service by the Awardee. Unless otherwise permitted in compliance with 

  

 14 

 
the requirements of Code Section 162(m) with respect to an Award intended to comply as “performance-based compensation” thereunder, the
Committee shall establish the Qualifying Performance Criteria applicable to, and the formula for calculating the amount payable under, the Award no later than the earlier of (a) the date ninety (90) days after the commencement of the
applicable performance period, or (b) the date on which 25% of the performance period has elapsed, and in any event at a time when the achievement of the applicable Qualifying Performance Criteria remains substantially uncertain. 
 (c) Forfeiture. Unless otherwise provided for by the Administrator, upon the Awardee’s Termination of Employment,
the Stock Award and the Shares subject thereto shall be forfeited, provided that to the extent that the Participant purchased or earned any Shares, the Company shall have a right to repurchase the unvested Shares at such price and on such terms and
conditions as the Administrator determines. 
 (d) Rights as a Stockholder. Unless otherwise provided by the
Administrator in the Award Agreement, the Participant shall have the rights equivalent to those of a stockholder and shall be a stockholder only after Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) to the Participant. Unless otherwise provided by the Administrator, a Participant holding Stock Units shall not be entitled to receive dividend payments or any credit therefore as if he or she was an actual
stockholder. 
 (e) Stock Appreciation Rights. 
 i. General. Stock Appreciation Rights may be granted either alone, in addition to, or in tandem with other Awards granted under the
Plan. The Board may grant Stock Appreciation Rights to eligible Participants subject to terms and conditions not inconsistent with this Plan and determined by the Board. The specific terms and conditions applicable to the Participant shall be
provided for in the Stock Award Agreement. Stock Appreciation Rights shall be exercisable, in whole or in part, at such times as the Board shall specify in the Stock Award Agreement. 
 ii. Exercise of Stock Appreciation Right. Upon the exercise of a Stock Appreciation Right, in whole or in part, the
Participant shall be entitled to a payment in an amount equal to the excess of the Fair Market Value on the date of exercise of a fixed number of Shares covered by the exercised portion of the Stock Appreciation Right, over the Fair Market Value on
the Grant Date of the Shares covered by the exercised portion of the Stock Appreciation Right (or such other amount calculated with respect to Shares subject to the Award as the Board may determine). The amount due to the Participant upon the
exercise of a Stock Appreciation Right shall be paid in such form of consideration as determined by the Board and may be in cash, Shares or a combination thereof, over the period or periods specified in the Stock Award Agreement. A Stock Award
Agreement may place limits on the amount that may be paid over any specified period or periods upon the exercise of a Stock Appreciation Right, on an aggregate basis or as to any Participant. A Stock Appreciation Right shall be considered exercised

  

 15 

 
when the Company receives written notice of exercise in accordance with the terms of the Stock Award Agreement from the person entitled to exercise the Stock
Appreciation Right. 
 iii. Nonassignability of Stock Appreciation Rights. Except as determined by the Administrator,
no Stock Appreciation Right shall be assignable or otherwise transferable by the Participant except by will or by the laws of descent and distribution. 
 12. Cash Awards. 
 (a) Cash Award. Each Cash Award shall contain provisions regarding
(i) the target and maximum amount payable to the Awardee as a Cash Award, (ii) the performance criteria and level of achievement versus these criteria which shall determine the amount of such payment, (iii) the period as to which
performance shall be measured for establishing the amount of any payment, (iv) the timing of any payment earned by virtue of performance, (v) restrictions on the alienation or transfer of the Cash Award prior to actual payment,
(vi) forfeiture provisions, and (vii) such further terms and conditions, in each case not inconsistent with the Plan, as may be determined from time to time by the Administrator. The maximum amount payable as a Cash Award may be a multiple
of the target amount payable, but the maximum amount payable pursuant to that portion of a Cash Award granted under this Plan for any fiscal year to any Awardee that is intended to satisfy the requirements for “performance based
compensation” under Section 162(m) of the Code shall not exceed U.S. $1,000,000. 
 (b) Performance Criteria. The
Administrator shall establish the performance criteria and level of achievement versus these criteria which shall determine the target and the minimum and maximum amount payable under a Cash Award, which criteria may be based on financial
performance and/or personal performance evaluations. The Committee may specify the percentage of the target Cash Award that is intended to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code.
Notwithstanding anything to the contrary herein, the performance criteria for any portion of a Cash Award that is intended to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code shall be a
measure established by the Committee based on one or more Qualifying Performance Criteria selected by the Committee and specified in writing not later than 90 days after the commencement of the period of service to which the performance goals
relates, provided that the outcome is substantially uncertain at that time. 
 (c) Timing and Form of Payment. The Administrator shall
determine the timing of payment of any Cash Award. The Administrator may provide for or, subject to such terms and conditions as the Administrator may specify, may permit an Awardee to elect for the payment of any Cash Award to be deferred to a
specified date or event. The Administrator may specify the form of payment of Cash Awards, which may be cash or other property, or may provide for an Awardee to 

