Document:

Exhibit 10.5(b)

 

ADVANCE AMERICA, CASH ADVANCE CENTERS, INC.

2004 OMNIBUS STOCK PLAN

RESTRICTED STOCK AGREEMENT

 

This RESTRICTED STOCK
AGREEMENT (this “Restricted Stock Agreement”) is made and entered into
as of [DATE] (the “Date of Grant”), by and between Advance America, Cash
Advance Centers, Inc., a Delaware corporation (the “Company”) and
[EMPLOYEE] (the “Recipient”).

 

WHEREAS, the Board of Directors of the Company (the “Board”) has
approved the grant of Restricted Stock pursuant to the Advance America, Cash
Advance Centers, Inc. 2004 Omnibus Stock Plan (the “Plan”), as
hereinafter defined, to the Recipient as set forth below;

 

NOW, THEREFORE, in consideration of the covenants and agreements herein
contained, and intending to be legally bound hereby, the parties agree as
follows:

 

1.          Definitions.  Capitalized terms which are not defined
herein shall have the meaning set forth in the Plan.

2.          Grant
of Restricted Stock.  The Company
hereby grants to the Recipient [NUMBER] restricted shares of the Class A common
stock of the Company, par value $.01 per share (the “Restricted Stock”),
subject to all of the terms and conditions of this Restricted Stock
Agreement.  The Recipient’s grant and
record of share ownership shall be kept on the books of the Company, until the
restrictions on transfer have lapsed pursuant to Section 3 below.  Shares that have become vested pursuant to
Section 3 below may be evidenced by stock certificates, at the request of the
Recipient, which certificates shall be registered in the name of the Recipient
and delivered to Recipient within five (5) days of such request.

3.          Lapse
of Restrictions.  All Restricted
Stock shall be unvested unless and until they become Vested Shares in
accordance with this Section 3.  If the
Participant is employed by the Company or any Subsidiary as of the applicable
anniversary date set forth below, the Restricted Stock shall become “Vested
Shares” according to the percentage set forth opposite such date:

	
  Date

  	
   

  	
  Cumulative
  Percentage Vested

  	
   

  
	
  [First anniversary of the Date of Grant]

  	
   

  	
  [33
  1/3%]1

  	
   

  	
   

  
	
  [Second anniversary of the Date of Grant]

  	
   

  	
  [33
  1/3%]%

  	
   

  
	
  [Third anniversary of the Date of Grant]

  	
   

  	
  [33
  1/3%]%

  	
   

  
					

1              [Dates
and vesting percentages determined by the Committee at the time of Grant.]

 

 

 

4.          Restrictions on Transfer.  Shares of Restricted Stock
may not be transferred or otherwise disposed of by the Recipient prior to
become Vested Shares, including by way of sale, assignment, transfer, pledge or
otherwise except by will or the laws of descent and distribution.

5.          Rights
as a Stockholder.  The Company shall
hold in escrow all dividends, if any, that are paid with respect to the shares
of Restricted Stock until all restrictions on such shares have lapsed.  Recipient agrees that the right to vote any
shares for which the restrictions on transfer set forth in Section 3 hereof
have not yet lapsed (the “Unvested Shares”) will be held by the Company
and, accordingly, shall execute an irrevocable proxy in favor of the Company
for all shares of Restricted Stock in the form supplied by the Company.

6.          Notices.  Any notice required or permitted under this
Restricted Stock Agreement shall be deemed given when delivered personally, or
when deposited in a United States Post Office, postage prepaid, addressed, as
appropriate, to the Recipient either at the Recipient’s address as last known
by the Company or such other address as the Recipient may designate in writing
to the Company.

7.          Securities
Laws Requirements.  The Company
shall not be obligated to transfer any shares of Company common stock from the
Recipient to another party, if such transfer, in the opinion of counsel for the
Company, would violate the Securities Act of 1933, as amended from time to time
(or any other federal or state statutes having similar requirements as may be
in effect at that time).  Further, the
Company may require as a condition of transfer of any shares to the Recipient
that the Recipient furnish a written representation that he or she is holding
the shares for investment and not with a view to resale or distribution to the
public.

