Document:

exv10w3

Exhibit 10.3

Dated 31 December 2010

CCRT INTERNATIONAL HOLDINGS B.V.

COMPUCREDIT HOLDINGS CORPORATION

DOLLAR FINANCIAL U.K. LIMITED

DOLLAR FINANCIAL CORP

 

AGREEMENT

for the sale and purchase of the

entire issued share capital of

Purpose UK Holdings Limited and

certain shares in MEM Holdings

Limited.

 

 

Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	Clause
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	1	 	 	Definitions
	 	 	1	 
	 	2	 	 	Interpretation
	 	 	5	 
	 	3	 	 	Sale and purchase of the Sale Shares
	 	 	6	 
	 	4	 	 	Conditions
	 	 	6	 
	 	5	 	 	Purchase Price
	 	 	10	 
	 	6	 	 	Working Capital Adjustment
	 	 	10	 
	 	7	 	 	Completion
	 	 	12	 
	 	8	 	 	Indebtedness and Guarantees
	 	 	12	 
	 	9	 	 	Warranties
	 	 	14	 
	 	10	 	 	Limitations on the Seller’s liability
	 	 	14	 
	 	11	 	 	Buyer’s Warranties
	 	 	14	 
	 	12	 	 	Restrictive Covenants
	 	 	15	 
	 	13	 	 	Post-Completion matters
	 	 	16	 
	 	14	 	 	Seller’s Guarantee
	 	 	16	 
	 	15	 	 	Buyer’s Guarantee
	 	 	18	 
	 	16	 	 	Confidentiality
	 	 	20	 
	 	17	 	 	Payments
	 	 	23	 
	 	18	 	 	General
	 	 	23	 
	 	19	 	 	Choice of law and submission to jurisdiction
	 	 	30	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Schedules
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	1	 	 	The Group
	 	 	31	 
	 	 	 	 	Part 1 — The Company
	 	 	31	 
	 	 	 	 	Part 2 — Subsidiaries and subsidiary
undertakings of the Company
	 	 	32	 
	 	2	 	 	Completion matters
	 	 	39	 
	 	3	 	 	Warranties
	 	 	42	 
	 	4	 	 	Limitations on the Seller’s liability
	 	 	59	 
	 	5	 	 	Buyer’s Warranties
	 	 	66	 
	 	6	 	 	Data Room Index
	 	 	67	 
	 	7	 	 	The Properties
	 	 	84	 
	 	8	 	 	Taxation
	 	 	88	 
	 	 	 	 	Part 1 — General
	 	 	88	 
	 	 	 	 	Part 2 — Taxation Covenant
	 	 	98	 
	 	 	 	 	Part 3 — Taxation Warranties
	 	 	101	 
	 	9	 	 	Company IPR
	 	 	105	 
	 	10	 	 	Pre-Completion
	 	 	106	 
	 	11	 	 	Completion Statement
	 	 	110	 
	 	 	 	 	Part 1 — General Provisions
	 	 	113	 
	 	 	 	 	Part 3 — Specific Accounting Policies
	 	 	116	 
	 	12	 	 	Termination Fee
	 	 	117	 

* 
Schedules and Exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company hereby undertakes to furnish supplementally copies of
any of the omitted schedules upon request by the Securities and Exchange Commission.

 

 

This Agreement is made by way of deed on December 31, 2010

Between

	(1)	 	CCRT International Holdings B.V. (Registered in the Netherlands with No. 34199421) whose
registered office is at Strawinskylaan 3105, 1077 ZX Amsterdam, the Netherlands (Seller);
	 
	(2)	 	CompuCredit Holdings Corporation a Georgia corporation whose principal office is at 5
Concourse Parkway, Suite 400, Atlanta GA 30328, USA (the Seller’s Guarantor);
	 
	(3)	 	Dollar Financial U.K. Limited (No. 03701758) whose registered office is at 6th floor, 77
Gracechurch Street, London EC3V 0AS (Buyer); and
	 
	(4)	 	Dollar Financial Corp., a Delaware corporation whose principal office is at 1436 Lancaster
Ave., Suite 300 Berwyn, PA 19312, USA (the Buyer’s Guarantor).

It is agreed

	1	 	Definitions
	 
	1.1	 	In this Agreement, unless the context otherwise requires:

	 	 	Accounts means the audited accounts of each Group Company (other than Rentassured Limited)
for the financial year ended on the Accounts Date, including the notes to those accounts and
the associated directors’ and auditors’ reports, and the unaudited accounts for Rentassured
Limited
	 
	 	 	Accounts Date means 31 December 2009
	 
	 	 	Actual Working Capital Amount means the aggregate value of the current assets of the Group
less the aggregate amount of the current liabilities of the Group being the amount shown as
the Actual Working Capital Amount in each case determined in accordance with the Completion
Statement
	 
	 	 	Authority means any governmental or regulatory authority (including the FSA, the UK Office
of Fair Trading and the UK Office of the Information Commissioner), statutory undertaking,
agency or public or regulatory body (whether present or future) which has jurisdiction over
a Group Company or the Business or any decision, consent or licence which is required to
carry out the Business and Authorities shall be construed accordingly
	 
	 	 	Business means the business carried on by the Group as at, and before, Completion and
includes any part of it
	 
	 	 	Business Day means any day on which banks are open for business in London and New York
(excluding Saturdays, Sundays and any day which is a public holiday in either London or New
York)
	 
	 	 	Buyer Announcement means the announcement to be made by the Buyer in the Agreed Form
	 
	 	 	Buyer’s Group means the Buyer, any subsidiary of the Buyer, any holding company of the Buyer
and any subsidiary of any holding company of the Buyer, in each case for the time being and
member of the Buyer’s Group shall be construed accordingly

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	 	 	Buyer’s Solicitors means Allen & Overy LLP of One Bishops Square, London E1 6AD
	 
	 	 	Buyer’s Warranties means the warranties given by the Buyer set out in schedule 3
	 
	 	 	CCA means the Consumer Credit Act 1974
	 
	 	 	Companies Act means the Companies Act 2006
	 
	 	 	Company means Purpose UK Holdings Limited further details of which are set out in part 1 of
schedule 1
	 
	 	 	Completion means completion of the sale and purchase of the Sale Shares in accordance with
this Agreement
	 
	 	 	Completion Date means the date falling three Business Days after the last of the Conditions
set out in clauses 4.1(a), 4.1(b) and 4.1(c) is fulfilled, satisfied, or waived by the party
entitled to the benefit of such Condition or such other date as the parties may agree
	 
	 	 	Completion Statement means the completion statement setting out the Actual Working Capital
Amount as at the Completion Date, to be agreed, modified and determined in accordance with
the provisions of schedule 11
	 
	 	 	CompuCredit Restrictive Covenant means the restrictive covenant to be entered into by the
Seller’s Guarantor in the Agreed Form
	 
	 	 	connected with has the meaning ascribed to it in section 1122 Corporation Tax Act 2010 save
that there shall be deemed to be control for that purpose whenever either section 450 or
section 1124 of that act would so require
	 
	 	 	Customer means any individual who has entered into a Customer Loan Agreement with MEM and in
whose name a Customer Account is maintained by MEM immediately prior to Completion
	 
	 	 	Customer Account means in respect of each Customer the account recording, amongst other
things, the amount owed by such Customer under his Customer Loan Agreement and Customer
Accounts means all of them
	 
	 	 	Customer Debts means receivables under a Customer Loan Agreement
	 
	 	 	Customer Loan Agreements means all and any customer loan agreements entered into between any
Group Company and a Customer pursuant to which a Loan has been made by a Group Company and
Customer Loan Agreement shall be construed accordingly
	 
	 	 	Data Room means the online data site hosted by Merrill Corporation making available to the
Buyer the documents listed in the Data Room Index in connection with the Buyer’s
investigations into the Company
	 
	 	 	Data Room Index means the index to the Data Room set out in schedule 6
	 
	 	 	Disclosure Letter means the letter dated the same date as this Agreement from the Seller to
the Buyer in relation to the Warranties
	 
	 	 	Disclosed Schemes means:
	 
	 	 	(a) the Stakeholder Scheme; and

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	 	 	(b) the Friends Provident Group Personal Pension
	 
	 	 	Encumbrance means any mortgage, charge (fixed or floating), pledge, lien, option, right to
acquire, right of pre-emption, assignment by way of security or trust arrangement for the
purpose of providing security or other security interest of any kind (including any
retention arrangement), or any agreement to create any of the foregoing;
	 
	 	 	Group means the Company and each of its subsidiaries and Group Company and member of the
Group shall be construed accordingly
	 
	 	 	Guarantee means any guarantee, indemnity, suretyship, letter of comfort, security, right of
set-off or other obligation given or undertaken by a person to secure or support the
obligations (actual or contingent) of any other person
	 
	 	 	Iain McKenzie Compromise Agreement means the compromise agreement in the Agreed Form to be
entered into by Iain McKenzie and MEM Capital Limited
	 
	 	 	Iain McKenzie Restrictive Covenant means the restrictive covenant in the Agreed Form to be
entered into by Iain McKenzie
	 
	 	 	Interim Accounts means the unaudited profit and loss statement and balance sheet of each
Group Company, for each fiscal period or part thereof of each such Group Company commencing
on 1 January 2010 and ending on 30 September 2010
	 
	 	 	KYC Records means the evidence (documents or otherwise) required to verify each Customer’s
identity for anti money laundering purposes in connection with his Customer Account
	 
	 	 	Loan means any form of credit provided to a Customer under a Customer Loan Agreement
	 
	 	 	MEM means MEM Consumer Finance Limited further details of which are set out in part 2 of
schedule 1
	 
	 	 	MEM Holdings means MEM Holdings Limited further details of which are set out in part 2 of
schedule 1
	 
	 	 	MEM Holdings Shares means 39,118 B ordinary shares of 0.01 pence each and the 140,617 C
ordinary shares of 0.01 pence each in the capital of MEM Holdings
	 
	 	 	MEM US Licence means the licence in the Agreed Form pursuant to which MEM and Parker Fox
will grant a licence to the Seller or its nominee to use certain software in the United
States in accordance with its terms
	 
	 	 	Minority SPA means the sale and purchase agreement, in the Agreed Form, to be entered into
between, amongst others, the Seller and Iain McKenzie on or about the date of this agreement
	 
	 	 	NatWest Facility means together the £30,000 corporate card facility and the
£1,500,000 Bankline Daily Settlement/Intraday Limit Facility in each case with Natwest
	 
	 	 	OFT Decision shall mean the publication of decision on the OFT website (www.oft.gov.uk) or,
if earlier, written notification to the Buyer
	 
	 	 	Ombudsman means the Financial Ombudsman Services established under the Financial Services
and Markets Act 2000

3

 

	 	 	Parker Fox means Parker Fox Limited further details of which are set out in part 2 of
schedule 1
	 
	 	 	Parker Fox Agreement means the sale and purchase agreement between the Sellers (as defined
therein) and MEM dated 14 December 2010 pursuant to which MEM acquired the entire share
capital of Parker Fox
	 
	 	 	Parker Fox Business and Assets means the business, assets and liabilities of Parker Fox
	 
	 	 	Profitability means the earnings before interest, taxes, depreciation and amortisation
(EBITDA) calculated on a basis consistent with the Accounts
	 
	 	 	Projections means the projections for the Business set out in document 3.8.8 in the Data
Room
	 
	 	 	Promissory Note Amount means the principal amount and all accrued interest owed by the
Company to the Seller’s Guarantor as at the Completion Date pursuant to the promissory note
set out in document 3.2.125 in the Data Room (Promissory Note)
	 
	 	 	Properties means the leasehold properties, details of which are set out in schedule 7 and
Property means any of them and, in each case, includes each and every part of, and any
building on, each relevant Property
	 
	 	 	PUK Shares means the 1,021,215 ordinary shares of £0.01 each and the 15,094,229 redeemable
preference shares of £1 each in the capital of the Company
	 
	 	 	Purchase Price has the meaning given in clause 5
	 
	 	 	Relief has the meaning given in part 1 of schedule 8 (Tax)
	 
	 	 	Sale Shares means together the PUK Shares and the MEM Holdings Shares
	 
	 	 	Security Interest means any claim, mortgage, lien, pledge, charge, encumbrance,
hypothecation, trust, option, right to acquire, right of pre-emption or any other
restriction or third party right or interest (legal or equitable) or any other security
interest of any kind however created or arising (or any agreement or arrangement to create
any of them)
	 
	 	 	Seller Announcement means the announcement to be made by the Seller in the Agreed Form
	 
	 	 	Seller’s Group means the Seller, any of its subsidiaries (excluding each Group Company), any
of its holding companies (including the Seller’s Guarantor) and any subsidiary of any of its
holding companies, in each case for the time being and member of the Seller’s Group shall be
construed accordingly
	 
	 	 	Seller’s Solicitors means Addleshaw Goddard LLP of Milton Gate, 60 Chiswell Street, London
EC1Y 4AG
	 
	 	 	Stakeholder Scheme means the Friends Provident Pensions Limited Stakeholder Scheme
	 
	 	 	Target Working Capital Amount means GBP20,365,838 if the Completion Date falls between 14
February 2011 and 28 February 2011 (inclusive), GBP18,862,756 if the Completion Date falls
between 1 March 2011 and 15 March 2011 (inclusive), GBP19,431,839 if the Completion Date
falls between 16 March 2011 and 31 March 2011 and GBP20,431,839 if the Completion Date
falls between 1 April 2011 and 19 April 2011

4

 

	 	 	Tax and Taxation have the meanings given in part 1 of schedule 8 (Tax)
	 
	 	 	Tax Covenant means the tax covenant set out in part 2 of schedule 8 (Tax)
	 
	 	 	Tax Warranties means the warranties set out in part 3 of schedule 8 (Tax)
	 
	 	 	Termination Fee means the amount set out in schedule 12 (Termination Fee)
	 
	 	 	Transaction Documents means this Agreement, the Disclosure Letter and each of the documents
referred to in this Agreement as being in the Agreed Form and any document from time to time
entered into pursuant to or in connection with this Agreement
	 
	 	 	Warranties means the Tax Warranties and the warranties set out in schedule 3 (Warranties)
	 
	 	 	Warranty Claim means all and any claims against the Seller under any of the Warranties
	 
	1.2	 	In addition to the terms defined in clause 1.1, certain other terms are defined elsewhere in
this Agreement and those definitions also apply elsewhere in this Agreement unless the context
otherwise requires.
	 
	2	 	Interpretation
	 
	2.1	 	In this Agreement, unless the context otherwise requires:

	 	(a)	 	references to clauses and schedules are to clauses of, and schedules to, this
Agreement respectively and references in a schedule or part of a schedule to paragraphs
are to paragraphs of that schedule or that part of that schedule respectively;
	 
	 	(b)	 	references to this Agreement or any other document are to this Agreement or
that document as amended from time to time;
	 
	 	(c)	 	words importing any gender include every gender, references to the singular
include the plural and vice versa and words denoting persons include individuals,
bodies corporate, partnerships, unincorporated associations and other bodies (in each
case, wherever resident) and vice versa;
	 
	 	(d)	 	in the Agreed Form means, in relation to any document, that document in the
form agreed and, for the purposes of identification, signed or initialled by or on
behalf of the parties with such alterations as the parties agree in writing before
Completion;
	 
	 	(e)	 	a person is be deemed to be associated with another person or an associated
person of that other person if the person is an associate of the other person within
the meaning of section 435 of the Insolvency Act 1986;
	 
	 	(f)	 	a reference to a statute or statutory provision includes a reference to any
subordinate legislation (as defined by section 21(1) of the Interpretation Act 1978)
made under that statute or provision); and
	 
	 	(g)	 	a reference to a statute, statutory provision or subordinate legislation
includes a reference to:

5

 

	 	(i)	 	any statute, statutory provision or subordinate legislation
which it has consolidated, superseded, re-enacted or replaced (whether with or
without modification); and
	 
	 	(ii)	 	that statute, provision or subordinate legislation as for the
time being modified or consolidated, superseded, re-enacted or replaced
(whether with or without modification) after the date of this Agreement,

	 	 	 	save to the extent that such consolidations, re-enactments, replacements or
modifications taking effect after the date of this Agreement would impose any
greater obligations or liabilities on the Seller or the Seller’s Guarantor provided
that for the avoidance of doubt nothing in this clause 2.1(g) shall be interpreted
to restrict the application of the Condition set out in clause 4.1(b).

	2.2	 	The headings and contents table in this Agreement are for convenience only and do not affect
its interpretation. The schedules form part of this Agreement.
	 
	2.3	 	In this Agreement, the words “other”, “includes”, “including” and “in particular” do not
limit the generality of any preceding words and any words which follow them will not be
construed as being limited in scope to the same class as the preceding words where a wider
construction is possible.
	 
	3	 	Sale and purchase of the Sale Shares
	 
	3.1	 	Subject to the provisions of clause 4, the Seller agrees to sell the Sale Shares and the
Buyer agrees to buy the Sale Shares with effect from Completion, free from any Security
Interest and together with all rights and benefits attaching or accruing to the Sale Shares,
at Completion.
	 
	3.2	 	The Seller:

	 	(a)	 	covenants with the Buyer that it:

	 	(i)	 	has the right to sell and transfer to the Buyer the full legal
and beneficial interest in the PUK Shares on the terms set out in this
agreement; and
	 
	 	(ii)	 	will at Completion have the right to sell and transfer to the
Buyer the beneficial interest in the MEM Holdings Shares on the terms set out
in this agreement;

	 	(b)	 	waives all rights of pre-emption which it may have in respect of the transfer
to the Buyer of the Sale Shares (or any of them).

	4	 	Conditions
	 
	4.1	 	The sale and purchase of the Sale Shares is conditional on each of the following conditions
being fulfilled, satisfied or waived (the Conditions):

	 	(a)	 	the Office of Fair Trading (OFT) having provided the OFT Decision that it does
not intend to refer the proposed acquisition of the Sale Shares by the Buyer, or any
matter arising or relating to that proposed acquisition, to the Competition Commission
for investigation (the OFT Condition);
	 
	 	(b)	 	no Material Adverse Change occurring between the date of this Agreement and the
date on which the OFT Condition is fulfilled, satisfied or waived pursuant to the

6

 

	 	 	 	provisions of clause 4.15 and, for the purposes of this clause, Material Adverse
Change shall mean the implementation, notification or announcement of any change to
any statutory or other binding or advisory legislative or regulatory provision
(including any OFT decision or directive imposed on MEM or the short-term and/or pay
day loan industry requiring a change of MEM’s then current business practices) which
directly relates to or impacts the business of providing short-term and/or pay day
loans and is reasonably likely to result in a reduction of £4,400,000 in the
projected Profitability of the Business (using the Projections as a reference for
determining such impact) for the 12 month period following such announcement.
	 
	 	(c)	 	the Buyer having available to it, on an unconditional basis and on terms
satisfactory to it in its sole discretion, debt financing facilities or the proceeds of
an issuance of debt securities in a public and/or private offering, or any other
financing, (Financing) of an amount not less than the Purchase Price (the Financing
Condition); and
	 
	 	(d)	 	the Minority SPA having completed in accordance with its terms (the Minority
SPA Condition).

	4.2	 	The Buyer and the Seller shall use all reasonable endeavours to procure (so far as they are
each able to procure) that the OFT Condition is satisfied on or before the earlier of (i) 24
March 2011 and (ii) the date falling 50 Business Days from the date on which the OFT confirms
that the form of the OFT Submission is satisfactory (the OFT Long Stop Date). In order to
satisfy the OFT Condition the Buyer shall:

	 	(a)	 	procure the filing of a submission to the OFT (OFT Submission) as soon as
reasonably practicable and in any event no later than 14 January 2011;
	 
	 	(b)	 	respond as soon as reasonably practicable (with a target response time of not
more than five Business Days) and in any event within any applicable time limit to any
request, formal or informal, for information or other input from the OFT;
	 
	 	(c)	 	not enter into (and will procure that no member of the Buyer’s Group enters
into) any other acquisition agreement relating to an entity involved in either:

	 	(i)	 	the business of providing short-term and/or pay day loans in
the UK; or
	 
	 	(ii)	 	the business of providing consumer credit in the UK;

	 	 	 	which might reasonably be expected to delay, impede or prejudice the fulfilment of
the OFT Condition;

	 	(d)	 	as soon as reasonably practicable notify the Seller of any material
communication (whether written or oral) received from the OFT;
	 
	 	(e)	 	give the Seller reasonable notice of and the opportunity for it or any advisers
of the Seller’s Group to attend all material meetings and telephone calls with the OFT
(save to the extent that the OFT expressly requests that the Seller should not be
present or represented at the meeting or part(s) of the meetings); and
	 
	 	(f)	 	provide the Seller with drafts of all material written communications intended
to be sent to the OFT and give the Seller a reasonable opportunity to comment thereon
and not submit its communications without the prior agreement (such agreement not to be
unreasonably withheld or delayed) of the Seller (save that in relation to all
disclosures

7

 

	 	 	 	under this clause, business secrets and other confidential material may be provided
on an outside counsel to counsel, confidential basis only),

	 	 	provided that nothing in sub-clauses (a) to (f) (inclusive) shall be interpreted or operate
to limit the Buyer’s obligation to use all reasonable endeavours to procure that the OFT
Condition is satisfied.

	4.3	 	If the Buyer receives the OFT Decision by written notification it shall notify the Seller in
writing of the fulfilment of the OFT Condition as soon as reasonably practicable and in any
event with 1 Business Day of the Buyer receiving written notification.
	 
	4.4	 	If the OFT Condition is not satisfied on or before the OFT Long Stop Date or if the OFT
Decision is to refer the proposed acquisition of the Sale Shares by the Buyer, or any matter
arising or relating to that proposed acquisition, to the Competition Commission for
investigation, the Buyer or the Seller may elect to terminate this agreement by written notice
to the other and upon giving such notice:

	 	(a)	 	except for this subclause, clauses 1, 2, 10, 16, 18 and 19 all the provisions
of this Agreement shall lapse and cease to have effect; but
	 
	 	(b)	 	neither the lapsing of those provisions nor their ceasing to have effect shall
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
prior to such lapse and cessation.

	4.5	 	Contemporaneously with the Buyer using all reasonable endeavours to procure that the OFT
Condition is satisfied, the Buyer shall take such steps as are, in it sole discretion,
reasonable, to enable it to fulfil, satisfy or waive the Financing Condition on or before the
date falling not later than twenty Business Days following the later of (i) the date on which
the OFT Condition is satisfied and (ii) the date on which Required Financial Information is
delivered to the Buyer, and in any event on or before 14 April 2011 (the Final Long Stop
Date).
	 
	4.6	 	If the OFT Condition has been satisfied, there has been no Material Adverse Change prior to
satisfaction of the OFT Condition but the Financing Condition is not satisfied by the Final
Long Stop Date, the Buyer irrevocably undertakes to pay the Seller the Termination Fee.
	 
	4.7	 	The Buyer shall notify the Seller in writing of the fulfilment of the Financing Condition as
soon as reasonably practicable and in any event within 1 Business Day of the Buyer becoming
aware of such fulfilment.
	 
	4.8	 	During the period commencing on the date of this Agreement and ending on the earlier of the
Final Longstop Date and the Completion Date, the Seller shall and shall procure so far as it
is reasonably able to do so that each relevant member of the Seller’s Group and each Group
Company shall provide, and shall cause their respective directors, officers and employees to
provide, so far as they are each reasonably able to, in each case upon reasonable notice from
the Buyer, and at the Buyer’s cost (but only to the extent the Seller or any member of the
Seller’s Group incurs out of pocket expenses directly related to the co-operation efforts
described below and in clause 4.9), such reasonable assistance and cooperation (including
where necessary providing appropriate instructions to auditors), including reasonable access
to information and personnel of the Group, during normal office hours, which is reasonably
required for the Buyer to satisfy the Financing Condition (including the preparation of the
Required Financial Information as set out in clause 4.9 and the preparation of customary
proforma financial information for the 12 month period ended June 30, 2010 and the six month
period ended December 31, 2010) provided that (i) such assistance and cooperation

8

 

	 	 	and access to information and personnel of the Group does not unreasonably interfere with
the ongoing operations of any member of the Seller’s Group or any Group Company or otherwise
impair, in any material respect, the ability of any officer or executive of any member of
the Seller’s Group or any Group Company to carry out their duties to the relevant member of
the Seller’s Group or the relevant Group Company and (ii) the Buyer agrees that it would not
be reasonable to require information considered by the Seller, acting in good faith, to be
commercially sensitive.
	 
	4.9	 	Without limiting the generality of the provisions of clause 4.8 the Seller shall, and shall
procure that each relevant member of the Seller’s Group shall:

	 	(a)	 	use its reasonable endeavours to prepare and furnish by no later than 28
February 2011 audited consolidated financial statements for the annual financial
periods ending December 31, 2008, 2009 and 2010 of the Group (the Required Financial
Information), that in the opinion of the Seller and its auditors have been prepared in
accordance with United States Generally Accepted Accounting Principles and include such
information that in the reasonable opinion of the Seller and its auditors is required
by Regulation S-X under the U.S. Securities Act of 1933, as amended (the Securities
Act), as is customarily included in either public offerings under the Securities Act or
private placements resold under Rule 144A of the Securities Act, to consummate the
offerings of debt securities; and
	 
	 	(b)	 	use its reasonable endeavours to procure that the auditors of the Group provide
the Buyer with customary accountants’ comfort or negative assurance letters and
consents relating to financial information of the Group Companies as reasonably
requested by the Buyer.

	4.10	 	The Seller hereby consents, and shall procure that each Group Company consents, to the use of
its respective logo in connection with the Financing.
	 
	4.11	 	Notwithstanding anything herein to the contrary, the Seller acknowledges and agrees that the
Buyer and any other member of the Buyer’s Group may publicly disclose the Required Financial
Information, other material information regarding the Group and the transactions contemplated
hereby in connection with the Financing and that any such disclosure shall not be deemed to be
a breach of this Agreement provided that the Buyer shall provide to the Seller drafts of any
public documents containing information regarding the Group which the Buyer intends to publish
and shall afford the Seller not less than two Business Days to consent to the publication of
such documents and shall have obtained such consent (such consent not to be unreasonably
withheld or delayed).
	 
	4.12	 	Notwithstanding anything in this Agreement to the contrary, neither the Seller nor prior to
Completion any Group Company shall be required to: (i) pay any commitment or other similar
fee or incur any other liability or obligation in connection with the Financing undertaken to
meet the Financing Condition (or any replacements thereof); or (ii) to indemnify any person in
connection with the Financing undertaken to meet the Financing Condition. For the avoidance
of doubt, Buyer shall reimburse the Seller, the Seller’s Guarantor and each member of the
Group Company for all reasonable out of pocket costs, fees and expenses incurred in connection
with such assistance and cooperation as may be requested and provided pursuant to clauses 4.8
to 4.11 (inclusive) above.
	 
	4.13	 	The Buyer shall pay to the Seller an amount equal to the amount which would be required to
indemnify the Seller, each member of the Seller’s Group and each Group Company against all
actions, proceedings, losses, claims, damages, liabilities, costs, charges and expenses which
any of them may suffer or incur in respect of or arising in connection with the disclosure

9

 

	 	 	(including for the avoidance of doubt the inclusion of any information of Required Financial
Information (or any part thereof) in any documentation relating to any public or private
offering or placement of any equity or debt) by or on behalf of the Buyer or any member of
the Buyer’s Group of any information obtained by the Buyer or any member of the Buyer’s
Group pursuant to the provisions of clauses 4.8 and 4.9, including the Required Financial
Information but only to the extent that such Required Financial Information does not contain
any untrue statement of a material fact or omit to state any material fact regarding any
Group Company necessary in order to make such Required Financial Information not misleading.
	 
	4.14	 	If any of the Conditions is not fulfilled, satisfied, or waived by the party entitled to the
benefit of such Condition, or if any of the Conditions ceases to be capable of fulfilment or
satisfaction, on or before the Final Long Stop Date:

	 	(a)	 	except for this subclause, clauses 1, 2, 4.6, 10, 16, 18, 19 all the
provisions of this Agreement shall lapse and cease to have effect; but
	 
	 	(b)	 	neither the lapsing of those provisions nor their ceasing to have effect shall
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
prior to such lapse and cessation.

	4.15	 	Subject to the Seller’s right of termination pursuant to the provisions of clause 4.4, the
Buyer may at any time before the time specified in clause 4.2 or 4.5 (as the case may be) by
notice to the Seller waive the Conditions or (or any of them) in whole or in part.
	 
	4.16	 	If the Buyer has not procured the filing of the OFT Submission on or before 14 January 2011
the Seller shall be entitled to terminate this Agreement by written notice to the Buyer and
upon giving such notice:

	 	(a)	 	except for this subclause, clauses 1, 2, 10, 16, 18 and 19 all the provisions
of this Agreement shall lapse and cease to have effect; but
	 
	 	(b)	 	neither the lapsing of those provisions nor their ceasing to have effect shall
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
prior to such lapse and cessation provided that if the Seller terminates this Agreement
pursuant to this clause 4.16 the Seller’s only remedy shall be termination of the
Agreement..

	5	 	Purchase Price
	 
	5.1	 	Subject to adjustment in accordance with clause 6 and schedule 11, the total aggregate
consideration for the sale of the Sale Shares is US$195,000,000 (Purchase Price) less the
Promissory Note Amount.
	 
	5.2	 	The Seller shall provide the Buyer with written notice of the quantum of the Promissory Note
Amount no later than two Business Days before the Completion Date.
	 
	6	 	Working Capital Adjustment
	 
	6.1	 	It is acknowledged by the parties that the Purchase Price has been determined on the basis
that at Completion the Actual Working Capital Amount will be not less than the Target Working
Capital Amount. The Purchase Price shall be adjusted following Completion to reflect any
difference between the Actual Working Capital Amount and the Target Working Capital Amount as
follows:

10

 

	 	(a)	 	if the Completion Date falls between 14 February 2011 and 28 February 2011
(inclusive) and:

	 	(i)	 	the Actual Working Capital Amount is less than GBP19,347,546,
the Seller shall pay to the Buyer an amount in US$ equal to the difference
between the relevant Target Working Capital Amount and the Actual Working
Capital Amount;
	 
	 	(ii)	 	the Actual Working Capital Amount is more than GBP21,384,130,
the Buyer shall pay to the Seller an amount in US$ equal to the difference
between Actual Working Capital Amount and the relevant Target Working Capital
Amount;
	 
	 	(iii)	 	if the Actual Working Capital Amount is greater than the
minimum in (i) above and less than the maximum in (ii) above no payment between
the Buyer and the Seller shall be made pursuant to the provisions of this
clause 6 or schedule 11;

	 	(b)	 	if the Completion Date falls between 1 March 2011 and 15 March 2011 (inclusive)
and:

	 	(i)	 	the Actual Working Capital Amount is less than GBP17,919,618,
the Seller shall pay to the Buyer an amount in US$ equal to the difference
between the relevant Target Working Capital Amount and the Actual Working
Capital Amount;
	 
	 	(ii)	 	the Actual Working Capital Amount is more than GBP19,805,894,
the Buyer shall pay to the Seller an amount in US$ equal to the difference
between Actual Working Capital Amount and the relevant Target Working Capital
Amount;
	 
	 	(iii)	 	if the Actual Working Capital Amount is greater than the
minimum in (i) above and less than the maximum in (ii) above no payment between
the Buyer and the Seller shall be made pursuant to the provisions of this
clause 6 or schedule 11.

	 	(c)	 	if the Completion Date falls between 16 March 2011 and 31 March 2011
(inclusive) and:

	 	(i)	 	the Actual Working Capital Amount is less than GBP18,460,247,
the Seller shall pay to the Buyer an amount in US$ equal to the difference
between the relevant Target Working Capital Amount and the Actual Working
Capital Amount;
	 
	 	(ii)	 	the Actual Working Capital Amount is more than GBP20,403,431,
the Buyer shall pay to the Seller an amount in US$ equal to the difference
between Actual Working Capital Amount and the relevant Target Working Capital
Amount;
	 
	 	(iii)	 	if the Actual Working Capital Amount is greater than the
minimum in (i) above and less than the maximum in (ii) above no payment between
the Buyer and the Seller shall be made pursuant to the provisions of this
clause 6 or schedule 11.

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	 	(d)	 	if the Completion Date falls between 1 April 2011 and 19 April 2011:

	 	(i)	 	the Actual Working Capital Amount is less than GBP19,460,247,
the Seller shall pay to the Buyer an amount in US$ equal to the difference
between the relevant Target Working Capital Amount and the Actual Working
Capital Amount;
	 
	 	(ii)	 	the Actual Working Capital Amount is more than GBP21,403,431,
the Buyer shall pay to the Seller an amount in US$ equal to the difference
between Actual Working Capital Amount and the relevant Target Working Capital
Amount;
	 
	 	(iii)	 	if the Actual Working Capital Amount is greater than the
minimum in (i) above and less than the maximum in (ii) above no payment between
the Buyer and the Seller shall be made pursuant to the provisions of this
clause 6 or schedule 11.

	6.2	 	Payments pursuant to clause 6.1 shall be converted into US$ at the closing mid-point rate as
quoted by the Financial Times, London edition on the Completion Date.
	 
	6.3	 	Following Completion the Buyer shall procure that a draft of the Completion Statement is
prepared and delivered to the Seller in accordance with the provisions of schedule 11. The
final form of the Completion Statement shall be agreed, modified or determined in accordance
with the provisions of part 1 of schedule 11.
	 
	6.4	 	The Buyer or the Seller (as the case may be) shall pay to the other the amount due pursuant
to clause 6.1 no later than five Business Days after the date on which the Completion
Statement is agreed or determined.
	 
	7	 	Completion
	 
	7.1	 	Completion will take place on the Completion Date, immediately after the Minority SPA
Condition has been satisfied, fulfilled or waived at the offices of the Seller’s Solicitors or
at any other place and time that the Seller and the Buyer agree in writing.
	 
	7.2	 	Until Completion the provisions of schedule 10 shall apply.
	 
	7.3	 	At Completion, the parties shall comply with their respective obligations in schedule 2
(Completion matters).
	 
	7.4	 	Part 2 of schedule 8 (Tax) applies with effect from Completion.
	 
	7.5	 	The Buyer is not obliged to complete the purchase of any of the Sale Shares unless:

	 	(a)	 	the purchase of all the Sale Shares is completed simultaneously; and
	 
	 	(b)	 	the Seller complies with each of its obligations pursuant to schedule 2.

	8	 	Indebtedness and Guarantees
	 
	8.1	 	The Seller shall procure that on Completion all indebtedness owing immediately before
Completion from the Seller or any person connected with the Seller to any Group Company is or
has been satisfied in full together with all interest accruing on it up to Completion.

12

 

	8.2	 	The Seller shall procure that on Completion all indebtedness owing immediately before
Completion from any Group Company to any third party, other than trade indebtedness incurred
in the ordinary course of business and amounts drawn pursuant to the NatWest Facility, is or
has been satisfied in full together with all interest accruing on it up to Completion. The
Seller shall pay to the Buyer an amount equal to the amount which would be required to
indemnify the Buyer and each Group Company against all actions, proceedings, losses, claims,
damages, liabilities, costs, charges and expenses which any of them may suffer or incur
following Completion in respect of any indebtedness owing immediately before Completion from
any Group Company to any third party, other than trade indebtedness incurred, and amounts
drawn pursuant to the NatWest Facility, in each case in the ordinary course of business.
	 