  

 16 

 
have the option for his or her Cash Award, or such portion thereof as the Administrator may specify, to be paid in whole or in part in cash or other
property. 
 (d) Termination of Employment. The Administrator shall have the discretion to determine the effect a Termination of
Employment due to (i) disability, (ii) death or (iii) otherwise shall have on any Cash Award. 
 13. Other
Provisions Applicable to Awards.
 (a) Non-Transferability of Awards. An Award may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner for value other than by beneficiary designation, will or by the laws of descent or distribution. Subject to Section 9(c) and the preceding sentence, the Administrator
may in its discretion make an Award transferable to an Awardee’s family member or any other person or entity as it deems appropriate. If the Administrator makes an Award transferable, either at the time of grant or thereafter, such Award shall
contain such additional terms and conditions as the Administrator deems appropriate, and any transferee shall be deemed to be bound by such terms upon acceptance of such transfer. 
 (b) Qualifying Performance Criteria. For purposes of this Plan, the term “Qualifying Performance
Criteria” shall mean the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to an Awardee with respect to an Award. As determined by the Committee, the Qualifying Performance Criteria applicable
to an Award may provide for a targeted level or levels of achievement using one or more of the following measures: (i) cash flow; (ii) earnings per share; (iii) market share; (iv) profit after tax; (v) profit before tax;
(vi) revenue; and (vii) total stockholder return. The Performance Goals may differ from Awardee to Awardee and from Award to Award. Any criteria used may be measured in absolute terms or as compared to another company or companies. Any
criteria used may be measured against the performance of the Company as a whole or a segment of the Company. In establishing Performance Goals, the Committee may exclude one or more non-recurring items from its measurement of achievement.

 (c) Certification. Prior to the payment of any compensation under an Award intended to qualify as
“performance-based compensation” under Section 162(m) of the Code, the Committee shall certify the extent to which any Qualifying Performance Criteria and any other material terms under such Award have been satisfied (other than in
cases where such relate solely to the increase in the value of the Common Stock). 
 (d) Discretionary Adjustments
Pursuant to Section 162(m). Notwithstanding satisfaction of any completion of any Qualifying Performance Criteria, to the extent specified at the time of grant of an Award to “covered employees” within the meaning of
Section 162(m) of the Code, the number of Shares, Options or other benefits granted, issued, retainable and/or vested under an Award on account of satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the basis
of such further considerations as the Committee in its sole discretion shall determine. 
  