8.          Protections
Against Violations of Restricted Stock Agreement.  No purported sale, assignment, mortgage, hypothecation, transfer,
pledge, encumbrance, gift, transfer in trust (voting or other) or other
disposition of, or creation of a security interest in or lien on, any of the
shares of Restricted Stock by any holder thereof in violation of the provisions
of this Restricted Stock Agreement or the Certificate of Incorporation or the
By-Laws of the Company, shall be valid, and the Company will not transfer any
of said shares of Restricted Stock on its books nor will any of said shares of
Restricted Stock be entitled to vote, nor will any dividends be paid thereon,
unless and until there has been full compliance with said provisions to the
satisfaction of the Company.  The
foregoing restrictions are in addition to and not in lieu of any other
remedies, legal or equitable, available to enforce said provisions.

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9.          Taxes.  The Recipient understands that he or she
(and not the Company) shall be responsible for any tax obligation that may
arise as a result of the transactions contemplated by this Restricted Stock
Agreement and shall pay to the Company the amount determined by the Company to
be such tax obligation at the time such tax obligation arises.  If the Recipient fails to make such payment,
the number of shares necessary to satisfy the tax obligations shall be
forfeited.  The Recipient shall promptly
notify the Company of any election made pursuant to Section 83(b) of the
Internal Revenue Code of 1986, as amended from time to time (the “Code”).

 

THE RECIPIENT ACKNOWLEDGES THAT IT IS THE RECIPIENT’S SOLE
RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION
83(b) OF THE CODE, IN THE EVENT THAT THE RECIPIENT DESIRES TO MAKE THE
ELECTION.

 

10.        Legend.  The Company’s Secretary shall, or shall
instruct the Company’s transfer agent to, provide stop transfer instructions in
the Company’s stock records to prevent any transfer of the Restricted Stock for
any purpose until the stock is vested. 
Any certificate that the Secretary or the transfer agent deems necessary
to issue to represent shares of Restricted Stock shall, until all restrictions
lapse and new certificates are issued, bear the following legend:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING REQUIREMENTS AND MAY BE
SUBJECT TO REACQUISITION BY THE COMPANY UNDER THE TERMS OF THAT CERTAIN
RESTRICTED STOCK AGREEMENT BY AND BETWEEN ADVANCE AMERICA, CASH ADVANCE
CENTERS, INC. (THE “COMPANY”) AND THE HOLDER OF THE SECURITIES.  PRIOR TO VESTING OF OWNERSHIP IN THE
SECURITIES, THEY MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY
CIRCUMSTANCES.  COPIES OF THE ABOVE
REFERENCED AGREEMENT ARE ON FILE AT THE OFFICES OF THE COMPANY, 135 NORTH
CHURCH STREET, SPARTANBURG, SOUTH CAROLINA, 29306.

 

11.        Failure
to Enforce Not a Waiver.  The
failure of the Company to enforce at any time any provision of this Restricted
Stock Agreement shall in no way

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be
construed to be a waiver of such provision or of any other provision hereof.

12.        Governing
Law.  This Restricted Stock
Agreement shall be governed by and construed according to the laws of the State of Delaware without regard to its principles of conflict of laws.

13.        Amendments.  Except as otherwise provided in Section 16,
this Restricted Stock Agreement may be amended or modified at any time only by
an instrument in writing signed by each of the parties hereto.

14.        Survival
of Terms.  This Restricted Stock
Agreement shall apply to and bind the Recipient and the Company and their
respective permitted assignees and transferees, heirs, legatees, executors,
administrators and legal successors.

15.        Agreement
Not a Contract for Services. 
Neither the grant of Restricted Stock, this Restricted Stock Agreement
nor any other action taken pursuant to this Restricted Stock Agreement shall
constitute or be evidence of any agreement or understanding, express or
implied, that the Recipient has a right to continue to provide services as an
officer, director, employee or consultant of the Company for any period of time
or at any specific rate of compensation.

16.        Severability.  If a provision of this Restricted Stock
Agreement is held invalid by a court of competent jurisdiction, the remaining
provisions will nonetheless be enforceable according to their terms.  Further, if any provision is held to be over
broad as written, that provision shall be amended to narrow its application to
the extent necessary to make the provision enforceable according to applicable
law and enforced as amended.

17.        Plan.  The Restricted Stock is granted pursuant to
the Plan, and the Restricted Stock and this Restricted Stock Agreement are in
all respects governed by the Plan and subject to all of the terms and
provisions thereof, whether such terms and provisions are incorporated in this
Restricted Stock Agreement by reference or are expressly cited.

4

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Restricted Stock Agreement on
the day and year first above written.