	8.3	 	The parties acknowledge that the Purchase Price has been agreed on the basis that no
indebtedness of any kind (whether or not then presently payable) will be owing immediately
after Completion by any Group Company to the Seller, any person connected with the Seller or
any third party (excluding for the avoidance of doubt indebtedness incurred in the ordinary
course of trading to suppliers and any amounts drawn under the NatWest Facility in the
ordinary course).
	 
	8.4	 	If it is established at any time after Completion that any indebtedness of any kind (whether
or not then presently payable) other than the Promissory Note Amount was owing on Completion
by any Group Company to the Seller or any person connected with the Seller, then the Seller
shall procure that the Seller or person connected with the Seller to which that indebtedness
is owing shall waive that indebtedness by executing a deed of waiver in such form as the Buyer
shall reasonably require or, if that is not permissible or practicable, shall procure that
such indebtedness is discharged or otherwise eliminated at no cost to any member of the
Buyer’s Group or any Group Company..
	 
	8.5	 	The Seller shall:

	 	(a)	 	procure that on Completion each Group Company is released from all guarantees
and indemnities given by that Group Company in respect of any liability or obligation
of the Seller or any person connected with the Seller.
	 
	 	(b)	 	pay to the Buyer an amount equal to the amount which would be required to
indemnify the Buyer and each Group Company against all actions, proceedings, losses,
claims, damages, liabilities, costs, charges and expenses which any of them may suffer
or incur following Completion in respect of any claim made under any of the guarantees
and indemnities referred to in clause 8.5(a).

	8.6	 	The Buyer shall:

	 	(a)	 	procure that on Completion or as soon as practicable the Seller and each member
of the Seller’s Group is released from all guarantees and indemnities given by such
member of the Seller’s Group in respect of any liability or obligation of a Group
Company which are identified in Data Room documents 3.6.4, 3.6.9 and 3.6.12.
	 
	 	(b)	 	pay to the Seller an amount equal to the amount which would be required to
indemnify the Seller and each other member of the Seller’s Group against all actions,
proceedings, losses, claims, damages, liabilities, costs, charges and expenses which
any of them may suffer or incur in respect of any claim made under any of the
guarantees and indemnities referred to in clause 8.6(a).

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	9	 	Warranties
	 
	9.1	 	The Seller warrants to the Buyer in the terms of the Warranties at the date of this
Agreement.
	 
	9.2	 	Save as provided in clause 9.3, except where expressly stated or where the context otherwise
requires in schedule 3, each of the Warranties shall be deemed repeated at the date of this
Agreement by the Seller in relation to each Group Company and any reference in schedule 3 to
the Company shall be deemed to be a reference to each Group Company.
	 
	9.3	 	Save in relation to warranty 8 (Information Technology), 9 (Intellectual Property) and 14.3
(Group Companies) the Warranties shall not be given, or deemed repeated pursuant to the
provision of clause 9.2, in relation to Parker Fox or the Parker Fox Business and Assets (or
any part of them) and accordingly no reference in schedule 3 to the Company, Group Company or
Group (or any other reference which might otherwise be deemed to be a reference to Parker Fox)
shall be deemed to be a reference to Parker Fox or the Parker Fox Business and Assets (or any
part of them) save where such term is used in warranties 8 (Information Technology), 9
(Intellectual Property) or 14.3 (Group Companies).
	 
	9.4	 	The Warranties are qualified to the extent of those matters fairly disclosed in the
Disclosure Letter.
	 
	9.5	 	Any Warranty which is qualified as being given “so far as the Seller is aware” or “to the
best of the knowledge, information and belief of the Seller” or qualified by any similar
expression, is deemed to have been given after reasonable enquiry of John Davis, Kirsty
Auchincloss, Iain McKenzie, David Hughes, Raj Singh and Emma Steeley at the date of this
Agreement.
	 
	9.6	 	Each Warranty is to be construed as a separate and independent warranty and, save as provided
otherwise in this Agreement, will not be limited by reference to any other Warranty.
	 
	9.7	 	Neither the Warranties, nor any rights or remedies in respect of them, will be extinguished
or affected by Completion.
	 
	9.8	 	The Seller also hereby warrants to the Buyer that the terms so warranted by it pursuant to
clause 9.1 in respect of the Warranties set out in paragraphs 14.6 and 15 (in respect of the
Seller only) shall be deemed repeated immediately before Completion with reference to the
facts and circumstances then prevailing.
	 
	9.9	 	Any payment made by the Seller in respect of a Claim shall, to the maximum extent possible,
be deemed to be a reduction in the Purchase Price.
	 
	10	 	Limitations on the Seller’s liability
	 
	10.1	 	The liability of the Seller pursuant to this Agreement is subject to the provisions of
schedule 4 (Limitations on the Seller’s liability).
	 
	10.2	 	The provisions of schedule 4 (Limitations on the Seller’s liability) will not apply to any
claim insofar as it results from the fraud of the Seller.
	 
	11	 	Buyer’s Warranties
	 
	11.1	 	The Buyer warrants to the Seller in the terms of the Buyer’s Warranties as at the date of
this Agreement.

14

 

	11.2	 	The Buyer also hereby warrants to the Seller that the terms so warranted by it pursuant to
clause 11.1 shall be deemed repeated immediately before Completion with reference to the facts
and circumstances then prevailing.
	 
	12	 	Restrictive Covenants
	 
	12.1	 	In this clause 12, unless the context otherwise requires:
	 
	 	 	Restricted Area means the United Kingdom
	 
	 	 	Restricted Period the period of three years commencing on the Completion Date
	 
	 	 	Restricted Services means single drawdown (non-revolving), single repayment, pay day loans
originated over the internet regardless of the repayment medium
	 
	 	 	Senior Individual means John Davis, Kirsty Auchincloss, Tim Trailer, Raj Singh, Emma
Steeley, Nigel Rheam and Peter Trubshaw
	 
	12.2	 	The Seller undertakes to the Buyer and each Group Company that, without the prior written
consent of the Buyer, the Seller shall not, and no member of the Seller’s Group shall, within
the Restricted Period, whether alone or jointly, and whether as principal or agent, with or
for or on behalf of another and whether directly or indirectly:

	 	(a)	 	carry on or be engaged or employed in or concerned in or (except as the owner
for investment of securities dealt in on a recognised investment exchange (as defined
by section 285 of the Financial Services and Markets Act 2000) and not exceeding 5% in
nominal value of the securities of the relevant class) be interested in any business
which is, or is about to be, engaged in the supply of the Restricted Services in the
Restricted Area in competition with the Business at that time;
	 
	 	(b)	 	employ or engage any Senior Individual whilst they are employed by any member
of the Buyer’s Group or induce such person to leave the service of any member of the
Buyer’s Group.

	12.3	 	The restriction in clause 12.2(a) shall not operate to prohibit any acquisitions and
subsequent operation and trading of any company and/or business (Subsequent Acquisition) by
any member of the Seller’s Group where the acquired company and/or business carries on or is
engaged, concerned or interested in the provision of Restricted Services in the Restricted
Area (and the provision of such Restricted Services in the Restricted Area represents, at the
time of acquisition, 15% or less of the acquired company’s and/or business’ turnover). A
Subsequent Acquisition includes:

	 	(a)	 	the related acquisition of both a business and assets and/or shares in a
company or other corporate entity; and/or
	 
	 	(b)	 	a number of related acquisitions of businesses and assets and/or shares in a
company or other corporate entity,

	 	 	and in each case the acquisition(s) shall be treated as a single acquisition for the
purposes of assessing whether or not the 15% threshold has been reached.
	 
	12.4	 	The restriction in clause 12.2(b) shall not operate to prohibit the publication of a bona
fide general recruitment advertisement which is not, in its terms or by way of the extent or
mode of its publication, directed solely or principally at Senior Individuals and any such
publication shall not be a breach of clause 12.2(b).

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	13	 	Post-Completion matters
	 
	13.1	 	The Seller shall for so long as it remains the registered holder of any of the PUK Shares
after Completion hold those PUK Shares with all rights and benefits attaching or accruing to
them on or after the date of this Agreement as bare trustee for the Buyer absolutely.
	 
	13.2	 	The Seller shall after Completion and until such time as the Buyer is registered as the
holder of the MEM Holdings Shares hold the MEM Holdings Shares with all rights and benefits
attaching or accruing to them on or after the date of this Agreement as bare trustee for the
Buyer absolutely.
	 
	13.3	 	Each party shall execute or, so far as it is able, procure the execution of all documents
and/or do or, so far as it is able, procure the doing of all acts and things that the other
party reasonably requires after Completion to give effect to the provisions of this Agreement
and any other Transaction Document provided that nothing in this clause shall oblige the
Seller to pay stamp duty or SDRT in respect of the transfer of the Sale Shares pursuant to
this Agreement.
	 
	13.4	 	During the period of seven years from Completion, the Buyer shall and shall procure that all
members of the Buyer’s Group and each Group Company shall, so far as they are each able and
upon reasonable notice from the Seller, give such assistance, supply or procure to be supplied
such papers and information, and permit access to such of the accounting and other records of
each Group Company as the Seller may reasonably request so as to enable the Seller (or any
member of the Seller’s Group) to comply with such accounting, regulatory or statutory
requirements as may be applicable to the Seller or any member of the Seller’s Group.
	 
	14	 	Seller’s Guarantee
	 
	14.1	 	The Seller’s Guarantor unconditionally and irrevocably:

	 	(a)	 	guarantees to the Buyer the payment when due of all amounts payable by the
Seller under or pursuant to this Agreement;
	 
	 	(b)	 	undertakes to procure that the Seller will perform when due all its obligations
under or pursuant to this Agreement;
	 
	 	(c)	 	agrees that if and each time that the Seller fails to make any payment when it
is due under or pursuant to this Agreement, the Seller’s Guarantor shall on demand
(without requiring the Buyer or any Group Company first to take steps against the
Seller or any other person) pay that amount to the Buyer as if it were the principal
obligor in respect of that amount; and
	 
	 	(d)	 	agrees as if it were the principal obligor to indemnify the Buyer against all
losses and damages sustained by the Buyer or any Group Company flowing from any
non-payment or default of any kind by the Seller under or pursuant to this Agreement.

	14.2	 	The Seller’s Guarantor’s obligations under this clause will not be affected by:

	 	(a)	 	any time or indulgence granted to, or composition with, the Seller or any other
person;
	 
	 	(b)	 	any intermediate payment or settlement of account or by any change in the
constitution or control of, or the insolvency of, or bankruptcy, winding-up or
analogous proceedings relating to the Seller;

16

 

	 	(c)	 	the taking, variation, renewal or release of, or neglect to perfect or enforce
this agreement, or any right, guarantee, remedy or security from or against the Seller
or any other person;
	 
	 	(d)	 	any variation or change to the terms of this agreement; or
	 
	 	(e)	 	any unenforceability or invalidity of any obligation of the Seller, so that
this Agreement shall be construed as if there were no such unenforceability or
invalidity;

	 	 	provided, however, neither the Buyer nor any member of the Buyer’s Group shall have any
greater rights against the Seller’s Guarantor than they have against the Seller under this
Agreement.
	 
	14.3	 	Until all amounts which may be or become payable under this agreement have been irrevocably
paid in full, the Seller’s Guarantor shall not as a result of this agreement or any payment or
performance under this agreement be subrogated to any right or security of the Buyer or claim
or prove in competition with the Buyer or any Group Company against the Seller or any other
person or claim any right of contribution, set-off or indemnity.
	 
	14.4	 	The Seller’s Guarantor will not take or hold any security from the Seller in respect of this
Agreement and any such security which is held in breach of this provision will be held by the
Seller’s Guarantor in trust for the Buyer.
	 
	14.5	 	The provisions of this clause may with the prior written consent of the Buyer and, subject to
paragraph (b) below, be enforced by any Group Company against the Seller’s Guarantor under the
Contracts (Rights of Third Parties) Act 1999. 

	 	(a)	 	No Group Company shall have any greater rights against the Seller’s Guarantor
than they have against the Seller under this agreement.
	 
	 	(b)	 	The provisions of this clause may be varied or terminated by agreement between
the Seller and the Buyer (and the Buyer may also release or compromise in whole or in
part any liability in respect of rights or claims contemplated by this clause) without
the consent of any Group Company.

	14.6	 	The Seller’s Guarantor must reimburse the Buyer and each Group Company for all legal and
other costs (including VAT to the extent irrecoverable) incurred by the Buyer or that Group
Company in connection with the enforcement of the Seller’s Guarantor’s obligations under this
Agreement.
	 
	14.7	 	The Seller’s Guarantor warrants to the Buyer that:

	 	(a)	 	it has the power to execute and deliver this Agreement and to perform its
obligations under it and has taken all action necessary to authorise such execution and
delivery and the performance of such obligations;
	 
	 	(b)	 	this Agreement constitutes its legal, valid and binding obligations enforceable
against it in accordance with its terms;
	 
	 	(c)	 	the execution and delivery by the Seller’s Guarantor of this Agreement and the
performance of its obligations under it do not and will not violate or conflict with or
constitute a default under any law, rule or regulation applicable to it, any provisions
of its constitutional documents, any order or judgment of any court or other agency or
government applicable to it or any of its assets or any contractual restriction binding
on or affecting it or any of its assets; and

17

 

	 	(d)	 	all authorisations from, and all notices or filings with, any governmental or
other authority that are necessary to enable the Seller’s Guarantor to execute, deliver
and perform its obligations under this Agreement have been obtained or made (as the
case may be) and are in full force and effect and all conditions of each such
authorisation have been complied with;
	 
	 	(e)	 	no order has been made and no resolution has been proposed or passed for the
winding up of or for a provisional liquidator to be appointed in respect of the
Seller’s Guarantor and no petition has been presented for the purpose of winding up the
Seller’s Guarantor;
	 
	 	(f)	 	no administration order has been made in respect of the
Seller’s Guarantor and
no petition or other application to the court for such an order has been presented or
made and no administrator has been appointed (or notice of intention so to appoint
filed in court) in respect of the Seller’s Guarantor;
	 
	 	(g)	 	no receiver (which expression shall include an administrative receiver) has
been appointed in respect of the Seller’s Guarantor or in respect of all or any
material part of the Seller’s Guarantor’s assets;
	 
	 	(h)	 	no voluntary arrangement has been proposed under section 1 of the Insolvency
Act 1986 in respect of the Seller’s Guarantor;
	 
	 	(i)	 	no distress, execution or other process has been levied or threatened in
respect of any of the Seller’s Guarantor’s assets;
	 
	 	(j)	 	No event analogous to any of the circumstances mentioned in any of the
foregoing sub-paragraphs 14.7(e) to 14.7(i) has occurred in relation to the Seller’s
Guarantor outside England.

	15	 	Buyer’s Guarantee
	 
	15.1	 	The Buyer’s Guarantor unconditionally and irrevocably:

	 	(a)	 	guarantees to the Seller the payment when due of all amounts payable by the
Buyer under or pursuant to this Agreement;
	 
	 	(b)	 	undertakes to procure that the Buyer will perform when due all its obligations
under or pursuant to this Agreement;
	 
	 	(c)	 	agrees that if and each time that the Buyer fails to make any payment when it
is due under or pursuant to this Agreement, the Buyer’s Guarantor shall on demand
(without requiring the Seller or any member of the Seller’s Group first to take steps
against the Buyer or any other person) pay that amount to the Seller as if it were the
principal obligor in respect of that amount; and
	 
	 	(d)	 	agrees as if it were the principal obligor to indemnify the Seller against all
losses and damages sustained by the Seller or any member of the Seller’s Group flowing
from any non-payment or default of any kind by the Buyer under or pursuant to this
Agreement.

	15.2	 	The Buyer’s Guarantor’s obligations under this clause will not be affected by:

	 	(a)	 	any time or indulgence granted to, or composition with, the Buyer or any other
person;

18

 

	 	(b)	 	any intermediate payment or settlement of account or by any change in the
constitution or control of, or the insolvency of, or bankruptcy, winding-up or
analogous proceedings relating to the Buyer;
	 
	 	(c)	 	the taking, variation, renewal or release of, or neglect to perfect or enforce
this agreement, or any right, guarantee, remedy or security from or against the Buyer
or any other person;
	 
	 	(d)	 	any variation or change to the terms of this agreement; or
	 
	 	(e)	 	any unenforceability or invalidity of any obligation of the Buyer, so that this
Agreement shall be construed as if there were no such unenforceability or invalidity;

	 	 	provided, however, neither the Seller nor any member of the Seller’s Group shall have any
greater rights against the Buyer’s Guarantor than they have against the Buyer under this
Agreement..
	 
	15.3	 	Until all amounts which may be or become payable under this agreement have been irrevocably
paid in full, the Buyer’s Guarantor shall not as a result of this agreement or any payment or
performance under this agreement be subrogated to any right or security of the Seller or claim
or prove in competition with the Seller or any Group Company against the Buyer or any other
person or claim any right of contribution, set-off or indemnity.
	 
	15.4	 	The Buyer’s Guarantor will not take or hold any security from the Buyer in respect of this
Agreement and any such security which is held in breach of this provision will be held by the
Buyer’s Guarantor in trust for the Seller.
	 
	15.5	 	The provisions of this clause may with the prior written consent of the Seller and, subject
to paragraph (b) below, be enforced by any member of the Seller’s Group against the Buyer’s
Guarantor under the Contracts (Rights of Third Parties) Act 1999. 

	 	(a)	 	No member of the Seller’s Group shall have any greater rights against the
Buyer’s Guarantor than they have against the Buyer under this agreement.
	 
	 	(b)	 	The provisions of this clause may be varied or terminated by agreement between
the Seller and the Buyer (and the Seller may also release or compromise in whole or in
part any liability in respect of rights or claims contemplated by this clause) without
the consent of any member of the Seller’s Group.

	15.6	 	The Buyer’s Guarantor must reimburse the Seller and each member of the Seller’s Group for all
legal and other costs (including VAT to the extent irrecoverable) incurred by the Seller or
that member of the Seller’s Group in connection with the enforcement of the Buyer’s
Guarantor’s obligations under this Agreement.
	 
	15.7	 	The Buyer’s Guarantor warrants to the Seller that:

	 	(a)	 	it has the power to execute and deliver this Agreement and to perform its
obligations under it and has taken all action necessary to authorise such execution and
delivery and the performance of such obligations;
	 
	 	(b)	 	this Agreement constitutes its legal, valid and binding obligations enforceable
against it in accordance with its terms;
	 
	 	(c)	 	the execution and delivery by the Buyer’s Guarantor of this Agreement and the
performance of its obligations under it do not and will not violate or conflict with or

19

 

	 	 	 	constitute a default under any law, rule or regulation applicable to it, any
provisions of its constitutional documents, any order or judgment of any court or
other agency or government applicable to it or any of its assets or any contractual
restriction binding on or affecting it or any of its assets; and
	 
	 	(d)	 	all authorisations from, and all notices or filings with, any governmental or
other authority that are necessary to enable the Buyer’s Guarantor to execute, deliver
and perform its obligations under this Agreement have been obtained or made (as the
case may be) and are in full force and effect and all conditions of each such
authorisation have been complied with.
	 
	 	(e)	 	no order has been made and no resolution has been proposed or passed for the
winding up of or for a provisional liquidator to be appointed in respect of the Buyer’s
Guarantor and no petition has been presented for the purpose of winding up the Buyer’s
Guarantor;
	 
	 	(f)	 	no administration order has been made in respect of the Buyer’s Guarantor and
no petition or other application to the court for such an order has been presented or
made and no administrator has been appointed (or notice of intention so to appoint
filed in court) in respect of the Buyer’s Guarantor;
	 
	 	(g)	 	no receiver (which expression shall include an administrative receiver) has
been appointed in respect of the Buyer’s Guarantor or in respect of all or any material
part of the Buyer’s Guarantor’s assets;
	 
	 	(h)	 	no voluntary arrangement has been proposed under section 1 of the Insolvency
Act 1986 in respect of the Buyer’s Guarantor;
	 
	 	(i)	 	no distress, execution or other process has been levied or threatened in
respect of any of the Buyer’s Guarantor’s assets;
	 
	 	(j)	 	No event analogous to any of the circumstances mentioned in any of the
foregoing sub-paragraphs 15.7(e) to 15.7(i) has occurred in relation to the Buyer’s
Guarantor outside England.

	16	 	Confidentiality
	 
	16.1	 	In this clause 16, the following expressions have the meanings given to them:
	 
	 	 	Confidential Information means information relating to the terms and provisions of, and
negotiations leading to, this Agreement and the other Transaction Documents.
	 
	16.2	 	Subject to clause 16.4 and 18.4 (Announcements), the Buyer undertakes to the Seller (for
itself and as trustee for each member of the Seller’s Group) that it shall not (and shall
procure that no member of the Buyer’s Group (including each Group Company) shall) at any time
directly or indirectly, whether by himself/itself, his/its employees or agents or otherwise
howsoever without the consent of the Seller use, whether on its own behalf or on behalf of any
other person, or divulge to any other person, any Confidential Information.
	 
	16.3	 	Subject to clause 16.4 and 18.4 (Announcements), the Seller undertakes to the Buyer (for
itself and as trustee for each member of the Buyer’s Group) that it shall not (and shall
procure that no member of the Seller’s Group shall) at any time directly or indirectly,
whether by himself/itself, his/its employees or agents or otherwise howsoever without the
consent of the

20

 

	 	 	Buyer use, whether on its own behalf or on behalf of any other person, or divulge
to any other person, any Confidential Information.
	 
	16.4	 	The restrictions in clauses 16.2 and 16.3 will not apply:

	 	(a)	 	in respect of any Confidential Information which is in or becomes part of the
public domain, other than through a breach of the obligations of confidentiality set
out in this Agreement;
	 
	 	(b)	 	to the extent that the Buyer and/or the Seller (as the case may be) is required
to disclose Confidential Information by any applicable law or regulatory body or the
rules of any Authority provided that, the Buyer or the Seller (as the case may be)
shall, where practicable and lawful to do so, promptly notify the other of the
requirement to disclose and shall co-operate with the other party regarding the timing
and content of such disclosure and any action the other party may reasonably elect to
take to challenge the validity of such requirement; or
	 
	 	(c)	 	to the disclosure of Confidential Information to an adviser for the purposes of
advising the Buyer and/or the Seller (as the case may be) in connection with the
transaction contemplated by this Agreement provided that such disclosure is necessary
for these purposes and is on the basis that clause 16.2 or 16.3 (as appropriate)
applies to such disclosure.

	16.5	 	The Seller and the Seller’s Guarantor shall and shall procure that if, after Completion, any
member of the Seller’s Group holds confidential information relating to the Business or any
Group Company (Target Confidential Information), such Target Confidential Information shall be
kept confidential and the Seller shall and shall procure that any member of the Seller’s Group
shall to the extent reasonably practicable and as soon as reasonably practicable deliver such
Target Confidential Information to the Buyer or destroy it, in each case without retaining
copies save that:

	 	(a)	 	the Seller shall be permitted to retain and use, provided it is kept
confidential, any Target Confidential Information or copies of Target Confidential
Information to the extent to which it relates to, or includes or incorporates
information relating to the business of the Seller’s Group and cannot reasonably be
extracted (including without limitation, any documents, deeds or agreements under which
any member of the Seller’s Group has continuing rights, obligations or liabilities) and
the Seller shall not be required to deliver such information to the Buyer;
	 
	 	(b)	 	the Seller shall be permitted to retain and use any know-how which, prior to
the date of this Agreement, has been shared by Group Companies with other members of
the Seller’s Group relating to the operation and management of a pay day lending
business;
	 
	 	(c)	 	in respect of electronically held data, the obligation to return or destroy
Target Confidential Information shall be an obligation to use all reasonable endeavours
to return or destroy such data, but shall not require the return or destruction of such
data to the extent it exists as part of routine back-up procedures provided that any
such retained Target Confidential Information is kept confidential;
	 
	 	(d)	 	the provisions of clause 16.5 shall not apply in respect of any Target
Confidential Information which is in or becomes part of the public domain, other than
through a breach of the obligations of confidentiality set out in this Agreement;

21

 

	 	(e)	 	the provisions of clause 16.5 shall not apply to the extent that the Seller is
required to retain or disclose Target Confidential Information by any applicable law or
regulatory body or the rules of any Authority provided that any Target Confidential
Information retained pursuant to this paragraph will be kept confidential;
	 
	 	(f)	 	the provisions of clause 16.5 shall not apply to the disclosure of Target
Confidential Information to an adviser for the purposes of advising the Seller in
connection with the transaction contemplated by this Agreement, provided that any such
adviser has first agreed to keep confidential any Target Confidential Information
disclosed to it.

	16.6	 	The Buyer and the Buyer’s Guarantor shall and shall procure that if this Agreement is not
completed in accordance with its terms and any member of the Buyer’s Group holds confidential
information relating to the Business or any Group Company, including all material in the Data
Room and all Evaluation Material as defined in the Confidentiality Agreement dated 13 July
2010 (Target Confidential Information), such Target Confidential Information shall be kept
confidential and the Buyer shall and shall procure that any member of the Buyer’s Group shall
to the extent reasonably practicable and as soon as reasonably practicable deliver such Target
Confidential Information to the Seller or destroy it, in each case without retaining copies
save that :

	 	(a)	 	in respect of electronically held data, the obligation to return or destroy
Target Confidential Information shall be an obligation to use all reasonable endeavours
to return or destroy such data, but shall not require the return or destruction of such
data to the extent it exists as part of routine back-up procedures provided that any
such retained Target Confidential Information is kept confidential and is not used by
the any member of the Buyer’s Group;
	 
	 	(b)	 	the provisions of clause 16.6 shall not apply in respect of any Target
Confidential Information which is in or becomes part of the public domain, other than
through a breach of the obligations of confidentiality set out in this Agreement;
	 
	 	(c)	 	the provisions of clause 16.6 shall not apply to the extent that the Buyer is
required to retain or disclose Target Confidential Information by any applicable law or
regulatory body or the rules of any Authority provided that any Target Confidential
Information retained pursuant to this paragraph will be kept confidential; and
	 
	 	(d)	 	the provisions of clause 16.6 shall not apply to the disclosure of Target
Confidential Information to an adviser for the purposes of advising the Buyer in
connection with the transaction contemplated by this Agreement provided that any such
adviser has first agreed to keep confidential any Target Confidential Information
disclosed to it.

	 	 	The Buyer further undertakes to the Seller (for itself and as trustee for each member of the
Seller’s Group) that if this Agreement is not completed in accordance with its terms it
shall not (and shall procure that no member of the Buyer’s Group shall) at any time directly
or indirectly, whether by himself/itself, his/its employees or agents or otherwise howsoever
use, whether on its own behalf or on behalf of any other person, any Target Confidential
Information.
	 
	16.7	 	The Seller and the Seller’s Guarantor shall and shall procure that if this Agreement is not
completed in accordance with its terms and any member of the Seller’s Group holds confidential
information relating to the Buyer or the Buyer’s Group (Buyer Confidential Information), such
Buyer Confidential Information shall be kept confidential and the Seller shall and shall
procure that any member of the Seller’s Group shall to the extent reasonably

22

 

	 	 	practicable and as soon as reasonably practicable deliver such Buyer Confidential
Information to the Buyer or destroy it, in each case without retaining copies save that:

	 	(a)	 	in respect of electronically held data, the obligation to return or destroy
Buyer Confidential Information shall be an obligation to use all reasonable endeavours
to return or destroy such data, but shall not require the return or destruction of such
data to the extent it exists as part of routine back-up procedures provided that any
such retained Buyer Confidential Information is kept confidential and is not used by
the any member of the Seller’s Group;
	 
	 	(b)	 	the provisions of clause 16.7 shall not apply in respect of any Buyer
Confidential Information which is in or becomes part of the public domain, other than
through a breach of the obligations of confidentiality set out in this Agreement;
	 
	 	(c)	 	the provisions of clause 16.7 shall not apply to the extent that the Seller is
required to retain or disclose Buyer Confidential Information by any applicable law or
regulatory body or the rules of any Authority provided that any Buyer Confidential
Information retained pursuant to this paragraph will be kept confidential; and
	 
	 	(d)	 	the provisions of clause 16.7 shall not apply to the disclosure of Buyer
Confidential Information to an adviser for the purposes of advising the Seller in
connection with the transaction contemplated by this Agreement provided that any such
adviser has first agreed to keep confidential any Target Confidential Information
disclosed to it.

	 	 	The Seller further undertakes to the Buyer (for itself and as trustee for each member of the
Buyer’s Group) that if this Agreement is not completed in accordance with its terms it shall
not (and shall procure that no member of the Seller’s Group shall) at any time directly or
indirectly, whether by himself/itself, his/its employees or agents or otherwise howsoever
use, whether on its own behalf or on behalf of any other person, any Buyer Confidential
Information.
	 
	17	 	Payments
	 
	17.1	 	Any amounts payable to the Seller pursuant to this Agreement must be paid by electronic funds
transfer for same day value into the following account of the Seller’s Solicitors (or any
other account that may be notified to the Buyer in writing by the Seller for this purpose from
time to time):

	 	 	 

	Account name:

	 	Addleshaw Goddard LLP General USD Account
	Name of bank:

	 	Royal Bank of Scotland
	Bank address:

	 	St Ann Street, Manchester M60 2SS
	Sort code:

	 	16-00-02
	Account number:

	 	AGCLUSAC-USDC
	 

	 	IBAN GB08 RBOS 1663 0000 3465 55
	 

	 	SWIFT RBOS GB2L

	17.2	 	The Seller’s Solicitors are irrevocably authorised by the Seller to receive any amount
payable to the Seller and receipt of any amount in any account provided by clause 17.1 will be
a valid discharge for the Buyer for the amount.
	 
	18	 	General
	 
	18.1	 	Process Agents

23

 

	 	(a)	 	The Seller’s Guarantor hereby appoints CompuCredit UK Limited of 3rd Floor
Pegler Way Crawley Sussex RH11 7AF as its process agent to receive on its behalf
service of process in any proceedings in England. Such service shall be deemed
complete on the delivery to the process agent (whether or not it is forwarded to and
received by the Seller’s Guarantor). If the process agent ceases to act, or becomes
incapable of acting, or the process agent no longer has an address in England, the
Seller’s Guarantor agrees to appoint a substitute process agent who has an address in
England and to deliver a copy of the new process agent’s acceptance of that appointment
to the Buyer within 30 days of that appointment.
	 
	 	(b)	 	The Seller hereby appoints CompuCredit UK Limited of 3rd Floor Pegler Way
Crawley Sussex RH11 7AF as its process agent to receive on its behalf service of
process in any proceedings in England. Such service shall be deemed complete on the
delivery to the process agent (whether or not it is forwarded to and received by the
Seller). If the process agent ceases to act, or becomes incapable of acting, or the
process agent no longer has an address in England, the Seller agrees to appoint a
substitute process agent who has an address in England and to deliver a copy of the new
process agent’s acceptance of that appointment to the Buyer within 30 days of that
appointment.
	 
	 	(c)	 	The Buyer’s Guarantor hereby appoints the Buyer as its process agent to receive
on its behalf service of process in any proceedings in England. Such service shall be
deemed complete on the delivery to the process agent (whether or not it is forwarded to
and received by the Buyer’s Guarantor). If the process agent ceases to act, or becomes
incapable of acting, or the process agent no longer has an address in England, the
Buyer’s Guarantor agrees to appoint a substitute process agent who has an address in
England and to deliver a copy of the new process agent’s acceptance of that appointment
to the Buyer within 30 days of that appointment.

	18.2	 	Notices:

	 	(a)	 	Any notice under this Agreement will be effective only if it is in writing.
Notices given by e-mail or any other form of non-permanent display will not be
effective, even if actually given.
	 
	 	(b)	 	References to a notice under this Agreement include any notice, claim, demand
or other document to be delivered to any party in connection with this Agreement or any
dispute arising in connection with this Agreement.
	 
	 	(c)	 	Any notice under this Agreement must be in English.
	 
	 	(d)	 	Notice details for the parties are as follows:

	 	(i)	 	in the case of the Seller, to the Seller’s Process agent with a
copy to:

	 	 	 

	Address:

	 	CompuCredit International Holdings B.V.
	 

	 	c/o Equity Trust Co. N.V.
	 

	 	Strawinskylaan 3105
	 

	 	1077 ZX Amsterdam
	 

	 	The Netherlands
	 
	 	 
	Fax:

	 	+31-(0)20-406 4555

24

 

	 	 	 

	Attention:

	 	The Directors
	 
	 	 
	and:
	 	 
	 
	 	 
	 

	 	CompuCredit Holdings Corporation
	 
	 	 
	Address:

	 	5 Concourse Parkway N.E.
	 

	 	Suite 400
	 

	 	Atlanta, GA 30328
	 
	 	 
	Fax:

	 	+1 770 870 5110
	 
	 	 
	Attention:

	 	General Counsel

	 	(ii)	 	in the case of the Seller’s Guarantor to the Seller’s
Guarantor’s Process agent with a copy to:

	 	 	 

	Address:

	 	CompuCredit Holdings Corporation
	 

	 	5 Concourse Parkway N.E.
	 

	 	Suite 400
	 

	 	Atlanta, GA 30328
	Fax:

	 	+1 770 870 5110
	 
	 	 
	Attention:

	 	General Counsel

	 	(iii)	 	in the case of the Seller’s Process Agent:

	 	 	 

	Address:

	 	3rd Floor Shaw House Pegler Way
	 

	 	Crawley Sussex TH11 7AF
	 
	 	 
	Fax:

	 	01293 228703
	 
	 	 
	Attention:

	 	David Rodwell
	 
	 	 
	with a copy to:
	 	 
	 
	 	 
	CompuCredit Holdings Corporation
	 	 
	5 Concourse Parkway N.E.
	 	 
	Suite 400
	 	 
	Atlanta, GA 30328
	 	 
	Fax: +1 770 870 5110
	 	 
	 
	 	 
	Attention: General Counsel
	 	 

	 	(iv)	 	in the case of the Seller’s Guarantor’s Process Agent:

	 	 	 

	Address:

	 	3rd Floor Shaw House Pegler
	 

	 	Way Crawley Sussex RH11 7AF
	 
	 	 

25

 

	 	 	 

	Fax:

	 	01293 228703
	 
	Attention:

	 	David Rodwell
	 
	 	 
	with a copy to:
	 	 
	 
	 	 
	CompuCredit Holdings Corporation

	5 Concourse Parkway N.E.
	 	 
	Suite 400
	 	 
	Atlanta, GA 30328
	 	 
	Fax: +1 770 870 5110
	 	 
	 
	Attention: General Counsel
	 	 

	 	(v)	 	in the case of the Buyer

	 	 	 

	Address:

	 	Castlebridge Office Village
	 

	 	Kirtley Drive, Castle Marina
	 

	 	Nottingham NG7 1LD
	 
	 	 
	Fax:

	 	0115 934 7444
	 
	 	 
	Attention:

	 	Silvio Piccini, Managing Director
	 
	 	 
	with a copy to:

	 	Dollar Financial Group, Inc.
	 
