Document:

exv10w1

Exhibit 10.1

TRANSACTION IMPLEMENTATION AGREEMENT

DATED 21 MARCH 2011

Cash Converters International Limited

AND

EZCORP, Inc.

 

 

CONTENTS

	 	 	 	 	 

	Clause
	 	Page
	1. Interpretation
	 	 	3	 
	2. Agreement to propose the Scheme
	 	 	13	 
	3. Conditions precedent to the Scheme
	 	 	13	 
	4. Scheme
	 	 	17	 
	5. Implementation of the Scheme
	 	 	19	 
	6. Recommendation of Scheme
	 	 	25	 
	7. Exclusivity
	 	 	25	 
	8. Other Obligations during Exclusivity Period
	 	 	27	 
	9. Obligations on and following the Implementation Date
	 	 	29	 
	10. Representations, warranties and undertakings
	 	 	29	 
	11. Termination
	 	 	32	 
	12. Releases
	 	 	33	 
	13. Announcements and confidentiality
	 	 	34	 
	14. GST
	 	 	35	 
	15. Notices
	 	 	36	 
	16. Payments
	 	 	37	 
	17. Entire agreement
	 	 	38	 
	18. General
	 	 	38	 
	19. Governing law and jurisdiction
	 	 	39	 
	 
	 	 	 	 
	Schedule
	 	Page	 
	 
	 	 	 	 
	1. CCV warranties
	 	 	41	 
	 
	 	 	 	 
	Annex
	 	Page	 
	 
	 	 	 	 
	1. Scheme
	 	 	45	 
	2. Deed poll
	 	 	46	 
	3. Indicative timetable
	 	 	47	 

 

 

THIS AGREEMENT is made on 21 March 2011

BETWEEN:

	(1)	 	EZCORP, Inc, a company incorporated in the State of Delaware, USA and having its corporate
headquarters in Austin, Texas, USA (EZCORP); and
	 
	(2)	 	Cash Converters International Limited ACN 069 141 546 of Level 18, 37 St Georges Terrace,
Perth WA, Australia (CCV).

BACKGROUND:

	(A)	 	EZCORP currently holds 124,418,000 CCV Shares (equivalent to 32.76% of CCV’s issued share
capital) and has agreed that it (or at its election, the Nominated Subsidiary) will acquire
30% of the outstanding CCV Shares held by each person other than EZCORP (constituting
approximately 76,603,000 CCV Shares in the aggregate) by means of the Scheme on the terms set
out in this agreement. Upon implementation of the Scheme, EZCORP will hold a total of
approximately 201,021,000 CCV shares (equivalent to 52.93% of CCV’s issued share capital).
	 
	(B)	 	Before the Scheme Meeting, EZCORP and CCV intend to enter into the Joint Venture Agreements
(which are conditional upon implementation of the Scheme) under which they will jointly
establish Global JV and Americas JV.
	 
	(C)	 	This agreement is entered into to record and give effect to the terms and conditions on which
EZCORP and CCV propose to implement the Scheme.

IT IS AGREED as follows:

	1.	 	INTERPRETATION

	1.1	 	Definitions
	 
	 	 	In this agreement:
	 
	 	 	Accounting Standards means the Australian accounting standards made under the
Corporations Act and generally accepted accounting principles and practices in Australia
which are not inconsistent with those standards;
	 
	 	 	ASIC means the Australian Securities and Investments Commission;
	 
	 	 	Americas JV means an incorporated joint venture to be established by EZCORP and CCV on
the terms of the relevant Joint Venture Agreement to develop a business similar to the CCV
business (using the Joint Venture Assets, Joint Venture Contracts and Joint Venture
Intellectual Property Rights transferred to Americas JV by members of the CCV Group) in all
geographical areas within North America and South America (including, for the sake of
clarity, Central America and the Caribbean);
	 
	 	 	Associate has the meaning given in section 12 of the Corporations Act;
	 
	 	 	ASX means ASX Limited or the Australian Securities Exchange, as the context requires;
	 
	 	 	ASX Listing Rules means the official listing rules of the ASX;

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	 	 	Authority means:

	 	(a)	 	any government or governmental, semi-governmental or local authority and any
department, office, minister, commission, board, delegate or agency of any such
government or authority;
	 
	 	(b)	 	any judicial or administrative entity or authority; and
	 
	 	(c)	 	any other authority, commission, board, agency or other entity established or
having power under statute or the listing rules of any recognised securities exchange
including for the avoidance of doubt the UK Takeover Panel;

	 	 	Business Day means a day on which banks are generally open for business in Perth and
Sydney, excluding a Saturday, Sunday or public holiday;
	 
	 	 	CCV Board means the board of directors of CCV;
	 
	 	 	CCV Due Diligence Information means all non-public information in relation to the CCV
Group provided by CCV and its Representatives to EZCORP and its Representatives subject to
the terms of the Confidentiality Agreement;
	 
	 	 	CCV EPR Plan means the CCV Group Executive Performance Rights Plan approved by CCV
Shareholders at CCV’s 2010 annual general meeting on 30 November 2010;
	 
	 	 	CCV Group means CCV and  its related entities;
	 
	 	 	CCV Indemnified Parties means CCV and its Representatives;
	 
	 	 	CCV Information means all information included in the Scheme Booklet other than the
EZCORP Information;
	 
	 	 	CCV Material Adverse Change means any event, matter or circumstance which individually,
or when aggregated with all such other events, matters or circumstances:

	 	(a)	 	results in or could reasonably be expected to result in (now or at any time in
the future) a diminution in the consolidated net assets of the CCV Group of an amount
of $17 million or more or a reduction in any financial year in the consolidated
earnings before interest, tax, depreciation and amortisation of the CCV Group of an
amount of $4.5 million or more; or
	 
	 	(b)	 	otherwise has or could reasonably be expected to have (now or at any time in
the future) a material adverse effect on the business, assets, liabilities, financial
or trading position, profitability or prospects of the CCV Group taken as a whole;

	 	 	other than an event, matter or circumstance :

	 	(i)	 	the occurrence of which is required to be procured by CCV pursuant to this
agreement or the Scheme; or
	 
	 	(ii)	 	agreed to by EZCORP in writing.

	 	 	CCV Permitted Dividends means the fully franked interim dividend of $0.0175 per CCV Share
declared on 21 February 2011, payable on or about 31 March 2011;
	 
	 	 	CCV Prescribed Occurrence means any of the following:

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	 	(a)	 	CCV converts all or any of its shares into a larger or smaller number of shares;
	 
	 	(b)	 	any member of the CCV Group (other than a direct or indirect wholly-owned
subsidiary of CCV) resolves to reduce its share capital in any way or reclassifies,
redeems or repurchases directly or indirectly any of its shares;
	 
	 	(c)	 	any member of the CCV Group (other than a direct or indirect wholly-owned
subsidiary of CCV) enters into a buy-back agreement or resolves to approve the terms
of a buy-back agreement under the Corporations Act;
	 
	 	(d)	 	any member of the CCV Group issues shares or securities convertible into shares,
or grants an option over its shares or securities convertible into shares, or
agrees to make such an issue or grant such an option, other than to a member of the CCV
Group;
	 
	 	(e)	 	a modification of any of the rights attaching to any shares or other securities
in any member of the CCV Group (including equity securities, debt securities and
convertible securities);
	 
	 	(f)	 	an amendment of the terms of issue of any option or right to acquire any shares
or other securities in any member of the CCV Group (including equity securities, debt
securities and convertible securities);
	 
	 	(g)	 	any member of the CCV Group (other than a direct or indirect wholly-owned
subsidiary of CCV) declares, pays or distributes any dividend, bonus or other share of
its profits or assets or returns any capital to its members other than a Permitted
Dividend;
	 
	 	(h)	 	any member of the CCV Group amends or proposes to amend its constitution;
	 
	 	(i)	 	any member of the CCV Group acquires or disposes of, or offers, proposes or
announces a bid or tender for, any business, asset, joint venture interest, entity or
undertaking the value of which exceeds $2 million, or any businesses, assets, joint
venture interests, entities or undertakings the aggregate value of which exceeds $5
million;
	 
	 	(j)	 	any member of the CCV Group disposes of, or grants any licences or rights in
relation to, any asset or entity which is to be transferred, licensed or granted to the
Global JV or the Americas JV under the Joint Venture Agreements or pursuant to any
agreements to be entered into pursuant to the Joint Venture Agreements;
	 
	 	(k)	 	any member of the CCV Group creates or agrees to create any Encumbrance over
the whole or any part of its assets or undertaking other than an Encumbrance arising in
the ordinary and usual course of business;
	 
	 	(l)	 	an order or application is made or a resolution is passed for the winding up of
any member of the CCV Group;
	 
	 	(m)	 	an administrator, liquidator, provisional liquidator, receiver or receiver and
manager is appointed in respect of any member of the CCV Group or the whole or any part
of the assets or undertaking of any member of the CCV Group, or any member of the CCV
Group executes a deed of company arrangement;
	 
	 	(n)	 	any member of the CCV Group ceases to carry on business or is deregistered
under the Corporations Act or any other applicable law;

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	 	(o)	 	any member of the CCV Group incurs or pays on account of material capital
expenditure which is not committed at the date of this agreement as fairly disclosed in
writing by CCV to EZCORP before the date of this agreement;
	 
	 	(p)	 	any member of the CCV Group increases the aggregate level of its borrowings or
liabilities as at the date of this agreement (except for drawing on existing facilities
not exceeding $500,000 or borrowings from, or liabilities to, another member of the CCV
Group) or guarantees, indemnifies or provides security for the obligations of any
person or entity other than obligations owed by one member of the CCV Group to another
member of the CCV Group;
	 
	 	(q)	 	any member of the CCV Group makes any loans, advances or capital contributions
to, or investment in, any other entity, other than a loan or investment by the relevant
member of the CCV Group in another member of the CCV Group;
	 
	 	(r)	 	any member of the CCV Group enters into any operating leases in excess of
$100,000;
	 
	 	(s)	 	any member of the CCV Group pays, discharges or satisfies an amount in excess
of $100,000 in any one case or $1 million in aggregate any claim, liability or
obligation (absolute, accrued, asserted, unasserted, contingent or otherwise) arising
other than in the ordinary course of business, other than the payment, discharge or
satisfaction of liabilities reflected or reserved against the Financial Statements;
	 
	 	(t)	 	any member of the CCV Group enters into a contract or commitment restraining
any member of the CCV Group from competing with any person or conducting activities in
any market;
	 
	 	(u)	 	any member of the CCV Group adopts, terminates or amends any employee benefit
plan (including the CCV EPR Plan) or the terms of any grant made under such plan, or
makes any contribution to such plan (other than regularly scheduled contributions); or
	 
	 	(v)	 	any member of the CCV Group agrees or announces an intention to take any of the
actions referred to in the foregoing paragraphs;

	 	 	provided that a CCV Prescribed Occurrence will not include:

	 	(i)	 	anything required to be done or procured by CCV pursuant to, or is otherwise
expressly contemplated by, this agreement, the Scheme or the Joint Venture Agreements;
or
	 
	 	(ii)	 	anything that has been agreed to by EZCORP in writing;

	 	 	CCV Share means a fully paid ordinary share in the capital of CCV;
	 
	 	 	CCV Shareholder means a person who is registered in the Register as the holder of one
or more CCV Shares from time to time;
	 
	 	 	CCV UK means Cash Converters UK Holdings PLC (Company No. 03228113) of Cash Converters
House, Gentlemens Field, Ware, Hertfordshire, UK SG12 0EF;
	 
	 	 	CCV UK Dividend Access Share means a fully paid dividend access share in the capital of
CCV UK;
	 
	 	 	CCV Unit means a stapled unit comprising a CCV Share and a CCV UK Dividend Access
Share, as quoted on ASX and the LSE as at the date of this agreement;

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	 	 	Competing Proposal means any expression of interest, offer or proposal by a Third Party
in respect of a transaction under which, if the transaction were completed, a person
(whether alone or together with one or more Associates) would:

	 	(a)	 	acquire a legal, equitable or economic interest or a Relevant Interest in 20%
or more of all CCV Shares (including by way of issue of new CCV Shares);
	 
	 	(b)	 	acquire the whole or a substantial part of the business or assets of CCV or the
CCV Group;
	 
	 	(c)	 	acquire control of CCV, within the meaning of section 50AA of the Corporations
Act; or
	 
	 	(d)	 	otherwise acquire or merge with CCV (including by reverse takeover bid or
scheme, or by establishing a dual listed company structure or stapled security
structure) or through any other means having a similar economic effect;

	 	 	Conditions mean the conditions precedent set out in clause 3.1;
	 
	 	 	Confidentiality Agreement means the confidentiality agreement entered into by EZCORP
and CCV on 27 January 2011;
	 
	 	 	Controlled Entity means in respect of an entity, another entity controlled by it for
the purposes of section 50AA of the Corporations Act;
	 
	 	 	Corporations Act means the Corporations Act 2001 (Cth);
	 
	 	 	Court means the Supreme Court of Western Australia or such other court of competent
jurisdiction under the Corporations Act as EZCORP and CCV agree in writing;
	 
	 	 	DAS means the CCV dividend access scheme which was put in place by CCV in 1996 (through
the issue of CCV UK Dividend Access Shares) to offer UK resident CCV Shareholders tax
advantages similar to those available to Australian resident CCV Shareholders (although the
tax advantages for UK resident CCV Shareholders were never available in practice due to
changes in international tax laws following implementation of the dividend access scheme);
	 
	 	 	DAS Unwinding means the proposed unwinding of the DAS to separate CCV Shares from CCV
UK Dividend Access Shares, as described in clause 4.4(b).
	 
	 	 	Deed Poll means the deed poll to be entered into by EZCORP in favour of the Scheme
Shareholders in the form attached as Annex 2 (amended, if applicable, in accordance with
clause 4.4(c)) or in such other form as EZCORP and CCV agree in writing;
	 
	 	 	Director means a director of CCV;
	 
	 	 	Effective means, when used in relation to the Scheme, the coming into effect pursuant
to section 411(10) of the Corporations Act of the order of the Court made under section
411(4)(b) in relation to the Scheme;
	 
	 	 	Effective Date means the date the Scheme becomes Effective;
	 
	 	 	Encumbrance means any mortgage, fixed or floating charge, pledge, lien, option, right
to acquire, right of pre-emption, assignment by way of security, trust arrangement for the
purpose of providing security, retention arrangement or other third party interest of any
kind, and any agreement to create any of the foregoing;

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	 	 	Excluded Shares means any CCV Shares held by any member of the EZCORP Group or by any
person on behalf of or for the benefit of any member of the EZCORP Group;

	 	 	Excluded Shareholder means a person who is registered in the Register as the holder of
one or more Excluded Shares as at the Record Date;
	 
	 	 	Exclusivity Period means the period starting on the date of this agreement and ending
on the first to occur of:

	 	(a)	 	termination of this agreement;
	 
	 	(b)	 	the Implementation Date; and
	 
	 	(c)	 	the Long Stop Date;

	 	 	EZCORP Group means EZCORP and its Controlled Entities (other than members of the CCV
Group);
	 
	 	 	EZCORP Indemnified Parties means EZCORP and its Representatives;
	 
	 	 	EZCORP Information has the meaning given in subclause 5.3(a);
	 
	 	 	FATA means the Foreign Acquisitions and Takeovers Act 1975 (Cth);
	 
	 	 	First Court Date means the first day on which an application is made to the Court for
an order under section 411(1) of the Corporations Act approving the convening of the Scheme
Meeting;
	 
	 	 	FSA means the UK Financial Services Authority;
	 
	 	 	General Meeting means the general meeting of CCV Shareholders to be convened to
consider the General Meeting Resolution;
	 
	 	 	General Meeting Resolution means the ordinary resolution to approve the matters
referred to in clause 3.1(c);
	 
	 	 	Global JV means an incorporated joint venture to be established by EZCORP and CCV on
the terms of the relevant Joint Venture Agreement to develop a business similar to the CCV
business (using the Joint Venture Assets, Joint Venture Contracts and Joint Venture
Intellectual Property Rights transferred to Global JV by members of the CCV Group) in all
geographical areas outside of Australia, the UK, North America and South America;
	 
	 	 	GST has the meaning given in the GST Act;
	 
	 	 	GST Act means the A New Tax System (Goods and Services Tax) Act 1999 (Cth);
	 
	 	 	Headcount Test means the requirement under section 411(4)(a)(ii)(A) of the Corporations
Act that the Scheme Resolution is passed at the Scheme Meeting by a majority in number of
CCV Shareholders present and voting, either in person or by proxy;
	 
	 	 	Implementation Date means the date which is 5 Business Days after the Scheme Record
Date, or such other date as EZCORP and CCV agree in writing;
	 
	 	 	Independent Director means a Director who is independent of EZCORP;

8

 

	 	 	Independent Expert means the person appointed by CCV as independent expert to prepare
the Independent Expert’s Report;

	 	 	Independent Expert’s Report means the independent expert’s report prepared in relation
to the Transaction;
	 
	 	 	Joint Venture Agreements means:

	 	(a)	 	the Global JV Joint Venture Agreement; and
	 
	 	(b)	 	Americas JV Joint Venture Agreement,

	 	 	in the form agreed and initialled by the parties for identification purposes, or in such
other form as EZCORP and CCV agree in writing;
	 
	 	 	Joint Venture Assets means the assets to be transferred by the members of the CCV Group
to Global JV or Americas JV under the Joint Venture Agreements or any agreements to be
entered into pursuant to the Joint Venture Agreements, other than the Joint Venture
Contracts and the Joint Venture Intellectual Property Rights;
	 
	 	 	Joint Venture Contracts means the contracts, instruments and other commitments to be
transferred, novated or assigned by the members of the CCV Group to Global JV or Americas JV
under the Joint Venture Agreements or any agreements to be entered into pursuant to the
Joint Venture Agreements;
	 
	 	 	Joint Venture Intellectual Property Rights means the intellectual property rights to be
transferred or licensed by the members of the CCV Group to Global JV or Americas JV under
the Joint Venture Agreements or any agreements to be entered into pursuant to the Joint
Venture Agreements;
	 
	 	 	Last Accounts Balance Date means 31 December 2010;
	 
	 	 	Last Accounts means the audit-reviewed but unaudited accounts for the CCV Group for the
half year ended on the Last Accounts Balance Date;
	 
	 	 	Long Stop Date means 30 September 2011, or such later date as EZCORP and CCV agree in
writing;
	 
	 	 	LSE means London Stock Exchange plc;
	 
	 	 	LSE Main Market means the LSE’s main market for listed securities;
	 
	 	 	Nominated Subsidiary means a direct or indirect wholly-owned subsidiary of EZCORP
nominated by EZCORP by written notice to CCV no later than 5 Business Days prior to the
lodgement of the Scheme Booklet with ASIC;
	 
	 	 	Nominee Directors means those directors other than the Independent Directors.
	 
	 	 	Prescribed Foreign Investor has the meaning given under section 17E of the FATA;
	 
	 	 	Protocol means the independent board committee protocols adopted by the Board with
respect to the participation of Nominee Directors in deliberations relating to the
Transaction.
	 