 17 

 (e) Compliance with Section 409A. Notwithstanding anything to the
contrary contained herein, to the extent that the Administrator determines that any Award granted under the Plan is subject to Code Section 409A and unless otherwise specified in the applicable Award Agreement, the Award Agreement evidencing
such Award shall incorporate the terms and conditions necessary for such Award to avoid the consequences described in Code Section 409A(a)(1), and to the maximum extent permitted under Applicable Law (and unless otherwise stated in the
applicable Award Agreement), the Plan and the Award Agreements shall be interpreted in a manner that results in their conforming to the requirements of Code Section 409A(a)(2), (3) and (4) and any Department of Treasury or Internal
Revenue Service regulations or other interpretive guidance issued under Section 409A (whenever issued, the “Guidance”). Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement provides otherwise,
with specific reference to this sentence), to the extent that a Participant holding an Award that constitutes “deferred compensation” under Section 409A and the Guidance is a “specified employee” (also as defined
thereunder), no distribution or payment of any amount shall be made before a date that is six (6) months following the date of such Participant’s “separation from service” (as defined in Section 409A and the Guidance) or, if
earlier, the date of the Participant’s death. 
 (f) Deferral of Award Benefits. The Administrator may in its
discretion and upon such terms and conditions as it determines appropriate permit one or more Participants whom it selects to (a) defer compensation payable pursuant to the terms of an Award, or (b) defer compensation arising outside the
terms of this Plan pursuant to a program that provides for deferred payment in satisfaction of such other compensation amounts through the issuance of one or more Awards. Any such deferral arrangement shall be evidenced by an Award Agreement in such
form as the Administrator shall from time to time establish, and no such deferral arrangement shall be a valid and binding obligation unless evidenced by a fully executed Award Agreement, the form of which the Administrator has approved, including
through the Administrator’s establishing a written program (the “Program”) under this Plan to govern the form of Award Agreements participating in such Program. Any such Award Agreement or Program shall specify the treatment of
dividends or dividend equivalent rights (if any) that apply to Awards governed thereby, and shall further provide that any elections governing payment of amounts pursuant to such Program shall be in writing, shall be delivered to the Company or its
agent in a form and manner that complies with Code Section 409A and the Guidance, and shall specify the amount to be distributed in settlement of the deferral arrangement, as well as the time and form of such distribution in a manner that
complies with Code Section 409A and the Guidance. 
  

 18 

 14. Adjustments upon Changes in Capitalization, Dissolution, Merger or Asset
Sale.
 (a) Changes in Capitalization. Subject to any required action by the stockholders of the
Company, the number of shares of Common Stock covered by each outstanding Award, the number of shares of Common Stock which have been authorized for issuance under the Plan, but as to which no Awards have yet been granted or which have been returned
to the Plan upon cancellation, forfeiture or expiration of an Award, each of the share limits set forth in Section 3(a) and 3(b), and the price per share of Common Stock covered by each such outstanding Award, shall be proportionately adjusted
for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of
issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Award. 
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator
shall notify each Participant as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Awardee to have the right to exercise his or her Award until fifteen (15) days
prior to such transaction as to all of the Common Stock covered thereby, including Shares as to which the Award would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option or forfeiture
applicable to any Shares purchased upon exercise of an Option or covered by a Stock Award shall lapse as to all such Shares, provided the proposed liquidation or dissolution takes place at the time and in the matter contemplated. To the extent it
has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action. 
 (c) Merger or Asset Sale. In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding non-cash Award shall be assumed or an
equivalent option or right substituted by the successor corporation or an Affiliate or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the non-cash Award, the Awardee shall
fully vest in and have the right to exercise the Award as to all of the Shares subject to the Award, including Shares as to which it would not otherwise be vested and exercisable, and any repurchase option or forfeiture applicable to any Shares
purchased upon exercise of an Option or covered by a Stock Award shall lapse as to all such Shares. If a non-cash Award becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Awardee in writing or electronically that the Award shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Award shall terminate upon the expiration of such
period. For the purposes of this paragraph, the Award shall be considered assumed if, following the 

  