	 	 
	Address:

	 	1436 Lancaster Avenue, Suite 300
	 

	 	Berwyn, PA 19312
	 
	 	 
	Fax:

	 	+1 610 644 4842
	 
	 	 
	Attention:

	 	General Counsel

	 	(vi)	 	in the case of the Buyer’s Guarantor to the Buyer’s Guarantor’s
Process Agrent with a copy to:

	 	 	 

	Address:

	 	1436 Lancaster Avenue, Suite 300
	 

	 	Berwyn, PA 19312
	 
	 	 
	Fax:

	 	+1 610 644 4842
	 
	 	 
	Attention:

	 	General Counsel

	 	(vii)	 	in the case of the Buyer’s Guarantor’s Process Agent:

	 	 	 

	Address:

	 	Castlebridge Office Village
	 

	 	Kirtley Drive, Castle Marina
	 

	 	Nottingham NG7 1LD

26

 

	 	 	 

	Fax:

	 	0115 934 7444
	 
	 	 
	Attention:

	 	Silvio Piccini, Managing Director

	 	 	 	A party may change its notice details for the purpose of this clause 18.1 by giving
notice to all the other parties in accordance with this clause 18.1.
	 
	 	(e)	 	In proving the giving of a notice, it will be conclusive evidence to prove:

	 	(i)	 	if delivered by hand, that it was left at the relevant address;
	 
	 	(ii)	 	if sent by post, that it was properly addressed and posted; or
	 
	 	(iii)	 	if sent by fax, that a fax transmission report was obtained by
the sender confirming the fax transmission to the relevant number,
	 
	 	(iv)	 	in each case in accordance with the relevant details set out
above.

	 	(f)	 	In the absence of evidence of earlier receipt, if a notice is:

	 	(i)	 	delivered by hand:

	 	(A)	 	between 9.00 am and 5.00 pm (such time being
determined by reference to the location of the recipient) on a Business
Day (such time period being referred to as within Business Hours), it
will be deemed received when so delivered; or
	 
	 	(B)	 	outside Business Hours, it will be deemed
received at 9.00 am (such time being determined by reference to the
location of the recipient) on the next Business Day after the time of
delivery;

	 	(ii)	 	sent by post:

	 	(A)	 	on a Business Day, it will be deemed received
at 9.00 am (such time being determined by reference to the location of
the recipient) time on the second Business Day after the day on which
it was posted; or
	 
	 	(B)	 	not on a Business Day, it will be deemed
received at 9.00 am (such time being determined by reference to the
location of the recipient) on the third Business Day after the day on
which it was posted; or

	 	(iii)	 	sent by fax:

	 	(A)	 	during Business Hours (being determined by
reference to the location of the recipient), it will be deemed received
when so delivered; or
	 
	 	(B)	 	outside Business Hours (being determined by
reference to the location of the recipient), it will be deemed received
at 9.00 am (such time being determined by reference to the location of
the recipient) on the next Business Day after the time that the fax was
sent to the relevant number.

27

 

	18.3	 	Assignment and third party rights:

	 	(a)	 	Subject to sub-clauses (b), (c) and (d) below, no right or obligation arising
under this Agreement or any other Transaction Document may be assigned, transferred or
otherwise disposed of, in whole or in part, without the prior written agreement of the
other parties and provided that the liability of the Seller is not thereby increased.
	 
	 	(b)	 	The Seller may assign the benefit of this Agreement to any member of the
Seller’s Group. However, the assignee will only be entitled to enforce the benefit
assigned to it while it remains a member of the Seller’s Group. Before the assignee
ceases to be a member of the Seller’s Group, the Seller shall procure that the assignee
reassigns the benefit that has been assigned to it under this clause to the Seller (or
another member of the Seller’s Group).
	 
	 	(c)	 	The Buyer may assign the benefit of this Agreement to any member of the Buyer’s
Group. However, the assignee will only be entitled to enforce the benefit assigned to
it while it remains a member of the Buyer’s Group. Before the assignee ceases to be a
member of the Buyer’s Group, the Buyer shall procure that the assignee reassigns the
benefit that has been assigned to it under this clause to the Buyer (or another member
of the Buyer’s Group).
	 
	 	(d)	 	If there is an assignment or encumbrance by a party as permitted by this clause
18.3, the amount of loss or damage recoverable by the assignee or encumbrancer will be
calculated as if that person had been originally named as a party to this Agreement.
	 
	 	(e)	 	A party shall immediately give the other parties notice of any action taken by
it in accordance with this clause 18.3.
	 
	 	(f)	 	References in this Agreement to a party will, except where the context requires
otherwise, include its successors in title and permitted assignees.
	 
	 	(g)	 	Unless this Agreement expressly states otherwise:

	 	(i)	 	a person who is not a party to this Agreement has no right to
enforce any of its terms under the Contracts (Rights of Third Parties) Act
1999; and
	 
	 	(ii)	 	if a person who is not a party to this Agreement is stated to
have the right to enforce any of its terms under the Contracts (Rights of Third
Parties) Act 1999, the parties may rescind or vary this Agreement (and any of
the Transaction Documents) without the consent of that person.

	18.4	 	Announcements:

	 	(a)	 	Subject to clause 18.2(b) no announcement, communication or circular in
connection with the existence or the subject matter of this Agreement (or any other
Transaction Document) shall be made or issued by or on behalf of a party without the
prior written approval of the other parties.
	 
	 	(b)	 	Clause 18.4(a) does not apply to:

	 	(i)	 	the Buyer Announcement;
	 
	 	(ii)	 	the Seller Announcement; or
	 
	 	(iii)	 	to any public announcement, communication or circular:

28

 

	 	(A)	 	made or issued by the Buyer after Completion to
a customer, client or supplier of any Group Company solely for the
purposes of informing it of the Buyer’s purchase of the Sale Shares; or
	 
	 	(B)	 	required to be made by any applicable law or
regulatory body or the rules of any Authority, by the party with an
obligation to make an announcement, provided that, the Buyer or the
Seller (as the case may be) shall, where practicable and lawful to do
so, promptly notify the other of the requirement to disclose and shall
co-operate with the other party regarding the timing and content of
such disclosure and any action the other party may reasonably elect to
take to challenge the validity of such requirement. The Buyer and the
Seller each acknowledge that they will each be required to make an
announcement regarding the signing of this Agreement and in due course,
Completion.

	18.5	 	Entire Agreement:

	 	(a)	 	This Agreement (with the other Transaction Documents) sets out the entire
agreement and understanding between the parties in connection with the sale and
purchase of the Sale Shares and other matters described in them.
	 
	 	(b)	 	Without prejudice to the generality of clause 18.5(a), this Agreement (with the
other Transaction Documents) supersedes as from the date of this Agreement all prior
negotiations, representations, undertakings and agreements on any subject matter of
this Agreement.
	 
	 	(c)	 	Each of the parties acknowledges that it is not relying on any statement,
warranty, representation, collateral contract or other assurance given or made by any
of the parties in relation to the subject matter of this Agreement, save for those
expressly set out in this Agreement and the other Transaction Documents. Each party
waives all rights and remedies which, but for this clause 18.5(c), might otherwise be
available to it in respect of any such statement, warranty, representation, collateral
contract or other assurance not set out in this Agreement or any other Transaction
Document. Nothing in this clause 18.5(c) will exclude or limit any liability for
fraud.

	18.6	 	Alterations: Any alteration to this Agreement must be in writing, refer specifically to this
Agreement and be duly executed by each party.
	 
	18.7	 	Severability: If any provision in this Agreement is or at any time becomes to any extent
invalid, illegal or unenforceable under any enactment or rule of law, such provision will to
that extent be deemed not to form part of this Agreement but the validity, legality and
enforceability of the remainder of this Agreement will not be affected, provided that the
operation of this clause 18.7 would not negate the commercial intent and purpose of the
parties in entering into this Agreement.
	 
	18.8	 	Counterparts: This Agreement may be entered into in the form of two or more counterparts,
each executed by one or more of the parties but, taken together, executed by all and, provided
that all the parties so enter into this Agreement, each of the executed counterparts, when
duly exchanged and delivered, will be deemed to be an original, but, taken together, they will
constitute one instrument.
	 
	18.9	 	Payment of costs: Except where this Agreement or another Transaction Document provides
otherwise, each party shall pay its own costs and expenses incurred in relation to the

29

 

	 	 	negotiation, preparation and completion of this Agreement and each Transaction Document.
The Buyer shall be liable for and shall pay any stamp duty payable in respect of the entry
into this Agreement or any transfer of shares pursuant to this Agreement. The Seller shall
be liable for and shall, immediately after Completion, pay any stamp duty payable in respect
of the acquisition of MEM Holdings Shares pursuant to the Minority SPA.
	 
	18.10	 	Continuing effect of this Agreement: All provisions of this Agreement and any other
Transaction Document will, so far as they are capable of being performed or observed, continue
in full force notwithstanding Completion, except for those matters then already performed and
Completion will not constitute a waiver of any of the Buyer’s rights in relation to this
Agreement or any other Transaction Document.
	 
	19	 	Choice of law and submission to jurisdiction
	 
	 	 	Choice of law
	 
	19.1	 	This Agreement will be governed by and construed in accordance with English law and all
claims and disputes (including non-contractual claims and disputes) arising out of or in
connection with this Agreement, its subject matter, negotiation or formation will be
determined in accordance with English law.
	 
	19.2	 	Each party irrevocably submits to the exclusive jurisdiction of the English courts in
relation to all matters (including non-contractual matters) arising out of or in connection
with this Agreement.

Executed as a Deed by the parties or their duly authorised representatives on the date of this
Agreement.

30

 

Schedule 1)

The Group

Part 1 — The Company

	 	 	 
	Name:	 	Purpose UK Holdings Limited
	Incorporation details:

	 	Registered in England and Wales, number 6045943 on
9 January 2007
	 
	 	 
	Registered office:

	 	Witan Gate House
	 

	 	500-600 Witan Gate West
	 

	 	Milton Keynes
	 

	 	Buckinghamshire
	 

	 	MK9 1SH
	 
	 	 
	Authorised share capital:

	 	£17,010,250 divided into 1,025,000 ordinary shares
of £0.01 each and 17,000,000 redeemable preference
shares of £1 each
	 
	 	 
	Shareholders:

	 	CCRT International Holdings B.V. —

1,021,215 ordinary shares of £0.01 each

15,094,229 redeemable preference shares of £1 each
	 
	 	 
	Directors:

	 	John Clifton Davis (resigning at Completion)

Richard Randolph House JR (resigning at Completion)
	 
	 	 
	Secretary:

	 	Joseph Basil Fejes (resigning at Completion)

Shoosmiths Secretaries Limited (resigning at

Completion)
	 
	 	 
	Auditors:

	 	BDO Stoy Hayward LLP
	 
	 	 
	Accounting reference date:

	 	31 December

31

 

Part 2 — Subsidiaries and subsidiary undertakings of the Company

	 	 	 
	Name:	 	MEM Holdings Limited
	Incorporation details:

	 	Registered in England and Wales, number 6782981 on 5
January 2009
	 
	 	 
	Registered office:

	 	Witan Gate House
	 

	 	500-600 Witan Gate West
	 

	 	Milton Keynes
	 

	 	Buckinghamshire
	 

	 	MK9 1SH
	 
	 	 
	Authorised share capital:

	 	£1,000,100 divided into 760,000 A ordinary shares of
£0.0001 each, 39,118 B ordinary shares of £0.0001
each, 200,882 C ordinary shares of £0.0001 each and
1,000,000 deferred shares of £1 each
	 
	 	 
	Shareholders:

	 	Purpose UK Holdings Limited —
	 
	 	 
	 

	 	760,000 A ordinary shares of £0.0001 each
	 
	 	 
	 

	 	60,265 C ordinary shares of £0.0001 each
	 
	 	 
	 

	 	Richard Abbott — 17,301 B ordinary shares of
£0.0001 each
	 
	 	 
	 

	 	Kirsty Auchincloss — 6,817 B ordinary shares of
£0.0001 each
	 
	 	 
	 

	 	David Hughes — 5,000 B ordinary shares of £0.0001
each
	 
	 	 
	 

	 	Iain McKenzie — 140,617 C ordinary shares of
£0.0001 each
	 
	 	 
	 

	 	Raj Singh — 10,000 B ordinary shares of £0.0001 each
	 
	 	 
	Directors:

	 	John Clifton Davis (resigning at Completion)
	 
	 	 
	 

	 	Richard Randolph House JR (resigning at Completion)
	 
	 	 
	 

	 	Iain McKenzie (resigning at Completion)
	 
	 	 
	Secretary:

	 	Shoosmiths Secretaries Limited (resigning at Completion)
	 
	 	 
	Auditors:

	 	BDO Stoy Hayward LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Charges:

	 	Unlimited composite guarantee with accession granted
to National Westminster Bank PLC dated 7 May 2010 -
Charge to remain following Completion

32

 

	 	 	 
	Name:	 	MEM Capital Limited
	Incorporation details:

	 	Registered in England and Wales, number 5164798 on
28 June 2004
	 
	 	 
	Registered office:

	 	Witan Gate House
	 

	 	500-600 Witan Gate West
	 

	 	Milton Keynes
	 

	 	Buckinghamshire
	 

	 	MK9 1SH
	 
	 	 
	Authorised share capital:

	 	£21,000,000 divided into 20,000,000 ordinary
shares of £0.05 each and 20,000,000 preference
shares of £1 each
	 
	 	 
	Shareholders:

	 	Purpose UK Holdings Limited — 300,000 preference
shares of £1 each
	 
	 	 
	 

	 	MEM Holdings Limited — 985,224 ordinary shares of
£0.05 each
	 
	 	 
	 

	 	Rentassured Limited — 89,040 ordinary shares of
£0.05 each
	 
	 	 
	Directors:

	 	John Clifton Davis (resigning at Completion)
	 
	 	 
	 

	 	Richard Randolph House JR (resigning at Completion)
	 
	 	 
	 

	 	Anna Marie McCrarren (resigning at Completion)
	 
	 	 
	 

	 	Iain McKenzie (resigning at Completion)
	 
	 	 
	Secretary:

	 	Joseph Basil Fejes (resigning at Completion)
	 
	 	 
	 

	 	Shoosmiths Secretaries Limited (resigning at Completion)
	 
	 	 
	Auditors:

	 	BDO Stoy Hayward LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Charges:

	 	Unlimited composite guarantee with accession
granted to National Westminster Bank PLC dated 7
May 2010 — Charge to remain following Completion

33

 

	 	 	 
	Name:	 	Inventive Finance Limited
	Incorporation details:

	 	Registered in England and Wales, number 6021856 on 7
December 2006
	 
	 	 
	Registered office:

	 	Witan Gate House
	 

	 	500-600 Witan Gate West
	 

	 	Milton Keynes
	 

	 	Buckinghamshire
	 

	 	MK9 1SH
	 
	 	 
	Authorised share capital:

	 	£1,000 divided into 1,000 ordinary shares of £1 each
	 
	 	 
	Shareholders:

	 	MEM Capital Limited — 100 ordinary shares of £1 each
	 
	 	 
	Directors:

	 	John Clifton Davis (resigning at Completion)
	 
	 	 
	 

	 	Richard Randolph House JR (resigning at Completion)
	 
	 	 
	 

	 	Iain McKenzie (resigning at Completion)
	 
	 	 
	Secretary:

	 	Joseph Basil Fejes (resigning at Completion)
	 
	 	 
	 

	 	Shoosmiths Secretaries Limited (resigning at Completion)
	 
	 	 
	Auditors:

	 	BDO Stoy Hayward LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Charges:

	 	Unlimited composite guarantee with accession granted
to National Westminster Bank PLC dated 7 May 2010 -
Charge to remain following Completion

34

 

	 	 	 
	Name:	 	MEM Consumer Finance Limited
	Incorporation details:

	 	Registered in England and Wales, number 4786727 on
4 June 2003
	 
	 	 
	Registered office:

	 	Witan Gate House
	 

	 	500-600 Witan Gate West
	 

	 	Milton Keynes
	 

	 	Buckinghamshire
	 

	 	MK9 1SH
	 
	 	 
	Authorised share capital:

	 	£500,000 divided into 500,000 ordinary shares of
£1 each
	 
	 	 
	Shareholders:

	 	MEM Capital Limited — 300,100 ordinary shares of
£1 each
	 
	 	 
	Directors:

	 	John Clifton Davis (resigning at Completion)
	 
	 	 
	 

	 	Richard Randolph House JR (resigning at Completion)
	 
	 	 
	 

	 	Anna Marie McCrarren (resigning at Completion)
	 
	 	 
	 

	 	Iain McKenzie (resigning at Completion)
	 
	 	 
	Secretary:

	 	Joseph Basil Fejes (resigning at Completion)
	 
	 	 
	 

	 	Shoosmiths Secretaries Limited (resigning at Completion)
	 
	 	 
	Auditors:

	 	BDO Stoy Hayward LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Charges:

	 	Unlimited composite guarantee with accession
granted to National Westminster Bank PLC dated 7
May 2010 — Charge to remain following Completion

35

 

	 	 	 
	Name:	 	Purpose Acquisitions Company Limited
	Incorporation details:

	 	Registered in England and Wales, number 6138327 on
5 March 2007
	 
	 	 
	Registered office:

	 	Witan Gate House
	 

	 	500-600 Witan Gate West
	 

	 	Milton Keynes
	 

	 	Buckinghamshire
	 

	 	MK9 1SH
	 
	 	 
	Authorised share capital:

	 	£7,010,250 divided into 5,010,250 ordinary shares
of £1 each and 2,000,000 redeemable preference
shares of £1 each
	 
	 	 
	Shareholders:

	 	MEM Holdings Limited — 2,983,851 ordinary shares
of £1 each
	 
	 	 
	Directors:

	 	John Clifton Davis (resigning at Completion)
	 
	 	 
	 

	 	Richard Randolph House JR (resigning at Completion)
	 
	 	 
	Secretary:

	 	Joseph Basil Fejes (resigning at Completion)
	 
	 	 
	 

	 	Shoosmiths Secretaries Limited (resigning at Completion)
	 
	 	 
	Auditors:

	 	BDO Stoy Hayward LLP
	 
	 	 
	Accounting reference date:

	 	31 December

36

 

	 	 	 
	Name:	 	Rentassured Limited
	Incorporation details:

	 	Registered in Edinburgh, number SC116514 on 1
March 1989
	 
	 	 
	Registered office:

	 	145 St Vincent Street
	 

	 	Glasgow
	 

	 	G2 5JF
	 
	 	 
	Authorised share capital:

	 	£100,000 divided into 100,000 ordinary shares of
£1 each
	 
	 	 
	Shareholders:

	 	Purpose Acquisitions Company Limited — 30,000
ordinary shares of £1 each
	 
	 	 
	Directors:

	 	John Clifton Davis (resigning at Completion)
	 
	 	 
	 

	 	Richard Randolph House JR (resigning at Completion)
	 
	 	 
	Secretary:

	 	Joseph Basil Fejes (resigning at Completion)
	 
	 	 
	 

	 	Shoosmiths Secretaries Limited (resigning at Completion)
	 
	 	 
	Auditors:

	 	Exempt from audit under s477 Companies Act 2006
	 
	 	 
	Accounting reference date:

	 	31 December

37

 

	 	 	 
	Name:	 	Parker Fox Limited
	Incorporation details:

	 	Registered in England and Wales, number 5396605 on
17 March 2005
	 
	 	 
	Registered office:

	 	111 Buckingham Palace Road
	 

	 	London SW1W 0SR
	 
	 	 
	Authorised share capital:

	 	2 ordinary shares of £1 each
	 
	 	 
	Shareholders:

	 	MEM Capital Limited
	 
	 	 
	Directors:

	 	John Clifton Davis (resigning at Completion)
	 
	 	 
	 

	 	Richard Randolph House JR (resigning at Completion)
	 
	 	 
	 

	 	Kirsty Auchincloss (resigning at Completion)
	 
	 	 
	 

	 	Iain McKenzie (resigning at Completion)
	 
	 	 
	Secretary:

	 	David Hughes (resigning at Completion)
	 
	 	 
	Auditors:

	 	Exempt from audit under s477 Companies Act 2006
	 
	 	 
	Accounting reference date:

	 	31 March

38

 

Schedule 2)

Completion matters

	1	 	Documents and other items to be delivered by the Seller
	 
	1.1	 	At Completion, the Seller shall deliver (or ensure delivery of) the following documents and
other items to the Buyer:

	 	(a)	 	duly executed stock transfer forms for the Sale Shares in favour of the Buyer;
	 
	 	(b)	 	a copy of the letter to be submitted by the Seller, on the Completion Date, to
the Stamp Office in connection with the payment of stamp duty on the acquisition of MEM
Holdings Shares pursuant to the Minority SPA;
	 
	 	(c)	 	share certificate(s) for the PUK Shares or an indemnity for any lost share
certificate in the Agreed Form;
	 
	 	(d)	 	share certificates for all shares in any subsidiary of the Company or an
indemnity for any lost share certificate in the Agreed Form (excluding for the
avoidance of doubt any certificate or indemnity for the MEM Holdings Shares);
	 
	 	(e)	 	a counterpart of the MEM US Licence duly executed by Direct MicroLoans LLC,
	 
	 	(f)	 	a counterpart of all other Transaction Documents to which it is a party;
	 
	 	(g)	 	a counterpart of the CompuCredit Restrictive Covenant duly executed by the
Seller’s Guarantor;
	 
	 	(h)	 	a fully executed copy of the Iain McKenzie Compromise Agreement;
	 
	 	(i)	 	a counterpart of the Iain McKenzie Restrictive Covenant duly executed by Iain
McKenzie;
	 
	 	(j)	 	as agent for each relevant Group Company:

	 	(i)	 	the statutory and minute books for each Group Company;
	 
	 	(ii)	 	the common seal each of Purpose Acquisition Company Limited and
Purpose UK Holdings Limited;
	 
	 	(iii)	 	the certificate of incorporation and any certificates of
incorporation on change of name of each Group Company; and
	 
	 	(iv)	 	copies of the memorandum and articles of association of each
Group Company;

	 	(k)	 	written resignations in the Agreed Form from each director and each secretary
of each Group Company identified in schedule 1 as resigning on Completion from their
respective offices and employments with the relevant Group Company;
	 
	 	(l)	 	evidence in a form satisfactory to the Buyer that all Guarantees given by any
Group Company for liabilities of any member of the Sellers’ Group have been released;

39

 

	 	(m)	 	evidence that all Security Interests granted by any Group Company over all or
part of its assets or undertaking excluding those listed in schedule 1 have been
released;
	 
	 	(n)	 	the deeds and documents of title for the Properties;
	 
	 	(o)	 	a duty executed and completed Internal Revenue Service form 8832 for Parker Fox
on which Parker Fox elects to be treated as a disregarded entity for US tax purposes,
effective from a date that is prior to the Closing Date, and a U.S. postal certified
receipt that evidences mailing the form within 75 days from the chosen effective date;
	 
	 	(p)	 	a duty executed and completed Internal Revenue Service form 8832 for the
Seller, on which the Seller elects to be treated as a disregarded entity for US tax
purposes, effective for a date that is prior to the Closing Date, but within 75 days of
the Closing Date.

	2	 	Obligations of the Seller
	 
	2.1	 	At Completion, the Seller shall procure that a duly convened and quorate board meeting of the
each Group Company is held at which:

	 	(a)	 	the transfers of the Sale Shares are resolved to be registered (subject only to
their being duly stamped);
	 
	 	(b)	 	the following persons are validly appointed as additional directors of the
relevant Group Company specified below:

	 	 	 
	Name of new director	 	Name of Group Company
	Jeffrey Weiss

	 	Each Group Company
	Randy Underwood

	 	Each Group Company
	Roy W. Hibberd

	 	Each Group Company

	 	(c)	 	on the appointments referred to in paragraph 2.1(b) being made, the persons
identified in schedule 1 as resigning on Completion cease to be directors of the
relevant Group Company;
	 
	 	(d)	 	the following persons are appointed as secretary of the relevant Group Company
specified in place of the relevant retiring secretary:

	 	 	 
	Name of new secretary	 	Name of Group Company
	Roy W. Hibberd

	 	Each Group Company

	 	(e)	 	the execution of all relevant Transaction Documents to which a Group Company is
a party is approved; and
	 
	 	(f)	 	each member of the Seller’s Group repays all outstanding loans (if any) made to
it by a Group Company and outstanding at Completion.

	3	 	Obligations of the Buyer
	 
	3.1	 	At Completion, the Buyer shall:

	 	(a)	 	pay the Purchase Price less the Promissory Note Amount to the Seller in
accordance with clause 17.1 (Payments);

40 

 

	 	(b)	 	procure the repayment of the Promissory Note by the Company by paying an amount
equal to the Promissory Note Amount to the Seller (on behalf of the Seller’s Guarantor)
in accordance with clause 17.1 (Payments); and
	 
	 	(c)	 	deliver to the Seller (or ensure the delivery to the Seller of):

	 	(i)	 	a counterpart of the MEM US Licence duly executed by any member
of the Buyer’s Group (immediately prior to Completion) which is party to the
MEM US Licence;
	 
	 	(ii)	 	a duly executed counterpart of the CompuCredit Restrictive
Covenant;
	 
	 	(iii)	 	a duly executed counterpart of all other Transaction Documents
to which it is a party.

	4	 	Joint obligations of the Buyer and the Seller
	 
	4.1	 	At Completion, the Buyer and the Seller shall join in procuring that:

	 	(a)	 	all existing bank mandates in force for each Group Company be altered (in such
manner as the Buyer requires at Completion) to reflect the resignations and
appointments referred to in paragraph 2.1; and
	 
	 	(b)	 	the registered office of each Group Company be changed to 6th Floor, 77
Gracechurch Street, London EC3V 0AS or such other address as the Buyer may notify to
the Seller not later than the Business Day prior to the Completion Date.

41

 

Schedule 3.

Warranties

	1	 	General
	 
	1.1	 	Contents of this schedule
	 
	 	 	This schedule 3 is set out in the following paragraphs:

	 	1	 	General
	 
	 	2	 	Accounts and Interim Accounts
	 
	 	3	 	Finance, borrowings and liabilities
	 
	 	4	 	The Business, trading and disposals
	 
	 	5	 	Assets
	 
	 	6	 	Directors and employees
	 
	 	7	 	Pension arrangements
	 
	 	8	 	Information technology
	 
	 	9	 	Intellectual property
	 
	 	10	 	Property matters and interests in land
	 
	 	11	 	Litigation, disputes and investigations
	 
	 	12	 	Insurance
	 
	 	13	 	Compliance and regulatory
	 
	 	14	 	Constitutional and the Seller
	 
	 	15	 	Insolvency

	2	 	Accounts and Interim Accounts
	 
	2.1	 	The Accounts:

	 	(a)	 	comply with the requirements of the Companies Act;
	 
	 	(b)	 	comply with all current statements of standard accounting practice and
financial reporting standards applicable to a company incorporated in the United
Kingdom and have been prepared in accordance with the historical cost convention; and
	 
	 	(c)	 	give a true and fair view of:

	 	(i)	 	the state of affairs of the Company as at the Accounts Date;
and
	 
	 	(ii)	 	the profit or losses of the Company for the financial year
ended on that date.

	2.2	 	The Interim Accounts of each Group Company:

	 	(a)	 	have been prepared on a basis consistent with the relevant Accounts for such
Group Company;
	 
	 	(b)	 	give a true and fair view of:

	 	(i)	 	the state of affairs of the relevant Group Company for the
fiscal period or partial fiscal period to which they relate;

42

 

	 	(ii)	 	the profit or losses of the relevant Group Company for the
fiscal period or partial fiscal period to which they relate.

	2.3	 	The accounting reference date of each member of the Group is 31 December.
	 
	2.4	 	Since the Accounts Date:

	 	(a)	 	the Business has been carried on in the ordinary course and in the same manner
as immediately before the Accounts Date;
	 
	 	(b)	 	no loan or loan capital has been repaid by any Group Company in whole or in
part or has become liable to be so repaid;
	 
	 	(c)	 	no Group Company has declared, paid or made any dividend or other distribution.

	3	 	Finance, borrowings and liabilities
	 
	3.1	 	Overdraft, loan and other finance facilities
	 
	 	 	Full details of all:

	 	(a)	 	overdraft, loan and other financial facilities available to each Group Company;
and
	 
	 	(b)	 	agreements or arrangements for hire or rent, hire-purchase, conditional sale or
purchase by way of credit or instalment payment to which any Group Company is a party
(each a Lease Agreement), save for Small Lease Agreements (as defined below),

	 	 	(including any Security Interest relating to such facilities, agreements or arrangements)
and true and correct copies of all documents relating to such facilities, agreements or
arrangements are set out in the Data Room.
	 
	 	 	For the purposes of this schedule, a Small Lease Agreement is any agreement or arrangement
for hire or rent, hire-purchase, conditional sale or purchase by way of credit or instalment
payment to which any Group Company is a party where the annual payments thereunder do not
exceed £10,000.
	 
	3.2	 	No finder’s fees or brokerage payable by the Group
	 
	 	 	No-one is entitled to receive from the Company or any member of the Group any finder’s fee,
brokerage or commission or other benefit in connection with the sale of the Sale Shares.
	 
	4	 	The Business, trading and disposals
	 
	4.1	 	Supplier Contracts

	 	(a)	 	A schedule of all material supplier agreements pursuant to which the Group
obtains goods and services is set out in the Data Room.
	 
	 	(b)	 	No distributor, agent or supplier has given written notice to any member of the
Group of an intention to cease supplies to the Group or any member of the Group.

43

 

	4.2	 	Customer Loan Agreements and Customers

	 	(a)	 	Each Customer Loan Agreement has been originated by MEM as sole principal
without any agent lender pursuant to its underwriting, creditworthiness and other
policies and procedures as applicable at the relevant time and was opened on the terms
of one of the standard form agreements set out in the Data Room. There are no loans
taken out prior to 15 July 2010 which remain outstanding that have not been fully
provided for in the accounts of MEM.
	 
	 	(b)	 	MEM is not in respect of the Customer Loan Agreements involved in any
litigation, arbitration or mediation, administrative, or criminal proceedings (apart
from (if relevant) the collection of undisputed debts in the ordinary course of the
Business), or so far as the Seller is aware any investigation by the Office of Fair
Trading or Ombudsman in each case whether as claimant, plaintiff, defendant or
otherwise and so far as the Seller is aware no such litigation, arbitration, mediation,
administrative or criminal proceedings or investigation in respect of the Customer Loan
Agreements is pending.
	 
	 	(c)	 	All Customer Accounts have been properly opened, maintained and serviced by MEM
in accordance with the applicable Customer Loan Agreements and all payments or monies
received by MEM with respect to payment of any Customer borrowings have been properly
applied to the relevant Customer Account.
	 
	 	(d)	 	MEM has not in the last two years received any written notice of:

	 	(i)	 	any allegation that any Customer Loan Agreement does not comply
with Part V of the CCA, Financial Services (Distance Marketing) Regulations
2004 Consumer Protection from Unfair Trading Regulations 2008, Electronic
Commerce (EC Directive) Regulations 2002 or Data Protection Laws; or
	 
	 	(ii)	 	any other dispute with any Customers, including disputes
arising out of Data Protection Laws except for collection of undisputed
Customer Debts and proceedings for insolvency of Customers.

	 	(e)	 	So far as the Seller is aware, each person carrying on credit brokerage as
defined in section 145 of the CCA in relation to MEM held any necessary licence under
the CCA at the relevant time.
	 
	 	(f)	 	MEM is the sole legal and beneficial owner of the Customer Loan Agreements and
the receivables and creditor’s rights under the Customer Loan Agreements free from any
encumbrances.
	 
	 	(g)	 	MEM retains (whether electronically or otherwise) the original Customer Loan
Agreement signed by the Customer and on behalf of MEM together with the banking details
referred to in it such that MEM is able:

	 	(i)	 	to satisfy the requirements of section 77 of the CCA;
	 
	 	(ii)	 	to satisfy the requirements for pleading particulars of the
Customer Loan Agreement and its terms in court proceedings in the United
Kingdom; and
	 
	 	(iii)	 	to respond to any claims in connection with the Customer Loan
Agreement until the date falling two years after the Customer Loan Agreement
has terminated, including any claims under section 140A to 140D of the CCA.

44

 

	4.3	 	Group Trading
	 
	 	 	Other than MEM, no Group Company has conducted any business or trading activity in the last
three years.
	 
	4.4	 	Restrictions on the Group
	 
	 	 	No Group Company is a party to any agreement or arrangement which significantly restricts
the fields in which the Group may carry on its business.
	 
	4.5	 	Confidentiality or secrecy arrangements which restrict the Group’s activities
	 
	 	 	Save in the normal course of the Business, no member of the Group is a party to any
confidentiality or secrecy agreement or undertaking or other arrangement which may restrict
its use or disclosure of any information.
	 
	4.6	 	Terms of contracts to which the Group is a party
	 
	 	 	No Group Company is a party to any agreement or arrangement which:

	 	(a)	 	has been entered into otherwise than on arm’s length terms or outside the
ordinary and normal course of business;
	 
	 	(b)	 	imposes any commitment on the relevant Group Company to obtain or supply goods
or services exclusively from or to any person;
	 
	 	(c)	 	contains any commitment for the supply or purchase of goods or services where
the supply, purchase or delivery may take place more than 12 months after the time of
fixing of the price;
	 
	 	(d)	 	is incapable of termination by the relevant Group Company in accordance with
its terms on no more than 6 months’ notice; or
	 
	 	(e)	 	gives any party an option to acquire or dispose of any asset or requires
another person to do so.

	5	 	Assets
	 
	5.1	 	Asset Register
	 
	 	 	MEM keeps an up to date plant register of the fixed assets used by it in the Business (Fixed
Assets) and a copy of the register is set out in the Data Room.
	 
	5.2	 	Ownership of Fixed Assets free from third party rights

	 	(a)	 	Save for assets held under Lease Agreements, Small Lease Agreements and
Permitted Security Interests (as defined in paragraph 5.2(b) below), the Fixed Assets
are the property of the relevant Group Company free from any Security Interest.
	 
	 	(b)	 	For the purposes of this paragraph, Permitted Security Interest means:

	 	(A)	 	any lien arising in the ordinary course of the
Business to secure amounts which are not material;

45

 

	 	(B)	 	any unpaid vendor’s or supplier’s lien arising
in the ordinary course of the Business to secure amounts due for goods
or services sold or supplied; and
	 
	 	(C)	 	liens arising by operation of law, including a
banker’s lien.

