Document:

Employment Severance Agreement

 Exhibit 10.2 
  
 EMPLOYMENT SEVERANCE AGREEMENT 
  
 This Employment Severance Agreement (the “Agreement”) is made and entered into effective as of May 3, 2004 (the
“Effective Date”), by and between Theresa Strickland (the “Executive”) and Cost Plus, Inc. (the “Company”). 
  
 R E C I T A L S 
  
 A. The Board believes the Company should provide the Executive with certain severance benefits should the Executive’s employment with the Company
terminate under certain circumstances, such benefits to provide the Executive with enhanced financial security and sufficient incentive and encouragement to remain with the Company. 
  
 B. Certain capitalized terms used in the Agreement are defined in Section 6 below. 
  
 AGREEMENT 
  
 In consideration of the mutual covenants herein contained, and in consideration of the continuing employment of Executive by
the Company, the parties further agree as follows: 
  
 1.
Duties and Scope of Employment. The Company shall employ the Executive in the position of Executive Vice President, Merchandising and Marketing with such duties, responsibilities and compensation as in effect as of the Effective Date. The
Board and the Chief Executive Officer of the Company (the “CEO”) shall have the right to revise such responsibilities and compensation from time to time as the Board or the CEO may deem necessary or appropriate. If any such revision
constitutes “Involuntary Termination” as defined in Section 6(c) of this Agreement, the Executive shall be entitled to benefits upon such Involuntary Termination as provided under this Agreement. 
  
 2. At-Will Employment. The Company and the Executive acknowledge that
the Executive’s employment is and shall continue to be at-will, as defined under applicable law. If the Executive’s employment terminates for any reason, the Executive shall not be entitled to any payments, benefits, damages, awards or
compensation other than as provided by this Agreement, or as may otherwise be available in accordance with the Company’s established employee plans and practices or in accordance with other agreements between the Company and the Executive. This
Agreement shall remain in effect until the earlier of (i) the date that all obligations of the parties hereunder have been satisfied or (ii) the date upon which this Agreement terminates by consent of the parties hereto. 
  
 3. Severance Benefits. 
  
 (a) Benefits upon Termination. Except as provided in Section 3(b),
if the Executive’s employment terminates as a result of Involuntary Termination prior to June 15, 2005 and the Executive signs a Release of Claims, then the Company shall pay Executive’s Base Compensation to the Executive for twelve (12)
months from the Termination Date with each 

 monthly installment payable on the last day of such month. Executive shall not be entitled to receive any payments if
Executive voluntarily terminates employment other than as a result of an Involuntary Termination. 
  
 (b) Benefits upon Termination After a Change of Control. If after a Change of Control the Executive’s employment terminates as a result of
Involuntary Termination prior to June 15, 2005 and the Executive signs a Release of Claims, then the Company shall pay Executive’s Base Compensation to the Executive for eighteen (18) months from the Termination Date with each monthly
installment payable on the last day of such month. Executive shall not be entitled to receive any payments if Executive voluntarily terminates employment other than as a result of an Involuntary Termination. 
  
 (c) Stock Options; Bonus. Except as otherwise provided in the
Company’s 2004 Stock Plan or in Executive’s stock option agreements, Executive shall not be entitled to receive any unvested stock options or partial bonus payments for an incomplete bonus plan year. 
  
 (d) Miscellaneous. In addition, (i) the Company shall pay the
Executive any unpaid base salary due for periods prior to the Termination Date; (ii) the Company shall pay the Executive all of the Executive’s accrued and unused vacation through the Termination Date; and (iii) following submission of proper
expense reports by the Executive, the Company shall reimburse the Executive for all expenses reasonably and necessarily incurred by the Executive in connection with the business of the Company prior to termination. These payments shall be made
promptly upon termination and within the period of time mandated by applicable law. 
  
 4. Limitation on Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to the Executive (i) constitute “parachute payments” within the
meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Section 4, would be subject to the excise tax imposed by Section 4999 of the Code, then the Employee’s severance benefits
under Section 3(b) shall be either: 
  
 delivered in full, or

  
 delivered as to such lesser extent which would result in no
portion of such severance benefits being subject to excise tax under Section 4999 of the Code, 
  
 whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by the Executive on an after-tax basis,
of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and the Executive otherwise agree in writing, any determination
required under this Section 4 shall be made in writing by the Company’s independent public accountants immediately prior to Change of Control (the “Accountants”), whose determination shall be conclusive and binding upon the Executive
and the Company for all purposes. For purposes of making the calculations required by this Section 4, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith
interpretations 
  

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 concerning the application of Sections 280G and 4999 of the Code. The Company and the Executive shall furnish to the
Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations
contemplated by this Section 4. 
  
 5. Non-Solicitation. In
consideration for the mutual agreements as set forth herein, Executive agrees that Executive shall not, at any time, within twelve (12) months following termination of Executive’s employment with the Company for any reason, directly or
indirectly solicit the employment or other services of any individual who at that time shall be or within the prior twelve (12) months shall have been an employee of the Company. 
  