	 	 	Official List means the Official List maintained by the FSA;

9

 

	 	 	Reference Rate means in relation to interest payable on any payment due under this
agreement, the average bid rate displayed on the Reuters Screen BBSY for a 3 month term at
or about 10.30 am on the first date on which interest accrues on that payment;

	 	 	Register means the register of CCV Shares maintained on behalf of CCV in Australia by
Computershare Investor Services Pty Limited ACN 078 279 277 and in the UK by Computershare
Investor Services PLC;
	 
	 	 	Regulatory Conditions means the Conditions in subclauses 3.1(d) and 3.1(e);
	 
	 	 	Relevant Interest has the meaning given in the Corporations Act;
	 
	 	 	Representative means:

	 	(a)	 	in relation to CCV, a member of the CCV Group, any director, officer or
employee of any member of the CCV Group, and any financier, financial adviser,
accounting adviser, auditor, legal adviser or technical or other expert adviser or
consultant to any member of the CCV Group in relation to the Transaction; and
	 
	 	(b)	 	in relation to EZCORP, a member of the EZCORP Group, any director, officer or
employee of any member of the EZCORP Group, and any financier, financial adviser,
accounting adviser, auditor, legal adviser, or technical or other expert adviser or
consultant to any member of the EZCORP Group in relation to the Transaction;

	 	 	RG 60 means Regulatory Guide 60 issued by ASIC in December 2009, as amended;
	 
	 	 	Scheme means the scheme of arrangement under Part 5.1 of the Corporations Act between
CCV and CCV Shareholders, in the form attached as Annex 1 (amended, if applicable, in
accordance with clause 4.4(c), clause 5.2(m) and/or clause 5.2(n)), subject to any
amendments made (or required by the Court under section 411(6) of the Corporations Act) and
approved by EZCORP and CCV in writing;
	 
	 	 	Scheme Booklet means the explanatory memorandum and accompanying materials to be
approved by the Court and sent to CCV Shareholders in advance of the Scheme Meeting;
	 
	 	 	Scheme Consideration means $0.91 in respect of each Scheme Share held by a Scheme
Shareholder;
	 
	 	 	Scheme Meeting means the meeting of CCV Shareholders ordered by the Court to be
convened pursuant to section 411(1) of the Corporations Act in respect of the Scheme;
	 
	 	 	Scheme Record Date means 5:00 pm on the date which is 5 Business Days after the
Effective Date;
	 
	 	 	Scheme Resolution means the resolution to be put to CCV Shareholders at the Scheme
Meeting to approve the Scheme;
	 
	 	 	Scheme Shareholder means a person (other than an Excluded Shareholder) who is
registered in the Register as the holder of one or more Scheme Shares as at the Scheme
Record Date;
	 
	 	 	Scheme Shares means 30% of the CCV Shares held by each Scheme Shareholder as at the
Scheme Record Date, other than the Excluded Shares, as adjusted pursuant to clauses 3.4(a)
and 3.4(b) of the Scheme;

10

 

	 	 	Second Court Date means the first day on which the application made to the Court for an
order pursuant to section 411(4)(b) of the Corporations Act approving the Scheme is heard
or, if the application is adjourned for any reason prior to any substantive hearing of the
application, the first day on which the adjourned application is heard;

	 	 	Share Splitting means the splitting, directly or indirectly, by a holder of CCV Shares
into two or more parcels of CCV Shares whether or not it results in any change in beneficial
ownership of the CCV Shares;
	 
	 	 	Superior Proposal means a written bona fide Competing Proposal which the Independent
Directors acting in good faith and after having first obtained written advice from CCV’s
legal advisers determine is:

	 	(a)	 	reasonably capable of being completed, taking into account all aspects of the
Competing Proposal; and
	 
	 	(b)	 	more favourable to CCV Shareholders than the Scheme, taking into account all
terms and conditions of the Competing Proposal;

	 	 	Tax means any charge, tax, levy, impost or withholding having the character of
taxation, wherever chargeable and however collected or recovered, imposed for support of
national, federal, state, municipal or local government or any other governmental or
regulatory authority, body or instrumentality including but not limited to tax on gross net
income, profits or gains, taxes on receipts, sales, use, occupation, GST, value added taxes
and social security taxes;
	 
	 	 	Timetable means the indicative timetable set out in Annex 3, subject to such amendments
as EZCORP and CCV agree in writing or as are required by the Court;
	 
	 	 	Third Party means a person other than the EZCORP or its related entities;
	 
	 	 	Transaction means the Scheme and the transactions contemplated under the Joint Venture
Agreements;
	 
	 	 	UK means the United Kingdom; and
	 
	 	 	USA means the United States of America.
	 
	1.2	 	References to specific terms

	 	(a)	 	Insolvency
	 
	 	 	 	For the purposes of this agreement, a person is insolvent if:

	 	(a)	 	an administrator, liquidator, provisional liquidator, receiver,
receiver and manager or equivalent officer has been appointed in respect of that
person or the whole or any part of its assets or undertaking;
	 
	 	(b)	 	an arrangement, compromise or similar arrangement with creditors
has been proposed, agreed or sanctioned in respect of that person;
	 
	 	(c)	 	an order or application has been made, or a resolution has been
passed, for the winding up or dissolution of that person;

11

 

	 	(d)	 	that person has stopped paying its debts as they fall due or is
unable to pay its debts as they fall due; or
	 
	 	(e)	 	that person has otherwise become, or is otherwise taken to be,
insolvent in any jurisdiction.

	 	(f)	 	Related entities
	 
	 	 	 	For the purposes of this agreement, one entity is related to another if the first
entity:

	 	(i)	 	controls the second entity;
	 
	 	(ii)	 	is under the control of the second entity; or
	 
	 	(iii)	 	is under the control of a third entity that also controls the second entity,

	 	 	 	in each case for the purposes of section 50AA of the Corporations Act.

	1.3	 	References to certain other words and terms
	 
	 	 	In this agreement:

	 	(a)	 	any reference, express or implied, to any legislation in any jurisdiction
includes:

	 	(i)	 	that legislation as amended, extended or applied by or under any
other legislation made before or after signature of this agreement;
	 
	 	(ii)	 	any legislation which that legislation re-enacts with or without
modification; and
	 
	 	(iii)	 	any subordinate legislation made before or after signature of
this agreement under that legislation, including (where applicable) that
legislation as amended, extended or applied as described in subclause 1.3(a)(i),
or under any legislation which it re-enacts as described in subclause
1.3(a)(ii);

	 	(b)	 	references to persons or entities include natural persons, bodies corporate,
partnerships, trusts and unincorporated associations of persons;
	 
	 	(c)	 	references to an individual or a natural person include his estate and personal
representatives;
	 
	 	(d)	 	the schedules and annexes form part of this agreement and a reference to a
clause, subclause, schedule or annex is a reference to a clause, subclause, schedule or
annex of or to this agreement;
	 
	 	(e)	 	subject to clause 18.2, references to a party to this agreement include the
successors or assigns (immediate or otherwise) of that party;
	 
	 	(f)	 	a reference to any time is, unless otherwise indicated, a reference to that
time in Perth, Australia; and
	 
	 	(g)	 	a reference to $, A$ or dollars is to Australian currency.

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	1.4	 	Rules of interpretation
	 
	 	 	In this agreement:

	 	(a)	 	singular words include the plural and vice versa;
	 
	 	(b)	 	a word of any gender includes the corresponding words of any other gender;
	 
	 	(c)	 	if a word or phrase is defined, other grammatical forms of that word have a
corresponding meaning;
	 
	 	(d)	 	general words must not be given a restrictive meaning by reason of the fact
that they are followed by particular examples intended to be embraced by the general
words;
	 
	 	(e)	 	nothing is to be construed adversely to a party just because that party put
forward this agreement or the relevant part of this agreement; and
	 
	 	(f)	 	the headings do not affect interpretation.

	1.5	 	Things required to be done other than on a Business Day
	 
	 	 	Unless otherwise indicated, if the day on which any act, matter or thing is to be done
under this agreement is a day other than a Business Day, that act, matter or thing must be
done on or by the next Business Day.
	 
	2.	 	AGREEMENT TO PROPOSE THE SCHEME
	 
	 	 	CCV agrees to propose the Scheme, and EZCORP agrees to assist CCV to propose the Scheme, on
and subject to the terms of this agreement.
	 
	3.	 	CONDITIONS PRECEDENT TO THE SCHEME
	 
	3.1	 	Conditions
	 
	 	 	The Scheme will not become Effective, and the obligations of EZCORP under clause 4.2
are not binding, unless and until each of the following conditions precedent is satisfied or
waived in accordance with clause 3.5:

	 	(a)	 	the Court approves the Scheme in accordance with section 411(4)(b) of the
Corporations Act;
	 
	 	(b)	 	before 8:00 am on the Second Court Date, CCV Shareholders approve the Scheme at
the Scheme Meeting by the requisite majorities as may be modified by the Court in
accordance with section 411(4)(a)(ii)(A) of the Corporations Act;
	 
	 	(c)	 	before 8:00 am on the Second Court Date, CCV Shareholders approve the Joint
Venture Agreements in accordance with Chapter 2E of the Corporations Act;
	 
	 	(d)	 	if EZCORP elects to use a Nominated Subsidiary under the Scheme and the
Nominated Subsidiary is not a Prescribed Foreign Investor, before 8:00am on the Second
Court Date the Treasurer of the Commonwealth of Australia either:

13

 

	 	(i)	 	ceases to be empowered to make an order under the FATA in
relation to the Transaction including the proposed acquisition by EZCORP of the
Scheme Shares ; or
	 
	 	(ii)	 	gives written advice of a decision by or on behalf of the
Treasurer stating (either unconditionally or on the basis of conditions which
are reasonably acceptable to EZCORP) that there is no objection to the
Transaction, including the acquisition by EZCORP of the Scheme Shares;

	 	(e)	 	before 8:00am on the Second Court Date each of ASIC and ASX gives all approvals
and consents, and takes such other steps, as EZCORP and CCV agree are necessary or
desirable to implement the Transaction;
	 
	 	(f)	 	no Authority takes any action, or imposes any legal restraint or prohibition,
to prevent implementation of the Transaction which remains in force at 8:00am on the
Second Court Date;
	 
	 	(g)	 	no CCV Prescribed Occurrence occurs between the date of this agreement and
8:00am on the Second Court Date;
	 
	 	(h)	 	no CCV Material Adverse Change occurs between the date of this agreement and
8:00am on the Second Court Date;
	 
	 	(i)	 	the representations and warranties given by CCV in clause 10.1 are true and
correct in all material respects as at the date of this agreement and, unless otherwise
expressly stated, also as at 8:00 am on the Second Court Date, and no material breach
of the undertakings given by CCV in clause 10.2 occurs between the date of this
agreement and 8:00 am on the Second Court Date;
	 
	 	(j)	 	the representations and warranties given by EZCORP in clause 10.4 are true and
correct in all material respects as at the date of this agreement and, unless otherwise
expressly stated, also as at 8:00 am on the Second Court Date, and no material breach
of the undertakings given by EZCORP in clause 10.5 occurs between the date of this
agreement and 8:00am on the Second Court Date;
	 
	 	(k)	 	each of CCV and EZCORP has complied with its obligations under clause 9.1 of
this agreement (by the times specified in that clause); and
	 
	 	(l)	 	by 14 May 2011 (or such later date as the parties agree in writing), either:

	 	(i)	 	the DAS Unwinding has occurred; or
	 
	 	(ii)	 	both:

	 	(A)	 	CCV and EZCORP have obtained all approvals,
consents or permissions that may be required from any Authority to
permit the Scheme to be proposed in respect of CCV Units rather than CCV
Shares (in the manner contemplated by clause 4.4(f)), including without
limitation written confirmation from the UK Takeover Panel that the UK
Takeover Code does not apply to the offer to be made for the CCV Units;
and
	 
	 	(B)	 	CCV has received legal advice from UK counsel (in
a form satisfactory to EZCORP) to the effect that:

14

 

	 	I.	 	no separate offer is required under
UK laws or regulation (whether implemented by contractual
takeover or scheme of arrangement) to effect or permit the
transfer of CCV UK Dividend Access Shares to EZCORP as
contemplated by clause 4.4(f); and
	 
	 	II.	 	CCV UK has the power under its
constitution to effect such transfer of CCV UK Dividend Access
Shares without any action, approval or consent by any third
party.

	3.2	 	Satisfaction of Conditions
	 
	 	 	Without prejudice to the obligations of the parties under clause 5 or any other
provision of this agreement:

	 	(a)	 	to the extent that it is within its power to do so, each party must use best
endeavours to procure that the Conditions in subclauses 3.1(a), 3.1(b), 3.1(c), 3.1(e),
3.1(f), 3.1(k) and 3.1(l) are satisfied;
	 
	 	(b)	 	CCV must use its best endeavours to procure that the Conditions in subclauses
3.1(g), 3.1(h) and 3.1(i) are satisfied; and
	 
	 	(c)	 	EZCORP must use its best endeavours to procure that the Conditions in
subclauses 3.1(d) and 3.1(j) is satisfied.

	3.3	 	Obligations in relation to Regulatory Conditions
	 
	 	 	Without limiting clause 3.2:

	 	(a)	 	EZCORP and CCV must co-operate in good faith for the purposes of enabling the
Regulatory Conditions to be satisfied and must consult with each other in advance
regarding the process to be followed in seeking to satisfy the Regulatory Condition;
	 
	 	(b)	 	EZCORP and CCV must promptly make all notifications and applications to any
Authority necessary to procure the satisfaction of the Regulatory Conditions and must
give the other party a copy of those notifications and applications;
	 
	 	(c)	 	each of EZCORP and CCV must promptly:

	 	(i)	 	give the other all information reasonably required by the other
for the purpose of enabling the Regulatory Conditions to be satisfied; and
	 
	 	(ii)	 	give the Authorities referred to in subclause 3.3(b) all
additional information required by those Authorities for the purposes of
considering EZCORP’s and/or CCV’s applications (as the case may be).

	3.4	 	Notifications
	 
	 	 	Each of EZCORP and CCV must:

	 	(a)	 	keep the other informed of the steps it has taken to procure, and of any other
progress made towards satisfaction of the Conditions;
	 
	 	(b)	 	promptly notify the other in writing if it becomes aware that any Condition has
been satisfied; and

15

 

	 	(c)	 	promptly notify the other in writing of a failure to satisfy a Condition or of
any change or event of which it becomes aware that may lead to a Condition not being
satisfied.

	3.5	 	Waiver of Conditions
	 
	 	 	The Conditions in subclauses 3.1(a), 3.1(b), 3.1(c), 3.1(d), 3.1(e) and 3.1(f) cannot
be waived. Any breach or non-satisfaction of the other Conditions may be waived as follows:

	 	(a)	 	any breach or non-satisfaction of the Conditions in subclauses 3.1(g), 3.1(h),
3.1(i) or 3.1(l) can only be waived by notice from EZCORP to CCV;
	 
	 	(b)	 	any breach or non-satisfaction of the Condition in subclause 3.1(j) can only be
waived by notice from CCV to EZCORP; and
	 
	 	(c)	 	any breach or non-satisfaction of the Condition in subclause 3.1(k) can only be
waived with the consent of both parties.

	 	 	A party entitled to waive the breach or non-satisfaction of a Condition pursuant to
this clause 3.5 may do so in its absolute discretion.

	3.6	 	Effect of waiver
	 
	 	 	If a party waives a breach or non-satisfaction of a Condition, that waiver does not:

	 	(a)	 	preclude the party waiving the Condition from suing the other party for any
breach of this agreement resulting from the breach or non-satisfaction of that
Condition or arising from the same event that gave rise to the breach or
non-satisfaction of the Condition; or
	 
	 	(b)	 	constitute a waiver of any other Condition resulting from the same event or a
waiver of a breach or non-satisfaction of that Condition resulting from any other
event.

	3.7	 	Consultations on failure to satisfy Conditions
	 
	 	 	If any event, matter or circumstance occurs that prevents or is reasonably likely to prevent
any of the Conditions (other than the Condition in subclause3.1(a)) being satisfied as at
8.00 am on the date specified in the Timetable for the Second Court Date (and the breach or
non-satisfaction of the Condition which would otherwise occur has not already been waived or
cannot be waived) then EZCORP and CCV must consult in good faith with a view to determining
whether to take any or all of the following steps:

	 	(a)	 	agree to change the date specified for the Second Court Date in the Timetable
to a later date and if necessary apply to the Court to adjourn to that later date any
application made to the Court for an order pursuant to section 411(4)(b) of the
Corporations Act approving the Scheme; and
	 
	 	(b)	 	agree to change the Long Stop Date to a later date.

	3.8	 	Termination
	 
	 	 	If any Condition has not been satisfied or waived in accordance with clause 3.5 by the
Long Stop Date or if any event, matter or circumstance occurs that prevents any Condition
from being satisfied, either EZCORP or CCV may give notice to the other terminating this
agreement and in that event the provisions of clause 11.4 have effect.

16

 

	3.9	 	Conditions for termination
	 
	 	 	EZCORP or CCV may only terminate this agreement under clause 3.8 if:

	 	(a)	 	the relevant Condition is for the benefit of that party;
	 
	 	(b)	 	that party has fully complied with its obligations under this clause 3 and
those obligations which are applicable to it under clause 5 at the date of termination;
and

	 	(i)	 	if clause 3.7 applies in respect of the relevant Condition,
EZCORP and CCV have not agreed to take any of the steps referred to in that
clause by the earlier of 8:00 am on the Second Court Date and 8:00 am on the
date that is 5 Business Days after the date that both EZCORP and CCV became
aware that consultations under that clause were required.

	 	 	For the purposes of this clause 3.9 a Condition is for the benefit of a party if, under
clause 3.5, it cannot be waived, it can be waived by consent of EZCORP and CCV or it can be
waived by that party by notice to the other.
	 
	3.10	 	Certificate
	 
	 	 	If immediately prior to the commencement of the Court hearing on the Second Court Date
all of the Conditions (other than the Condition in subclause 3.1(a)) have been satisfied or
waived in accordance with the terms of this agreement, EZCORP and CCV must at the hearing
provide the Court with a certificate confirming this.
	 
	4.	 	SCHEME
	 
	4.1	 	Overview
	 
	 	 	CCV agrees to propose a scheme of arrangement under Part 5.1 of the Corporations Act
under which the Scheme Shares will be transferred to EZCORP (or where relevant, the
Nominated Subsidiary), and the Scheme Shareholders will be entitled to receive the Scheme
Consideration in accordance with this agreement and the Scheme.
	 
	4.2	 	Scheme Consideration
	 
	 	 	EZCORP covenants in favour of CCV (in its own right and as trustee or nominee on behalf
of the Scheme Shareholders) that in consideration for the transfer to EZCORP (or where
relevant, the Nominated Subsidiary) of each Scheme Share held by a Scheme Shareholder under
the terms of the Scheme, it will:

	 	(a)	 	before 5:00pm on the Business Day before the Implementation Date, and subject
to the terms of the Scheme and the Deed Poll, deposit in cleared funds the Scheme
Consideration for each Scheme Share held by each Scheme Shareholder on the Scheme
Record Date into an Australian dollar denominated trust account operated by CCV (or its
share registry) as trustee for the Scheme Shareholders to be held on trust for those
Scheme Shareholders; and
	 
	 	(b)	 	accept the transfer of each Scheme Share on the Implementation Date.

	4.3	 	Payment of Scheme Consideration
	 
	 	 	On the Implementation Date (subject to EZCORP having complied with clause 4.2(a)) CCV
must (in accordance with the Scheme) pay to each Scheme Shareholder the Scheme Consideration
payable to

17

 

	 	 	that Scheme Shareholder from the trust account referred to in clause 4.2(a). Any interest
earned on the amount deposited by EZCORP under clause 4.3 will be for the account of EZCORP.

	4.4	 	DAS Unwinding
	 
	 	 	The parties acknowledge and agree that:

	 	(a)	 	as at the date of this agreement:

	 	(i)	 	each CCV Share is contractually stapled to a CCV UK Dividend
Access Share to form a CCV Unit; and
	 
	 	(ii)	 	CCV Units are quoted on ASX and the LSE Main Market;

	 	(b)	 	as soon as practicable following the date of this agreement (and in any event
before the Scheme Booklet is lodged with ASIC), CCV proposes to unwind the DAS by way
of:

	 	(i)	 	the compulsory acquisition by CCV of all CCV UK Dividend Access
Shares under the mechanism set out in CCV UK’s constitution; and
	 
	 	(ii)	 	the removal of the CCV Units from:

	 	(A)	 	quotation on ASX; and
	 
	 	(B)	 	admission to the Official List and from admission
to trading on the LSE Main Market; and

	 	(iii)	 	the:

	 	(A)	 	re-quotation of the CCV Share component of those
CCV Units on ASX (which shall be the primary quotation of such CCV
Shares); and
	 
	 	(B)	 	admission of the CCV Share component of those CCV
Units to the standard segment of the Official List and admission to the
trading on the LSE Main Market;

	 	(c)	 	if the DAS is unwound prior to the date of lodgement of the draft Scheme
Booklet with ASIC pursuant to clause 5.2(e), then the Scheme will be proposed in
respect of the Scheme Shares (as CCV Units will no longer exist following compulsory
acquisition of the CCV UK Dividend Access Shares);
	 
	 	(d)	 	CCV and EZCORP agree that they will take all actions or steps which are
necessary or desirable to unwind the DAS as set out in clause 4.4(b) including, the
case of CCV, putting such resolutions to its shareholders as are required to approve
any actions or steps in relation to such matters;
	 
	 	(e)	 	CCV and EZCORP will each cooperate with the UK Financial Services Authority and
any other regulatory body to give effect to the terms of this clause 4.4 and to unwind
the DAS; and
	 
	 	(f)	 	if the DAS is not unwound prior to the date of lodgement with ASIC pursuant to
clause 4.4(b), then:

18

 

	 	(i)	 	it is intended that the DAS Unwinding be deferred and that the
Scheme will be proposed in respect of CCV Units rather than CCV Shares, and that
this agreement, the Scheme and the Deed Poll be amended accordingly to reflect
that EZCORP (or, where applicable, the Nominated Subsidiary) will acquire 30% of
each Scheme Shareholder’s CCV Units rather than that proportion of their CCV
Shares; and
	 
	 	(ii)	 	each of CCV and EZCORP will work together in good faith to
promptly implement the amendment referred to in clause 4.4(f)(i).