	6	 	Directors and employees
	 
	6.1	 	Definition
	 
	 	 	In this paragraph 6, unless the context otherwise requires:
	 
	 	 	Senior Managers means the employees earning a gross basic salary in excess of £80,000 per
annum (and Senior Manager means any one of them)
	 
	6.2	 	Details of employees
	 
	 	 	There is a schedule included in the Data Room showing the following information in relation
to each employee of each Group Company namely:

	 	(a)	 	name of employee;
	 
	 	(b)	 	date of birth;
	 
	 	(c)	 	department and grade;
	 
	 	(d)	 	emoluments (including any bonus or commission arrangements and any non-cash
benefits);
	 
	 	(e)	 	date of commencement of employment or of any previous employment with which
such employment is continuous;
	 
	 	(f)	 	notice period required to be given by the relevant Group Company and the
employee;
	 
	 	(g)	 	whether or not a member of any of the Disclosed Schemes;
	 
	 	(h)	 	whether or not a member of a trade union; and
	 
	 	(i)	 	date of last increase in salary.

	 	 	So far as the Seller is aware, each Group Company has complied with its legal and
contractual obligations in respect of applicants for employment, its employees and former
employees in all material respects.
	 
	6.3	 	Copies of contracts of employment and consultancy agreements
	 
	 	 	Copies of all contract of employment with the Senior Management and a representative sample
of the contracts of employment between each relevant member of the Group and each of its
other employees, and any other documents currently in force relating to the employment of
the employees are set out in the Data Room, and copies of any consultancy agreements
currently in force to which the Group is a party, are set out in the Data Room.
	 
	6.4	 	Redundancies

46

 

	 	(a)	 	During the two years before the date of this Agreement, no Group Company has
given notice of any redundancies or has started redundancy consultations with any trade
union, staff association or any other body representing workers.
	 
	 	(b)	 	The Data Room contains full details of any arrangement or practice of any Group
Company regarding redundancy payments, whether contractual, customary or discretionary,
above the statutory minimum.

	6.5	 	Loans to employees
	 
	 	 	Other than as disclosed in the Data Room, there are no amounts owing or agreed to be loaned
or advanced by any Group Company to Group Company employees (other than amounts representing
remuneration accrued due for the current pay period, accrued holiday pay for the current
holiday year or for reimbursement of expenses).
	 
	6.6	 	Changes since the Accounts Date

	 	(a)	 	Since the Accounts Date, no material change has been made by any Group Company
to the terms of employment of any of its directors or Senior Managers.
	 
	 	(b)	 	Since the Accounts Date, no director or Senior Manager has given notice
terminating his contract of employment or is under notice of dismissal and no amount
due to or in respect of any employee or former employee is in arrear and unpaid other
than his salary for the month current at the date of this Agreement and in respect of
the reimbursement of expenses reasonably and properly incurred in the two months prior
to the date of this Agreement.
	 
	 	(c)	 	No Group Company has transferred or intends to transfer any employees from
working for any Group Company during the period between the date of this Agreement and
Completion.

	6.7	 	No disputes in relation to employees

	 	(a)	 	During the two years before the date of this Agreement, no claim by or on
behalf of any Group Company director, Senior Manager or other employee has been made or
threatened against any Group Company or, so far as the Seller is aware, against any
person whom any Group Company is or may be liable to compensate or indemnify. So far
as the Seller is aware there are no present circumstances (including Completion) which
are likely to give rise to any such dispute.
	 
	 	(b)	 	There is no existing or so far as the Seller is aware pending dispute between
any Group Company and any material number or category of its employees or any trade
union, works council, staff association or other organisation formed for a similar
purpose.

	6.8	 	No change of control
	 
	 	 	So far as the Seller is aware, no Senior Manager of any Group Company is entitled on a
change of control of any Group Company to treat the change of control as amounting to a
breach of the relevant contract or entitling him to any payment, additional period of
notice, increase in any compensation or benefits, acceleration of the time of payment or
vesting of any such benefits whatsoever (whether or not payable or provided by a Group
Company) or entitling him to treat himself as redundant or otherwise dismissed or released
from any obligation.

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	6.9	 	Collective agreements
	 
	 	 	There is no collective bargaining agreement or other arrangement (whether binding or not)
between any Group Company and any trade union or other body representing its employees.
	 
	6.10	 	Share options/incentive plans
	 
	 	 	No Group Company has or is proposing to introduce any share incentive scheme, share option
scheme or profit sharing bonus or other incentive scheme for any director, officer or
employee.
	 
	7	 	Pension arrangements
	 
	7.1	 	In relation to each Disclosed Scheme, the Data Room contains full particulars of all the
benefits provided by and the terms of each Disclosed Scheme. All information set out in the
Data Room in connection with the Disclosed Schemes is complete and accurate (and not
misleading) in all material respects.
	 
	7.2	 	Save in relation to the Disclosed Schemes, there is not and has not been in operation, and no
proposal, undertaking or assurance has been announced, or given to any Group Company employee,
to enter into or establish, any agreement, arrangement, custom or practice (whether
enforceable or not) for the provision of Relevant Benefits (as defined below) for any person
to which any Group Company is, has been, or will be a party and no Group Company has paid,
provided or contributed, is or will be under any obligation to pay, provide or contribute, to
any such agreement, arrangement, custom or practice for the provision of Relevant Benefits or
any other costs or expenses in respect of the provision of any Relevant Benefits and no Group
Company has provided Relevant Benefits on a voluntary basis.
	 
	 	 	Relevant Benefits has the meaning given in section 255(5) of the Pensions Act 2004.
	 
	7.3	 	The Stakeholder Scheme is a stakeholder pension scheme within the meaning of section 1 of the
Welfare Reform and Pensions Act 1999. Each applicable Group Company complies with and at all
times has complied with all of its obligations under Part 1 of that Act and all related
regulations including the duty to offer access to a stakeholder pension scheme in accordance
with section 3 of that Act and the Stakeholder Pension Schemes Regulations 2000 and all
persons who are entitled to membership of the Stakeholder Scheme have been invited to join
from the date from which they were entitled. No Group Company makes any employer
contribution, and no Group Company will become liable to make any employer contribution, to
the Stakeholder Scheme and all employee contributions have been paid to the Stakeholder Scheme
within the applicable time limits.
	 
	7.4	 	There is no contribution or premium due and payable by any member of the Group to the
Disclosed Schemes which is unpaid or unaccrued.
	 
	7.5	 	Each relevant Group Company, and, so far as the Seller is aware, the administrator of each of
the Disclosed Schemes have duly complied with all their obligations and duties (including
statutory obligations) under and in respect of each of the Disclosed Schemes.
	 
	7.6	 	No rights under an occupational pension scheme in respect of any Group Company employee have
transferred to any Group Company as a result of the Transfer of Undertakings (Protection of
Employment) Regulations 2006.
	 
	7.7	 	The Disclosed Schemes provide only money purchase benefits (as defined in section 152(4)
Finance Act 2004) for the beneficiaries of the Disclosed Schemes and no Group Company

48

 

	 	 	nor the Seller has given any promise or assurance (oral or written) to any beneficiary that
his benefits will be calculated wholly or partly by reference to any person’s remuneration
or equate (approximately or exactly) to any particular amount.
	 
	7.8	 	No claim in relation to any Disclosed Schemes has been made or threatened against any Group
Company and the Seller is unaware of any such claim in respect of any person whom any Group
Company is or may be liable to compensate or indemnify. The Seller is unaware of any fact or
circumstance exists which may give rise to any such claim.
	 
	8	 	Information technology
	 
	8.1	 	Definition
	 
	 	 	In this paragraph 8, unless the context otherwise requires:
	 
	 	 	Company means MEM Capital Limited and/or MEM Consumer Finance Limited and/or Parker Fox
Limited
	 
	 	 	Computer Systems means any material computer hardware and software (excluding the software
set out in paragraph 9.7(g)), communications equipment, servers and networks
	 
	8.2	 	Computer Systems used by the Company
	 
	 	 	Details of any Computer Systems used by the Company, which do not comprise a network of
linked workstations or personal computers of a type generally available to the public, are
set out in the Data Room.
	 
	8.3	 	Computer software used by the Company

	 	(a)	 	The Company does not use any computer software other than standard off the
shelf packages generally available to the public (Standard Software) and other than as
set out and referred to in paragraph 9.7(g) and so far as the Seller is aware no
Standard Software used by the Company has been materially modified.
	 
	 	(b)	 	The Company possesses licences with respect to its use of Standard Software and
so far as the Seller is aware no licence terms have been materially breached.

	8.4	 	System breakdowns
	 
	 	 	In the 24 months immediately preceding the date of this Agreement, the Company has not
suffered any failures or breakdowns of any of the Computer Systems that have resulted in
significant or repeated disruption or significant loss of data.
	 
	8.5	 	Support and maintenance
	 
	 	 	The Company has support or maintenance agreements or arrangements for the material items of
hardware and software included in the Computer Systems. All such agreements or arrangements
are detailed in the Data Room.
	 
	8.6	 	Data security
	 
	 	 	The Company has taken reasonable precautions to preserve the security of data held or
transmitted by the Computer Systems including the use of virus checking software, password
protection procedures and the taking and storing of back-up copies of data.

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	8.7	 	Data protection

	 	(a)	 	So far as the Seller is aware the Company has complied in all material respects
with the Data Protection Act 1998 and the Privacy and Electronic Communications (EC
Directive) Regulations 2003 (Data Protection Laws).
	 
	 	(b)	 	In the 24 months preceding the date of this Agreement, the Company has not
received a notice from the UK Information Commissioner’s Office alleging non-compliance
with the Data Protection Laws.

	9	 	Intellectual property
	 
	9.1	 	Definitions
	 
	 	 	In this paragraph 9, unless the context otherwise requires:
	 
	 	 	Company means MEM Capital Limited and/or MEM Consumer Finance Limited and/or Parker Fox
Limited
	 
	 	 	Company IPR means all material Intellectual Property set out in schedule 9 but excluding for
the avoidance of doubt the software set out in the IT Schedule (as defined in paragraph
9.7(a))
	 
	 	 	Intellectual Property means patents, designs and design rights, trade marks, trade names and
service marks, copyright, rights in computer software, database rights and rights in and to
confidential information (including know-how and trade secrets) and in each case, whether
registered or unregistered and including all applications (and rights to apply) for the same
and all other intellectual property rights and equivalent or similar forms of protection
existing anywhere in the world
	 
	9.2	 	Challenges to Company IPR

	 	(a)	 	So far as the Seller is aware the Company IPR:

	 	(i)	 	is not subject to any application for cancellation, amendment,
licence of right or compulsory licence; or
	 
	 	(ii)	 	is not the subject of a claim or opposition from any person as
to title, validity or enforceability.

	 	(b)	 	The Company has not been notified of any:

	 	(i)	 	pending litigation or other proceedings (whether legal or
administrative); or
	 
	 	(ii)	 	infringement of the Intellectual Property of any other person,

	 	 	 	involving any of the Company IPR.

	9.3	 	Payment of Company IPR fees
	 
	 	 	All application, renewal and other official statutory and regulatory fees rendered to and
received by the Company before the date of this Agreement relating to the administration of
the Company IPR that it owns have been paid.
	 
	9.4	 	No sale of Company IPR

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	 	 	Since the Accounts Date, the Company has not sold any Company IPR that it owns.
	 
	9.5	 	No infringement of Company IPR
	 
	 	 	The Company has not within the past 24 months issued or threatened to issue any legal
proceedings against any third party in relation to the infringement of the Company IPR that
it owns.
	 
	9.6	 	Licences out to third parties
	 
	 	 	The Company has not granted any licences under any Company IPR owned by it or licensed to
it.
	 
	9.7	 	Software

	 	(a)	 	Set out in the Disclosure Letter with specific reference to this paragraph 9.7
is an accurate and complete list of all of the following:

	 	(i)	 	All software owned by the Company or under development by the
Company related to the Business (Developed Software);

	 	(ii)	 	All software, other than the Developed Software, related to the
Business that is used by the Company to provide services to end users or
customers of the Company (the Company Software);

	 	(iii)	 	All software, other than Company Software and Developed
Software, related to the Business that is licensed to or from third parties or
otherwise used by the Company for any purpose whatsoever (collectively, Third
Party Software),

	 	 	 	(the IT Schedule).
	 
	 	(b)	 	So far as the Seller is aware, no other material software, other than the
Developed Software, the Company Software and Third Party Software, is required to
operate the Business as currently conducted.
	 
	 	(c)	 	Except as set forth in the IT Schedule, the Company has good title to the
Developed Software and so far as the Seller is aware has the full right and license to
use, copy, modify and distribute all of Developed Software, as used or required to
operate the Business as currently operated, free and clear of any liens, claims,
charges or encumbrances which would affect the use thereof in connection with the
operation of the Business as of Completion. Except as set out in the IT Schedule, the
Developed Software does not contain any derivative works or any programming or other
materials not owned in their entirety by the Company.
	 
	 	(d)	 	With respect to software which is licensed by the Company to third parties or
used in connection with the providing of services to end users or other third parties
in connection with the Business:

	 	(i)	 	Except as set out in the IT Schedule, the Company maintains
machine-readable and master-reproducible copies;
	 
	 	(ii)	 	In each case, the machine-readable copy substantially conforms
to the corresponding source code listing;

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	 	(iii)	 	So far as the Seller is aware, such software can be maintained
and modified by reasonably competent programmers familiar with such language,
hardware and operating systems;
	 
	 	(iv)	 	Except as set forth in the Disclosure Letter, the software
operates substantially in compliance with its specification.

	 	(e)	 	So far as the Seller is aware, none of the Company Software, Third Party
Software or Developed Software or their respective past or current uses by or through
the Company has violated or infringed upon, or is violating or infringing upon, any
software, patent, copyright, trade secret, moral right or other intangible of any
person, whether such rights are registered or unregistered. The Company has taken
reasonable and customary steps to protect all trade secrets and copyrights with respect
to the Company Software and the Developed Software. The Company has so far as the
Seller is aware performed all obligations imposed upon it with regard to the Company
Software and Third Party Software that are required to be performed by it on or prior
to the date of this Agreement, and neither the relevant Company nor, so far as the
Seller is aware, any other party are in breach of or default thereunder in any respect,
nor so far as the Seller is aware, is there any event which with notice or lapse of
time or both would constitute a default thereunder.
	 
	 	(f)	 	So far as the Seller is aware, no person is violating or infringing upon, or
has violated or infringed upon at any time, any of the Company’s proprietary rights to
any of the software listed in the IT Schedule.
	 
	 	(g)	 	None of the Developed Software is owned by or registered in the name of any
current or former owner, shareholder, partner, director, executive, officer, employee,
salesman, agent, customer, contractor or representative, nor does any such person have
any interest therein or right thereto, including, but not limited to, the right to
royalty payments. Except as listed in the IT Schedule, the Company has granted no
third party any exclusive rights or transferred ownership related to any Developed
Software.
	 
	 	(h)	 	The IT Schedule identifies all individuals who have contributed to the
development of the Developed Software. All personnel, including employees, agents,
consultants and contractors, who have contributed to or participated in the conception
and development of the Developed Software on behalf of the Company either (a) have been
party to deed of employment undertakings with one of the Companies that afford the
Company full, effective, exclusive, and original ownership of all tangible and
intangible property thereby arising, or (b) have executed appropriate instruments of
assignment in favour of one of the Companies that have conveyed to the Company full,
effective, and exclusive ownership of all tangible and intangible property thereby
arising.
	 
	 	(i)	 	The source code of Loanbook and Loanbook USA as defined in schedule 9.7 will
compile into the machine-readable copy of the Developed Software and Company Software
as used by the Company as of Completion in all material respects.

	9.8	 	Additional Representations.

(a) So far as the Seller is aware, none of the Developed Software, Company Software or
Company IPR is subject to any proceeding or outstanding decree, order, judgment, settlement
agreement, or other agreement that restricts in any manner the use, transfer or licensing

52

 

thereof by the Company or that may affect the validity, use or enforceability of such
Developed Software, Company Software or Company IPR.

(b) Open Source. All development, use and distribution of Developed Software, or any Open
Source Materials by or through the Company is so far as the Seller is aware in full
compliance with all Open Source Licenses applicable thereto, including without limitation
all copyright notice and attribution requirements. The IT Schedule lists all material Open
Source Materials used in the Business, including without limitation in development or
testing of the Developed Software. Except as set forth in the IT Schedule, the Company has
so far as the Seller is aware not (i) incorporated Open Source Materials into, or combined
Open Source Materials with, any of the Developed Software; (ii) distributed Open Source
Materials in conjunction with or for use with any of the Developed Software; or (iii) used
Copyleft Materials in a manner that requires the Developed Software, any portion thereof, or
any other Company IPR or Third Party Software to be subject to Copyleft Licenses (or any of
the obligations or attributes thereof). “Open Source Materials” means any software or other
technology subject to an Open Source License. “Open Source License” means any license
meeting the Open Source Definition (as promulgated by the Open Source Initiative) or the
Free Software Definition (as promulgated by the Free Software Foundation), or any
substantially similar license, including but not limited to any license approved by the Open
Source Initiative, or any Creative Commons License. For avoidance of doubt, Open Source
Licenses include, without limitation, Copyleft Licenses. Copyleft Materials means any
software or other technology subject to a Copyleft License. Copyleft License means any
license that requires, as a condition of use, modification and/or distribution of Copyleft
Materials, that such Copyleft Materials, or other software or other technology incorporated
into, derived from, used, or distributed with such Copyleft Materials: (i) in the case of
software, be made available or distributed in a form other than binary (e.g., source code
form), (ii) be licensed for the purpose of preparing derivative works, (iii) be licensed
under terms that allow the software or portions thereof or interfaces therefore to be
reverse engineered, reverse assembled or disassembled (other than by operation of law), or
(iv) be redistributable at no license fee.

	9.9	 	Contaminants; IT Security.
	 
	 	 	The Developed Software is and so far as the Seller is aware the Company Software is
free of any disabling codes or instructions, timer, copy protection device, clock, counter
or other limiting design or routing and any “back door,” “time bomb,” “Trojan horse,”
“worm,” “drop dead device,” “virus,” “harmful code,” or other software routines or hardware
components that in each case permit unauthorised access or the unauthorised disablement or
unauthorised erasure of such software (or parts thereof) or data or other software of users
or otherwise cause them to be incapable of being used in the full manner contemplated in
the applicable documentation (collectively, Contaminants). The Company has taken
reasonable steps and implemented reasonable procedures to ensure that information
technology systems included in the Developed Software or otherwise used to operate the
Business are free from Contaminants. The Company has disaster recovery plans procedures
and facilities for the Business and has taken such reasonable steps as it considers
appropriate to safeguard the information technology systems related to the Developed
Software and data within. So far as the Seller is aware there have been no unauthorised
intrusions or breaches of the security of such information technology systems.
	 
	10	 	Property matters and interests in land
	 
	10.1	 	Leasehold Title

	 	(a)	 	The details of the Properties in the table in schedule 7 are complete, true and
accurate. The Properties in the table in schedule 7 are the only properties owned,

53

 

	 	 	 	controlled, used or occupied by any Group Company and all deeds and documents
necessary to prove title to each Property are in the possession of the relevant
Group Company. The Group holds the Properties under the terms of leases or licence
arrangements disclosed in schedule 7 as amended or supplemented by the other
documents (if any) (Leases).
	 
	 	(b)	 	A Group Company is the legal and beneficial owner in possession of each
Property and is in exclusive occupation and each Property is free from any mortgage,
charge (fixed or floating), pledge, lien, option, right to acquire, right of
pre-emption, assignment by way of security or trust arrangement for the purpose of
providing security or other security interest of any kind (including any retention
arrangement), or any agreement to create any of the foregoing.
	 
	 	(c)	 	No Group Company has any contingent liability in respect of any property assets
other than the Properties.

	10.2	 	Registration and documents
	 
	 	 	The Company has provided the Buyer with all documents relating to the Properties of which it
has knowledge. All those documents are in the Group’s possession and control, free from
liens and undertakings.
	 
	10.3	 	Stamp duty
	 
	 	 	As necessary, all title deeds are accompanied by a certificate from the HM Revenue & Customs
evidencing submission of a land transaction return for the purposes of stamp duty land tax
in relation to all circumstances in respect of which a land transaction return is required
to be made.
	 
	10.4	 	Benefits of the Properties
	 
	 	 	Benefits means (in each case whether or not registered) a right or easement (including any
acquired or being acquired through prescription) and the benefit of any restriction,
stipulation, restrictive covenant, franchise or other interest over any land other than the
Properties;
	 
	 	 	The Benefits are enjoyed freely without interruption and without restriction as to hours of
use or otherwise and are held for the same estate or interest as the relevant Group
Company’s estate or interest in the Properties and so far as the Seller is aware are all the
Benefits reasonably necessary for the current use and enjoyment of the Properties by the
relevant Group Company.
	 
	10.5	 	Use

	 	(a)	 	There are no restrictions in the Leases or the superior title which prevents
the Properties being used now or in the future for the uses permitted in each of the
Leases.
	 
	 	(b)	 	No Group Company has received written notice from a third party disputing such
Group Company’s right to occupy any of the Properties.

	10.6	 	Consents
	 
	 	 	Any consents required for:

	 	(a)	 	the grant of the Leases; and

54

 

	 	(b)	 	any works carried out by or change of use effected by any tenant,

	 	 	have been obtained and placed with the documents of title along with evidence of the
registration of any such grant or vesting where requisite.
	 
	10.7	 	Notices and breach

	 	(a)	 	The Seller is not aware of any subsisting material breach of the covenants or
conditions contained in the Leases whether on the part of the landlord or the tenant,
or any other event of a material nature that could give rise to forfeiture of the
Leases.
	 
	 	(b)	 	No Group Company is involved in any dispute with the relevant landlord of the
Leases.
	 
	 	(c)	 	Neither the Seller nor any Group Company has received any notice or order
affecting any Property from any government department, any authority or any third
party.

	11	 	Litigation, disputes and investigations
	 
	11.1	 	Apart from (if relevant):

	 	(a)	 	the collection of undisputed Customer Debts and proceedings for insolvency of
Customers; and
	 
	 	(b)	 	the collection of other undisputed debts (excluding for the avoidance of doubt
undisputed Customer Debts and proceedings for insolvency of Customers) in the ordinary
course of the Business, where involving debts of not more than £10,000 in any
individual case or £50,000 in aggregate,

	 	 	no Group Company is engaged in any capacity in any material litigation, arbitration,
prosecution or other legal proceedings or alternative dispute resolution or in any
proceedings or hearings before any Authority or so far as the Seller is aware in any
investigation by the Ombudsman; no such matters are, so far as the Seller is aware, pending
or threatened.
	 
	11.2	 	There is no outstanding judgment, order, decree, arbitral or mediation award or decision of
any court, tribunal, arbitrator, Authority or Ombudsman against any Group Company.
	 
	11.3	 	No Group Company is party to, nor so far as the Seller is aware, will any Group Company
become party to, the US class action Knox, et al., vs. First Southern Cash Advance, et al.,
No. 5 CV 0445.
	 
	12	 	Insurance
	 
	12.1	 	Details of insurance cover

	 	(a)	 	The particulars of all insurance policies maintained by any member of the Group
or in respect of which any member of the Group has an insured interest and currently in
force (Policies) are set out in the Data Room.
	 
	 	(b)	 	All premiums due in respect of the Policies have been paid in accordance with
agreed instalment plans.

55

 

	12.2	 	Outstanding claims
	 
	 	 	No claim or claims are outstanding either by the insurer or the insured under any of the
Policies.
	 
	12.3	 	Claims made
	 
	 	 	Details of all claims made by any Group Company under any insurance policy in the last 2
years are set out in the Data Room.
	 
	13	 	Compliance and regulatory
	 
	13.1	 	EU/competition matters

	 	(a)	 	So far as the Seller is aware, the Group is currently conducting, and has
conducted, the Business in accordance with the requirements of all Competition Laws
applicable to the Business and has not been and is not being investigated for any
alleged non-compliance or infringement of such Competition Laws.
	 
	 	(b)	 	No Group Company is subject to any prohibition, order, condition, undertaking,
assurance or similar measure or obligation imposed by or under any of the Competition
Laws.
	 
	 	(c)	 	For the purposes of paragraph 13.1 the term Competition Laws means any
applicable laws, regulations or rules dealing with state aid, public procurement,
anti-dumping, anti-competitive agreements decisions or concerted practices, monopolies,
abuse of dominant position, other anti-competitive behaviour, merger situations or
concentrations.

	13.2	 	Authorities required to carry on the Business

	 	(a)	 	Each Group Company has obtained all Authorities currently required by it for or
in connection with the carrying on of the Business by it in the places and in the
manner in which the Business is now carried on by such company; such Authorities are in
full force.
	 
	 	(b)	 	So far as the Seller is aware, there are no circumstances in existence at the
date of this Agreement which would result in any of the Authorities referred to in
paragraph 13.2(a) above being revoked, compulsorily varied, suspended, not renewed or
not varied by request.

	13.3	 	Anti-money Laundering

	 	(a)	 	Without prejudice to paragraph 13.4, MEM has collected and retained KYC Records
in accordance with the collection, retention and verification of evidence policies and
procedures, which are disclosed in the Data Room (including policies for remediation of
deficiencies).
	 
	 	(b)	 	No Group Company has received written notice that the UK Office of Fair Trading
is minded to impose or imposes any requirements under section 33A of the CCA.

	13.4	 	Compliance with Laws

	 	(a)	 	Each Group Company has complied in all material respects with all applicable
laws and regulations, including but not limited to the CCA, Consumer Protection from

56

 

	 	 	 	Unfair Trading Regulations 2008, Financial Services (Distance Marketing) Regulations
2004, Electronic Commerce (EC Directive) Regulations 2002 and Data Protection Laws.
	 
	 	(b)	 	So far as the Seller is aware, there are no circumstances existing at the date
of this Agreement which would result in MEM not being ready to comply in all material
respects with the implementation of Consumer Credit Directive 2008/48/EC into the laws
of England and Wales.

	14	 	Constitutional and the Seller
	 
	14.1	 	Details concerning the Company

	 	(a)	 	The Company is a private company limited by shares properly incorporated and
validly existing under the laws of England and Wales.
	 
	 	(b)	 	The PUK Shares constitute the entire issued share capital of PUK and the MEM
Shares constitute the entire issued share capital of MEM not already owned by PUK.
	 
	 	(c)	 	The information in schedule 1 is accurate in all respects.

	14.2	 	Interests of the Company in other entities
	 
	 	 	Save as disclosed in schedule 1, the Company has no:

	 	(a)	 	interest in the share capital of, or other investment in, any body corporate;
	 
	 	(b)	 	interest in any partnership, joint venture, consortium or other unincorporated
association or arrangement for sharing profit or losses; or
	 
	 	(c)	 	branch, agency, place of business or permanent establishment outside the United
Kingdom or substantial assets outside the United Kingdom.

	14.3	 	Group Companies
	 
	 	 	Save for the MEM Holdings Shares, the entire issued share capital of each Group Company
(excluding for the purposes of this paragraph the Company) is owned legally and beneficially
by the Company or a Group Company.
	 
	14.4	 	No shares or loan capital of the Group Companies under option
	 
	 	 	No share or loan capital of any Group Company is now under option or is agreed or resolved
conditionally or unconditionally to be created or issued or put under option.
	 
	14.5	 	The Sale Shares

	 	(a)	 	The Seller is the only legal and beneficial owner of the PUK Shares.
	 
	 	(b)	 	The Seller will at Completion be the only beneficial owner of the MEM Holdings
Shares.
	 
	 	(c)	 	The Seller is entitled to sell and transfer (or procure the sale and transfer)
the full legal and beneficial ownership in the PUK Shares; and will at Completion be
entitled to sell and transfer the full beneficial ownership in the MEM Holdings Shares
to the Buyer on the terms set out in this Agreement.

57

 

	 	(d)	 	The Company has not allotted any shares other than the PUK Shares and the PUK
Shares are fully paid or credited as fully paid.
	 
	 	(e)	 	There is no Encumbrance in relation to any of the Sale Shares or unissued
 shares in the capital of the Company. No person has claimed to be entitled to an
Encumbrance in relation to any of the Sale Shares and the Company is not under any
obligation (whether actual or contingent) to sell, charge or otherwise dispose of any
of the Sale Shares or any interest therein to any person.

	14.6	 	The Seller

	 	(a)	 	The Seller has the requisite power and authority to enter into and perform, and
has taken all necessary corporate action to authorise the execution and performance of,
its obligations under this Agreement and all other Transaction Documents to which it is
a party. 
	 
	 	(b)	 	The execution and delivery of, and the performance of the obligations of the
Seller under, this Agreement and each of the other Transaction Documents have been duly
authorised by all necessary corporate action on its part whether under its
constitutional documents or otherwise; and
	 
	 	(c)	 	This Agreement constitutes, and the other Transaction Documents executed or to
be executed by the Seller will, when executed by all parties to such agreement,
constitute valid and binding obligations of the Seller enforceable in accordance with
their respective terms.
	 
	 	(d)	 	So far as the Seller is aware, there is no action pending or threatened by any
third party that would restrict the ability of the seller to sell, charge or otherwise
dispose of any of the Sale Shares.

	15	 	Insolvency
	 
	15.1	 	No order has been made and no resolution has been proposed or passed for the winding up of
the Company or the Seller or for a provisional liquidator to be appointed in respect of the
Company or the Seller and no petition has been presented for the purpose of winding up the
Company or the Seller.
	 
	15.2	 	No administration order has been made in respect of the Company or the Seller and no petition
or other application to the court for such an order has been presented or made and no
administrator has been appointed (or notice of intention so to appoint filed in court) in
respect of the Company or the Seller.
	 
	15.3	 	No receiver (which expression shall include an administrative receiver) has been appointed in
respect of the Company or the Seller or in respect of all or any material part of its assets.
	 
	15.4	 	No voluntary arrangement has been proposed under section 1 of the Insolvency Act 1986 in
respect of the Company or the Seller.
	 
	15.5	 	So far as the Seller is aware, no distress, execution or other process has been levied or
threatened in respect of any asset of the Company or the Seller.

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Schedule 4.

Limitations on the Seller’s liability

	1	 	Interpretation
	 
	1.1	 	In this schedule, unless the context otherwise requires:
	 
	 	 	Claims means all and any claims against the Seller under this Agreement, including any claim
for breach of contract or indemnification, or pursuant to any common law or statutory rights
(insofar as is reasonable), covenant or undertaking in relation to any matter relating to
this Agreement and includes Warranty Claims and claims under the Tax Covenant unless
otherwise stated but excludes any claim pursuant to the provisions of clause 12 (Restrictive
Covenants)
	 
	 	 	Expenses means all costs and expenses properly incurred
	 
	 	 	Tax Claim means any claim under the Tax Covenant and/or the Tax Warranties
	 
	 	 	Third Party Claim means, except in paragraph 11 where it shall bear the meaning ascribed to
it in that paragraph, any Claim which arises as a result of, or in connection with any claim
by, or alleged liability to, a third party
	 
	 	 	Title Claim means any claim under any of the Warranties set out in paragraphs 14.5 or 14.6
of schedule 3
	 
	2	 	Application of this schedule
	 
	 	 	The provisions of this schedule apply notwithstanding, and in priority to, any other
provision of this Agreement.
	 
	3	 	Maximum liability
	 
	3.1	 	The maximum aggregate liability of the Seller:

	 	(a)	 	for any Warranty Claim arising relating solely to the title to the share
capital of Parker Fox Limited pursuant to Warranty 14.3, shall be an amount equal to
£1,000,000 (and for the avoidance of doubt any Warranty Claim arising pursuant to any
of the Warranties contained in paragraphs 8 or 9 of schedule 4, whether connected to
any claim relating to Warranty 14.3 or otherwise, shall not be limited by this
paragraph (a));
	 
	 	(b)	 	for Title Claims and Tax Claims shall be 100% of the Purchase Price; and
	 
	 	(c)	 	for all other Claims will not exceed 50% of the Purchase Price

	 	 	provided that, except in the case of fraud, the maximum aggregate liability of the Seller
for all Claims shall not exceed 100% of the Purchase Price.
	 
	4	 	Small claims and threshold
	 
	4.1	 	The Seller will not be liable for any individual Claim unless the amount of such liability,
following application of the other provisions of this schedule, exceeds £10,000 (an Excluded
Claim).

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	4.2	 	For the purposes of paragraph 4.1, Claims of any value arising from the same subject or
consequent on or attributable to one source or original cause shall be aggregated.
	 
	4.3	 	Subject to paragraph 4.1, the Seller will not be liable for any Claim unless the aggregate
liability for all Claims, following application of the other provisions of this schedule,
exceeds £1,000,000 in which case the Seller will, subject to the other provisions of this
schedule, be liable for the entirety of such amount (and not just the excess over £1,000,000).
	 
	5	 	Time limits
	 
	5.1	 	The Seller will not be liable for any Claim unless the Buyer serves notice of the Claim on
the Seller (specifying in reasonable detail the nature of the Claim and, so far as is
practicable, the amount claimed in respect of it):

	 	(a)	 	for any Claim under the Tax Warranties or under the Tax Covenant, on or before
the date falling on the seventh anniversary of Completion; and
	 
	 	(b)	 	for any other Claim, on or before the date falling eighteen months from the
Completion Date.

	5.2	 	A Claim notified in accordance with paragraph 5.1 and not satisfied, settled or withdrawn
will be unenforceable against the Seller on the expiry of the period of 6 months starting on
the day of notification of the Claim, unless proceedings (including particulars of claim) in
respect of such Claim have been both issued and validly served on the Seller within that
period and provided that where a Claim is based upon a liability that is contingent or
otherwise not capable of being quantified:

	 	(a)	 	such 6 month period shall commence on the date that the contingent liability
becomes an actual liability or the liability becomes capable of being quantified; and
	 
	 	(b)	 	until such time as the contingent liability becomes an actual liability or the
liability becomes capable of being quantified, the Seller shall have no liability for
such Claim.

	5.3	 	The Buyer will not be prevented by paragraph 10 (Claims against third party) from notifying
pursuant to paragraph 5.1 a Claim to which those paragraphs apply. If any such Claim is
notified within the applicable time limit in paragraph 5.1 then the 6 month period in
paragraph 5.2 will commence on the day on which paragraph 10 ceases to prevent the Buyer
taking any further steps to pursue the relevant Claim.
	 
	6	 	Rights to information
	 
	6.1	 	If the Buyer gives any notice under paragraphs 5.1, 10 or 11, the Buyer shall, and shall
ensure that each Group Company shall:

	 	(a)	 	allow the Seller and its duly authorised representatives and professional
advisers access for the purposes of the relevant Claim or Third Party Claim to the
premises and personnel of the Buyer and each Group Company, and to any relevant records
and information of the Buyer or any Group Company, (other than records or other
information which would be subject to legal privilege), and permit the Seller and those
representatives and advisers to make copies (at their own cost) of those records and
information; and
	 
	 	(b)	 	if so requested by the Seller, procure at the cost of the Seller that the
auditors of the relevant Group Company at the relevant time(s) grant to the firm of
accountants appointed by the Seller access to their audit working papers in respect of
audits of the

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	 	 	 	relevant Group Company accounts for any relevant financial year in connection with
the relevant Claim or Third Party Claim.

	6.2	 	Access under paragraph 6.1 may be required only at reasonable times during normal business
hours and on reasonable notice and will be subject to the Seller giving such undertakings as
to confidentiality as the Buyer may reasonably require and, in the case of access to the
auditors’ working papers, to the Seller and its appointed accountants signing such letters
holding the auditors harmless as the auditors may reasonably require.
	 
