Document:

EX-10.12

 Exhibit 10.12 
 January 5, 2015 
 Dan Taggart 
 509 West Butler Road 
 Greenville, SC 29607 

Re:     Offer of Employment – Senior Vice President and Chief Risk Officer 

Dear Dan: 
 It has been a
pleasure to work with you as you have provided credit risk management consulting services to our company over the past several weeks. Speaking for the team, we are certain that you are an excellent fit for the position of Senior Vice President and
Chief Risk Officer of Regional Management Corp. (“RM” or the “Company”). We also believe that RM can provide you with what you need in the form of challenges, compensation, and future growth opportunities. We are looking forward
to having you as a member of our team! 
 With that in mind, I am delighted to confirm our offer with the specific components of
our package to you. Please let me know if you have any questions on any of these areas. 
  

	 	•	 	 Position: Senior Vice President and Chief Risk Officer of Regional Management Corp. (“RM”), reporting to Mike Dunn, RM’s Chief
Executive Officer. This position will be based in Dallas, TX. However, regularly scheduled weeks in Greenville will be required. You will use an RM corporate credit card to pay for travel and related expenses. 

 

	 	•	 	 Salary: Annual base salary of $300,000, paid bi-weekly, less FICA, state, and federal income tax withholding, and any other deductions required
for elective benefits of your choosing. RM’s official payday is every other Friday, with funds distributed to the bank of your choice via direct deposit. Your position is considered exempt for purposes of federal wage and hour law, which means
that you will not be eligible for overtime pay. 

  

	 	•	 	 Short-Term Incentive Plan: You will be eligible to earn an annual cash incentive award with a target opportunity equal to $300,000 or 100% of
your base salary (pro-rated for any partial year) and otherwise in accordance with the terms of RM’s short-term incentive program, as approved from time to time by the Compensation Committee (the “Committee”) of the Board of Directors
(the “Board”), which award, if any, shall be payable under the Regional Management Corp. Annual Incentive Plan or successor incentive plan. The short-term incentive program typically is based on performance targets derived from
RM’s annual budget. 

  

	 	•	 	 Long-Term Incentive Plan: On account of service to RM in 2015, RM will provide a long-term incentive award valued at $300,000 (100% of base
salary). This long-term incentive award will be 

	 	 
subject to the RM 2011 Stock Incentive Plan or successor stock plan (the “Stock Plan”) and any applicable award agreements and will be spread generally equally across three long-term
incentive vehicles as follows: 

  

	 	1.	Non-Qualified Stock Option Award (“NQSO Award”). RM will grant the NQSO Award on or as soon as practicable following your first day of employment. The
number of shares subject to the NQSO Award will be calculated by dividing $100,000 by the fair value of each option share (calculated on or as close in time as practicable to the date of grant in accordance with GAAP using the Black-Scholes
option-pricing model). The NQSO Award will vest on December 31, 2017, subject to your continued employment with RM, and it will have an exercise price equal to the closing price of RM’s stock on the date of grant. 

 

	 	2.	Performance-Contingent Restricted Stock Unit Award (“RSU Award”). Subject to your continued employment, RM will grant the RSU Award at the time RM
makes 2015 long-term incentive awards to other members of senior management. The number of shares subject to the RSU Award will be calculated by dividing $100,000 by the closing price of RM’s stock on or as close in time as practicable to the
date of grant. The RSU Award may vest on December 31, 2017, based upon the achievement of performance criteria established by the Committee and your continued employment with RM. 

 

	 	3.	Cash-Settled Performance Share Award (“Performance Share Award”). Subject to your continued employment, RM will grant the Performance Share Award at
the time RM makes 2015 long-term incentive awards to other members of senior management. The Performance Share Award may vest on December 31, 2017, based upon the achievement of performance criteria established by the Committee and your
continued employment with RM. At vesting, the target cash settlement of the Performance Share Award will be equal to $100,000. 

 Beginning in 2016, you will be eligible to participate in long-term incentive awards under the Stock Plan as determined by the Committee. 

 

	 	•	 	 Performance and Salary Review: The Committee (or its designees) will review your performance in your role during the first quarter of 2016 and
each succeeding year. Pending a satisfactory review, your compensation may be increased accordingly. 

  

	 	•	 	 Insurance and Benefits: You will be eligible to participate in RM’s health insurance plan. Coverage begins on the first of the month
following 60 days of employment. Optional family, dental, and vision insurance coverage is available as an employee-paid option. You will also be eligible for Regional’s short- and long-term disability programs as a company paid benefit.