 6. Definition of Terms. The following terms referred to in this Agreement shall have the following meanings:

  
 (a) Base Compensation. “Base Compensation”
shall mean Executive’s monthly base salary for services performed based on the average base salary for the six (6) months prior to the Termination Date. 
  
 (b) Cause. “Cause,” unless otherwise defined in the Agreement evidencing a particular Option, means an Eligible Individual’s (i)
intentional failure to perform reasonably assigned duties, (ii) dishonesty or willful misconduct in the performance of duties, (iii) engaging in a transaction in connection with the performance of duties to the Company or any of its Subsidiaries
thereof which transaction is adverse to the interests of the Company or any of its Subsidiaries and which is engaged in for personal profit or (iv) willful violation of any law, rule or regulation in connection with the performance of duties (other
than traffic violations or similar offenses). 
  
 (c)
“Change of Control” means the occurrence of any of the following events: 
  
 (i) The acquisition by any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) (other than the Company or a person that directly or indirectly controls, is controlled by, or is
under common control with, the Company) of the “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting
power represented by the Company’s then outstanding voting securities; 
  
 (ii) A change in the composition of the Board of Directors of the Company occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent
Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the Board of Directors of the Company with the affirmative votes of at least a majority of the
Incumbent Directors at the time of such election or nomination (but shall not include an individual not otherwise an Incumbent Director whose election or nomination is in connection with an actual or threatened proxy contest relating to the election
of directors to the Company); 
  

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 (iii) A merger or consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least
fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the approval by the stockholders of the Company of a plan of
complete liquidation of the Company or of an agreement for the sale or disposition by the Company of all or substantially all the Company’s assets; 
  
 (iv) The sale of all or substantially all of the assets of the Company determined on a consolidated basis; or 
  
 (v) The complete liquidation or dissolution of the Company. 
  
 (d) Involuntary Termination. “Involuntary Termination”
shall mean: 
  
 (i) termination of Executive’s employment
by the Company for any reason other than Cause; 
  
 (ii) a
material reduction in Executive’s salary, other than any such reduction which is part of, and generally consistent with, a general reduction of officer salaries; 
  
 (iii) a material reduction by the Company in the kind or level of employee benefits (other than salary and bonus) to which
Executive is entitled immediately prior to such reduction with the result that Executive’s overall benefits package (other than salary and bonus) is substantially reduced (other than any such reduction applicable to officers of the Company
generally); 
  
 (iv) any material breach by the Company of any
material provision of this Agreement which continues uncured for 30 days following notice thereof; or 
  
 (v) a material reduction in Executive’s titles, duties, responsibilities or authority; 
  
 provided that none of the foregoing shall constitute Involuntary Termination to the extent Executive has agreed thereto.

  
 (e) Release of Claims. “Release of Claims”
shall mean a waiver by Executive, in a form satisfactory to the Company, of all employment related obligations of and claims and causes of action against the Company. 
  
 (f) Termination Date. “Termination Date” shall mean the date on which an event that would constitute
Involuntary Termination occurs, or the later of (i) the date on which a notice of termination is given, or (ii) the date (which shall not be more than thirty (30) days after the giving of such notice) specified in such notice. 
  

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 7. Confidentiality. Executive acknowledges that during the course of Executive’s employment,
Executive will have produced and/or have access to confidential information, records, notebooks, data, formula, specifications, trade secrets, customer lists and secret inventions, and processes of the Company and its affiliated companies.
Therefore, during or subsequent to Executive’s employment by the Company, Executive agrees to hold in confidence and not directly or indirectly to disclose or use or copy or make lists of any such information, except to the extent authorized by
the Company in writing. All records, files, drawings, documents, equipment, and the like, or copies thereof, relating to the Company’s business, or the business of an affiliated company, which Executive shall prepare, or use, or come into
contact with, shall be and remain the sole property of the Company, or of an affiliated company, and shall not be removed from the Company’s or the affiliated company’s premises without its written consent, and shall be promptly returned
to the Company upon termination of employment with the Company. 
  
 8. Successors. 
  
 (a) Company’s
Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the
obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all
purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement pursuant to this subsection (a) or which becomes bound by the
terms of this Agreement by operation of law. 
  
 (b)
Executive’s Successors. The terms of this Agreement and all rights of the Executive hereunder shall inure to the benefit of, and be enforceable by, the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. 
  
 9.
Notice. 
  
 (a) General. Notices and all other
communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of
the Executive, mailed notices shall be addressed to Executive at the home address that Executive most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and
all notices shall be directed to the attention of its CEO. 
  
 (b) Notice of Termination. Any termination by the Company for Cause or by the Executive as a result of a voluntary resignation or an Involuntary Termination shall be 
  

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 communicated by a notice of termination to the other party hereto given in accordance with Section 9(a) of this
Agreement. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and
shall specify the termination date (which shall be not more than 30 days after the giving of such notice). The failure by the Executive to include in the notice any fact or circumstance which contributes to a showing of Involuntary Termination shall
not waive any right of the Executive hereunder or preclude the Executive from asserting such fact or circumstance in enforcing Executive’s rights hereunder. 
  