 

 

 

 

	
   

  	
   

  
	
   

  	
  Advance America, Cash
  Advance Centers, Inc.

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME]:

  	
   

  
					

 

5

 

IRREVOCABLE
PROXY

 

I, the undersigned, hereby irrevocably authorize and empower __________
(the “Proxy”) to represent me with respect of any and all Unvested
Shares (as such term is defined in the Restricted Stock Agreement (the “Restricted
Stock Agreement”) by and between Advance America, Cash Advance Centers,
Inc. (the “Company”) and [          
], at any and all general meetings of the shareholders of the Company.

 

The Proxy is irrevocably authorized and empowered to receive, in my
stead, any and all notices of and invitations to the Company’s general
meetings, and to participate in all such general meetings; and the Proxy is
authorized and empowered to vote all such Unvested Shares in such manner as the
Proxy shall, in the Proxy’s sole discretion, deem to be in the best interests
of the Company.

 

This proxy shall remain in full force and effect until the shares of
Restricted Stock granted to me pursuant to the Restricted Stock Agreement have
vested in accordance with the terms of the Restricted Stock Agreement, unless
otherwise determined by the Company.

 

	
  NAME:

  	
   

  	
   

  
	
   

  
	
  DATE:

  	
   

  	
   

  

 

	
  SIGNATURE:

  	
   

  	
   

  

 

6Exhibit 10.11

 

FORM OF

INDEMNIFICATION AGREEMENT

 

This AGREEMENT (this “Agreement”), dated as of October
[   ], 2004, between Advance America,
Cash Advance Centers, Inc., a Delaware corporation (the “Company”), and
                                        
(“Indemnitee”).

 

WHEREAS, it is essential to the Company to retain and
attract as directors and officers the most capable persons available;

 

WHEREAS, Indemnitee is a director and/or officer(1) of
the Company;

 

WHEREAS, both the Company and Indemnitee recognize the
increased risk of litigation and other claims being asserted against directors
and officers of public companies in today’s environment;

 

WHEREAS, basic protection against undue risk of
personal liability of directors and officers heretofore has been provided
through insurance coverage providing reasonable protection at reasonable cost,
and Indemnitee has relied on the availability of such coverage; but as a result
of substantial changes in the marketplace for such insurance it has become
increasingly more difficult to obtain such insurance on terms providing
reasonable protection at reasonable cost;

 

WHEREAS, the Amended and Restated Certificate of
Incorporation of the Company (“Certificate of Incorporation”) and the Amended
and Restated Bylaws of the Company (“Bylaws”) require the Company to indemnify
and advance expenses to its directors and officers to the fullest extent
permitted by law and the Indemnitee has been serving and continues to serve as
a director and/or officer of the Company in part in reliance on such
Certificate of Incorporation and Bylaws;

 

WHEREAS, the uncertainties in the marketplace for
director and officer liability insurance coverage and uncertainties as to the
availability of indemnification created by recent court decisions have
increased the risk that the Company will be unable to retain and attract as
directors and officers the most capable persons available;

 

WHEREAS, the Board of Directors of the Company has
determined that the inability of the Company to retain and attract as directors
and officers the most capable persons would be detrimental to the interests of
the Company and that the Company therefore should seek to assure such persons
that indemnification and insurance coverage will be available in the future;

 

(1)                                  References
in the form of agreement will be appropriately modified for agreements to be
entered into with non-director, non-officer Indemnitees.

 

 

WHEREAS, in recognition of Indemnitee’s need for
substantial protection against personal liability in order to enhance
Indemnitee’s continued service to the Company in an effective manner, the
uncertainties in the marketplace for director and officer liability insurance
coverage, and Indemnitee’s reliance on the Company’s Certificate of
Incorporation and Bylaws, and in part to provide Indemnitee with specific
contractual assurance that the protection promised by such Certificate of
Incorporation and Bylaws will be available to Indemnitee (regardless of, among
other things, any amendment to or revocation of such Certificate of
Incorporation or Bylaws or any change in the composition of the Company’s Board
of Directors or acquisition transaction relating to the Company), the Company
wishes to provide in this Agreement for the indemnification of and the advancing
of expenses to Indemnitee to the fullest extent (whether partial or complete)
permitted by law and as set forth in this Agreement, and, to the extent
insurance is maintained, for the continued coverage of Indemnitee under the
Company’s directors’ and officers’ liability insurance policies;

 