 19 

 
merger or sale of assets, the Option or Award confers the right to purchase or receive, for each Share of Common Sock subject to the Award immediately prior
to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common
stock of the successor corporation, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each Share of Common Stock subject to the Award, to be solely
common stock of the successor corporation equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. The treatment of Cash Awards in a transaction governed by this
Section 14(c) shall be governed by the applicable Award Agreement. 
 15. Amendment and Termination of the
Plan.
 (a) Amendment and Termination. The Administrator may amend, alter or discontinue the Plan
or any Award Agreement, but any such amendment shall be subject to approval of the stockholders of the Company in the manner and to the extent required by Applicable Law. To the extent required to comply with Section 162(m), the Company shall
seek re-approval of the Plan from time to time by the stockholders. In addition, without limiting the foregoing, unless approved by the stockholders of the Company, no such amendment shall be made that would: 
 i. increase the maximum number of Shares for which Awards may be granted under the Plan, other than an increase pursuant to
Section 13 of the Plan; 
 ii. reduce the minimum exercise prices at which Options may be granted under the Plan (as
set forth in Section 8(b)); 
 iii. result in a Repricing (as defined in Section 8(c)) of Options or Stock
Appreciation Rights; or 
 iv. change the class of persons eligible to receive Awards under the Plan. 
 (b) Effect of Amendment or Termination. No amendment, suspension or termination of the Plan shall impair the rights of
any Award, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company; provided further that the Administrator may amend an outstanding Award in
order to conform it to the Administrator’s intent (in its sole discretion) that such Award not be subject to Code Section 409A(a)(1). Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted
to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. 
  

 20 

 (c) Effect of the Plan on Other Arrangements. Neither the adoption of
the Plan by the Board or a Committee nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or any Committee to adopt such other incentive arrangements
as it or they may deem desirable, including without limitation, the granting of restricted stock or stock options otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases. The value
of Awards granted pursuant to the Plan will not be included as compensation, earnings, salaries or other similar terms used when calculating an Awardee’s benefits under any employee benefit plan sponsored by the Company or any Subsidiary except
as such plan otherwise expressly provides. 
 16. Designation of Beneficiary.
 (a) An Awardee may file a written designation of a beneficiary who is to receive the Awardee’s rights pursuant to
Awardee’s Award or the Awardee may include his or her Awards in an omnibus beneficiary designation for all benefits under the Plan. To the extent that Awardee has completed a designation of beneficiary while employed with the Company, such
beneficiary designation shall remain in effect with respect to any Award hereunder until changed by the Awardee to the extent enforceable under Applicable Law. 
 (b) Such designation of beneficiary may be changed by the Awardee at any time by written notice. In the event of the death of an
Awardee and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Awardee’s death, the Company shall allow the executor or administrator of the estate of the Awardee to exercise the Award, or if no
such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may allow the spouse or one or more dependents or relatives of the Awardee to exercise the Award to the extent permissible under
Applicable Law or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
 17. No Right to Awards or to Employment.
 No person shall have any claim or right to be granted an Award
and the grant of any Award shall not be construed as giving an Awardee the right to continue in the employ of the Company or its Affiliates. Further, the Company and its Affiliates expressly reserve the right, at any time, to dismiss any Employee,
Consultant or Awardee at any time without liability or any claim under the Plan, except as provided herein or in any Award Agreement entered into hereunder. 
 18. Legal Compliance.
 Shares shall not be issued pursuant to the exercise of an
Option or Stock Award unless the exercise of such Option or Stock Award and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such
compliance. 
  