	5.	 	IMPLEMENTATION OF THE SCHEME
	 
	5.1	 	General obligations
	 
	 	 	Each of CCV and EZCORP must do everything reasonably necessary, including by procuring
that its Representatives work in good faith and in a timely and co-operative manner with the
other party and its Representatives, to implement the Scheme:

	 	(a)	 	so far as reasonably practicable, in accordance with the Timetable; and
	 
	 	(b)	 	in accordance with all laws and regulations applicable in relation to the
Scheme.

	5.2	 	CCV’s specific obligations
	 
	 	 	Without limiting clause 5.1, CCV must:

	 	(a)	 	prepare the Scheme Booklet, which must contain:

	 	(i)	 	all information required under the Corporations Act and all other
applicable laws, RG 60 and the ASX Listing Rules;
	 
	 	(ii)	 	a prominent statement that the Independent Directors unanimously
recommend that CCV Shareholders vote in favour of the Scheme Resolution and the
General Meeting Resolution in the absence of a Superior Proposal; and
	 
	 	(iii)	 	a prominent statement that the Independent Directors intend to
vote in favour of the Scheme Resolution and the General Meeting Resolution all
CCV Shares in which they have a Relevant Interest and over which they have power
to control voting in the absence of a Superior Proposal;

	 	(b)	 	promptly provide any assistance and information reasonably requested by the
Independent Expert to enable it to promptly prepare the Independent Expert’s Report;
	 
	 	(c)	 	provide to EZCORP drafts of the Scheme Booklet in a timely manner, provide
EZCORP with a reasonable opportunity to review those drafts and consider in good faith
the reasonable comments of EZCORP and its Representatives when preparing revised drafts
of the Scheme Booklet;
	 
	 	(d)	 	as soon as practicable after preparation of an advanced draft of the Scheme
Booklet suitable for review by ASIC:

	 	(i)	 	provide that draft to EZCORP; and
	 
	 	(ii)	 	procure that a meeting of the CCV Board is convened to consider
that draft, and, if appropriate, approve it for submission to ASIC for review;

19

 

	 	(e)	 	as soon as practicable after the approval of the CCV Board referred to in
subclause 5.2(d) and receipt of the confirmation from EZCORP referred to in subclause
5.3(e), provide to ASIC a copy of the advanced draft of the Scheme Booklet as required
by section 411(2) of the Corporations Act;
	 
	 	(f)	 	keep EZCORP reasonably informed of any matters raised by ASIC in relation to
the Scheme Booklet, and use best endeavours, in co-operation with EZCORP, to resolve
any such matters;
	 
	 	(g)	 	apply to ASIC for the production of a statement pursuant to section 411(17)(b)
of the Corporations Act stating that ASIC has no objection to the Scheme;
	 
	 	(h)	 	as soon as practicable after the end of the review by ASIC of the Scheme
Booklet, procure that a meeting of the CCV Board is convened to consider the Scheme
Booklet, and, if appropriate, approve it for lodgement with the Court and, subject to
approval by the Court, for dispatch to CCV Shareholders;
	 
	 	(i)	 	apply to the Court for an order under section 411(1) of the Corporations Act
directing CCV to convene the Scheme Meeting, and if the Court makes that order convene
the Scheme Meeting in accordance with that order;
	 
	 	(j)	 	take all reasonable measures necessary to cause ASIC to register the
explanatory statement relating to the Scheme;
	 
	 	(k)	 	take all steps necessary to convene the General Meeting in accordance with
CCV’s constitution including, as required, despatching the notice of meeting and
holding the General Meeting;
	 
	 	(l)	 	liaise with ASX and use its best endeavours to have ASX put in place special
trading arrangements (whereby Scheme Shares are allocated a distinctive market
quotation) with effect from the Scheme Record Date (or such other date or time as ASX
determines is appropriate) to facilitate the identification (and transfer pursuant to
this Scheme) of the Scheme Shares and the continued trading of the balance of their
Scheme Holding (on a deferred settlement basis if required by ASX);
	 
	 	(m)	 	if required, amend clause 5 of the Scheme to reflect any special trading
arrangements put in place by ASX as contemplated by clause 5.2(l) (and CCV will agree
to the making of such amendments to the Scheme);
	 
	 	(n)	 	if a Nominated Subsidiary is nominated by EZCORP, make all necessary amendments
to the Scheme such that, under the Scheme, the Scheme Shares will be transferred by the
Scheme Shareholders to the Nominated Subsidiary rather than EZCORP and, if requested by
EZCORP, clause 6 of the Scheme will be amended such that the Nominated Subsidiary will
have the benefit of the warranties set out therein (and CCV will agree to the making of
such amendments to the Scheme);
	 
	 	(o)	 	advise EZCORP if at any time before the Second Court Date, CCV becomes aware
either:

	 	(i)	 	of new information which, were it known at the time the Scheme
Booklet was prepared should have been included in the Scheme Booklet; or
	 
	 	(ii)	 	that any part of the CCV Information in the Scheme Booklet is
misleading or deceptive in any material respect (whether by omission or
otherwise),

20

 

	 	 	 	and, if CCV or EZCORP considers that supplementary disclosure is required,
provide supplementary disclosure to CCV Shareholders;

	 	(p)	 	comply with any reasonable request by EZCORP to give directions in accordance
with Part 6C.2 of the Corporations Act and procure that its share registry provides to
EZCORP, in the form reasonably requested by EZCORP, all information about the Scheme
and CCV Shareholders (including the results of directions given by CCV under Part 6C.2
of the Corporations Act) which EZCORP reasonably requires in order to:

	 	(i)	 	canvas approval of the Scheme Resolution by CCV Shareholders;
	 
	 	(ii)	 	facilitate the provision of the Scheme Consideration, including
details of the Register (including any CHESS sub-register and issuer sponsored
sub-register) on the Scheme Record Date, and details of any elections made by
Scheme Shareholders under clause 3.4(b) of the Scheme; or
	 
	 	(iii)	 	determine whether any Scheme Shareholders have engaged in
shareholding splitting or division as described in clause 3.5(c) of the Scheme,

	 	 	 	other than information that CCV’s share registry is prohibited from providing by
law or by the operating rules of any financial market or clearing and settlement
facility;

	 	(q)	 	if the Scheme Resolution is not passed by reason only of the non-satisfaction
of the Headcount Test and either EZCORP or CCV considers, acting reasonably, that Share
Splitting or some abusive or improper conduct may have caused or contributed to the
Headcount Test not having been satisfied, apply for an order of the Court contemplated
by section 411(4)(a)(ii)(A) of the Corporations Act to disregard the Headcount Test;
	 
	 	(r)	 	if the Scheme Resolution is passed by the requisite majorities of CCV
Shareholders (as may be modified by the Court in accordance with section
411(4)(a)(ii)(A) of the Corporations Act), promptly apply to the Court for an order
approving the Scheme as approved by CCV Shareholders at the Scheme Meeting;
	 
	 	(s)	 	provide to the Court on the Second Court Date a certificate in relation to the
satisfaction of the Conditions contemplated by the terms of the Scheme, in accordance
with clause 3.10;
	 
	 	(t)	 	if the Court approves the Scheme in accordance with sections 411(4)(b) and
411(6) of the Corporations Act:

	 	(i)	 	promptly lodge with ASIC an office copy of the order approving
the Scheme in accordance with section 411(10) of the Corporations Act;
	 
	 	(ii)	 	close the Register as at the Scheme Record Date to determine the
identity of the Scheme Shareholders and their entitlements to the Scheme
Consideration;
	 
	 	(iii)	 	subject to EZCORP satisfying its obligations under clauses
4.2(a) and 5.3, on the Implementation Date, effect transfer of the Scheme Shares
to EZCORP in accordance with the Scheme; and
	 
	 	(iv)	 	do all other things contemplated by or necessary to give effect
to the Scheme and the orders of the Court; and

	 	(u)	 	use its reasonable endeavours to ensure that the CCV Shares continue to be
quoted (even if suspended from trading) on ASX.

21

 

	5.3	 	EZCORP’s specific obligations
	 
	 	 	Without limiting clause 5.1, EZCORP must:

	 	(a)	 	prepare and provide to CCV for inclusion in the Scheme Booklet all information
relating to:

	 	(i)	 	EZCORP;
	 
	 	(ii)	 	the arrangements EZCORP has in place to fund the Scheme
Consideration;
	 
	 	(iii)	 	EZCORP’s intentions in relation to the assets, business and
employees of CCV if the Scheme is approved and implemented; and
	 
	 	(iv)	 	the Americas JV and the Global JV,

	 	 	 	required under the Corporations Act and all other applicable laws, RG 60 and the
ASX Listing Rules to be included in the Scheme Booklet (the EZCORP Information);

	 	(b)	 	provide to CCV drafts of the EZCORP Information in a timely manner, provide CCV
with a reasonable opportunity to review those drafts and consider in good faith the
reasonable comments of CCV and its Representatives when preparing revised drafts of
that information;
	 
	 	(c)	 	subject to the Independent Expert entering into arrangements reasonably
required by EZCORP, provide any assistance and information reasonably requested by CCV
or by the Independent Expert in connection with the preparation of the Independent
Expert’s Report;
	 
	 	(d)	 	as soon as practicable after receipt of any draft of the Scheme Booklet from
CCV review and provide comments on that draft;
	 
	 	(e)	 	as soon as practicable after:

	 	(i)	 	receipt from CCV of the advanced draft of the Scheme Book
referred to in subclause 5.2(d)(i); and
	 
	 	(ii)	 	CCV has notified EZCORP in writing that ASIC has completed its
review of the Scheme Booklet,

	 	 	 	confirm to CCV in writing whether or not the EZCORP Information in form and
context in which it appears in the Scheme Booklet is accurate and not misleading or
deceptive (whether by omission or otherwise);
	 
	 	(f)	 	before the First Court Date deliver to CCV:

	 	(i)	 	an executed copy of the Deed Poll; and
	 
	 	(ii)	 	a consent to the inclusion of the EZCORP Information in the
Scheme Booklet in the form and context it appears;

	 	(g)	 	advise CCV if at any time before the Second Court Date, EZCORP becomes aware
either:

	 	(i)	 	of new information which, were it known at the time the Scheme
Booklet was prepared should have been included in the EZCORP Information that is
included in the Scheme Booklet; or

22

 

	 	(ii)	 	that any part of the EZCORP Information is misleading or
deceptive in a material respect (whether by omission or otherwise),

	 	 	 	together with such additional information as CCV requires to determine whether
supplementary disclosure to CCV Shareholders is required;
	 
	 	(h)	 	provide to the Court on the Second Court Date a certificate in relation to the
satisfaction of the Conditions contemplated by the terms of the Scheme, in accordance
with clause 3.10;
	 
	 	(i)	 	if the Scheme becomes Effective, provide or procure the provision of the Scheme
Consideration in accordance with clause 4.2(a) and the Deed Poll, and otherwise satisfy
its obligations under the Deed Poll; and
	 
	 	(j)	 	accept a transfer of the Scheme Shares as contemplated by clause 4.2(b).

	5.4	 	Appeal if orders not made
	 
	 	 	If the Court refuses to make any order sought by CCV under clause 5.2, EZCORP and CCV
must consult in good faith as to whether to appeal the Court’s decision and if, in the
opinion of independent Senior Counsel, practising in New South Wales or Western Australia in
the area of corporate law, obtained by either EZCORP or CCV within 10 Business Days after
the Court’s decision, there are reasonable prospects of successfully appealing the Court’s
decision:

	 	(a)	 	CCV must appeal the Court’s decision unless EZCORP and CCV otherwise agree in
writing;
	 
	 	(b)	 	the cost of any such appeal is to be borne by CCV and EZCORP in equal
proportions; and
	 
	 	(c)	 	if any such appeal is made the parties must amend this agreement so that the
Long Stop Date is deferred by the number of days between the date on which the Court
refused to make the relevant order and the date on which the appeal from that refusal
is finally determined, or to such other date as EZCORP and CCV agree in writing.

	5.5	 	Court proceedings
	 
	 	 	In relation to each Court hearing held or required under this clause 5 to be held in
relation to the Scheme (including any appeal under clause 5.4):

	 	(a)	 	CCV must:

	 	(i)	 	consult with EZCORP in relation to all documents required to be
filed with or presented to the Court (including originating process, affidavits,
submissions and draft Court orders) and must consider in good faith comments
from EZCORP and its Representatives on those documents;
	 
	 	(ii)	 	engage appropriate counsel to represent it at the hearing; and
	 
	 	(iii)	 	consent to the separate representation of EZCORP by counsel and
any application by EZCORP for leave of the Court to be represented; and

	 	(b)	 	EZCORP must engage counsel to represent it at the hearing and though its
counsel undertake (if requested by the Court) to do all such things and take all such
steps within its power as may be reasonably necessary in order to ensure the fulfilment
of its obligations under the Scheme.

23

 

	5.6	 	Responsibility statements
	 
	 	 	The Scheme Booklet must contain responsibility statements, in a form to be agreed
between EZCORP and CCV, containing words to the effect that:

	 	(a)	 	CCV has provided, and is responsible for, the CCV Information in the Scheme
Booklet, and that none of EZCORP and its directors, officers and employees assumes any
responsibility for the accuracy or completeness of the CCV Information (other than the
Nominee Directors who shall have the same level of responsibility as the other
directors of CCV in relation to CCV Information that does not relate to the
recommendation of the Independent Directors or the reasons for their recommendation);
	 
	 	(b)	 	EZCORP has provided, and is responsible for, the EZCORP Information, and that
none of CCV and its directors, officers and employees assumes any responsibility for
the accuracy or completeness of the EZCORP Information (other than the Nominee
Directors who, as directors of EZCORP, will have the same level of responsibility as
the other directors of EZCORP); and
	 
	 	(c)	 	the Independent Expert has provided and is responsible for the Independent
Expert’s Report, and that none of EZCORP, CCV and their respective directors, officers
and employees assumes any responsibility for the accuracy or completeness of the
Independent Expert’s Report.

	5.7	 	Board changes

	 	(a)	 	On the Implementation Date, CCV must, subject to receiving consents to
appointment as director from the relevant persons, take all actions necessary to cause
the CCV Board to be comprised of the following members:

	 	(i)	 	Sterling B. Brinkley, Paul E. Rothamel, Mark Kuchenrither and
Stephen A. Stamp (or if any of them are for any reason unwilling or unable to be
appointed as a member of the CCV Board, another person nominated in writing by
EZCORP);
	 
	 	(ii)	 	Peter Cumins;
	 
	 	(iii)	 	Reginald Webb (who shall continue to serve as Non-Executive Chairman); and
	 
	 	(iv)	 	John Yeudall.

	 	(b)	 	On or before the Implementation Date, CCV must use its best endeavours to
ensure that, unless otherwise agreed by EZCORP in writing, each member of the CCV Board
(other than the Directors appointed in accordance with clauses 5.7(a) above) resigns
from the CCV Board effective as of the Implementation Date and acknowledges that the
director has no claim against the CCV Group other than for accrued directors fees and
expenses.
	 
	 	(c)	 	On or before the Implementation Date, EZCORP must take all action necessary to
procure the resignation of the Nominee Directors from the CCV Board so that the CCV
Board can be constituted in accordance with clause 5.7(a) above.

24

 

	6.	 	RECOMMENDATION OF SCHEME
	 
	6.1	 	Public announcement
	 
	 	 	On the date of this agreement, CCV will issue an announcement in the form agreed by the
parties prior to signing this agreement. The announcement will state that each Independent
Director intends to recommend that CCV Shareholders vote in favour of the Scheme Resolution
and the General Meeting Resolution in the absence of a Superior Proposal and subject to the
Independent Expert’s Report concluding that the Scheme is in the best interests of CCV
Shareholders.
	 
	6.2	 	Recommendation by Independent Directors
	 
	 	 	Subject to clause 6.3, CCV undertakes to EZCORP to ensure that the Independent Directors:

	 	(a)	 	will unanimously recommend in the Scheme Booklet that CCV Shareholders vote in
favour of the Scheme Resolution and the General Meeting Resolution in the absence of a
Superior Proposal;
	 
	 	(b)	 	will give reasons for that recommendation in the Scheme Booklet;
	 
	 	(c)	 	will not change or withdraw that recommendation and will not make any public
statement which would suggest that the Scheme is no longer recommended; and
	 
	 	(d)	 	make a statement in the Scheme Booklet that they intend to vote in favour of
the Scheme Resolution and the General Meeting Resolution all CCV Shares in which they
have a relevant interest and over which they has the power to control voting, in the
absence of a Superior Proposal.

	6.3	 	Change to recommendation
	 
	 	 	The obligations of CCV under clause 6.2 cease to apply if:

	 	(a)	 	the Independent Expert’s Report concludes that the Scheme is not in the best
interests of CCV Shareholders; or
	 
	 	(b)	 	the Independent Directors, after having first obtained advice from CCV’s legal
advisers and, if appropriate, CCV’s financial advisers, determine that a Competing
Proposal constitutes a Superior Proposal.

	7.	 	EXCLUSIVITY
	 
	7.1	 	No-shop restriction
	 
	 	 	During the Exclusivity Period CCV must ensure that neither it nor any of its
Representatives directly or indirectly initiates, solicits or encourages any enquiries,
negotiations or discussions, or communicates any intention to do any of these things, with a
view to a Competing Proposal, or which would reasonably be expected to lead to a Competing
Proposal.
	 
	7.2	 	No-talk restriction
	 
	 	 	Subject to clause 7.6, during the Exclusivity Period CCV must ensure that neither it
nor any of its Representatives directly or indirectly enters into, continues or participates
in negotiations or discussions in relation to a Competing Proposal, or which would
reasonably be expected to lead to a Competing Proposal, even if:

25

 

	 	(a)	 	the Competing Proposal was not directly or indirectly initiated,
solicited, facilitated or encouraged by CCV or any of its Representatives; or
	 
	 	(b)	 	that person has publicly announced its Competing Proposal.

	7.3	 	No due diligence

	 	(a)	 	Without limiting clause 7.2 but subject to clause 7.6, during the
Exclusivity Period CCV must ensure that neither it nor any of its Representatives:

	 	(i)	 	directly or indirectly solicits, facilitates or encourages
any party (other than EZCORP or its Representatives) to undertake a due
diligence investigation on any member of the CCV Group; or
	 
	 	(ii)	 	makes available to any person (other than EZCORP or its
Representatives) or permits any such person to receive any non-public
information relating to any member of the CCV Group,

	 	 	 	in connection with such person formulating, developing, finalising or assisting in
the formulation, development or finalisation of a Competing Proposal.
	 
	 	(b)	 	This clause 7.3 does not prevent CCV providing information to the ASX or
CCV’s auditors and advisers acting in that capacity in the ordinary course of business
(and not to undertake the activities referred to in clause 7.5(a)) or in order to
implement the Scheme.

	7.4	 	Notification
	 
	 	 	Subject to clause 7.6, during the Exclusivity Period CCV must immediately inform EZCORP if
CCV or any of its Representatives is approached by any person to discuss or engage in any
activity that would breach the obligations of CCV under any of clauses 7.1, 7.2 and 7.3 (or
would do so if it were not for clause 7.6) and must as soon as reasonably practicable
provide in writing to EZCORP details of the Competing Proposal sought to be discussed by the
person making the approach or in relation to which the person making the approach wishes to
engage in such activity, but not the identity of the person making the approach.
	 
	7.5	 	EZCORP’s right to respond

	 	(a)	 	If CCV receives a Competing Proposal and, as a result, any
Independent Director proposes to change or withdraw their statement that they
consider the Scheme to be in the best interests of CCV Shareholders:

	 	(i)	 	CCV Group must not, until the expiration of 3 Business Days
following the receipt of a notice under clause 7.4 by EZCORP, enter into any
legally binding agreement with respect to the Competing Proposal or otherwise
progress the Competing Proposal including by permitting the bidder to undertake
due diligence investigations on the CCV Group (except where permitted pursuant
to clause 7.6); and
	 
	 	(ii)	 	EZCORP will have the right, but not the obligation, at any
time until the expiration of 3 Business Days following receipt of that notice
from CCV, to offer to amend the terms of the Scheme or the Joint Venture
Agreements, or propose any other transaction (each an EZCORP Counterproposal),
and if EZCORP does so, the Independent Directors must review the EZCORP
Counterproposal in good faith to

26

 

	 	 	 	determine whether it is more favourable to CCV Shareholders than the
Competing Proposal.