 10. Miscellaneous Provisions. 
  
 (a) No Duty to Mitigate. The Executive shall not be required to mitigate the amount of any payment contemplated by
this Agreement, nor shall any such payment be reduced by any earnings that the Executive may receive from any other source. 
  
 (b) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in
writing and signed by the Executive and by an authorized officer of the Company (other than the Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be
considered a waiver of any other condition or provision or of the same condition or provision at another time. 
  
 (c) Whole Agreement. No agreements, representations or understandings (whether oral or written and whether express or implied) which are not
expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof. 
  
 (d) Severance Provisions in Other Agreements. The Executive acknowledges and agrees that the severance provisions set forth in this Agreement
shall supersede any such provisions in any employment agreement entered into between the Executive and the Company. 
  
 (e) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of
California. 
  
 (f) Severability. The invalidity or
unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
  
 (g) No Assignment of Benefits. The rights of any person to payments
or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s
process, and any action in violation of this subsection shall be void. 
  
 (h) Employment Taxes. All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes. 
  

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 (i) Assignment by Company. The Company may assign its rights under this Agreement to an
affiliate, and an affiliate may assign its rights under this Agreement to another affiliate of the Company or to the Company; provided, however, that no assignment shall be made if the net worth of the assignee is less than the net worth of the
Company at the time of assignment. In the case of any such assignment, the term “Company” when used in a section of this Agreement shall mean the corporation that actually employs the Executive. 
  
 (j) Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year
first above written. 
  

					
	 COMPANY:
	 	 COST PLUS, INC.

			
	 	 	 By
	 	 /s/ Murray Dashe

	 	 	 Title
	 	 CEO

			
	 Executive:
	 	 	 	 /s/ Theresa Strickland

	 	 	 	 	 THERESA STRICKLAND

  

 -7-Form of Registration Rights Agreement

 EXHIBIT 10.10 
  
 REGISTRATION RIGHTS AGREEMENT 
  

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) dated as of June
            , 2004, and effective as of the Effective Date as defined below, is among QC Holdings, Inc., a Kansas corporation (the “Company”), Don Early (“Early”) and
Gregory L. Smith (“Smith”), and is consented to by each of the other stockholders of the Company listed on the consent pages hereto. 
  
 RECITALS 
  
 1. The Company, Early, Smith and all other stockholders of the Company have entered into a Stockholders Agreement dated as of October 16, 1999, as amended
by a letter agreement dated January 19, 2000 and a Second Amendment to Stockholders Agreement dated as of January 1, 2003 (as so supplemented and amended, the “Stockholders Agreement”). 
  
 2. In accordance with Section 13 of the Stockholders Agreement, the
Stockholders Agreement terminates upon an Initial Public Offering, as defined in the Stockholders Agreement. 
  
 3. The Company contemplates an initial public offering of its Common Stock in summer 2004, and in contemplation thereof has filed its Registration
Statement on Form S-1 with the Securities and Exchange Commission, Registration No. 333-115297 (the “Registration Statement”), which proposed initial public offering, upon consummation, will constitute the Initial Public Offering as
defined in the Stockholders Agreement (the “Initial Public Offering”). 
  
 4. The Company, Early and Smith desire to amend certain provisions of the Stockholders Agreement effective upon the earlier of (i) June 30, 2004, and (ii) the closing of the Initial Public Offering of Common Stock by
the Company pursuant to the Registration Statement (the “Effective Date”). 
  
 5. In consideration of the agreement of Early to cancel the life insurance and stock redemption provisions of the Stockholders Agreement described below and in order to provide for the orderly sale of Common Stock by
the estate of Early upon his death, the Company is granting to the Holders described herein certain demand registration rights, which will be exercisable only upon the death of Early. 
  
 6. Smith and the other stockholders party to the Stockholders Agreement are consenting to the amendments to the Stockholders
Agreement effected by this Agreement, but are not otherwise to be considered a party to this Agreement with respect to the registration rights provisions herein. 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 1. Termination of Life Insurance Provisions. Effective as of the Effective Date, Article 6 of the Stockholders Agreement, as amended and restated by the Second Amendment to Stockholders Agreement, is deleted in
its entirety. Effective as of the Effective Date, (i) the Company shall have no obligation to carry life insurance on the life of Early or Smith and no obligation to repurchase or redeem any shares of Common Stock from the estate of Early or Smith
on their death by virtue of any provision of the Stockholders Agreement or otherwise, and (ii) Early and Smith, for themselves and their respective heirs, estates and assigns, shall have no obligation to sell any shares of Common Stock to the
Company upon their death. Early and Smith acknowledge that the life insurance policies held by the Company are and will remain the sole and exclusive property of the Company and that the Company may maintain those policies as “key man”
policies or cancel those policies at any time in the Company’s sole discretion. 
  
 Registration Rights Agreement 
 June     , 2004 
  

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 2. Termination of Stockholders Agreement. In accordance with Section 13 of the Stockholders
Agreement, Early, Smith and the other stockholders of the Company acknowledge that the Stockholders Agreement will terminate in accordance with its terms on the closing of the Initial Public Offering pursuant to the Registration Statement.