	7	 	Buyer’s knowledge
	 
	7.1	 	The Buyer acknowledges that as at the date of this Agreement it is not actually aware of any
matter which will entitle it to make a Claim (other than a Tax Claim). For the purposes of
this paragraph the actual awareness of the Buyer shall be construed as a reference to the
actual knowledge of Jeff Wheatley, Carol Cross, Carl Spilker, Mike Marcus and Mike Coury.
	 
	8	 	General limitations
	 
	8.1	 	The Seller will not be liable for any Claim (other than a Tax Claim) and accordingly no Claim
may be brought to the extent that:

	 	(a)	 	the Buyer or any Group Company or any member of the Buyer’s Group has recovered
an amount under the terms of any insurance policy, provided that any taxes and costs
incurred in recovering such amount shall be deducted for the purposes of such
calculation;
	 
	 	(b)	 	the facts, matters or circumstances have been specifically provided for in the
Accounts (and not subsequently released before Completion), the Interim Accounts (and
not subsequently released before Completion) or the Completion Statement;
	 
	 	(c)	 	the Claim arises in connection with, or the amount of the Claim is increased
by:

	 	(i)	 	any voluntary act, omission, transaction or arrangement carried
out by, at the request of or with the approval of the Buyer or any Group
Company or any member of the Buyer’s Group or any of their respective officers,
employees or agents before or at Completion;
	 
	 	(ii)	 	any voluntary act, omission, transaction or arrangement of the
Buyer or any Group Company or any member of the Buyer’s Group or any of their
respective officers, employees, agents or successors in title after Completion
which:

	 	(A)	 	is outside the ordinary course of the relevant
company’s business and which is not pursuant to a legally binding
obligation entered into on or before Completion; and
	 
	 	(B)	 	the Buyer or any Group Company or any member of
the Buyer’s Group or any of their respective officers, employees,
agents or successors in title knew or reasonably ought to have known
would give rise to a Claim;

	 	(iii)	 	any breach by the Buyer of any of its obligations under this
Agreement or any other Transaction Document;
	 
	 	(iv)	 	any:

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	 	(A)	 	passing of or change in any statutory or other
binding or advisory legislative or regulatory provision after the date
of this Agreement; or
	 
	 	(B)	 	publication or withdrawal of any decision of
the Courts or any other relevant regulatory authority after the date of
this Agreement

	 	(v)	 	any change after the date of this Agreement in the principles,
policies or methods used in the preparation of the audited accounts of the
relevant Group Company;
	 
	 	(vi)	 	any change on or after Completion to the accounting reference
date of any Group Company;

	 	(d)	 	the loss or liability to which the Claim relates has been or is made good or
otherwise compensated for at no expense to the Buyer or any member of the Buyer’s
Group.

	8.2	 	A breach of Warranty which is capable of remedy will not entitle the Buyer to compensation
unless and to the extent that such breach has not been remedied by the Seller to the
reasonable satisfaction of the Buyer within 40 Business Days after the date of service of the
notice of the Claim under this schedule.
	 
	9	 	Subsequent recovery from third party
	 
	 	 	The Buyer shall reimburse the Seller forthwith an amount equal to any sum paid by the Seller
in respect of any Claim (other than a Tax Claim) which is subsequently recovered by or paid
to the Buyer or any other member of the Buyer’s Group by any third party in respect of the
matter giving rise to the Claim (less any Expenses incurred in making such recovery).
	 
	10	 	Claims against third party
	 
	10.1	 	Where the Buyer or any Group Company or any member of the Buyer’s Group may be entitled
(whether by reason of insurance, payment, discount, credit, relief or otherwise) to recover
from a third party any sum for any damage or liability which is or could be the subject of a
Claim (other than a Tax Claim) (a Third Party Recovery), the Buyer:

	 	(a)	 	shall notify the Seller of the Third Party Recovery within 10 Business Days of
the Buyer or relevant Group Company or any member of the Buyer’s Group becoming aware
that it may be entitled to make the Third Party Recovery, and in any event prior to
taking any material step to enforce, compromise, settle or waive any right in relation
to that Third Party Recovery;
	 
	 	(b)	 	shall provide the Seller with such information as the Seller may reasonably
require relating to the Third Party Recovery and shall keep the Seller fully informed
of any material development in the conduct of the Third Party Recovery;
	 
	 	(c)	 	shall, and whether before or after the Seller discharges any Claim, if
requested in writing by the Seller (and subject to the Seller paying the Buyer’s
Expenses), promptly:

	 	(i)	 	take, and procure that the relevant Group Company and each
member of the Buyer’s Group take, such action as the Seller may reasonably
request to enforce such Third Party Recovery; and

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	 	(ii)	 	procure that the Seller is placed in a position to take over
the conduct of all negotiations and proceedings arising in connection with the
Third Party Recovery;

	 	(d)	 	shall not (and shall procure that the relevant Group Company and each member of
the Buyer’s Group do not) compromise, settle or waive any right in relation to that
Third Party Recovery without the written consent of the Seller, not to be unreasonably
withheld.

	10.2	 	The Seller shall not be liable for any Claim:

	 	(a)	 	unless, subject to paragraph 10.3 the Buyer has first taken steps, or procured
that the relevant member of the Group has first taken steps (including the commencement
and prosecution of proceedings), to enforce such Third Party Recovery as the Seller may
reasonably require before taking steps (other than notification of the Claim under
paragraph 5.1) to pursue the Claim against the Seller;
	 
	 	(b)	 	if and to the extent that such Claim arises from or is increased by the Buyers
failure to comply with the provision of this paragraph 10.2.

	10.3	 	The Buyer shall not be obliged to transfer conduct of any Third Party Recovery to the Seller
or take any action requested under clause 10.1(c)(i) where such Third Party Recovery:

	 	(a)	 	may, in the Buyer’s opinion (acting in good faith), have a material impact on
the business of the Group as a whole having regard to its commercial interests,
business activities and reputation in the market; or
	 
	 	(b)	 	involves a governmental or regulatory authority,

	 	 	provided that in such cases the Seller shall not be liable to pay the Buyer’s Expenses in
respect of the relevant Third Party Recovery.
	 
	10.4	 	Any Claim will be limited (in addition to the other limitations on the Seller’s liability
referred to in this schedule) to the amount by which the loss or damage suffered by the Buyer
as a result of such breach exceeds the amount (if any) so recovered by way of the Third Party
Recovery.
	 
	10.5	 	If the Third Party Recovery involves a claim or other right of action against the Sellers (as
defined in the Parker Fox Agreement) the Buyer shall pursue such Third Party Recovery at the
same time, so far as is practicable, as pursuing a Claim and nothing in this paragraph 10
shall require the Buyer to pursue that Third Party Recovery before pursuing a Claim.
	 
	11	 	Claims by third party
	 
	11.1	 	In this paragraph 11, Third Party Claim means any Claim, other than a Tax Claim, which arises
as a result of, or in connection with any claim by, or alleged liability to, a third party.
If grounds for any Third Party Claim arise the Buyer:

	 	(a)	 	shall as soon as reasonably practicable following the Buyer or relevant Group
Company becoming aware of the Third Party Claim (and in any event prior to taking any
material step to defend the Third Party Claim or to compromise, settle or waive any
right in relation to the Third Party Claim), notify the Seller of the Third Party
Claim;
	 
	 	(b)	 	shall provide the Seller with such information as the Seller may reasonably
require relating to the Third Party Claim and shall keep the Seller fully informed of
any material development in the conduct of the Third Party Claim;

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	 	(c)	 	shall, subject only to the provisions of paragraph 11.2, if requested in
writing by the Seller (and subject to the Seller paying the Buyer’s Expenses),
promptly:

	 	(i)	 	take, and procure that the relevant Group Company and each
member of the Buyer’s Group take, such action as the Seller may reasonably
request to avoid, dispute, resist, appeal, defend or compromise the Third Party
Claim; and
	 
	 	(ii)	 	procure that the Seller is placed in a position to take over
the conduct of all negotiations and proceedings arising in connection with the
Third Party Claim;

	 	(d)	 	shall not (and shall procure that the relevant Group Company and each member of
the Buyer’s Group do not) compromise, settle or waive any right or admit any liability
in relation to that Third Party Claim without the written consent of the Seller, not to
be unreasonably withheld.

	11.2	 	The Buyer shall not be obliged to transfer conduct of any Third Party Claim to the Seller or
take any action requested under clause 11.1(c)(i) where such Third Party Claim:

	 	(a)	 	may, in the Buyer’s opinion (acting in good faith), have a material impact on
the business of the Group as a whole having regard to its commercial interests,
business activities and reputation in the market; or
	 
	 	(b)	 	involves a governmental or regulatory authority,

	 	 	provided that in such cases the Seller shall not be liable to pay the Buyer’s Expenses in
respect of the relevant Third Party Claim.
	 
	11.3	 	The Seller shall not be liable for any Claim if and to the extent that such Claim arises from
or is increased by the Buyer’s failure to comply with the provision of this paragraph 11.
	 
	12	 	Duty to mitigate
	 
	 	 	Nothing in this Agreement will be deemed to relieve the Buyer from its common law duty to
mitigate its loss.
	 
	13	 	No double recovery
	 
	 	 	Neither the Buyer nor any member of the Buyer’s Group will be entitled to recover damages or
any other amount in respect of any Claim or otherwise obtain reimbursement or restitution
more than once in respect of the same loss or liability and for this purpose any payment by
the Seller under the Tax Covenant will be deemed to satisfy any Warranty Claim in respect of
the same loss or liability.
	 
	14	 	No reliance on statements
	 
	 	 	The Buyer shall not make any claim against the Seller in respect of any warranty,
representation, indemnity, covenant, undertaking or otherwise arising out of or in
connection with the sale of the Sale Shares except where it is expressly contained in this
Agreement or a Transaction Document. The Buyer confirms that it has not relied upon or been
induced to enter into this Agreement by any warranty, representation, indemnity, covenant or
undertaking given by any person which is not expressly contained in this Agreement or a
Transaction Document.

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	15	 	Remedies and rescission
	 
	15.1	 	The provisions of this schedule will remain in full force and be fully applicable to all
circumstances and, in particular, will not be discharged by any breach of this Agreement.
	 
	15.2	 	The Buyer will not be entitled to rescind this Agreement in any circumstances whatsoever
whether before or after Completion.
	 
	15.3	 	The Buyer will not be entitled to terminate this Agreement in any circumstances whatsoever
following Completion.
	 
	15.4	 	Notwithstanding any other provision, nothing in this schedule limits the rights of the Buyer
in respect of fraud, fraudulent misrepresentation or under the Unfair Contract Terms Act 1977.
	 
	16	 	Application to third parties
	 
	 	 	Any third party which is entitled under the terms of this Agreement to claim against the
Seller will be subject to the provisions of this schedule as if it were the Buyer.

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Schedule 5.

Buyer’s Warranties

	1	 	The Buyer is a company duly incorporated and validly existing under the laws of England and
Wales and has the requisite power and authority to enter into and perform, and has taken all
necessary corporate action to authorise the execution and performance of, its obligations
under this Agreement and any other Transaction Document to which it is a party.
	 
	2	 	This Agreement constitutes, and the other Transaction Documents executed or to be executed by
the Buyer will, when executed, constitute valid and binding obligations of the Buyer
enforceable in accordance with their respective terms.
	 
	3	 	The execution, delivery and performance by the Buyer of this Agreement and each Transaction
Document will not:

	 	(a)	 	breach any provision of the constitutional documents of the Buyer;
	 
	 	(b)	 	breach or constitute a default under any agreement or arrangement to which it
is a party or by which it is bound;
	 
	 	(c)	 	breach any applicable laws or regulations, or any orders, judgements or decrees
of any court, governmental agency or regulatory body Authority.

	4	 	Save for the clearance referred to in clause 4.1(a), the Buyer has obtained all consents,
approvals and authorisations necessary from all relevant Authorities to execute and perform
its obligations under this Agreement and all the other Transaction Documents.
	 
	5	 	In relation to the Buyer:

	 	(a)	 	no order has been made and no resolution has been proposed or passed for the
winding up of or for a provisional liquidator to be appointed in respect of any of them
and no petition has been presented for the purpose of winding up any of them;
	 
	 	(b)	 	no administration order has been made in respect of any of them and no petition
or other application to the court for such an order has been presented or made and no
administrator has been appointed (or notice of intention so to appoint filed in court)
in respect of any of them;
	 
	 	(c)	 	no receiver (which expression shall include an administrative receiver) has
been appointed in respect of any of them or in respect of all or any material part of
their respective assets;
	 
	 	(d)	 	no voluntary arrangement has been proposed under section 1 of the Insolvency
Act 1986 in respect of any of them;
	 
	 	(e)	 	no distress, execution or other process has been levied or threatened in
respect of any of their respective assets;
	 
	 	(f)	 	No event analogous to any of the circumstances mentioned in any of the foregoing
sub-paragraphs of this paragraph 15 has occurred in relation to the Buyer outside
England

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Schedule 8

Taxation

Part 1 — General

	1	 	Interpretation
	 
	1.1	 	In this schedule (unless the context otherwise requires):
	 
	 	 	Accounts Relief means any Relief which is shown as an asset in the Completion Statement or
is taken into account in computing (and so reducing or eliminating) any provision for
deferred Taxation which appears, or which but for the presumed availability of the Relief
would have appeared, in the Completion Statement
	 
	 	 	Actual Taxation Liability means a liability to make an actual payment of Taxation whether or
not such Taxation is also or alternatively chargeable against or attributable to any other
person
	 
	 	 	Auditors means the auditors for the time being of the Company
	 
	 	 	Buyer’s Group means the Buyer and any company which is or within the six years prior to the
date of Completion has been or after Completion becomes, a member of the same group of
companies as, or is associated or connected with, the Buyer in each case for any Tax purpose
	 
	 	 	Claim means any assessment, notice, demand or other document issued or action taken by or on
behalf of any Taxation Authority or any form of return, computation or self-assessment
required by law from which it appears that the Company is subject to or is sought to be made
subject to, or will or might become subject to, any Taxation Liability or that a breach of
any Tax Warranty has occurred
	 
	 	 	CTA means the Corporation Tax Act 2009
	 
	 	 	CTA 2010 means the Corporation Tax Act 2010
	 
	 	 	Deemed Taxation Liability means:

	 	(a)	 	the setting off of a Post-Completion Relief against an Actual Taxation
Liability of the Company in respect of which the Seller would have been liable under
the Tax Covenant or (as the case may be) against income, profits or gains which would
have given rise to such an Actual Taxation Liability (a Set Off Liability), in which
event the amount of the Set Off Liability is in the former case the amount of the
Actual Taxation Liability eliminated by such setting off and in the latter case the
amount of the Actual Taxation Liability of the Company which would have arisen but for
such setting off;
	 
	 	(b)	 	the unavailability of an Accounts Relief in consequence of an Event occurring
on or before Completion in which event the amount of the Deemed Taxation Liability is:

	 	(i)	 	where the Accounts Relief unavailable is a deduction from or
set-off against either Taxation or income, profits or gains (an Unavailable
Relief Liability), the amount of the earliest Actual Taxation Liability of the
Company to arise

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	 	 	 	which would not have arisen or could have been avoided but for such
unavailability; and

	 	(ii)	 	where the Accounts Relief unavailable is a right to a repayment
of Taxation (an Unavailable Repayment Liability), the amount of Taxation which
would have been repaid but for such unavailability

	 	 	Event means any event, occurrence, transaction, including the execution of the Agreement and
Completion), omission or act whatsoever whether alone or in conjunction with any other
event, transaction, omission or act whatsoever, including further (without limitation),
becoming, being or ceasing to be a member of a group of companies (however defined) for the
purposes of any Tax
	 
	 	 	FA means the Finance Act
	 
	 	 	Group Relief has the meaning given to that expression by section 402 ICTA and Part 5 CTA
2010
	 
	 	 	ICTA means the Income and Corporation Taxes Act 1988
	 
	 	 	IHTA means the Inheritance Tax Act 1984
	 
	 	 	Independent Expert means a member of the Chartered Institute of Taxation or the Institute of
Chartered Accountants in England and Wales independent of the parties who has had a
specialised Taxation practice for at least ten years and who shall be appointed by agreement
between the relevant parties or (failing such agreement and upon the first application made
by any such party) by the President of the Chartered Institute of Taxation or the Institute
of Chartered Accountants in England and Wales
	 
	 	 	ITA means the Income Tax Act 2007
	 
	 	 	Post-Completion Relief means any Relief which arises solely in consequence of or by
reference to an Event occurring or deemed to occur after Completion and not in consequence
of or by reference to any Event occurring or deemed to occur on or before Completion (but
shall not include any Windfall Relief)
	 
	 	 	Refund means a tax refund relating to an accounting period within the meaning of section 102
FA 1989 or section 963 of the CTA 2010
	 
	 	 	Relief means any loss, allowance, exemption, set-off, deduction, credit or other relief from
any Taxation or in the computation of income, profits or gains for the purpose of any
Taxation and any right to a repayment of Taxation
	 
	 	 	Seller Relief means any Relief which is or becomes available to the Company, other than an
Accounts Relief or a Post-Completion Relief
	 
	 	 	Taxation means:

	 	(a)	 	any form of tax, and any levy, duty, impost, deduction, or withholding in the
nature of tax whether governmental, statutory, state, provincial, local governmental or
municipal whenever created or imposed and whether of the United Kingdom, part of the
United Kingdom or elsewhere but not including uniform business rates, water rates,
community charge, council tax or any tax, charge, rate or duty similar to,
corresponding with, replacing or replaced by any of them; and

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	 	(b)	 	all charges, surcharges, interest, penalties and fines relating to any Taxation
falling within paragraph (a) of this definition

	 	 	Taxation Authority means any authority or person, whether of the United Kingdom, part of
the United Kingdom or elsewhere, competent to impose, assess or collect any Taxation
	 
	 	 	Tax Covenant means paragraph 11 of part 2
	 
	 	 	Taxation Liability means any Actual Taxation Liability, any Deemed Taxation Liability and
any costs, fees and expenses falling within paragraph 11.1(g)
	 
	 	 	Tax Warranties means the warranties set out in part 3
	 
	 	 	TIOPA means the Taxation (International and Other Provisions) Act 2010
	 
	 	 	TCGA means the Taxation of Chargeable Gains Act 1992
	 
	 	 	unavailability means, in relation to a Relief, the reduction, modification, claw-back,
counteraction, disallowance or cancellation of or failure to obtain that amount of that
Relief but does not include the set-off of any Relief against Taxation or any income,
profits or gains and unavailable shall be construed accordingly
	 
	 	 	VATA means the Value Added Tax Act 1994
	 
	 	 	Windfall Relief means any Relief falling within paragraph 4.2
	 
	1.2	 	In this schedule (unless the context otherwise requires):

	 	(a)	 	references to Company, whether express or implied, shall be read and construed
as references to each of Purpose UK Holdings Ltd (incorporated in England and Wales
under number 6045943) and each member of the Group excluding Parker Fox individually as
if the provisions of this schedule were set out in full in respect of each such
company;
	 
	 	(b)	 	references to persons include an individual, corporation, partnership,
unincorporated association, or body of persons and any state or any agency thereof;
	 
	 	(c)	 	references to parts are references to parts of this schedule.

	1.3	 	Any payments made pursuant to this schedule or for breach of any Warranty shall, so far as
possible, be treated as an adjustment to the consideration paid by the Buyer for the Shares
under this Agreement.
	 
	2	 	Exclusions and Limitations
	 
	2.1	 	The Seller shall not be liable for breach of any Tax Warranty in respect of any Taxation
Liability (or where the loss, liability or damage arising in consequence of a breach of any
Tax Warranty is any Taxation Liability) or under the Tax Covenant in respect of any Taxation
Liability to the extent that:

	 	(a)	 	provision or reserve for it is made in the Completion Statement or payment or
discharge of it is taken into account therein; or
	 
	 	(b)	 	it arises in consequence of, or would have been reduced or eliminated but for:

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	 	(i)	 	any voluntary act or omission of any member of the Buyer’s
Group after Completion otherwise than in the ordinary course of the business of
such company as carried on at Completion and otherwise than pursuant to a
legally binding obligation of the Company in existence at Completion and which
the Buyer’s Group was aware or ought reasonably to have been aware would give
rise to the Taxation Liability; or
	 
	 	(ii)	 	the Company ceasing to carry on any trade or business after
Completion or effecting a major change after Completion in the nature or
conduct of any trade or businesses carried on by it; or
	 
	 	(iii)	 	the Company changing the date to which it makes up its
accounts or changing any of its accounting policies, bases, practices or
principles (including, without limitation, the treatment of timing differences
and the bases on which the Company values its assets) in either case after
Completion but excluding any change required to comply with any law or
generally accepted accounting practices or principles of the jurisdiction in
which the Company is resident for any Tax purpose; or
	 
	 	(iv)	 	the failure by or omission of the Company after Completion to
make any claim, election, surrender or disclaimer or to give any notice or
consent or to do any other thing, the making, giving or doing of which was
permitted by law and which is taken in account:

	 	(A)	 	in computing and so reducing any provision
which appears in the Completion Statement (or eliminating any provision
which would otherwise have appeared in the Completion Statement); or
	 
	 	(B)	 	in computing any right to repayment of Taxation
which appears in the Completion Statement;

	 	 	 	(a Required Claim) provided that the Seller has notified the Buyer in writing of
the action required prior to the end of the relevant time limit to make the claim;
or

	 	(v)	 	the withdrawal or amendment by the Company after Completion of
any Required Claim (as defined in (iv) above) made by the Company prior to
Completion provided that the Seller has notified the Buyer in writing of the
action required prior to the end of the relevant time limit to make the claim;
or
	 
	 	(vi)	 	any claim, election, surrender, disclaimer, notice or consent
made by the Company after Completion, the making or doing of which was not
taken into account:

	 	(A)	 	in computing and so reducing any provision
which appears in the Completion Statement (or eliminating any provision
which, would otherwise have appeared in the Completion Statement); or
	 
	 	(B)	 	in computing any right to repayment of Taxation
which appears in the Completion Statement; or
	 
	 	(C)	 	which is made at the prior request of the
Seller pursuant to its rights under this agreement; or

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	 	(vii)	 	any failure by the Buyer or the Company to comply with its
obligations under paragraphs 6 and 8 but only to the extent such failure gives
rises to a liability to any fine, penalty, interest and/or surcharge; or
	 
	 	(viii)	 	any new, or a change in, any legislation, secondary legislation, regulation,
directive or order or any change in the rate of any Taxation or any imposition
of Taxation or change in the published practice of, or published concession
operated by, any Taxation Authority or change in interpretation of law (whether
or not as a result of any case law) in each case coming into effect after
Completion; or

	 	(c)	 	such Taxation Liability is a liability to interest on instalment payments paid
on or before Completion under paragraph 7 of the Corporation Tax (Instalment Payments)
Regulations 1998 which interest is only payable by reason of any instalment payments
made before Completion proving to be insufficient as a result of profits earned by the
Company after Completion proving to be greater than was reasonably estimated by the
Company at the time such instalment was made; or
	 
	 	(d)	 	it is a liability to any interest, penalty, fine or surcharge which arises as a
result of or by reference to any delay or default on the part of any member of the
Buyer’s Group after Completion; or
	 
	 	(e)	 	the Buyer has recovered damages or any other amount under this Agreement
(whether for breach of Warranty, under this schedule or otherwise) in respect of the
same loss, liability, damage or Event or the Buyer or the Company have otherwise
obtained reimbursement or restitution from the Seller or a member of the Seller’s
Group.

	3	 	Mitigation of liability
	 
	 	 	The Seller may, in particular but without limitation, by notice in writing to the Buyer
avoid or reduce any liability which the Seller would, apart from this paragraph 3, have
under the Tax Covenant or for breach of any Tax Warranty by surrendering or procuring the
surrender to the Company of Group Relief, a Refund or any other Relief (without the Buyer or
the Company being liable to make any payment in consideration for such surrender) and the
liability of the Seller under the Tax Covenant or for breach of any Tax Warranty shall be
satisfied or avoided to the extent of the amount of Taxation which could be satisfied or
avoided as a result of such surrender. The Buyer shall procure that the Company takes all
such reasonable steps, including (without limitation) making and giving all such claims and
consents as may be necessary to effect any such surrender.
	 
	4	 	Over-provisions and Windfall Reliefs
	 
	4.1	 	The Buyer shall at the request and expense of the Seller, such request to be made on or
before the seventh anniversary of Completion, request the Auditors to determine (as experts
and not as arbitrators and at the expense of the Seller) whether:

	 	(a)	 	any provision for Taxation (other than a provision for deferred taxation) or
for payment for Group Relief or the surrender of a Refund in the Completion Statement
has proved to be an over-provision and if so its amount;
	 
	 	(b)	 	any right to a repayment of Taxation treated as an asset in the Completion
Statement has proved to be understated and if so its amount or, where no right to
repayment of Taxation was treated as an asset in the Completion Statement, whether any
such

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	 	 	 	amount should have been treated as an asset in the Completion Statement and if so
the amount; or

	 	(c)	 	any Actual Taxation Liability which arises or would otherwise have arisen
(other than one which would otherwise have given rise to a corresponding liability of
the Seller under the Tax Covenant) is avoided or reduced or any repayment of an amount
of Taxation is obtained in either case by the use of a Seller Relief, and, if so, the
amount of Taxation so saved or the amount of that repayment; and

	 	 	if the Auditors determine that there has proved to be any such over-provision,
understatement or amount, the amount of such over-provision, understatement or amount (as
the case may be) shall be dealt with in accordance with paragraph 4.3.
	 
	4.2	 	The Buyer shall at the request and expense of the Seller request the Auditors to determine
(as experts and not as arbitrators and at the expense of the Seller) whether any Taxation
Liability (or the Event giving rise to such Taxation Liability or the discharge of it) which
has resulted in any sum having been paid or becoming payable by the Seller under the Tax
Covenant or for breach of any Tax Warranty has given rise to a Relief (or would give rise to a
Relief assuming that all reasonable steps are taken to obtain such Relief) which would not
otherwise have arisen, and:

	 	(a)	 	a liability of the Company to make an actual payment or increased payment of
Taxation has been or could have been satisfied or avoided in whole or in part by the
use of that Relief; or
	 
	 	(b)	 	a right to a repayment of Taxation has or could have arisen as a result of the
use of that Relief; and

	 	 	if the Auditors so determine, the amount by which that liability has or could have been
satisfied or avoided or an amount equal to the amount of that repayment (as the case may be)
shall be dealt with in accordance with paragraph 4.3.
	 
	4.3	 	Where it is provided under paragraph 4.1 or 4.2 that any amount is to be dealt with in
accordance with this paragraph 4.3:

	 	(a)	 	the amount shall first be set off against any payment then due from the Seller
under the Tax Covenant or for breach of any Tax Warranty;
	 
	 	(b)	 	to the extent there is an excess, a refund shall be made to the Seller, within
10 Business Days of the Auditors determination referred to in paragraph 4.1 or 4.2 (as
appropriate), of any previous payment made by the Seller under the Tax Covenant or for
breach of any Tax Warranty and not previously refunded under this paragraph up to the
amount of such excess; and
	 
	 	(c)	 	to the extent that the excess referred to in paragraph 4.3(b) is not exhausted
thereunder, the remainder of that excess shall be carried forward and set off against
any future payment which becomes due from the Seller under the Tax Covenant or for
breach of any Tax Warranty;

	4.4	 	Where such determination by the Auditors as is mentioned in paragraph 4.1 or 4.2 has been
made, the Seller or the Buyer may request the Auditors to review such determination (at the
expense of the person making the request) in the light of all relevant circumstances,
including any facts which have become known only since such determination, and to determine

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	 	 	whether such determination remains correct or whether, in the light of those circumstances,
the amount that was the subject of such determination should be amended.

	4.5	 	If the Auditors determine under paragraph 4.4 that an amount previously determined should be
amended, that amended amount shall be substituted for the purposes of paragraph 4.1 or 4.2, as
the case may be, in place of the amount originally determined and such adjusting payment (if
any) as may be required by virtue of such substitution shall forthwith be made by the Seller
to the Buyer or, as the case may be, by the Buyer to the Seller.
	 
	5	 	Recovery from third parties
	 
	5.1	 	If the Seller has made, or is liable to make, a payment to the Buyer under the Tax Covenant
or for breach of any Tax Warranty and any member of the Buyer’s Group is before the seventh
anniversary of Completion entitled to recover from any third party (including any Taxation
Authority) a payment which would not have been made but for such Actual Taxation Liability,
the Buyer shall and shall procure that the relevant member of the Buyer’s Group shall inform
the Seller of this entitlement and use all reasonable endeavours to effect such recovery.
	 
	5.2	 	The Buyer covenants with the Seller to pay to the Seller a sum equal to the lesser of:

	 	(a)	 	the amount of any payment so received, after deduction therefrom of an amount
equal to any costs, fees and expenses incurred in obtaining it and any Taxation
Liability incurred in respect of it; and
	 
	 	(b)	 	the amount paid by the Seller under the Tax Covenant or in respect of the Tax
Warranties in respect of the Taxation Liability in question.

	6	 	Appeals and conduct of claims
	 
	6.1	 	If the Buyer or the Company (or any of their officers, employees or agents) becomes aware of
a Claim which could give rise to a liability of the Seller under the Tax Covenant or in
respect of the Tax Warranties, the Buyer shall or shall procure that the Company shall as soon
as reasonably practicable give written notice of the Claim to the Seller and, in any event,
where a statutory or other time limit is applicable for responding to or appealing against the
Claim or to any assessment, notice, demand or other document issued (or deemed to be issued)
or action taken which constitutes the Claim, the Buyer shall, where reasonably practicable,
give written notice of the Claim to the Seller at least 21 days prior to the expiry of such
time limit. Such written notice shall, where reasonably practicable, include an estimate of
the liability of the Seller under the Tax Covenant or in respect of the Tax Warranties in
respect of such Claim, the basis of calculation of that estimate and such details of the Claim
as are then available to the Buyer or the Company.
	 
	6.2	 	The Buyer shall, and shall procure that the Company shall, take such action to appeal,
compromise, protest against, mitigate, reduce, avoid, dispute, resist or compromise the Claim
and make available such documents, information and assistance in connection with the Claim as
the Seller may by written notice reasonably request provided the Seller shall indemnify the
Buyer and the Company against all reasonable costs and expenses which the Buyer or the Company
properly incurs as a result of taking such action or providing such information and
assistance.
	 
	6.3	 	The Seller may, at the Seller’s expense, elect to have any action referred to in paragraph
6.2 conducted by professional advisers acting in the name of the Company but reporting to the
Seller in which event the provisions of paragraph 6.4 shall apply.

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	6.4	 	The Seller hereby undertakes to the Buyer to:

	 	(a)	 	keep the Buyer informed of all matters relating to the action and deliver to
the Buyer copies of all material correspondence relating to the action;
	 
	 	(b)	 	obtain the prior written approval of the Buyer (not to be unreasonably withheld
or delayed) to the content and sending of written communications relating to the action
to a Taxation Authority; and
	 
	 	(c)	 	obtain the prior written approval of the Buyer (not to be unreasonably withheld
or delayed) to:

	 	(i)	 	the settlement or compromise of the Claim which is the subject
of the action; and
	 
	 	(ii)	 	the agreement of any matter in the conduct of the action which
is likely to affect the amount of the Claim.

	6.5	 	The Buyer shall not be obliged to procure that the Company take any action under this
paragraph 6 (including paragraph 6.3) which involves contesting any matter beyond the first
appellate body (excluding the Taxation Authority which has or shall have made the Claim in
question, the statutory pre-tribunal review, the Tax Chamber of the First-tier Tribunal and
the Finance and Tax Chamber of the Upper Tribunal) unless the Seller furnishes the Buyer with
the written opinion of Counsel of at least five years call who is experienced in the subject
matter of the Claim to the effect that an appeal in respect of the matter in question has a
reasonable prospect of being won.
	 
	6.6	 	If at any time the Seller has not exercised the election referred to in paragraph 6.3 but
requests that the Buyer take, or procure that the Company take, any action referred to in
paragraph 6.2, the provisions of paragraph 6.4 shall apply as if references to “Seller” are
references to “Buyer” and reference to “Buyer” are references to “Seller”.
	 
	7	 	Disputes
	 
	7.1	 	In the event of any dispute under paragraph 3, 4, 5, 6 or 8 of this schedule, such dispute
shall at the election of either/any party be determined by the Independent Expert (acting as
expert and not as arbitrator) and in the absence of manifest error his determination shall be
conclusive and binding on the parties. The proper charges and disbursements of the Independent
Expert shall be paid and borne on each occasion by the parties concerned in such proportions
as the Independent Expert may in his absolute discretion consider fair and reasonable.
	 
	7.2	 	If either party is dissatisfied with any determination of the Auditors, the matter shall be
referred to the Independent Expert for determination in accordance with the provisions of
paragraph 7.1.
	 
	8	 	Taxation Computations
	 
	8.1	 	Subject to complying with the provisions of paragraph 8.2 below, the Seller or its duly
authorised agents shall, at the cost and expense of the Company:

	 	(a)	 	prepare and submit the corporation tax returns of the Company for all
accounting periods of the Company ended on or prior to Completion, to the extent the
same shall not have been prepared and/or submitted before the date hereof;

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	 	(b)	 	prepare and submit all claims, elections, notices, disclaimers, consents and/or
surrenders assumed in preparing the returns referred to in (a); and
	 
	 	(c)	 	deal with all matters (including correspondence and negotiations) relating to
the returns of the Company referred to in (a).

	8.2	 	The Seller covenants with the Buyer:

	 	(a)	 	to keep the Buyer and its duly authorised agents fully informed of all matters
relating to the submission, negotiation and agreement of the returns referred to in
paragraph 8.1(a); and
	 
	 	(b)	 	that no written communications (including e-mails) shall be transmitted to any
Taxation Authority without first being submitted to the Buyer and/or its duly
authorised agents as soon as reasonably practicable for their comments, authorisation
and written approval and shall only finally be submitted or transmitted to the relevant
Tax Authority on the receipt of the written approval of the Buyer (such approval not to
be unreasonably withheld or unreasonably delayed).

	8.3	 	The Buyer shall be obliged to procure that the Company makes or gives any returns, claims,
elections, surrenders and consents in relation to Taxation, to the extent it was assumed they
would be made or given in computing any provision which appears in the Completion Statement
(or in eliminating any provision which would have so appeared) provided that the Seller has
notified the Buyer in writing of the action required as soon as practicable and, in any event,
prior to the end of the time limit to make the claim.
	 
	8.4	 	The Buyer shall be under no obligation to procure the signing and/or authorisation of any
document delivered to it under paragraph 8.2(b) which it reasonably considers, to be false,
misleading, incomplete or inaccurate in any respect having made reasonable enquiries as to the
completeness, validity, and/or accuracy thereof.
	 
	8.5	 	The Buyer shall provide and shall procure that the Company provides with all such documents
and information (including, without limitation, access to books, accounts and records as well
as copies of any written communications from any Tax Authority) as the Seller may reasonably
require in connection with its rights pursuant to this paragraph 8.
	 