	 	(b)	 	If the Independent Directors determine in good faith that the EZCORP
Counterproposal is more favourable to CCV Shareholders than the Competing Proposal,
then:

	 	(i)	 	if the EZCORP Counterproposal contemplates an amendment to
the Scheme or the Joint Venture Agreements, the parties must enter into an
agreement amending this agreement and reflecting the EZCORP Counterproposal;
	 
	 	(ii)	 	if the EZCORP Counterproposal contemplates any other
transaction, CCV must make an announcement to ASX as soon as reasonably
practicable which states that the Independent Directors recommend the EZCORP
Counterproposal, and the parties must pursue implementation of the EZCORP
Counterproposal in good faith; and
	 
	 	(iii)	 	CCV must not, and must procure that the Independent
Directors do not publicly state that they intend to recommend, or enter into an
agreement, commitment, arrangement or undertaking relating to that Competing
Proposal.

	 	(c)	 	For the purpose of this clause 7.5, each successive material
modification of any Competing Proposal (including any change to price) will be
deemed to constitute a new Competing Proposal and the provisions of clauses 7.4 and
7.5 will apply to each such new modified proposal.

	7.6	 	Exceptions
	 
	 	 	The restrictions in clauses 7.2 and 7.3 and the notification obligations in clause 7.4 do
not apply in respect of a bona fide Competing Proposal if the Independent Directors, after
having first obtained advice from CCV’s legal advisers and, if appropriate, CCV’s financial
advisers, have determined, in good faith that:

	 	(a)	 	the Competing Proposal in respect of which those restrictions and
notification obligations would otherwise apply is a Superior Proposal, or may
reasonably be expected to lead to a Superior Proposal; and
	 
	 	(b)	 	failing to respond to such Competing Proposal or providing the notification
referred to in clause 7.4 (as applicable) would be likely to constitute a breach of the
fiduciary or statutory duties of members of the CCV Board.

	8.	 	OTHER OBLIGATIONS DURING EXCLUSIVITY PERIOD
	 
	8.1	 	Access and information
	 
	 	 	During the Exclusivity Period and subject to the Protocol, CCV must procure that EZCORP and
its Representatives are given reasonable access to the properties, books and records and
management of the CCV Group for the purposes of:

	 	(a)	 	implementing the Transaction;
	 
	 	(b)	 	implementing the Americas JV and the Global JV;
	 
	 	(c)	 	providing information to EZCORP’s financiers; and

27

 

	 	(d)	 	any other purpose agreed between EZCORP and CCV,

	 	 	unless the provision of such access is prohibited by law or any confidentiality obligations
owed to third parties.
	 
	8.2	 	Access to board papers and CCV directors
	 
	 	 	Without limiting clause 8.1, during the Exclusivity Period and subject to the Protocol, CCV
must provide EZCORP with copies of the papers provided to the CCV Board and monthly
management accounts for CCV and members of the CCV Group within 3 Business Days after they
are provided to CCV Board members unless the Independent Directors form the view that to do
so would not be in the best interests of CCV or would not be appropriate given the
negotiations taking place in respect of the Americas JV and the Global JV.
	 
	8.3	 	Conduct of business
	 
	 	 	During the Exclusivity Period, CCV must procure that each member of the CCV Group carries on
its businesses in the ordinary and usual course and in substantially the same manner as
conducted at the date of this agreement and must use its best endeavours to procure that:

	 	(a)	 	no CCV Prescribed Occurrence occurs between the date of this agreement and
8:00 am on the Second Court Date;
	 
	 	(b)	 	each member of the CCV Group:

	 	(i)	 	preserves its relationships with all Authorities, customers,
suppliers, licensors, franchisees, licensees, joint venturers and others with
whom they have business dealings;
	 
	 	(ii)	 	preserves intact its current business organisation and
maintains its assets in good working order;
	 
	 	(iii)	 	keeps available the services of its key employees and
procures that those key employees continue to conduct the business and affairs
of the CCV Group in the ordinary and usual course;
	 
	 	(iv)	 	does not enter or agree to enter into any unusual or abnormal
contract or commitment; and
	 
	 	(v)	 	does not reduce its insurance coverage or permit any of its
insurances to lapse or do anything that would make any policy of insurance void
or voidable.

	8.4	 	Exceptions
	 
	 	 	The obligations of CCV under clause 8.3 do not apply to actions undertaken by any member of
the CCV Group:

	 	(a)	 	which are required to be undertaken pursuant to this agreement or in
accordance with existing contractual obligations fairly disclosed in writing by CCV to
EZCORP before the date of this agreement; or
	 
	 	(b)	 	with the prior written consent of EZCORP.

28

 

	9.	 	PARTICULAR OBLIGATIONS OF PARTIES
	 
	9.1	 	JV Companies and Joint Venture Agreements

	 	(a)	 	EZCORP and CCV must take all steps reasonably necessary to form and
incorporate the Global JV and the Americas JV (the JVCos),
	 
	 	(b)	 	The JVCos must be incorporated as soon as practicable following the date of
this agreement (but in any event no later than 8:00am on the First Court Date) in
jurisdictions to be agreed by EZCORP and CCV.
	 
	 	(c)	 	Before the Scheme Meeting, EZCORP and CCV must:

	 	(i)	 	execute, and must procure that the JVCos execute, the Joint
Venture Agreements (which are conditional on implementation of the Scheme); and
	 
	 	(ii)	 	do things all things necessary, and must procure that the
JVCos do all things necessary, to amend the constitutions of the JVCos so that
they are consistent with the Joint Venture Agreements.

	9.2	 	Board composition
	 
	 	 	EZCORP agrees to take all reasonable steps to ensure that, with effect from the
Implementation Date and for so long as greater than 10% of the outstanding CCV Shares are
held by persons other than members of the EZCORP Group, at least two members of the CCV
Board will be independent of EZCORP and CCV. The initial directors serving in this capacity
will be Reginald Webb (serving as Non-Executive Chairman) and John Yeudall.
	 
	10.	 	REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS
	 
	10.1	 	CCV representations and warranties
	 
	 	 	CCV represents and warrants to EZCORP (in its own right and as trustee for the EZCORP
Indemnified Parties (other than the Nominee Directors solely in their capacity as a director
of CCV)) that each of the statements set out in Schedule 1 is true, accurate and not
misleading.
	 
	10.2	 	CCV undertakings
	 
	 	 	CCV undertakes to EZCORP (in its own right and as trustee for the EZCORP Indemnified Parties
(other than the Nominee Directors solely in their capacity as a director of CCV)) that:

	 	(a)	 	the CCV Information:

	 	(i)	 	will be prepared in good faith and on the understanding that
each of the EZCORP Indemnified Parties will rely on that information for the
purposes of considering and approving the EZCORP Information in the Scheme
Booklet;
	 
	 	(ii)	 	will comply with the Corporations Act and all other
applicable laws, RG 60 and the ASX Listing Rules; and
	 
	 	(iii)	 	in the form and context in which it appears in the Scheme
Booklet will be true and correct in all material respects and will not be
misleading or deceptive in any material respect (whether by omission or
otherwise) as at the date the Scheme Booklet is sent to CCV Shareholders;

29

 

	 	(b)	 	it will provide to CCV Shareholders and EZCORP all new information of which
it becomes aware after the Scheme Booklet has been sent to CCV Shareholders and before
the date of the Scheme Meeting which is necessary to ensure that the CCV Information,
in the form and context in which it appears in the version of the Scheme Booklet sent
to CCV Shareholders, is not misleading or deceptive in any material respect (whether by
omission or otherwise); and
	 
	 	(c)	 	all information provided by or on behalf of CCV to the Independent Expert
will be provided in good faith and on the understanding that the Independent Expert
will rely upon that information for the purpose of preparing the Independent Expert’s
report for inclusion in the Scheme Booklet, will be true and correct in all material
respects and will not be misleading or deceptive in any material respect (whether by
omission or otherwise).

	10.3	 	Indemnity by CCV
	 
	 	 	Without prejudice to any other remedy available to any EZCORP Indemnified Party or the
ability of any EZCORP Indemnified Party to claim damages on any other basis that is
available to it, CCV agrees with EZCORP (in its own right and as trustee for the EZCORP
Indemnified Parties (other than the Nominee Directors solely in their capacity as a director
of CCV)) to indemnify and keep indemnified the EZCORP Indemnified Parties from and against,
and must pay to EZCORP on demand an amount equal to, all losses, damages, costs, expenses,
charges, penalties and other liabilities directly or indirectly incurred or suffered by the
EZCORP Indemnified Parties arising out of or in connection with:

	 	(a)	 	any matter or circumstance that results in any of the representations or
warranties in clause 10.1 being untrue, inaccurate or misleading; or
	 
	 	(b)	 	any breach of the undertakings in clause 10.2.

	10.4	 	EZCORP warranties
	 
	 	 	EZCORP represents and warrants to CCV (in its own right and as trustee for the CCV
Indemnified Parties) that each of the following statements is true, accurate and not
misleading:

	 	(a)	 	it is a corporation validly existing under the laws of its place of
incorporation;
	 
	 	(b)	 	it has the power to execute and deliver and to perform its obligations
under this agreement, and has taken all necessary corporate action to authorise such
execution and delivery and the performance of such obligations;
	 
	 	(c)	 	its obligations under this agreement are legal, valid and binding
obligations enforceable in accordance with their terms;
	 
	 	(d)	 	the execution and delivery by it of this agreement does not and will not
conflict with or constitute a default under any provision of:

	 	(i)	 	any material agreement or instrument to which it is a party;

	 	(ii)	 	its constitution; or

	 	(iii)	 	any law, order, judgment, award, injunction, decree, rule or
regulation by which it is bound;

	 	(e)	 	it is not insolvent; and

30

 

	 	(f)	 	has a reasonable basis to expect that it will have funding in place to pay
the Scheme Consideration in accordance with clause 4.2(a) and the Deed Poll.

	10.5	 	EZCORP undertakings
	 
	 	 	EZCORP undertakes to CCV (in its own right and as trustee for the CCV Indemnified Parties)
that:

	 	(a)	 	the EZCORP Information:

	 	(i)	 	will be prepared in good faith and on the understanding that
each of the CCV Indemnified Parties will rely on that information to prepare the
Scheme Booklet and to propose and implement the Scheme in accordance with the
Corporations Act;
	 
	 	(ii)	 	will comply with the Corporations Act and all other
applicable laws, RG 60 and the ASX Listing Rules;
	 
	 	(iii)	 	in the form and context in which it appears in the Scheme
Booklet will be true and correct in all material respects and will not be
misleading or deceptive in any material respect (whether by omission or
otherwise) as at the date the Scheme Booklet is sent to CCV Shareholders; and

	 	(b)	 	it will provide to CCV all new information of which it becomes aware after
the Scheme Booklet has been sent to CCV Shareholders and before the date of the Scheme
Meeting which is necessary to ensure that the EZCORP Information, in the form and
context in which that information appears in the version of the Scheme Booklet sent to
CCV Shareholders, is not misleading or deceptive in any material respect (whether by
omission or otherwise); and
	 
	 	(c)	 	all information provided by or on behalf of EZCORP to the Independent
Expert will be provided in good faith and on the understanding that the Independent
Expert will rely upon that information for the purpose of preparing the Independent
Expert’s Report for inclusion in the Scheme Booklet, will be true and correct in all
material respects and will not be misleading or deceptive in any material respect
(whether by omission or otherwise).

	10.6	 	Indemnity by EZCORP
	 
	 	 	Without prejudice to any other remedy available to any CCV Indemnified Party or the ability
of any CCV Indemnified Party to claim damages on any other basis that is available to it,
EZCORP agrees with CCV (in its own right and as trustee for the CCV Indemnified Parties) to
indemnify and keep indemnified the CCV Indemnified Parties from and against, and to pay to
CCV on demand an amount equal to, all losses, damages, costs, expenses, charges, penalties
and other liabilities directly or indirectly incurred or suffered by the CCV Indemnified
Parties arising out of or in connection with:

	 	(a)	 	any matter or circumstance that results in any of the representations or
warranties in clause 10.4 being untrue, inaccurate or misleading; or
	 
	 	(b)	 	any breach of the undertakings in clause 10.5.

	10.7	 	Timing of representations and warranties
	 
	 	 	Each of the representations and warranties in clauses 10.1 and 10.4 is given:

	 	(a)	 	as at the date of this agreement and as at 8:00 am on the Second Court
Date; or

31

 

	 	(b)	 	if the representation or warranty is expressly stated to be given at a
different time, at the time the representation or warranty is expressed to be given.

	10.8	 	Notice
	 
	 	 	If EZCORP or CCV becomes aware of a matter or circumstance which results in or is likely to
result in any of the representations or warranties given by that party in this clause 8
being untrue, inaccurate or misleading or a breach of any undertaking given by that party in
this clause 8, it must give notice to the other specifying that matter or circumstance in
reasonable detail as soon as practicable. The obligation of EZCORP or CCV to give notice as
contemplated by this clause 10.8 in relation to any matter or circumstance does not, for the
avoidance of doubt, prevent the other party from making any claim arising from that matter
or circumstance.

	11.	 	TERMINATION
	 
	11.1	 	Material breach
	 
	 	 	Without prejudice to clause 3.8, either EZCORP or CCV (the Terminating Party) may terminate
this agreement at any time before the start of the Court hearing on the Second Court Date by
giving written notice to the other if:

	 	(a)	 	the other is in material breach of any obligation under this agreement
(including the undertakings in clause 10) or any representation or warranty given by
the other under this agreement is or will at 8:00 am on the Second Court Date be
untrue, inaccurate or misleading in any material respect other than as a result of a
breach of this agreement by the Terminating Party;
	 
	 	(b)	 	the Terminating Party has given notice to the other of its intention to
terminate this agreement under this clause 11.1 and setting out the details of the
matters or circumstances giving rise to the termination right; and
	 
	 	(c)	 	in the case of a material breach of any obligation under this agreement
which is capable of remedy, that breach has not been remedied to the satisfaction of
the Terminating Party within the period starting on the date of that notice and ending
on the earlier of:

	 	(i)	 	10 Business Days after that date; and
	 
	 	(ii)	 	8:00 am on the Second Court Date.

	11.2	 	Recommendation and Independent Expert’s Report

	 	(a)	 	EZCORP may terminate this agreement at any time before the start of the
Court hearing on the Second Court Date by giving written notice to CCV if:

	 	(i)	 	CCV is in breach of its obligations under clause 6.1 or
clause 6.2; or
	 
	 	(ii)	 	any Independent Director fails to make the recommendation
referred to in clause 6.2 or changes or withdraws that recommendation once made
or makes a public statement to the effect that they no longer support the Scheme
Resolution and the General Meeting Resolution, that is inconsistent with their
support of the Scheme Resolution and the General Meeting Resolution, or that
they support a Competing Proposal; or

32

 

	 	(iii)	 	the Independent Expert’s Report (as may be amended or
updated from time to time) concludes that the Scheme is not in the best
interests of CCV Shareholders.

	 	(b)	 	CCV may terminate this agreement at any time before the start of the Court
hearing on the Second Court Date by giving written notice to EZCORP if:

	 	(i)	 	in the circumstances described in clause 6.3, any of the
Independent Directors do not make the recommendation referred to in clause 6.2
or change or withdraw their recommendation once made; or
	 
	 	(ii)	 	the Independent Expert’s Report (as may be amended or updated
from time to time) concludes that the Scheme is not in the best interests of CCV
Shareholders.

	11.3	 	Other termination events
	 
	 	 	Either EZCORP or CCV may terminate this agreement at any time before the commencement of the
Court hearing on the Second Court Date by giving written notice to the other:

	 	(a)	 	if the Court fails to make orders in accordance with section 411(1) of the
Corporations Act to convene the Scheme Meeting and the parties have complied with
clause 5.4, and either all appeals from such failure are unsuccessful or the parties
determine not to make such an appeal; or
	 
	 	(b)	 	if at any time before 8:00 am on the Second Court Date if a Court or
Authority has taken any action permanently restraining or otherwise prohibiting the
Transaction, or has refused to do any thing necessary to permit the Transaction, and
the action or refusal has become final and cannot be appealed;
	 
	 	(c)	 	if the CCV Shareholders have voted on the Scheme Resolution and have not
agreed to the Scheme at the Scheme Meeting by the requisite majorities;
	 
	 	(d)	 	if the CCV Shareholders have voted on the Scheme Resolution and have not
agreed to the General Meeting Resolution by the requisite majorities; and
	 
	 	(e)	 	in the circumstances set out in, and in accordance with, clause 3.8.

	11.4	 	Effect of termination
	 
	 	 	If this agreement is terminated under clause 3.8 or this clause 11 then:

	 	(a)	 	except for this subclause 11.4 and clauses 1, 10, 13, 14, 15, 16, 17, 18
(other than 18.7) and 19 all the provisions of this agreement will lapse and cease to
have effect; and
	 
	 	(b)	 	neither the lapsing of those provisions nor their ceasing to have effect
will affect any accrued rights or liabilities of either party in respect of damages for
non-performance of any obligation under this agreement falling due for performance
before such lapse and cessation.

	12.	 	RELEASES
	 
	12.1	 	Release of CCV Indemnified Parties
	 
	 	 	EZCORP waives and releases, and must procure that each member of the EZCORP Group waives and
releases, all rights and claims which it may have against any CCV Indemnified Party (other
than CCV) in respect of any misrepresentation, inaccuracy or omission in or from any
information or

33

 

	 	 	advice given by that CCV Indemnified Party in good faith in connection with any
representation, warranties or undertaking given by CCV in this agreement or the preparation
of the CCV Information or the CCV Due Diligence Information. The parties acknowledge that:

	 	(a)	 	CCV has sought and obtained this waiver as agent for and on behalf of each
CCV Indemnified Party and holds the benefit of this clause 12.1 on trust for them; and
	 
	 	(b)	 	the provisions of this clause 12.1 may be enforced by CCV on behalf of any
CCV Indemnified Person and those persons may plead this clause 12.1 in response to any
claim made by any member of the EZCORP Group against them.

	12.2	 	Release of EZCORP Indemnified Parties
	 
	 	 	CCV waives and releases, and must procure that each member of the CCV Group waives and
releases, all rights and claims which it may have against any EZCORP Indemnified Party
(other than EZCORP, the Nominee Directors solely in their capacity as a director of CCV and
where relevant the Nominated Subsidiary) in respect of any misrepresentation, inaccuracy or
omission in or from any information or advice given by that EZCORP Indemnified Party in good
faith in connection with any representation, warranties or undertaking given by EZCORP in
this agreement or the preparation of the EZCORP Information. The parties acknowledge that:

	 	(a)	 	EZCORP has sought and obtained this waiver as agent for and on behalf of
each EZCORP Indemnified Party and holds the benefit of this clause 12.2 on trust for
them; and
	 
	 	(b)	 	the provisions of this clause 12.2 may be enforced by EZCORP on behalf of
any EZCORP Indemnified Person and those persons may plead this clause 12.2 in response
to any claim made by any member of the CCV Group against them.

	13.	 	ANNOUNCEMENTS AND CONFIDENTIALITY
	 
	13.1	 	Agreed form announcements
	 
	 	 	As soon as reasonably practicable after the execution of this agreement, CCV will issue an
announcement in the form agreed with EZCORP, and EZCORP will issue an announcement in the
form agreed with CCV.
	 
	13.2	 	Other announcements
	 
	 	 	Subject to clause 13.3, each party must not make, and must procure that its Representatives
do not make, any public announcement concerning the Scheme, or the terms of or the
negotiations relating to, this agreement other than the announcements referred to in clause
13.1.
	 
	13.3	 	Permitted announcements
	 
	 	 	Nothing in clause 13.2 prevents any announcement being made:

	 	(a)	 	with the written consent of EZCORP and CCV, which must not be unreasonably
withheld or delayed; or
	 
	 	(b)	 	to the extent required by law, any court of competent jurisdiction or any
Authority, but if any party is so required to make any announcement, it must promptly
notify the other parties, where practicable and lawful to do so, before the
announcement is made and must co-operate with the other parties regarding the timing
and content of such announcement or

34

 

	 	 	 	any action which the other parties may reasonably elect to take to challenge the
validity of such requirement.