  
 3. Definitions; Certain Rules of Construction.
Certain capitalized terms are used in this Agreement with the specific meanings defined below in this Section 3. Except as otherwise explicitly specified to the contrary or unless the context clearly requires otherwise, (a) the capitalized
term “Section” refers to sections of this Agreement, (b) references to a particular Section include all subsections thereof, (c) the word “including” shall be construed as “including without limitation”, (d) references
to a particular statute or regulation include all rules and regulations thereunder and any successor statute, regulation or rules, in each case as from time to time in effect, (e) words in the singular or plural form include the plural and singular
form, respectively, and (f) references to a particular Person include such Person’s successors and assigns to the extent not prohibited by this Agreement. 
  

“1933 Act” means the Securities Act of 1933, as amended and all regulations thereunder. 
  
 “1934 Act” means the Securities Exchange Act of 1934, as
amended and all regulations thereunder. 
  
 “Board of
Directors” means the Board of Directors of the Company. 
  
 “Common Stock” means the common stock, $.01 par value per share, of the Company. 
  
 “Company” is defined in the recitals to this Agreement. 
  
 “Company Indemnitees” is defined in Section 9(b). 
  
 “Effective Date” is defined in the recitals to this
Agreement. 
  
 “Holder” means the estate of Don
Early, any trust, testamentary or otherwise, that is funded in whole or in part with shares of Common Stock from the estate of Don Early, and any Person or any such trust who at any time during the Registration Period becomes a record holder of
Common Stock by distribution from the estate of Don Early or any such trust. 
  
 “Holder Indemnitees” is defined in Section 9(a). 
  
 “Indemnitees” is defined in Section 9(c). 
  

“Person” means the estate of Don Early and any present or future natural person or any corporation, association, partnership, joint
venture, limited liability, joint stock or other company, business trust, trust, organization, business or government or any governmental agency or political subdivision thereof. 
  
 “register”, “registered” and “registration” refer to a registration
effected by preparing and filing a registration statement or similar document in compliance with the 1933 Act and the automatic effectiveness, or the declaration or ordering of effectiveness, of such registration statement or document. 

 
 “Registrable Securities” means (i) shares of Common Stock
held by a Holder during any part of the Registration Period; (ii) any Common Stock of the Company or other securities issued or issuable in 
  
 Registration Rights Agreement 
 June
    , 2004 
  

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respect of shares of Common Stock of the Company after the date hereof and held by Early or any trust created by Early prior to his death, as a result of any
corporate reorganization; and (iii) shares of the Company’s Common Stock or other securities issued or issuable in respect of the shares described in clause (i) or (ii) upon any stock split, stock dividend, recapitalization, or similar event;
provided, however, that any share of Common Stock previously sold to the public pursuant to a registered public offering or pursuant to an exemption from the registration requirements of the 1933 Act shall not be a Registrable
Security. 
  
 “Registration Period” is defined in
Section 4(a). 
  
 “SEC” means the
Securities and Exchange Commission. 
  
 “Violation” means, with respect to any registration statement which includes any Registrable Securities: 
  
 (a) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any
preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; 
  
 (b) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading; or 
  
 (c) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any state securities law or any rule or regulation
promulgated under the 1933 Act, the 1934 Act or any state securities law in connection with any matter relating to such registration statement. 
  
 4. Registration Rights; Registration on Form S-3. 
  
 (a) After consummation of its Initial Public Offering and at any time after the date of death of Early and prior to the second anniversary of the death of
Early (the “Registration Period”), the Company shall use its best efforts to qualify for registration on Form S-3 (or any successors thereto) any Registrable Securities that a Holder or Holders (the “Initiating Holders”) request
in writing (a “Holder Request”) be registered in accordance with this Section 4(a). If the Company receives from any Holder or Holders of Registrable Securities then outstanding: (i) a written request or requests that the Company
effect a registration on Form S-3; and (ii) any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company will give prompt written notice to all other Holders known
to the Company of such registration request and other relevant information with respect to such proposed registration and such other Holders shall have the right, by giving written notice to the Company within 30 days from receipt of the
Company’s notice, to elect to have included in such registration such of their Registrable Securities as such Holders may request in their notice. 
  
 (b) The Company will file within 60 days of receipt of a Holder Request a registration statement under the 1933 Act registering the requested sale of the
Registrable Securities and thereafter use its best efforts to have the registration statement declared effective (including, without limitation, filing post-effective amendments, appropriate qualifications under applicable blue sky or other state
securities laws, and appropriate compliance with the 1933 Act) provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 4: 
  
 Registration Rights Agreement 
 June     , 2004 
  

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 (i) if Form S-3 is not available for such offering by the Holders, unless such Form is
unavailable due to the Company’s failure to make a 1934 Act filing timely, in which case the Company shall effect the registration on Form S-1; 
  
 (ii) if the Holders propose to sell Registrable Securities at an aggregate offering price to the public of less than $15,000,000;

  
 (iii) if the Company furnishes to the Holders
a certificate signed by the Chief Executive Officer or the President of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such Form
S-3 registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than 90 days after receipt of the request of the Holder or Holders
under this Section 4; provided, however, that the Company shall not utilize this right more than once in any 12-month period; 
  
 (iv) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to
service of process in effecting such registration, qualification or compliance; or 
  
 (v) during the period ending 180 days after the effective date of a registration statement subject to this Section 4. 