	8.6	 	In respect of the accounting period of the Company commencing prior to Completion and ending
after Completion (Straddle Period) the Buyer shall procure that the corporation tax returns of
the company shall be prepared on the basis which is consistent with the manner in which
corporation tax returns of the Company are or have been prepared for all accounting periods
ended prior to Completion.
	 
	8.7	 	The Buyer shall procure that the Company keeps the Seller fully informed of the Taxation
affairs of the Company in respect of the Straddle Period and shall provide the Seller with
copies of all relevant documents and shall not submit any correspondence or submit or agree
any return or computation for such period, to any Taxation Authority without giving the Seller
a reasonable opportunity to make representations thereon and without the written consent of
the Seller (such consent not to be unreasonably withheld or delayed).
	 
	8.8	 	The Seller or its duly appointed agents, as appropriate, shall provide and shall procure
that, at the Buyer’s expense, the Company provides with all such documents and information
(including, without limitation, access to books, accounts and records as well as copies of any
written communications from any Tax Authority) as the Buyer may reasonably require in
connection with its rights pursuant to this paragraph 8.

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	9	 	Miscellaneous
	 
	9.1	 	In assessing any damages payable by the Seller for breach of any Taxation Warranty, the value
of the Company shall not be taken as exceeding the Consideration.
	 
	9.2	 	If any potential claim under the Tax Covenant or for breach of any Tax Warranty arises in
consequence of a liability of the Company which is contingent only, the Seller shall not be
liable in respect of the claim until such time as the contingent liability ceases to be
contingent and becomes an actual liability.
	 
	10	 	Buyer’s Covenant
	 
	10.1	 	The Buyer covenants with the Seller to pay to the Seller by way of additional payment of
purchase price for the Sale Shares an amount equal to any Actual Taxation Liability of the
Seller or of any company which is under the control of the Seller at any time after Completion
(and any costs and expenses incurred by the Seller or the company in relation to such Actual
Taxation Liability or in making any claim under this paragraph 10.1), where such Actual
Taxation Liability arises as a result of the failure by the Company to discharge after
Completion an Actual Taxation Liability for which the Company is primarily liable and which is
not within the Tax Covenant.
	 
	10.2	 	If the Buyer becomes liable to make a payment under paragraph 10.1, the Buyer shall pay such
amount in cleared immediately available funds on or before the later of the date 5 Business
Days before that Actual Taxation Liability is finally due and payable and the date 5 Business
Days after the date of written demand on the Buyer by the Seller.
	 
	10.3	 	The provisions of paragraphs 4.1 to 4.3 of Part 2 of this Schedule shall apply to payments
under this paragraph 10 as it applies to payments under the Tax Covenant as if references
therein to the “Buyer” are references to the “Seller” and references to the “Seller” are
references to the “Buyer”.

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Part 2 — Taxation Covenant

	1	 	Covenant by the Seller
	 
	1.1	 	Subject to the provisions of part 1 and of schedule 4, the Seller hereby covenants with the
Buyer to pay to the Buyer an amount equal to:

	 	(a)	 	any Actual Taxation Liability of the Company arising as a result of;

	 	(i)	 	an Event occurring on or before Completion; or
	 
	 	(ii)	 	or by reference to any income, profits or gains earned, accrued
or received on or before or in respect of any period ended on or before the
date of Completion; or
	 
	 	(iii)	 	the waiver, discharge or elimination after Completion of any
indebtedness pursuant to clause 8.3 of this agreement;

	 	(b)	 	any Deemed Taxation Liability;
	 
	 	(c)	 	any payment of Taxation for which a Company is liable that would not have
arisen but for any person (other than the Buyer or a company falling within the
definition of Company) failing to pay any amount of Taxation;
	 
	 	(d)	 	(without limitation to the generality of Clause 1.1(a) any Taxation Liability
of the Company arising on or before Completion in connection with any inter-Company
loans, including, without limitation, any Taxation Liability arising as a result of (i)
any potential withholding tax liabilities, or (ii) any adjustments under Part 4 of
TIOPA in respect of those loans;
	 
	 	(e)	 	(without limitation to the generality of Clause 1.1(a) any Tax Liability
arising as a result of (i) the MEM Holdings Shares being considered to be “readily
convertible assets” as defined for the purposes of Part 11 Chapter 4 ITEPA 2003 and
(ii) the sale of the Sale Shares to CCRT International Holdings B.V.;
	 
	 	(f)	 	any increased United States Taxation payable by any member of the Buyer’s Group
as a result of the representation at paragraph 2.1 being incorrect; or
	 
	 	(g)	 	any reasonable third party costs, fees and expenses reasonably incurred by the
Buyer or the Company as a result of any Taxation Liability within paragraphs 1.1(a) to
1.1(f) above or with any Claim in respect thereof or in taking or defending any action
under this schedule.

	2	 	United States Tax
	 
	2.1	 	The Seller represents that it and each Company and Parker Fox has elected or will elect to be
treated as a disregarded entity, or partnership pursuant to Treas. Reg. 301-7701-2, or
301.7701-3 as appropriate, and such election will be in force at the Completion Date. The
Buyer and Seller acknowledge and agree that the sale of the Company as contemplated herein by
the Seller shall be treated, for United States federal income tax purposes, as the sale by the
Seller’s Guarantor and the purchase by the Buyer of all of the assets of each Company and
Parker Fox.

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	2.2	 	The Buyer, the Seller and the Seller’s Guarantor agree that they shall not take any
inconsistent position with respect to the characterisation set out in paragraph 2.1 above for
United States federal income tax purposes.
	 
	2.3	 	The Buyer, the Seller and the Seller’s Guarantor shall mutually agree on an allocation of the
Purchase Price and any liabilities assumed for US federal tax purposes among the assets of
each Company and Parker Fox in accordance with Section 1060 of the Internal Revenue Code of
1986, as amended. If the Buyer, the Seller and the Seller’s Guarantor cannot agree on such an
allocation within 30 days after the Completion Date, the Buyer shall have the right to propose
an allocation schedule (the Proposed Allocation Schedule) and the Seller and the Seller’s
Guarantor shall be deemed to accept the Proposed Allocation Schedule unless they reject it in
writing within 30 days of the proposal of the Proposed Allocation Schedule by the Buyer. If
there is an objection to the Proposed Allocation Schedule, the matter shall be resolved in
accordance with procedures substantially similar to the dispute settlement procedures set out
in Section 3.6 to 3.11 of Schedule 11 (“Completion Statements”). The allocation, as agreed to
by the Buyer, the Seller and the Seller’s Guarantor, or as resolved in accordance with the
preceding sentence, shall be binding on the Buyer. the Seller and the Seller’s Guarantor, and
the Buyer, the Seller, and the Seller’s Guarantor agree that they shall not take any
inconsistent position with respect to such allocation for accounting or United States federal
income tax purposes.
	 
	3	 	Payment
	 
	3.1	 	If the Seller is or becomes liable to make a payment under the Tax Covenant in respect of:

	 	(a)	 	an Actual Taxation Liability, the Seller shall pay such amount on or before the
date 5 Business Days after the date of written notice from the Buyer to the Seller of
the amount which the Seller is required to pay and requesting payment or, if later, the
date 5 Business Days before the date on which the Actual Taxation Liability in question
is due for payment;
	 
	 	(b)	 	a Deemed Taxation Liability, the Seller shall pay such amount by the later of 5
Business Days after the date of written notice from the Buyer to the Seller of the
amount which the Seller is required to pay and requesting payment, and:

	 	(i)	 	in the case of a Set Off Liability, the date on which the
Actual Taxation Liability referred to in the definition of that term would
otherwise have become due for payment;
	 
	 	(ii)	 	in the case of an Unavailable Relief Liability, 5 Business Days
before the date on which the Actual Taxation Liability referred to in the
definition of that term is actually due for payment; or
	 
	 	(iii)	 	in the case of an Unavailable Repayment Liability, the date on
which the repayment of Taxation would have been made but for that
unavailability; or

	 	(c)	 	any amount within paragraph 1.1(g) the Buyer will notify the Seller in writing
of such amount specifying details of the services for which those costs, fees and
expenses were incurred and the circumstances in which they were obtained and the Seller
shall pay such amount on or before the date 5 Business Days after the date of such
notice.

	3.2	 	Sums not paid by the Seller on the dates specified in paragraph 3.1 shall bear interest
(which shall accrue from day to day after, as well as before, judgment at the base rate from
time to

99

 

	 	 	time of Barclays Bank plc) from the date following
the specified date up to and including the day of
actual payment of such sums.
	 
	4	 	Tax on payments by Seller
	 
	4.1	 	All sums payable by the Seller to the Buyer under this schedule shall be paid free and clear
of all deductions or withholdings except as may be required by law.
	 
	4.2	 	If the Seller is required by law to make a deduction or withholding, the Seller covenants to
pay to the Buyer such further sum as will ensure that the Buyer receives and retains a net
amount (after taking into account such Taxation) equal to the full amount which it would have
received and retained had the payment in question not been subject to Taxation.
	 
	4.3	 	If any amount paid or due to the Buyer under this schedule or in respect of the Tax
Warranties results in a Taxation Liability of the Buyer (ignoring the availability of any
Relief), the Seller covenants with the Buyer to pay the Buyer such further sum as will ensure
that the net amount received and retained by the Buyer after such Actual Taxation Liability is
taken into account shall equal the full amount which would have been received and retained by
the Buyer in the absence of such Taxation Liability.

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Part 3 — Taxation Warranties

	1	 	Post Accounts Date
	 
	 	 	Since the Accounts Date:

	 	(a)	 	no accounting period has ended for the purposes of any Taxation;;
	 
	 	(b)	 	the Company has not paid any Taxation after its due date for payment and is not
liable for any Taxation the due date for payment of which has passed;
	 
	 	(c)	 	the Company has not declared or paid any dividend or made any other
distribution for the purposes of any Taxation.

	2	 	Compliance
	 
	2.1	 	The Company has duly paid all material amounts of Tax which it has become liable to pay, on
or before the due date for payment.
	 
	2.2	 	All notices, computations and returns which ought to have been submitted to a Taxation
Authority by the Company have been properly and duly so submitted and all information,
notices, computations and returns submitted to a Taxation Authority are true, accurate and
complete in all material respects and are not the subject of any material dispute nor, so far
as the Seller is aware, are likely to become the subject of any material dispute with a
Taxation Authority.
	 
	2.3	 	All material records which the Company is required to keep for Taxation purposes have been
duly kept and are available for inspection at the premises of the Company.
	 
	2.4	 	The Company has not, within the last three years, asked for any extensions of time for the
filing of any currently outstanding tax returns or other documents relating to Taxation.
	 
	2.5	 	All claims or other requests for any particular treatment relating to Taxation that have been
taken into account in computing any amount in the Accounts or the Completion Statement and the
time limit for the making of which has passed have been duly made.
	 
	2.6	 	There is no dispute between the Company and any Taxation Authority, the Company is not the
subject of an investigation, audit or review by any Taxation Authority and as far as the
Seller is aware there are no facts which are likely to give rise to any such dispute,
investigation, audit or review.
	 
	2.7	 	The Company is not and has not at any time within the 3 years prior to the date hereof been
liable to pay any penalty, fine, surcharge, interest or similar amount in relation to Taxation
in excess of £10,000 and as far as the Seller is aware there are no facts which are likely to
cause it to become liable to pay any such penalty, fine, surcharge, interest or similar
amount.
	 
	2.8	 	Within the last 3 years, the Company has duly and punctually complied with all its
obligations to deduct Taxation from payments made by it and to account for such Taxation to
any Taxation Authority.
	 
	3	 	Close companies
	 
	 	 	The Company is not and has never been a close company within the terms of section 414 and
415 ICTA or sections 439 or 446 of the CTA 2010.

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	4	 	Distributions and payments
	 
	4.1	 	No distribution (for the purposes of any Taxation) has been made by the Company during the
six years ended on the Accounts Date (except as provided in the Accounts).
	 
	4.2	 	The Company has not made or received or been involved in any distribution pursuant to a
demerger or reconstruction.
	 
	4.3	 	The Company has not at any time received a capital distribution in cash or in specie.
	 
	4.4	 	The Company has not on or after 6 April 1965:

	 	(a)	 	repaid, redeemed or purchased or agreed to repay, redeem or purchase any of its
share capital; or
	 
	 	(b)	 	capitalised or agreed to capitalise in the form of shares or debentures, any
profits or reserves of any class or description, or otherwise issued or agreed to issue
share capital otherwise than for new consideration (as defined in section 254 ICTA).

	5	 	Employee benefits
	 
	5.1	 	The Disclosure Letter contains full details of all dispensations granted to the Company by
any Tax Authority under any relevant legislation, statute, regulation, statutory instrument or
other published practice or law with judicial effect relating to payments and benefits made or
provided, or treated as made or provided, to its employees or officers or former employees or
officers or any persons required to be treated as such, and the reporting requirements in
relation to such payments and benefits.
	 
	5.2	 	The Disclosure Letter contains full details of all long-term incentive plans, share option
schemes, profit sharing schemes and trusts for the benefit of employees established by the
Company, whether or not approved by any relevant Tax Authority and of all bonus or profit
related pay schemes established by the Company.
	 
	6	 	Group transactions
	 
	6.1	 	The Company is not liable to make any payment (to any person other than another company
falling within the definition of the Company) for any Group Relief or a Refund surrendered or
to be surrendered to it and there are no amounts due or which may become due to the Company
(from any person other than another company falling within the definition of the Company) in
respect of the surrender of any Group Relief or a Refund. The Company is not liable to
surrender (to any person other than another company falling within the definition of the
Company) any Group Relief or a Refund under those provisions. There are no arrangements
whereby the Company may become liable to repay (to any person other than another company
falling within the definition of the Company) any sums paid to it for the surrender of any
Group Relief or a Refund.
	 
	6.2	 	The Company has not at any time:

	 	(a)	 	acquired any asset from any company (other than another company falling within
the definition of the Company) which at the time of the acquisition was a member of the
same group of companies (for the purposes of any Taxation) nor has the Company entered
into any election pursuant to section 171A or section 179A TCGA;
	 
	 	(b)	 	acquired an asset as trading stock from a member of the same group where the
asset did not form part of the trading stock of any trade carried on by the other
member or

102

 

	 	 	 	disposed or an asset which formed part of the trading stock of any trade carried on
by the Company to another member of the same group which acquired the asset
otherwise than as trading stock of a trade carried on by the other member;

	 	(c)	 	ceased to be a member of a group of companies in such circumstances that a
profit or gain was deemed to accrue to the Company and neither the execution of this
Agreement, this Agreement becoming unconditional or Completion will result in any
profit or gain being deemed to accrue to the Company for any Taxation purpose.

	7	 	Residence and offshore interests
	 
	7.1	 	The Company is and has at all times been resident in the county of its incorporation for Tax
purposes and is not and has not been treated as resident or as having a branch or permanent
establishment in any other jurisdiction for any Taxation purpose (including under any double
taxation treaty or agreement).
	 
	7.2	 	The Company is not liable for any Taxation as the agent or Tax representative of any other
person or business and does not constitute a permanent establishment of any other person,
business or enterprise for any Taxation purposes.
	 
	7.3	 	The Company does not and has at no time owned a beneficial interest in the capital of a
company which is resident outside the United Kingdom and which would be a close company if it
were resident in the United Kingdom, in circumstances such that a chargeable gain accruing to
that other company could be appointed to the Company under section 13 TCGA.
	 
	7.4	 	The Company has not received any asset by way of gift as mentioned in section 282 TCGA.
	 
	8	 	VAT
	 
	8.1	 	The Company is duly registered for the purposes of VATA. Such registration is not subject to
any conditions imposed by or agreed with the Commissioners of HM Revenue and Customs. Within
the last 3 years, the Company has complied in all material respects with VATA and all orders,
provisions, directions or other conditions made or imposed thereunder or under any other law
relating to VAT.
	 
	8.2	 	The Company is not and has never been a member of a group for the purpose of section 43 VATA.
	 
	8.3	 	The Company has not registered, and is not required to register, for VAT purposes (or for the
purposes of any similar tax on added value or turnover) in any country other than the United
Kingdom.
	 
	9	 	Stamp duty, stamp duty reserve tax and Stamp duty land tax
	 
	9.1	 	All documents which confer any right or title upon the Company to which the Company was a
party as a Buyer, lessee or assignee and which attract stamp or transfer duty in the United
Kingdom have been duly stamped.
	 
	9.2	 	The Company has not been party to any transaction whereby the Company is or could become
liable to or to account for stamp duty reserve tax.
	 
	9.3	 	The Company has duly paid any stamp duty land tax which it has been required to pay.

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Schedule 10

Pre-Completion

	1	 	Access

Until Completion the Seller shall:

	 	(a)	 	procure that the Buyer, its agents and representatives are given access to the
financial books and records of the Group Companies during normal business hours on any
Business Day and on reasonable notice to the Seller;
	 
	 	(b)	 	provide such information regarding the business and affairs of the Group as the
Buyer may reasonably require provided that the Buyer agrees that it would not be
reasonable to require information considered by the Seller, acting in good faith, to be
commercially sensitive;
	 
	 	(c)	 	not, and shall procure that no Group Company shall enter into, continue or
solicit discussions or negotiations with, or provide any information to or otherwise
assist, any third party who may be interested in acquiring the Sale Shares (or any of
them) or the whole or any material part of the undertaking, business or assets of any
Group Company, save that nothing in this paragraph (c) shall restrict any member of the
Seller’s Group, or any Group Company at the cost of the Seller’s Group (and at no cost
to the Group):

	 	(i)	 	from undertaking any corporate transaction or reorganisation
(other than a sale in a private transaction (whether through one or more
transactions) which relates exclusively to the Group);
	 
	 	(ii)	 	a spin-off of Purpose Financial Holdings, Inc, as envisaged by
documents previously filed with the US Securities and Exchange Commission
	 
	 	(iii)	 	from acquiring the interests of minority shareholders in MEM
on the basis of the Minority SPA; or
	 
	 	(iv)	 	from taking reasonable steps to prepare for the potential
initial public offering of any member of the Group including but not limited to
agreeing appropriate transaction agreements, announcements, notices and
circulars and communication regarding any potential offering with any regulator
provided that there shall be no announcement or disclosure to the public of any
potential offering and information is only provided to potential investors who
have agreed in writing to keep such information confidential ; or
	 
	 	(v)	 	from taking all and any necessary steps to prepare for a
private debt financing, private placement or public offering of debt securities
of any member of the Group including the execution and filing of appropriate
transactional documentation to support such fund raising provided that:

	 	(A)	 	any agreement signed by the Seller or any Group
Company in respect of a private debt financing, private placement or
public offering of debt securities shall provide that it terminates
without liability to any member of the Group upon completion of this
Agreement;

106

 

	 	(B)	 	the Seller shall not close any such
transaction; and
	 
	 	(C)	 	information is only provided to potential
financiers who have agreed in writing to keep such information
confidential.

	2	 	Conduct of Business

Until Completion the Seller shall carry on the Business in the ordinary course in the same manner
as it is presently carried on as regards the nature, scope and manner of operation and exercise all
rights and powers available to it so as to procure that, except with the written consent of the
Buyer, no Group Company shall:

	 	(a)	 	incur any expenditure exceeding £100,000 for any individual item; or
	 
	 	(b)	 	dispose of or create any Security Interest in respect of any part of its assets
except in the ordinary course of trading; or
	 
	 	(c)	 	borrow any money (except pursuant to the NatWest Facility in the ordinary
course of business) or make any payments out of or drawings on its bank account(s)
(except routine payments or drawings (including pursuant to the NatWest Facility in the
ordinary course of business) in the ordinary course of trading); or
	 
	 	(d)	 	enter into any unusual or abnormal contract or commitment; or
	 
	 	(e)	 	grant any lease or third party right in respect of any of the Properties or
transfer or otherwise dispose of any of the Properties; or
	 
	 	(f)	 	contravene in any material respects any statute, order or regulation (provided
always that this paragraph (f) shall not be applied retrospectively (including for the
avoidance of doubt the retrospective interpretation of any existing statute, order or
regulation) to impose any greater obligation or liabilities on the Seller); or
	 
	 	(g)	 	do or omit to do anything which might result in the termination, revocation,
suspension, modification or non-renewal of any licence or consent held by it which is
likely to have a material effect on the Business; or
	 
	 	(h)	 	declare, make or pay any dividend or other distribution excluding (i) the
repayment of any intragroup indebtedness between any Group Company and any other Group
Company or any indebtedness between a Group Company and any Member of the Seller’s
Group and (ii) the redemption of any preference shares in a Group Company by any Member
of the Seller’s Group; or
	 
	 	(i)	 	grant, issue or redeem any mortgage, charge, debenture or other security or
other than in the ordinary course of trading give any guarantee or indemnity, excluding
the redemption of the following Security Interests;

	 	(A)	 	Debenture granted by MEM Capital Limited to
Bank of Scotland plc dated 21 March 2006
	 
	 	(B)	 	Debenture granted by MEM Capital Limited to
CompuCredit Holdings Limited dated 22 March 2007
	 
	 	(C)	 	Guarantee and Debenture granted by MEM Capital
Limited to Barclays Bank dated 12 December 2008

107

 

	 	(D)	 	Guarantee granted by MEM Capital Limited to
Bank of Scotland Plc dated 16 March 2006.

	 	(j)	 	make any change in the terms and conditions of employment of any of its
directors or Senior Manager or employ or terminate (except for good cause) the
employment of any Senior Manager excluding the termination of the employment of Iain
McKenzie; or
	 
	 	(k)	 	make, or announce to any person any proposal to make, any change or addition to
any Relevant Benefits (as defined in paragraph 7 of schedule 3) of or in respect of
any of its directors, employees, former directors or former employees (or any dependant
of any such person) or to any of the Disclosed Schemes other than any change required
by law; or
	 
	 	(l)	 	grant or create, or announce to any person any proposal to grant or create, any
additional Relevant Benefits (as so defined) or take any action or allow any action to
be taken in relation to any of the Disclosed Schemes other than in the ordinary course
of administering the Disclosed Schemes or omit to take any action necessary or prudent
for the ordinary proper operation of the Disclosed Schemes; or
	 
	 	(m)	 	permit any of its insurances to lapse or do anything which it knows or ought
reasonably to know would make any policy of insurance void or voidable; or
	 
	 	(n)	 	create, issue, purchase or redeem any class of share or loan capital other than
pursuant to the Minority SPA or in connection with the repayment of any intragroup
indebtedness between any Group Company and any other Group Company or any indebtedness
between a Group Company and any Member of the Seller’s Group or a redemption of any
preference shares in a Group Company by any Member of the Seller’s Group; or
	 
	 	(o)	 	pass any resolution of its shareholders or any class of shareholders, whether
in general meeting or otherwise other than in connection with the repayment of any
intragroup indebtedness between any Group Company and any Member of the Seller’s Group
or in connection with the transactions envisaged by the Minority SPA; or
	 
	 	(p)	 	form any subsidiary or acquire shares in any company or participate in, or
terminate any participation in, any partnership or joint venture other than termination
of the shareholders agreement relating to MEM Holdings Limited in connection with the
transactions envisaged by the Minority SPA; or
	 
	 	(q)	 	amend, vary, waive or terminate the Parker Fox Agreement or the Minority SPA;
or
	 
	 	(r)	 	fail to enforce any right under the Parker Fox Agreement or the Minority SPA
which would have a material adverse effect on the rights and benefits which any Group
Company has pursuant to the terms of such agreements; or
	 
	 	(s)	 	agree, conditionally or otherwise, to do any of the foregoing.

	3	 	Termination
	 
	3.1	 	3.1 If before Completion the Seller is in material breach of
any obligation on its part under Schedule 10 to this
Agreement, where that breach is capable of remedy, it is
not remedied to the Buyer’s satisfaction the Buyer may
elect to terminate this Agreement by giving notice to the
Seller.

108

 

	3.2	 	3.2 If the Buyer elects to terminate this Agreement pursuant
to the provisions of paragraph 3.1 above,

	 	(a)	 	except for this paragraph 3 (and the provisions of clause 7.2 which implement
this paragraph 3) and clauses 1, 2, 10, 16, 18 and 19 all the provisions of this
Agreement shall lapse and cease to have effect; but
	 
	 	(b)	 	neither the lapsing of those provisions nor their ceasing to have effect shall
affect any (i) accrued rights and obligations under clause 4.6 as at the date of
termination under paragraph 3.1 or (ii) accrued rights or liabilities of either party
in respect of damages for non-performance of any obligation under this Agreement
falling due for performance prior to such lapse and cessation provided that if the
Buyer terminates this Agreement pursuant to paragraph 3.1 the Buyer’s only remedy for
breach of the provisions of this schedule 10 shall be termination of the Agreement.

	4	 	Capital Expenditure
	 
	 	 	Within 7 Business Days of the end of each calendar month after the date of this agreement
the Seller shall, or shall procure that a relevant Group Company shall, provide to the Buyer
a schedule detailing the amounts, in GBP, of any capitalised internal software costs
incurred in the calendar month. The Seller will, acting in good faith, take into account
any comments and observations that the Buyer may reasonably make on such schedule, including
in relation to the treatment of such software costs in the future and provide such
additional information as the Buyer may reasonably request provided that the Buyer agrees
that it would not be reasonable to require the Seller to make any changes to its accounting
principles, policies, procedures or practices.

109

 

Schedule 11

Completion Statement

Part 1 — General Provisions

	1	 	Form and Content of the Completion Statement
	 
	 	 	The Completion Statement shall be drawn up in the format of the proforma set out in part 2 ,
of this schedule and include the line items, set out in part 2 of this schedule. The
Completion Statement shall include the general ledger codes, and only those general ledger
codes, for each of companies in the form set out in part 2 of this schedule. Amounts for
each general ledger category, for each company, are provided as of November 30, 2010 as a
reference. Actual Working Capital Amount is the total sum of the general ledger items for
all of the companies, after considering any eliminations as provided for in the example set
out in part 2 of this schedule below (which, for the avoidance of doubt, is included for
illustrative purposes only).
	 
	2	 	Accounting Policies
	 
	2.1	 	The Completion Statement shall be drawn up in accordance with:

	 	(a)	 	the accounting principles, policies, procedures, practices and techniques set
out in paragraphs 2.2 to 2.3 below;
	 
	 	(b)	 	the specific accounting policies set out in part 3 of this schedule
	 
	 	(c)	 	to the extent not inconsistent with paragraph 2.1(b), the accounting
principles, policies, procedures, practices, evaluation rules, methods, techniques and
bases in the Accounts, applied on a consistent basis;
	 
	 	(d)	 	to the extent not inconsistent with paragraphs 2.1(b) and 2.1(c) UK generally
accepted accounting practices as at the date of this Agreement.

	2.2	 	The Completion Statement shall be drawn up as at Completion. No account shall be taken of
events taking place after Completion and regard shall only be had to information available to
the parties to this Agreement at that time.
	 
	2.3	 	The Completion Statement shall be expressed in pounds sterling.
	 
	3	 	Preparation
	 
	3.1	 	As soon as practicable, and in any event no later than the
date falling 60 days from
Completion (excluding the day of Completion), the Buyer shall deliver to the Seller a draft of
the Completion Statement (Draft Completion Statement). Prior to such delivery, the Buyer
shall so far as is practicable consult with the Seller with a view to reducing the potential
areas of disagreement.
	 
	3.2	 	In order to enable the Seller to review the Draft Completion Statement, the Buyer shall make
available to the Seller, its officers employees and advisers, upon reasonable prior notice all
books and records relating to the Group during normal office hours.
	 
	3.3	 	If the Seller does not within 30 days from delivery to it of the Draft Completion Statement
(excluding the date of delivery) (Review Period) give notice to the Buyer that it disagrees
with

110

 

	 	 	the Draft Completion Statement, such notice stating the reasons for the disagreement in
reasonable detail and specifying the adjustments which, in the Seller’s opinion should be
made to the Draft Completion Statement (the Seller’s Disagreement Notice), the Draft
Completion Statement shall be the Completion Statement and shall be final and binding on the
parties for all purposes.

	3.4	 	If the Seller delivers a valid Seller’s Disagreement Notice within the Review Period, the
Seller and the Buyer shall attempt in good faith to reach agreement in respect of the Draft
Completion Statement and:

	 	(a)	 	if the Buyer and the Seller agree, in writing, on all adjustments to be made to
the Draft Completion Statement within 21 days from delivery of the Seller’s
Disagreement Notice (excluding the date of delivery), then, the agreed adjustments
shall be incorporated into the Draft Completion Statement and the Draft Completion
Statement so adjusted shall be the Completion Statement and shall be final and binding
on the parties for all purposes.
	 
	 	(b)	 	if they are unable to do so within 21 days from delivery of the Seller’s
Disagreement Notice (excluding the date of delivery), the Seller or the Buyer shall
refer those matters which are in dispute in the Draft Completion Statement to the
Reporting Accountants.

	3.5	 	If, as provided in paragraph 3.4(b), the Buyer and the Seller are unable to agree the
Completion Statement then any matters in dispute may be referred by either party for
determination, on the basis set out in paragraphs 3.6 to 3.11 (inclusive ) below to:

	 	(a)	 	the firm of independent chartered accountants agreed between the Seller and the
Buyer within 15 Business Days of a request by either of them to the other, or, failing
such agreement within such time,
	 
	 	(b)	 	the firm of independent chartered accountants nominated by the President for
the time being of the Institute of Chartered Accountants in England and Wales (or by
such person as the President specifies for the purpose of making such nomination) on
the written application of either the Seller or the Buyer.
	 
	 	(c)	 	If any firm of independent chartered accountants selected or nominated pursuant
to paragraphs 3.5(a)or 3.5(b) refuses to accept the appointment, the procedure set out
in this paragraph 3.5 shall be repeated.

	 	 	(the firm of independent chartered accountants appointed pursuant to this paragraph 3.5
shall be the Reporting Accountants)
	 
	3.6	 	The Reporting Accountants shall be engaged jointly by the Seller and the Buyer on the terms
set out in this paragraph 3 and otherwise on such terms as shall be agreed; provided that
neither the Seller nor the Buyer shall unreasonably (having regard, inter alia, to the
provisions of this paragraph 3) refuse its agreement to terms proposed by the Reporting
Accountants or by the other party. If the terms of engagement of the Reporting Accountants
have not been settled within 45 days of their identity having been determined (or such longer
period as the Seller and the Purchaser may agree) then, unless the Seller or the Buyer is
unreasonably refusing its agreement to those terms, those accountants shall be deemed never to
have become the Reporting Accountants and new Reporting Accountants shall be selected in
accordance with the provisions of this Agreement.

111

 

	3.7	 	Except to the extent that the Seller and the Buyer agree otherwise, and save as provided by
the remaining provision of this paragraph 3, the Reporting Accountants shall determine their
own procedure but apart from procedural matters and as otherwise set out in this Agreement
shall determine only:

	 	(a)	 	whether any of the arguments for an alteration to the Draft Completion
Statement put forward in the Seller’s Disagreement Notice, and which remain in dispute,
is correct in whole or in part; and
	 
	 	(b)	 	if so, what alterations should be made to the Draft Completion Statement in
order to correct the relevant inaccuracy in it;

	3.8	 	The Reporting Accountants shall apply the accounting principles, policies, procedures,
practices and techniques set out in paragraph 2 of Part 1 of schedule 11 and shall make their
determination as soon as is reasonably practicable;
	 
	3.9	 	The procedure of the Reporting Accountants shall:

	 	(a)	 	give the Seller and the Buyer a reasonable opportunity to make written
representations to them; and
	 
	 	(b)	 	require that the Seller and the Buyer supply the other with a copy of any
written representations at the same time as they are made to the Reporting Accountants;

	3.10	 	In making their determination the Reporting Accountants shall act as experts and not as
arbitrators and their determination of any matter falling within their jurisdiction shall be
final and binding on the Seller and the Buyer save in the event of manifest error (when the
relevant part of their determination shall be void and the matter shall be remitted to the
Reporting Accountants for correction) or fraud.
	 
	3.11	 	The expenses (including VAT) of the Reporting Accountants shall be borne as they shall direct
or, failing such direction, equally between the Buyer and the Seller.
	 
	3.12	 	Within 5 Business Days of any written determination by the Reporting Accountants pursuant to
this schedule, the Seller and the Buyer shall jointly incorporate in the Draft Completion
Statement the matters determined by the Reporting Accountants, together with any adjustments
which may have been agreed separately in writing between the Seller and the Buyer, and the
Draft Completion Statement as so adjusted shall be the and the Draft Completion Statement so
adjusted shall be the Completion Statement and shall be final and binding on the parties for
all purposes.

112

 

Part 3 — Specific Accounting Policies

	1.	 	Accounting policies for each of the general ledger categories will be consistent with
accounting policies of the Company. No changes to accounting methodology for the specific
general ledger categories shall be undertaken for the sole purpose of calculating Actual
Working Capital Amount or the provision of the Completion Statement, acknowledging that the
Completion Statement is not meant to be a complete financial report.
	 
	2.	 	It shall be assumed that no member of the Group shall incur any liability to account for
income tax and/or employees NIC under the PAYE system and/or to account for employers NICs as
a result of or in connection with the sale and purchase of the MEM Holdings Shares pursuant to
the Minority SPA.

116

 

	 	 	 	 	 

	Executed as a deed by
	 	)	 	/s/ J. Paul Whitehead III
	CCRT International Holdings B.V.
	 	)	 	Director
	acting by a director
	 	)	 	 
	 
	 	 	 	 
	Signed as a deed by CompuCredit Holdings
	 	)	 	 
	Corporation, a corporation incorporated in
	 	)	 	 
	Georgia, USA acting by
	 	)	 	/s/ Jeffrey A. Howard
	and
	 	)	 	Name: Jeffrey A. Howard
	being persons who, in accordance with the laws
	 	)	 	Title: Executive Managing Director
	of Georgia are acting under the authority of
	 	)	 	 
	CompuCredit Holdings Corporation
	 	)	 	 
	 
	 	)	 	/s/ William R. McCamey
	 
	 	)	 	Name: William R. McCamey
	 
	 	)	 	Title: Treasurer

 

 

	 	 	 	 	 

	Executed as a deed by
	 	)	 	 
	Dollar Financial U.K. Limited
	 	)	 	/s/ Roy W. Hibberd
	acting by a director in the presence of
	 	)	 	Director

/s/ Bryan D. MacIntyre

Signature of witness

Name

Bryan D. MacIntyre

Address

c/o Dollar Financial Group, Inc. 1436 Lancaster

Avenue, Suite 300, Berwyn, PA 19312

	 	 	 	 	 

	Executed as a deed by
	 	)	 	 
	Dollar Financial Corp acting by a Senior
	 	)	 	/s/ Roy W. Hibberd
	Vice President in the presence of
	 	)	 	Senior Vice President

/s/ Bryan D. MacIntyre

Signature of witness

Name

Bryan D. MacIntyre

Address

c/o Dollar Financial Group, Inc. 1436 Lancaster

Avenue, Suite 300, Berwyn, PA 19312Exhibit 10.1

Exhibit 10.1

EQUITY DISTRIBUTION PROGRAM

Amended and Restated Distribution Agreement

February 9, 2011

Knight Capital Americas, L.P.