	13.4	 	Confidentiality
	 
	 	 	The parties acknowledge and agree that:

	 	(a)	 	subject to clause 13.4(b), they continue to be bound by the Confidentiality
Agreement; and
	 
	 	(b)	 	if EZCORP makes a takeover bid under Chapter 6 of the Corporations Act for
the CCV Shares at a price per CCV Share no less than the Scheme Consideration, it may
disclose the minimum information required to enable it to comply with section 636(1) of
the Corporations Act notwithstanding anything contained in this agreement or the
Confidentiality Agreement.

	13.5	 	Insider trading
	 
	 	 	Each party acknowledges that some of the CCV Information, the CCV Due Diligence Information
and the EZCORP Information may be “inside information” within the meaning of Part 7.10,
Division 3 of the Corporations Act (or equivalent laws in other jurisdictions). Each party
agrees that it must not deal, or cause another person to deal, in any shares or other
securities of the other party contrary to Part 7.10, Division 3 of the Corporations Act (or
equivalent laws in other jurisdictions).
	 
	14.	 	GST
	 
	14.1	 	Definitions
	 
	 	 	Words and expressions defined in the GST Act have the same meaning in this clause 14.
	 
	14.2	 	Payments exclusive of GST
	 
	 	 	Unless expressly stated otherwise, all amounts payable under or in connection with this
agreement are exclusive of GST. If GST is payable on any supply made under or in connection
with this agreement:

	 	(a)	 	the supplier must promptly issue to the recipient a GST invoice for that
supply that complies with the GST Act; and
	 
	 	(b)	 	the recipient must pay the supplier an additional amount equal to the GST
payable on that supply at the same time as the consideration for the supply is to be
provided, or, if later, upon issue of the invoice referred to in subclause 14.2(a).

	14.3	 	Adjustments
	 
	 	 	If any adjustment event occurs in respect of a supply to which clause 14.2 applies:

	 	(a)	 	the additional amount paid by the recipient under clause 14.2 must be
recalculated to reflect the occurrence of that adjustment event;
	 
	 	(b)	 	the supplier must provide an adjustment note to the recipient within 10
Business Days after the occurrence of that adjustment event; and
	 
	 	(c)	 	the recipient or the supplier, as the case may be, must pay the other the
difference between the additional amount originally paid and the additional amount
recalculated under this

35

 

	 	 	 	clause 14.3 within 5 Business Days after the adjustment note is provided to the
recipient under subclause 14.3(b)

	14.4	 	Input tax credits
	 
	 	 	Notwithstanding any other provision of this agreement, if an amount payable under or in
connection with this agreement is calculated by reference to any loss, damage, cost,
expense, charges or other liability incurred or suffered by a party, then the amount payable
must be reduced by the amount of any input tax credit to which that party (or the
representative member of any GST group of which that party is a member) is entitled in
respect of the acquisition of any supply to which the loss, damage, cost, expense, charge or
other liability relates.

	15.	 	NOTICES
	 
	15.1	 	Manner of giving notice
	 
	 	 	Any notice or other communication to be given under this agreement must be in writing (which
includes fax and email) and may be delivered or sent by post, fax or email to the party to
be served as follows:

	 	(a)	 	to CCV at:

	 	 	 	 	 

	 

	 	Address:
	 	Level 18, 37 St Georges Terrace Perth WA 6000
	 

	 	Fax number:
	 	+618 9221 9011
	 

	 	Email:
	 	Michael.Cooke@iho.cashconverters.com
	 

	 	For the attention of:
	 	Michael Cooke, General Counsel;

	 	(b)	 	to EZCORP at:

	 	 	 	 	 

	 

	 	Address:
	 	1901 Capital Parkway, Austin, Texas USA 78746
	 

	 	Fax number:
	 	+1 512 314 3404
	 

	 	Email:
	 	tom_welch@ezcorp.com
	 

	 	For the attention of:
	 	Thomas H Welch Jr., General Counsel;

	 	 	or at any such other address or fax number or email address notified for this purpose to the
other parties under this clause. Any notice or other communication sent by post must be
sent by prepaid ordinary post (if the country of destination is the same as the country of
origin) or by airmail (if the country of destination is not the same as the country of
origin).
	 
	15.2	 	When notice given
	 
	 	 	Any notice or other communication is deemed to have been given:

	 	(a)	 	if delivered, on the date of delivery; or
	 
	 	(b)	 	if sent by post, on the third day after it was put into the post (for post
within the same country) or on the fifth day after it was put into the post (for post
sent from one country to another);
	 
	 	(c)	 	if sent by fax, at the time shown in the transmission report as being the
time at which the whole fax was sent; or

36

 

	 	(d)	 	if sent by e-mail, upon the generation of a receipt notice by the
recipient’s server or, if such notice is not so generated, upon delivery to the
recipient’s server,

	 	 	but if the notice or other communication would otherwise be taken to be received after 5.00
pm or on a Saturday, Sunday or public holiday in the place of receipt then the notice or
communication is taken to be received at 9.00 am on the next day that is not a Saturday,
Sunday or public holiday in the place of receipt.
	 
	15.3	 	Proof of service
	 
	 	 	In proving service of a notice or other communication, it shall be sufficient to prove that
delivery was made or that the envelope containing the communication was properly addressed
and posted either by prepaid post or by prepaid airmail, or that the fax was properly
addressed and transmitted or that the e-mail was properly addressed and transmitted by the
sender’s server into the network and there was no apparent error in the operation of the
sender’s e-mail system, as the case may be.
	 
	15.4	 	Documents relating to legal proceedings
	 
	 	 	This clause 15 does not apply in relation to the service of any claim form, notice, order,
judgment or other document relating to or in connection with any proceedings, suit or action
arising out of or in connection with this agreement.
	 
	16.	 	PAYMENTS
	 
	16.1	 	Accounts for payments
	 
	 	 	Unless otherwise expressly stated (or as otherwise agreed in the case of a given payment),
each payment to be made to CCV or EZCORP under this agreement must be made in Australian
dollars by transfer of the relevant amount into the relevant account on or before the date
on which the payment is due. The relevant account for a given payment will be such account
as the payee specifies, not less than 3 Business Days before the date that payment is due,
by giving notice to the payor for the purpose of that payment.
	 
	16.2	 	Default interest
	 
	 	 	If a party defaults in making any payment when due of any sum payable under this agreement,
it must pay interest on that sum from (and including) the date on which payment is due until
(but excluding) the date of actual payment (after as well as before judgment) at an annual
rate of 3% above the Reference Rate on that sum, which interest accrues from day to day and
must be compounded monthly.
	 
	16.3	 	Gross up
	 
	 	 	If either party is required by law to make a deduction or withholding in respect of any sum
payable under this agreement, that party must, at the same time as the sum which is the
subject of the deduction or withholding is payable, make a payment to the other party of
such additional amount as is required to ensure that the net amount received by that party
will equal the full amount which would have been received by it had no such deduction or
withholding been required to be made.

37

 

	17.	 	ENTIRE AGREEMENT
	 
	17.1	 	Entire agreement
	 
	 	 	This agreement contains the entire agreement between the parties relating to the Scheme, and
supersedes all previous agreements, whether oral or in writing, between the parties relating
to these transactions except for the Confidentiality Agreement.
	 
	17.2	 	No reliance
	 
	 	 	Each party acknowledges that in agreeing to enter into this agreement it has not relied on
any express or implied representation, warranty, collateral contract or other assurance
(except those expressly set out in this agreement) made by or on behalf of any other party
before the entering into of this agreement. Each party waives all rights and remedies
which, but for this clause 17.2 might otherwise be available to it in respect of any such
representation, warranty, collateral contract or other assurance including all rights and
remedies under Part 7.10 of the Corporations Act, Part 2 Division 2 of the Australian
Securities and Investments Act 2001(Cth), the Fair Trading Act of any state or territory of
Australia or any corresponding or equivalent provision of any legislation having effect in
any relevant jurisdiction.
	 
	17.3	 	Termination rights
	 
	 	 	Except for the express right of termination contained in clauses 3.8 and 11, no party has
any right to terminate this agreement and the parties waive their rights (if any) to annul,
rescind, dissolve, withdraw from, cancel or terminate this agreement in any circumstances.
	 
	18.	 	GENERAL
	 
	18.1	 	Amendments
	 
	 	 	This agreement may only be amended in writing and where such amendment is signed by all the
parties.
	 
	18.2	 	Assignments
	 
	 	 	None of the rights or obligations of a party under this agreement may be assigned or
transferred without the prior written consent of the other party.
	 
	18.3	 	Consents
	 
	 	 	Except as otherwise expressly provided in this agreement a party may give or withhold its
consent to any matter referred to in this agreement in its absolute discretion. A party
that gives its consent to any matter referred to in this agreement is not taken to have made
any warranty or representation as to any matter or circumstance connected with the subject
matter of that consent.
	 
	18.4	 	Costs
	 
	 	 	Except as otherwise expressly provided in this agreement, each party must pay the costs and
expenses incurred by it in connection with the entering into and performing it obligations
under this agreement, the Scheme and the Deed Poll.

38

 

	18.5	 	Counterparts
	 
	 	 	This agreement may be executed in counterparts, which taken together must constitute one and
the same agreement, and any party (including any duly authorised representative of a party)
may enter into this agreement by executing a counterpart.
	 
	18.6	 	Exercise and waiver of rights
	 
	 	 	The rights of each party under this agreement:

	 	 (a)	 	may be exercised as often as necessary;
	 
	 	 (b)	 	except as otherwise expressly provided by this agreement, are cumulative
and not exclusive of rights and remedies provided by law; and
	 
	 	 (c)	 	may be waived only in writing and specifically,

	 	 	and delay in exercising or non-exercise of any such right is not a waiver of that right.
	 
	18.7	 	Further assurance
	 
	 	 	Each party undertakes, at the request, cost and expense of the other party, to sign all
documents and to do all other acts, which may be necessary to give full effect to this
agreement.
	 
	18.8	 	No merger
	 
	 	 	Each of the obligations, warranties and undertakings set out in this agreement (excluding
any obligation which is fully performed at Implementation) must continue in force after
Implementation.
	 
	18.9	 	Severability
	 
	 	 	The provisions contained in each clause and sub-clause of this agreement shall be
enforceable independently of each of the others and their validity shall not be affected if
any of the others is invalid.
	 
	18.10	 	Stamp duties and similar charges
	 
	 	 	EZCORP must pay any stamp duties and similar charges and any related interest, fees, fines
or penalties payable in connection with the Scheme or its implementation, or on the transfer
of the Scheme Shares and must indemnify each Scheme Shareholder against all losses damages,
costs, expenses, charges, penalties and other liabilities (including legal and other
professional fees) directly or indirectly incurred or suffered by the Scheme Shareholder
arising out of or in connection with any failure by EZCORP to make such payment.
	 
	19.	 	GOVERNING LAW AND JURISDICTION
	 
	19.1	 	Governing law
	 
	 	 	This agreement and any non-contractual obligations arising out of or in connection with it
is governed by the law applying in Western Australia.

39

 

	19.2	 	Jurisdiction
	 
	 	 	The courts having jurisdiction in Western Australia have non-exclusive jurisdiction to
settle any dispute arising out of or in connection with this agreement (including a dispute
relating to any non-contractual obligations arising out of or in connection with this
agreement) and each party irrevocably submits to the non-exclusive jurisdiction of the
courts having jurisdiction in Western Australia.
	 
	19.3	 	Service of process
	 
	 	 	EZCORP irrevocably appoints Allen & Overy (attention: Aaron Kenavan) of Level 7, Gold Fields
House, 1 Alfred Street, Sydney or, after Allen & Overy’s Sydney offices move to Level 25, 85
Castlereagh Street, Sydney, that address, (or such other address that Allen & Overy notifies
to CCV in writing) as its agent in Australia for service of process.

THIS AGREEMENT has been executed by the parties (or their duly authorised representatives) on the
date stated at the beginning of this agreement.

40

 

SCHEDULE 1

CCV WARRANTIES

	1.	 	General warranties
	 
	1.1	 	Each member of the CCV Group is a corporation validly existing under the laws of its
place of incorporation.
	 
	1.2	 	CCV has the power to execute and deliver and to perform its obligations under this
agreement, and has taken all necessary corporate action to authorise such execution and
delivery and the performance of such obligations.
	 
	1.3	 	CCV’s obligations under this agreement are legal, valid and binding obligations
enforceable in accordance with their terms.
	 
	1.4	 	CCV’s execution and delivery of this agreement does not and will not conflict with or
constitute a default under any provision of:

	 	(a)	 	any agreement or instrument to which it is a party;

	 	(b)	 	its constitution; or

	 	(c)	 	any law, order, judgment, award, injunction, decree, rule or regulation by
which it is bound.

	1.5	 	Neither CCV nor any other member of the CCV Group is insolvent.

	1.6	 	CCV has filed with ASIC and ASX all documents required to be filed with ASIC or ASX
including pursuant to ASX Listing Rule 3.1A (CCV Reporting Documents) and is not relying on
the carve-out in ASX Listing Rule 3.1A to withhold any information from public disclosure
(other than the Transaction) and the CCV Reporting Documents do not contain any untrue
statement of a material fact or omit to state a material fact required to be stated in it,
except to the extent that such statements have been modified or superseded by a later CCV
Reporting Document.

	1.7	 	As at the date of this agreement there are:

	 	(a)	 	379,761,025 CCV Shares on issue;

	 	(b)	 	10,000,000 performance rights over CCV Shares on issue granted to Mr Peter
Cumins pursuant to the CCV EPR Plan, as approved by CCV Shareholders on 30 November
2010;

	 	 	and there are no other shares or other securities (including equity securities, debt
securities or convertible securities) or options or performance rights or other
instruments which are convertible into securities in CCV nor has it offered or agreed to
issue any such shares, securities, options or performance rights or other instruments to
any third party.
	 
	1.8	 	It has terminated all negotiations and discussions (other than with EZCORP and its
Representatives) that relate to any Competing Proposal.
	 
	1.9	 	The execution of this agreement by CCV and EZCORP will not effect any waiver or amendment
of any standstill agreement or arrangement between CCV and any person other than a member of
the EZCORP Group.

41

 

	1.10	 	The CCV Due Diligence Information contains all information regarding matters affecting or
relating to the CCV Group which is not already in the public domain and the disclosure of
which might reasonably be expected to have resulted in EZCORP not entering into this agreement
at all or only entering this agreement on materially different terms and conditions.
	 
	1.11	 	All information it or its Representatives have provided to EZCORP or its Representatives
(whether as part of the CCV Due Diligence Information or otherwise) is true and correct in all
material respects and is not misleading or deceptive in any material respect (whether by
omission or otherwise).
	 
	1.12	 	Each Independent Director has informed CCV that he or she intends to vote in favour of
the Scheme Resolution and the General Meeting Resolution all CCV Shares in which he or she has
a relevant interest and over which he or she has power to control voting in the absence of a
superior proposal and subject to the Independent Expert’s Report concluding that the Scheme is
in the best interests of CCV shareholders.
	 
	2.	 	Period since Last Accounts Balance Date
	 
	2.1	 	There has not since the Last Accounts Balance Date been:

	 	(a)	 	any material adverse change to the financial condition of or in the trading
operations of the CCV Group from that shown in the Last Accounts; or

	 	(b)	 	any material change in the nature, amount, valuation or basis of valuation
of the assets or in the nature or amount of any liabilities of the CCV Group.

	3.	 	Joint Venture Contracts, Assets and Intellectual Property Rights
	 
	3.1	 	Every Joint Venture Contract is valid and binding according to its terms and no party to
a Joint Venture Contract is in material default under the terms thereof.
	 
	3.2	 	The Joint Venture Assets are:

	 	(a)	 	legally and beneficially owned by CCV free of Encumbrances (and, in
particular, no such assets are the subject of any hire purchase agreements or credit
purchase agreement or any agreement for payment of deferred terms); and

	 	(b)	 	not used by any other person.

	3.3	 	CCV:

	 	(a)	 	owns all right, title and interest in and to the Joint Venture Intellectual
Property Rights; and

	 	(b)	 	has not assigned or disposed of any right, title or interest in the Joint
Venture Intellectual Property Rights.

	3.4	 	The Joint Venture Intellectual Property Rights are:

	 	(a)	 	not being presently infringed in any material respect, nor are they the
subject of any material dispute, litigation or expungement application (whether
threatened or otherwise); and

	 	(b)	 	save as fairly disclosed in writing to EZCORP prior to the date of this
agreement, not subject to any licence or authority in favour of any third party and the
exercise of them does not infringe in any material way the rights of any other parties.

42

 

	3.5	 	The Joint Venture Assets, Joint Venture Intellectual Property and the Joint Venture
Contracts together comprise all of the assets other than cash which are owned by CCV and the
other members of the CCV Group and which are required to develop a business similar to the CCV
business:

	 	(a)	 	in all geographical areas outside of Australia, the UK, North America and
South America; and

	 	(b)	 	in all geographical areas within North America and South America.

	4.	 	Litigation
	 
	 	 	No member of the CCV Group is engaged in any material prosecution, litigation or arbitration
proceedings (other than debt collection proceedings in the ordinary course of the CCV
Group’s business). There are no material prosecution, litigation or arbitration proceedings
pending or threatened by or against any member of the CCV Group, nor are there any facts or
disputes which might give rise to any such proceedings.

43

 

EXECUTION PAGE

	 	 	 	 	 	 	 

	EXECUTED by EZCORP, Inc in accordance

	 	 	)	 	 	 
	with its constituent documents and by authority

	 	 	)	 	 	 
	of its directors:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Paul E. Rothamel, President, Chief Executive

	 	 	 	 	 	Thomas H. Welch Jr., Senior Vice President,
	Officer and Director

	 	 	 	 	 	General Counsel and Secretary
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 /s/ Paul E. Rothamel

	 	 	 	 	 	 /s/ Thomas H. Welch, Jr.
	 

	 	 	 	 	 	 
	Signature of director

	 	 	 	 	 	Signature of company secretary/director
	 
	 	 	 	 	 	 
	EXECUTED by Cash Converters

	 	 	)	 	 	 
	International Limited in accordance with

	 	 	)	 	 	[COMMON SEAL]
	section 127 of the Corporations Act 2001 (Cth):

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Reginald Paul Webb

	 	 	 	 	 	Derek Ralph Groom
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name of director

	 	 	 	 	 	Name of company secretary/director
	 
	 	 	 	 	 	 
	/s/ Reginald Paul Webb

	 	 	 	 	 	/s/ Derek Ralph Groom
	 

	 	 	 	 	 	 
	Signature of director

	 	 	 	 	 	Signature of company secretary/director

44

 

ANNEX 1

SCHEME

45

 

SCHEME OF ARRANGEMENT

DATED l 2011

CASH CONVERTERS INTERNATIONAL LIMITED (ACN 069 141 546)

AND

THE HOLDERS OF FULLY PAID ORDINARY SHARES IN THE CAPITAL OF CASH CONVERTERS INTERNATIONAL LIMITED (OTHER THAN THE EXCLUDED SHAREHOLDERS)

 

 

THIS SCHEME OF ARRANGEMENT UNDER SECTION 411 OF THE CORPORATIONS ACT 2001 (CTH) is made on
l 2011

BETWEEN:

	(1)	 	Cash Converters International Limited (ACN 069 141 546) of Level 18, 37 St Georges Terrace
Perth WA (CCV); and

	(2)	 	each person (other than an Excluded Shareholder) who is registered in the Register as the
holder of one or more Scheme Shares as at the Scheme Record Date (Scheme Shareholder).

BACKGROUND:

	(A)	 	CCV is a public company registered in Western Australia and is a company limited by shares.

	(B)	 	As at the date of this Scheme of Arrangement, there were on issue:

	 	(i)	 	379,761,025 CCV Shares; and
	 
	 	(ii)	 	10,000,000 performance rights over CCV Shares on issue granted to Mr Peter
Cumins pursuant to the CCV Executive Performance Rights Plan approved by CCV
Shareholders on 30 November 2010.

	(C)	 	EZCORP, Inc (EZCORP) is a company incorporated in the State of Delaware, USA.

	(D)	 	CCV and EZCORP have entered into the Transaction Implementation Agreement.