 
 (c) If the Initiating Holder intends to distribute the Registrable
Securities covered by their request by means of an underwriting, they shall so advise the Company as part of their request made pursuant to this Section 4 and the Company shall include such information in the written notice provided to the
other Holders. In such event, the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable
Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such other Holders requesting registration of Registrable Securities) to the extent provided herein. All Holders proposing to
distribute their securities through such underwriting shall (together with the Company as provided in Section 5(d)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by
the Holders and approved by a majority of the Board of Directors, which approval shall not be unreasonably withheld. The Board of Directors of the Company will have no obligation to approve any underwriter for a registration under this Section
4 that is not acceptable to the Board of Directors in its reasonable judgment or that is of a lesser national standing, in the reasonable judgment of the Board, than the senior managing underwriter for the Company’s most recent underwritten
public offering of its Common Stock. Notwithstanding any other provision of this Section 4, if, in a registration requested pursuant to Section 4(a), the underwriter advises the Holders in writing that marketing factors require a
limitation of the number of shares to be underwritten, then the Holders shall so advise the Company and all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto. To the extent that limitation is required, the number
of Registrable Securities that may be included in the underwriting shall be allocated pro rata among all Holders thereof desiring to participate in such underwriting (according to the number of Registrable Securities then held by each such Holder).
No Registrable Securities requested by any Holder to be included in a registration pursuant to Section 4(a) shall be excluded from the underwriting unless all securities, if any, other than Registrable Securities are first excluded.

  
 (d) The Holders shall be entitled to three (3) registrations
pursuant to this Section 4, counting for this purpose registrations that are declared effective and registrations that are withdrawn by the Holders. 
  
 Registration Rights Agreement 
 June
    , 2004 
  

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 5. Obligations of the Company. Whenever required under Section 4 to use best efforts to
effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible, prepare and file with the SEC a registration statement with respect to such Registrable Securities and use best efforts to cause such
registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities to be registered thereunder, keep such registration statement effective for up to 120 days or until such earlier date as the
Holders have informed the Company in writing that the distribution of their Registrable Securities has been completed. In addition, the Company shall: 
  
 (a) prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection
with such registration statement, and use best efforts to cause each such amendment and supplement to become effective, as may be necessary to comply with the provisions of the 1933 Act with respect to the disposition of all securities covered by
such registration statement; 
  
 (b) furnish to
the Holders such reasonable number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the 1933 Act, and such other documents as they may reasonably request in order to facilitate the disposition of
Registrable Securities owned by them; 
  
 (c) use
best efforts to register or qualify the securities covered by such registration statement under such other securities or blue sky laws of such states and jurisdictions as shall be reasonably requested by the Holders, except that the Company shall
not be required in connection therewith or as a condition thereto to qualify to do business or file a general consent to service of process in any such state or jurisdiction; 
  
 (d) in the event of any underwritten public offering, enter into and perform its obligations under an
underwriting agreement, in usual and customary form, with the managing underwriter of such offering; provided, however, that each Holder participating in such underwriting shall also enter into and perform its obligations under such an
underwriting agreement, including furnishing any opinion of counsel or entering into a lock-up agreement reasonably requested by the managing underwriter; 
  
 (e) in the event of any underwritten public offering, use its best efforts to cause its directors and executive officers to enter into any
lock-up agreement required by the underwriter and entered into by the registering Holders in accordance with Section 10; 
  
 (f) notify each Holder of Registrable Securities covered by such registration statement, at any time when a prospectus relating thereto
covered by such registration statement is required to be delivered under the 1933 Act, of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing and promptly file such amendments and supplements which may be
required pursuant to Section 5(a) on account of such event and use best efforts to cause each such amendment and supplement to become effective; 
  
 (g) furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to Section 4, on the date that
such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to Section 4, if such securities are 
  
 Registration Rights Agreement 
 June
    , 2004 
  

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being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to
such securities becomes effective, (i) an opinion or opinions, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given by company counsel to the underwriters in an
underwritten public offering, addressed to the underwriters, and (ii) a letter dated such date, from the independent certified public accountant of the Company, in form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering, addressed to the underwriters; and 
  
 (h) apply for listing and use best efforts to list the Registrable Securities being registered on any national securities exchange on
which a class of the Company’s equity securities is listed or, if the Company does not have a class of equity securities listed on a national securities exchange, apply for qualification and use best efforts to qualify the Registrable
Securities being registered for inclusion on the automated quotation system of the Nasdaq. 
  