320 Park Avenue, 15th Floor

New York, NY 10022

Ladies and Gentlemen:

Rentech, Inc., a Colorado corporation (the “Company”), confirms its agreement with
Knight Capital Americas, L.P, successor in interest to Knight Capital Markets LLC, as agent
(“you” or “KCA”), to amend and restate the Distribution Agreement dated February 2,
2010 (the “Original Distribution Agreement”) as provided herein with respect to the
issuance and sale from time to time by the Company, in the manner and subject to the terms and
conditions described below, of up to an aggregate number of shares of common stock, $0.01 par value
per share (the “Common Stock”), of the Company having a aggregate gross sales price of up
to $50,000,000 (the “Maximum Number of Shares”), including for the avoidance of doubt, the
shares of Common Stock issued and sold pursuant to the Original Distribution Agreement. Such
shares are hereinafter collectively referred to as the “Shares.” The Shares are described
in the Prospectus referred to below.

The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-3 (No. 333-164654) (the “registration statement”) for the
registration of at least the Maximum Number of Shares, under the Securities Act of 1933, as
amended, and the rules and regulations of the Commission thereunder (collectively, the
“Act”), which sets forth certain of the terms of the offering and sale of the Shares and
additional information concerning the Company and its business. Except where the context otherwise
requires, “Registration Statement,” as used herein, means the registration statement, as
amended at the time of such registration statement’s effectiveness for purposes of Section 11 of
the Act, as such section applies to KCA, including (1) all documents filed as a part thereof or
incorporated or deemed to be incorporated by reference therein, (2) any information contained or
incorporated by reference in a prospectus filed with the Commission pursuant to Rule 424(b) under
the Act, to the extent such information is deemed, pursuant to Rule 430B or Rule 430C under the
Act, to be part of the registration statement at the effective time, and (3) any registration
statement filed to register the offer and sale of Shares pursuant to Rule 462(b) under the Act.
Except where the context otherwise requires, as used herein, (1) “Basic Prospectus”
means the prospectus filed as part of the Registration Statement, together with any amendments
or supplements thereto as of the date of this Agreement; (2) “Prospectus Supplement” means
the final prospectus supplement dated February 9, 2011, relating to the Shares, filed by the
Company with the Commission pursuant to Rule 424(b) under the Act on or before the second business
day after the date hereof (or such earlier time as may be required under the Act), in the form
furnished by the Company to KCA in connection with the offering of the Shares; (3)
“Prospectus” means the Prospectus Supplement together with the Basic Prospectus; (4)
“Permitted Free Writing Prospectuses” means the

 

 

 

 documents listed on Exhibit G
hereto and any other “issuer free writing prospectus” (as defined in Rule 433 of the Act) that
relates to the Shares and which the Company and KCA reasonably agree from time to time is a
Permitted Free Writing Prospectus. Any reference herein to the registration statement, the
Registration Statement, the Basic Prospectus, the Prospectus Supplement, the Prospectus or any
Permitted Free Writing Prospectus shall, unless stated otherwise, be deemed to refer to and include
the documents, if any, incorporated by reference, or deemed to be incorporated by reference,
therein (the “Incorporated Documents”), including, unless the context otherwise requires,
the documents, if any, filed as exhibits to such Incorporated Documents. Any reference herein to
the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, the
Basic Prospectus, the Prospectus Supplement, the Prospectus or any Permitted Free Writing
Prospectus shall, unless stated otherwise, be deemed to refer to and include the filing of any
document under the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder (collectively, the “Exchange Act”), on or after the initial effective date of
the Registration Statement, or the date of Basic Prospectus, the Prospectus Supplement, the
Prospectus or such Permitted Free Writing Prospectus, as the case may be, and deemed to be
incorporated therein by reference.

The Company and KCA agree as follows:

1. Issuance and Sale.

	 	(a)	 	Upon the basis of the representations and warranties and
subject to the terms and conditions set forth herein, on any Exchange Business
Day (as defined below) selected by the Company, the Company and KCA shall enter
into an agreement in accordance with Section 3 hereof regarding the
number of Shares to be placed by KCA as agent for the Company and the manner in
which and other terms upon which such placement is to occur (each such
transaction being referred to as a “Transaction”). As used in this
Agreement, (i) the “Term” shall be the period commencing on the date
hereof and ending on the earliest of (x) February 9, 2012, (y) the date on
which the Maximum Number of Shares have been issued and sold pursuant to this
Agreement, and (z) the termination of this Agreement pursuant to Sections
9 or 10 hereof (the “Termination Date”), (ii) an
“Exchange Business Day” means any day during the Term that is a trading
day for the Exchange other than a day on which trading on the Exchange is
scheduled to close prior to its regular weekday closing time, and (iii)
“Exchange” means NYSE Amex LLC.

	 	(b)	 	Subject to the terms and conditions set forth below, the
Company appoints KCA as agent in connection with the offer and sale of Shares
in any Transactions entered into hereunder. KCA will use commercially
reasonable efforts to sell such Shares in accordance with the terms and
conditions hereof and of the applicable Transaction Notice (as defined below).
Neither the Company nor KCA shall have any obligation to enter into a
Transaction. The Company shall be obligated to issue and sell through KCA, and
KCA shall be obligated to use commercially reasonable
efforts, as provided herein and in the applicable Transaction Notice, to
place Shares issued by the Company only if and when a Transaction Notice
related to such a Transaction has been delivered by KCA and accepted by the
Company as provided in Section 3 hereof. KCA shall have the right,
in its sole discretion, to reject any offer to purchase Shares, as a whole
or in part, by persons solicited by KCA and any such rejection shall not be
deemed a breach of KCA’s agreement herein. The Company may accept or reject
any proposed offer to purchase Shares, as a whole or in part, and no such
rejection shall be deemed a breach of the Company’s agreement herein.

 

2

 

	 	(c)	 	KCA covenants and agrees not to make any sales of the Shares on
behalf of the Company, pursuant to this Agreement, other than (A) by means of
ordinary brokers’ transactions between members of the Exchange that qualify for
delivery of a Prospectus to the Exchange in accordance with Rule 153 under the
Act and meet the definition of an “at the market” offering under Rule 415(a)(4)
under the Act (such transactions are hereinafter referred to as
“At-the-Market-Offerings”) and (B) such other sales of the Shares on
behalf of the Company in its capacity as agent of the Company as shall be
agreed by the Company and KCA in writing. The Company acknowledges and agrees
that in the event a sale of the Shares on behalf of the Company would
constitute the sale of a “block” under Rules 10b-18(a)(5) under the Exchange
Act or a “distribution” within the meaning of Rule 100 of Regulation M under
the Exchange Act or KCA reasonably believes it may be deemed an “underwriter”
under the Act in a transaction that is not an At-the-Market Offering, KCA will
have no obligation to sell such Shares hereunder.

	 	(d)	 	Any obligation of KCA to use its commercially reasonable
efforts to sell the Shares on behalf of the Company shall be subject to the
continuing accuracy of the representations and warranties of the Company herein
in all material respects, to the performance in all material respects by the
Company of its covenants in Sections 5 and 7 hereof and
elsewhere in this Agreement and to the continuing satisfaction of the
additional conditions specified in Sections 6 and 8 hereof.

	 	(e)	 	If the Company shall default on its obligation to deliver
Shares to a purchaser whose offer it has accepted, the Company shall (i) hold
KCA harmless against any loss, claim or damage arising from or as a result of
such default by the Company and (ii) notwithstanding such default, pay to KCA
any fee to which it would otherwise be entitled in connection with such sale.

	 	(f)	 	Notwithstanding anything to the contrary in this Agreement,
either the Company or KCA may, upon written notice to the other party, suspend
the offering of Shares during any period this Agreement is in effect (a
“Suspension Period”); provided, however, that such
suspension shall not
affect or impair the parties respective obligations with respect to the
Shares sold hereunder prior to the giving of such notice.

 

3

 

2. No Purchases as Principal. Neither the Company nor KCA shall enter into, or have
any obligation to enter into, any transaction in which KCA would be obligated to purchase Shares as
a principal pursuant to this Agreement.

3. Transaction Notices and Sales Process.

	 	(a)	 	The Company may, from time to time during the Term, propose to
KCA that they enter into a Transaction to be executed on a specified Exchange
Business Day. If KCA agrees to the terms of such proposed Transaction or if
the Company and KCA agree to modified terms for such proposed Transaction, then
KCA shall promptly send to the Company a notice, substantially in the form of
Exhibit A hereto (each, a “Transaction Notice”), confirming the
agreed terms of such proposed Transaction. If the Company wishes such proposed
Transaction to become a binding agreement between it and KCA, the Company shall
promptly indicate its acceptance thereof by countersigning and returning such
Transaction Notice to KCA or sending a written notice to KCA (by any means
permissible under Section 12 hereof) indicating its acceptance. The
terms reflected in a Transaction Notice shall become binding on KCA and the
Company only if accepted by the Company no later than the times specified in
Section 3(b) hereof. Each Transaction Notice shall specify, among
other things:

	 	(i)	 	the Exchange Business Day on which the Shares
subject to such Transaction are intended to be sold (the “Purchase
Date”);

	 	(ii)	 	the number of Shares that the Company intends
to sell (the “Specified Number of Shares”) on such Purchase
Date, which shall be no less than 5% and no more than 25% of the
average daily trading volume (as defined by Rule 100 of Regulation M
under the Exchange Act, the “ADTV”) in the Common Stock on the
Exchange for 30 Exchange Business Days preceding the date of delivery
of the Transaction Notice, or as otherwise agreed between the Company
and KCA and set forth in the Transaction Notice; and provided that the
gross sales price of such Shares, together with the gross sales price
of all other Shares sold prior to such Purchase Date, shall not exceed
the Maximum Number of Shares; and

	 	(iii)	 	the lowest price (if any) at which the Company
shall be obligated to sell Shares in such Transaction (a “Floor
Price”).

 

4

 

A Transaction Notice shall not set forth a Specified Number of Shares
that, when added to the aggregate gross sales price of Shares
previously purchased and to be purchased pursuant to pending
Transaction Notices (if any) hereunder, results in a total that exceeds the
Maximum Number of Shares. The Company shall have responsibility for
maintaining records with respect to the aggregate gross sales price of
Shares sold, or for otherwise monitoring the availability of Shares for sale
under the Registration Statement. There shall be no more than one
Transaction Notice and one related Transaction with respect to any Purchase
Date. A Transaction Notice conforming to the foregoing requirements, once
accepted by the Company, shall be irrevocable, and (i) the Company shall be
obligated, subject to the terms of, and satisfaction of the conditions set
forth in, this Agreement and such Transaction Notice, including, but not
limited to, Section 3(c) hereof, to sell the Specified Number of
Shares and (ii) KCA shall be obligated, subject to the terms of, and
satisfaction of the conditions set forth in, this Agreement and such
Transaction Notice, including, but not limited to, Sections 1(c),
(d) and (e) and Section 3(e) hereof, to use its
commercially reasonable efforts to solicit offers for the Shares.
Notwithstanding the foregoing, if the terms of any Transaction contemplate
that Shares shall be sold on more than one Purchase Date, then the Company
and KCA shall agree to such additional terms and conditions as they deem
necessary in respect of such multiple Purchase Dates, and such additional
terms and conditions shall be set forth in the relevant Transaction Notice
and be binding to the same extent as any other terms contained therein.

	 	(b)	 	The Purchase Date in respect of the Shares deliverable pursuant
to any Transaction Notice shall be the Exchange Business Day next following the
date on which such Transaction Notice is accepted if such acceptance occurs by
4:30 p.m. (New York time) on such acceptance date; provided that if a
Transaction Notice is accepted prior to 8:30 a.m. (New York time) on an
Exchange Business Day (or by such later time as KCA may agree in its sole
discretion), the Purchase Date in respect of such Shares shall be such date of
acceptance. KCA’s commission for Transactions shall be 1.5% of the actual
sales price of the Shares (the “Gross Sale Price” and the difference
between the Gross Sales Price and the commission payable to KCA is defined
herein as the “Net Sales Price”).

	 	(c)	 	If Shares are to be sold in a Transaction that is an
At-the-Market Offering, KCA will confirm in writing to the Company the number
of Shares sold on any Exchange Business Day and the related Gross Sales Price
and Net Sales Price no later than the opening of trading on the immediately
following Exchange Business Day.

 

5

 

	 	(d)	 	Payment of the Net Sales Price for Shares sold by the Company
on any Purchase Date pursuant to a Transaction Notice shall be made to the
Company by federal funds wire transfer to:

Bank:

Address

ABA #:

Account name:

Account #:

Bank contact:

against delivery of such Shares to the accounts specified in writing by KCA.
Such payment and delivery shall be made at or about 10:00 a.m., local time
in New York, New York, on the third Exchange Business Day (or such other day
as may, from time to time, become standard industry practice for settlement
of such a securities issuance) following each Purchase Date (the
“Closing Date”). If the Company fails for any reason to make timely
delivery of such Shares after receiving payment therefor, the Company shall
indemnify KCA and its successors and assigns and hold them harmless from and
against any loss, damage, expense, liability or claim that KCA may incur as
a result of such failure.

	 	(e)	 	If, as provided in the related Transaction Notice, a Floor
Price has been agreed to by the parties with respect to a Transaction, and KCA
thereafter determines and notifies the Company that the Gross Sales Price for
such Transaction would not be at least equal to such Floor Price, then the
Company shall not be obligated to issue and sell to or through KCA, and KCA
shall not be obligated to purchase or place, the Specified Number of Shares for
such Transaction.

	 	(f)	 	If either party has reason to believe that the exemptive
provisions set forth in Rule 101(c)(1) of Regulation M under the Exchange Act
are not satisfied with respect to the Shares, it shall promptly notify the
other party and sales of the Shares under this Agreement and any Transaction
Notice shall be suspended until that or another exemptive provision shall have
been satisfied in the judgment of each party. KCA and the Company shall each
calculate the ADTV of the Common Stock on the 15th day and the last day of each
month, or if such day is not an Exchange Business Day, the immediately
succeeding Exchange Business Day.

 

6

 

4. Representations and Warranties of the Company. The Company represents and warrants
to KCA, on and as of (i) the date hereof, (ii) each date on which the Company accepts a Transaction
Notice (a “Time of Acceptance”), (iii) each Purchase Date or Time of Sale (as defined below
(if different) and (iv) each Closing Date, each such date listed in (i) through (iv), a
“Representation Date”) that, except as set forth in the Registration Statement and the
Prospectus:

	 	(a)	 	At the time of effectiveness, at the date hereof and at each
Closing Date, the Registration Statement complied or will comply in all
material respects with the requirements of the Act and the rules and
regulations thereunder
and did not and will not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading. The Prospectus, as of its date
and at each Closing Date did not and will not contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The
representations and warranties set forth in the two immediately preceding
sentences shall not apply to statements in or omissions from the
Registration Statement or any post-effective amendment thereto or the
Prospectus in reliance upon, and in conformity with, written information
furnished to the Company by KCA specifically for use in the preparation
thereof. The Registration Statement contains all exhibits and schedules
required to be filed by the Act or the rules and regulations thereunder. No
order preventing or suspending the effectiveness or use of the Registration
Statement or the Prospectus is in effect and no proceedings for such purpose
have been instituted or are pending, or, to the knowledge of the Company,
are threatened in writing by the Commission.

	 	(b)	 	The documents incorporated by reference in the Registration
Statement and the Prospectus, when they became effective or were filed with the
Commission, as the case may be, conformed in all material respects to the
requirements of the Act or the Exchange Act, as applicable, were filed on a
timely basis with the Commission and none of such documents, when they were
filed (or, if amendments to such documents were filed, when such amendments
were filed), contained an untrue statement of a material fact or omitted to
state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading. Any further
documents so filed and incorporated by reference in the Registration Statement
or the Prospectus, when such documents are filed with the Commission, will
conform in all material respects to the requirements of the Exchange Act, and
will not contain an untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

	 	(c)	 	The financial statements of the Company, together with the
related notes, included or incorporated by reference in the Registration
Statement and the Prospectus comply in all material respects with the
requirements of the Act and the Exchange Act and fairly present in all material
respects the financial condition of the Company as of the dates indicated and
the results of operations and changes in cash flows for the periods therein
specified in conformity with generally accepted accounting principles
consistently applied throughout the periods involved; and the supporting
schedules included in the Registration Statement present fairly in all material
respects the information required to be stated therein. No other financial
statements or schedules are required to be included in the
Registration Statement or the Prospectus. To the Company’s knowledge,
Ehrhardt Keefe Steiner & Hottman P.C. and PricewaterhouseCoopers LLP are
independent public accounting firms with respect to the Company within the
meaning of the Act and the rules and regulations thereunder.

 

7

 

	 	(d)	 	The Company had a reasonable basis for, and made in good faith,
each “forward-looking statement” (within the meaning of Section 27A of the Act
or Section 21E of the Exchange Act) contained or incorporated by reference in
the Registration Statement or the Prospectus.

	 	(e)	 	All statistical or market-related data included or incorporated
by reference in the Registration Statement or the Prospectus are based on or
derived from sources that the Company reasonably believes to be reliable and
accurate, and the Company has obtained the written consent to the use of such
data from such sources, to the extent required.

	 	(f)	 	To the knowledge of the Company, there is no action pending to
delist the Common Stock from the Exchange, nor has the Company received any
written notification that the Exchange is currently contemplating terminating
such listing. When issued, the Shares will be listed on the Exchange.

	 	(g)	 	The Shares have been or will be qualified for sale under the
securities laws of such United States jurisdictions as KCA reasonably
determines, or are or will be exempt from the qualification requirements of
such jurisdictions; provided that the Company shall not be required to qualify
as a foreign corporation, become a dealer of securities, or become subject to
taxation in, or to consent to the service of process under the laws of, any
such state (except service of process with respect to the offering and sale of
the Shares).

	 	(h)	 	The Company has not taken, directly or indirectly, any action
that is designed to or that has constituted or that would reasonably be
expected to cause or result in the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Shares;
provided that nothing herein shall prevent the Company from filing or
submitting reports under the Exchange Act or the issuance of press releases in
the ordinary course of business.

	 	(i)	 	The Company is not an “ineligible issuer,” as defined
in Rule 405 of the Act. Subject to Section 5(a) below, the Company
represents and warrants that it has not prepared or had prepared on its behalf
or used or referred to any “issuer free writing prospectus” (as defined in Rule
433 of the Act) that relates to the Shares. Subject to Section 5(a)
below, the Company has not distributed and the Company will not distribute,
prior to the completion of the sale of the Shares, any offering material in
connection with the sale of the Shares other than the Prospectus, the
Registration
Statement, and copies of the documents, if any, incorporated by reference
therein.

 

8

 

	 	(j)	 	The Company is not and, after giving effect to the sale of the
Shares, will not be required to register as an “investment company,” as such
term is defined in the Investment Company Act of 1940, as amended.

	 	(k)	 	The Company and each of its subsidiaries set forth on
Schedule I hereto (each a “Subsidiary” and, collectively, the
“Subsidiaries”) has been duly organized and is validly existing as a
corporation in good standing under the laws of its jurisdiction of
incorporation. The Company and each of its Subsidiaries has the corporate power
and authority to own its properties and conduct its business as currently being
carried on and as described in the Registration Statement and the Prospectus,
and is duly qualified to do business as a foreign corporation in good standing
in each jurisdiction in which it owns or leases real property or in which the
conduct of its business makes such qualification necessary and in which the
failure to so qualify would have or is reasonably likely to result in a
material adverse effect upon the business, properties, operations, condition
(financial or otherwise) or results of operations of the Company and its
Subsidiaries, taken as a whole, or in its ability to perform its obligations
under this Agreement (“Material Adverse Effect”).

	 	(l)	 	The Company has the corporate power and authority to enter into
this Agreement. This Agreement has been duly authorized, executed and
delivered by the Company, and constitutes a valid, legal and binding obligation
of the Company, enforceable in accordance with its terms, except as rights to
indemnity hereunder may be limited by federal or state laws and except as such
enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws affecting the rights of creditors generally and subject to general
principles of equity.

	 	(m)	 	The execution, delivery and performance of this Agreement and
the consummation of the transactions herein contemplated will not (i) result in
a breach or violation of any of the terms and provisions of, or constitute a
default under, any law, rule or regulation to which the Company or any
Subsidiary is subject, or by which any property or asset of the Company or any
Subsidiary is bound or affected, (ii) conflict with, result in any violation or
breach of, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or give to others any right of
termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of, any agreement, lease, credit facility, debt, note,
bond, mortgage, indenture or other instrument or binding obligation or other
binding understanding (the “Contracts”) to which the Company or any
Subsidiary is a party of by which any property or asset of the Company or any
Subsidiary is bound or affected, or (iii) result in a breach or violation of
any of the terms and provisions of, or
constitute a default under, the Company’s charter or bylaws, except in the
case of clauses (i) and (ii) such breaches, violations, defaults, or
conflicts which do not individually or in the aggregate be reasonably likely
to result in a Material Adverse Effect.

 

9

 

	 	(n)	 	All consents, approvals, orders, authorizations and filings
required on the part of the Company and its Subsidiaries in connection with the
execution, delivery or performance of this Agreement have been obtained or
made, other than such consents, approvals, orders and authorizations the
failure of which to make or obtain is not reasonably likely to result in a
Material Adverse Effect.

	 	(o)	 	The Company has an authorized capitalization as set forth in
the Registration Statement and the Prospectus. All of the issued and
outstanding shares of capital stock of the Company are duly authorized and
validly issued, fully paid and nonassessable, and have been issued in material
compliance with all applicable securities laws, and conform in all material
respects to the description thereof in the Registration Statement and the
Prospectus. None of the outstanding shares of capital stock of the Company was
issued in violation of any preemptive rights, rights of first refusal or other
similar rights to subscribe for or purchase securities of the Company. Except
for the issuances of options, warrants or restricted stock or restricted stock
units in the ordinary course of business, since the respective dates as of
which information is provided in the Registration Statement or the Prospectus,
the Company has not entered into or granted any convertible or exchangeable
securities, options, warrants, agreements, contracts or other rights in
existence to purchase or acquire from the Company any shares of the capital
stock of the Company. The Shares, when issued, will be duly authorized and
validly issued, fully paid and nonassessable, issued in material compliance
with all applicable securities laws, and free of preemptive, registration or
similar rights.

	 	(p)	 	Except as set forth in the Registration Statement and the
Prospectus, the Company does not own, directly or indirectly, a majority of the
capital stock or other ownership interest in any partnership, corporation,
business trust, limited liability company, limited liability partnership, joint
stock company, trust, unincorporated association, joint venture or other
entity.

	 	(q)	 	Each of the Company and its Subsidiaries has filed all foreign,
federal, state and local returns (as hereinafter defined) required to be filed
with taxing authorities prior to the date hereof or has duly obtained
extensions of time for the filing thereof. Each of the Company and its
Subsidiaries has paid all taxes (as hereinafter defined) shown as due on such
returns that were filed and has paid all taxes imposed on or assessed against
the Company or such respective Subsidiary. The term “taxes” mean all
federal, state, local, foreign, and other net income, gross income, gross
receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease,
service, service use, withholding, payroll, employment, excise, severance,
stamp, occupation, premium, property, windfall profits, customs, duties or
other taxes, fees, assessments, or charges of any kind whatever, together
with any interest and any penalties, additions to tax, or additional amounts
with respect thereto. The term “returns” means all returns,
declarations, reports, statements, and other documents required to be filed
in respect to taxes.

 

10

 

	 	(r)	 	Since the respective dates as of which information is given in
the Registration Statement or the Prospectus, (i) other than in the ordinary
course of business, neither the Company nor any of its Subsidiaries has
incurred any material liabilities or debt obligations, direct or contingent,
required to be reflected on a balance sheet in accordance with generally
accepted accounting principles, or entered into any material transactions, (ii)
the Company has not declared or paid any dividends or made any distribution of
any kind with respect to its capital stock; (iii) there has not been any change
in the capital stock of the Company or any of its Subsidiaries (other than a
change in the number of outstanding shares of Common Stock due to the issuance
of shares upon the exercise of outstanding options or warrants or the issuance
of restricted stock awards or restricted stock units under the Company’s
existing stock awards plan, or any new grants thereof in the ordinary course of
business), (iv) other than in the ordinary course of business, there has not
been any material change in the Company’s long-term or short-term debt, and (v)
there has not been the occurrence of any Material Adverse Effect.

	 	(s)	 	There is not pending or, to the knowledge of the Company,
threatened, any action, suit or proceeding to which the Company or any of its
Subsidiaries is a party or of which any property or assets of the Company is
the subject before or by any court or governmental agency, authority or body,
or any arbitrator or mediator, which is reasonably likely to result in a
Material Adverse Effect.

	 	(t)	 	The Company and each of its Subsidiaries holds, and is in
compliance with, all franchises, grants, authorizations, licenses, permits,
easements, consents, certificates and orders (“Permits”) of any
governmental or self-regulatory agency, authority or body required for the
conduct of its business, and all such Permits are in full force and effect, in
each case except where the failure to hold, or comply with, any of them is not
reasonably likely to result in a Material Adverse Effect.

	 	(u)	 	The Company and its Subsidiaries have good and marketable title
to all property (whether real or personal) described in the Registration
Statement and the Prospectus as being owned by them that are material to the
business of the Company, in each case free and clear of all liens, claims,
security interests, other encumbrances or defects, except those that are not
reasonably likely to result in a Material Adverse Effect. The property held
under lease by the Company and its Subsidiaries is held by them under valid,
subsisting and enforceable leases with only such exceptions with respect to
any particular lease as do not interfere in any material respect with the
conduct of the business of the Company or its Subsidiaries.

 

11

 

	 	(v)	 	The Company and each of its Subsidiaries owns or possesses or
has valid right to use all patents, patent applications, trademarks, service
marks, trade names, trademark registrations, service mark registrations,
copyrights, licenses, inventions, trade secrets and similar rights
(“Intellectual Property”) necessary for the conduct of the business of
the Company and its Subsidiaries as currently carried on and as described in
the Registration Statement and the Prospectus, except those the absence of
which are not reasonably likely to result in a Material Adverse Effect. To the
knowledge of the Company, no action or use by the Company or any of its
subsidiaries will involve or give rise to any infringement of, or license or
similar fees for, any Intellectual Property of others, except where such
action, use, license or fee is not reasonably likely to result in a Material
Adverse Effect. Neither the Company nor any of its Subsidiaries has received
any written notice alleging any such material infringement or fee.

	 	(w)	 	The Company and each of its Subsidiaries has complied with, is
not in violation of, and has not received any written notice of violation
relating to any applicable law, rule or regulation relating to the conduct of
its business, or the ownership or operation of its property and assets,
including, without limitation (to the extent applicable), (i) the Currency and
Foreign Transactions Reporting Act of 1970, as amended, or any money laundering
laws, rules or regulations, (ii) any laws, rules or regulations related to
health, safety or the environment, including those relating to the regulation
of hazardous substances, (iii) the Sarbanes-Oxley Act and the rules and
regulations of the Commission thereunder, (iv) the Foreign Corrupt Practices
Act of 1977 and the rules and regulations thereunder, and (v) the Employment
Retirement Income Security Act of 1974 and the rules and regulations
thereunder, in each case except where the failure to be in compliance is not
reasonably likely to result in a Material Adverse Effect.

	 	(x)	 	Neither the Company nor any of its Subsidiaries nor, to the
knowledge of the Company, any director, officer, employee, representative,
agent or affiliate of the Company or any of its Subsidiaries is currently
subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”); and the Company will
not directly or indirectly use the proceeds of the sale of the Shares
contemplated hereby, or lend, contribute or otherwise make available such
proceeds to any person or entity, for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered by OFAC.

 

12

 

	 	(y)	 	The Company and each of its Subsidiaries carries, or is covered
by, insurance in such amounts and covering such risks as is customary for
companies engaged in similar businesses in similar industries.

	 	(z)	 	No labor dispute with the employees of the Company or any of
its Subsidiaries exists or, to the knowledge of the Company, is imminent that
is reasonably likely to result in a Material Adverse Effect.

	 	(aa)	 	Neither the Company nor any of its Subsidiaries is in
violation, breach or default under its certificate of incorporation, bylaws or
other equivalent organizational or governing documents.

	 	(bb)	 	Neither the Company, its Subsidiaries nor, to its knowledge,
any other party is in violation, breach or default of any Contract that is
reasonably likely to result in a Material Adverse Effect.

	 	(cc)	 	No supplier, customer, distributor or sales agent of the
Company has notified the Company that it intends to discontinue or decrease the
rate of business done with the Company, except where such discontinuation or
decrease is not reasonably likely to result in a Material Adverse Effect.

	 	(dd)	 	There are no claims, payments, issuances, arrangements or
understandings for services in the nature of a finder’s, consulting or
origination fee with respect to the introduction of the Company to KCA or the
sale of the Shares hereunder or any other arrangements, agreements,
understandings, payments or issuances with respect to the Company to which the
Company is a party that, to the knowledge of the Company, will affect KCA’s
compensation, as determined by FINRA.

	 	(ee)	 	Except as disclosed to KCA in writing or in the Registration
Statement or Prospectus, the Company has not made any direct or indirect
payments (in cash, securities or otherwise) to (i) any person, as a finder’s
fee, investing fee or otherwise, in consideration of such person raising
capital for the Company or introducing to the Company persons who provided
capital to the Company, (ii) any FINRA member, or (iii) any person or entity
that has any direct or indirect affiliation or association with any FINRA
member within the 12-month period prior to the date on which the Registration
Statement was filed with the Commission (“Filing Date”) or thereafter.

	 	(ff)	 	To the Company’s knowledge, no (i) officer or director of the
Company or its Subsidiaries, (ii) owner of 5% or more of the Company’s
unregistered securities or that of its Subsidiaries or (iii) owner of any
amount of the Company’s unregistered securities acquired within the 180-day
period prior to the Filing Date, has any direct or indirect affiliation or
association with any FINRA member.

	 	(gg)	 	Other than KCA, no person has the right to act as an agent,
underwriter or as a financial advisor in connection with the sale of the Shares
contemplated hereby.

 

13

 

5. Certain Covenants of the Company. The Company hereby agrees with KCA:

	 	(a)	 	During any period of time in which a prospectus relating to the
Shares is required to be delivered under the Act (a “Prospectus Delivery
Period”), before using or filing any Permitted Free Writing Prospectus and
before amending or supplementing the Registration Statement or the Prospectus
(in each case other than due to the filing of an Incorporated Document or any
amendment or supplement that does not relate to the Shares), to furnish to KCA
a copy of each such proposed Permitted Free Writing Prospectus, amendment or
supplement within a reasonable period of time before filing any such Permitted
Free Writing Prospectus, amendment or supplement with the Commission, and the
Company will not use, or file any such Permitted Free Writing Prospectus or
file any such proposed amendment or supplement to which KCA promptly and
reasonably objects, unless the Company’s legal counsel has advised the Company
that filing such document is required by law.

	 	(b)	 	To prepare the Prospectus Supplement and to file such
Prospectus Supplement pursuant to, and within the time periods required by,
Rule 424(b) and Rules 430B or 430C under the Act and to file any Permitted Free
Writing Prospectus to the extent required by Rule 433 under the Act and to
provide copies of the Prospectus and such Prospectus Supplement and each
Permitted Free Writing Prospectus (to the extent not previously delivered or
filed and available on EDGAR) to KCA via e-mail in “.pdf” format on such filing
date to an e-mail account designated by KCA and, at KCA’s reasonable request,
to also furnish copies of the Prospectus and such Prospectus Supplement as may
be required by the rules or regulations of the Exchange.

	 	(c)	 	To file promptly all reports and any definitive proxy or
information statements required to be filed by the Company with the Commission
pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act during each
Prospectus Delivery Period, and during such same period to advise KCA, promptly
after the Company receives notice thereof, (i) of the time when any amendment
to the Registration Statement has been filed or has become effective or any
supplement to the Prospectus or any Permitted Free Writing Prospectus or any
amended Prospectus has been filed with the Commission (in each case other than
due to the filing of an Incorporated Document or any amendment or supplement
that does not relate to the Shares), (ii) the issuance by the Commission of any
stop order or of any order preventing or suspending the use of any prospectus
relating to the Shares or the initiation or threatening of any proceeding for
that purpose or pursuant to Section 8A of the Act, (iii) the suspension of the qualification of the

 

14

 

 Shares for offering or sale in any jurisdiction, of the
initiation or threatening of any proceeding for any such purpose, (iv) of
any request by the Commission for the amendment of the Registration
Statement or the amendment or supplementation of the Prospectus or for
additional information with respect thereto and (v) of the occurrence of any
event as a result of which the Prospectus or any Permitted Free Writing
Prospectus as then amended or supplemented would include any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances existing when the Basic Prospectus, the
Prospectus or any such Permitted Free Writing Prospectus is delivered to a
purchaser, not misleading.

	 	(d)	 	In the event of the issuance of any such stop order or of any
such order preventing or suspending the use of the Prospectus or suspending any
such qualification during each Prospectus Delivery Period referred to above, to
use promptly its commercially reasonable efforts to obtain its withdrawal.

	 	(e)	 	To furnish such information as may be required and otherwise to
cooperate in qualifying the Shares for offering and sale under the securities
or blue sky laws of such states as KCA may reasonably designate and to maintain
such qualifications in effect so long as required for the distribution of the
Shares; provided that the Company shall not be required to qualify as a foreign
corporation, become a dealer of securities, or become subject to taxation in,
or to consent to the service of process under the laws of, any such state
(except service of process with respect to the offering and sale of the
Shares); and to promptly advise KCA of the receipt by the Company of any
notification with respect to the suspension of the qualification of the Shares
for sale in any jurisdiction or the initiation of any proceeding for such
purpose.

	 	(f)	 	To make available to KCA at its offices in New York, New York
(or as designated by KCA), without charge, as soon as practicable after the
date of this Agreement, and thereafter from time to time to furnish to KCA, as
many copies of the Prospectus (or of the Prospectus as amended or supplemented
if the Company shall have made any amendments or supplements thereto and
documents incorporated by reference therein after the effective date of the
Registration Statement) and each Permitted Free Writing Prospectus as KCA may
reasonably request during each Prospectus Delivery Period; and during each such
period, the Company will prepare and file promptly, subject to Section
5(a) hereof, such amendment or amendments to the Registration Statement,
the Prospectus, the Prospectus Supplement or any Permitted Free Writing
Prospectus as may be necessary to comply with the requirements of Section
10(a)(3) of the Act.

 

15

 

	 	(g)	 	To furnish or make available to KCA during each Prospectus
Delivery Period, copies of all annual, quarterly and current reports filed with
the Commission on Forms 10-K, 10-Q and 8-K, or such other similar form as may
be designated by the Commission, in each case as soon as such reports,
communications, documents or information becomes available or promptly upon the
request of KCA, as applicable; provided, that so long as the Company is subject
to the reporting requirements of either Section 13 or Section 15(d) of the
Exchange Act and is timely filing reports with the Commission on EDGAR, it is
not required to furnish such reports or statements to KCA.