	(E)	 	CCV has agreed in the Transaction Implementation Agreement to propose a scheme of arrangement
between CCV and the holders of CCV Shares the effect of which will be that the Scheme Shares
will be transferred to EZCORP or its Nominated Subsidiary and EZCORP will provide or procure
the provision of the Scheme Consideration to Scheme Shareholders.

	(F)	 	EZCORP has executed the Deed Poll under which it has covenanted in favour of Scheme
Shareholders to pay or procure the payment of the Scheme Consideration to the Scheme
Shareholders and perform certain other obligations under the Transaction Implementation
Agreement and the Scheme.

	1.	 	DEFINITIONS AND INTERPRETATION

	1.1	 	Definitions

	 	 	In this document:
	 
	 	 	ASIC means the Australian Securities and Investments Commission;
	 
	 	 	ASX Listing Rules means the official listing rules of the ASX;
	 
	 	 	ASX means ASX Limited or the Australian Securities Exchange, as the context requires;
	 
	 	 	Business Day means a day on which banks are generally open for business in Perth or
Sydney, excluding a Saturday, Sunday or public holiday;
	 
	 	 	CCV Group means CCV and its Controlled Entities;

1

 

	 	 	CCV Share means a fully paid ordinary share in the capital of CCV;

	 	 	CCV Shareholder means a person who is registered in the Register as the holder of one
or more CCV Shares from time to time;
	 
	 	 	CHESS means the Clearing House Electronic Subregister System for the electronic
transfer of securities, operated by ASX Settlement and Transfer Corporation Pty Limited (ABN
49 008 504 532);
	 
	 	 	Controlled Entity means in respect of an entity another entity controlled by it for the
purposes of section 50AA of the Corporations Act;
	 
	 	 	Corporations Act means the Corporations Act 2001 (Cth);
	 
	 	 	Court means the Supreme Court of Western Australia or such other court of competent
jurisdiction under the Corporations Act as EZCORP and CCV agree in writing;
	 
	 	 	Deed Poll means the deed poll entered into by EZCORP in favour of the Scheme
Shareholders dated [l] 2011;
	 
	 	 	Default Proportion means 30%;
	 
	 	 	Effective means, when used in relation to the Scheme, the coming into effect pursuant
to section 411(10) of the Corporations Act of the order of the Court made under section
411(4)(b) in relation to the Scheme, which will not occur before an office copy of the order
of the Court is lodged with ASIC;
	 
	 	 	Effective Date means the date the Scheme becomes Effective;
	 
	 	 	Excluded Shares means any CCV Share held by any member of the EZCORP Group, or any
other person on behalf of or for the benefit of any member of the EZCORP Group;
	 
	 	 	Excluded Shareholder means a person who is registered in the Register as the holder of
one or more Excluded Shares as at the Scheme Record Date;
	 
	 	 	EZCORP means EZCORP Inc, a company incorporated in the State of Delaware, USA and
having its corporate headquarters in Austin, Texas, USA;
	 
	 	 	EZCORP Group means EZCORP and its Controlled Entities (other than members of the CCV
Group);
	 
	 	 	Implementation Date means the date which is 5 Business Days after the Scheme Record
Date, or such other date as EZCORP and CCV agree in writing;
	 
	 	 	Long Stop Date means 30 September 2011, or such later date as EZCORP and CCV agree in
writing;
	 
	 	 	Nominated Subsidiary means a direct or indirect wholly-owned subsidiary of EZCORP
nominated by EZCORP by written notice to CCV no later than 5 Business Days before the Scheme
Booklet is lodged with ASIC;
	 
	 	 	Register means the register of CCV Shares maintained on behalf of CCV in Australia by
Computershare Investor Services Pty Limited ACN 078 279 277 and in the United Kingdom by
Computershare Investor Services PLC;

2

 

	 	 	Scheme Booklet means the explanatory memorandum and accompanying materials to be
approved by the Court and sent to CCV Shareholders in advance of the Scheme Meeting;

	 	 	Scheme Consideration means $0.91 cash in respect of each Scheme Share held by a Scheme
Shareholder;

	 	 	Scheme means this scheme of arrangement subject to any alterations or conditions made
or required by the Court under section 411(6) of the Corporations Act and approved by EZCORP
and CCV in writing;

	 	 	Scheme Holding means, in respect of a Scheme Shareholder, the total number of CCV
Shares registered in the name of that Scheme Shareholder in the Register as at the Scheme
Record Date;

	 	 	Scheme Meeting means the meeting of CCV Shareholders (other than a holder of Excluded
Shares) ordered by the Court to be convened pursuant to section 411(1) of the Corporations
Act in respect of the Scheme;

	 	 	Scheme Proportion means in respect of a Scheme Shareholder either the Default
Proportion, or if clause 3.4 applies, the Scheme Proportion calculated in accordance with
clause 3.4;

	 	 	Scheme Record Date means 5:00 pm on the date which is 5 Business Days after the
Effective Date;

	 	 	Scheme Shareholder means a person who is registered in the Register as the holder of
CCV Shares (other than Excluded Shares) as at the Scheme Record Date;

	 	 	Scheme Shares means the total number of CCV Shares to be transferred to EZCORP under
the Scheme, being a number of CCV Shares equal to the aggregate of the Scheme Proportion of
each Scheme Shareholder’s Scheme Holding;

	 	 	Second Court Date means the first day on which the application made to the Court for an
order pursuant to section 411(4)(b) of the Corporations Act approving the Scheme is heard
or, if the application is adjourned for any reason, the first day on which the adjourned
application is heard;

	 	 	Subsidiary has the meaning given under the Corporations Act.

	 	 	Transaction Implementation Agreement means the transaction implementation agreement
dated 21 March 2011 between CCV and EZCORP;

	 	 	Unmarketable Parcel means a number of CCV Shares that is worth less than $500 based on
the closing price of CCV Shares on ASX on the Scheme Record Date; and

	 	 	Unmarketable Parcel Election means a valid election made by a Scheme Shareholder in the
form included with the Scheme Booklet, and received by CCV’s Australian registry by 12.00pm
on the Scheme Record Date, to retain the balance of their holding of CCV Shares (and not
have their Scheme Proportion adjusted to 100%) in the event that the Scheme Shareholder
would be left with an Unmarketable Parcel as a result of transferring the Scheme Proportion
of its Scheme Holding to EZCORP under the Scheme.

	1.2	 	References to certain other words and terms

	 	 	In this document:

	 	(a)	 	any reference, express or implied, to any legislation in any jurisdiction
includes:

3

 

	 	(i)	 	that legislation as amended, extended or applied by or
under any other legislation made before or after the date of this document;
	 
	 	(ii)	 	any legislation which that legislation re-enacts with or
without modification; and
	 
	 	(iii)	 	any subordinate legislation made before or after the date
of this document under that legislation, including (where applicable) that
legislation as amended, extended or applied as described in subclause
1.2(a)(i), or under any legislation which it re-enacts as described in
subclause 1.2(a)(ii);

	 	(b)	 	references to persons or entities include natural persons, bodies corporate,
partnerships, trusts and unincorporated associations of persons;
	 
	 	(c)	 	references to an individual or a natural person include his estate and personal
representatives;
	 
	 	(d)	 	the schedules and annexes form part of this document and, unless otherwise
indicated, a reference to a clause, subclause, schedule or annex is a reference to a
clause, subclause, schedule or annex of or to this document;
	 
	 	(e)	 	references to a party to this document include the successors or assigns
(immediate or otherwise) of that party;
	 
	 	(f)	 	a reference to any time is, unless otherwise indicated, a reference to that
time in Perth, Australia; and
	 
	 	(g)	 	a reference to $, A$ or dollars is to Australian currency.

	1.3	 	Rules of interpretation and construction

	 	 	In this document:

	 	(a)	 	singular words include the plural and vice versa;
	 
	 	(b)	 	a word of any gender includes the corresponding words of any other gender;
	 
	 	(c)	 	if a word or phrase is defined, other grammatical forms of that word have a
corresponding meaning;
	 
	 	(d)	 	general words must not be given a restrictive meaning by reason of the fact
that they are followed by particular examples intended to be embraced by the general
words;
	 
	 	(e)	 	nothing is to be construed adversely to a party just because that party put
forward this document or a part of this document; and
	 
	 	(f)	 	the headings do not affect interpretation.

	1.4	 	Things required to be done other than on a Business Day

	 	 	Unless otherwise indicated, if the day on which any act, matter or thing is to be done
under this document is a day other than a Business Day, that act, matter or thing must be
done on or by the next Business Day.

4

 

	2.	 	CONDITIONS

	2.1	 	Conditions to the Scheme

	 	 	The Scheme is conditional on and will not come into effect unless and until each of the
following conditions is satisfied:

	 	(a)	 	as at 8:00am on the Second Court Date all the conditions in clause 3.1 of the
Transaction Implementation Agreement (other than the condition relating to the approval
of the Court set out in clause 3.1(a) of the Transaction Implementation Agreement) have
been satisfied or waived in accordance with the terms of the Transaction Implementation
Agreement;
	 
	 	(b)	 	the Transaction Implementation Agreement and the Deed Poll are not terminated
before 8:00am on the Second Court Date; and
	 
	 	(c)	 	the Court approves this Scheme pursuant to section 411(4)(b) of the
Corporations Act with without modification, or with modifications which are acceptable
to both EZCORP and CCV.

	2.2	 	Confirmations in relation to conditions

	 	(a)	 	At the Court hearing on the Second Court Date, each of CCV and EZCORP must
provide to the Court a certificate authorised by its respective board and signed by at
least one of its respective directors, or such other evidence as the Court requests,
confirming (in respect of matters within their knowledge) whether or not the conditions
to this Scheme set out in:

	 	(i)	 	clause 2.1(a) (other than the condition relating to the approval
of the Court set out in clause 3.1(a) of the Transaction Implementation
Agreement); and
	 
	 	(ii)	 	clause 2.1(b),

	 	 	 	have been satisfied or waived as at 8:00am on the Second Court Date.

	 	(b)	 	The certificates provided by CCV and EZCORP under clause 2.2(a) (in the absence
of manifest error) constitute conclusive evidence as to whether or not those conditions
precedent have been satisfied or waived.

	3.	 	THE SCHEME

	3.1	 	Effect of the Scheme

	 	 	If the Scheme becomes Effective then:

	 	(a)	 	subject to EZCORP’s compliance with this clause 3.1 and the Deed Poll, the
Scheme Shares (together with all rights and entitlements attaching to them as at the
Implementation Date) will be transferred to EZCORP without the need for any further act
by any Scheme Shareholder (other than acts performed by CCV as attorney and agent for
Scheme Shareholders under clause 8.1) and CCV will enter EZCORP’s name in the Register
as the holder of the Scheme Shares;
	 
	 	(b)	 	the transfer of Scheme Shares will be taken to be effective on the
Implementation Date;
	 
	 	(c)	 	each Scheme Shareholder will be entitled to receive the Scheme Consideration in
respect of the Scheme Shares which comprise part of its Scheme Holding; and

5

 

	 	(d)	 	EZCORP will pay or procure the payment of the Scheme Consideration to the
Scheme Shareholders in accordance with the terms of this Scheme.

	3.2	 	Acknowledgment and agreement by Scheme Shareholders

	 	 	Each Scheme Shareholder:

	 	(a)	 	acknowledges that the Scheme binds all Scheme Shareholders and agrees to the
transfer of the Scheme Proportion of its Scheme Holding to EZCORP in accordance with
the Scheme; and
	 
	 	(b)	 	consents to CCV doing all things and executing all deeds, instruments, transfer
or other documents as may be necessary, incidental or expedient to the implementation
and performance of the Scheme and CCV, as agent of each Scheme Shareholder, may
sub-delegate its functions under this clause 3.2 to any of its directors and officers,
severally.

	3.3	 	Long Stop Date

	 	 	The Scheme will lapse and be of no further force or effect if the Effective Date does
not occur on or before the Long Stop Date.

	3.4	 	Rounding, Unmarketable Parcels and share splitting

	 	(a)	 	If calculating the Scheme Proportion of a Scheme Holding results in a number of
CCV Shares that is not a whole number, subject to clause 3.4(c), the Scheme Proportion
in respect of that Scheme Holding shall be adjusted so that the number of CCV Shares to
be transferred to EZCORP under the Scheme is rounded up to the nearest whole number.
	 
	 	(b)	 	If a Scheme Shareholder would be left with an Unmarketable Parcel as a result
of transferring the Scheme Proportion of its Scheme Holding to EZCORP under the Scheme,
subject to clauses 3.4(c) and 3.4(d):

	 	(i)	 	if the Scheme Shareholder has not made an Unmarketable
Parcel Election, the Scheme Shareholder’s Scheme Proportion shall be adjusted
to 100% so that EZCORP acquires the balance of the Scheme Holding under the
Scheme; and
	 
	 	(ii)	 	if the Scheme Shareholder has made an Unmarketable Parcel
Election, the Scheme Shareholder shall retain the balance of its Scheme
Holding as an Unmarketable Parcel of CCV Shares.

	 	(c)	 	If EZCORP is of the opinion, formed reasonably, that several Scheme
Shareholders have, before the Scheme Record Date, been party to a shareholding
splitting or division in an attempt to obtain an advantage by reference to an
adjustment provided for under clause 3.4(a) or 3.4(b), EZCORP may direct CCV to
give notice to those Scheme Shareholders:

	 	(i)	 	setting out the names and registered addresses of all of
them;
	 
	 	(ii)	 	stating that opinion; and
	 
	 	(iii)	 	attributing to one of them specifically identified in the
notice the CCV Shares held by all of them,

6

 

	 	 	 	and, after the notice has been so given, the Scheme Shareholder specifically
identified in the notice shall, for the purposes of the Scheme, be taken to hold
all those CCV Shares
and each of the other Scheme Shareholders whose names are set out in the notice
shall, for the purposes of the Scheme, be taken to hold no CCV Shares.
	 
	 	(d)	 	Clause 3.4(b)(i) shall not apply if the application of that clause would
result in the total amount payable by EZCORP under the Scheme exceeding $75,000,000.

	4.	 	IMPLEMENTATION OF THE SCHEME

	4.1	 	Lodgement of orders

	 	 	CCV undertakes to lodge with ASIC an office copy of the Court orders made under section
411(4)(b) of the Corporations Act approving the Scheme as soon as practicable after such
orders are made and in any event on the first Business Day after those orders are made.

	4.2	 	Transfer of Scheme Shares

	 	 	On the Implementation Date, in consideration of and subject to the payment by EZCORP of
the Scheme Consideration in accordance with clause 4.3:

	 	(a)	 	CCV will deliver to EZCORP duly completed and executed share transfer forms (or
a duly completed and executed master share transfer form) to transfer all the Scheme
Shares to EZCORP;
	 
	 	(b)	 	EZCORP will execute the share transfer forms (or master share transfer form),
attend to the stamping of the share transfer forms (or master share transfer form) if
required and deliver the share transfer forms (or master share transfer form) to CCV
for registration; and
	 
	 	(c)	 	as soon as practicable after receipt of the share transfer forms (or master
share transfer form) in accordance with subclause 4.2(b), but in any event, on the
Implementation Date, subject to payment of any stamp duty payable under Australian law
on the transfer of the Scheme Shares (if any), CCV will procure that EZCORP’s name is
entered in the Register as the holder of all the Scheme Shares.

	4.3	 	Provision of Scheme Consideration

	 	 	The obligation of EZCORP to pay or procure the payment of the Scheme Consideration to
Scheme Shareholders will be satisfied as follows:

	 	(a)	 	before 5:00pm on the Business Day before the Implementation Date EZCORP will
deposit (and CCV must procure EZCORP to deposit) in cleared funds into an account
established by or on behalf of CCV the amount equal to the Scheme Consideration
multiplied by the number of Scheme Shares, to be held on trust for Scheme Shareholders
and for the purpose of paying the Scheme Consideration to the Scheme Shareholders in
accordance with the Scheme;
	 
	 	(b)	 	on the Implementation Date, subject to EZCORP having complied with subclause
4.3(a), CCV will pay in respect of each Scheme Shareholder from the account referred to
in clause 4.3(a) the Scheme Consideration in respect of the Scheme Shares that comprise
part of its Scheme Holding. Payments under this clause 4.3(b) must be made by CCV, on
the Implementation Date, by sending or procuring the despatch to each Scheme
Shareholder by prepaid post to the address of the Scheme Shareholder recorded in the
Register as at the 

7

 

	 	 	 	Scheme Record Date (or in the case of any Scheme Shares held in
joint names, to the address of the holder whose name first appears in the Register as
at the Scheme Record Date) of a pre-printed cheque for the aggregate amount payable to that Scheme
Shareholder in accordance with the Scheme.

	 	 	Any interest earned on the amount deposited by EZCORP under clause 4.3(a) will be for
the account of EZCORP.

	4.4	 	Beneficial entitlement to Scheme Shares

	 	 	On and from the time of payment of the Scheme Consideration to the Scheme Shareholders
in accordance with clause 4.3 on the Implementation Date, EZCORP will be beneficially
entitled to the Scheme Shares to be transferred to it under the Scheme pending the entry of
EZCORP’s name in the Register as the holder of the Scheme Shares.

	5.	 	DEALINGS IN CCV SHARES

	5.1	 	Recognition of dealings

	 	 	To establish the identity of the Scheme Shareholders, dealings in Scheme Shares will
only be recognised if:

	 	(a)	 	in the case of dealings of the type to be effected using CHESS, the transferee
is registered in the Register as the holder of the relevant Scheme Shares on or before
the Scheme Record Date; and
	 
	 	(b)	 	in all other cases, registrable transmission applications or transfers in
respect of those dealings are received on or before the Scheme Record Date at the place
where the Register is kept.

	 	 	CCV undertakes to register registrable transmission applications or transfers of Scheme
Shares of the kind referred to in clause 5.1(b) by the Scheme Record Date.

	5.2	 	Dealings after Scheme Record Date

	 	(a)	 	If the Scheme becomes Effective, a holder of Scheme Shares (and any person
claiming through that holder) must not dispose of or purport or agree to dispose of any
Scheme Shares or any interest in them after the Scheme Record Date and any such
disposal will be void and of no legal effect whatsoever.
	 
	 	(b)	 	CCV will not accept for registration or recognise for any purpose any
transmission application or transfer in respect of Scheme Shares received after the
Scheme Record Date, other than a transfer of Scheme Shares to EZCORP pursuant to the
Scheme or any subsequent transfer by EZCORP to its successors in title.

	5.3	 	Maintenance of Register

	 	(a)	 	For the purpose of determining entitlements to the Scheme Consideration, CCV
must maintain the Register (including details of Scheme Shareholders and Scheme Shares)
in accordance with the provisions of this clause 5 until the Scheme Consideration has
been paid to all Scheme Shareholders. The Register in this form will solely determine
entitlements to the Scheme Consideration.

8

 

	 	(b)	 	As soon as possible on or after the Scheme Record Date, and in any event by
5:00pm on the first Business Day after the Scheme Record Date, CCV must make available
to EZCORP in the form EZCORP reasonably requires details of the names, registered
addresses and holdings of Scheme Shares for each Scheme Shareholder as shown in the
Register on the Scheme Record Date.

	6.	 	WARRANTIES

	 	 	Each Scheme Shareholder is deemed to have warranted to CCV, and appointed, authorised
and directed CCV as its attorney and agent to warrant to EZCORP, that:

	 	(a)	 	the CCV Shares registered in the name of that Scheme Shareholder as at the
Scheme Record Date (including all rights and entitlements attaching to them as at the
Implementation Date) which are transferred to EZCORP under the Scheme will, at the date
of transfer, be fully paid and free from all mortgages, charges, liens, encumbrances
and interests of third parties of any kind, whether legal or otherwise, and from all
other restrictions on transfer; and

	 	(b)	 	that Scheme Shareholder has full power and capacity to sell and transfer the
Scheme Proportion of its Scheme Holding (together with all rights and entitlements
attaching to those CCV Shares as at the Implementation Date) to EZCORP under the
Scheme.

	 	 	CCV undertakes to each Scheme Shareholder that it will provide such warranty to EZCORP
on behalf of the Scheme Shareholder.