 6. Certain Obligations of Holders. 
  
 (a) Each Holder agrees that, upon receipt of any written request from the Company notifying such Holder of the happening of any event requiring the preparation of a supplement or amendment to the registration
statement so that the amended or supplemented prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and
requesting that such Holder discontinue disposition of Registrable Securities pursuant to the registration statement, each Holder will immediately discontinue dispositions of Registrable Securities pursuant to the registration statement until its
receipt of copies of the supplemented or amended effective prospectus from the Company and, if so directed by the Company, each Holder shall deliver to the Company all copies, other than permanent file copies then in such Holders possession, of the
prospectus covering such Registrable Securities current at the time of receipt of such notice. 
  
 (b) As a condition to the inclusion of its Registrable Securities, each Holder shall furnish to the Company such information regarding such Holder and the intended method of distribution of such securities as the
Company may from time to time request or as shall be required in connection with any registration, qualification or compliance referred to in this Agreement. Each such Holder promptly shall furnish to the Company all information required to be
disclosed in order to make the information previously furnished to the Company not materially misleading. 
  
 (c) Each Holder hereby covenants with the Company not to make any sale of the Registrable Securities without effectively causing the prospectus delivery
requirements under the 1933 Act to be satisfied. 
  
 (d) Each
Holder shall, if requested by the Company, acknowledge in writing that it has been hereby advised that the anti-manipulation provisions of Regulation M under the 1934 Act may apply to sales of the Registrable Securities offered pursuant to the
registration statement, and agrees not to take any action with respect to any distribution deemed to be made pursuant to such registration statement, that constitutes a violation of Regulation M under the 1934 Act or any other applicable rule,
regulation or law. 
  
 (e) At the end of the registration period,
the Holders of Registrable Securities included in the registration statement shall discontinue sales of shares pursuant to such registration statement upon receipt of notice from the Company of its intention to remove from registration the shares
covered thereby which remain unsold, and such Holders shall immediately notify the Company of the number of shares registered which remain unsold upon receipt of such notice from the Company. 
  
 Registration Rights Agreement 
 June     , 2004 
  

 -6- 

 7. Expenses of Registration. The Company shall bear all expenses relating to Registrable
Securities incurred in connection with each registration, filing or qualification pursuant to this Agreement, including all registration, filing and qualification fees, printing and accounting fees, fees and disbursements of counsel for the Company.
All underwriting discounts and commissions relating to Registrable Securities included in any registration effected pursuant to this Agreement and the fees and disbursements of counsel for the selling Holders will be borne and paid ratably by the
Holders of such Registrable Securities. 
  
 8. Underwriting
Requirements. Except as set forth in Section 4(c), the Initiating Holders shall not be required under Section 4 to include any of the other Holders’ securities in such underwriting unless such Holders accept the terms of the
underwriting as agreed upon between the Company and the underwriters selected by the Initiating Holders and approved by the Company, and then only in such quantity, if any, as will not, in the opinion of the underwriters, jeopardize the success of
the offering by the Company. If the managing underwriter for the offering advises the Company in writing that the total amount of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the
amount of securities to be sold that can be successfully offered, then the Company shall be required to include in the offering only that number of Registrable Securities that the managing underwriter believes will not jeopardize the success of the
offering. If the number of securities to be included in the offering is required to be reduced, then the number of shares held by Holders that may be included in the underwriting shall be reduced pro rata among the selling Holders in accordance with
the number of shares of Registrable Securities held by each such Holder. 
  
 9. Indemnification. If any Registrable Securities are included in a registration statement under this Agreement: 
  
 (a) The Company will indemnify and hold harmless each Holder, any underwriter (as defined in the 1933 Act) for such Holder and each
Person, if any, who controls such Holder or underwriter within the meaning of the 1933 Act or the 1934 Act (collectively, the “Holder Indemnitees”), against any losses, claims, damages or liabilities (joint or several) to which they
may become subject under the 1933 Act, the 1934 Act or any other federal or state law, insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of or are based upon any Violation. The Company
will reimburse each Holder Indemnitee for any legal or other expenses reasonably incurred by such Holder Indemnitee in connection with investigating or defending any such loss, claim, damage, liability or action. The indemnity agreement contained in
this Section 9 shall not apply to amounts paid in settlement of any loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable to any Holder Indemnitee in any such case for any such loss, claim, damage, liability, action or proceeding (i) to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with
written information furnished expressly for use in connection with such registration by or on behalf of such Holder Indemnitee or supplied by another Holder; or (ii) in the case of a sale directly by a Holder of Registrable Securities (including a
sale of such Registrable Securities through any underwriter retained by such Holder engaging in a distribution solely on behalf of such Holder), such untrue statement or alleged untrue statement or omission or alleged omission was contained in a
preliminary prospectus and corrected in a final or amended prospectus, and such Holder failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the Person asserting any
such loss, claim, damage or liability in any case in which such delivery is required by the 1933 Act. 
  