WHEREAS, the Bylaws and the General Corporation Law of
the State of Delaware expressly provide that the indemnification provisions set
forth therein are not exclusive, and thereby contemplate that contracts may be
entered into between the Company and members of the board of directors,
officers, and other persons with respect to indemnification;

 

NOW, THEREFORE, in consideration of the premises and
of Indemnitee continuing to serve the Company directly or, at its request,
another enterprise, and intending to be legally bound hereby, the parties
hereto agree as follows:

 

1.    Certain Definitions.  In addition to terms defined elsewhere
herein, the following terms have the following meanings when used in this
Agreement:

 

(a)    Change in Control:  shall be deemed to have occurred if (i) any
“person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of
stock of the Company, is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 20% or more of the total voting power represented by the
Company’s then outstanding Voting Securities (excluding any such person that is
the beneficial owner of securities representing 20% or more of the total voting
power as of the date of the initial public offering of the Company’s common
stock), or (ii) during any period of two consecutive years, individuals who at
the beginning of such period constitute the Board of Directors of the Company
and any new director whose election by the Board of Directors or nomination for
election by the Company’s stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a
majority thereof, or (iii) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger

 

2

 

or consolidation that 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 80% 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 stockholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of (in one transaction or a series
of transactions) all or substantially all the Company’s assets, or
(iv) there occurs any other event of a nature that would be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A (or a
response to any similar item on any similar schedule or form) promulgated under
the Exchange Act, whether or not the Company is then subject to such reporting
requirement.

 

(b)    Claim:  means any threatened, asserted, pending or
completed issue, matter, action, suit or proceeding, or any inquiry or
investigation, whether instituted by the Company or any governmental agency or
any other party, that Indemnitee in good faith believes might lead to the
institution of any such issue, matter, action, suit or proceeding, whether
civil, criminal, administrative, investigative or other, including any
arbitration or other alternative dispute resolution mechanism.

 

(c)    Expenses:  include attorneys’ fees and all other costs,
expenses and obligations (including, without limitation, experts’ fees, travel
expenses, court costs, retainers, transcript costs, duplicating, printing and
binding costs, as well as telecommunications, postage and courier charges)
paid, payable, or incurred, by or on behalf of the Indemnitee, in connection
with investigating, defending, being a witness in or participating in
(including on appeal), or preparing to investigate, defend, be a witness in or
participate in, any Claim relating to any Indemnifiable Event.

 

(d)    Indemnifiable Amounts:  means any and all Expenses, damages,
judgments, fines, penalties, ERISA excise taxes and amounts paid or payable in
settlement (including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses, judgments, fines,
penalties, excise taxes or amounts paid in settlement) arising out of or
resulting from any Claim relating to an Indemnifiable Event.

 

(e)    Indemnifiable Event:  means any event or occurrence, whether
occurring before or after the date of this Agreement, related to the fact that
Indemnitee is or was a director, officer, employee, trustee, agent or fiduciary
of the Company, or is or was serving at the request of the Company as a
director, officer, employee, trustee, agent or fiduciary of another
corporation, limited liability company, partnership, joint venture, employee
benefit plan, trust or other entity or enterprise, or by reason of anything
done or not done by Indemnitee in any such capacity.

 

(f)    Independent Legal Counsel:  means an attorney or firm of attorneys,
selected in accordance with the provisions of Section 3 hereof, who is experienced
in matters of corporate law and who shall not have otherwise performed services
for the Company or Indemnitee within the last five years (other than with
respect

 

3

 

to matters concerning the rights of Indemnitee under this Agreement, or
of other indemnitees under similar indemnity agreements).

 

(g)    Reviewing Party:  means any appropriate person or body
consisting of a member or members of the Company’s Board of Directors or any
other person or body appointed by the Company’s Board of Directors who is not a
party to the particular Claim for which Indemnitee is seeking indemnification,
or Independent Legal Counsel.

 

(h)    Voting Securities:  means any securities of the Company that
vote generally in the election of directors.

 

2.    Basic Indemnification
Arrangement; Advancement of Expenses.

 

(a)    In the event Indemnitee was, is
or becomes a party to or witness or other participant in, or is threatened to
be made a party to or witness or other participant in, a Claim by reason of (or
arising in part out of) an Indemnifiable Event, the Company shall indemnify
Indemnitee to the fullest extent permitted by law, as soon as practicable but
in any event no later than thirty days after written demand is presented to the
Company, against any and all Indemnifiable Amounts.