	7.	 	APPOINTMENT OF PROXY

	 	(a)	 	From the time of payment to Scheme Shareholders pursuant to clause 4.3(b) and
until EZCORP’s name is entered in the Register as the holder of all of the Scheme
Shares, each Scheme Shareholder:

	 	(i)	 	is deemed to have irrevocably appointed CCV as attorney and
agent (and directed CCV in such capacity) to appoint any director or officer
of EZCORP as sole proxy and, where applicable, corporate representative, of
that Scheme Shareholder to attend shareholders’ meetings of CCV, exercise the
votes attaching to the Scheme Shares registered in the name of that Scheme
Shareholder and sign shareholders’ resolutions of CCV;
	 
	 	(ii)	 	undertakes not to exercise the votes attaching to the
Scheme Shares registered in the name of that Scheme Shareholder or sign any
shareholders’ resolutions of CCV as holder of the Scheme Shares, whether in
person, by proxy or corporate representative (other than pursuant to this
clause 7);
	 
	 	(iii)	 	must take all other actions as registered holder of those
Scheme Shares as EZCORP reasonably directs; and
	 
	 	(iv)	 	acknowledges and agrees that in exercising the powers
conferred under this clause 7, EZCORP and any director of officer of EZCORP
may act in the best interests of EZCORP as the intended registered holder of
the Scheme Shares.

	 	(b)	 	CCV undertakes in favour of each Scheme Shareholder that it will appoint a
director or officer of EZCORP as sole proxy and, where applicable, corporate
representative, in accordance with clause 7(a)(i).

9

 

	8.	 	GENERAL SCHEME PROVISIONS

	8.1	 	Appointment of attorney

	 	 	Each Scheme Shareholder, without the need for any further act, irrevocably appoints CCV
and each of its directors, officers and secretaries (jointly and severally) as its attorney
and agent for the purpose of:

	 	(a)	 	executing any document necessary or desirable to give effect to the Scheme
including without limitation, a proper instrument of transfer of its Scheme Shares for
the purposes of section 1071B of the Corporations Act (which may be a master transfer
of all the Scheme Shares); and

	 	(b)	 	enforcing the Deed Poll against EZCORP.

8.2 Consent to amendments

	 	 	If the Court proposes to approve the Scheme subject to any amendments or conditions,
CCV may by its counsel consent on behalf of all persons concerned (including the Scheme
Shareholders) to those amendments or conditions to which EZCORP has consented, provided that
in no circumstances will CCV be obliged to do so.

	8.3	 	Costs and stamp duties

	 	 	CCV must pay the costs and expenses of the Scheme, except that EZCORP must pay its own
costs and expenses in relation to the Scheme and any stamp duties and similar charges
payable under Australian law in connection with the transfer of the Scheme Shares to EZCORP
in accordance with the Transaction Implementation Agreement.

	8.4	 	Enforcement of Deed Poll

	 	 	CCV undertakes in favour of each Scheme Shareholder to enforce the Deed Poll against
EZCORP on behalf of and as agent and attorney for the Scheme Shareholders.

	8.5	 	Further action

	 	 	CCV must, at its own expense on its own behalf and on behalf of each Scheme
Shareholder, do all things and execute all documents necessary to give full effect to the
Scheme and the transactions contemplated by it and the Scheme Shareholders consent to CCV
doing all such things and executing all such documents and doing all other things necessary
or incidental to the implementation of the Scheme.

	8.6	 	Notices and other documents sent by post

	 	 	If a notice, transfer, transmission, application, direction or other communication
referred to in the Scheme is sent by post to CCV, it will not be taken to be received in the
ordinary course of post or on a date and time other than the date and time at which it is
actually received at CCV’s registered office.

	8.7	 	CCV and Scheme Shareholders bound

	 	 	The Scheme binds CCV and all Scheme Shareholders (including Scheme Shareholders who do
not attend the Scheme Meeting, do not vote at the Scheme Meeting or vote against the Scheme)
and will,

10

 

	 	 	for all purposes, to the extent of any inconsistencies and to the extent permitted by law,
have effect notwithstanding any provision in the constitution of CCV.

	9.	 	GOVERNING LAW AND JURISDICTION

	 	 	This scheme of arrangement is governed by the law applying in Western Australia. The
courts having jurisdiction in Western Australia have non-exclusive jurisdiction to settle
any dispute arising out of or in connection with this scheme of arrangement and CCV and each
Scheme Shareholder irrevocably submit to the non-exclusive jurisdiction of the courts having
jurisdiction in Western Australia.

11

 

ANNEX 2

DEED POLL

46

 

DEED POLL

DATED l 2011

MADE BY

EZCORP, Inc.

IN FAVOUR OF

EACH HOLDER OF FULLY PAID ORDINARY SHARES IN THE CAPITAL OF

CASH CONVERTERS INTERNATIONAL LIMITED (ACN 069 141 546) (OTHER THAN THE

EXCLUDED SHAREHOLDERS)

 

 

THIS DEED POLL is made on [l] 2011

BY:

	(1)	 	EZCORP, Inc., a company incorporated in the State of Delaware, USA and having its corporate
headquarters in Austin, Texas, USA (EZCORP).

IN FAVOUR OF:

The Scheme Shareholders.

BACKGROUND:

	(A)	 	Cash Converters International Limited (ACN 069 141 546) (CCV) and EZCORP have entered into
the Transaction Implementation Agreement.
	 
	(B)	 	CCV has agreed in the Transaction Implementation Agreement to propose a scheme of arrangement
between CCV and the holders of fully paid ordinary shares in the capital of CCV, the effect of
which will be that all Scheme Shares will be transferred to EZCORP or its Nominated Subsidiary
and EZCORP will provide or procure the provision of the Scheme Consideration to the Scheme
Shareholders.
	 
	(C)	 	EZCORP is entering into this deed poll in accordance with the terms of the Transaction
Implementation Agreement for the purpose of covenanting in favour of Scheme Shareholders to
perform certain of EZCORP’s obligations under the Transaction Implementation Agreement and the
Scheme.
	 
	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this deed poll any capitalised words which are not defined in this deed poll have the
meaning given in the Scheme:
	 
	 	 	Scheme means the scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth)
(Corporations Act) between CCV and CCV Shareholders in the form set out in Annex 1 to the
Transaction Implementation Agreement (amended, if applicable, in accordance with clause
4.4(c), clause 5.2(m) and/or 5.2(n) of the Transaction Implementation Agreement), subject to
any amendments made (or required by the Court under section 411(6) of the Corporations Act)
and approved in writing by EZCORP and CCV; and
	 
	 	 	Transaction Implementation Agreement means the transaction implementation agreement dated 21
March 2011 between CCV and EZCORP.
	 
	1.2	 	References to certain other words and terms
	 
	 	 	In this deed poll:

	 	(a)	 	any reference, express or implied, to any legislation in any jurisdiction
includes:

	 	(i)	 	that legislation as amended, extended or applied by or under any
other legislation made before or after execution of this deed poll;

1

 

	 	(ii)	 	any legislation which that legislation re-enacts with or without
modification; and
	 
	 	(iii)	 	any subordinate legislation made before or after execution of
this deed poll under that legislation, including (where applicable) that
legislation as amended, extended or applied as described in subclause 1.2(a)(i),
or under any legislation which it re-enacts as described in subclause
1.2(a)(ii);

	 	(b)	 	references to persons or entities include natural persons, bodies corporate,
partnerships, trusts and unincorporated associations of persons;
	 
	 	(c)	 	references to an individual or a natural person include his estate and personal
representatives;
	 
	 	(d)	 	unless otherwise indicated, a reference to a clause or subclause is a reference
to a clause or subclause of this deed poll;
	 
	 	(e)	 	references to a party to this document include the successors or assigns
(immediate or otherwise) of that party;
	 
	 	(f)	 	a reference to any time is, unless otherwise indicated, a reference to that
time in Perth, Australia; and
	 
	 	(g)	 	a reference to $, A$ or dollars is to Australian currency.

	1.3	 	Rules of interpretation and construction
	 
	 	 	In this deed poll:

	 	(a)	 	singular words include the plural and vice versa;
	 
	 	(b)	 	a word of any gender includes the corresponding words of any other gender;
	 
	 	(c)	 	if a word or phrase is defined, other grammatical forms of that word have a
corresponding meaning;
	 
	 	(d)	 	general words must not be given a restrictive meaning by reason of the fact
that they are followed by particular examples intended to be embraced by the general
words;
	 
	 	(e)	 	nothing is to be construed adversely to a party just because that party put
forward this deed or a part of this deed; and
	 
	 	(f)	 	the headings do not affect interpretation.

	2.	 	NATURE OF THIS DEED POLL
	 
	2.1	 	Enforceability
	 
	 	 	EZCORP acknowledges that:

	 	(a)	 	this deed poll may be relied upon and enforced by any Scheme Shareholder
subject to and in accordance with its terms, even though the Scheme Shareholders are
not party to it; and
	 
	 	(b)	 	under the Scheme each Scheme Shareholder appoints CCV as its agent and attorney
to enforce this deed poll against EZCORP.

2

 

	2.2	 	Continuing obligations
	 
	 	 	This deed poll is irrevocable and, subject to clause 3.1 remains in full force and effect
until either:

	 	(a)	 	EZCORP has fully performed its obligations under it; or
	 
	 	(b)	 	it is terminated under clause 3.2.

	3.	 	CONDITION AND TERMINATION
	 
	3.1	 	Condition
	 
	 	 	The obligations of EZCORP under this deed poll (other than under clause 3.3, clause 4.3 and
clause 5) do not become binding on EZCORP unless and until the Scheme becomes Effective.
	 
	3.2	 	Termination
	 
	 	 	Unless EZCORP and CCV agree otherwise in accordance with the Transaction Implementation
Agreement, the obligations of EZCORP under this deed poll will automatically terminate if:

	 	(a)	 	the Transaction Implementation Agreement is terminated in accordance with its
terms before the Scheme becomes Effective; or
	 
	 	(b)	 	the Scheme does not become Effective on or before the Long Stop Date.

	3.3	 	Effect of termination
	 
	 	 	If this deed poll is terminated under clause 3.2 then:

	 	(a)	 	except for this clause 3.3, clause 4.3 and clause 5, all the provisions of this
deed poll will lapse and cease to have effect; and
	 
	 	(b)	 	neither the lapsing of those provisions nor their ceasing to have effect will
affect any accrued rights of the Scheme Shareholders against EZCORP in respect of
damages for non-performance of any obligation under this deed poll falling due for
performance before such lapse and cessation or for breach of any representation or
warranty given under this deed poll before such lapse and cessation.

	4.	 	SCHEME CONSIDERATION
	 
	4.1	 	Payment of Scheme Consideration
	 
	 	 	Subject to clause 3, in consideration for the transfer to EZCORP or the Nominated Subsidiary
(as the case may be) of the Scheme Shares on the Implementation Date EZCORP must pay or
procure the payment of the Scheme Consideration to each Scheme Shareholder in respect of the
Scheme Shares that comprise part of its Scheme Holding in accordance with clause 4.3 of the
Scheme.
	 
	4.2	 	Timing and manner of payment
	 
	 	 	The obligations of EZCORP under clause 4.1 will be satisfied by EZCORP depositing, before
5:00pm on the Business Day before the Implementation Date, in cleared funds into the
following account established by or on behalf of CCV:

	 	 	 	 	 

	 

	 	Bank:
	 	[l]

3

 

	 	 	 	 	 

	 

	 	BSB:
	 	[l]
	 

	 	Account number:
	 	[l]
	 

	 	Account name:
	 	[l]

	 	 	the amount equal to the Scheme Consideration multiplied by the number of Scheme Shares, to
be held on trust for Scheme Shareholders and for the purpose of paying the Scheme
Consideration to the Scheme Shareholders in accordance with the Scheme.
	 
	4.3	 	Payment of stamp duties and similar charges
	 
	 	 	In accordance with the terms of the Transaction Implementation Agreement, EZCORP must pay
any stamp duties and similar charges and any related interest, fees, fines or penalties
payable under Australian law in connection with the Scheme or its implementation, or on the
transfer of the Scheme Shares, and must indemnify each Scheme Shareholder against all losses
damages, costs, expenses, charges, penalties and other liabilities (including legal and
other professional fees) directly or indirectly incurred or suffered by the Scheme
Shareholder arising out of or in connection with any failure by EZCORP to make such payment.
	 
	5.	 	REPRESENTATIONS AND WARRANTIES
	 
	5.1	 	Representations and warranties
	 
	 	 	EZCORP represents and warrants that:

	 	(a)	 	it is a corporation validly existing under the laws of its place of
incorporation;
	 
	 	(b)	 	it has the power to execute and deliver and to perform its obligations under
this deed poll, and has taken all necessary corporate action to authorise such
execution and delivery and the performance of such obligations;
	 
	 	(c)	 	its obligations under this deed poll are legal, valid and binding obligations
enforceable subject to and in accordance with their terms; and
	 
	 	(d)	 	the execution and delivery by it of this deed poll do not and will not conflict
with or constitute a default under any provision of:

	 	(i)	 	any agreement or instrument to which it is a party;
	 
	 	(ii)	 	its constitution; or
	 
	 	(iii)	 	any law, order, judgment, award, injunction, decree, rule or
regulation by which it is bound.

	5.2	 	Acknowledgement
	 
	 	 	EZCORP acknowledges that each representation and warranty in this clause 5 is severable and
survives termination of this deed poll.
	 
	6.	 	NOTICES
	 
	6.1	 	Manner of giving notice
	 
	 	 	Any notice or other communication to be given under this deed poll must be in writing (which
includes fax and e-mail) and may be delivered or sent by post, fax or e-mail as follows:

4

 

	 	 	 	 	 

	 

	 	EZCORP	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	1901 Capital Parkway, Austin, Texas USA 78746
	 

	 	Fax number:
	 	+1 512 314 3404
	 

	 	E-mail:
	 	tom_welch@ezcorp.com
	 

	 	For the attention of:
	 	Thomas H. Welch Jr., General Counsel

	 	 	Any notice or other communication sent by post must be sent by prepaid ordinary post (if the
country of destination is the same as the country of origin) or by airmail (if the country
of destination is not the same as the country of origin).
	 
	6.2	 	When notice given
	 
	 	 	Any notice or other communication is deemed to have been given:

	 	(a)	 	if delivered, on the date of delivery; or
	 
	 	(b)	 	if sent by post, on the third day after it was put into the post (for post
within the same country) or on the fifth day after it was put into the post (for post
sent from one country to another);
	 
	 	(c)	 	if sent by e-mail, upon the generation of a receipt notice by the recipient’s
server or, if such notice is not so generated, upon delivery to the recipient’s server;
or
	 
	 	(d)	 	if sent by fax, at the time shown in the transmission report as being the time
at which the whole fax was sent,

	 	 	but if the notice or other communication would otherwise be taken to be received after 5:00
pm or on a Saturday, Sunday or public holiday in the place of receipt then the notice or
communication is taken to be received at 9:00 am on the next day that is not a Saturday,
Sunday or public holiday in the place of receipt.
	 
	6.3	 	Proof of service
	 
	 	 	In proving service of a notice or other communication, it shall be sufficient to prove that
delivery was made or that the envelope containing the communication was properly addressed
and posted either by prepaid post or by prepaid airmail, that the fax was properly addressed
and transmitted or that the e-mail was properly addressed and transmitted by the sender’s
server into the network and there was no apparent error in the operation of the sender’s
e-mail system, as the case may be.
	 
	7.	 	GENERAL
	 
	7.1	 	Amendments
	 
	 	 	A provision of this deed poll may be amended if:

	 	(a)	 	the amendment is agreed to by CCV, which agreement CCV may give or withhold in
its absolute discretion and without reference to or approval by any Scheme Shareholder;
and
	 
	 	(b)	 	the Court indicates that the amendment would not of itself preclude approval of
the Scheme,

	 	 	in which event EZCORP will enter into a further deed poll in favour of each Scheme
Shareholder giving effect to the amendment.

5

 

	7.2	 	Assignment
	 
	 	 	The rights and obligations of EZCORP and each Scheme Shareholder under this deed poll are
personal. They cannot be assigned, charged or otherwise dealt with at law or in equity.
Any purported dealing in contravention of this clause 7.2 is invalid.
	 
	7.3	 	Cumulative rights
	 
	 	 	The rights, powers and remedies of EZCORP and each Scheme Shareholder under this deed poll
are cumulative and do not exclude any other rights, power or remedies provided by law
independently of this deed poll.
	 
	7.4	 	Further assurance
	 
	 	 	EZCORP must, at its own expense, do all things reasonably required of it to give full force
and effect to this deed poll.
	 
	7.5	 	Waiver

	 	(a)	 	EZCORP may not rely on the words or conduct of any Scheme Shareholder as a
waiver of any right in respect of the Scheme unless the waiver is in writing and signed
by the Scheme Shareholder granting the waiver.
	 
	 	(b)	 	Failure to exercise or enforce or a delay in exercising or enforcing or the
partial exercise of enforcement of an right, power or remedy provided by law or under
this document by any party will not in any way preclude, or operate as a waiver of, any
exercise or enforcement, or further exercise or enforcement of that or any other
rights, power or remedy provided by law or under this document.

	8.	 	GOVERNING LAW AND JURISDICTION
	 
	 	 	This deed poll is governed by the law applying in Western Australia. The courts having
jurisdiction in Western Australia have non-exclusive jurisdiction to settle any dispute
arising out of or in connection with this deed poll and EZCORP irrevocably submits to the
non-exclusive jurisdiction of the courts having jurisdiction in Western Australia.
	 
	9.	 	SERVICE OF PROCESS
	 
	 	 	EZCORP irrevocably appoint Allen & Overy (Attention: Aaron Kenavan) of Level 7 Gold Fields
House, 1 Alfred Street, Sydney or, after Allen & Overy’s Sydney offices move to Level 25, 85
Castlereagh Street, Sydney, that address (or such other address specified in an
advertisement placed by Allen & Overy in the Australian or Australian Financial Review
newspapers) as its agent in Australia for service of process.

6

 

THIS DEED POLL has been executed and delivered on the date stated at the beginning of this deed
poll.

SIGNED, SEALED AND DELIVERED by     )

EZCORP, Inc. in accordance with its                 )

constituent documents and by authority of its      )

directors:

	 	 	 

	Paul E. Rothamel, President,
Chief Executive Officer and
Director

	 	Thomas H. Welch Jr., Senior Vice
President, General Counsel and
Secretary
	 
	 	 
	 

	 	 
	Name of director

	 	Name of company secretary/director
	 
	 	 
	 

	 	 
	Signature of director

	 	Signature of company secretary/director

7

 

ANNEX 3

INDICATIVE TIMETABLE

	 	 	 
	Event	 	Date
	Execute Transaction Implementation Agreement and announce
transaction

	 	Monday, 21 March
2011
	 
	 	 
	Lodge draft of Scheme Booklet (including Independent Expert’s
Report) with ASIC

	 	Friday 29 April
	 
	 	 
	Lodge Scheme Booklet with the Court

	 	Monday 16 May
	 
	 	 
	Deed Poll executed by EZCORP (or where relevant, the Nominated
Subsidiary)

	 	Monday 16 May
	 
	 	 
	First Court Date

	 	Tuesday 17 May
	 
	 	 
	Scheme Booklet registered with ASIC and released to ASX

	 	Tuesday 17 May 2011
	 
	 	 
	Despatch Scheme Booklet and notices of Scheme Meeting, and the
General Meeting, to CCV Shareholders

	 	Monday 23 May 2011
	 
	 	 
	Scheme Meeting

	 	Wednesday 22 June
2011
	 
	 	 
	General Meeting (to be held immediately after the Scheme Meeting)

	 	Wednesday 22 June
2011
	 
	 	 
	Second Court Date

	 	Friday 24 June 2011
	 
	 	 
	Effective Date

	 	Monday 27 June 2011
	 
	 	 
	Scheme Record Date

	 	Monday 4 July 2011
	 
	 	 
	Implementation Date (also the date on which the Joint Venture
Agreements will come into effect)

	 	Monday 11 July 2011

47Exhibit 10.1

Exhibit 10.1

 LOAN AGREEMENT

THIS LOAN AGREEMENT (herein “Agreement”) is made as of the 16th day of March, 2011 by and
between Valiant Investments, LLC, an Oklahoma limited liability company (“Lender”), whose address
is 101 N. Robinson, Ste. 900 Oklahoma City, Oklahoma 73102 and Graymark Healthcare, Inc., an
Oklahoma Corporation (the “Borrower”), whose address is 210 Park Avenue, Ste. 1350, Oklahoma City,
OK 73102.

RECITALS:

A. Borrower has requested that Lender lend to Borrower up to One Million Dollars
($1,000,000.00) to finance working capital.

B. Subject to the terms, provisions, covenants and agreements hereinafter set forth, Lender
has agreed to make the requested extension of credit.