 Registration Rights Agreement 
 June     , 2004 
  

 -7- 

 (b) Each Holder that includes any Registrable Securities in any registration statement
(i) will indemnify and hold harmless the Company, each of its directors, each of its officers who have signed the registration statement, each Person, if any, who controls the Company within the meaning of the 1933 Act or the 1934 Act, each agent
and any underwriter for the Company, and any other Holder or other stockholder selling securities in such registration statement or any of its directors, officers, partners, agents or employees or any Person who controls such Holder or such other
stockholder or such underwriter (collectively, the “Company Indemnitees”), against any losses, claims, damages or liabilities (joint or several) to which any Company Indemnitee may become subject under the 1933 Act, the 1934 Act or
other federal or state law, insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereto) arise out of or are based upon (a) any Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information furnished by or on behalf of such Holder expressly for use in connection with such registration or (b) any breach by the Holders of its obligations under Section 6;
and (ii) will reimburse any legal or other expenses reasonably incurred by any Company Indemnitee in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the liability of
any Holder hereunder shall be limited to the amount of net proceeds (after deduction of all underwriters’ discounts and commissions paid by such Holder in connection with the registration in question) received by such Holder in the offering
giving rise to the Violation; and provided, further, that the indemnity agreement contained in this Section 9 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement
is effected without the consent of such Holder (which consent shall not be unreasonably withheld) nor, in the case of a sale directly by the Company of its securities (including a sale of such securities through any underwriter retained by the
Company to engage in a distribution solely on behalf of the Company), shall such Holder be liable to the Company in any case in which such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary
prospectus and corrected in a final or amended prospectus, and the Company failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the securities to the Person asserting any such loss, claim, damage
or liability in any case in which such delivery is required by the 1933 Act. 
  
 (c) Promptly after receipt by any Company Indemnitee or Holder Indemnitee (collectively, the “Indemnitees”) under this Section 9 of notice of the commencement of any action (including any
governmental action), such Indemnitee will, if a claim in respect thereof is to be made against any indemnifying party under this Section 9, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying
party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume and control the defense thereof with counsel mutually satisfactory to the
parties; provided, however, that such Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such Indemnitee by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing interests, as reasonably determined by either party, between such Indemnitee and any other party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the Indemnitee under this
Section 9 to the extent of such prejudice, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to such Indemnitee otherwise than under this Section 9.

  
 Registration Rights Agreement 
 June     , 2004 
  

 -8- 

 (d) The obligations of the Company and the Holders under this Section 9 shall
survive the completion of any offering of Registrable Securities in a registration statement under this Agreement. 
  
 (e) If the indemnification provided for in this Section 9 is unavailable to a party that would have been an Indemnitee under this
Section 9 in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to herein, then each party that would have been an indemnifying party hereunder shall, in lieu of indemnifying such
Indemnitee, contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative
fault of such indemnifying party, on the one hand, and such Indemnitee, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions or proceedings in respect thereof).
The relative fault shall be determined by reference to, among other things, whether the Violation relates to information supplied by such indemnifying party or such Indemnitee and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such Violation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by pro rata allocation or by any other method of allocation which does
not take account of the equitable considerations referred to in the preceding sentence. The amount paid or payable by a contributing party as a result of the losses, claims, damages or liabilities (or actions or proceedings in respect thereof)
referred to above in this Section 9(e) shall include any legal or other expenses reasonably incurred by such Indemnitee in connection with investigating or defending any such action or claim. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The liability of any Holder of Registrable Securities in respect of any contribution
obligation of such Holder (after deduction of all underwriters’ discounts and commissions paid by such Holder in connection with the registration in question) arising under this Section 9(e) shall not in any event exceed an amount equal
to the net proceeds to such Holder from the disposition of the Registrable Securities disposed of by such Holder pursuant to such registration. 
  
 10. Lock-up Agreements. If reasonably requested by the Company or the Initiating Holders and the managing underwriter, the Holders that include any
Registrable Securities in any registration statement agree to enter into lock-up agreements pursuant to which they will not, for a period of no longer than 180 days following the effective date of a registration statement for a public offering of
the Company’s securities, offer, sell or otherwise dispose of any Registrable Securities (except Registrable Securities sold pursuant to such registration statement) without the prior consent of the Company and the underwriter. 
  
 11. No Delay. The Holders shall have no right to take any action to
restrain, enjoin or otherwise delay any registration pursuant to this Agreement as a result of any dispute, controversy or other matter that may arise with respect to the interpretation or implementation of this Agreement. 
  
 12. Termination. The right of any Holder to request registration or
inclusion in any registration pursuant to this Agreement shall terminate on the last day of the Registration Period. 
  
 13. Specific Performance. The Company and the Holders recognize that their respective rights under this Agreement are unique, and, accordingly,
each party shall, in addition to such other remedies as may be available to it at law or in equity, have the right to enforce its rights hereunder by actions for injunctive relief and specific performance to the extent permitted by law. 

 
 Registration Rights Agreement 
 June     , 2004 
  

 -9- 

 14. Notices. Any notices or other communications required or permitted hereunder shall be
sufficiently given if in writing and delivered in person, transmitted by facsimile transmission (fax) or sent by registered or certified mail (return receipt requested) or recognized overnight delivery service, postage pre-paid, addressed as
follows, or to such other address has such party may notify to the other parties in writing: 
  
 a. if to the Company: 
  
 QC Holdings, Inc. 
 2812 West 47th Avenue 
 Kansas City, Kansas 66103 
 Attn: President 
 Telephone: (913) 439-1100 
 Facsimile No.: (913) 439-1170 
  
 with a copy to: 
  
 Gilmore & Bell, P.C. 
 2405 Grand Boulevard, Suite 1100 
 Kansas City, Missouri 64108 
 Attn.: Richard M. Wright, Jr., Esq. 
 Telephone: 816-221-1000 
 Facsimile No.: 816-221-1018 
  
 b. If to any Holder, to the address or facsimile number for that Holder set
forth in the stock record books of the Company. 
  