 21 

 19. Reservation of Shares.
 The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan. 
 20. Notice.
 Any written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and shall be effective when
received. 
 21. Governing Law; Interpretation of Plan and Awards.
 (a) This Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the
choice of law rules, of the state of Delaware. 
 (b) In the event that any provision of the Plan or any Award granted
under the Plan is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise
deleted, and the remainder of the terms of the Plan and/or Award shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision. 
 (c) The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute
a part of the Plan, nor shall they affect its meaning, construction or effect. 
 (d) The terms of the Plan and any Award
shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns. 
 (e) All questions arising under the Plan or under any Award shall be decided by the Administrator in its total and absolute discretion. In the event the Participant believes that a decision by the Administrator
with respect to such person was arbitrary or capricious, the Participant may request arbitration with respect to such decision. The review by the arbitrator shall be limited to determining whether the Administrator’s decision was arbitrary or
capricious. This arbitration shall be the sole and exclusive review permitted of the Administrator’s decision, and the Awardee shall as a condition to the receipt of an Award be deemed to explicitly waive any right to judicial review.

 (f) Notice of demand for arbitration shall be made in writing to the Administrator within thirty (30) days after
the applicable decision by the Administrator. The arbitrator shall be selected from amongst those members of the Board who are neither Administrators nor Employees. If there are no such members of the Board, the arbitrator shall be selected by the
Board. The arbitrator shall be an individual who is an attorney licensed to practice law in the State of California. Such arbitrator shall be neutral within 

  

 22 

 
the meaning of the Commercial Rules of Dispute Resolution of the American Arbitration Association; provided, however, that the arbitration shall not be
administered by the American Arbitration Association. Any challenge to the neutrality of the arbitrator shall be resolved by the arbitrator whose decision shall be final and conclusive. The arbitration shall be administered and conducted by the
arbitrator pursuant to the Commercial Rules of Dispute Resolution of the American Arbitration Association. The decision of the arbitrator on the issue(s) presented for arbitration shall be final and conclusive and may be enforced in any court of
competent jurisdiction. 
 22. Limitation on Liability.
 The Company and any Affiliate which is in existence or hereafter comes into existence shall not be liable to a Participant, an Employee, an Awardee or any
other persons as to: 
 (a) The Non-Issuance of Shares. The non-issuance or sale of Shares (including under
Section 18 above) as to which the Company has been unable, or the Administrator deems it infeasible, to obtain from any regulatory body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any shares hereunder; and 
 (b) Tax Consequences. Any tax consequence realized by any
Participant, Employee, Awardee or other person due to the receipt, vesting, exercise or settlement of any Option or other Award granted hereunder or due to the transfer of any Shares issued hereunder. The Participant is responsible for, and by
accepting an Award under the Plan agrees to bear, all taxes of any nature that are legally imposed upon the Participant in connection with an Award, and the Company does not assume, and will not be liable to any party for, any cost or liability
arising in connection with such tax liability legally imposed on the Participant. In particular, Awards issued under the Plan may be characterized by the Internal Revenue Service (the “IRS”) as “deferred compensation”
under the Code resulting in additional taxes, including in some cases interest and penalties. In the event the IRS determines that an Award constitutes deferred compensation under the Code or challenges any good faith characterization made by the
Company or any other party of the tax treatment applicable to an Award, the Participant will be responsible for the additional taxes, and interest and penalties, if any, that are determined to apply if such challenge succeeds, and the Company will
not reimburse the Participant for the amount of any additional taxes, penalties or interest that result. 
 (c) Forfeiture. The requirement that Participant forfeit an Award, or the benefits received or to be received under an Award, pursuant to any Applicable Law. 
  

 23 

 23. Unfunded Plan.
 Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Awardees who are granted
Stock Awards under this Plan, any such accounts will be used merely as a bookkeeping convenience. The Company shall not be required to segregate any assets which may at any time be represented by Awards, nor shall this Plan be construed as providing
for such segregation, nor shall the Company nor the Administrator be deemed to be a trustee of stock or cash to be awarded under the Plan. Any liability of the Company to any Participant with respect to an Award shall be based solely upon any
contractual obligations which may be created by the Plan; no such obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company. Neither the Company nor the Administrator shall be required
to give any security or bond for the performance of any obligation which may be created by this Plan. 
  

 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]