 

(b)    If so requested by Indemnitee,
the Company shall advance (within two business days of such request) any and
all Expenses incurred by Indemnitee (an “Expense Advance”).  The Company shall, in accordance with such
request (but without duplication), either (i) pay such Expenses on behalf of
Indemnitee, or (ii) reimburse Indemnitee for such Expenses.  Indemnitee’s right to an Expense Advance is
absolute, payable in advance of any disposition of a Claim and shall not be
subject to any prior determination by the Reviewing Party that the Indemnitee
has satisfied any applicable standard of conduct for indemnification.

 

(c)    Notwithstanding anything in
this Agreement to the contrary, Indemnitee shall not be entitled to
indemnification or advancement of Expenses pursuant to this Agreement in
connection with any Claim initiated by Indemnitee unless (i) the Company has
joined in or Company’s Board of Directors has authorized or consented to the
initiation of such Claim or (ii) the Claim is one to enforce Indemnitee’s
rights under this Agreement.

 

(d)    For the avoidance of doubt,
the obligations of the Company provided for in this Section 2 shall apply to
Claims arising out of alleged breach of fiduciary duty, negligence or the
actions or omissions of Indemnitee if the Indemnitee acted in good faith and in
a manner the Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company.

 

(e)    Notwithstanding the foregoing,
(i) the indemnification obligations of the Company under this Section 2 shall
be subject to the condition that the Reviewing Party shall not have determined
(in a written opinion, in any case in which the Independent Legal Counsel
referred to in Section 3 hereof is involved) that the Company would be
prohibited under applicable law from indemnifying Indemnitee to the fullest

 

4

 

extent permissible, and (ii) the obligation of the Company to make an
Expense Advance pursuant to this Section 2 shall be subject to the condition
that, if, when and to the extent that it shall be ultimately determined that
the Indemnitee is not entitled to be indemnified in accordance with applicable
law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby
agrees to reimburse the Company) for all such amounts theretofore paid (it
being understood and agreed that the foregoing agreement by Indemnitee shall be
deemed to satisfy any requirement that Indemnitee provide the Company with an
undertaking to repay any Expense Advance if it is ultimately determined that
the Indemnitee is not entitled to indemnification under applicable law); provided,
however, that if Indemnitee has commenced or thereafter commences legal
proceedings in a court of competent jurisdiction to secure a determination that
indemnification of the Indemnitee would not be prohibited under applicable law,
any determination made by the Reviewing Party that Indemnitee would be
prohibited from being indemnified under applicable law shall not be binding and
Indemnitee shall not be required to reimburse the Company for any Expense
Advance until a final judicial determination is made with respect thereto (as
to which all rights of appeal therefrom have been exhausted or lapsed).  Indemnitee’s undertaking to repay such
Expense Advances shall be unsecured and interest-free.  If there has not been a Change in Control,
the Reviewing Party shall be selected by the Company’s Board of Directors, and
if there has been such a Change in Control, the Reviewing Party shall be the
Independent Legal Counsel referred to in Section 3 hereof.  If there has been no determination by the
Reviewing Party within thirty days after written demand is presented to the
Company or if the Reviewing Party determines that the Company would be
prohibited from indemnifying Indemnitee in whole or in part under applicable
law, Indemnitee shall have the right to commence litigation in any court in the
States of South Carolina or Delaware having subject matter jurisdiction thereof
and in which venue is proper seeking an initial determination by the court or
challenging any such determination by the Reviewing Party or any aspect
thereof, including the legal or factual bases therefor, and the Company hereby
consents to service of process and to appear in any such proceeding.  Any determination by the Reviewing Party
otherwise shall be conclusive and binding on the Company and Indemnitee,
subject to any final judicial determination provided for herein.

 

3.    Change in Control.  The Company agrees that if there is a Change
in Control of the Company then with respect to all matters thereafter arising
concerning the rights of Indemnitee to indemnity payments and Expense Advances
under this Agreement or any Certificate of Incorporation or Bylaw provision now
or hereafter in effect, the Company shall seek legal advice only from
Independent Legal Counsel selected by Indemnitee and approved by the Company
(which approval shall not be unreasonably delayed, conditioned or
withheld).  Such counsel, among other
things, shall render its written opinion to the Company and Indemnitee as to
whether and to what extent the Indemnitee would be permitted to be indemnified
under applicable law.  The Company
agrees to pay the reasonable fees of the Independent Legal Counsel and to
indemnify fully such counsel against any and all expenses (including attorneys’
fees), claims, liabilities and damages arising out of or relating to this
Agreement or its engagement pursuant hereto.