  

	 	•	 	 COBRA: RM will reimburse you for two months of your current COBRA coverage to bridge the 60-day waiting period until our insurance coverage
begins. 

  

	 	•	 	 Life Insurance: RM will provide you with a $50,000 life insurance policy. You have the option of purchasing an additional amount of life
insurance at your cost up to a maximum of $250,000. 

  

	 	•	 	 Retirement Plan: You are eligible to participate in the RM 401(k) plan after one year of service. Our current plan matches 100% of the first 3%
of your compensation that you choose to contribute, and 50% of the next 2% you choose to contribute. 

	 	•	 	 Vacation & Personal Days: Eligibility for PTO begins after one year of employment. However, in consideration of your joining RM, we
will waive the one-year requirement for you. You will have 20 days of PTO to use each year. 

  

	 	•	 	 Cell Phone: RM will provide you with a cell phone allowance of $75 per month. 

 

	 	•	 	 Ongoing Training, Development, and Licensing: RM will reimburse you for reasonable and customary job-related training, development, and
professional licensing. 

 This offer is contingent upon satisfactory completion of the appropriate background
checks, credit check, and drug test required of all potential employees of RM and upon your representation that there exists no conflict of interest or contractual or statutory obligation that would prevent you from becoming employed with RM and
performing duties as Senior Vice President and Chief Risk Officer. In addition, we recognize that you retain the option, as does RM, of ending your employment with RM at any time, with or without notice and with or without cause. Employment with RM
is at-will and neither this letter nor any other oral or written representations may be considered a contract for any specific period of time. 
 Dan, if you have any questions regarding RM, the position, or this offer, please don’t hesitate to call Bill Stubbs or me at 864-422-8011. We greatly look forward to having you become a member of the
RM team! 
 If the terms of this letter are acceptable, please sign the letter below and return it to me at your earliest
opportunity. 
  

	
	 Sincerely,

	
	 /s/ Michael R. Dunn

	
	 Michael R. Dunn

	 Chief Executive Officer

 The provisions of this offer of employment have been read, are understood, and the offer is
herewith accepted. I understand that my employment is at will and also contingent upon the satisfactory completion of background, credit and reference checks, and pre-employment drug test. 

 

					
	 Signature: /s/ Daniel J. Taggart
	 		 	Date: January 5, 2015Exhibit 10II Ken Dumas Agreement

EXHIBIT 10II

Offer of Employment

October 21, 2014

Kenneth L. Dumas
[Address]

Dear Ken,

Congratulations! On behalf of LoJack Corporation (“LoJack”), I am pleased to offer you employment on the terms set forth below. This offer of employment is contingent upon the satisfactory completion of: a) your provision of appropriate documentation to confirm your eligibility to work in the United States, as required by federal immigration laws; (b) a background screening and reference checks regarding your past employment and (c) your signing the Company’s Employee Invention, Non-Competition and Confidentiality Agreement, a copy of which will be enclosed in your new hire package.

This letter confirms our offer of employment and includes the details of the cash compensation and equity arrangements.

Subject to approval by the Compensation Committee and the Board, you would be an Executive Officer of the Corporation and serve as a member of LoJack’s Executive Management Team.

Administrative Information

Position:
You will serve in a full-time capacity as Senior Vice President, Chief Financial Officer, reporting directly to Randy Ortiz, President & Chief Executive Officer.

Start Date:
Your start date with the Company is anticipated for Monday, November 10, 2014.
 
Compensation

Base Salary:
You will be paid a base salary of $280,000.00 annualized, paid in bi-weekly installments of $10,769.24, payable in accordance with LoJack’s standard payroll practices for salaried employees.

Short Term Incentive:
In addition to your base salary, you will be eligible to participate in the Company’s Short Term Incentive (STI) Plan. Your STI target will be 50% of your year-end base salary earnings. The actual percentage of your STI will be paid based on LoJack Corporation’s overall performance, your ability to meet established goals and objectives, the terms of the Plan as they exist at any given time, and your individual job performance, which will be evaluated informally on an ongoing basis and formally on an annual basis, consistent with company policy. Specific plan details associated with your STI will be provided shortly after you begin with the Company.