	 	(h)	 	If, at any time during a Prospectus Delivery Period, any event
shall occur or condition shall exist as a result of which it is necessary in
the reasonable opinion of counsel for KCA or counsel for the Company, to
further amend or supplement the Prospectus or any Permitted Free Writing
Prospectus as then amended or supplemented in order that the Prospectus or any
such Permitted Free Writing Prospectus will not include an untrue statement of
a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein not misleading, in
the light of the circumstances existing at the time the Prospectus or any such
Permitted Free Writing Prospectus is delivered to a purchaser, or if during
such period it shall be necessary, in the reasonable opinion of either such
counsel, to amend or supplement the Registration Statement, the Prospectus or
any Permitted Free Writing Prospectus in order to comply with the requirements
of the Act, prompt notice shall be given, and confirmed in writing, to KCA to
cease the solicitation of offers to purchase the Shares, and the Company will
promptly prepare and file with the Commission such amendment or supplement,
whether by filing documents pursuant to the Act, the Exchange Act or otherwise,
as may be necessary to correct such untrue statement or omission or to make the
Registration Statement, the Prospectus or any such Permitted Free Writing
Prospectus comply with such requirements.

	 	(i)	 	To generally make available to its security holders as soon as
reasonably practicable, an earnings statement (in form complying with the
provisions of Section 11(a) of the Act and Rule 158 under the Act) covering the
12 month period beginning not later than the first day of the Company’s fiscal
quarter next following the “effective date” (as defined in such Rule 158) of
the Registration Statement with respect to each sale of Shares.

	 	(j)	 	To furnish to KCA one conformed copy of the Registration
Statement, as initially filed with the Commission, and of all amendments
thereto, (excluding all exhibits thereto) and all documents incorporated by
reference therein.

	 	(k)	 	To apply the net proceeds from the sale of the Shares in the
manner described in the Registration Statement, any Basic Prospectus, the
Prospectus or any Permitted Free Writing Prospectus under the caption “Use
of Proceeds.”

 

16

 

	 	(l)	 	The Company will not, and will cause its Subsidiaries not to,
take, directly or indirectly, any action designed to cause or result in, or
that constitutes or might reasonably be expected to constitute, the
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Shares; provided that nothing herein shall
prevent the Company from filing or submitting reports under the Exchange Act or
the issuance of press releases in the ordinary course of business.

	 	(m)	 	Except as otherwise agreed between the Company and KCA, to pay
all costs, expenses, fees and taxes in connection with (i) the preparation and
filing of the Registration Statement, any Basic Prospectus, the Prospectus, any
Permitted Free Writing Prospectus, each Preliminary Prospectus, and any
amendments or supplements thereto, and the printing and furnishing of copies of
each thereof to KCA and to dealers (including costs of mailing and shipment),
(ii) the registration, issue and delivery of the Shares, (iii) the producing,
word processing and/or printing of this Agreement, any powers of attorney and
any closing documents (including compilations thereof) and the reproduction
and/or printing and furnishing of copies of each thereof to KCA (including
costs of mailing and shipment), (iv) the listing of the Shares on the Exchange
and any registration thereof under the Exchange Act, (v) the fees and
disbursements of counsel to the Company, (vi) the documented, reasonable fees
and disbursements of outside counsel to KCA in connection with the negotiation
and completion of this Agreement (which shall include all matters required to
be completed as conditions precedent to the parties agreeing to and executing
this Agreement) up to a maximum of $5,000 for all such fees and disbursements,
(vii) the documented, reasonable fees and disbursements of outside counsel to
KCA in connection with each review of the “comfort” letters and other documents
referred to in Section 7(b) other than the initial such review, up to a maximum
of $5,000 per review for all such fees and disbursements and (viii) any other
costs and expenses of the Company incident to the performance of the Company’s
other obligations hereunder.

	 	(n)	 	With respect to the offering(s) of Shares contemplated hereby,
the Company will not distribute any offering material in connection with the
offer and sale of the Shares, other than the Registration Statement, any Basic
Prospectus, the Prospectus or any Permitted Free Writing Prospectus and other
materials permitted by the Act or the rules and regulations promulgated
thereunder.

 

17

 

	 	(o)	 	During each period beginning with the date of the Transaction
Notice and ending after the close of business on the Purchase Date for the
related Transaction (an “Applicable Offering Period”), the Company will
not (i)
offer, pledge, announce the intention to sell, sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase or otherwise transfer or
dispose of, directly or indirectly, any shares of its Common Stock or any
securities convertible into or exercisable or exchangeable for such shares
or (ii) enter into any swap or other agreement that transfers, in whole or
in part, any of the economic consequences of ownership of such shares,
whether any such transaction described in clause (i) or (ii) above is to be
settled by delivery of shares or such other securities, in cash or
otherwise, without the prior written consent of KCA other than (i) the
Shares sold hereunder; (ii) any shares of Common Stock of the Company issued
upon the conversion or exercise of any securities outstanding at the
beginning of the Applicable Offering Period; and (iii) any securities issued
pursuant to stock-based compensation plans existing at the beginning of the
Applicable Offering Period.

	 	(p)	 	The Company will, pursuant to reasonable procedures developed
in good faith, retain copies of each Permitted Free Writing Prospectus that is
not filed with the Commission in accordance with Rule 433 under the Act.

	 	(q)	 	That it consents to KCA trading in the Common Stock for KCA’s
own account and for the account of its clients at the same time as sales of the
Shares occur pursuant to this Agreement, so long as such trading complies with
the “plan of distribution” in the Registration Statement and the Prospectus.

	 	(r)	 	To advise KCA promptly after it shall have received notice or
obtain knowledge thereof, of any information or fact that would alter or affect
any opinion or certificate provided to KCA pursuant to this Agreement.

	 	(s)	 	To use its reasonable best efforts to cause the Shares to be
listed on the Exchange promptly after the execution and delivery of this
Agreement, subject only to notice of issuance at or before the time of purchase
on the relevant Purchase Date, and to provide evidence thereof reasonably
satisfactory to KCA and its counsel.

6. Execution of Agreement. KCA’s obligations under this Agreement shall be subject to
the satisfaction of the following conditions in connection with the execution of this Agreement:

	 	(a)	 	KCA shall have received the following deliveries not later than
five days after the date of this Agreement:

	 	(i)	 	an officers’ certificate signed by two of its
executive officers certifying as to the matters set forth in
Exhibit B hereto;

	 	(ii)	 	an opinion of Latham & Watkins LLP, counsel for
the Company, addressed to KCA and dated the date of this Agreement, as
to the
matters set forth in Exhibit C hereto, with only such
departures from such form as Morrison & Foerster LLP, counsel for
KCA, shall have reasonably approved;

 

18

 

	 	(iii)	 	an opinion of Holland & Hart LLP, Colorado
counsel to the Company, addressed to KCA and dated the date of this
Agreement, as to the matters set forth in Exhibit D hereto,
with only such departures from such form as Morrison & Foerster LLP,
counsel to KCA, shall have reasonably approved;

	 	(iv)	 	so long as KCA provides such independent
auditors with any representation letters they reasonably request in
accordance with customary practice, a “comfort” letter from each of
Ehrhardt Keefe Steiner & Hottman P.C. and PricewaterhouseCoopers LLP
dated the date of this Agreement and addressed to KCA, in a form
reasonably satisfactory to KCA and its counsel consistent with
customary practice for such letters;

	 	(v)	 	evidence reasonably satisfactory to KCA and its
counsel that the Registration Statement has become effective;

	 	(vi)	 	evidence reasonably satisfactory to KCA and its
counsel that the Shares have been approved for listing on the Exchange,
subject only to notice of issuance at or before the time of purchase on
the relevant Purchase Date;

	 	(vii)	 	resolutions duly adopted by the Company’s
board of directors, and certified by an officer of the Company,
authorizing the Registration Statement, Company’s execution of this
Agreement and the consummation by the Company of the transactions
contemplated hereby, including the issuance of the Shares and such
other matters as are customary for the transactions contemplated
hereby; and

(viii) such other documents as KCA shall reasonably request; and

	 	(b)	 	KCA shall have received the following deliveries from Morrison
& Foerster LLP not later than five days after the date of this Agreement: (i) a
favorable opinion, as to the matters set forth in Exhibit E hereto, and
(ii) a letter with respect to Rule 10b-5 of the Exchange Act, as to the matters
set forth in Exhibit F hereto.

 

19

 

7. Additional Covenants of the Company. The Company further covenants and agrees with
KCA as follows:

	 	(a)	 	Each acceptance of a Transaction Notice by the Company shall be
deemed to be an affirmation that the representations and warranties of the
Company herein contained and contained in any certificate delivered to
	 
	 	 	 	KCA pursuant hereto are true and correct at the Time of Acceptance, and an
undertaking that such representations and warranties will be true and
correct on any Closing Date, as though made at and as of each such time, in
each case, except for representations and warranties that address matters
only as of a certain date, which need only be true and correct as of such
certain date (it being understood that such representations and warranties
shall relate to the Registration Statement, any Basic Prospectus, the
Prospectus or any Permitted Free Writing Prospectus as amended and
supplemented to the time of such Transaction Notice).

	 	(b)	 	Each time that the Registration Statement, the Prospectus or
any Permitted Free Writing Prospectus shall be amended or supplemented after
the date of this Agreement (including, except as noted in the proviso at the
end of this Section 7(b), by the filing of any Incorporated Document,
but excluding any prospectus supplement filed pursuant to Section 5(b)
hereof or any prospectus supplement filed pursuant to Rule 424(b) of the Act
that does not relate to the Shares), the Company shall furnish or cause to be
furnished to KCA promptly, but not later than five business days after the date
of such amendment or supplement or such filing, as applicable (except for the
“comfort” letters referred to in Section 7(b)(iv) below, which the
Company shall furnish or cause to be furnished to KCA not later than five
business days after the date of the delivery by KCA to the Company of a “circle
up” for the applicable comfort letter), the following, each dated the date of
filing with the Commission or the date of effectiveness of such amendment or
supplement, as applicable, in form and substance reasonably satisfactory to KCA
and its counsel:

(c)

	 	(i)	 	a certificate certifying as to the matters set
forth in Exhibit B hereto at the time of the filing or
effectiveness of such amendment or supplement, as applicable, as though
made at and as of such time (except that such statements shall be
deemed to relate to the Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus as amended and supplemented to such
time);

	 	(ii)	 	an opinion of Latham & Watkins LLP, counsel for
the Company, addressed to KCA, as to the matters set forth in
Exhibit C hereto, with only such departures from such form as
Morrison & Foerster LLP, counsel for KCA, shall have reasonably
approved; or, in lieu of such opinion, counsel last furnishing such
opinion to KCA shall furnish KCA with a letter substantially to the
effect that KCA may rely on such last opinion to the same extent as
though it were dated the date of such letter authorizing reliance
(except that statements in such last opinion shall be deemed to relate
to the Registration Statement, the Prospectus or any Permitted Free
Writing
Prospectus as amended and supplemented to the time of delivery of
such letters authorizing reliance);

 

20

 

	 	(iii)	 	an opinion of Holland & Hart LLP, Colorado
counsel to the Company, addressed to KCA and dated the date of this
Agreement, as to the matters set forth in Exhibit D hereto,
with only such departures from such form as Morrison & Foerster LLP,
counsel to KCA, shall have reasonably approved; or, in lieu of such
opinion, counsel last furnishing such opinion to KCA shall furnish KCA
with a letter substantially to the effect that KCA may rely on such
last opinion to the same extent as though it were dated the date of
such letter authorizing reliance (except that statements in such last
opinion shall be deemed to relate to the Registration Statement, the
Prospectus or any Permitted Free Writing Prospectus as amended and
supplemented to the time of delivery of such letters authorizing
reliance);

	 	(iv)	 	so long as KCA provides such independent
auditors with any representation letters they reasonably request in
accordance with customary practice, a “comfort” letter from each of
Ehrhadt Keefe Steiner & Hottman P.C. and PricewaterhouseCoopers LLP,
addressed to KCA, in a form reasonably satisfactory to KCA and its
counsel of the same tenor as the letter referred to in Section
6(a)(iv) hereof but modified to relate to the Registration
Statement, the Prospectus or any Permitted Free Writing Prospectus as
amended and supplemented to the date of such letter consistent with
customary practice for such letters;

	 	(v)	 	such other documents as KCA shall reasonably
request;

provided, however, that (A) the Company will not be required
to furnish any of such certificates, opinions, letters or other documents to
KCA in connection with the filing of a Current Report on Form 8-K unless (i)
such Current Report on Form 8- K is filed at any time during which either a
Transaction Notice is in effect or a prospectus relating to the Shares is
required to be delivered under the Act and (ii) KCA has requested such
certificates, opinions, letters or other documents based upon the event or
events reported in such Current Report on Form 8-K and (B) the obligations
of the Company under this Section 7(b) shall be deferred during any
Suspension Period under Section 1(f) and shall recommence upon the
termination of such Suspension Period.

	 	(d)	 	To disclose in its Quarterly Reports on Form 10-Q and in its
Annual Report on Form 10-K the number of the Shares sold through KCA under this
Agreement, the net proceeds to the Company from the sale of the Shares and the
compensation paid by the Company with respect to sales of the Shares pursuant
to this Agreement during the relevant period.

 

21

 

8. Conditions of KCA’s Obligation with Respect to Sale of the Shares. KCA’s
obligation to solicit purchases on an agency basis for the Shares pursuant to a Transaction Notice
that has been accepted by the Company shall be subject to the satisfaction of the following
conditions at the Time of Acceptance, the time of the commencement of trading on the Exchange on
the Purchase Date and at the time of closing on the Closing Date:

	 	(a)	 	The representations and warranties on the part of the Company
herein contained or contained in any certificate of an officer or officers of
the Company delivered pursuant to the provisions hereof shall be true and
correct in all material respects, except that representations and warranties
that address matters only as of a certain date need only be true and correct as
of such certain date.

	 	(b)	 	The Company shall have performed and observed its covenants and
other obligations hereunder in all material respects.

	 	(c)	 	From the date of delivery of the Transaction Notice until the
Closing Date, trading in the Common Stock on the Exchange shall not have been
suspended.

	 	(d)	 	Subsequent to the date of the applicable Transaction Notice, no
Material Adverse Effect shall have occurred which is not described in any
Permitted Free Writing Prospectus (excluding any amendment or supplement
thereto made after the date of such Transaction Notice) or the Prospectus
(excluding any amendment or supplement thereto made after the date of such
Transaction Notice) and the effect of which in the reasonable judgment of KCA
makes it impracticable or inadvisable to proceed with the offering, sale or
delivery of the Shares on the Closing Date on the terms and in the manner
contemplated by this Agreement, any Free Writing Prospectus and the Prospectus.

	 	(e)	 	The Shares to be issued pursuant to the Transaction Notice
shall have been approved for listing on the Exchange, subject only to notice of
issuance.

	 	(f)	 	No action shall have been taken and no statute, rule,
regulation or order shall have been enacted, adopted or issued by any federal,
state or foreign governmental or regulatory authority that would, as of the
Closing Date, prevent the issuance or sale of the Shares; and no injunction or
order of any federal, state or foreign court shall have been issued that would,
as of the Closing Date, prevent the issuance or sale of the Shares.

	 	(g)	 	The Company shall have furnished evidence reasonably
satisfactory to KCA and its counsel that the Registration Statement remains
effective.

	 	(h)	 	On or prior to the Closing Date, the Company shall have
furnished to KCA such further certificates and documents as KCA may reasonably
request.

 

22

 

9. Termination by KCA.

	 	(a)	 	This Agreement and the obligations of KCA hereunder may be
terminated, in the sole and absolute discretion of KCA, if at any time (i) any
of the conditions specified in Section 8 hereof shall not have been
fulfilled when and as required by this Agreement to be fulfilled; (ii) after
delivery of a fully executed Transaction Notice and prior to the applicable
Closing Date, any Material Adverse Effect that is not described in any
Permitted Free Writing Prospectus (excluding any amendment or supplement
thereto made after the date of such Transaction Notice) or the Prospectus
(excluding any amendment or supplement thereto made after such date); (iii)
there has since the date hereof occurred an outbreak or escalation of
hostilities, any change in the financial markets or any other national or
international calamity or crisis the effect of which, in the judgment of KCA,
is material and adverse and makes it impracticable or inadvisable to market or
deliver the Shares or enforce contracts for the sale of the Shares; (iv)
trading in any securities of the Company has been suspended by the Commission
or by the Exchange or trading generally on the Exchange has been suspended
(including automatic halt in trading pursuant to market-decline triggers other
than those in which solely program trading is temporarily halted), or
limitations on prices for trading (other than limitations on hours or numbers
of days of trading) have been fixed, or maximum ranges for prices for
securities have been required, by such Exchange or FINRA or by order of the
Commission or any other governmental authority; (v) any federal or state
statute, regulation, rule or order of any court or other governmental authority
has been enacted, published, decreed or otherwise promulgated that in the
reasonable opinion of KCA has or will have a Material Adverse Effect; (vi) any
action has been taken by any federal, state or local government or agency in
respect of its monetary or fiscal affairs which in the reasonable opinion of
KCA has a material and adverse effect on the securities markets in the United
States; or (vii) a general moratorium on commercial banking activities has been
declared by federal or New York authorities.

	 	(b)	 	If KCA elects to terminate this Agreement as provided in
Section 9(a), KCA shall promptly notify the Company of such termination
by telephone, promptly confirmed by facsimile or email stating in reasonable
detail the basis therefor. If a Transaction Notice is pending at the time of
such termination, such Transaction Notice shall be void.

	 	(c)	 	If the solicitation of purchases on an agency basis as
contemplated by this Agreement, is not carried out by KCA for any reason
permitted under this Agreement or if such sale is not carried out because the
Company shall be unable to comply in all material respects with any of the
terms of this Agreement, the Company shall not be under any obligation or
liability
under this Agreement (except to the extent provided in Sections 5(m)
and 11 hereof) and KCA shall be under no obligation or liability to
the Company under this Agreement (except to the extent provided in
Section 11 hereof).

 

23

 

	 	(d)	 	KCA may terminate this Agreement for any reason upon prior
notice to the Company; provided, however, that if such
termination shall occur prior to the Closing Date for any sale of the Shares,
such sale shall settle in accordance with the provisions of this Agreement.
Any such termination shall be without liability of any party to any other party
except that the provisions of Sections 5(m) and 11 hereof shall
remain in full force and effect notwithstanding such termination and KCA shall
be under no obligation or liability to the Company under this Agreement (except
to the extent provided in Section 11 hereof).

10. Termination by Company. The Company may terminate this Agreement in its sole
discretion from and after February 9, 2011 upon prior written notice to KCA; provided, however,
that if such termination shall occur prior to the Closing Date for any sale of the Shares, such
sale shall settle in accordance with the provisions of this Agreement. Any such termination shall
be without liability of any party to any other party except that the provisions of Sections
5(m) and 11 hereof shall remain in full force and effect notwithstanding such
termination and KCA shall be under no obligation or liability to the Company under this Agreement
(except to the extent provided in Section 11 hereof).

11. Indemnity and Contribution.

	 	(a)	 	The Company agrees to indemnify and hold harmless KCA, its
affiliates, directors and officers and each person, if any, who controls KCA
within the meaning of Section 15 of the Act or Section 20 of the Exchange Act,
from and against any and all losses, claims, damages and liabilities
(including, without limitation, reasonable, documented, out of pocket legal
fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), that
arise out of, or are based upon, (i) any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or caused
by any omission or alleged omission to state therein a material fact required
to be stated therein or necessary in order to make the statements therein, not
misleading, or (ii) or any untrue statement or alleged untrue statement of a
material fact contained in the Prospectus (or any amendment or supplement
thereto), any Permitted Free Writing Prospectus (or any amendment or supplement
thereto), or caused by any omission or alleged omission to state therein a
material fact necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading, in each case
except insofar as such losses, claims, damages or liabilities arise out of, or
are based upon, any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating
to KCA furnished to the Company in writing by KCA expressly for use therein, it
being understood and agreed that the only such information furnished by KCA
consists of the information described as such in Section 11(b)
hereof.

 

24

 

	 	(b)	 	KCA agrees to indemnify and hold harmless the Company, its
directors, its officers who signed the Registration Statement and each person,
if any, who controls the Company within the meaning of Section 15 of the Act or
Section 20 of the Exchange Act to the same extent as the indemnity set forth in
paragraph (a) above, but only with respect to any losses, claims, damages or
liabilities that arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to KCA furnished to the Company in
writing by KCA expressly for use in the Registration Statement, the Basic
Prospectus, the Prospectus (or any amendment or supplement thereto), any
Permitted Free Writing Prospectus, it being understood and agreed upon that the
only such information furnished by KCA consists of the information in the
Prospectus as specified in Exhibit H hereto.

	 	(c)	 	If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any person in respect of which indemnification may be sought pursuant to either
Sections 11(a) or 11(b) hereof, such person (the
“Indemnified Person”) shall promptly notify the person against whom
such indemnification may be sought (the “Indemnifying Person”)
in writing; provided that the failure to notify the Indemnifying Person
shall not relieve it from any liability that it may have under this Section
11 except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure. If any such
proceeding shall be brought or asserted against an Indemnified Person and it
shall have notified the Indemnifying Person thereof, the Indemnifying Person
shall retain counsel reasonably satisfactory to the Indemnified Person (who
shall not, without the consent of the Indemnified Person, not to be
unreasonably withheld, be counsel to the Indemnifying Person) to represent the
Indemnified Person in such proceeding and shall pay the fees and expenses of
such counsel related to such proceeding, as incurred. In any such proceeding,
any Indemnified Person shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified
Person unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed to the contrary or (ii) the Indemnifying Person has failed
within a reasonable time after notice from the Indemnified Person to retain
counsel reasonably satisfactory to the Indemnified Person, in either which case
the Indemnifying Person will pay the reasonable, documented, out of pocket fees
and expenses of such outside counsel. It is understood and agreed that the

 

25

 

Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel)
for all Indemnified Persons, and that all such reasonable, documented, out
of pocket fees and expenses shall be paid or reimbursed as they are
incurred. Any such separate firm for KCA, its affiliates, directors and
officers and any control persons of KCA shall be designated in writing by
KCA and any such separate firm for the Company, its directors, its officers
who signed the Registration Statement and any control persons of the Company
shall be designated in writing by the Company. The Indemnifying Person
shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, the Indemnifying Person agrees to indemnify each
Indemnified Person from and against any loss or liability by reason of such
settlement or judgment subject to the other terms and conditions of this
Section 11. Notwithstanding the foregoing sentence, if at any time
an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for fees and expenses of counsel as
contemplated by this paragraph, the Indemnifying Person shall be liable for
any settlement of any proceeding effected without its written consent if (i)
such settlement is entered into more than 30 days after receipt by the
Indemnifying Person of such request, (ii) the Indemnifying Person shall not
have reimbursed the Indemnified Person in accordance with such request prior
to the date of such settlement and (iii) such reimbursement is not subject
to a bona fide dispute between the parties. Notwithstanding the immediately
preceding sentence, an Indemnifying Person may, without the written consent
of the Indemnified Person but upon three days’ prior written notice to such
Indemnified Person, effect any settlement of any pending or threatened
proceeding in respect of which such Indemnified Person is a party, if such
settlement (x) includes an unconditional release of such Indemnified Person
from all liability on claims that are the subject matter of such proceeding
and (y) does not include any statement as to or any admission of fault,
culpability or a failure to act by or on behalf of any Indemnified Person.

	 	(d)	 	If the indemnification provided for in Sections 11(a)
and 11(b) hereof is unavailable to an Indemnified Person or
insufficient in respect of any losses, claims, damages or liabilities referred
to therein, then each Indemnifying Person under such paragraph, in lieu of
indemnifying such Indemnified Person thereunder, shall contribute to the amount
paid or payable by such Indemnified Person as a result of such losses, claims,
damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company, on the one hand, and KCA, on the
other, from the offering of the Shares or (ii) if the allocation provided by
clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
but also the relative

 

26

 

 fault of the Company, on the one hand, and KCA, on the other, in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations. The relative benefits received by the Company, on
the one hand, and KCA, on the other, shall be deemed to be in the same
respective proportions as the net proceeds (before deducting expenses)
received by the Company from the sale of the Shares and the total discounts
and commissions received by KCA in connection therewith, in each case as set
forth in the table on the cover of the Prospectus, bear to the aggregate
offering price of the Shares. The relative fault of the Company, on the one
hand, and KCA, on the other, shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or by KCA, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

	 	(e)	 	The Company and KCA agree that it would not be just and
equitable if contribution pursuant to this Section 11 were determined
by pro rata allocation or by any other method of allocation that does not take
account of the equitable considerations referred to in Section 11(d)
hereof. The amount paid or payable by an Indemnified Person as a result of the
losses, claims, damages and liabilities referred to in Section 11(d)
hereof shall be deemed to include, subject to the limitations set forth above,
any reasonable, documented, out of pocket legal or other expenses incurred by
such Indemnified Person in connection with any such action or claim.
Notwithstanding the provisions of this Section 11, in no event shall
KCA be required to contribute any amount in excess of the amount by which the
total discounts and commissions received by KCA with respect to the offering of
the Shares exceeds the amount of any damages that KCA has otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

	 	(f)	 	The remedies provided for in this Section 11 are not
exclusive and shall not limit any rights or remedies which may otherwise be
available to any Indemnified Person at law or in equity.

12. Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed or transmitted and confirmed by any standard form
of communication, and if to KCA, shall be sufficient in all respects if delivered to Knight Capital
Americas, L.P., 320 Park Avenue, New York, New York 10012, with separate copies to the attention of
William Kelly, Managing Director, wkelly@knight.com, and Joshua Jedwab, Managing Director — Legal &
Compliance Dept, jjedwab@knight.com, Facsimile No. 914.251.5812, and if to the Company, shall be
sufficient in all respects if delivered or sent to the Company at the offices of the Company at:

Rentech, Inc.

10877 Wilshire Boulevard, Suite 600

Los Angeles, CA 90024

Fax: 310.571.9799

Attention: Dan J. Cohrs, Executive Vice President and Chief Financial Officer

 

27

 

with a copy to (which shall not constitute notice),

Latham & Watkins LLP

140 Scott Drive

Menlo Park, CA 94025

Fax: 650.463.2600

Attention: Anthony J. Richmond

Notwithstanding the foregoing, Transaction Notices shall be delivered by facsimile or “.pdf” email
format as follows:

To the Company:

Facsimile: 310.571.9799

email: dcohrs@rentk.com

Attn: Dan J. Cohrs, Executive Vice President and Chief Financial Officer

Tel. Confirm: 310.571.9831

To KCA of the Acceptance of Transaction Notice:

Facsimile: 201.748.5554

email: kmaxdesk@knight.com

Attn: William Kelly

Tel. Confirm: 212.209.1494

13. No Fiduciary Relationship. The Company acknowledges and agrees that KCA is acting
solely in the capacity of an arm’s length contractual counterparty to the Company with respect to
the offering of Shares contemplated hereby (including in connection with determining the terms of
the offering) and not as a financial advisor or a fiduciary to the Company or any other person.
Additionally, KCA is not advising the Company or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. The Company shall consult with its own
advisors concerning such matters and shall be responsible for making its own independent
investigation and appraisal of the transactions contemplated hereby, and KCA shall have no
responsibility or liability to the Company with respect thereto. Any review by KCA of the Company,
the transactions contemplated hereby or other matters relating to such transactions will be
performed solely for the benefit of KCA and shall not be on behalf of the Company.

14. Adjustments for Stock Splits. The parties acknowledge and agree that all share
related numbers contained in this Agreement and any Transaction Notice shall be adjusted to take
into account any stock split effected with respect to the Shares after the date hereof.

 

28

 

15. KCA as Market Maker. KCA and one or more of its affiliates may make markets in
the Common Stock or other securities of the Company, in connection with which they may buy and
sell, as agent or principal, for long or short account, shares of Common Stock or other securities
of the Company, at the same time that KCA is acting as agent pursuant to this Agreement; provided
that KCA acknowledges and agrees that any such transactions are not being, and shall not be deemed
to have been, undertaken at the request or direction of, or for the account of, the Company, and
that the Company has and shall have no control over any decision by KCA and its affiliates to enter
into any such transactions.

16. Governing Law; Construction. This Agreement and any claim, counterclaim or
dispute of any kind or nature whatsoever arising out of or in any way relating to this Agreement
(“Claim”), directly or indirectly, shall be governed by, and construed in accordance with,
the laws of the State of New York, other than rules governing choice of applicable law. The
section headings in this Agreement have been inserted as a matter of convenience of reference and
are not a part of this Agreement.

17. Submission to Jurisdiction. Except as set forth below, no Claim may be commenced,
prosecuted or continued in any court other than the courts of the State of New York located in the
City and County of New York or in the United States District Court for the Southern District of New
York, which courts shall have exclusive jurisdiction over the adjudication of such matters, and the
Company consents to the jurisdiction of such courts and personal service with respect thereto.
Each of KCA and the Company, on its behalf and, to the extent permitted by applicable law, on
behalf of its affiliates, waives all right to trial by jury in any action, proceeding or
counterclaim, whether based upon contract, tort or otherwise, in any way arising out of or relating
to this Agreement. The Company agrees that a final and non-appealable judgment in any such action,
proceeding or counterclaim brought in any such court shall be conclusive and binding upon the
Company and may be enforced in any other courts in the jurisdiction of which the Company is or may
be subject, by suit upon such judgment.

18. Parties in Interest. This Agreement herein set forth has been and is made solely
for the benefit of KCA and the Company and to the extent provided in Section 11 hereof the
controlling persons, directors and officers referred to in such section, and their respective
successors, assigns, heirs, personal representatives and executors and administrators. No other
person, partnership, association or corporation (including a purchaser, as such purchaser, from
KCA) shall acquire or have any right under or by virtue of this Agreement.

19. Successors and Assigns. This Agreement shall be binding upon KCA and the Company
and their successors and assigns and any successor or assign of any substantial portion of the
Company’s and KCA’s respective businesses and/or assets.

20. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company and KCA contained in this Agreement or made by or on
behalf of the Company or KCA pursuant to this Agreement or any certificate delivered pursuant
hereto shall survive the delivery of and payment for the Shares and shall remain in full force and
effect, regardless of any termination of this Agreement or any investigation made by or on behalf
of the Company or KCA.

 

29

 

21. Certain Defined Terms. For purposes of this Agreement, except where otherwise
expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under Act.

22. Amendments or Waivers. No amendment or waiver of any provision of this Agreement,
nor any consent or approval to any departure therefrom, shall in any event be effective unless the
same shall be in writing and signed by the parties hereto.

23. Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same instrument.

[The remainder of this page is intentionally left blank.]

 

30

 

If the foregoing correctly sets forth the understanding among the Company and KCA, please so
indicate in the space provided below for the purpose, whereupon this letter and your acceptance
shall constitute a binding agreement between the Company and KCA.

	 	 	 	 	 
	 	Very truly yours,

RENTECH, INC.

 	 
	 	By:  	/s/ Dan J. Cohrs
 	 
	 	 	Name:  	 Dan J. Cohrs	 
	 	 	Title:  	Executive Vice President and Chief   

Financial Officer 	 

Accepted and agreed to as of the

date first above written:

KNIGHT CAPITAL AMERICAS, L.P.

	 	 	 	 	 
	By:

	 	/s/ William Kelly
 

Name: William Kelly 

Title:   Managing Director, Head of Equity Capital Markets
	 	 

 

 

 

Schedule I

Subsidiaries of the Company

Rentech Development Corporation, a Colorado corporation

Rentech Energy Midwest Corporation, a Delaware corporation

Rentech Energy Technology Center, LLC, a Colorado limited liability company

formerly named Sand Creek Energy, LLC, a Colorado limited liability company

Rentech Services Corporation, a Colorado corporation

GCSEC Holdings, LLC, a Delaware limited liability company

formerly named RSFC, LLC, a Delaware limited liability company

Gulf Coast Synthetic Energy Center, LLC, a Delaware limited liability company

formerly named RSFC Land Management, a Delaware limited liability company

Rentech SilvaGas LLC, a Delaware limited liability company

SilvaGas Corporation, a Delaware corporation

RREC Holdings, LLC, a Delaware limited liability company

Rialto Renewable Energy Center, LLC, a Delaware limited liability company

Rialto Power, LLC, a Delaware limited liability company

RTK Acquisition Sub, Inc, a Hawaii corporation

 

 

 

Exhibit A

[KCA Letterhead]

                    , 201[__]

Rentech, Inc.

10877 Wilshire Boulevard, Suite 600

Los Angeles, CA 90024

Attention: Dan J. Cohrs, Executive Vice President and Chief Financial Officer

VIA FACSIMILE

TRANSACTION NOTICE

Dear Dan:

This Notice sets forth the terms of the agreement of Knight Capital Americas, L.P. (“KCA”) with
Rentech, Inc., a Colorado corporation (the “Company”), relating the issuance of shares of the
Company’s common stock, par value $0.01 per share pursuant to the Amended and Restated Distribution
Agreement between the Company and KCA, dated February [___], 2011 (the “Agreement”). Unless
otherwise defined below, capitalized terms defined in the Agreement shall have the same meanings
when used herein.

By countersigning or otherwise indicating in writing the Company’s acceptance of this Notice (an
“Acceptance”), the Company shall have agreed with KCA to engage in the following agency
transaction:

	 	 	 	 	 
	Number of Shares to be Sold:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Minimum Price at which Shares may be Sold: (“Floor Price”)
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Average Daily Trading Volume (“ADTV”)1 for the 30
Exchange Business Days preceding the date of delivery of is
Notice:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Date(s) on which Shares may be Sold: (“Purchase
Date”)2
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Manner in which Shares are to be Sold:

	 	At-the-market	 	 

The Transaction set forth in this Notice will not be binding on the Company or KCA unless and until
the Company delivers its Acceptance; provided, however, that neither the Company nor KCA will be
bound by the terms of this Notice unless the Company delivers its Acceptance by                      am/pm (New
York time) on [the date hereof/                    , 201_].

The Transaction, if it becomes binding on the parties, shall be subject to all of the
representations, warranties, covenants and other terms and conditions of the Agreement, except to
the extent amended or modified hereby, all of which are expressly incorporated herein by reference.
Each of the representations and warranties set forth in the Agreement shall be deemed to have been
made at and as of the date of the Company’s acceptance and on any Purchase Date and any Closing
Date, except for representations and warranties that address matters only as of a certain date.

 

	 	 	 
	1	 	Determined in accordance with Regulation M.
	 
	2	 	See Section 3(b) of the Agreement for determination of
Purchase Date.

 

A - 1

 

Exhibit A

If the foregoing conforms to your understanding of our agreement, please so indicate by providing
your Acceptance in the manner contemplated by the Agreement.

	 	 	 	 	 
	 	Very truly yours,

KNIGHT CAPITAL AMERICAS, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

ACCEPTED as of the date

first above written

RENTECH, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
Name: Dan J. Cohrs

Title:   Executive Vice President and Chief Financial Officer	 	 

[Note: The Company’s acceptance may also be evidenced by a separate written acceptance
referencing this Notice and delivered in accordance with the Agreement]

 

A - 2

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