 

5

 

4.    Indemnification for
Additional Expenses.  The Company
shall indemnify Indemnitee against any and all Expenses and, if requested by
Indemnitee, shall advance such Expenses to Indemnitee subject to and in accordance
with Section 2(b), which are incurred by Indemnitee in connection with any
action brought by Indemnitee for (i) indemnification or an Expense Advance by
the Company under this Agreement or any Certificate of Incorporation or Bylaw
provision now or hereafter in effect and/or (ii) recovery under any directors’
and officers’ liability insurance policies maintained by the Company,
regardless of whether Indemnitee ultimately is determined to be entitled to
such indemnification, Expense Advance or insurance recovery, as the case may
be.

 

5.    Partial Indemnity, Etc.  If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the Expenses or other Indemnifiable Amounts in respect of a Claim
but not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee
is entitled.  Moreover, notwithstanding
any other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise in defense of any or all Claims relating
in whole or in part to an Indemnifiable Event or in defense of any issue or
matter therein, including dismissal without prejudice, Indemnitee shall be
indemnified against all Expenses incurred in connection therewith.

 

6.    Burden of Proof.  In connection with any determination by the
Reviewing Party or otherwise as to whether Indemnitee is entitled to be
indemnified hereunder the Reviewing Party or court shall presume that the
Indemnitee has satisfied the applicable standard of conduct and is entitled to
indemnification, and the burden of proof shall be on the Company to establish,
by clear and convincing evidence, that Indemnitee is not so entitled.

 

7.    Reliance as Safe Harbor.  For purposes of this Agreement, Indemnitee
shall be deemed to have acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the
Company if Indemnitee’s actions or omissions to act are taken in good faith
reliance upon the records of the Company, including its financial statements,
or upon information, opinions, reports or statements furnished to Indemnitee by
the officers or employees of the Company in the course of their duties, or by committees
of the Company’s Board of Directors, or by any other person (including legal
counsel, accountants and financial advisors) as to matters Indemnitee
reasonably believes are within such other person’s professional or expert
competence.  In addition, the knowledge
and/or actions, or failures to act, of any director, officer, agent or employee
of the Company shall not be imputed to Indemnitee for purposes of determining
the right to indemnity hereunder.

 

8.    No Other Presumptions.  For purposes of this Agreement, the
termination of any Claim, by judgment, order, settlement (whether with or
without court approval) or conviction, or upon a plea of nolo contendere, or
its equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court
has determined that indemnification is not permitted by applicable law.  In addition, neither the failure of the
Reviewing Party to have made a determination as to whether Indemnitee has met
any particular standard of conduct or had

 

6

 

any particular belief, nor an actual determination by the Reviewing
Party that Indemnitee has not met such standard of conduct or did not have such
belief, prior to the commencement of legal proceedings by Indemnitee to secure
a judicial determination that Indemnitee should be indemnified under applicable
law shall be a defense to Indemnitee’s claim or create a presumption that
Indemnitee has not met any particular standard of conduct or did not have any
particular belief.

 

9.    Nonexclusivity, Etc.  The rights of the Indemnitee hereunder shall
be in addition to any other rights Indemnitee may have under the Company’s
Certificate of Incorporation or Bylaws or the Delaware General Corporation Law
or otherwise.  To the extent that a
change in applicable law (whether by statute or judicial decision) permits
greater indemnification by agreement than would be afforded currently under the
Company’s Certificate of Incorporation or Bylaws or this Agreement, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits so afforded by such change.

 

10.    [Liability Insurance.(2)  To the extent the Company maintains an
insurance policy or policies providing directors’ and officers’ liability
insurance (“D&O Insurance”), Indemnitee shall be covered by such policy or
policies, in accordance with its or their terms, to the maximum extent of the
coverage available for any Company director or officer.  If, at the time of the receipt of notice of
a Claim pursuant to the terms hereof, the Company has D&O Insurance in
effect, the Company shall give prompt notice of the Claim to the insurers in
accordance with the procedures set forth in the respective policies.]