Sign-on Bonus:
You will receive a one-time bonus in the amount of $50,000.00 (less applicable taxes), payable after 60 days  of  continuous  employment  in  the  next  regularly  scheduled  payroll.    Should  you  voluntarily terminate your employment or if you are terminated for cause within 12 months of your start date, you will be required to repay the bonus on a prorated basis.

Long Term Incentive:
Equity grants, issued upon your start date, will carry an approximate value of $50,000.00 based on the Black-Scholes method and are broken down as follows:

· 60% Non-Qualified Stock Options (three year gradual vesting)
· 40% *Time Based Restricted Stock (three year cliff vesting).

*Given your start date with the Company, you will not be granted performance-based shares, only time- based shares.

Going forward, for salary, short- and long term incentives, you will be treated on a basis consistent with other senior executive officers as determined by the Compensation Committee. You will receive more information regarding the Company’s LTI plan shortly after you join LoJack.

Compensation and incentive targets are set annually by the Compensation Committee and the Board in consultation with Executive Leadership. The Committee reviews compensation practices and policies on an ongoing basis to ensure the Company is current with changes in the market and regulatory requirements. Your full compensation will be reviewed annually by the CEO and the Compensation Committee.
Benefits
Benefits

Core Benefits:
LoJack offers an attractive and competitive benefits program. Many benefits are effective on the first of the month following your start date for full-time active employees working at least 30 hours per week. A comprehensive binder of our benefits and eligibility will follow in your new hire package. Please note, our benefits are subject to change at any time at our sole discretion, unless otherwise provided by applicable federal, state or local laws and regulations.

Paid Vacation:
You will begin to immediately accrue paid vacation at a rate of 4 weeks per year. For 2014 & 2015 we agree to the following additional paid time off:
a. Week of December 20th
b. January 8th through 13th
c. Week of February 16th with the exception of the Board Meeting February 17th & 18th

Continued Education & Memberships:
LoJack will reimburse you costs ($3k - $5k) associated with maintaining your CPA certification, as well as other professional group memberships associated with your role as CFO.

Other Perquisites & Benefits

Change in Control:
You will be provided with a Change-in-Control Agreement; the terms of which will be provided to you in a separate document. The Change-in-Control Agreement provisions include severance & benefit support in  the  amount  of  18  months  in  the  event  your  employment  with  the  Company  is  terminated  in connection with a Change-in Control.

Severance Protection:
Should LoJack terminate your employment other than for “Cause” (substantially as defined in the Change of Control Agreement) within the first 12 months of employment, LoJack will pay you 12 months of severance, calculated at the rate of your current annualized base salary.  The severance will be paid to you in equal bi-weekly installments in accordance with LoJack’s regular pay schedule.

You also would receive a pro-rata short term incentive based on actual company performance for months worked in the year.   This would be paid in the first quarter of the following year, once financial results are finalized and reported.

Recoupment of Formulae-Based Compensation Policy:
As a board-selected executive officer of the Company, you will be subject to the Company’s Recoupment Policy, a standard policy that generally applies to for all formulae-based performance compensation received by executives working for a publicly-traded company.  A copy of this policy will be provided to you and explained in detail prior to your acceptance of employment and will need to be agreed upon prior to your start date.

Other Important Information

Onboarding & Assimilation:
We provide a robust orientation and induction program for all new employees joining our organization. We will send you an invite and schedule for Orientation, upon your acceptance of this offer. Please bring your entire new hire package with you on your first day.

At Will Status:
Your employment with LoJack will be “at will”, meaning that this offer of employment does not constitute a contract of employment. If you accept this offer on the terms presented here and become employed by LoJack, you may elect to resign at any time and LoJack may elect to terminate your employment at any time for any or no reason.

The terms of this offer letter supersede any prior understandings or agreements or promises made to you by anyone on behalf of the company, whether oral or written. By accepting this offer, you warrant and represent that your employment with the Company will not violate any agreements, obligations or understandings that you have with any third party or prior employer.

To accept this offer, please sign and date this letter and return it to me. If we have not received your signed acceptance by such date, this offer shall be revoked and considered void. We look forward to your decision to join LoJack.

We are all excited about the prospect of you joining our executive team. We believe that your experience and enthusiasm will greatly help us achieve our corporate and financial objectives.

Ken, we would be pleased to have you join us and we look forward to welcoming you to our team soon. 

Sincerely,

/s/ Jeannine Sheehan
Jeannine Sheehan
Vice President, Human Resources

/s/ Kenneth L. Dumas
Kenneth L. Dumas

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