 A notice or
communication will be effective (i) if delivered in person or by overnight courier, on the business day it is delivered, (ii) if transmitted by facsimile transmission, on the business day of actual confirmed receipt by the addressee thereof, and
(iii) if sent by registered or certified mail, three (3) business days after dispatch. 
  
 15. Binding Effect; Assignment. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, successors and permitted assigns;
provided, however, that the Holders shall not have the right to assign their rights and obligations hereunder to any Person who is not itself a Holder without the prior written consent of the Company. 
  
 16. Amendments; Waivers; Beneficiaries. Prior to the Effective Date,
this Agreement may be amended, and any provision of this Agreement may be waived only by a writing signed by all parties hereto, consisting of the Company, Early, Smith and the other stockholders of the Company listed on the Consent Page hereto.
From and after the Effective Date and prior to the first day of the Registration Period, the only parties to this Agreement shall be deemed to be the Company and Early, and this Agreement may be amended and any provision of this Agreement may be
waived in a writing signed by the Company and Early. Prior to the first day of the Registration Period, no current or future Holder will have any rights or privileges under this Agreement, and this Agreement may be amended by Early in accordance
with this Section 16 without the consent of any Holder. No Holder is an intended third party beneficiary of this Agreement until the first day of the Registration Period. From and after the first day of the Registration Period, this Agreement
may be amended and any provision of this Agreement may be waived only by a writing signed by the Company and the Holders owning a majority of the then outstanding Registrable Securities. Any amendment or waiver in accordance with the preceding
sentence shall be binding upon all then current or future Holders without regard to any actual notice on their part of 
  
 Registration Rights Agreement 
 June
    , 2004 
  

 -10- 

 
the substance of such amendment or waiver. For purposes of determining the outstanding Registrable Securities held by the Holders, the Company shall be
entitled to rely conclusively upon the stock record books of the Company and a written certification of the executor of the estate of Early of the names and addresses of the persons who are within the definition of “Holder” and are
reflected as owning shares of Common Stock on the stock record books of the Company. 
  
 17. Miscellaneous. If any provision of this Agreement is found by any court of competent jurisdiction to be invalid or unenforceable, the parties hereby waive such provision to the extent that it is found to be
invalid or unenforceable. Such provision shall, to the maximum extent allowable by law, be modified by such court so that it becomes enforceable, and, as modified, shall be enforced as any other provision hereof, all the other provisions hereof
continuing in full force and effect. The headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation hereof. This Agreement constitutes the entire understanding of the parties
with respect to the subject matter hereof and supersedes any and all prior understandings and agreements, whether written or oral, with respect to such subject matter. This Agreement may be executed in counterparts, which together shall constitute
one and the same instrument. This Agreement shall be governed by and construed in accordance with the laws (other than the conflict of laws rules) of the State of Kansas. 
  
 Registration Rights Agreement 
 June     , 2004 
  

 -11- 

 IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be executed
effective as of the Effective Date. 
  

			
	QC HOLDINGS, INC.
		
	By:	 	 
	 	 	Darrin J. Andersen, President
	
	 
	DON EARLY
	
	 
	GREGORY L. SMITH

  
 Registration Rights
Agreement 
 June     , 2004 
  
  
  

 -12- 

 CONSENT 
  
 The following stockholders of QC Holdings, Inc. consent to the foregoing Registration Rights Agreement: 
  

							
	 	  	DARIN SCOTT SMITH IRREVOCABLE TRUST,
	MARY LOU ANDERSEN	  	dated February 7, 2000
			
	JR SEWARD REVOCABLE TRUST U/A DTD 11/05/97	  	By:	  	 
	 	  	 	  	Name:	  	Darin Scott Smith, as Co-Trustee
			
	 By:
	  	 	  	KENTON TODD SMITH IRREVOCABLE TRUST,
	 	  	James R. Seward, Trustee	  	dated February 7, 2000
			
	 	  	By:	  	 
	DARRIN J. ANDERSEN	  	Name:	  	Darin Scott Smith, as Co-Trustee
		
	 	  	TAMARA LYNNE SMITH DANIELS IRREVOCABLE TRUST,
	RICHARD M. WRIGHT, JR.	  	dated February 7, 2000
			
	 	  	By:	  	 
	R. BRIAN ELVIN	  	Name:	  	Darin Scott Smith, as Co-Trustee
		
	 	  	SMITH-FRIES EDUCATION TRUST,
	CATHY S. THARP	  	dated February 7, 2000
			
	 	  	By:	  	 
	 	  	Name:	  	Darin Scott Smith, as Co-Trustee

  
 Registration Rights Agreement

 June     , 2004 
  

 -13-

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