 

11.    Period of Limitations.  No legal action shall be brought and no
cause of action shall be asserted by or in the right of the Company against
Indemnitee, Indemnitee’s spouse, heirs, executors or personal or legal
representatives after the expiration of two years from the date such cause of
action shall arise, and any claim or cause of action of the Company shall be
extinguished and deemed released unless asserted by the timely filing of a
legal action within such period; provided, however, that if any
shorter period of limitations is otherwise applicable to any such cause of
action such shorter period shall govern.

 

12.    Amendments, Etc.  No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of the
parties hereto.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

13.    Subrogation.  In the event of payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall execute all papers
reasonably required and shall do everything that may be reasonably necessary to
secure such rights, including the execution of such

 

(2)  Section 10 to be
included in agreements only for directors and officers.

 

7

 

documents necessary to enable the Company effectively to bring suit to
enforce such rights.

 

14.    No Duplication of Payments.  The Company shall not be liable under this
Agreement to make any payment in connection with any Claim made against
Indemnitee to the extent Indemnitee has otherwise actually received payment
(under any insurance policy, Bylaw, charter provision or otherwise) of the
amounts otherwise indemnifiable hereunder.

 

15.    Defense of Claims.  The Company shall be entitled to participate
in the defense of any Claim relating to an Indemnifiable Event or to assume the
defense thereof, with counsel reasonably satisfactory to the Indemnitee; provided
that if Indemnitee believes, after consultation with counsel selected by
Indemnitee, that (i) the use of counsel chosen by the Company to represent
Indemnitee would present such counsel with an actual or potential conflict of
interest, (ii) the named parties in any such Claim (including any impleaded
parties) include both the Company and Indemnitee and Indemnitee concludes that
there may be one or more legal defenses available to him or her that are
different from or in addition to those available to the Company, (iii) any such
representation by such counsel would be precluded under the applicable
standards of professional conduct then prevailing, or (iv) Indemnitee concludes
that such counsel has failed, or is failing, to adequately protect the
interests of the Indemnitee after written notice to such counsel and the
Company explaining in reasonable detail the basis for such conclusion, then
Indemnitee shall be entitled to retain separate counsel (but not more than one
law firm plus, if applicable, local counsel in respect of any particular Claim)
at the Company’s expense.  The Company
shall not be liable to Indemnitee under this Agreement for any amounts paid in
settlement of any Claim relating to an Indemnifiable Event effected without the
Company’s prior written consent.  The
Company shall not, without the prior written consent of the Indemnitee, effect
any settlement of any Claim relating to an Indemnifiable Event that the
Indemnitee is or could have been a party to, unless such settlement solely
involves the payment of money and includes a complete and unconditional release
of Indemnitee from all liability on all claims that are the subject matter of
such Claim.  Neither the Company nor
Indemnitee shall unreasonably withhold its or his or her consent to any
proposed settlement; provided that Indemnitee may withhold consent to
any settlement that does not provide a complete and unconditional release of
Indemnitee.

 

16.    Binding Effect, Etc.  This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their
respective successors, (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
and/or assets of the Company), assigns, spouses, heirs, executors and personal
and legal representatives.  The Company
shall require and cause any successor (whether direct or indirect by purchase,
merger, consolidation, or otherwise) to all or substantially all of the
business and/or assets of the Company, by written agreement in form and
substance satisfactory to Indemnitee and his or her counsel, expressly to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform if no such succession had
taken place.  This Agreement shall
continue in effect regardless of

 

8

 

whether Indemnitee continues to serve as an officer, director,
employee, trustee, or agent of the Company or of any other entity or enterprise
at the Company’s request.

 

17.    Severability.  The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any
provision within a single section, paragraph or sentence) are held by a court
of competent jurisdiction to be invalid, void or otherwise unenforceable in any
respect, and the validity and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way
impaired and shall remain enforceable to the fullest extent permitted by
law.  In the event any provision hereof
conflicts with any applicable law, such provision shall be deemed modified,
consistent with the aforementioned intent, to the extent necessary to resolve
such conflict.

 

18.    Counterparts.  This Agreement may be executed in
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same agreement.  Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence
the existence of this Agreement.

 

19.    Headings.  The headings of the sections and paragraphs
of this Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction or
interpretation thereof.

 

20.    Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
applicable to contracts made and to be performed in such state without giving
effect to the principles of conflicts of laws.

 

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

 

	
   

  	
  ADVANCE AMERICA,

  CASH ADVANCE CENTERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Indemnitee]

  	
   

  

 

9

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