AGREEMENTS:

NOW, THEREFORE, in consideration of the mutual covenants contained herein and the loan to be
made pursuant hereto, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Lender and Borrower hereby covenant and agree as follows:

1. Definition of Terms. Certain terms are defined above or elsewhere in the context
of this Agreement. Unless the context otherwise requires and except as may otherwise be provided
herein, (a) accounting and financial terms used in this Agreement shall have the meanings ascribed
to such terms by generally accepted accounting principles in effect from time to time, applied on a
consistent basis, (b) definitions contained in the Code (herein defined) shall apply to terms,
words and phrases used herein, except that in case of any conflict between such definitions and
definitions contained in Article 9 of the Code, the Article 9 definitions shall apply, (c) the
singular shall be deemed to include the plural and the plural shall be deemed to include the
singular, and (d) the terms as used herein shall be construed and controlled by the following
definitions:

1.1 Business Day: That portion of any day, other than a Saturday, a Sunday or a legal
holiday for commercial banks under the laws of the State of Oklahoma, during which commercial banks
are open for substantially all of their normal banking functions.

1.2 Code: The Uniform Commercial Code of Oklahoma, as the same may from time to time
be in effect.

1.3 Loan: The loan to be made to Borrower by Lender pursuant to this Agreement and
the Note (defined below), and all extensions, renewals, modifications, amendments, consolidations
and restatements thereof.

1.4 Loan Documents: This Agreement and the following:

(a) the Promissory Note of even date herewith evidencing the Loan executed by Borrower in
favor of Lender, in the face amount of One Million Dollars ($1,000,000.00), and any
extensions, renewals, modifications, substitutions, consolidations and restatements thereof (the
“Note”), and

 

 

 

(b) all other documents now or hereafter evidencing, securing, guaranteeing or otherwise
executed in conjunction with the Loan, including any documents executed pursuant to any of the
foregoing and specifically including a certificate of authority for the Borrower to enter into the
Loan (the “Certificate of Authority”).

1.5 Loan Fee. An amount equal to One Percent (1%) of the amount advanced under the
Note.

1.6 Request for Advance: Borrower’s written request for an advance under the Loan
Documents for necessary working capital and overhead, as specified by Borrower and in such form and
detail and with such other documents, resolutions and/or certifications as Lender may require and
approve, all of which are a precondition to any advance of funds under the Loan Documents.

1.7 Arvest Loan Documents. Those certain loan documents as evidenced by the Amended
and Restated Loan Agreement by and between Borrower (and others) and Arvest Bank, dated effective
December 17, 2010, and all amendments, waivers and consents pertaining thereto (the “Arvest Loan
Documents”).

2. Lending Agreement. Subject to the terms and conditions of this Agreement, Lender
agrees to lend to Borrower and Borrower agrees to borrow from Lender a sum not to exceed One
Million Dollars ($1,000,000.00) to be evidenced by the Note. The Loan will be made by a series of
advances from time to time, provided that at the time of any such advance, all requirements,
covenants, conditions and agreements of this Agreement required for such advance have been
performed or satisfied, or otherwise waived or deferred by Lender. The Loan proceeds will be
disbursed for the purpose of providing Borrower funds to pay for various costs outlined in the
Request for Advance. No Loan proceeds will be disbursed for any other purpose.

3. Note. The Loan will be evidenced by the Note and payable on the terms set forth
therein. Borrower may not re-borrow under the Note and the Note is not on a revolver basis.

4. No Security; Subordination to Arvest Loan Documents. The Loan Documents will be
unsecured. Borrower has advised Lender that Arvest Bank has approved the Loan evidenced by the Loan
Documents, subject to Lender agreeing to executing a subordination agreement in form and substance
approved by Arvest Bank in connection with the Arvest Loan Documents. Lender agrees to execute a
subordination agreement in favor of Arvest Bank upon request of Arvest Bank and Borrower; provided
however, in the event that Lender shall determine the terms of the subordination agreement shall
not be acceptable to Lender, in its sole discretion, Lender may terminate this Loan Agreement and
shall not be obligated to advance funds, or further funds, under the Note. In all events however,
and notwithstanding any provision of this Agreement or the Note, the Loan Documents and all rights
and remedies of Lender pursuant thereto, shall be fully subordinate to the Arvest Loan Documents.

 

2

 

5. Conditions of Lending. The obligation of Lender to perform this Agreement and to
make the advance under the Note is subject to the performance by Borrower of the conditions
precedent described below.

5.1 Conditions Precedent to Advance. The conditions precedent to advancing the funds
under the Note are as follows:

5.1.1 Loan Documents. The Loan Documents shall have been duly executed by all parties
thereto, acknowledged (where appropriate), delivered to Lender.

5.1.2 Borrower’s Existence; Good Standing; Authority. Lender shall have received and
approved the Certificate of Authority evidencing that all necessary action has been taken to
authorize the execution, delivery and performance of the Loan Documents by the parties thereto,
including without limitation, approval of the Board of Directors of Borrower. Borrower shall be in
good standing in the State of its organization.

5.1.3 No Default. Lender shall have received assurances that the Loan Documents and
any advance thereunder shall not create or result in a default under Arvest Loan Documents.
Further, no default shall have occurred under the Arvest Loan Documents, nor shall any event exist
with which the passage of time or other event, may lead to a default under the Arvest Loan
Documents.

5.1.4 Loan Fee. At the Maturity Date, Borrower shall pay to Lender a Loan Fee in the
amount of One Percent (1%) of the Loan.

5.1.5 Receipt of Request for Advance. Lender shall have received a Request for
Advance executed by Borrower as required under Section 6 below and the advance is not requested to
be made on a day that is not a Business Day

5.1.5 No Event of Default. There shall exist no Event of Default, as defined below,
under any of the Loan Documents or any other document evidencing a loan by and between Borrower and
Lender.

5.1.6 No Litigation or Bankruptcy. Neither Borrower nor any subsidiary of Borrower
shall be the subject of any pending or threatened litigation, claim or dispute which, in Lender’s
good faith judgment, might materially adversely affect Borrower or the business of Borrower.
Further, neither Borrower nor any of its subsidiaries shall be the subject of any pending or
threatened bankruptcy, insolvency, reorganization or similar proceedings, or be involved in, or
have made or are about to make, an assignment for the benefit of creditors or have a receiver
appointed.

5.1.7 Consent. Lender shall have consented to the making of the advance under the
Note, which may be given or not in the sole discretion of Lender.

5.2 Nonwaiver. The failure of Lender to demand the satisfaction of any one or more of
the foregoing conditions precedent will not constitute a waiver of such condition or in any manner
prejudice the rights of Lender thereafter to require full compliance with the terms of this
Agreement.

6. Advances. Notwithstanding the fact that the Note is in the face amount of One
Million Dollars ($1,000,000.0), and subject to the Conditions Precedent above, advances thereunder
may be made by Lender from time to time on the written request of Borrower for the following
purposes and subject to the following limitations:

6.1 Use of Proceeds. All proceeds of each advance under the Note shall be used solely
for the approved costs as shown in the Request for Advance.

6.2 Request for Advance; Certifications. Lender shall not be required to make
advances under the Note more often than monthly. A reasonable time before the date on which an
advance is requested, Borrower will notify Lender of the total amount of the requested advance and
will furnish to Lender, the Request for Advance and an itemized list of costs to be paid from such
advance and containing such other certifications as Lender may require.

 

3

 

7. Representations and Warranties. Borrower represents and warrants as follows:

7.1 Borrower Authorization. Borrower (a) has full power, authority and legal right to
own, and is duly authorized, qualified and licensed under all applicable laws, regulations,
ordinances and orders of public authorities to, conduct its business and (b) has full authority,
power and legal right to enter into and carry out the provisions of the Loan Documents, to borrow
money thereunder and to consummate the transactions contemplated hereby.

7.2 No Litigation; Default. There are no judgments filed or actions, suits,
investigations or proceedings pending, or to the knowledge of Borrower, threatened, against or
affecting Borrower or any of its subsidiaries, at law or in equity, before or by any person which,
to the knowledge of Borrower, would have a material adverse effect on the business, assets,
financial condition or results of operations of Borrower or any of its subsidiaries, or materially
adversely affect the ability of Borrower to perform its obligations under the Loan Documents.
Borrower is not in default of or in breach in any respect under any material contract, agreement or
instrument to which Borrower is a party or by which it or any of its properties may be bound,
including without limitation the Arvest Loan Documents. Execution and performance of the Loan
Documents by Borrower shall not create or result in a default under any other agreement to which
Borrower is a party, including without limitation the Arvest Loan Documents.

7.3 Place of Business and Certain Records. Borrowers principal office is the address
set forth herein. Borrower shall provide written notice to Lender of any other office of Borrower
where its records may be kept, if other than its principal office stated herein. Borrower shall not
change its principal office unless fifteen (15) days’ prior written notice shall have been given to
Lender.

7.4 No Financing of Corporate Takeovers. No proceeds of the Loan will be used to
acquire any security in any transaction which is subject to Sections 13 or 14 of the Securities
Exchange Act of 1934.

7.5 Purpose. The proceeds of the Note are to be used for working capital and no part
of the proceeds are for personal, family or household purposes, or for personal investment.

7.6 Survival of Representations. All representations and warranties made herein or in
any other Loan Documents will be continuing and survive the delivery of the Note and the making of
the Loan or any advances thereunder, and any investigation at any time made by or on behalf of
Lender shall not diminish Lender’s right to rely thereon. All statements contained in any
certificate or other instrument delivered by or on behalf of any Borrower under or pursuant to this
Agreement or any other Loan Documents or in connection with the transactions contemplated hereby or
thereby shall constitute representations and warranties made hereunder.

 

4

 

8. Borrower’s Covenants. Borrower hereby covenants with Lender as follows:

8.1 Notice of Litigation, Etc. Borrower will promptly advise Lender in writing of (a)
all litigation, regardless of amount, affecting or threatened against the Borrower or any of its
subsidiaries; (b) all complaints, claims, charges and contemplated complaints, claims and charges
of which Borrower has knowledge made by any governmental authority in respect of Borrower or any
subsidiary of Borrower, and (c) any notice of default under any material agreement to which
Borrower or any subsidiary is a party, including without limitation under the Arvest Loan
Documents.

8.2 Financial Information on Borrower, Guarantors and Real Property. Borrower shall
furnish to Lender financial statements of Borrower in form and substance satisfactory to Lender
upon written request of Lender, prepared in accordance with GAAP.

8.3 Liquidation, Merger, Issuance. Borrower and its subsidiaries shall not, without
the prior written consent of Lender, (i) dissolve or liquidate, or become a party to any merger or
consolidation, or (ii) acquire by purchase, lease or otherwise all or substantially all of the
assets or capital stock of any person or corporation, or (iii) sell, transfer, lease or otherwise
dispose of all or any substantial part of its property or assets or business, or discontinue or
materially change its business, or (iv) issue capital stock (other than in accordance with
established compensation plans of the Company) or convertible debt, unless, in each such case
above, all amounts due under the Note and this Agreement are, (or are to be through an escrow
acceptable to Lender), paid in full to Lender contemporaneous with or as a result of the specified
event or closing thereof.

8.4 Compliance with Laws. Borrower and its subsidiaries shall comply with all
applicable laws, rules and regulations applicable to any of them.

9. Defaults; Events of Default. Borrower will be in default (herein “Default”) under
this Agreement or the other Loan Documents at any time Borrower fails to timely perform or observe
any of its obligations under this Agreement. Lender may terminate all obligations of Lender to make
an advance under this Agreement and the Note, and Lender may declare the Note, to be then
immediately due and payable if any of the following (herein “Events of Default”) shall occur,
unless otherwise waived by Lender:

9.1 Nonpayment. Any interest or principal required under the Note, or any other
lending agreement between Lender and Borrower, is not paid when due (and as to which there shall be
no grace period).

9.2 Other Defaults Under Loan Documents. Default by Borrower in the performance or
observance of any agreement or covenant (other than for a default under 8.1 above, or the other
defaults specified below) contained in the Loan Documents, or under the terms of any other
instrument delivered to Lender in connection with the Loan, or any other lending agreement by and
between Lender and Borrower, and the failure of Borrower to cure such Default within ten (10) days
after written notice from Lender.

9.3 Representations and Warranties. Any representation, warranty, statement,
certificate, schedule or report (herein collectively a “representation”) made or furnished to
Lender by or on behalf of Borrower herein, or in connection with any other lending agreement
between Lender and Borrower, proves to be false or erroneous in any material respect
at the time of the making thereof or any representation ceases to be complied with in any
material respect.

 

5

 

9.4 Bankruptcy. Borrower becomes insolvent, or the institution of bankruptcy,
reorganization, liquidation or receivership proceedings by or against Borrower or any subsidiary,
or Borrower’s or any subsidiary making an assignment for the benefit of creditors, or a receiver is
appointed for Borrower or any subsidiary of Borrower.

9.5 Default under Arvest Loan Documents. A default is declared under the Arvest Loan
Documents or litigation is commenced in regard thereto by Arvest Bank.

9.6 Judgment: Attachment. Entry by any court of a final judgment against Borrower
which, in the reasonable judgment of Lender, materially and adversely affects, or will affect,
Borrower’s ability to perform its covenants and agreements under the Loan Documents.

9.7 Stock Exchange. The stock of Borrower shall be delisted from any stock exchange on
which it is now traded, or trading shall be suspended.

10. Remedies. In the event of an Event of Default, Lender shall, at its option, have
the right to declare all sums evidenced by the Loan Documents, and any other lending agreement
between Lender and Borrower, to be immediately due and payable, and to enforce its rights and
remedies hereunder or thereunder, or as otherwise provided by law or equity, or the Code. Lender
shall further have the right to credit payments by Borrower to the Note or to any other loan
obligation of Borrower to Lender, as Lender shall determine.

11. Miscellaneous. The parties further agree as follows:

11.1 No Waiver; Cumulative Remedies. No failure on the part of Lender to exercise,
and no delay in exercising, any right or remedy hereunder, or otherwise provided by law or equity,
will operate as a waiver thereof. Each right and remedy provided under the Loan Documents is
distinct and cumulative to all other rights or remedies provided thereunder or afforded by law or
equity, and may be exercised concurrently, independently, selectively, or successively, in any
order whatsoever.

11.2 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is
intended to confer upon any person, other than the parties hereto and their respective successors
and permitted assigns, any rights or remedies under or by reason of this Agreement.

11.3 Notices; Time. Except as otherwise provided herein, any notices or other
communications required or permitted hereunder shall be sufficient if made in writing and delivered
personally, by messenger, by a nationally recognized overnight courier service, or sent by
certified mail, return receipt requested, postage prepaid, and addressed to the appropriate party
at its address stated on the first page hereof or to such other address as such party may
substitute by written notice to the other as herein provided. The effective date of any notice
shall be the date of delivery of the notice, if by personal delivery, messenger or courier service,
or, if mailed, on the date upon which the return receipt is signed or delivery is refused or the
notice is designated by the postal authorities as non-deliverable, as the case may be. Any notice
or other communication given by Lender in a manner other than as stated above shall not be
insufficient if actually received by Borrower. TIME IS OF THE ESSENCE.

11.4 Construction. This Agreement and the other Loan Documents shall be construed in
accordance with the laws of the State of Oklahoma. The Loan Documents are entered into, issued by
the Borrower and accepted by the Lender pursuant to a lending transaction negotiated, consummated
and to be performed in Oklahoma City, Oklahoma County, Oklahoma. Nothing in this Agreement will
be construed to constitute Lender as a joint venturer with Borrower or to constitute a partnership
between Lender and Borrower, or to constitute Lender as a control person of Borrower. The
descriptive headings of the Sections of this Agreement (except the definition sections) are for
convenience only and are not to be used in the construction of the content of this Agreement. This
Agreement may be executed in multiple counterparts, each of which will be an original instrument,
but all of which will constitute one agreement. In the event of an inconsistency between this
Agreement and any other Loan Document, this Agreement shall control.

 

6

 

11.5 Binding Effect: Joint and Several Liability. This Agreement will be binding on
Borrower and Lender and their respective successors and assigns and will inure to the benefit of
Borrower and Lender and their respective successors and assigns. Notwithstanding the foregoing,
Borrower will not assign its rights under this Agreement, without Lender’s prior written consent
which may be withheld in Lender’s absolute discretion. Any such attempted assignment will be void
without Lender’s prior written consent.

11.6 Entire Agreement; Amendment; Waiver. This Agreement and the other Loan Documents
is the entire Agreement between the parties and no other oral agreements or understandings exist.
This Agreement may not be amended or modified in any way, except by an instrument in writing
executed by both parties hereto; provided, however, Lender may, in writing: (a) extend the time for
performance of any of the obligations of Borrower; (b) waive any Event of Default by Borrower; and
(c) waive the satisfaction of any condition that is precedent to the performance of Lender’s
obligations under this Agreement. If Lender waives an Event of Default, such specific Event of
Default shall be deemed to have been cured and not continuing, but no such waiver shall extend to
any subsequent or other Event of Default or impair any consequence of such subsequent or other
Event of Default.

11.7 Indemnity. Borrower hereby indemnifies and holds Lender harmless from and against
any and all loss, cost, damages, judgments, expenses and attorney fees and costs, incurred by
Lender as a result of the breach of any of Borrower’s representations and warranties or covenants
as contained in Sections 6 and 7 hereof.

11.8 No Claims; Release. Borrower hereby warrants that is has no claims or causes of
action against Lender or its principal, Roy T. Oliver (Lender and Roy T. Oliver, collectively the
“Released Parties”). As further consideration for Lender to enter into the Loan Documents and which
term is material to Lender, Borrower (on behalf of Borrower and all subsidiary entities of
Borrower, collectively the “Borrower Parties”) does hereby irrevocably waive, release and forever
discharge the Released Parties and each of their heirs, successors, assigns and personal
representative, of and from any and all actions, causes of action, suits, damages, claims and
demands whatsoever that the Borrower Parties, or any of them, ever had, now has, shall or may have
for, upon or by reason of any matter, cause, act, omission, or thing from the beginning of the
world through the date of this Release.

 

7

 

11.9 Governing Law; Jurisdiction; Waiver of Jury Trial. The Loan Documents and the
rights of the parties thereunder will be governed by, interpreted, and enforced in accordance with
the internal laws of the State of Oklahoma, notwithstanding conflict of law principles. THE PARTIES
HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION AND VENUE OF ANY FEDERAL OR STATE COURT
SITTING IN OKLAHOMA CITY, OKLAHOMA COUNTY, OKLAHOMA AND WAIVE ALL DEFENSES THERETO, WITH RESPECT TO
ANY DEFUALT, DISPUTE OR ISSUE ARISING UNDER OR RELATING TO THE LOAN DOCUMENTS. THE PARTIES HERETO
AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO
TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO
THIS AGREEMENT OR THE COMPANY, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION
THEREWITH INCLUDING, BUT NOT LIMITED TO, THOSE RELATING TO (A) ALLEGATIONS OF UNCONSCIONABLE ACTS,
DECEPTIVE TRADE PRACTICE, LACK OF GOOD FAITH OR FAIR DEALING, LACK OF COMMERCIAL REASONABLENESS, OR
SPECIAL RELATIONSHIPS (SUCH AS FIDUCIARY, TRUST OR CONFIDENTIAL RELATIONSHIP); (B) ALLEGATIONS OF
DOMINION, CONTROL, ALTER EGO, INSTRUMENTALITY, FRAUD (INCLUDING BUT NOT LIMITED TO FRAUD IN The
INDUCEMENT), MISREPRESENTATION, DURESS, COERCION, UNDUE INFLUENCE, INTERFERENCE OR NEGLIGENCE; (C)
ALLEGATIONS OF TORTIOUS INTERFERENCE WITH PRESENT OR PROSPECTIVE BUSINESS RELATIONSHIPS OR OF
ANTITRUST; OR (D) SLANDER, LIBEL OR DAMAGE TO REPUTATION. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
GIVEN KNOWINGLY AND VOLUNTARILY BY, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND
EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. The prevailing party
in such dispute shall be entitled to its reasonable attorney fees and costs.

11.10 Severability. If any provision of this Agreement are determined to be
unenforceable, such unenforceability shall not affect the rest and remained of this Agreement,
which shall continue in full force and effect.

Executed and delivered as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	“Lender”:	 	Valiant Investments, LLC
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	   
	 	 	 	 	 	 	Roy T. Oliver, Manager
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	“Borrower”:	 	Graymark Healthcare, Inc., an Oklahoma Corporation
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Stanton M. Nelson, CEO	 	 

 

8

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